consumer preference for sustainable products and increasing public demand for corporates to demonstrate social responsibility can negatively impact businesses should their business practices fail to meet public expectations. it is therefore important that financial institutions understand changing clients ’ business practices and public expectations to be able to fully assess their exposure to risks. it is also to be noted that as intermediary of public money, financial institutions have the important role of meeting public expectations to maintain the credibility and trust of the financial system. 5 / 7 ladies and gentlemen, i would like to reiterate that financial institutions cannot underestimate the risks that come from various aspects of esg, as these risks can impair the long - run sustainability of the financial institutions themselves. to manage and reduce these risks, it is important that financial institutions internalize sustainability considerations and properly price in potential risks into different aspects of their operations. this starts with commitment by directors, top management, and senior executives to create a culture that embraces sustainability. this could be achieved through the setting of long - term and strategic priorities to address sustainability issues ; establishing new layer of internal control to limit negative externalities of related activities ; and expanding the scope of risk assessment and internal audit to account for potential risks from esg - related issues. for thailand, it is encouraging to see many financial institutions beginning to incorporate sustainability practices and internalize esg risks. some financial institutions have explored different ways to assess and limit esg impacts ; some have improved disclosure practices ; and some have adopted global sustainability standards. a few of our financial institutions have also been included in the dow jones sustainability indices. meanwhile, the bank of thailand and other financial regulators have worked hand - in - hand to promote awareness, build industry ’ s capacity and foster commitment to incorporating sustainability practices into the culture of our financial industry. 6 / 7 ladies and gentlemen, the bangkok sustainable banking forum 2019 presents another exciting opportunity for the thai financial sector to learn from the experiences of our peers and partners who have dealt with the challenges and adverse implications of underpricing esg risks ; and see how financial institutions have used different approaches to internalize these risks. we will also learn of different countries ’ experiences on advancing esg agendas and the challenges that the thai financial sector must overcome to make a leap in our journey towards sustainability. to end my remarks, i would like to take this opportunity to thank speakers, panelists, and the audience for your participation. i would also like to thank our organizing partners and the bank of thailand staff

real estate market. as a result, this prompted the bank of thailand to step up our macro - prudential regulations on mortgage lending. 3 / 7 overall, these are just a few examples of how financial institutions ’ own actions can contribute to the worsening of social and environmental problems, impair their credibility, and result in unintended financial losses. if there had been proper internal controls and incentives aligned, wells fargo ’ s customers would not have been subject to fraud. had financial institutions assessed the potential environmental impacts of companies they were financing, credit decisions may have had a different outcome, limiting the extent of damage on surrounding environment and on public ’ s air quality in singapore. with better credit culture and internal controls, thai financial institutions could help limit the worsening of household debt and lower exposure to credit risks of their mortgage portfolios. while in some adverse incidents financial institutions managed to avoid large financial losses or were able to take swift actions to address them, it is clear that these incidents, if left unattended by financial institutions themselves or regulators, would have resulted in continued deterioration of public trust and in the long - term potentially large financial losses. ultimately, these incidents highlight that not properly taking sustainability risks into consideration could result in serious risks, both financial and non - financial risks, that are large enough to impact the viability of the financial institutions themselves. in other words, sustainability risks have been underpriced or underestimated in business practices of financial institutions. ladies and gentlemen, let me highlight on risks, especially credit risks, that financial institutions could face from different esg dimensions. 4 / 7 on - going global warming can seriously impact future outputs, productivity, or the business continuity of borrowers, reducing their capabilities to generate income and repay debt. persistent social issues like widening social gaps can fuel social distrust and trigger public unrest and demonstrations, resulting in economic losses. malpractices by borrowers that have negative implications on environment and society may result in potential business failures, especially in today ’ s society where information can be quickly disseminated through online and social media channels. meanwhile, poor governance by financial institutions themselves can result in misallocation of funds and concentration of risks. all of these are examples of how different esg dimensions can heighten credit risks for financial institutions. moreover, financial institutions may be subject to credit and reputational risks coming from their corporate clients if their clients fail to adapt business models to meet heightened standards and changing environment. fast changes in