The Stock Exchange of Thailand (SET) in partnership with Walk Free and Finance Against Slavery and Trafficking (FAST) has launched the first guidance to assist Thai-listed companies to identify, address and report on modern slavery risks throughout their value chain.
Modern slavery impacts every country and supply chain in the world. With annual profits from modern slavery and human trafficking estimated at $150 billion, business leaders and investors must take action to ensure profits are not derived from the exploitation of vulnerable workers.
The Guidance on Modern Slavery Risks for Thai Businesses explains what makes workers vulnerable to modern slavery, outlines specific industry risks in Thailand, and provides a checklist on what businesses should do to identify, address and report on these risks. Alongside the Guidance, an interactive Modern Slavery Benchmarking Tool was also introduced to provide businesses with a score and tailored report on what they are doing well and how they can improve.
Thai-listed companies can use these resources to strengthen their modern slavery risk management and improve their sustainability reporting. In particular, it assists Thai listed companies with reporting under the new “56-1 One Report” mandatory sustainability reporting obligations. Investors can use the guidance to understand key modern slavery risks for Thai companies, identify best practices for addressing and reporting on these risks and ensure they are using modern slavery disclosures to inform investment decisions and conduct more effective stewardship.
Pakorn Peetathawatchai, SET’s President, confirms through these actions that the exchange, as a member of the SSE initiative, is committed to sustainable development and assures that Thai listed companies are provided with the right tools to effectively manage environmental, social, and governance (ESG) risks. SET’s President said, “Human rights issues are attracting worldwide attention. Therefore, the corporate sector needs to prioritize human rights and actively work with all stakeholders to tackle and solve relevant issues, increase competitiveness and build trust in Thai companies in the global arena. Allowing business capabilities to adapt, compete and grow internationally.”
The guidance focuses on the key risks of Thai companies across eight industrial sectors to facilitate risk management for the company. It also promotes transparency by instructing companies on what they should disclose to the market.
SET’s Sustainability Committee Member, Dr. Seree Nonthasoot comments on the importance of this launch “The Guidance represent a significant milestone for SET in raising awareness and enhancing business potential, especially for listed companies in conducting due diligence and disclosing on modern slavery risks in not only their operations but throughout value chains. It is part of SET’s strategy on corporate governance development with respect to the ESG framework that has been embedded into our operations.”
Modern slavery benchmarking tool
SET, Walk Free and FAST provide Thai businesses with additional tools to manage modern slavery risks. The online modern slavery benchmarking tools allow businesses to assess and benchmark how they manage the risks of modern slavery in their value chain. Listed companies must disclose corporate performance information on ESG and related risk management so that shareholders and other stakeholders can monitor them.
“This transparency will ultimately win the trust of stakeholders and open up business opportunities for long-term growth,” says Mr. Pakorn, SET’s President. He continues by saying that “SET’s role and leadership in promoting sustainable business is in line with our vision and our plan to develop Thai capital markets for the benefit of all sectors. To make the capital market work for everyone. Furthermore, this corresponds to SET’s role as a partner exchange in the United Nations Sustainable Stock Exchanges initiative, which focuses on the development of capital markets for sustainable growth for the benefit of society and the economy as a whole.”
The guidance on modern slavery risk for Thai companies and online modern slavery benchmarking tools will be available in Thai and English. These tools help assess business management throughout the value chain, from governance and policy, risk assessment and due diligence, to grievance mechanisms, response and remediation. Both tools were introduced in the online seminar “Modern Slavery: Addressing the Greatest Human Rights Issues of Our Time” on December 15, 2021.
The Stock Exchange of Thailand: SSE Partner Exchange
SET is featured in the SSE Stock Exchange Database, where you can check its sustainability activities. SET has an annual sustainability report and offers ESG related training. The Stock Exchange of Thailand also has written guidance on ESG reporting that can be accessed in the SSE ESG Guidance Database. SET is an SSE Official Supporter.
