If anyone has a wish, we would want to be rich. Anyway, nobody wants unstable money and assets but sustainable wealth. This article presents a strategy of stock investment which is now a new trend in Asia including Thailand. This strategy is not only to invest in a company with a good foundation and growth potential but also with awareness in Environment, Social and Governance (ESG), so that investors will be certain that their investment can grow sustainably in long term.
 

How to run a sustainable business

Sustainable business means running a business with an objective to grow profits while developing ESG concept which includes 3 following issues:

1. Environment

Means environmental management which focuses on using resources effectively and preserving the natural environment affected by the company operation.

2. Social

Means social management by managing human resources ethically and equally, taking care of employees’ safety and hygiene, and creating a good relationship with nearby communities.

3.Governance

means managing good governance through righteous operation policy, acting against corruption, operating with transparency, and protecting the benefits of concerned parties of the company. 

Why invest in Thailand Sustainability Investment (THSI)

Many studies show the connection between the operation of ESG and Market Risk and found that the company with good ESG performance have the advantage to reach the source of funds, has lower risk and cost of capital than the company that pays no attention to ESG. Even though the stock price of the companies that care for sustainability may fluctuate by the market environment but their investment will less fluctuate in long term. 

Besides, the concept of sustainable investment has been supported by concerned parties, especially the government and Regulatory Agencies who will encourage more sustainable investment. For example, the enlistment of investment management by the government sector to include ESG factor as criteria in investment before announcing regulations or suggestions to investors. 

At present, investors are more interested in the companies that have operated the business based on the ESG concept as this concept is another indicator that reflects the business stability in the long term. More, an investment in a sustainable project will create more profits as the project carries effective risk management, and helps reduce a fluctuation of investment port that generates more consistent profits.