A Pragmatic Path Through the Perfect Storm

Navigating an increasingly turbulent global landscape marked by geopolitical conflict, economic uncertainty, and a rapidly accelerating climate crisis, Thailand’s leading corporate and financial minds have issued a powerful, pragmatic call to action, urging regional cooperation and collective will to forge a sustainable future.

The ESG Symposium 2025, held under the starkly relevant theme of “Green Breakthrough Amid the Perfect Storm,” brought together a formidable roster of global and regional leaders to address what Thammasak Sethaudom, President and CEO of SCG, described as one of the most complex and uncertain global landscapes in modern history.

The consensus; however, was not one of despair but of determined realism: ASEAN’s path to sustainability must be distinct, homegrown, and deeply collaborative.

For Mr Thammasak, the symposium is a testament to SCG’s long-standing commitment to sustainability, which began with the SD Symposium in 2010.

Over the years, the event has evolved to encompass governance and equality, becoming a cornerstone platform aimed at accelerating a collective journey to a low-carbon society.

“The question we ask is no longer how to react, but how we could secure a liveable future for the next generation,” Mr Thammasak said in his opening address.

He highlighted the urgency posed by a warming planet, which he noted “does not wait” for geopolitical and economic tensions to subside.

For SCG, these challenges are not just theoretical but are tackled through tangible, collaborative efforts.

He proudly detailed three key milestones achieved since the last symposium.

The first was the advancement of the Saraburi Sandbox, a pioneering Public-Private-People Partnerships Model to transform the province into a low-carbon industrial city.

The initiative has since gained international recognition, becoming Thailand’s first cluster and the third in ASEAN to join the World Economic Forum’s Transitioning Industrial Clusters Creative.

Secondly, SCG scaled up its “Go Together” programme, which has now empowered over 1,300 small and medium-sized enterprises (SMEs) nationwide.

The programme strengthens their capacity to transition to a green economy by providing access to efficiency technology, helping them reduce production costs and supporting sustainable growth.

A further “Net Zero Accelerator Program 2025” was launched in cooperation with 12 partners to enhance the competitiveness of SMEs and public agencies in achieving their net-zero targets.

“These initiatives demonstrate what is possible with collective will,” Mr. Thammasak stated, before broadening his appeal.

“That’s only part of the effort to accelerate the green breakthrough amid the perfect storm of our time. We must foster even broader and faster collaboration to safeguard our planet and secure a better future for the next generation.”

Echoing this call for a unique, regional approach was Dr. Sethaput Suthiwartnarueput, Governor of the Bank of Thailand, who delivered a compelling perspective on “ASEAN’s Path to Resiliency.”

His speech served as a crucial reality check, meticulously detailing why ASEAN’s transition to sustainability must, and will, differ from that of advanced economies (AEs).

Dr. Sethaput began by painting a clear picture of the new global landscape, characterized by rising geopolitics and waning multilateralism.

Against this backdrop, he cautioned against what he called “quick fixes,” mercantilism, and populism, instead advocating for deeper, market-driven regional integration supported by facilitating infrastructure.

The core of his argument rested on the vast disparity in “initial conditions” between ASEAN and the EU. He presented a series of sobering statistics:

While only 33% of the EU’s electricity comes from fossil fuels, the figure for ASEAN is a staggering 74%.

SMEs and the self-employed make up a far larger proportion of the workforce in ASEAN. For example, in Thailand, 99.5% of all companies are SMEs, employing 70% of the country’s workforce. The self-employed population in Thailand is 48% of the total employed, compared to just 18% in the EU.

The average nominal GDP per capita in ASEAN is roughly $5,749, a fraction of the EU’s $43,145, leading to lower incomes and weaker social safety nets.

Institutional setups are weaker, as indicated by indices for rule of law and government effectiveness, where many ASEAN nations lag far behind their European counterparts.

Despite these disadvantages, ASEAN faces higher vulnerability, with 77% of its population living in coastal zones and its economy heavily reliant on climate-sensitive sectors like agriculture.

These stark differences, Dr. Sethaput argued, necessitate a different transition path.

It must be a “lower disruption path” with a greater emphasis on adaptation rather than purely mitigation-focused strategies.

The focus, he stressed, should be on becoming “less brown” as much as it is on becoming truly “green.”

“Stay pragmatic! Don’t let the perfect be the enemy of the good,” Dr. Sethaput urged, outlining the need for a government-led, “whole of country” approach that cannot rely solely on long-term infrastructure like disclosure and taxonomy.

He then detailed the practical steps being taken in Thailand, which could serve as a model for the region.

These include the development of a Thailand Taxonomy for six high-emitting sectors, with the energy and transportation phases already launched, and a pilot stress test for flood risk.

Crucially, he pointed to a successful initiative where eight banks developed products and services to support the “brown to less brown” transition for industries like manufacturing and agriculture, reaching 96 billion baht of a 100 billion baht target.

The governor’s ultimate lesson learned was that SMEs require more than just financing; they need a “total solution with collective effort from big corporations and government” to transform.

This insight perfectly dovetailed with the multi-pathway strategy presented by Mr. Koji Sato, President and CEO of Toyota Motor Corporation, who brought a major corporate voice to the discussion.

Mr. Sato advocated for a strategy that is not limited to a single solution like electric vehicles (EVs). Instead, he championed a “multi-pathway” approach encompassing hybrid-electric, plug-in hybrid, fuel-cell, and hydrogen-powered vehicles.

He argued that this approach is more realistic and socially responsible, as it allows for a gradual transition tailored to different regions’ energy infrastructures and consumer needs, rather than forcing a one-size-fits-all solution.

“At Toyota, our philosophy is to leave no one behind, ensuring happiness for all,” Mr. Sato explained, articulating his company’s commitment to providing diverse solutions to ensure accessibility and affordability.

“We did not rush into EVs and focused on hybrid to reflect customers’ demand. We believe the future can be created together, not alone.”

Further broadening the conversation were a series of other distinguished speakers. Mr. David McLachlan-Karr, Regional Director of the UN Development Coordination Office (DCO), Asia-Pacific, spoke on the need for a “just transition.”

His perspective centred on ensuring that economic shifts related to climate change are fair and inclusive, highlighting the importance of international cooperation and aligning development and climate finance to protect vulnerable communities and create green jobs.

From MIT, Dr. Sai Ravela, a Principal Research Scientist in Earth, Atmospheric and Planetary Sciences, and Prof. Miho Mazereeuw, Director of the MIT Climate Mission and Urban Risk Lab, provided the scientific and urban planning perspectives.

Dr. Ravela focused on the need for “risk-smart” systems to predict and adapt to a world of rising climate extremes, while Prof. Mazereeuw advocated for a “participatory path to climate adaptation,” stressing the importance of engaging local communities in designing solutions for cities.

The symposium’s collective message was clear and resounding.

While the perfect storm of global crises rages, a “green breakthrough” is not only necessary but achievable.

It will not, however, come from a single silver-bullet solution or a one-size-fits-all approach. Instead, it will be the result of pragmatic, collaborative, and inclusive action–a uniquely ASEAN path forward, guided by the collective will of its leaders, corporations, and communities.

Source – Bangkok News