Resident Coordinator's remarks at the virtual seminar "Getting Started in Responsible Investment: An Introduction to Key Concepts, Practices and the PRI for Thai Market Participants"

Let me begin by congratulating Khun Ruenvadee, Khun Srikanya, and Khun Vasin, for your leadership, in rapidly moving forward in bringing together asset owners, investment managers and professional service provides to better understand responsible investment and the UN supported principles for responsible investment.

The United Nations is honoured to be co-organizing this important event, which follows the “Sustainable Thailand” roundtable on investing and banking held in September. 

The UN is a steadfast partner supporting members of the capital market in Thailand to strategically integrate ESG factors to navigate their sustainability journey.

As the world’s leading proponent of responsible investment, the PRI was launched in 2006 in concert between global investors and then-UN Secretary-General Kofi Annan, with the UNEP Finance Initiative and UN Global Compact serving as co-convenors.

The PRI is the first of three industry-led voluntary sustainable finance principles developed with the UN, followed by the Principles for Sustainable Insurance in 2012 and the Principles for Responsible Banking in 2019.

Today, there are more than 1,000 signatories worldwide with a combined assets under management of US$70 trillion. In Thailand, the Government Pension Fund is the only asset owner signatory.

Across South-East Asia, over 60 asset owners have signed up to these principles with Singapore and Malaysia leading, followed by Indonesia and Vietnam.

Initially, the PRI gained traction in the global investment community as environmental and social risks dominated the business risk landscape, with the Principles serving as a useful framework.

In the last few years, investors have increasingly found that many of these E&S risks are becoming global and systemic, so much so that they can no longer be managed away.

From our consultations during the Sustainable Thailand roundtable, it’s clear that investors are aware of these realities and often ahead of the curve in sustainable investment.

Banks tells us that factoring for ESG reduces risk and ensures higher rates of return, improved productivity and efficiency, and reduced waste. They also highlight that ESG lending enabled them to weather the pandemic better, with more sustainable net returns enhanced shareholder confidence.

They also tell us that there is a shortage of projects and areas to invest in this area, making it more challenging to find viable investments.

However, we are at an inflection point in this regard. COP26 saw significant progress on the Paris Agreement Rulebook and Article 6 relating to a new global carbon market, laying the ground for new opportunities as carbon trading is formalized at the national and regional level.

There is a growing realization that a big change in how we create economic value is inevitable, and that it is now in the self-interest of investors to actively be part of the solution.

This is how investors have started to utilize the PRI and associated initiatives, such as the Net Zero Asset Owners Alliance, as frameworks to take ambitious climate action and plan SDG investments.

Technology and the private sector’s pace will follow in investment, with financing driving action on some of the biggest climate challenges for this country. This is where you as asset owners and investment managers can support to tip the balance.

Navigating this transition is going to be a challenge for everyone. I encourage investors in Thailand to join the PRI and fully participate in the global investor community on responsible investment to make the most of this transition.

Thank you and I look forward to working with you on this in the future.