UOB Thailand hosts Sustainability Compass Forum to equip SMEs for a low-carbon future

The event brought together sustainability experts, industry leaders, and SME stakeholders to share practical strategies, regulatory updates, and financing solutions aimed at supporting Thai businesses on their decarbonization journey.

Mrs Panittra Vejjajiva, Head of Financial Institutions and ESG Solutions, UOB Thailand, said "The UOB Sustainability Compass is a practical tool developed to support SMEs in taking their first steps toward sustainability. With more than 1,600 businesses already engaged, we are proud to offer continued guidance, financial solutions, and strategic partnerships to help them stay resilient and competitive."

From voluntary action to legal mandates

Governments and regulators worldwide are shifting from voluntary cooperation to enforceable climate regulations. In Thailand, the upcoming Climate Change Act and the development of the Thailand Taxonomy will set clear frameworks for sustainable economic activities and environmental impact classifications.

Dr Teeradetch Tungsubutra, Partner at The Creagy Co., Ltd. and Executive Director of the Climate Finance Network Thailand (CFNT), said "These new mechanisms represent the rules of the future. Companies that understand and adapt to this new landscape will be better positioned to gain long-term competitive advantages."

As part of broader global alignment, Thai listed companies will also begin adopting IFRS S1 and S2 standards—international reporting frameworks that require disclosure of greenhouse gas emissions across Scopes 1, 2, and 3.

Scope 1 refers to direct emissions from an organization's activities or under its control. Scope 2 covers indirect emissions resulting from energy consumption, and Scope 3 includes other indirect emissions occurring in the supply chain, both upstream and downstream. Accurate greenhouse gas emission data collection is vital for reducing emissions and mitigating climate change risks.

According to Thailand's Securities and Exchange Commission (SEC), there will be a five-year window for Scope 3 data collection before full compliance becomes mandatory.

Why SMEs matter in the carbon equation

Mr Chayathorn Chanruangvanich, Partner at PwC Thailand, emphasised the critical role SMEs play in reducing Scope 3 emissions, which can account for over 99% of a large company's total emissions in some sectors. "SMEs must begin measuring and managing emissions now to remain compliant and integrated into the supply chains of larger companies," he said.

The forum encouraged SMEs to begin emissions data collection, assess baselines, and create action plans, ensuring readiness for regulatory changes and improving business efficiency.

Business leaders share real-world approaches

During the panel discussion, three Thai business leaders shared their practical approaches to sustainability:

Mr Panu Petra, Deputy Managing Director, Petra Group, detailed the company's initiatives—from building green-certified showrooms to installing solar rooftops and promoting employee-driven sustainability innovation. He said "UOB's Sustainability Compass offers a clear, accessible guide for businesses like ours to stay on track."

Mr Soros Yodmongkol, CEO of Unique Plastic Industry Plc, emphasised the importance of leadership and company-wide collaboration. "Our sustainability committee brings together every department to ensure we meet future regulatory expectations and manage rising operational costs effectively."

Mr Arthit Vechakij, Chairman, Neo Clean Energy Co., Ltd., highlighted the business case for investing in renewable energy. He said "Solar energy not only helps reduce emissions but offers strong returns. With tax incentive support from the Board of Investment and looming legislation, now is the time to act."

Financing and partnerships to power the transition

UOB continues to support sustainable business growth through its Smart City Sustainable Financing Framework, which funds projects in renewable energy, energy efficiency, water and waste management, and electric vehicle adoption.

Mrs Panittra said "Sustainability requires strong partnerships. Beyond financial support, we are building networks that connect SMEs with sustainability solution providers, encouraging knowledge exchange and innovation."

The bank will expand its sustainability innovation programme in the second half of 2025, fostering collaboration across sectors to accelerate Thailand's transition to a green economy.

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