ESG Focused Portfolio

GPF-ESG Standard Criteria

A. Background

As an institutional investor managing savings of government officials, who are GPF members, and public savings totaling over 800 billion baht, GPF is well aware that its key role is not restricted only to pursuing the highest returns on investment for the members and the government, but it must also act as a responsible investor who, through effective monitoring, contributes to sustainable growth of the country in all aspects: economically, socially, and environmentally. All of these resonate GPF’s intention to become the leader in Environmental, Social, and Governance (ESG) Investment and Initiatives in Thailand as previously declared.

GPF allocates part of its fund to constitute an index fund which references an ESG index. The fund, which is called ESG-Focused Portfolio, tracks the Thailand Sustainability Index (THSI) of the Stock Exchange of Thailand. The fund may invest in a business only if it is listed in the SET100 and THSI and also passes the GPF-ESG Standard Criteria. This is to ensure that the businesses in which we invest are regarded as Responsible Business Owners (RBOs) whose operations satisfy 4 criteria as follows.

B. GPF-ESG Standard Criteria

Criterion 1: ESG Intention

The business has specified and announced its intention to be a Responsible Business Owner. It continually supports and contributes to sustainable economic, social, and environmental development under the principles of good governance.
The business should have in place proactive strategies to encourage sustainable operations of the business and prevent any problem that may hinder its role as a Responsible Business Owner (RBO).
The business has specified reactive strategies in the case that the business is obstructed from being a Responsible Business Owner. Measures may include informing the stakeholders of key information and relevant events, immediate plans of actions in response to the problems, planning to alleviate the damages as well as compensate the affected parties, and having in place problem analysis framework in order to develop preventive strategies against repeated events.
The business has secured a good result of evaluation on ESG from credible external evaluators; for example, Thailand Sustainability Investment evaluation by the Stock Exchange of Thailand.

Criterion 2: Business Criteria

The business is operated ethically. It takes into consideration the human right practices and treats stakeholders, such as employees, customers, partners, and other citizens, fairly and non-discriminatively regardless of their race, religious belief, sexual status, social status, and health conditions.
No business with clearly adverse effects on the economy, society, and the environment, such as arms and ammunition trade, gambling, prostitution, businesses in indecent exposure, human violence, and animal cruelty, is conducted. In addition, its main source of revenue shall not be from alcoholic beverages or tobacco.
The business has established measures and guidelines of doing business that prevent conflicts of interests and include appropriate resolutions in the event that conflicts of interests do occur.
The business gives fair and just treatments to all investors and shareholders’, without any restrictions or unequal treatments to small shareholders.
The business efficiently utilizes resources, incorporates risk evaluation in the operations, specifies measures to control and prevent environmental impacts of the business, and seeks innovations or activities to support the conservation of natural resources and environment.

Criterion 3: Transparency Criteria

The business discloses information regarding its operations as a Responsible Business Owner, including its financial reports, industry overview, and business foresight. This must be done sufficiently both for the investors and the public within an appropriate timeframe.
The business lets the investors, shareholders, and stakeholders have access to information and contact channels in order to express their opinions or ask for clarifications.

Criterion 4: Good Governance

The business has a committee with appropriate structure, size, and composition. The committee consists of members who are adequately knowledgeable to operate as a Responsible Business Owner.
The business’ committee consists of an appropriate amount of independent members, in accordance to the standards of and accepted by Thai Institute of Directors (IOD) or other well-known and respected institutions.
The committee immediately and appropriately acts to resolve any occurrences of conflicts of interests.
The business is cooperative with relevant network organizations that support corruption-free business conduct, such as by announcing its intention to be part of the Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC)
Committee members, executives, and shareholders who are in management must not be, after investigation, performing any illegal offenses related to corruption, misappropriation of property, bribery, or any other offenses that may undermine the business.

C. Categorization of securities for investing

The GPF utilizes the result of the GPF-ESG Standard Criteria evaluation, in order to categorize the securities into 3 tiers, as follows:

Tier 1: Positive List

Means that the security of the business well meets or exceeds the GPF-ESG Standard Criteria and tends to continually do so in the future. Those in tier 1 are highly likely to be selected into the ESG-Focused Portfolio by GPF.

Tier 2

Means that the security is evaluated by GPF to meet the GPF-ESG Standard using only key criteria, while less important conditions may not be met. In addition, the business is likely to develop or improve its operations to remain a Responsible Business Owner. Those in tier 2 are either less likely or unlikely to be selected into the ESG-Focused Portfolio by GPF.

