In a vibrant showcase of environmental commitment and support for small and medium-sized enterprises (SMEs), UOB Thailand recently held its much-anticipated Sustainability Compass Forum. The event was a celebration of sustainable progress, featuring a diverse gathering of experts in sustainability, industrial leaders, and passionate SME stakeholders. Central to the event was the ambition to usher Thai businesses smoothly along their path to decarbonization whilst seizing the bountiful opportunities of a burgeoning green economy.
Mrs. Panittra Vejjajiva, Head of Financial Institutions and ESG Solutions at UOB Thailand, shared insights with infectious enthusiasm, stating, “The UOB Sustainability Compass is crafted as a practical toolkit for SMEs venturing into the realm of sustainability. With over 1,600 businesses already on board, we stand proud to offer unwavering guidance, dynamic financial solutions, and strategic alliances, aiming to bolster their resilience and competitive edge.”
From Voluntary Action to Regulatory Mandates
Globally, governments and regulatory bodies are pivoting from a model of voluntary climate cooperation to a framework of enforceable regulations. In Thailand, the much-anticipated Climate Change Act and the Thailand Taxonomy’s introduction are set to become key cornerstones, providing clearer, more definitive frameworks to discern sustainable economic activities and assess environmental impacts.
Dr. Teeradetch Tungsubutra, a pivotal figure at The Creagy Co., Ltd. and Executive Director of the Climate Finance Network Thailand (CFNT), insightfully noted, “These emerging mechanisms signify the foundational rules of tomorrow. Corporations that grasp and adapt to this evolving landscape will carve out significant long-term competitive advantages.”
Reflecting global trends, Thai listed companies will soon embrace IFRS S1 and S2 standards, necessitating full disclosure of greenhouse gas emissions across Scopes 1, 2, and 3. Here, Scope 1 encapsulates direct emissions, Scope 2 represents indirect emissions from energy consumption, and Scope 3 encompasses other indirect emissions throughout the supply chain. Noteworthy is the five-year grace period set by Thailand’s Securities and Exchange Commission (SEC) for companies to amass Scope 3 data before full compliance becomes obligatory.
SMEs: Critical Players in Carbon Reduction
Mr. Chayathorn Chanruangvanich, a distinguished Partner at PwC Thailand, emphasized the indispensable role of SMEs in curbing Scope 3 emissions—often accounting for over 99% of total emissions in larger sectors. “It’s paramount for SMEs to initiate the measurement and management of emissions now, to ensure they remain compliant and seamlessly integrated within the supply chains of larger enterprises,” he stressed.
The forum provided a platform for SMEs to commence emissions data collection, establish baselines, and devise actionable plans in preparation for regulatory changes and to augment operational efficiency.
Real-World Strategies from Business Leaders
The event was further enlivened by a panel discussion, where three prominent Thai business leaders shared compelling narratives of their journeys towards sustainable integration:
- Mr. Panu Petra, Deputy Managing Director of Petra Group, elucidated their efforts including green-certified showrooms, solar rooftop installations, and cultivating a culture of employee-driven sustainable innovation. “UOB’s Sustainability Compass offers not just a guide, but an accessible roadmap for businesses like ours,” he proudly explained.
- Mr. Soros Yodmongkol, CEO of Unique Plastic Industry Plc, highlighted the essence of leadership and cross-departmental collaboration. “Our sustainability committee operates as a cohesive unit, aligning every department to meet future regulatory standards while optimizing operational costs,” he remarked.
- Mr. Arthit Vechakij, Chairman of Neo Clean Energy Co., Ltd., passionately argued the case for renewable energy investments. “Solar energy is a win-win—curbing emissions while ensuring robust financial returns. With tax incentives from the Board of Investment and forthcoming legislation, the moment to act is undeniably now,” he declared.
Financing and Partnerships to Accelerate the Transition
Continuing its pivotal role in fostering sustainable business growth, UOB is leading the charge through its Smart City Sustainable Financing Framework, funding initiatives across renewable energy, energy efficiency, water and waste management, and the adoption of electric vehicles.
“True sustainability thrives on robust partnerships,” affirmed Mrs. Panittra with conviction. “Beyond financial backing, we are cultivating networks that connect SMEs with sustainability solution providers, fostering a rich exchange of knowledge and sparking innovation.”
Looking ahead, UOB Thailand is poised to further expand its sustainability innovation program in the latter half of 2025, aiming to bolster cross-sector collaboration and fast-track Thailand’s transition to a thriving green economy.
It’s fantastic that Thailand is making strides towards a sustainable economy, but is it too little too late? Other countries have been on this journey for years.
Maybe, but it’s better late than never. Plus, this seems like a pretty comprehensive framework.
True, but I worry these policies won’t be enough to counteract industrial pollution in time.
As someone working in sustainability, I see these steps as crucial. Every bit of progress helps, doesn’t it?
I love the focus on SMEs but how practical is it for small businesses to change their ways fast enough to meet new regulations?
Regulations like these are going to make or break companies. What about those who can’t afford the transition?
UOB’s program seems like a great start, but what’s the catch? Big banks always have their angle.
Well, they are financial institutions, not charities. But strategic partnerships can offer real value.
Exactly. Banks need profit, but if they could make green investments more lucrative, why not leverage that?
Does this shift mean higher production costs for consumers? We might see a spike in prices soon.
As an investor, I see these developments as ripe opportunities. Clean energy is where the future growth lies.
Is clean energy truly the financial powerhouse it’s promised to be?
Absolutely, especially with global policy shifts towards environmental sustainability. The returns might surprise many skeptics.
Finally, someone is paying attention to Scope 3 emissions. They’ve been ignored for too long!
Ignoring them makes sense since they’re the hardest to measure and control.
But the hardest tasks often yield the most critical results. Ignorance isn’t an option anymore.
UOB’s approach seems promising. Creating a robust ecosystem of partnerships sounds like magic.
Good for UOB and Thailand, but are average citizens even aware of these changes?
I wonder how renewable energy investments will impact the job market. More training needed?
What happens to all the companies that don’t comply? Are we going to see them collapse?
They need to adapt or get left behind, but yes, some might not make it.
I fear the social and economic impact will be immense if they fail.
Emphasis on cross-departmental collaboration is intriguing. Often, departments like to operate in silos.
Sounds like another corporate stunt to me—lots of talk but little action.
Honestly, I’m more interested in how the SEC plans to enforce these rules for Scope 3. Anyone have info?
Enforcement will likely ramp up post-grace period, focusing initially on larger players for data integrity.
Leadership examples like those from the event can be powerful, but are they realistic for most companies?
It’s realistic with the right strategy and commitment. Look at Scandinavian countries.
With fiancial backing, even the most reluctant SMEs might come on board. It’ll be fascinating to watch.