Environmental issues, particularly climate change, have continuously intensified. Thailand has been ranked as one of most impacted countries by extreme weather events, furthermore, the business sector has an increasing tendency to abide by environmental policies and regulations in accordance with international standards.

On 23 August 2023, the Bank of Thailand (BOT) issued the directional paper on Transitioning towards Environmental Sustainability under the New Thai Financial Landscape to set out the strategic direction for every sector—in particular, the financial sector—in order to accelerate their transition and to develop the necessary infrastructure to adapt to environmental changes, especially climate change and one of 5 key building blocks is Products and Services.

Therefore, the BOT has issued this policy statement so that financial institutions and companies within the financial business group can appropriately assess climate-related opportunities and risks as part of their business conduct without creating additional risks. Also, they should be able to provide green financial products and services to support concrete transition for the Thai economic and financial system. The policy statement can be applied to 4 aspects as follows: 1) Governance 2) Strategy 3) Risk management and 4) Disclosure