The Stock Exchange of Thailand (SET) removes Energy Absolute pcl (EA) from the current SET ESG Ratings list, effective July 15, 2024. This decision follows the Securities and Exchange Commission (SEC)’s allegations against EA’s directors and executives to the Department of Special Investigation (DSI) and subsequent referral to the Anti-Money Laundering Office (AMLO) in connection with fraud cases.
The SEC has filed a criminal complaint against Somphote Ahunai and Amorn Sapthaweekul, EA’s directors and executives, along with Phornlert Techarattanopas, with the DSI for allegedly engaging in fraudulent activities to seek undue benefits for themselves and/or others. The case has also been forward to the AMLO.
Consequently,SET, through the Sustainable Investment (SET ESG Ratings) Committee, has decided to remove EA from the current SET ESG Ratings list.The decision was made because the company no longer meets the SET ESG Ratings qualification criteria, which stipulate that “either the company or its directors or executives must not be accuse or found guilty by authorities or relevant agencies in matters relate to corporate governance, social impact, or environmental impact.”
About SET ESG Ratings
According to the SET ESG Ratings Assessment Methodology, constituents are select from listed companies that voluntarily participate in the assessment and achieve a score of no less than 50 percent in each dimension (economic & governance, environmental, and social) of the sustainability assessment questionnaire. Companies must also meet SET’s qualification criteria, such as having a Corporate Governance Report (CGR) rating of at least three stars, either the company or its directors or executives must not be accuse or found guilty by authorities or relevant agencies on ESG matters, and not being post with CB, CC, CF, or CS warning signs.
SET conducts an annual review and update of its sustainability questionnaire to align with changing ESG contexts and trends at both international and local levels. Furthermore, SET closely monitors ESG controversial issues. In addition to requesting clarifications from listed companies, it has a process to gather news information from various sources to assess the severity of impacts from ESG controversies, mechanisms and capabilities of listed companies in managing ESG issues with due care, as well as measures established to prevent recurrences. If any list company fails to meet the criteria, it will be remove from the SET ESG Ratings.
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