Featured Product

    BOT to Lead Transition of Financial Sector Toward Sustainability

    August 29, 2022

    The Bank of Thailand (BOT) published a directional paper on the transition to environmental sustainability within the financial landscape in the country. BOT also informed that the Thai Bankers' Association (TBA) announced its environmental, social, and governance (ESG) Declaration to set the banking industry's clear common direction in addressing the ESG agenda with proactive execution.

    Directional Paper on transitioning to environmental sustainability

    BOT had, in February 2022, issued a consultation paper on repositioning the financial sector of Thailand for a sustainable digital economy. In continuation to that development, BOT has now issued a directional paper on transitioning toward environmental sustainability. The directional plan in the paper considers both the timing and speed of such a transition, also striking a balance between transitioning and the potential impact. Below are the key building blocks of this plan:

    • Adjust the business operations of financial institutions to encourage the offering of products and services that meet needs of the business sector by issuing policy guidelines in the third quarter of 2022 for financial institutions’ business operations that take into account environmental factors
    • Establish a taxonomy that defines and classifies economic activities based on their environmental impact, in collaboration with both public and private sectors as well as financial institutions; the initial stage would entail classifying activities with high greenhouse gas emission rates to be completed by January 2023
    • Develop platforms for environment-related data and setting data disclosure standards for financial institutions, in collaboration with the government agencies, private sector, and financial institutions to systematically develop such platforms beginning in the fourth quarter of 2022
    • Support the creation of appropriate incentives to encourage financial institutions, the business sector, and consumers to recognize the urgency of making environment-related transitions, and to alleviate any cost burden that they may incur
    • Enhance the knowledge management and skills of financial sector personnel through capacity building, by jointly developing courses with both domestic and international experts with the aim to create awareness and understanding, and improve their capability in assessing environment-related opportunities and risks as well as in providing advisory support to businesses

    ESG Declaration of Bankers' Association

    In pursuing its shared vision of sustainable development goals with the introduction of ESG Declaration, the TBA outlined action priorities in addressing key issues of emerging ESG risks and opportunities in relation to climate change, diversity and human rights, financial inclusion, and reduced inequalities, while fully supporting smooth transition of Thailand toward achieving the United Nations (UN) Sustainable Development Goals and the commitments to the Paris Agreement. Under the ESG Declaration, all TBA members agreed on six shared action priorities:

    • Ensure good corporate governance and effective oversight at the board level, with clear accountability and responsibility at the management level regarding the ESG agenda
    • Integrate ESG into business strategies and define frameworks for sustainable finance to support Thailand in making harmonious transition toward net zero society, as committed
    • Incorporate ESG into risk management processes
    • Utilize digital technology to increase financial accessibility and help customers achieve net zero emissions and sustainable growth
    • Communicate and collaborate with all stakeholders in raising public awareness on ESG issues
    • Develop monitoring and reporting systems in line with the regulatory frameworks and global sustainability disclosure standards


    Related Links



    Keywords: Asia Pacific, Thailand, Banking, ESG, Climate Change Risk, Sustainable Finance, Governance, Disclosures, Thai Bankers Association, BOT

    Featured Experts
    Related Articles

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514