The GPF Secretary is moving forward with investing in ESG stocks to drive the GPF towards true sustainability.

Dr Srikanya Yathep, Secretary, GPF, is taking the fund forward. It aims to be a leader in ESG investing, and is a leader in funds responsible for ESG investing, with the aim of integrating all investments in line with the Sustainable Development Goals (SDGs).

GPF invests in environmental, social and governance (ESG) stocks for sustainability.

From the results of surveys in many countries around the world including Thailand it can be seen that sustainable investing is becoming more influential today. Currently, many organizations have created sustainability indicators. (Sustainability Index) to measure whether a company has business operations consistent with ESG concepts.

Dr. Srikanya Yathep, GPF Secretary, revealed the investment guidelines of the GPF based on the EGS Principles, saying: “GPF is clear and resolute in managing the investment portfolios of more than 1.19 million government employees and assets worth more than 1.28 trillion baht. Recently, The portfolio was invested to GPF has considered investing 100% ESG, but challenges remain in operating in this area, specifically finding ESG returns.

Although we help reduce global warming through different ways but there are still questions about whether what we are doing can actually help cool our planet. The question is still open to scholars. Those in the ESG industry must continue to search for answers. Because there is no specific answer. Moving forward on ESG is the same. Although there are currently private organizations that have created ESG scores. They come on sale in large numbers but there is still no clear single standard. Things you can do now is to push investment in the direction of sustainability

The GPF Trustee believes that ESG stocks have a positive impact on the stock market.

From the results of numerous investor surveys, countries around the world, including Thailand, can see that investors such as individual investors and institutional investors are giving greater importance to sustainable investing or investing in environmental, social and governance issues. The survey results have found that the majority of portfolios are allocated Institutional Investors, 80%, invests in organizations that conduct business in accordance with ESG principles, and financial advisors provide investment recommendations. Or invest more in ESG funds as well

“Because sustainable investing or investing in environmental, social and governance (ESG) stocks has become increasingly influential in the investment market. Currently, there are different organizations that have created the Sustainability Index to be an indicator that different companies have a business concept that is compatible with the ESG concept, with a limited number of companies having On degrees by evaluating all three dimensions, which are the environmental dimension, the human dimension in the organization, which is an important resource, and the transparency dimension in the organization, which is considered a cog in leading the organization. When an organization is evaluated from all three dimensions, it will be classified as a sustainable stock. Which can be Attracts investment interest among investors.

“From the above it can be seen that both individual investors and institutional investors are paying more attention to ESG stocks, which will definitely have a long-term positive impact on the stock market,” GPF Secretary Srikanya Yatip provided additional information.

GPF selects the value of ESG stocks to get the most benefit.

When choosing to invest in GPF shares, the GPF Trustee gave the answer: “When choosing to invest in ESG shares, we must first understand the ESG framework and use it to determine the investment guidelines of the GPF, including in order to manage investments so that they do not lose The concept of sustainability.”

Regarding ESG, GPF believes sincerely that investment cannot ignore environmental issues. Environmental, Social, Governance and Sustainability Leadership It is important to not just use PR or CSR, but to do so seriously. Working within a clear framework, GPF initially adopted principles of responsible investment. The United Nations or the United Nations as a framework for the investment process. Or consider environmental, social and governance (ESG) factors alongside other factors in making investment decisions.

For ESG business guidelines, the first step is to select fund managers who have ESG knowledge and capacity and can answer different questions, such as how to use ESG for investing. What are the selection criteria? Because in the past there was no outcome regarding ESG aspects, but now we should be able to answer these questions. Which will be an increase in the result from the results also come from financial performance.

Next is investment evaluation. In the past, there was a percentage of financial results. Now the ESG issue will be taken into account when evaluating. And it's not easy. You must work with partners such as private companies. International organizations such as the World Bank Determine information to evaluate the investment Prepare basic information Go to the investment decision-making team if the two companies achieve good financial results. But one company has better environmental, social and corporate value than the other. It is believed that such companies will face an interesting constraint in choosing an investment.

However, if the investing company has problems or needs to reduce or cancel this investment and the fund managers must be able to explain this. Because the most important thing is the members, in whom GPF cannot invest to achieve satisfaction in any aspect. But you should know that the money belongs to the members. It must protect the interests of members

GPF is involved in creating balanced financial and ESG returns

“We have to balance the two things, the financial returns and the ESG commitments, but in the end the members are the most important because they are the real owners of the money. Therefore, we cannot use the money to create any satisfaction. But we are using its money to move forward more than the GPF thinks in that way, which is what Some investments make it may be seen as good in terms of ESG considerations, but financially it may not be good. But if you look at the long term and see that this is a business there will be good opportunities in the future. A compromise can be reached in the short term For example, electric cars are future purchases for future returns, and ESG is not just a tool that helps create long-term growth for companies, but it is a place that drives all sectors to come together and work together to improve the world in every dimension.

As for where we invest, if we find that the business has human rights problems, Dr. Srikanya Yathib, Secretary General of GPF, said in conclusion. Or the environment we will not divest immediately. But we will use talking together to solve problems. To be able to travel in the same direction but if a problem arises and is not resolved, the General Partnership Fund itself will take measures to start gradually reducing the investment accordingly.

“Because we create balance. Both financial returns and ESG, but in the end the members are the most important. Because he is the true owner of the money the money cannot be used to create any satisfaction. But we use the money to move the future forward to achieve the greatest benefits for our members.