Resident Coordinator's remarks at the MoU Signing Ceremony on the Promotion of the SDGs in the Thai Capital Market between SEC and UNDP

Dr. Pichit, Khun Ruenvadee, UNDP colleagues, partners and friends,

Congratulations as you sign this MoU today, in the context of our longstanding partnership for advancing the SDGs in line with the national development plan. UNDP and all of UN Thailand look forward to working closely with the SEC on strengthening these areas of cooperation.

I want to take this opportunity to highlight how the MoU can be a starting point for practical support for the private sector, investors, and bankers to integrate SDGs into their operations more successfully.

Just today, the Bank of Thailand has released its financial landscape analysis setting out the key direction for repositioning the Financial Sector in the country. It prioritizes leveraging technology, managing transition towards sustainability without disrupting the economy and shifting to resilience based on a rule and principle based approach for financial providers to adapt to risk management.

Today’s MoU clearly coincides with this broader movement across the economy. In developing the sustainable capital market, raising awareness, and exchanging knowledge and experience, we can continue to provide greater clarity and technical advice for those tangible steps necessary for implementation.

There is growing recognition, here in Thailand and across the world, that the ways we have done business and our patterns of production and consumption are not sustainable. Environmental and social risks are no longer seen as add-ons that can be managed away, but central to how businesses and investments operate.

As we get to work in 2022 and beyond, this integrated approach to the SDGs and implementation spans all of the UN’s work and our partnerships across government and civil society.

Last month, the UN, Ministry of Foreign Affairs and NESDC signed the Sustainable Development Cooperation Framework, which will guide the UN’s work over the next five years in Thailand.

The Framework is firmly aligned with the 13th draft National Economic and Social Development Plan, which has the SDGs built in as a key concept, alongside the Sufficiency Economy Philosophy, resilience and the Bio-Circular Green Economy.

The Cooperation Framework’s three key priorities are 1) the green and resilient economy, 2) strengthening human capital and 3) all people benefiting from development in line with leave no one behind.

This development trajectory is all about the SDGs and the integrated policy approach required for sustainability.

The entirety of the UN’s work depends on the partnerships such as those here today, with government, including the SEC, the private sector and civil society, and increasingly at the community level to focus on SDG localization.

It is important see this momentum in the context of the raft of sustainability principles and frameworks that are gaining traction in Thailand, supported by multiple UN agencies in a joined-up approach.

Through different platforms and partnerships, the private sector is signing on and exploring frameworks such as the UN Guiding Principles on Business and Human Rights, the Dow Jones Sustainability Index, the Principles of Responsible Banking, and Principles of Responsible Investing, among others.

These are different means that all work towards the same social, environmental and climate goals. Progress is going on simultaneously and we need to consider how they work together in Thailand’s context, and how we can harmonize the whole.

At the same time, there are cross-cutting initiatives such as the Women’s Empowerment Principles where we’re moving forward with government on gender and diversity, including the SEC and Office of SME Promotion, with nearly 700 companies signing up so far.

The Global Compact Network Thailand is another essential partner, recently committing more than US$40 billion to SDG-related projects for the coming decade.

As you are aware, ahead of the global Climate Conference, the UN, and Ministry of Finance together with yourselves co-convened the Sustainable Thailand event where 43 financial institutions, including asset management companies and banks with total assets of US$1.3 trillion committed to mainstream SDGs and climate action in business strategies.

The SEC is also leading the dialogue with Thai investors and financial industry for uptake of the PRI as a framework to take ambitious climate action and plan SDG investments.

Of course, climate is central to the SDGs and our shared priority going forward. Long-anticipated progress for international carbon trading has major implications for Thailand. Getting the domestic carbon market right has the potential to position Thailand as a regional leader.

The financial, investment and insurance sectors have to play an important role alongside Thailand’s leading commercial and industrial entities. Private and blended capital, through innovative financing, will be increasingly critical as public spending will be insufficient to advance sustainability principles at the pace that is required.

Thailand is already a leading innovator in many areas of innovative financing including promoting sustainable capital markets, the issuance of green sustainability bonds, and as one of the first countries to implement biodiversity financing. 

Concurrently, UNDP has been working closely with the public and private sector on the Integrated National Financing Framework, to scale up financing from all sources for government and communities in SDG implementation and localization efforts. This includes strengthening the capacities of local actors and deepening local partnerships across the country.

The investments needed to deliver on the SDGs requires a systemic approach, integrating sustainability in financial policy, investment practices, and promoting new business and investment models that treat sustainable development as the fundamental purpose.

This transformation will be challenging for everyone, and neither investors nor business can be expected to go it alone.

Again, let me express my appreciation for this MoU as a starting point and an opportunity for all of us in Thailand to continue our dialogue and engagement with key financial stakeholders as we move forward.

Thank you.