In recent years, there has been a seismic shift in the way businesses operate, driven by a growing recognition of the interconnectedness between corporate activities and their impact on the environment, society, and governance structures. This paradigm shift has given rise to the concept of Environmental, Social, and Governance (ESG) reports, formerly known as Corporate Social Responsibility (CSR) reports that have been growing slowly over the past decade, a framework that evaluates a company’s performance and practices across these three crucial dimensions.


About ESG Reporting

Disclosure of comprehensive, accurate, and transparent information by companies is crucial for helping build confidence and attracts the interest of investors. Besides financial data, information on environmental, social, and governance (ESG) operations is considered vital, as it influences the decisions of investors. Businesses must confront increasingly complex risks and challenges in economic, social, and environmental aspects. The importance of ESG reporting cannot be overstated in today’s business landscape. Beyond mere compliance or public relations, ESG reporting serves as a strategic tool for businesses to manage risks, seize opportunities, and enhance their reputation in an increasingly discerning market. Investors are increasingly factoring ESG criteria into their investment decisions, recognizing the correlation between sustainable practices and long-term financial performance. Additionally, ESG data helps stakeholders understand the business operations from a more comprehensive perspective, thereby increasing confidence in the long-term viability of conducting business. Reasons that business should evaluate its ESG scoring and publish such report may be as follows.

  1. Company Reputation: A good ESG report can help enhance the reputation of the company and create a positive social media buzz. Consumers want to know the backstory behind the brands, products, or services they increasingly purchase. It’s not just about the company image, but also about the social impact business has. A good report provides clear and detailed information about what the company is doing in this regard.
  2. Investor Interest: Investors are becoming increasingly concerned about ESG Research shows that investors seek information about issues each company may face and how company plan to address them. If company don’t have up-to-date disclosures or at least clear plans for future action, attracting long-term investors could be challenging. Moreover, the media increasingly emphasizes ESG factors in corporate financial reports, whether these factors affect stock prices. Leading this trend by preparing updated reports for investors is essential.
  3. Compliance: It’s crucial to for companies to demonstrate that they are complying with current and new laws and regulations. Companies must have clear audit and balance systems for ESG issues. A good report shows how a company complies with laws and explains the steps the company is taking to prevent future problems.
  4. Reputation: To prevent falling short of ethical standards or risking public backlash, having an ESG report is essential. Without one, it can be difficult for a company to explain its stance on various hot topics and how the company plan to change in the future. Leading this trend by preparing well-documented reports is necessary.
  5. Stakeholders: Regardless of company size, ESG reporting impacts the people working there, the customers that company serve, and the stakeholders in the surrounding community. External stakeholders want to know how the company is managing these issues. An ESG report provides the opportunity to disclose such information: without an ESG report, it can be difficult for external stakeholders to understand how company actions affect society, whether positively or negatively.
  6. Environmental Protection: Providing details about a company’s environmental efforts can present the company in a positive light. The report can identify the steps are taken to protect the environment and explain why these are important for future generations, not just for the present. Without an ESG report, it can be challenging to explain how well a company is protecting natural resources and whether these efforts affect company profit margins.
  7. Regulatory Compliance: In addition to the current business operations, a good report also includes information about the processes a company is currently implementing or planning to implement to comply with new regulations. It ensures that company can comply with newly announced regulations and that business won’t be hindered. Without an ESG report, it can be challenging to explain how well-prepared company is for future regulatory changes and whether these efforts affect company profits.
  8. Transparency: A good ESG report provides clear information about what the company is currently doing. It’s also a useful tool for demonstrating where company is doing things right and where there’s room for improvement in the future. Without an ESG report, it can be difficult to explain what actions are taken to address various issues and how well the company has planned for future improvements.
  9. Legal: Providing clear information about company’s ESG efforts can be an effective way to prevent future lawsuits. If a company is transparent, individuals or groups may argue that they weren’t aware of company’s operating procedures, making it less likely that they’ll sue.
  10. Risk or Materiality: Every company faces risks related to ESG factors. The key is being able to explain what these are, as well as any steps a company is taking or planning to take to mitigate them. Without an ESG report, it can be difficult for external parties (such as investors) to understand what types of risks business is facing and whether these risks are of interest to them.
  11. Opportunities: Reporting can reveal unexpected opportunities for companies to grow. A good report can help build a good reputation with customers, employees, and the public, making it easier to expand business operations without too many hurdles. Without an ESG report, it can be difficult to explain why some people should invest in company.
  12. New Business Collaboration: An ESG report can help find new business partners interested in working with companies that are making positive strides on issues they care about. Without an ESG report, it can be difficult to explain why others should do business with company and for companies to understand what types of opportunities there are for collaboration with company.
  13. Employee Satisfaction: Creating an ESG report not only demonstrates that the company is making positive strides forward, but it’s also a reason why it’s important to employees. Without an ESG report, it can be difficult for potential employees to understand the meaning of working at such a company and whether they can take pride in their work.
  14. Marketing: Every company is looking for new ways to engage with communities. An ESG report can be a valuable marketing tool because it shows customers that company is making positive developments. Without an ESG report, it can be challenging for the target audience to understand what they’ll get from doing business with company in positive social projects.


