The ESG Implementation in Housing Development of Companies Listed on Stock Exchange of Thailand (SET)

Abstract

Currently, global businesses, including real estate development are required to operate with consideration for their environmental, social, and governance (ESG) consequences. By 2022, the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) will require all companies listed on the stock market to disclose their sustainable operation information. This article aims to explore the ESG Implementation in housing development of companies listed on Stock Exchange of Thailand. The study collected data from the 56-1 One Report of 15 real estate development companies and interviewed three business operators. The data was analyzed comparatively in terms of ESG concepts and operation characteristics among large, medium, and small-sized companies.

The study found that 1) most real estate development companies have important sustainability concepts and visions, which are to be a leading housing real estate development company, which developing sustainable businesses, creating benefits and responsibility for all stakeholders, particularly customers, and producing products and services for lifestyle needs; 2) the majority of companies focus on the social dimension (S), followed by governance and economic dimensions (G), and environmental dimension (E); 3) large companies have a strong emphasis on environmental sustainability in their operations, while medium-sized companies focus on supply chains management and business innovations for social and environmental concerns, and small companies prioritize community and social involvement in their operations; and 4) the case study found a significant obstacle in implementing ESG is the process of restructuring the organization's business framework, as well as supply chain, to become a sustainable housing real estate development business that meets international standards.

The study shows the situation of real estate development companies registered in the Stock Exchange of Thailand that have implemented ESG in their business operations. It reflects the adaptation of real estate development businesses towards incorporating sustainable concepts into all housing development processes, even though official sustainability reporting standards have not yet been enforced, which will begin in 2022.