SCG: Unwavering Commitment to Sustainable Practices

SCG, founded in 1913, has been steadfast in its commitment to advancing the well-being of communities in Vietnam through sustainable development. SCG’s ESG 4 Plus strategy, which includes “Set Net-Zero 2050 – Go Green – Reduce Inequality - Embrace Collaboration” and Trust through Transparency in all operations, serves as a blueprint for the group’s commitment to high standards in environmental responsibility, social engagement, and transparent governance practices. In an exclusive interview with Vietnam Business Forum, Mr. Roongrote Rangsiyopash, President & CEO of SCG, shared insights into SCG’s sustainable development journey.

Mr. Roongroote Rangsiyopash – President and CEO, SCG

How has SCG pursued ESG (Environmental - Social - Governance) and sustainable development in Vietnam as a pioneer in this field?

Since its inception in 1992, SCG has been steadfast in its commitment to advancing the well-being of the communities in Vietnam. Guided by the principles of sustainable development, SCG strives to foster a harmonious balance between economic progress and environmental and social considerations.

We have adopted the ESG 4 Plus strategy, which comprises four main approaches: “Set Net-Zero 2050 – Go Green – Reduce Inequality - Embrace Collaboration” Plus Trust through Transparency in all operations. This strategic approach serves as a blueprint for the group, reinforcing our steadfast commitment to high standards in environmental responsibility, social engagement, and transparent governance practices.

Some outstanding achievements of SCG in Vietnam in terms of sustainability include:

Regarding the environmental aspect, our subsidiaries in Vietnam have been at the forefront of implementing exemplary environmental initiatives and standards. These include the establishment of green products, wastewater treatment systems, waste heat power generation, and the integration of solar roofs. These projects not only align with state regulations governing environmental management but also serve as pioneering examples for fostering a sustainable future. Pioneer in Circular Economy in Vietnam with the first Public-Private Collaboration with the Ministry of Natural Resources and Environment (MONRE) in waste management; and being a part of the National Action Plan on Circular Economy (NAPCE). At the local level, we also cooperate with local schools to educate and guide new generations to be aware of the importance of waste segregation. Besides, Long Son Petrochemicals (LSP), Vietnam’s first integrated petrochemical complex also applies cutting-edge technologies to emphasize safety measures, environmental protection, and social responsibility.

In terms of social activities, with the concept of “Reduce Inequality”, we created the project “Learn to Earn” for disadvantaged people to have sustainable jobs. Moreover, the "SCG Sharing The Dream" scholarship is our flagship program, which has facilitated educational opportunities for over 5,500 students nationwide in the past 16 years. Additionally, we prioritize the well-being of the local community by offering amenities such as Outdoor gyms, Playgrounds and Sharing a Brighter Vision - eye-cataract surgery programs. This commitment to health and fitness reflects our dedication to enhancing the overall quality of life for residents in the area. As our philosophy of believing in the individual, we create various programs for the youth to embed their sustainable mindset for students via annual competitions such as “ESG Idea pitching”, and “SCGP Designer contest”. We have supported the group of disabled students in Ba Ria-Vung Tau where we have the Long Son Petrochemicals project since 2009.

And in governance, SCG and member companies are honored to receive awards related to sustainable development and its efforts in business operations. Some key highlight awards are SCG was named one of the top 50 typical FDI enterprises, Vina Kraft Paper Co., Ltd (VKPC) and SCG Concrete Roof (CRVC) have been awarded the Top 100 Sustainable Companies in 2022. This prestigious award is the official recognition of SCG's sustainable development strategy.

SCG actively contributes to the Circular Economy Forum, fostering collaboration among diverse stakeholders for sustainable development

SCG is the first Thai company to rank globally in the DJSI by RobecoSAM. What are the key factors that have kept SCG in this position for many years?

The enduring position in the Dow Jones Sustainability Index (DJSI) stems from our unwavering commitment to sustainable practices, especially incorporating the ESG 4 Plus principle into the whole strategy. By integrating strategic environmental initiatives, impactful social responsibility programs, and transparent governance practices, we consistently align our operations with long-term sustainability goals.

We also continuously innovate, adapt to emerging challenges, and engage effectively with stakeholders further solidifying our leadership in sustainable business practices on a global scale. For example, SCG, in collaboration with PETRONAS, is leading the co-chair role in the newly launched World Economic Forum community dedicated to fostering a Just Energy Transition in ASEAN. The primary objective is to spearhead pragmatic and equitable decarbonization efforts. Besides, SCG joined the Asia Business Council (ABC) together with 80 CEOs and discussed with Prime Minister Mr. Srettha Thavisin on strategies for long-term growth and cooperation to strengthen Asia's economy.

Recently, SCG has been recognized in three world-leading sustainability indices: the Dow Jones Sustainability Indices (DJSI), receiving the highest score in the Construction Materials industry, Sustainalytics, where we achieved the ESG Industry Top Rated in the Industrial Conglomerates group, and Morgan Stanley Capital International (MSCI) with an AA (Leader) rating in the Construction Materials industry group. These efforts demonstrate our international standard management, and strengthening business with innovative solutions and digital technologies that meet the demands of green consumers.

How does SCG implement the ESG 4 Plus strategy with its subsidiaries in Vietnam?

