SCG Pioneers ESG and Circular Economy Practices, Driving Green Growth and Sustainable Development

SCG and its member companies remain steadfast in their commitment to sustainable development, focusing on innovation in operations, environmental protection, and active contributions to community growth. These efforts have solidified the SCG's reputation as a leader in promoting green and sustainable values, serving as a model for integrating economic growth with social responsibility.

SCG joins public-private partnerships to accelerate the transition to a circular economy in Vietnam

Collaborating for a green future

Amid escalating environmental challenges, Vietnam is actively promoting a circular economy to address urgent issues such as climate change, ecological imbalance, and resource depletion. The Vietnamese government has identified the circular economy as a critical solution in its National Agenda, along with the development of a National Action Plan on Circular Economy (NAPCE).

As a pioneer in sustainable development, SCG has closely collaborated with government agencies to realize and advance the circular economy in Vietnam. Notably, the group signed a Memorandum of Understanding (MoU) with the Ministry of Natural Resources and Environment (MONRE) to organize the Circular Economy Forum since 2022. This forum provides a platform for experts, policymakers, and businesses to discuss strategies and actionable measures for establishing a regulatory framework for the circular economy in Vietnam.

 SCG consistently implements circular business models across the entire group, significantly reducing greenhouse gas emissions from its production and business activities. Thanks to effective and forward-thinking policies, SCG and its member companies have continuously received prestigious awards for sustainable development, solidifying their position as a leader in promoting green values in the Vietnamese market.

Advancing innovation

To reach its current milestones, SCG and its member companies have made significant efforts to green their operations by transitioning to sustainable green energy sources such as biomass and solar power. The group has also installed waste heat recovery systems across all its factories, reducing annual CO2 emissions by hundreds of thousands of tons. Leveraging their inherent strengths, SCG’s companies have effectively implemented various initiatives and solutions that apply circular economy principles.

 Through the 4R model (Redesign – Reduce – Reuse – Recycle), Vina Kraft Paper Company (VKPC), a leading packaging manufacturer in Vietnam, a member company of SCGP - Packaging business of SCG, has achieved nearly 100% recycling efficiency, utilizing wastepaper as its primary raw material. In 2024, VKPC partnered with industry stakeholders to produce recycled plastic pellets by separating nylon from paper waste. This innovative technology enables the company to recover all wet waste and convert it into raw materials for plastic products such as pressed boards, fan bases and plastic baskets. This initiative not only conserves raw materials but also promotes the development of circular products.

SCG, in collaboration with Binh Minh Plastics, has actively implemented several notable community projects, including the "Loving Water for the Future" initiative

PRIME Group, another SCG member company, is advancing the production of eco-friendly product lines for the Vietnamese market, earning the SCG Green Choice sustainability certification for environmentally friendly products. Notably, its Porcelain tiles ensure volatile organic compound (VOC) emissions are kept below 0.5 mg/m³, making them exceptionally safe for users’ health. Meanwhile, Slim Tiles set a new benchmark for lightweight, easily installable tiles that reduce raw material and energy consumption by up to 40%.

 Binh Minh Plastics Joint Stock Company has accelerated its digital transformation to support the green transition by researching and implementing robotic arms for automating the production of plastic pipe components. In Vietnam, Binh Minh Plastics is also a pioneer in achieving the UK’s WRAS (Water Regulations Advisory Scheme) certification. Its plastic pipes and fittings are proven to be free of harmful metals, ensuring absolute safety for transporting clean drinking water.

SCG’s member companies focus on greening production and developing eco-friendly products

Sustainable development with the community

Alongside environmental protection, SCG consistently incorporates community feedback to implement meaningful programs that improve the quality of life for local residents. A prime example is the "Loving Water for the Future" project, organized in collaboration with Binh Minh Plastics over the years, which brings clean water to underserved areas. In 2024, the project was launched in Quang Nam Province with a total sponsorship value of VND1.35 billion.

These enduring efforts for the environment and the community not only help SCG maintain its achievements but also strengthen the sustainable development of its member companies for the future.

By Van Luong, Vietnam Business Forum