Screening•Rating•Investing. Sustainably.

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Our Rating Methodology

Thaipat Institute, the pioneer in the development of Thailand’s corporate sustainability database, conducts the ESG rating every year by assessing all listed companies in Thai stock market (Both SET and mai). Our rating scheme involves over 10,000 data points of publicly-available ESG information from six data sources:

Data disclosed under the ESG part in the annual registration statement (Form 56-1), the Securities and Exchange Commission;
Company information disclosed through the SET Information Disclosure System, The Stock Exchange of Thailand;
Findings from CG Scoring surveys, the Thai Institute of Directors (IOD);
Findings from sustainability development ratings on CSR Progress Indicators and Anti-corruption Indicators, Thaipat Institute;
ESG rating information on publicly listed companies, ESG Rating Company Limited (a whole subsidiary of Thaipat Institute);
Information on Media and Stakeholder Analysis (MSA), Image Plus Communication Company Limited.

Thaipat ESG investment universe consists of the ESG100 list, the 100 outstanding ESG performing listed companies in Thai stock market, and the ESG Emerging List, the attractive listed companies with promising ESG progress. The universe has been constructed via a multi-stage selection process using integrated ESG assessment through industry analysis, disclosure of company strategy relating ESG, and its financial reports.

The eligibility criteria are based on integrated ESG factor analysis in three dimensions (topic-specific, industry-specific, and company-specific) over ESG data using a best-in-class approach in each industry group (see sample report here).

Additional features of the eligibility criteria include profitability and free-float requirements, compliance with SEC regulations and legislations with no evidence presents a sufficient ground for enforcement.

With the Thaipat ESG investment universe, the Thaipat ESG indices has been constructed as a benchmark index, and also serve as an “investable index” with efficient liquidity and replicability. The liquidity criteria has been exercised by compiling two parameters: daily traded value; and free-float market capitalisation. The Thaipat ESG Index is equally-weighted and therefore subject to be rebalanced to re-establish the proper weighting (on semi-annual basis at the close of last trading day of July and January).

The Thaipat ESG Indices consist of Price Return, Total Return, and Net Total Return. The Indices are calculated by S&P Dow Jones and fed via Bloomberg and Reuters terminals to the investors worldwide.

For Factsheet, Performance, Constituents, Characteristics, Sector Breakdown, please visit S&P Dow Jones' Custom Indices.