Policy Statement of Bank of Thailand:
Internalizing Environmental and Climate Change Aspects into Financial Institution Business
ธปท.ฝกส.(01)ว.113/2566 | 15 Feb 2023
The BOT issues Policy Statement: Internalizing Environmental and Climate Change Aspects into Financial Institution Business to expect financial institutions and companies within the financial business group to adopt this policy statement to systematically assess the environmental impact both in terms of opportunities and risks in the decision-making process and operations which, in turn, support the economic transition and elevate their business operations to align with international sustainability standards. The policy statement can be applied to 4 aspects as follows:
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