Thailand Sustainable Finance Roadmap

Corporate Governance, GBRW Consulting, GBRW Group, Green Finance, Strategic and Financial Planning

GBRW has been selected to support the International Finance Corporation (IFC) in providing consulting services for the Thai Sustainable Finance Roadmap.

The Thai government acknowledges the country’s vulnerability to climate change and the urgent need to transition to a more sustainable economy. The Bank of Thailand (BOT) has recognized the role of the financial sector in driving Thailand’s sustainable growth and has set out to promote sustainable banking in the Thai financial sector.

As financial intermediaries, banks are key to achieving the transition to a low-carbon economy by financing the sustainable energy, infrastructure, transportation and food systems. They can incentivize clients to mitigate negative and increase positive impacts to the environment and society by linking the cost of and access to capital to sustainability performance. Accordingly, financial services need to manage E&S impacts and risks associated with their activities and build portfolios that are resilient to climate-related and other ESG risks to remain competitive and relevant in a low-carbon future, as well as prevent financial instability.

The BOT aims to develop a Sustainable Banking Roadmap to recommend pathways, policies, frameworks and key initiatives, which will enable the banking sector to effectively manage ESG risks and contribute more systematically to the transition to a resilient and sustainable economy. As part of this collaboration, IFC and GBRW will support the BOT in developing a Sustainable Banking policy framework, which includes a sustainability roadmap and tools to help the banking sector improve ESG risk management practices.

Deliverables included:

- Research best practice in Sustainable Finance principles and practice, and the optimal frameworks and international co-operation agreements for Thailand

- Diagnostic review and gap analysis of current Sustainable Finance practice in Thailand against relevant benchmarks

- Support the BOT and Working Group on Sustainable Finance to conduct a gap analysis with an aim to better understand the current regulatory and policy environment related to sustainable finance in Thailand and provide recommendations that could serve as building blocks for driving sustainable finance in Thailand

- Support BOT in drafting the Sustainable Banking Roadmap based on an agreed outline in consultation with the relevant stakeholders-

- Support the consulting process of the Sustainable Banking Roadmap