Detail Content
National level
ASEAN CG Scorecard
The ASEAN Corporate Governance
Scorecard (ACGS) is an initiative by the ASEAN Capital Market Forum (ACMF)
aimed at enhancing the corporate governance standards and practices of publicly
listed companies (PLCs) in the ASEAN region. This initiative supports the
liberalization of the ASEAN Economic Community and enhances the international
visibility of well-governed ASEAN companies.
The ACGS assessment is conducted
every other year on May 31. The target group comprises the top 100 publicly
listed companies with the largest market capitalization from each country,
including Indonesia, Malaysia, the Philippines, Thailand, Singapore, and
Vietnam.
Assessment Criteria
The
assessment criteria are based on the G20/OECD Principles of Corporate
Governance
(2023),
World Bank, International Corporate Governance Network (ICGN), Asian Corporate
Governance Association, and the Codes of Corporate Governance of some
countries, e.g., Australia and the UK. The ACGS assessors are Domestic Ranking
Body (DRB) for each country, which in Thailand is the Institute of Directors
(IOD). The assessment relies on publicly available information provided by
companies in English such as Form 56-1 One Report, notices of meetings,
shareholder meetings minutes, annual reports, and information disclosed by
companies on the stock exchange's website or their own website. The assessors
will scrutinize this information, evaluating both policy and its implementation
in practice.
The
new revision of ACGS was released in 2023, incorporating additional elements
related to environmental, social, and governance (ESG) responsibility, and will
become effective in 2024. The ACGS assessment criteria include:
| ACGS 2021 | >>>
| ACGS 2023 |
1. Rights of Shareholders |
| 1. Rights and Equitable Treatment of Shareholders |
2. Equitable Treatment of Shareholders |
3. Role of Stakeholders | | 2. Sustainability and Resilience |
4. Disclosure and Transparency | | 3. Disclosure and Transparency |
5. Responsibilities of the Board | | 4. Responsibilities of the Board
|
Dow Jones Sustainability Indices (“DJSI”) are a family of indices tracking the stock performance of the world's leading companies in terms of economic, environmental and social criteria. The indices serve as benchmarks for institutional investors who integrate sustainability considerations into their portfolios. The indices comprise 24 major industries, covering 60 sub-industries and attract a combined investment fund over 5 billion USD. The indices will be annually reviewed and announced in September.
Selection processes for the members of DJSI World and DJSI Emerging Markets.
DJSI World
STEP 1: Selection of world’s large companies in terms of free float adjusted market capitalization in previous year
STEP 2: Selection of top 10% of each industry in terms of sustainability performance. Scoring will be based on an assessment on company’s sustainability performance or publicly disclosure information.
STEP 3: Selected companies must represent the industry or the selected companies must have a combined free float adjusted market capitalization not less than 15% of such industry.
DJSI Emerging Markets
STEP 1: Selection of large companies from emerging markets in terms of free float adjusted market capitalization in the previous year
STEP 2: Selection of top 10% in terms of sustainability performance of each industry. Scoring will be based on an assessment on company’s sustainability performance or publicly disclosure information.
Assessment Results
Corruption Perception Index (CPI) is conducted by Transparency International (TI), an independent organization established with an aim to fight against corruption, having 120 countries network worldwide. Transparency International in collaboration with Gottingen University, Germany has conducted CPI across countries annually since 1995.
Assessment criteria
CPI survey is conducted on the sampling group’s perception toward corruption issue in their country. Information contributed to Corruption Perception Index is from the survey of sources such as research polls, well-accepted international independent entities, e.g., Economist Intelligence Unit, Gallup Poll, International Institute for Management Development, Adviser on Business and Political Risk, the World Bank, the World Economic Forum, the United Nations’ units. CPI indicates the perceived level of public sector corruption on a scale of 0 (highly corrupt) to 100 (very clean).
CG Watch is an assessment on corporate governance of Asian capital markets conducted by the Asian Corporate Governance Association and CLSA Asia-Pacific Markets. The assessment covers the following areas:
1. CG rules and practices
2. Enforcement
3. Political & Regulatory environment
4. IGAAP (International Generally Accepted Accounting Principles)
5. CG Culture
Assessment Results
The Report on the Observance of Standards and Codes: Corporate Governance Country Assessment (CG-ROSC) is an assessment of CG policy framework and compliance with international standards of capital markets by the World Bank.
As participation in this program is voluntary, frequency of assessment may vary. The participating countries can also choose whether or not to disclose the assessment results. CG-ROSC participants are not required to pay any expenses but to facilitate the assessment process by providing information and coordinating with related entities in their country for the World Bank’s officers to be able to collect information for the assessment. Thailand first joined the program in 2005.
Assessment criteria
The World Bank has assessed corporate governance policy framework of the Thai capital market based on the Corporate Governance Principles of the Organisation for Economic Co-operation and Development (OECD), which cover six areas as follows:
1. Enforcement and CG framework
2. Rights of shareholders
3. Equitable treatment of shareholders
4. Roles of stakeholders in CG
5. Disclosure and transparency
6. Responsibilities of the Board
Doing Business Report is the research ranking on the ease of doing business across countries conducted by the World Bank. The research covers areas such as procedures, time, facilities, costs and public regulations affecting the life of business. Research also focuses on small-and medium-sized enterprises (SMEs) with 10 areas of indicators, covering the life of business from starting a company to resolving insolvency.
Assessment criteria
1. Measurement on procedures in doing business (Easier)
2. Measurement on the time in starting a business (Faster)
3. Measurement on the cost in doing a business (Cheaper)
4. Measurement on the friendliness of regulations (Smarter regulations)
Assessment Results
On September 16, 2014, Channel NewsAsia announced its Sustainability Ranking of leading companies in Asia for the first time, or “Channel NewsAsia Sustainability Ranking,” which assessed listed companies from 10 Asian countries, i.e., China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand.
Four Thai listed companies among the Top 100 are:
- PTT Global Chemical Plc.
- Thai Oil Plc.
- IRPC Plc.
- The Siam Cement Plc.