ESG A New Value! Why the Concept of Sustainable Development Has Gained Popularity and Its Investment Appeal 

ESG is a concept of sustainable development, which stands for Environmental, Social, and Governance It is a concept related to evaluating and considering an organization’s impact in three main areas: Environmental, Social, and Governance, in business operations — especially in investment decision-making and strategic business planning with a focus on long-term sustainability. Each aspect includes the following details 

1. Environmental

In terms ofEnvironmentalIt involves how the organization responds to environmental impacts, including 

• Energy management Use energy efficiently and develop renewable energy sources for increased use. 
• Reducing greenhouse gas emissions There are measures to reduce greenhouse gas emissions from business operations. 
• Waste management Recycling, efficient waste management, including reducing waste in the production process. 
• Sustainable use of natural resources. Use natural resources responsibly without harming the environment.

Organizations that consider the environmental aspect will develop strategies to reduce environmental impact and promote sustainable resource use, which helps the company achieve sustainability both in business and environmental terms.

2. Social

In terms ofSocialFocuses on the interactions and impacts that the organization has on society, especially with

• Labor and human rightsSuch as fair employment, respecting labor rights, complying with regulations, and preventing the use of child labor and forced labor.
• Diversity and inclusionPromote the creation of a diverse and equitable work environment.
• Treatment of consumersProviding quality services, protecting personal data (PDPA), and promoting product safety in all forms. 
• Community engagementSupporting local communities, such as through donations, community development projects, creating educational opportunities, or participating in solving social issues.

Good social practices help build strong relationships with customers, employees, and communities, which fosters public trust and support.

3. Governance

In terms ofGovernanceFocuses on internal management and governance with integrity, such as 

• Transparency Transparent and honest disclosure of information, such as reporting ESG performance and financial operations.
• Board governance A board that is qualified and capable of making impartial and ethical decisions.
• Anti-Corruption There are policies to prevent and combat corruption, bribery, and business misconduct.
• Legal responsibility The company must comply with relevant laws and regulations, including safeguarding the interests of shareholders and other stakeholders.

Good governance enables companies to operate efficiently and transparently, reducing the risks that may arise from mismanagement or corruption.

ESG is a metric used to evaluate how an organization operates and takes responsibility for factors related to the environment, society, and governance, aiming to create positive impacts economically, socially, and environmentally, while also helping to reduce risks and increase long-term business opportunities.

The ESG concept helps build business credibility, reflects the business’s awareness and responsibility toward stakeholders, and presents performance results in developing the business for sustainable growth.

Why is ESG related to SDGs Why has ESG become an important factor for modern investors?

As we know well, nowadays when it comes to sustainability, most people have gained a better understanding and awareness of this issue. Many business organizations are increasingly recognizing the importance of SDGs and ESG. ESG reflects investors’ desire to invest in businesses that consider creating positive impacts on the environment (Environmental), society (Social), and governance based on ethical principles (Governance). This aligns with the SDGs, or Sustainable Development Goals, which consist of 17 goals divided into five groups as follows: 

1. PEOPLE
2. PROSPERITY
3. PLANET
4. PEACE
5. PARTNERSHIP

ESG a choice or a survival strategy?

ESG investment that creates long-term opportunities

In the past, investors mainly focused on investing in businesses with high profits, paying little attention to other factors. However, current analyses by several asset management companies indicate that  In the long term, investing in companies that focus on the ESG concept and operate with sustainability in mind will yield better returns than companies that only seek profit. 

According to an analysis by Bangkok Bank This issue was interestingly addressed by Bangkok Bank in the context of ESG investment. A survey conducted by the United Nations Global Compact revealed that only 25% of companies have clear ESG assessment and evaluation practices. By the year 2030, companies without an ESG mindset may become unaccepted and miss out on investment opportunities, as they do not align with global sustainability goals. These goals, known as the Sustainable Development Goals (SDGs), are commitments made by over 193 member countries worldwide to achieve sustainable development together. 

Sustainability Index – An index for measuring sustainability

The Sustainability Index is an index that reflects the stock price movements of listed companies based on their performance in environmental, social, and corporate governance (ESG) responsibility. It is used as part of the evaluation and screening process for companies, alongside other criteria set by each index provider. Each sustainability index has its own specific rules and selection criteria.To support investment decision-making and business valuation.  Such as 

1.SETTHSI Prepared by the Stock Exchange of Thailand

2.ESG Index is developed by Thaipat Institute.

3.Morningstar Global Markets Sustainability Index Developed by Morningstar.

4. MSCI ESG Index is developed by MSCI.

5.Dow Jones Sustainability Indices (DJSI) Developed by RobecoSAM.

6.FTSE4Good Index Developed by FTSE Russell.

Given the current situation, the DJSI, FTSE4Good Index, and MSCI ESG Index areIndex providers of sustainability indicators are all leading organizations popular and recognized by institutional investors worldwide as sources of investment information. FDI recommends that each sustainability index has different criteria and requirements. Investors should study, consider, and decide before investing.

Source: THE STANDARD

Interesting Trends in ESG Business

ESG business trends to watch in the future will play a key role in driving sustainability in terms of investment, business, and ethical development. As businesses begin to prioritize ESG, it not only helps reduce risks but also opens up new growth opportunities and fosters strong relationships across all sectors—especially among investors and consumers who value social and environmental responsibility.

Future global trends are shifting toward a focus on the environment, society, and businesses adapting to ESG trends that are gaining attention from investors worldwide. These trends can be divided into two main categories as follows: 

1. Environmental Aspect: Investment is increasingly directed toward new energy, renewable energy, and clean energy sectors, including companies that are seriously committed to managing greenhouse gas emissions throughout the entire process—from production and transportation to the final stages of operations. 

2. Social Aspect: Businesses related to health, well-being, and reducing social inequality are gaining attention, as they contribute to improving the quality of life and promoting inclusivity within society. 

Comprehensive Environmental Management Consulting Services  By FDI, an expert in environmental and sustainability matters.

In summarythe ESG concept is not just a passing business trend like many others before it, but rather a global mega trend focused on long-term sustainability and equality in the business sector—on a planet we all share as our home. Many businesses continue to adapt to the ESG approach, which presents challenges in terms of cost and readiness across various aspects. Transitioning to ESG requires multidimensional changes that are comprehensive and far-reaching. Nonetheless, it remains to be seen how businesses will continue to shift toward sustainability in the future—striving to generate profit while minimizing negative impacts on the environment and society. 

FDI Accounting & Advisory As an environmental and sustainability consultant, we are fully equipped to support all business organizations that share our commitment to environmental and sustainable goals. We offer advisory services tailored to help businesses operate under comprehensive conditions that align with government policies, while also embracing genuine transformation toward environmentally and socially responsible practices—ultimately leading to true sustainability. 

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