Thailand

Thailand does not have a specific law that directly targets greenwashing. However, existing Thai laws and regulations provide a framework to address related issues, such as the Consumer Protection Act B.E. 2522 (1979) which covers aspects of consumer protection, prohibits false or exaggerated advertising, which may include deceptive sustainability claims. The Thai Penal Code may also apply in cases of mis-advertising and fraud or misrepresentation related to greenwashing. Further, Trade Competition Act B.E. 2560 (2017) includes provisions against unfair trade practices, which can be interpreted to encompass false claims for environmental responsibilities.

In addition to these laws, the Securities and Exchange Act B.E. 2535 (1992) (SEA) and guidelines from the Securities and Exchange Commission of Thailand (SEC) and the Stock Exchange of Thailand (SET) also help ensure corporate transparency, particularly in environmental disclosures.

The SEA imposes disclosure obligations, such as ensuring that companies listed on SET should disclose truthful information which may influence investor decisions and prohibiting false or misleading statements in connection with the sale or purchase of securities (Section 240 of SEA and relevant guidelines from SEC and SET), enhance corporate governance practice through the Corporate Governance Code 2560 (CG Code), and mandate sustainability reporting through an annual public filing called Sustainable Reporting Form 56-1 and Sustainability Reporting Guidelines. While these guidelines are not legally binding laws, companies are expected to comply with these guidelines to maintain transparency and good governance. However, non-compliance can lead to penalties, reputational risks, or enforcement actions by regulators.

The SEA and guidelines from SEC and SET primarily govern public companies listed on SET and entities involved in securities trading. Although non-listed public companies and private companies are generally not subject to its provisions unless they engage in securities-related activities that fall under the SEA scope, they are still regulated under other broader legal frameworks like the Consumer Protection Act B.E. 2522 (1979), and Thai Penal Code.

Despite these legal frameworks, oversight of listed companies and securities-related activities remain under the purview of specialised financial regulators. The SEC and SET are entities that regulate Thailand’s financial markets and corporate governance.

• The SEC oversees securities laws, ensuring investor protection, enforcing disclosure requirements, and maintaining fair and transparent financial practices.
• The SET operates the country’s stock market, setting listing criteria, monitoring listed companies, and promoting sustainable investment.

 

Enforcement actions

While Thailand does not have a standalone statute that targets greenwashing in Thailand, multiple regulators have the authority to act against misleading environmental claims under existing laws as follows:

• The Office of the Consumer Protection Board (OCPB) has the authority to investigate and act against deceptive environmental marketing under the Consumer Protection Act B.E. 2522 (1979). The OCPB has the authority to request relevant documents or information and summon individuals for explanations in consumer rights cases, summon individuals to provide statements or submit relevant documents and evidence and issue orders to rectify such advertisements). Companies found guilty of deceptive advertising can face fines or legal action.
• The Securities and Exchange Commission (SEC) monitors ESG-related disclosures in listed companies. The SEC has the authority to investigate, request relevant documents or information and summon individuals to give statements, conduct dawn raids, seize or confiscate documents or evidence related to an offense under the SEA (Section 264). Listed companies found in violation may face civil penalties or criminal charges under the SEA.
• The Stock Exchange of Thailand (SET) enforces sustainability reporting requirements for listed companies, promoting transparent ESG disclosures and responsible investment practices. It can conduct investigation into any violation of its rules and determine what sanctions to impose based on its investigation findings.

 

Potential mitigation of greenwashing risks

Companies can mitigate the risk of making misleading sustainability claims by ensuring their business operations comply with existing regulations and adopt best practices, including:

1. Prioritising transparency, accuracy, and regulatory compliance. Ensuring that all documents with ESG reports are based on verifiable data to prevent misleading claims.
2. Companies may align their disclosures with global standards and Thailand’s SEC and SET guidelines to maintain integrity in sustainability reporting.
3. Obtaining third-party certifications from independent organisations, such as those specialising in environmental audits. Their verification to validate sustainability data and environmental claims can further enhance trust and prevent accusations of greenwashing.
4. Ensuring marketing and communication strategies accurately reflect environmental impact, avoiding exaggerated claims that could mislead consumers.
5. Avoid using vague or unqualified claims such as “green,” “eco,” or “sustainable”, unless they are clearly defined and supported by evidence.
6. Conducting internal audits and providing employee training to reinforce ethical business operations.

The SET published the Sustainability Reporting Guide for Listed Companies, accompanied by eight industry-specific volumes tailored to the SET and the Market for Alternative Investment (MAI). Listed companies should align their disclosures with these guidelines to avoid risks of misleading environmental claims. Additionally, non-listed companies may adopt SET’s guidelines to strengthen investor and stakeholder trust, demonstrate genuine sustainability commitments to avoid greenwashing risks, and enhance corporate responsibility in Thailand’s evolving business landscape.