Insurance sector goes green

Thai insurers increasingly realise the importance of integrating ESG into their corporate strategies, writes Nuntawun Polkuamdee

- Nuntawun Polkuamdee

Thai firms now understand that sustainability deserves a place in both operations and portfolios.

At its core, the insurance business is about managing risks, including those related to environmental, social and governance (ESG) factors.

As sustainability requirements change the business landscape, insurers are increasingly realising the importance of integrating the ESG agenda into their corporate strategies.

To address growing awareness of climate change risks and heightened expectations from regulators, insurers are directing larger portions of their portfolios towards low-carbon businesses, renewable energy projects and sustainable infrastructure.

This shift underscores the industry's recognition that sustainability is no longer optional, but rather a fundamental driver of resilience and competitiveness. ESG-focused investments, particularly green bonds, are rapidly gaining momentum in the insurance sector as companies seek to balance financial performance with long-term sustainable growth.

"Government policy has been supportive, encouraging companies to integrate ESG into their investment strategies," said Somporn Suebthawilkul, president of the Thai General Insurance Association.

Every year, the association places ESG at the centre of its agenda, and insurers are launching more products that support green energy and reduce reliance on fossil fuels, he said.

Mr Somporn, also chief executive of Dhipaya Group Holdings, said insurers play a dual role of responsible investors and as organisations embedding ESG principles in their operations.

At Dhipaya Insurance, this includes measures to conserve energy, manage environmental impact within the organisation and channel capital into businesses that prioritise sustainability.