SCG's ESG-Driven Journey to a Greener Vietnam: From Products to Communities

In a complex geopolitical landscape and economic uncertainty, sustainability has been identified as one of the key drivers for Vietnam's future growth and prosperity. The country has demonstrated strong determination in pursuing its net-zero emissions goal while encouraging businesses to embrace ESG (environmental, social, and governance) to bolster competitiveness and economic resilience. SCG affirms its position as a long-term partner to support the country's transition towards a sustainable, inclusive, and green economy.

In the pursuit of its Inclusive Green Growth strategy within the ESG 4 Plus framework, SCG continuously takes strategic steps to greenify its core industries, from cement-building materials to packaging and chemicals. The group’s efforts extend beyond environmentally sustainable investments to create a ripple effect in the community and the nation. This is reflected through SCG's close collaboration with the regulatory body, private partners, customers, and young generations to shape a fair, transparent, and thriving future together.

Mr. Thammasak Sethaudom, President and CEO of SCG, said, “At SCG, we're deeply committed to integrating ESG principles throughout our operations, especially in key markets like Vietnam. We believe in driving Inclusive Green Growth that not only benefits the environment but also creates tangible, positive impacts for people and communities there. This strategic focus ensures our innovations foster a sustainable future for all."

Accelerating green innovation, redefining sustainable industries.

All of SCG’s ESG initiatives are undertaken under the Inclusive Green Growth approach to ensure seamless operation across the organization, from research to production, to meet international standards. Initiatives are defined by ESG 4 Plus, including Set Net Zero - Go Green – Reduce Inequality – Embrace Collaboration plus Fairness and Transparency. The synergy of SCG and member companies to implement ESG practices not only creates a sustainable, efficient ecosystem but also reshapes green industries, contributing to bolstering Vietnam’s capabilities for sustainable development.

To accelerate Vietnam’s transition to a low-carbon economy, SCG Cement-Building Materials Vietnam is spearheading sustainable measures to reduce greenhouse gas emissions. For the first time, SCG Low Carbon Super Cement has been rolled out in Vietnam, which slashes carbon emissions by 20% during the production and use processes. The low-carbon product not only offers an alternative for eco-friendly building materials but also sets a new benchmark for Vietnam’s green building materials industry. The company has recently expanded the production capacity in Southern Vietnam with a volume of 6,000 – 8,000 tons per day for both the domestic market and exports. This, coupled with the launch of eco-friendly packaging in Central Vietnam, is expected to make more sustainable, long-lasting buildings nationwide.

Long Son Petrochemicals (LSP), a flagship project of SCGC (SCG Chemicals), has invested $700 million to upgrade its facilities, paving the way to use US ethane as feedstock for production. With the strategic investment, LSP can significantly enhance its competitiveness through lower feedstock costs, higher operational flexibility, and lower carbon emissions. Once completed in late 2027, the project is expected to lay a foundation for Vietnam’s sustainable petrochemical industry. Another subsidiary, Binh Minh Plastics, has become the first and only company in Vietnam’s pipe industry to achieve the highest-level Singapore Green Building Product (SGBP) certification – Leader – for its PVC-U and PP-R pipe and fitting product lines. The company also accelerates its digital transformation to support the green transition by researching and implementing robotic arms for automating the production of plastic pipe components. With such investments and achievements, both Long Son Petrochemicals and Binh Minh Plastics are reinforcing their leadership roles and redefining their respective industries towards a greener future.

Driven by its commitment to going green, Vina Kraft Paper Company, a leading packaging manufacturer in Vietnam and a member company of SCGP (SCG Packaging), is also undertaking a green transition in production. At the factory, the share of biomass fuels increases from 10% to 50%, while the installation of solar rooftop panels brings energy savings of 2%. The company not only sources all recyclable input materials but also achieves Forest Stewardship Council (FSC) certification for its products. Meanwhile, Duy Tan Plastics, another member of SCGP, has worked with Trexel, a leader in foaming technology from the US, to launch a lightweight bottle featuring MuCell® technology. This sustainable packaging solution can help reduce plastic waste, carbon emissions, and production costs for environmental protection. These initiatives reflect the ceaseless efforts of Kraft Vina and Duy Tan Plastics to follow the Inclusive Green Growth strategy, from green production to green innovations.

