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Legal guides written by SIAM LEGAL INTERNATIONAL:
Sustainable finance in Bangkok, Thailand, refers to financial activities that consider environmental, social, and governance (ESG) factors in investment and lending decisions. As part of Thailand’s commitment to sustainable development and the Paris Agreement, the financial sector in Bangkok is increasingly integrating sustainability principles. This area of law governs the issuance of green bonds, ESG-compliant funds, socially responsible investing, and the regulation of projects that aim to generate long-term positive impacts for society and the environment while remaining financially viable.
Understanding sustainable finance regulations can be challenging due to their evolving nature and the intersection with both international guidelines and local law. You may require legal assistance in situations such as:
In Bangkok, sustainable finance is shaped by both Thai regulations and guidelines adopted from international standards. The Securities and Exchange Commission (SEC) of Thailand has published guidelines on the issuance of green, social, and sustainability bonds, aligning with international frameworks such as the International Capital Market Association (ICMA) Green Bond Principles. Commercial banks and listed companies must follow ESG disclosure requirements for public reporting, in line with the Stock Exchange of Thailand (SET) sustainability measures. The Bank of Thailand also encourages financial institutions to integrate ESG risks into their credit and investment policies. Laws related to environmental protection and corporate governance further intersect with sustainable finance initiatives.
Sustainable finance involves investment, lending, and other financial activities that incorporate ESG considerations, aiming to create positive social and environmental impacts while generating financial returns.
Yes, there are SEC guidelines for the issuance of green, social, and sustainability bonds. Issuers must demonstrate the use of proceeds for projects with environmental or social benefits and provide annual reporting.
Listed companies are required to disclose ESG-related risks and performance as part of their annual reporting to the SET, and banks are encouraged to include ESG criteria in lending and risk assessment processes.
Yes, foreign investors can invest in Thai ESG funds, green bonds, and other sustainable financial products, subject to local investment and ownership regulations.
Non-compliance can lead to fines, enforcement actions by regulators, loss of investor confidence, and reputational damage.
The main regulatory bodies are the SEC, the Bank of Thailand, and for corporate governance and stock exchange matters, the SET.
Investments must meet criteria set by regulatory guidelines, such as proceeds being directed to projects that promote renewable energy, energy efficiency, waste management, or social development.
Check for certifications or third-party verifications, review disclosure documents provided by issuers, and consult with legal professionals specializing in ESG compliance.
While not legally required, having a lawyer can help ensure compliance with SEC guidelines, draft necessary documents, and mitigate legal risks.
Disputes may be resolved through negotiation, mediation, or litigation, depending on the contract terms, regulatory requirements, and nature of the disagreement.
For further guidance and support on sustainable finance, consider consulting the following organizations and governmental bodies:
If you require legal advice or assistance in sustainable finance in Bangkok, begin by identifying your specific needs such as regulatory compliance, investment structuring, or dispute resolution. Prepare relevant documentation and seek out a qualified legal professional with experience in Thai finance and ESG matters. Arrange an initial consultation to discuss your objectives and challenges. Request information about the lawyer’s experience with sustainable finance cases and ensure you understand their fee structure. Reliable legal counsel will guide you through compliance, transactions, and any legal proceedings related to your sustainable finance activities in Bangkok, ensuring your interests are protected and aligned with local regulations.
