SG has recently emerged as one of the concepts of sustainable development that has gained traction among investors when making investment decisions. The criteria, which refers to three dimensions as its name suggests—the environment, society, and governance—have to not only reflect the responsibility of the organization toward its stakeholders but also capture the performance of the organization in a sustainable way.
A survey conducted by Kasikorn Research Center (KResearch) on shifting customer behaviors found that 97% of respondents were willing to pay more for environmentally friendly products. Investors consider ESG risk in selecting investments. Furthermore, regulators have given greater importance to ESG consideration, implementing policies such as the Carbon Border Adjustment Mechanism (CBAM). Both the European Union and the United States are also more stringent in their national regulation, requiring publicly traded companies to disclose information on ESG reports, carbon tax collection measures, corporate greenhouse gas emissions, and so on.
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