Blog
ESG and Resilience: Lessons from Earthquakes in Thailand
April 1, 2025
The recent earthquakes in Thailand serve as a stark reminder that the risks posed by natural disasters are no longer remote. While Thailand is not situated directly on a tectonic plate boundary, data from the Meteorological Department indicates that over the past 10 years, there have been more than 100 earthquakes with a magnitude of 4.0 or higher, particularly in the northern and western regions, which have active fault lines.
Amid environmental changes and the uncertainty of disasters, the concepts of ESG (Environmental, Social, Governance) and resilience are becoming essential for businesses, real estate and the government as they work to develop safe and sustainable cities.
1. Environmental: Sustainable and earthquake-resistant construction
Currently, construction standards that prioritize environmental impact and earthquake safety are not widely implemented in Thailand. Although Bangkok has more than 200 buildings that meet LEED (Leadership in Energy and Environmental Design) and TREES (Thai's Rating of Energy and Environmental Sustainability) standards, this is still a small fraction compared to the thousands of commercial buildings in the city.
Standards that should be adopted to enhance sustainability and safety include:
• Designing structures to withstand seismic forces according to international standards.
• Using flexible and strong construction materials to minimize damage.
• Developing sustainable energy systems to reduce environmental impact.
Japan, a country frequently affected by earthquakes, has developed building structure technologies that can withstand seismic forces up to 9.0 on the Richter scale, effectively reducing fatalities and building damage.
2. Social: Public safety and high-rise building preparedness
A key lesson from earthquakes in Thailand is the public's lack of knowledge and preparedness. Data shows that more than 70% of buildings in Bangkok were constructed before the latest earthquake building codes took effect, meaning many may not adequately withstand seismic forces.
Key areas of focus:
• Early warning systems to alert the public before earthquakes.
• High-rise building evacuation drills, as less than 30% of buildings in Bangkok currently conduct regular earthquake drills.
• Designing public spaces as safe assembly points.
Japan and the United States (California) have earthquake warning systems that provide alerts within seconds before an earthquake, reducing injuries and fatalities by up to 50%.
3. Governance: Safety policies and measures
While Thailand's building control laws include earthquake measures, enforcement and inspection have significant gaps. Many buildings, especially older ones, are not designed to withstand seismic forces effectively.
Additional measures to consider include:
• Regular structural inspections, especially for high-rise buildings over 20 years old.
• Tax incentives for buildings upgraded to withstand earthquakes.
• Mandating building owners to have disaster preparedness plans and warning systems.
Global investors are increasingly prioritizing ESG. Data from Morgan Stanley shows that real estate funds focused on ESG have higher returns, averaging 6% per year, indicating that safe and sustainable buildings have long-term value.
Earthquakes are just one of the challenges Thailand faces. Others include floods, rising sea levels and increasingly intense heatwaves. Urban development in Thailand must focus not only on economic growth but also on safe and sustainable growth following ESG principles.
• Businesses and real estate must invest in earthquake-resistant building standards.
• The government must enhance law enforcement and develop warning systems.
• The public must be knowledgeable and prepared for earthquakes.
Resilience is not just about recovering from disasters; it's about designing cities to be prepared before they occur.
It's time for Thailand to build a sustainable future, not just for business, but for everyone's safety.
For more information on ESG, CBRE Thailand is ready to provide data and expert advice on building safety.
The article is written by Phatsareephak Srikanchananon, Head of Property Management, CBRE Thailand.
Amid environmental changes and the uncertainty of disasters, the concepts of ESG (Environmental, Social, Governance) and resilience are becoming essential for businesses, real estate and the government as they work to develop safe and sustainable cities.
ESG and Developing Earthquake-Resistant Cities
1. Environmental: Sustainable and earthquake-resistant construction
Currently, construction standards that prioritize environmental impact and earthquake safety are not widely implemented in Thailand. Although Bangkok has more than 200 buildings that meet LEED (Leadership in Energy and Environmental Design) and TREES (Thai's Rating of Energy and Environmental Sustainability) standards, this is still a small fraction compared to the thousands of commercial buildings in the city.
Standards that should be adopted to enhance sustainability and safety include:
• Designing structures to withstand seismic forces according to international standards.
• Using flexible and strong construction materials to minimize damage.
• Developing sustainable energy systems to reduce environmental impact.
Japan, a country frequently affected by earthquakes, has developed building structure technologies that can withstand seismic forces up to 9.0 on the Richter scale, effectively reducing fatalities and building damage.
2. Social: Public safety and high-rise building preparedness
A key lesson from earthquakes in Thailand is the public's lack of knowledge and preparedness. Data shows that more than 70% of buildings in Bangkok were constructed before the latest earthquake building codes took effect, meaning many may not adequately withstand seismic forces.
Key areas of focus:
• Early warning systems to alert the public before earthquakes.
• High-rise building evacuation drills, as less than 30% of buildings in Bangkok currently conduct regular earthquake drills.
• Designing public spaces as safe assembly points.
Japan and the United States (California) have earthquake warning systems that provide alerts within seconds before an earthquake, reducing injuries and fatalities by up to 50%.
3. Governance: Safety policies and measures
While Thailand's building control laws include earthquake measures, enforcement and inspection have significant gaps. Many buildings, especially older ones, are not designed to withstand seismic forces effectively.
Additional measures to consider include:
• Regular structural inspections, especially for high-rise buildings over 20 years old.
• Tax incentives for buildings upgraded to withstand earthquakes.
• Mandating building owners to have disaster preparedness plans and warning systems.
Global investors are increasingly prioritizing ESG. Data from Morgan Stanley shows that real estate funds focused on ESG have higher returns, averaging 6% per year, indicating that safe and sustainable buildings have long-term value.
The Future of Thai Cities: Sustainable and Safe Growth
Earthquakes are just one of the challenges Thailand faces. Others include floods, rising sea levels and increasingly intense heatwaves. Urban development in Thailand must focus not only on economic growth but also on safe and sustainable growth following ESG principles.
• Businesses and real estate must invest in earthquake-resistant building standards.
• The government must enhance law enforcement and develop warning systems.
• The public must be knowledgeable and prepared for earthquakes.
Resilience is not just about recovering from disasters; it's about designing cities to be prepared before they occur.
It's time for Thailand to build a sustainable future, not just for business, but for everyone's safety.
For more information on ESG, CBRE Thailand is ready to provide data and expert advice on building safety.
The article is written by Phatsareephak Srikanchananon, Head of Property Management, CBRE Thailand.