Bangkok: "Money" and "Sustainability": When investment is not just about profit, but about the survival of the planet. In the past, many might have viewed investing in the environment or sustainability as contrary to profit-making. However, Professor Dr. Pisut Piermonkul, Director of the Carbon Sustainability Institute, believes the world has changed. Integrating finances with sustainability is no longer an option, but a "necessity" that all sectors must urgently implement.
According to Thai News Agency, Professor Dr. Pisut pointed out that if we want to reduce greenhouse gas emissions or build climate resilience, 'we must invest.' While in the past we measured success solely by monetary profit, today, if we gain 2 million baht in profit but face a natural disaster causing 25 million baht in damage, that profit is meaningless. The concept of Green Finance or Sustainable Finance has become clearer and more serious since around 2010. It recognizes that while monetary returns may be slightly lower in some projects, the benefits in other dimensions are far more valuable.
Prof. Dr. Pisut summarized the key elements that have led investors worldwide to focus on sustainability through three main perspectives: Return, Resilience, and Reputation. Return ensures investments yield business returns. Resilience builds stability and adaptability to crises, exemplified by China's investment in solar cells and clean energy in deserts for long-term energy security. Reputation allows organizations receiving Sustainable Finance funding to project an image of sustainability, attracting other investors.
The success of the green financial world stems from the collaboration of three main groups: the public sector, associations like ICMA or LMA, and the banking and financial sector. The public sector serves as a policy signaler. Associations act as a "central link" in setting clear criteria and standards. The banking and financial sector injects funds into projects that meet sustainability criteria.
Thailand is considered a "premium customer" on the international sustainability stage, with many Thai companies receiving high scores in the DJSI (Dow Jones Sustainability Index). A clear example is the Electricity Generating Authority of Thailand (EGAT), which issued Sustainable Link Bonds with the cooperation of the ADB (Asian Development Bank), proving Thailand's sustainability management standards match international standards.
The journey towards sustainability requires funding, capital, and collaboration. While current financial tools may not be perfect, stricter disclosure and rating systems will filter funds, ensuring they flow only to truly environmentally friendly projects and ultimately transforming "capitalist fantasies" into "sustainability for the people."