Climate change trends and natural disasters have increasingly severely damaged the Thai economy and people’s livelihoods. and agricultural areas extensive damage
Data on the Global Climate Risk Index last year indicates that Thailand ranks ninth in the country affected by climate change. And research from the Swiss re Institute reports that if Thailand remains indifferent to adapt to cope with environmental problems in the next 28 years, we will lose more than 43% of our economic value or GDP, while our home business sector Has been pressured by international trade measures that day by day seems to be more rigorous on environmental issues This will affect both large and small businesses to keep up with them in order to create opportunities and reduce obstacles so they don’t get lost in the process.
Preparing to tackle environmental challenges is a matter of concern for all of us and all sectors that must work together. To drive the Thai economy to move forward smoothly without interruption. Comparable to traveling to the destination of passengers, both business and public. It is necessary to have a bus with good performance to carry it. On a road that has a strong structure to withstand impact and the storm that blows in
A well-established road is made possible by the government sector investing in infrastructure to help prevent and mitigate damage from natural disasters. and there is a sign showing the correct and clear direction of walking forward meet the different needs of each business group While the bus or the financial sector, such as the banking group, will play an important role in allocating money to the economy and promoting the business sector, whether small, medium or large, to be able to adapt and survive. and competitive
Recently, the National Bank, one of the regulators of the financial sector has come out to communicate both directions and goals in moving forward of the financial sector, emphasizing on the right timing and the speed of action must not be too fast or too slow which route and destination There are 5 main ways that the Bank of Thailand has pinned to develop the financial sector towards environmental sustainability as follows:
1. The Bank Group has standards for conducting business that take into account the environment.
Even though each bank has integrated environmental issues into their work processes, they are still quite different, not doing them all at the same time. If the banking group is upgraded to include environmental factors in all business processes on a comparable basis. Inevitably, it will help develop products and services that meet the needs of the business sector and people. The Bank of Thailand will issue a business policy guideline that takes into account environmental dimensions as a framework for the banking sector to use as a guideline by September.
2. There is Thailand Taxonomy as a central standard for defining activities that are friendly to the environment.
A common understanding of what activities are environmentally friendly and unfriendly requires a common reference principle. Bank of Thailand has joined forces with the public and private sectors. Study and prepare the Thailand Taxonomy to be used as a reference and help to allocate funds to activities that are environmentally friendly more accurately. It started by grouping activities in the energy and transport sectors. which has the highest share of greenhouse gas emissions
3. There is a systematic environmental database. accessible to everyone
In this era, everything depends on information. It can be said that information is the key to making investment decisions. Opportunity Analysis Assess risks, formulate strategies, and develop products. from the end of this year onwards The Bank of Thailand will cooperate with government agencies, the private sector and the banking group. To develop a scattered environmental database into a system that covers all dimensions. This includes environmental data released from the banking sector. It will be open to all sectors to use it adequately and appropriately.
4. There are incentive measures to help businesses adapt. especially short-term measures
An indispensable thing for the business sector to adapt to the environmental change trend is capital, especially SMEs that are recovering from the COVID situation. It needs quite a lot of support from the government. Having the tools and assistance to help reduce the cost of adaptation will be a key factor in helping businesses overcome change. This is one of the low-cost support measures for SMEs who want to develop their business potential by taking into account environmental factors.
5. Knowledgeable financial personnel Ready to cope with environmental changes
The Bank of Thailand will cooperate with agencies both in the country and abroad. Organize courses and workshops to continuously enhance skills and knowledge for people working in the financial sector. To create knowledge and convey advice to the business sector, especially SMEs, to meet the needs of adapting to environmental sustainability.
If the Thai financial sector drives buses with customers both Large businesses, small people, people travel together along these 5 main routes with the right accelerator rhythm. And there is a concrete road structure that is strong and resistant to impact from the government to support from the beginning to the end, will surely allow everyone to pass through the obstacles from the rainstorm during And to reach the destination safely and smoothly is to see the Thai economy and society grow sustainably.
Author : Chularat Luangprasit and the Sustainable Banking Team Financial Institution Strategy Department