PPTV HD 36 had the opportunity to interview Dr. Srikanya, Secretary of the GPF, who created the taproot to select ESG businesses into the GPF portfolio worth 1.2 trillion baht.
Investing in ESG stocks or businesses continues to be an investment theme that has caught the attention of investors around the world as climate disaster awareness raises the possibility of high-risk crises. that may have a greater impact on our world than we think Especially regarding environmental and social changes. Many businesses have adjusted their big goals to create more sustainability for business and society.
Keep an eye on Thai ESG funds, expected to push 20 billion baht into the Thai stock market.
Cabinet approves tax exemption on purchases of Thailand ESG Funds at a rate of 30%, not exceeding 100,000 baht.
At the same time, more and more investors are using ESG criteria or factors to make investment decisions, or GPF-ESG Standard Criteria, together with business numbers that are fundamental factors. To help support long-term returns on investment (Long-term Return on Investment) by focusing on financial returns along with giving importance to creating good impacts on society. and to achieve sustainable investment goals
Like the Government Pension Fund (GPF), which has important generals like Dr. Srikanya Yathip, Secretary-General of GPF. who gave an interview with PPTV and clearly announced the filing point
Investment cannot destroy the environment and only make profits. Because in the end there will be no good investment because it will all be destroyed.
Therefore, GPF, as a large institutional investor You can see it here. and believe that investing in this way will help create good financial returns for members in the long run. while maintaining a balance between maintaining security of principal and generating returns from investments within acceptable risk. along with positive impacts on society and the environment
Balancing both ESG Return and Financial Return to create a balanced return because the ESG Return of some businesses may be good today but the Financial Return may not be good. But if we think that the future will come and is likely to be good, we are willing to invest. such as the use of electrical energy The future will surely come. We are ready to invest.
What are the indicators for selecting both stocks and bonds into the portfolio?
Dr. Srikanya Yathip, Secretary General of GPF. Said that the GPF brings ESG criteria and assessment results into the investment analysis and decision process in addition to analyzing fundamental factors and financial situations for both domestic and foreign investments.
Starting from the selection of external managers who come to manage the fund. The selection criteria for ESG issues are clearly defined. After selecting the external fund manager, the GPF will meet and discuss (engagement) with the executives of the external manager on ESG operations issues in order to stimulate and promote the implementation of ESG practices according to the agreement and the GPF. B. The ESG performance of external fund managers will be taken into account as one of the issues in evaluating the performance of external managers.
However, as of today, 100% of the Government Pension Fund (GPF) portfolio is ESG since the end of 2022. The value of the portfolio is 1.2 trillion baht.
For consideration of the GPF’s ESG standards (GPF-ESG Standard Criteria) in order to find groups of securities to add to the portfolio, they are divided into 3 groups:
Tier 1: Positive List
Refers to securities of businesses that have fully complied with the GPF’s ESG standard assessment criteria or performed better than the criteria specified. and there is a future trend for operations consistent with or better than GPF’s ESG standard assessment criteria. Securities of any business in this group are highly likely to be selected by GPF to be included in the ESG-Focused Portfolio.
Tier 2
Refers to securities of businesses that the GPF has assessed and found to have passed GPF’s ESG standard assessment criteria in important respects. There may be some conditions that are inconsistent but not significant. There is a tendency to continually develop or improve operations that support responsible business conduct. Which securities of companies in this group have a low-medium probability of being selected by GPF into the ESG-Focused Portfolio?
Tier 3: Negative List
Refers to a business that the GPF has assessed and found to not pass the GPF’s ESG standard assessment criteria in material respects, and the business is likely to conduct business and operate as it has always been, with no tendency to make changes to solve the problem. problem or prevent problems that create obstacles to being a responsible business operator. The securities of any businesses in this group do not have an opportunity for the GPF to be selected into the ESG-Focused portfolio fund.
2023-12-29 10:39:23
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