Embracing corporate social responsibility with a green mindset

Beyond green industry transformation, SCG remains committed to corporate social responsibility (CSR) activities aimed at improving quality of life, reducing social inequality, and fostering an equal society. In particular, CSR programs seek to cultivate a green mindset – such as environmental awareness and sustainable habits – among the community, targeting young generations and disadvantaged people. This underscores Inclusive Green Growth as a long-term strategy for SCG's business and CSR activities to engage with all parties and boost community capacity.

At the heart of its CSR activities lies SCG Sharing the Dream Scholarships, which have supported more than 5,600 Vietnamese students to pursue their educational goals for the past 17 years. Not only does it grant financial aid, but SCG also organizes workshops, coaching, and consulting to equip them with the necessary green mindset and skills. Meanwhile, the Packaging Speak Out competition is an initiative of SCGP to seek breakthrough ideas from young students. By joining the competition, students not only come up with real-world solutions to develop Vietnam’s sustainable packaging industry but also nurture a passion for environmental protection. By fostering lifelong learning and harnessing the power of creativity, SCG is empowering the Vietnamese young generation to become the green future leaders.

Special attention is paid to the underprivileged children and teenagers. SCG’s 17-year journey with the Ba Ria – Vung Tau School for Children with Disabilities has not only improved learning conditions but also equipped students with essential skills, expanded career opportunities, and supported their integration into society. A standout example is the “Green Dream of Childhood” exhibition, where students showcased their own projects made from recycled materials. This initiative serves not only as a creative playground but also as a stepping stone, empowering the children to express themselves confidently and move toward a more inclusive and sustainable future.

Furthermore, SCG also makes a concerted effort to develop the thriving community where it operates. Notably, the “Waste Segregation” project has been carried out by SCG and LSP at primary schools in Ba Ria – Vung Tau. The initiative not only educates young children about proper waste segregation but also enlists the help of teachers, families, and the community to tackle the waste problem. By empowering individuals to make green choices, SCG is promoting sustainable, inclusive, and long-term growth for the community. Another flagship project – "Loving Water for the Future" by Binh Minh Plastics – is providing access to clean water in underserved areas nationwide. Since its launch in 2022, the project has significantly improved the quality of life of thousands of households in remote regions, with nearly 40,000 meters of plastic pipes installed. This is part of SCG’s efforts to educate people about the relationship between environmental protection and clean water.

Becoming a strategic partner for Vietnam’s future prosperity

Alongside community development initiatives, SCG acts as a good corporate citizen to accompany Vietnam’s efforts to build a sustainable and circular economy. To accelerate key breakthroughs, seamless collaboration within the entire group is not enough. It is the public-private partnership that is key to fueling green investments across industries and ultimately providing long-term benefits for all stakeholders.

Notably, SCG partnered with the Ministry of Natural Resources and Environment (MONRE) – now restructured as the Ministry of Agriculture and Environment – to organize the Circular Economy Forum in 2024. The forum convened leaders from government and sectors to take the National Action Plan on Circular Economy (NAPCE) from paper to practice. SCG not only plays a pioneering role in forming a constructive platform for the NAPCE but also shares its circularity insights and best practices to make the action plan a reality. Additionally, the group has entered into the public-private partnership with MONRE, Dow Chemical Vietnam, and Unilever Vietnam since 2020 to promote plastic waste management under the circular economy model. By collaborating with government agencies and private companies, SCG is leading the changes in the circular economy arena while fostering collective environmental responsibility.

Putting Inclusive Green Growth and ESG 4 Plus at the core of the sustainability strategy, SCG is realizing a vision of building sustainable industries and thriving communities. Collaboration is also at the cornerstone of SCG’s operation, in which the company deepens public-private partnerships for tangible impact. Building on the ESG achievements, SCG and its subsidiaries are positioning themselves for a more sustainable future, contributing to Vietnam's progress towards inclusive green growth and prosperity.

Source: Vietnam Business Forum