a. Is there any statutory duty to implement net zero business strategies;

Currently, there is no statutory duty imposed on the private sector to implement net zero business strategies. Note that, as a national commitment, Thailand aims to achieve its net zero greenhouse gas emissions goal by 2065. However, there are voluntary mechanisms for net zero pathway certification and net zero certification for organisation, product, and event organising, to incentivise business implements climate action for achieving net zero.

b. Is the use of carbon offsets to meet net zero or carbon neutral commitments regulated;

Currently, the use of carbon offsets is not regulated under Thai law. Note that official certification for carbon offsetting or carbon neutral is available by participating in the Thailand Carbon Offsetting Program (T-COP), a voluntary framework organized by the Thailand Greenhouse Gas Management Organization (Public Organization) (“TGO”) whereby the participants may use carbon credits certified under Thailand Voluntary Emission Reduction Scheme (T-VER) to offset their greenhouse gas emissions and obtain certification from the TGO.

c. Have there been any test cases brought against companies for undeliverable net zero strategies;

Given that there is no statutory duty in relation to net zero strategies, no, there have not been any test cases.

d. Have there been any test cases brought against companies for their proportionate contribution to global levels of greenhouse gases (GHGs)?

No.

No, there are no obligations to demonstrate biodiversity net gain in order to receive project development consents.

Generally, companies are not obligated to report the amount of water they use.

The use of public water resources for certain activities, such as for industry; tourism; electricity generation; and waterworks, may be regulated under the Water Resources Act B.E. 2561 (2018). The regulated activities are subject to licensing requirements and several obligations, including preparation of a water management plan, which must include objectives for the water use and estimates of the amount of water to be used.

Based on the information that is publicly available, there have not been any test cases against companies for product liability or pollution of the environment relating to forever chemicals such as PFAS.

a. The law governing the waste hierarchy is addressed by the Environment international guide, in respect of ESG are any duties placed on producers, distributors or retailers of products to ensure levels of recycling and / or incorporate a proportionate amount of recycled materials in product construction?

Currently, there are no statutory duties imposed on producers, distributors or retailers of products to ensure levels of recycling or to incorporate a proportionate amount of recycled materials in products. The relevant governmental agencies have been working on draft law relating to sustainable management of packaging, which will include the waste hierarchy principle.

There are certain requirements regarding the standards and specifications of recycled plastic to be used for food containers.

b. Are any duties placed on producers, distributors or retailers of products to handle the end-of-life of the products placed on the market?

Currently, there are no statutory duties placed on producers, distributors or retailers of products to handle the end-of-life of products placed on the market.

Currently, there is no specific law or regulation in place to deter and punish plastic pollution.

However, the Draft Sustainable Packaging Management Act (“Draft Packaging Act“) is being developed to establish systematic and sustainable management of packaging waste. The Draft Packaging Act is supported by the extended producer responsibility (EPR) approach that extends the manufacturer’s responsibility to cover the entire product lifecycle, i.e., to specifically cover the management of packaging waste of products after their consumption, such as recycling and disposal. Under the Draft Packaging Act, the responsible business operators will be required to, among other things, comply with notifications prescribed by the Minister of Natural Resources and Environment prohibiting the manufacture and importation of certain types of single-use packaging which may have adverse impacts on the environment or health, and restrictions on the use of certain types of packaging.

Currently, there is no specific law governing EDI. The legal obligations placed on an employer in relation to equality, diversity and inclusion in the workplace in Thailand will be based mostly on labour laws. For example, the Labour Protection Act B.E. 2541 (1998) (the “Labour Protection Act”) prescribes that an employer must treat male and female employees equally in employment unless the description or nature of work prevents such treatment. However, this provision does not extend to other groups of employees, e.g. LGBTQ.

Under the Gender Equality Act, B.E. 2558 (2015), state agencies, private organizations or any person are prohibited from prescribing policies, rules, regulations, notifications, measures, projects or procedures, which appear to discriminate unfairly based on gender.

Currently, there is no Thai law requiring an employer to pay a wage at the rate related to the cost of living. The requirements related to wage payment and other statutory payment related to employment are generally prescribed under the Labour Protection Act, such as the minimum wage rates.

a. Are there any statutory duties to perform due diligence;

No. In Thailand, currently, there is no specific legislation which imposes obligations on Thai companies to conduct human rights due diligence in the supply chain.