Tier 3: Negative List

Means that the security is evaluated by GPF to not meet the GPF-ESG Standard using key criteria and the business is unlikely to improve its operations to resolve the issues preventing them from being a Responsible Business Owner. Those in tier 3 will not be selected into the ESG-Focused Portfolio by the GPF.

List of companies that pass the criteria

List of securities passing the Tier 1 evaluation

Securities Short Name		บริษัท	Company
1	ADVANC	บมจ. แอดวานซ์ อินโฟร์ เซอร์วิส	Advanced Info Service Plc.
2	AMATA	บมจ. อมตะ คอร์ปอเรชัน	Amata Corporation Plc.
3	AOT	บมจ. ท่าอากาศยานไทย	Airports of Thailand Plc.
4	BANPU	บมจ. บ้านปู	Banpu Plc.
5	BBL	บมจ. ธนาคารกรุงเทพ	Bangkok Bank Plc.
6	BCP	บมจ. บางจาก คอร์ปอเรชั่น	Bangchak Corporation Plc.
7	BGRIM	บมจ. บี.กริม เพาเวอร์	B.Grimm Power Plc.
8	BPP	บมจ. บ้านปู เพาเวอร์	Banpu Power Plc.
9	CENTEL	บมจ. โรงแรมเซ็นทรัลพลาซา	Central Plaza Hotel Plc.
10	CPF	บมจ. เจริญโภคภัณฑ์อาหาร	Charoen Pokphand Foods Plc.
11	CPN	บมจ. เซ็นทรัลพัฒนา	Central Pattana Plc.
12	DELTA	บมจ. เดลต้า อีเลคโทรนิคส์ (ประเทศไทย)	Delta Electronics (Thailand) Plc.
13	DTAC	บมจ. โทเทิ่ล แอ็คเซ็ส คอมมูนิเคชั่น	Total Access Communication Plc.
14	EGCO	บมจ. ผลิตไฟฟ้า	Electricity Generating Plc.
15	GFPT	บมจ. จีเอฟพีที	GFPT Plc.
16	HMPRO	บมจ. โฮม โปรดักส์ เซ็นเตอร์	Home Product Center Plc.
17	INTUCH	บมจ. อินทัช โฮลดิ้งส์	Intouch Holdings Plc.
18	IRPC	บมจ. ไออาร์พีซี	IRPC Plc.
19	IVL	บมจ. อินโดรามา เวนเจอร์ส	Indorama Ventures Plc.
20	KBANK	บมจ. ธนาคารกสิกรไทย	Kasikornbank Plc.
21	KKP	บมจ. ธนาคารเกียรตินาคิน	Kiatnakin Bank Plc.
22	MINT	บมจ. ไมเนอร์ อินเตอร์เนชั่นแนล	Minor International Plc.
23	PSH	บมจ. พฤกษา โฮลดิ้ง	Pruksa Holding Plc.
24	PTG	บมจ. พีทีจี เอ็นเนอยี	PTG Energy Plc.
25	PTT	บมจ. ปตท.	PTT Plc.
26	PTTEP	บมจ. ปตท. สำรวจและผลิตปิโตรเลียม	PTT Exploration and Production Plc.
27	PTTGC	บมจ. พีทีที โกลบอล เคมิคอล	PTT Global Chemical Plc.
28	RATCH	บมจ. ผลิตไฟฟ้าราชบุรีโฮลดิ้ง	Ratchaburi Electricity Generating Holding Plc.
29	SCB	บมจ. ธนาคารไทยพาณิชย์	Siam Commercial Bank Plc.
30	SCC	บมจ. ปูนซิเมนต์ไทย	The Siam Cement Plc.
31	SPALI	บมจ. ศุภาลัย	Supalai Plc.
32	STA	บมจ. ศรีตรังแอโกรอินดัสทรี	Sri Trang Agro-Industry Plc.
33	TASCO	บมจ. ทิปโก้แอสฟัลท์	Tipco Asphalt Plc.
34	TISCO	บมจ. ทิสโก้ไฟแนนเชียลกรุ๊ป	Tisco Financial Group Plc.
35	TMB	บมจ. ธนาคารทหารไทย	TMB Bank Plc.
36	TOP	บมจ. ไทยออยล์	Thai Oil Plc.
37	TVO	บมจ. น้ำมันพืชไทย	Thai Vegetable Oil Plc.
38	TRUE	บมจ. ทรู คอร์ปอเรชั่น	True Corporation Plc.