Responding to Evolving ESG Regulations and Guidelines: Strategic Actions for Facility Managers in Thailand

As a facility manager in Thailand’s microelectronics manufacturing sector, you face evolving ESG regulations and a global copper deficit. Here’s what you need to know and how to respond effectively.

Understanding the Regulatory Landscape

1. Growing Awareness and Frameworks:

The integration of ESG principles is rapidly growing in Thailand, influenced by global sustainability goals and the Paris Agreement. Key areas include climate change, pollution, energy efficiency, human rights, and corporate governance.

2. Legal Foundations:

ESG regulations are governed by various laws such as the Environmental Quality Act, Factory Act, Hazardous Substance Act, Occupational Safety, Health, and Environment Act, and Labour Protection Act. Recent drafts like the Climate Change Act and Clean Air Act are also pivotal.

3. Thailand Taxonomy:

This guideline helps classify business activities based on sustainability objectives, using a “traffic light system” for categorization. Although voluntary, it provides financing benefits for green projects.

4. BOT and SEC Guidelines:

The Bank of Thailand (BOT) encourages financial institutions to incorporate environmental considerations into their operations. The Securities and Exchange Commission (SEC) promotes transparent ESG disclosures and supports the issuance of green bonds.

5. Responsible Lending and Human Rights Due Diligence:

BOT’s policies promote responsible lending practices, while guidelines for Human Rights Due Diligence (HRDD) help companies manage their impact on human rights.

6. Carbon Credit Market:

The Thailand Voluntary Emission Reduction Programme (T-VER) allows businesses to generate and trade carbon credits to offset their emissions. ElectraMet systems produce >6.2 kg of CO2 emission credit for every kg of copper recovered.

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