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Listed company level
The Corporate Governance Report of Thai Listed Companies is conducted by the Thai Institute of Directors (IOD) with an objective to present assessment results of listed companies’ corporate governance practices and to promote corporate governance development of listed companies.
Assessment criteria
The CGR assessment criteria cover four categories as follows:
1.Rights and Equitable Treatment of Shareholders
2.Role of Stakeholders and Corporate Sustainability
3.Disclosure and Transparency
4.Board Responsibilities
The assessor uses publicly disclosed information such as annual report, annual registration statement (Form 56-1), notice of shareholder’s meeting, company’s website, information disclosed on the websites of the Stock Exchange of Thailand and the SEC, as well as other publicly disclosed information.
The Annual General Shareholders’ Meeting (AGM) Assessment Project is conducted by the Thai Investors Association with an objective to raise listed companies’ awareness of the importance of maintaining the AGM quality in line with international standards, and to build a positive image of the Thai capital market in terms of shareholders’ engagement, shareholders’ rights and good corporate governance. The project also aims to promote shareholders’ participation in the AGM, and to enhance cooperation and good relationship among entities in the capital market.
The assessment focuses on the whole process of AGM, starting from the dissemination of the meeting notice attached with details of the arrangement before, during and after the meeting. The assessment is divided into two parts as follows:
1. Listed company completes the AGM-Self Assessment Form and submits it to the Thai Investors Association (Assessment guidelines and examples are available in the AGM Checklist).
2. The Thai Investors Association assigns AGM volunteer observers to participate and assess the AGM quality of listed companies.
The SEC continues to develop business sustainability among listed companies and intermediaries with a focus on anti-corruption by supporting them to join Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC) and to disclose their corporate governance progress on www.sec.or.th/cgthailand
Endorsed by the government and the Office of National Anti-corruption Commission, the initiative was launched by the eight founding organizations, i.e., the Thai Institute of Directors(IOD), the Thai Chamber of Commerce, the International Chamber of Commerce, the Thai Listed Companies Association, the Thai Banks Association, the Federation of Thai Listed Companies, the Federation of Thai Industries and the Tourist Council of Thailand. The objective of the program is to promote anti-corruption practices. The CAC Committee has appointed the IOD as secretary and promoter.
SET ESG Ratings
SET ESG Ratings assess listed companies that voluntarily participate in the sustainability assessment conducted by the Stock Exchange of Thailand (SET). It was implemented for the first time in 2023 and covers questions in the dimensions of Environmental, Social and Corporate Governance & Economic (ESG). The questionnaire includes both general indicators for all industry groups, and industry-specific indicators, which reflect the context and material issues of each industry group (i.e. the 8 industry groups classified by SET).
Listed companies that are selected for inclusion in SET ESG Ratings must receive a score of at least 50% in each dimension and meet the qualification criteria such as receiving a score of 3 stars and above from CGR and not being marked with the “C” sign.
Listed companies that have been selected for inclusion in SET ESG Ratings will have been announced their ESG ratings in ratings scale as follows: AAA, AA, A and BBB, respectively (from highest to lowest score). The results can be followed on the Stock Exchange's website.
SET plans to enhance the SET ESG Ratings assessment to meet international standards by collaborating with FTSE Russell to evaluate the ESG data of listed companies. From 2026 onwards, the SET will publicly announce FTSE Russell ESG Scores and discontinue the SET ESG Ratings.
AssessmentResults
FTSE Russell ESG Ratings
FTSE Russell ESG Ratings assess environmental, social, and governance performance based on publicly disclosed data. The assessment is conducted by FTSE Russell, the leading global rater and a member of the London Stock Exchange Group. The methodology used for over 8,000 companies in 47 countries includes:
- 3 Pillars: Environmental, Social, and Governance.
- 14 Themes: such as Climate Change, Labor Standards, and Anti-Corruption.
- 300+ Indicators: Covering policies, strategies, processes, targets, and performance tracking, with an average of 125 indicators per company, depending on Subsectors and Geography.
FTSE Russell ESG Scores: Ratings from 0.0 to 5.0, where 0.0 indicates no disclosures and 5.0 represents best practices.
Listed companies eligible to participate in FTSE Russell’s ESG Ratings will be selected based on the following criteria:
- Companies with Prior SET ESG Ratings: For 2024, FTSE Russell's assessment will cover the companies that were included in the SET ESG Ratings from the previous year. In subsequent years, the assessment will include companies that have been part of the SET ESG Ratings at any point in the past.
- SET100 Index Constituents: All companies in the SET100 Index, regardless of whether they are in the SET ESG Ratings, will be assessed (based on the calculations from the last three rounds of the index).
- Voluntary participation: Companies not falling under the above categories (1 and 2) but interested in participating in the FTSE Russell’s ESG Ratings can apply. This criterion will apply from 2025 onwards.
FTSE Russell’s ESG company research relies on publicly disclosed information only. FTSE Russell does not send questionnaires to issuers. Data used is gathered from publicly available sources at the entity level, including corporate reports, websites and press releases. Such data sources are generally focused on transparency and information that is readily available to the market i.e. the most recent financial year for the company.
In 2024-2025, the Stock Exchange of Thailand (SET) will conduct a pilot assessment project with FTSE Russell, while continuing the SET ESG Ratings alongside it. This dual approach allows all parties time to adjust and prepare. During the pilot project, the SET will not publicly announce the FTSE Russell ESG Scores. However, assessed companies will receive their scores through FTSE Russell's online portal. From 2026 onwards, the SET will publicly announce FTSE Russell ESG Scores and discontinue the SET ESG Ratings.
SET Awards
The SET Awards Project is initiated by the Stock Exchange of Thailand, aiming to honor listed
companies, securities companies, asset management companies, and chief executives for their
excellence in different areas. The categories of the SET Awards are as follows:
By type of company
Consideration process
The Stock Exchange of Thailand has launched the Sustainability Awards, which is the combination of the previous “Top Corporate Governance Report Awards” and the “Best Corporate Social Responsibility Awards,” to honor listed companies’ outstanding performance in all areas of Sustainability Development and encourage executives and employees to be a good example of committed drivers of sustainable business enterprises. In addition to the Sustainability Awards, the SET has initiated the “Social Enterprise Investment Awards” for listed companies with outstanding performance in supporting social enterprises.
The Thai Institute of Directors (IOD) has initiated the Board of the Year Awards to honor and promote the most effective boards in every two years. The candidates must be the boards of listed companies on the SET and mai.
Selection Process
The Selection Sub-Committee appointed by the Award Committee selects the qualified boards of directors as candidates for the Award before carrying out the following selection process:
Step 1: Selecting company boards that meet the preliminary qualifications. The eligible boards are those whose companies have obtained “Very Good” or “Excellent” overall corporate governance scoring under the IOD “Corporate Governance Report of Thai Listed Companies 2014” combined with the assessment results of at least 70 percent in the area of Board Responsibilities:
Step 2: Contacting the nominated companies to request additional information and arrange an interview with the Selection Sub-Committee:
Step 3: Presenting the results for the Award Committee’s consideration and selection.
Selection Criteria
The criteria based on the OECD Principles of Good Corporate Governance and the SET guidelines for boards of directors are divided into five categories as follows:
1. Board Policy 15%
2. Board Members 15%
3. Board Structure 15%
4. Board Process 15%
5. Board Performance 40%