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Invest in Our Planet: Reshaping Business and Investing for Global Positive Impact

Invest in Our Planet: Reshaping Business and Investing for Global Positive ImpactInvest in Our Planet: Reshaping Business and Investing for Global Positive Impact

SCG Chemicals Public Company Limited, one of our Corporate Members, provide us the article on Invest in Our Planet: Reshaping Business and Investing for Global Positive Impact.

Our world is getting warmer every day, and people are beginning to realise it’s time to change toward a more environmentally conscious lifestyle. At the same time, consumers expect businesses to operate on a sustainable basis without causing long-term damage to the environment.

“Invest in Our Planet” is the central theme of the environmental campaign for Earth Day (held annually on 22 April), which has been running consecutively for two years. The objective is to encourage all sectors, including government, businesses, and the general public, to work together and invest in making positive changes for the world.

From a consumer’s perspective, changing the world may start with simple actions, such as adjusting one’s behaviour. However, on a larger scale at the national or business level, transforming organisations into fully eco-friendly ones requires increased investment and financial liquidity support.

“SCGC is committed to conducting business along the path of sustainability. In the past, SCGC has invested in improving its operations to align with ESG principles, considering environmental factors, social responsibility, and good corporate governance. Furthermore, SCGC continuously innovates and develops chemical products for sustainability, such as SCGC GREEN POLYMERTM eco-friendly plastic resins, floating solar farms that support the use of alternative energy, or lightweight plastics for automotive components that help reduce energy consumption during driving. Importantly, SCGC is determined to achieve carbon neutrality by 2050.”

The investment world shifted focus to sustainability.

Regarding investments, it is evident that the financial sector is becoming more aware and directing its focus toward investments that positively impact society and the environment, also known as Impact Investing. This includes investments in stocks, mutual funds, or bonds that contribute to a better world while generating continuous profits.

Today, ESG criteria serve as indicators of which businesses prioritise creating positive global impacts. These criteria consist of Environmental, Social, and Governance factors. Several sustainability indices are available on the market, including the SETTHSI (Thailand Sustainability Investment) by the Stock Exchange of Thailand, the Morningstar Global Markets Sustainability Index by Morningstar, a leading provider of investment data and analytics, and the Dow Jones Sustainability Indices (DJSI) selected by RobecoSAM and S&P DowJones, which are internationally recognised indices. These indices incorporate ESG criteria along with considerations of historical returns, giving investors confidence in selecting stocks or funds that deliver long-term benefits.

A global push to support environmentally responsible businesses.

Turning to the business sector, transforming organisations to adapt to sustainability challenges requires a long-term vision and foresight for future changes. For example, offering products that address the need for alternative energy sources will become a crucial solution for preserving the environment in the future. Additionally, organisations must prepare funds to invest in business transformation or production processes, leading to the emergence of Green Finance as a means of raising capital and enhancing liquidity for environmentally-friendly businesses.

According to the United Nations Environment Programme (UNEP) definition, Green Finance increases financial flows to businesses focused on sustainable development to address environmental risks while generating good returns simultaneously. Globally, investments in green businesses are on the rise. China, for instance, has announced an increase in the proportion of investments in green bonds, while Singapore has allocated investments and reserves to cope with climate change and invested expressly in green ventures. European countries have also received environmental support from the public sector, enabling them to implement policies that continuously reduce greenhouse gas emissions.
Financial Instruments for propelling green business growth

When it comes to green finance, several financial instruments are used to raise capital for businesses and meet the needs of investors seeking returns from companies that operate based on ESG principles. These include Green Equity Funds, which are mutual funds that focus on investing in sustainable businesses; Green Loans, or credit lines used for improving businesses to be more environmentally friendly; and Green Bonds, which are debt securities or bonds issued to borrow money from investors. Among these, Green Bonds are the most popular method.

Currently, Green Bonds are classified as one type of ESG Bond, according to information from the Thai Bond Market Association, which categorises various types of sustainable bonds as follows:
  • Green Bond is aimed at raising capital to invest in or repay existing debts related to environmental projects.
  • Social Bond is issued to develop society and improve the quality of life for people, such as public health services, education, or other social initiatives.
  • Sustainability Bond is a combination of Green and Social Bonds, aiming to raise capital that will benefit both the environment and society simultaneously.
Additionally, there is a new type of bond called the Sustainability-Linked Bond, which not only aims to create benefits for both the environment and society but also has return conditions based on the achievement of specific targets. These financial instruments serve as mechanisms to drive businesses towards faster environmental changes.
In the world of investing, it can be said that sustainable investment is one of the most valuable investment strategies, not only providing returns from business growth but also including sustainable outcomes that help improve the environment, and the quality of life, and create a better world for everyone.

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