Sustainability key to Thailand's drive for developed country status

THAILAND has made remarkable progress in social and economic development. In just four decades, it transformed from a low-income country into an upper-middle-income country. Today, the nation is building on this momentum to prepare for its next big leap: achieving the status of a developed country by 2037.

Success will depend on a set of reforms that emphasise sustainability in all aspects of economic growth and development. Thailand's vibrant private sector - especially the financial system - can significantly contribute to long-term growth. But it will take innovative business practices and a change of mindset to ensure it is sustainable. Environmental, social, and governance (ESG) factors will need to be fully integrated into business decision-making.

Thai banks hold assets estimated at US$611 billion while banks across emerging markets hold assets estimated at more than US$50 trillion. They provide the bulk of the local financing, which make them ideally placed to help the private sector adapt to new economic realities linked to environmental and social sustainability: climate change and resource scarcity, among others. Banks must be key players in the national sustainable-development agenda.