A Letter from The Government Affairs Director’s Desk

Jen Meckhayai is AMCHAM’s Government Affairs Director.

Dear Members,

Environmental, Social, and Governance (ESG) principles have become increasingly important to regulators, investors, and businesses across all sectors. Many large companies prioritize ESG to establish their sustainable policies and incorporate ESG into their investment portfolio. Recently, the Stock Exchange Thailand published a guideline for Sustainability Disclosure and Reporting, and the Securities and Exchange Commission also has a guideline for Asset Managers regarding Climaterelated Risk Management.

Earlier this year, the government demonstrated its commitment to sustainable development by introducing two new draft regulations: (1) the draft Sustainable Packaging Management Promotion Act—also known as Extended Producer Responsibility (EPR), and (2) the draft Circular Economy Promotion Act (CE).

Based on our insight, Circular Economy (CE) is an overarching principle that governs EPR. Normally, CE should be enacted before introducing EPR as the principal act. However, lawmakers pushed through both acts simultaneously due to time constraints. These new acts share some overlaps in terms of defining a responsibility upstream, while CE was written more broadly to emphasize the industrial involvement in the process of waste management.

The Extended Producer Responsibility Policy will shift responsibility upstream toward the producer to take care of waste management. It aims to incentivize producers to consider environmental factors when designing their products and packaging.

The Draft Circular Economy Promotion Act aims to promote and develop the circular economy system to conserve resources, protect human health and the environment, and facilitate waste management services. This act will affect people who develop, produce, carry out processes, treat, or distribute products. These stakeholders must consider environmental factors when designing their products to minimize waste.

Overall, it is encouraging to see the government taking steps to hold producers accountable for their product designs and involving stakeholders in waste management efforts. However, some regulations need clarification, and our members have some questions. The AMCHAM ESG Council is currently preparing to advocate for the draft Sustainable Packaging Management Promotion Act. If this act may impact your business and you wish to share your feedback, please reach out to our Government Affairs team.

Sincerely,

Jen Meckhayai