Our ESG 4 Plus strategy is based on the ESG approach with the four goals of “Set Net-Zero 2050 - Go Green - Reduce Inequality - Embrace Collaboration” Plus Trust through Transparency in all operations.

With that as the compass, SCG has implemented our operations toward the Net-zero goals with initiatives in green products and sustainable production in Vietnam with some outstanding examples:

In Cement – Building Materials, SCG has introduced green products that have been certified with the SCG Green Choice label. Products such as SCG Super Cement, SCG Super Wall, Song Gianh Cement and Starmax Cement not only save energy and resources but also help to reduce GHGs emissions.

SCG Packaging (SCGP) is the leading consumer packaging solutions provider through innovative and sustainable offerings. Their packaging is recyclable, compostable, and lightweight, aligning with circular economy principles. For example: R1 & R1+ materials are made from a single type of polymer for each layer, making it 100% recyclable. This product not only protects the product and withstands impact, but also conserves natural resources and reduces waste.

Besides, SCGP embraces Sustainable Energy & Packaging, actively promoting solar energy utilization and increasing biomass usage. In 2023, the company expanded the installation of solar energy to nine other companies and shifted to renewable energy biomass which leads to reduced greenhouse gas emissions to 108,000 tons of carbon dioxide per year which included DUYTAN, BATICO, Alcamax, SOVI, AP Hanoi, NAI and Go-Pak (member companies of SCGP) have implemented this as well.

SCG Chemicals (SCGC) is dedicated to pioneering new technologies and innovations aimed at crafting high-value-added (HVA) products and holistic service solutions that cater to diverse needs and locations. SCGC is focusing to be a Leading Green Polymer Solutions Provider in ASEAN, focusing on four pillars which are reduce, recycled, recyclable and renewable. Its subsidiary, Long Son Petrochemicals or LSP, Vietnam’s first integrated petrochemical complex also applies cutting-edge technologies to emphasize safety measures, environmental protection, and social responsibility.

The SCG Green Choice products are not only save energy and resources but also help to reduce GHGs emissions

How has SCG's commitment to sustainable development goals influenced its business operations, particularly as a foreign direct investment (FDI) entity, and what motivates SCG to collaborate with the Vietnamese government and stakeholders in advancing sustainable development?

Aligning with Sustainable Development Goals (SDGs) has positively impacted SCG's business operations in several ways:

Adaptation to Mega Trends: SCG's integration of mega trends into its sustainability strategy enhances its adaptability to changing business landscapes.

Competitiveness Boost: Commitment to sustainable development enhances SCG's competitiveness, meeting ethical expectations and appealing to conscientious consumers and investors.

Long-Term Growth Confidence: SCG's confidence in sustainable, long-term growth is supported by its alignment with SDGs, addressing environmental, social, and governance aspects. Sustainable practices contribute to SCG's financial stability, mitigating risks associated with environmental and social challenges.

Shared Value Creation: SCG's dedication to SDGs results in the creation of shared value, fostering positive impacts on communities and strengthening relationships with stakeholders.

SCG is committed to being part of the communities and countries where we operate, guided by a simple principle: when the nation does well, it's because of a combination of economic growth, people's well-being, and environmental care-the three key elements of sustainable development.

We recognize that sustainable development benefits everyone involved. To encourage broader participation, we aim to create more opportunities for all parties to join us. For example, the joint-force of all public and private sectors to organize the Circular Economy Forum in 2022 and 2023 to provide a platform for diverse stakeholders to collaborate towards sustainable development.

SCG seamlessly integrates the principles of the circular economy throughout its entire value chain, displayed at the exhibition area made of recycled materials

How does SCG apply the circular economy in line with the concept of a Bio-Circular-Green (BCG) Economy?

Organizations within SCG have driven their business in a sustainable direction and achieved significant outcomes. Some examples are:

- Green Packaging offers a lightweight mono-material that's 100% recyclable or Compostable Single Wall Cups using a plant-based Polylactic Acid lining. It can reduce the amount of waste disposed of into the environment, and provide the opportunity of using new products.

- Green Polymer - an eco-friendly plastic that optimizes benefits and value through four solutions: Reduce, Recycle, Recyclable and Renewable.

- One of the key collaborations is CP Foods collaborated with SCG Packaging and SCG Chemicals to develop environmentally friendly food packaging solutions. These efforts underscore a shared commitment to reduce greenhouse gas emissions, promote consumer safety, and cater to the rising demand for sustainable packaging in the country.

- Green Construction: We can crush and repurpose construction scraps as substitute materials for various construction works, such as road paving and concrete sheets. This approach reduces the use of virgin materials, minimizes pollution, landfill transportation, and decreases greenhouse gas emissions. Examples include “One Bangkok”, a mixed-use development project co-developed by Frasers Property Limited in collaboration with SCG to manage the project using sustainable construction practices. The collaboration aims to reduce resource use and manage construction waste in urban construction projects

With the National Action Plan on Circular Economy, I believe that there will be more and more businesses adopting ESG strategy into their operation, to comply with the new direction and together work toward one common goal. To accelerate the impact of CE and drive progress, collaboration across industries will lead to greater results.

Thank you very much!

Source: Vietnam Business Forum