Thailand’s Securities and Exchange Commission (SEC) is consulting on changes to rules governing sustainable and responsible investing (SRI) funds, aiming to enhance transparency, raise investment standards and eliminate greenwashing. The proposed reforms will introduce a new classification system for SRI funds, set stricter requirements on what companies qualify for investment, and compel asset managers to be more transparent about sustainability claims and fund performance. Under the new framework, SRI funds would be grouped into five distinct categories based on their sustainability objectives and the ESG characteristics of the businesses they invest in. The categories are SRI Focus, SRI Impact, SRI Improver, SRI Mixed Goals and SRI Promote. In a statement, the SEC said the move is designed to help investors make more informed decisions and bring Thailand’s regulatory framework closer to global best practices. Four of these categories share names with the UK’s Sustainability Disclosure Requirements. To reduce the risk of misleading sustainability claims, the SEC also plans to introduce minimum exclusion criteria for all SRI funds, barring investments in industries such as alcohol, tobacco, arms, pornography, and gambling. The consultation is open for feedback until 6 May.