However, companies that are listed on the Stock Exchange of Thailand are encouraged (but not obligated) to perform human rights due diligence to identify any potential adverse impact on human rights in the supply chain.

Thailand’s non-binding National Action Plan on Business and Human Rights (the “NAP”) also underscores the importance of human rights due diligence. The second NAP (for 2023-2027) includes a target to introduce a requirement for human rights due diligence as a pre-requisite for the development of major projects.

b. Have there been any test cases brought against companies?

Based on the information that is publicly available, there have not been any test cases brought against companies based solely on adverse impacts on human rights or the environment in the supply chain.

a. Are there any statutory duties to perform due diligence;

In Thailand, currently, there is no specific legislation which imposes obligations on Thai companies to conduct human rights due diligence with respect to adverse impact on human rights or the environment in host communities.

As discussed above, the second NAP (for 2023-2027) includes a target to introduce a requirement for human rights due diligence as a pre-requisite for the development of major projects.

b. Have there been any test cases brought against companies?

No.

Based on the information that is publicly available, we are not aware of any instances where the Advertising authorities have required the removal of any adverts for unsubstantiated sustainability claims.

Based on the information that is publicly available, we are not aware of any instances where authorities have taken action, fined or prosecuted any businesses for unsubstantiated sustainability claims relating to products or services.

Based on the information that is publicly available, we are not aware of any test cases brought against businesses for unsubstantiated enterprise wide sustainability commitments.

Currently, there are no statutory duties imposed on directors to oversee environmental and social impacts under Thai law.

Based on the information that is publicly available, we are not aware of any test cases brought against directors for presenting misleading information on environmental and social impact.

Currently, there are no legal requirements on financial institutions and large or listed corporates to report against sustainable investment.

The Bank of Thailand has developed Thailand Taxonomy to serve as a non-binding tool which provides clarity and guidance on which economic activities can be classified as “green” activities. The first version of the Thailand Taxonomy was launched in 2023 and covers the energy sector and transportation sector.

Currently, there is no statutory responsibility on businesses to report on managing climate related financial risks.

However, companies that are listed in the Stock Exchange of Thailand are encouraged (but not obligated) to report on their policies to manage climate related financial risks in its annual report.

Certain buildings and factories which consume electricity above the threshold prescribed by law are subject to the Energy Conservation Promotion Act B.E. 2535 (1992), which requires the owners of the regulated buildings or factories to prepare an annual report regarding energy management and energy conservation plan in the buildings and factories.

Currently, there is no statutory responsibility on businesses to report on EDI and / or gender pay gaps.

However, companies that are listed in the Stock Exchange of Thailand are encouraged (but not obligated) to report on EDI matters in its annual report.

No.

Thailand’s Climate Changed Bill is being developed, and is expected to come into effect

within one or two years. This Climate Change law will serve as Thailand’s main piece of legislation that lays out Thailand’s action plan for climate actions and, more importantly, imposes obligations and penalties for the private sector for the purposes of advancing climate change mitigation and adaptation efforts.

Below are some key elements in the bill to note.

• The bill aims to establish a central database on Thailand’s GHG (Greenhouse Gases) emissions, which will contain information on the release of GHG from human activities at the source; the amount of GHG removed or absorbed by nature and human activity; and the net GHG reduction amount.
• The bill provides for various mechanisms to achieve climate change mitigation targets through economic instruments, such as carbon credits; carbon tax; domestic emissions trading system (ETS); and carbon border adjustment mechanism, as well as mandatory compliance measures for business operators.
• Business operators may have obligations to perform GHG data collection and reporting. Specific business operators will be required submit their activity data to the relevant government agency. In addition, controlled juristic persons specified by ministerial regulations regarding ETS will be required to participate in the ETS and must submit their GHG emissions report with verification by the registered verifier.
• Further ministerial regulations will be issued detailing the reporting requirements for the private sector. The information that may potentially be required to be reported include, among others, information on energy and transportation, industrial processes, agriculture, forestry and land use, and waste management.
• The bill is expected to be submitted for the Cabinet approval in 2025 and to be enacted by 2026.

The effects of this Climate Change Bill on disputes or enforcement actions are to be further monitored, upon its enactment.