The Official Launch of the SDG Investor Map for Thailand
Opening Remarks by H.E. Mr. Arkhom Termpittayapaisith, Minister of Finance The Official Launch of the SDG Investor Map for Thailand Wednesday, 6 July 2022, 09.40 – 09.50 hrs (10 minutes) at Ballroom I – II Room, Hyatt Regency Bangkok Sukhumvit (Streaming via Zoom & Facebook Live)
Ms. Kanni Wignaraja (คานนี่ วิกนาระจา), UN Assistant Secretary-General, UNDP Assistant Administrator and Director of UNDP Regional Bureau for Asia and the Pacific, Ms. Gita Sabharwal (กีต้า ซับบระวาล), United Nations Resident Coordinator in Thailand, Mr. Renaud Meyer (เรอโน เมเเยร์), Resident Representative of UNDP Thailand, Distinguished Guests, Ladies and Gentlemen, Good Morning,
It is my honor to be here today to give an opening remark and to join all of you in an effort to accelerate the financing for development. Today’s meeting presents an exciting opportunity for business leaders to share experiences and explore new approaches in integrating sustainability framework into business and investment strategies and drive Thailand towards achieving Sustainable Development Goals or SDGs.
First of all, I would like to congratulate the United Nations Development Program (UNDP) and the Securities and Exchange Commission for the launch of SDG Investor Map for Thailand, which is very timely.
As we all know, achieving the SDGs requires significant investment, and the current level of investment by the government alone is not enough to meet the ambitious targets. We need to unlock the new source of finance, especially from the private sector. And the Map could help facilitate this by providing investors with localized insights into market conditions, highlighting SDG investment opportunity areas as well as the expected development impact of such investments.
Ladies and Gentlemen,
The Ministry of Finance has placed significant consideration to the role of financial sector in financing for sustainable development.
The Government successfully issued the sustainability bond in August 2020, the first of its kind in ASEAN, with total amount of 30 billion baht to support the mass transit orange line and Covid-19 relief package. Since then, the Ministry of Finance has continued to issue a sustainability bond to solidify the success and ensure liquidity of bond in the market.
Presently, the total sustainability bond outstanding size is 212 billion baht. We have accomplished the development of “Sustainable Finance Initiatives for Thailand” by collaborating between Thailand’s financial regulators which are consisting of the Ministry of Finance, the Bank of Thailand, the Securities and Exchange Commission, the Office of Insurance Commission, and the Stock Exchange of Thailand. These initiatives serve as a framework for driving sustainable finance across the financial sector.
Ladies and Gentlemen,
Despite the pandemic and conflict between Ukraine and Russia, all countries around the world, including Thailand, have hindered the progress towards the SDGs. The repercussions from these crises emphasize more than ever the urgent need a more fit-for-purpose financing framework for private finance to ensure SDG achievement by 2030.
The private sector, in particular, is destined to and can play a more critical role than ever before to make a difference, by working together, and with the government, to create innovative solutions to improve the lives of everyone and the society in which we live in.
It is encouraging to see many Thai business, especially listed companies in Thai capital market, have already put the sustainability strategies, policies and codes of conduct in place with good ESG disclosure practices with so-called “One-Report.” However, these do not automatically guarantee measurable positive impacts. Rather, being an impactful sustainable business means fully integrating sustainability into the business strategy, operations, stakeholder engagement and supply chain management.
Ladies and Gentlemen,
The question is no longer whether companies should integrate the SDGs in their business and investment strategies but rather how they should do so. Let me elaborate.
First is to invest in community. Businesses must not forget about the larger community in which they operate. Companies should not just do well financially but also do good externally to all stakeholders in their supply chain including customers, suppliers, employees, and most importantly, the environment. I strongly encourage companies to step up their commitments to tackle SDGs issues such as promoting quality education, health care, and climate change which Thailand has made Bio, Circular, and Green, or BCG economy as the national agenda in achieving net-zero emissions.
Second is to invest in technology and innovation. It is time for private sectors to invest and take advantage of new disruptive technology. For example, the use of AI in transforming the provision of good and services can certainly increase operational efficiency. Blockchain for traceability and big data can help improve market condition to more targeted and customized strategy. Incorporating advanced technology will not only boost productivity but also free up precious time to focus on future innovation.
And third is to invest and finance sustainably. At the core of sustainable finance lies in the financial sector, including the capital market, who has a key role to play in influencing how capital is allocated to economic activities with sustainable development outcomes. Again, I would encourage the financial sector to take the leading role in re-orienting investments towards more sustainable businesses and technologies, financing the long- term growth in a sustainable manner, and supporting a low-carbon, climate resilient and circular economy. All these will result in sustainable investment that delivers both financial performance and positive impacts on society.
Ladies and Gentlemen,
We are less than 10 years out from meeting the deadline for the Sustainable Development Goals, and so, much more needs to be done to achieve the set Goals. We need all stakeholders, including the private sector, to take a bold action to advance the course of sustainable development for Thailand and guarantee sustainable future and prosperity for all.
To this end, I wish you all a fruitful and engaging meeting ahead and I look forward to hearing more insights and experience of all the expert in the field of sustainable finance. I am confident that the discussions today will help strengthen our resolve in accelerating Thailand’s progress towards the SDGs.
Thank you very much.
