Page 38 - SET SD 2563 - EN

About This Report & Contents
Messages from
the Chairman & President
About SET and Sustainable Sustainability Performance
SET Development
Listed Companies’ Corporate
Sustainability Performance
Corporate Governance Report of Thai Listed Companies (CGR) Performance Evaluation SET supports the Thai Institute of Directors (IOD) in their assessments for the Corporate Governance Report of Thai Listed Companies (CGR), and advises on measures to improve the corporate governance of listed companies on a yearly basis. In 2020, listed companies had an average CGR score of 83%. In addition, on the CGR assessment scale between 1-5 stars, 625 listed companies received a 3-star rating or higher. These represented 90% of the total listed companies assessed.
Sustainability Management Market Growth
companies that participated, 28 companies, or equivalent to 45%, passed the Thailand Sustainability Investment (THSI) assessment criteria. As a result, the number of listed companies on the THSI increased from 98 to 124 companies, accounting for a market capitalization of 11.89 trillion baht, or equivalent to 69% of total market capitalization. Furthermore, the average dividend yield of listed companies on the THSI index stood at 4.01%, a rate higher than the SET and mai average of 3.23%, which reflects the quality of this group of securities. Companies on the THSI List are also used as a basis for calculating the SETTHSI Index.
Thai Listed Companies on International Sustainability Indices
SET regularly prepares high-potential listed companies for inclusion on international sustainability indices. As a result, the number of listed companies selected for inclusion in the Dow Jones Sustainability Indices (DJSI) have increased every year since 2014. In 2020, 21 companies were selected for the DJSI, increasing from 20 companies in 2019. This number accounted for 40.26% of the total market capitalization and further cemented Thailand’s status in holding the largest number of DJSI listings in ASEAN. In addition, seven listed companies achieved DJSI Industry Leader status, which refers to the highest score received globally within their respective industries, second only to companies from the United States of America. Furthermore, 38 SET-listed companies were selected for inclusion in the FTSE4Good Emerging Markets Index, an increase from 34 listed companies in 2019, and a further 41 listed companies were included in MSCI AC ASEAN ESG Universal Index, an increase from 37 listed companies in 2019. These achievements reflect improvements in and the recognition of sustainable business development internationally.
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Sustainability Reporting and Disclosures by Listed Companies
SET encourages listed companies to disclose their sustainability performance according to international standards, and in compliance with SEC requirements and the needs of interested parties.This information will also help listed companies to improve efficiencies within their own organizations. In 2020, 127 listed companies disclosed their sustainability performance in accordance with GRI Sustainability Reporting Standards, accounting for 17.74% of the 716 listed companies surveyed. In addition, according to the Corporate Knights and Aviva report, “Measuring Sustainability Disclosure: Ranking the World’s Stock Exchanges 2019,” SET-listed companies ranked 9th out of 49 stock exchanges worldwide for outstanding sustainability disclosure, and SET was the only Asian stock exchange to be in the top 10 globally.
Thailand Sustainability Investment: THSI
SET encourages listed companies to participate in sustainability performance assessments in order to implement recommendations from SET towards organizational improvements across economic, social, and environmental dimensions. In 2020, of the 62 newly listed
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Sustainability Report 2020
124
companies
Selected for inclusion in the 2020 Thailand Sustainability Investment (THSI) List (Representing 69% of total marketcapitalization) FS10
21
companies
Selected in DJSI 2020 (Representing 40% of total market capitalization)