ESG reporting encompasses a comprehensive assessment of a company’s environmental stewardship, its social impact on stakeholders and communities, and the effectiveness of its governance structures in promoting accountability and transparency. These three pillars form the cornerstone of sustainable business practices, guiding organizations towards responsible decision-making that considers the long-term interests of all stakeholders. Around the world, there is a growing momentum towards standardized ESG reporting frameworks to facilitate comparability and transparency. Leading initiatives such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB) provide guidelines and metrics for companies to disclose their ESG performance in a consistent and credible manner. These frameworks help businesses navigate the complex landscape of sustainability reporting, enabling them to communicate their ESG efforts effectively to investors, customers, and other stakeholders.


Current Situation of ESG Reporting in Thailand

In case of Thailand, ESG reporting holds particular significance amidst the country’s socio-economic development and environmental challenges. As one of Southeast Asia’s leading economies, Thailand is increasingly recognizing the importance of sustainable development and responsible business practices. With growing awareness among investors, regulators, and civil society about the need for ESG integration, Thai businesses are facing mounting pressure to embrace transparency, accountability, and sustainability in their operations. From such reason, in recent years, businesses in Thailand have increasingly recognized the importance of Environmental, Social, and Governance (ESG) reporting to attract investors and foster sustainable growth. As global investors place greater emphasis on ethical and sustainable business practices, Thai companies are adapting their reporting mechanisms to align with these expectations. The Stock Exchange of Thailand (SET) has developed a “Sustainability Reporting Guide for Registered Companies” and “Guidelines on Environmental, Social, and Governance (ESG) Metrics by Industry Group” to provide guidance on disclosing sustainability information to registered companies in line with the One Report and international standards such as the Global Reporting Initiative (GRI) Standards and Sustainable Development Goals (SDGs). These documents aim to meet the growing demand for ESG information from investors and serve as a tool for business decision-making to foster continuous development. Components of the Sustainability Reporting Guide for Thai Companies are as followed,

  • Reporting Guidelines for Sustainability
  • Components of Sustainability Reporting
  • Basic ESG Metrics and Descriptions, along with their correlation to the international reporting framework, GRI Standards, and Sustainable Development Goals (SDGs)
  • Examples of Annual Performance Summary Tables presenting data that can be compared each year, demonstrating clear continuity of past performance.

Sustainability Reporting Guide can be downloaded from SET’s website at


Stock Exchange of Thailand (SET) has developed a Guidance Document for ESG Metrics by Industry Group as part of the Sustainability Reporting Guidelines for Registered Companies. The document is divided into eight volumes corresponding to the eight industry groups of the Stock Exchange of Thailand (SET) and the Market for Alternative Investment (MAI). Each volume comprises: Details of ESG Metrics at the Industry Group level, segmented by Business Sector, including the significance of metrics, reporting practices, and their correlation with international reporting frameworks such as GRI Standards and Sustainable Development Goals (SDGs). The guideline also has examples of annual performance summary tables to present data that can be compared year-on-year, demonstrating clear continuity of past efforts.


Accelerating ESG Investment

Since this year is the first year for Thailand government to give personal income tax credit to those buying ESG mutual fund, while companies in Thailand begin disclosing their ESG reports and scores. For example, Charoen Pokphand Group (CP Group), one of Thailand’s largest conglomerates, has embraced ESG reporting as a core component of its corporate strategy. By integrating ESG metrics into its annual reports and corporate communications, CP Group provides stakeholders with insights into its environmental initiatives, community engagement programs, and corporate governance practices. This proactive approach has not only enhanced CP Group’s reputation as a socially responsible entity but has also attracted socially conscious investors seeking sustainable investment opportunities in Thailand. PTT Public Company Limited, Thailand’s leading energy company, has demonstrated its commitment to ESG reporting through concrete actions. By publishing annual sustainability reports, PTT provides detailed information on its environmental conservation efforts, social impact initiatives, and corporate governance practices. Moreover, PTT actively engages with stakeholders through dialogues and consultations to address their concerns and incorporate feedback into its sustainability strategy. This transparent approach has earned PTT recognition as a responsible corporate citizen and bolstered investor confidence in its long-term sustainability. More companies in Thailand are expected to follow suit.

As Thai businesses navigate the evolving landscape of ESG reporting, proactive measures are essential to meet investor expectations and secure sustainable growth. Companies must invest in robust reporting frameworks, engage stakeholders effectively, and integrate ESG considerations into their core business strategies. By doing so, Thai businesses can enhance their competitiveness, attract responsible investors, and contribute to the country’s economic and social development in alignment with global sustainability goals.