Thai SEC proposed revisions to the regulatory framework for sustainable and responsible investing funds (SRI funds) to improve transparency and accountability.
Aim to help investors make more informed decisions and reduce the risk of greenwashing by clearly classifying SRI funds and enhancing disclosure requirements.
SRI funds will be classified into five types based on their sustainability objectives.
Namely SRI focus (credible ESG standards), SRI improver (clear ESG improvement plans), SRI promote (active ESG promotion), SRI impact (measurable sustainability outcomes), and SRI mixed goals (a combination of ESG characteristics).
SRI funds must follow a minimum exclusion list (i.e. alcohol, tobacco, weapons) and avoid investments that cause significant environmental, social, or ethical harm.
Fund managers must separately disclose performance and ESG benchmarks, and include ESG monitoring details in annual reports to align with global standards.
SRI impact funds may voluntarily use third-party verifiers to assess the impact of their investments; sustainability corner will be added to factsheets for ESG information.
Existing ESG-themed funds must comply with the new SRI fund standards and update their management project details within one year from the effective date.
Consultation Period
Comment period of this consultation closes on May 6, 2025.
