Thailand’s leading capital market players launched a plan Tuesday to enforce climate commitments on listed companies. The Government Pension Fund (GPF), Association of Investment Management Companies (AIMC) and Stock Exchange of Thailand (SET) will start with the 100 largest firms in the SET100 index.

The effort rests on three main goals. First, it raises corporate standards for cutting emissions. Second, it deploys institutional investment to speed up environmental, social and governance practices. Third, it backs Thailand’s roadmap to a low-carbon economy through nationally determined contributions, or NDCs, under the Paris Agreement.

“Climate change risk is becoming increasingly tangible for asset managers,” AIMC chairwoman Chavinda Hanratanakool said. She added that environmental and climate metrics will factor more heavily into investment choices.

Starting this year, institutional investors will focus on climate performance among SET100 companies. The push expands to 200 listed firms in 2027-28. From 2029, ESG and climate rules apply market-wide. By 2031, the Thai capital market expects clear gains in climate-themed investments, including carbon credits, Chavinda said.

The SET and GPF will share data to refine ESG scoring. Companies with weak or missing disclosures could see reduced investment allocations. “We are collaborating with the GPF to strengthen collective action among institutional investors, building a system with the SET that enables listed companies to implement concrete climate strategies,” Chavinda said. Those strategies support short- and long-term greenhouse gas cuts.

GPF secretary-general Songpol Chevapanyaroj said the fund will screen its portfolio against set climate criteria as it aims for net-zero emissions by 2050. Firms that fall short risk frozen investments or outright exclusion. Companies with solid transition plans can still qualify. “Setting clear frameworks creates investment opportunities,” Songpol said. He stressed evaluating climate records alongside growth potential and sector basics.

SET president Asadej Kongsiri pointed to the exchange’s track record on ESG. Efforts include waste management drives and the Sustainable Thai Capital Market Initiative for net-zero progress. This year, the SET shifts from its local ESG ratings to the FTSE Russell ESG Rating Index. That move boosts global appeal for Thai stocks.

“A bright future must offer stability,” Asadej said. He called for diverse funding sources and strong risk controls amid rising global rivalry. Thailand’s cabinet has approved in principle a draft Climate Change Act. Once passed, it should hasten carbon cuts across the country, he added.

Soraphol Tulayasathien, the SET’s senior executive vice-president and chief strategy and finance officer, noted 123 listed companies now carry SET ESG ratings. Thailand runs over 100 domestic ESG funds managing more than 150 billion baht in assets.

With investors, regulators and the exchange aligned, 2026 kicks off a stricter climate-focused phase. It begins with SET100 firms and spreads market-wide, Soraphol said.