Demonstrated SCG’s Sustainable Development Strategy of ESG 4 Plus

2:19:10 PM | 4/13/2022

SCG has been ceremoniously named amongst the top 50 Outstanding FDI companies in Vietnam in 2021-2022 for the first time at the 21st Golden Dragon Awards, organized by the Ministry of Foreign Affairs, VnEconomy - Vietnam Economic Times (VET).

This is the formal recognition for the corporate’s sustainable development strategy as well as ceaseless efforts towards the economic recovery and community development despite global challenges such as Covid-19 and climate change. After a tumultuous year, to be honored in top 50 Outstanding FDI Companies in Vietnam is a significant milestone of SCG in the journey of contributing to the green growth and sustainable development of Vietnam.

With the theme of “Resource Convergence for Promoting Green Growth and Sustainable Development”, the 21st Golden Dragon Awards aims to promote the effectiveness of international cooperation and support and push the implementation of development goals and international commitments, for Vietnam’s prosperous development. The award honored FDIs that are pioneers in innovation, creativity, green transformation, and digital technology application in production, business, and corporate governance. Specifically, in the context of “new normal”, they are required to have clear policies and innovative plans to promote green growth and sustainable development as well as to proactively respond to Covid-19, natural disasters, and climate change.

Responding to the calls for green transition and sustainable growth from the Vietnamese government, SCG remains persistent in its commitment to sustainable development. Despite the complicated developments of inflation and pandemic in the past year, besides impressive business results, SCG has impressed with its business development policies associated with green growth and social responsibility, such as: adjusting policies, materials, and packaging in line with the trend of environmentally friendly development, using clean energy sources, innovating their products and reduce greenhouse emissions in the production process. In addition, SCG is one of the pioneering enterprises that has committed to invest more than 47 trillion VND by 2030 in improving production processes, developing low-carbon production and business industries, with the expectation of making a positive contribution to the commitment to Net Zero emissions by 2050.

“The first time to be named among the top 50 Outstanding FDI Companies in Vietnam is an honor for all of us at SCG. During almost 30 years in Vietnam, SCG has followed the sustainable development strategy which allows us to continuously contribute to the country. The recent challenges from Covid-19 pandemic, natural disasters, and climate change require SCG to flexibly transform our business model and grasp global trends to be able to overcome difficulties, create shared values and betterment for the communities. One of the fundamental transformations we have made is the ESG 4 Plus framework we rolled out from 2021. We believe this strategy as the internationally acclaimed business operation standard. Not only did help us tackle challenges, but the framework is also core for our operations to show responsibility for society, community, and the environment.” said Mr. Piyapong Jriyasetapong - General Director of SCG Vietnam, subsidiaries of SCG.

The ESG 4 Plus is raised to “Set Net Zero – Go Green – Reduce Inequality – Embrace Collaboration” while harnessing good governance operations. With regards to “Set Net Zero” and “Go Green”, SCG aims to enhance the production process and propel low-carbon businesses to achieve the 20 per cent greenhouse gas emissions reduction target by 2030 and to accomplish Net Zero emission by 2050. Take an example, SCG and Long Son Petrochemicals Co., Ltd (LSP), a subsidiary of SCG Chemicals have implemented the Waste Segregation at source project, which was first piloted at Long Son 1 and 2 Primary Schools in Ba Ria - Vung Tau province since 2020. The pilot phase aimed to educate young children about environmental issues and waste segregation mindsets, as well as enlist the help of teachers and families, with the goal of involving the entire community in the later stages. To tie up with the Vietnamese young generation to adopt a circular economy to solve the problem of mismanaged waste in the country, SCG also organized an online Photo Contest titled “Less Waste – More Green”. The contest encourages young people to take pictures of their small actions to turn waste into less waste.

In the face of the complicated development of the Covid-19 pandemic, SCG supported hospitals throughout Vietnam with specialized medical equipment for treatment processes such as portable ultrasound machines, handheld x-ray machines, monitors, syringe pumps, and many more. SCG’s latest innovations include hygiene modular bathrooms, SCGP paper field hospital beds, premium-quality paper boxes, and mobile positive pressure chambers were also sent to pandemic hotpots to help not only reduce the burden for frontline medical teams, but also make the treatment processes safer.

A milestone marking the continuous sustainable development efforts of SCG is that there have five member companies of SCG from all 3 core business of SCG (Packaging, Cement-Building materials and Chemicals) including  Vina Kraft Paper Co., Ltd, SCG Concrete Roof (Vietnam) Co., Ltd, Buu Long Industry and Investment Joint Stock Company, Song Gianh Cement Joint Stock Company and Binh Minh Plastic Joint Stock Company, have been listed in the Top 100 Sustainable Companies in 2021 based on Programme on Benchmarking and Announcing Sustainable Companies in Vietnam (CSI Programme).

Besides, Vina Kraft Paper Co., Ltd was recognized as one of the five typical businesses in terms of Gender Equality in the Workplace. At VKPC, women’s promotion opportunities are also equal to men's. To reduce inequality at work, SCG also creates favorable conditions for women to advance in their work through policies on allocating work in accordance with the personality and typical capacity of each individual. The company also focuses on the living and working conditions of each female employee such as family, children, and income to find the best way to support employees.

In addition, prioritizing ensuring benefits and health of employees, especially at the peak period of the pandemic, SCG and its subsidiaries strictly comply with regulations on public health, has advocated policing, stipulating and spiritualizing principles to ensure safety for people, social and environment, respecting diversity, upholding humanity and inclusiveness in strategies and action plans. At the end of August 2021, after a visit to some enterprises and production plants in Binh Duong province, the Deputy Prime Minister, Mr. Le Van Thanh, evaluated and commended VKPC as an enterprise with typical production arrangements and pandemic prevention. The company provided vaccinations and daily allowance for all working workers to encourage them to work together through the challenging period.

In terms of governance, SCG focuses on internal good governance to ensure that its businesses in Vietnam are transparent and fair. The group will aim to realize the ESG 4 Plus targets as delivered by the executives.

The ESG 4 Plus is the core mission that SCG strives to achieve, by integrating the knowledge, expertise, and experience, along with innovation and technology. This shall alleviate the crises, sustain the society, and help the corporate achieve its goals of green and sustainable development, keep contributing to the local communities in Vietnam.

Van Luong (Vietnam Business Forum)