SCG aiming for regional sustainability

09:17 | 17/06/2019
Thailand’s SCG is stepping up its business in Southeast Asia to cash in on the region’s growth. In this expansion process, the company is committed to securing a more sustainable supply chain across the region. Thanh Van reports.
scg aiming for regional sustainability
SCG has been going strong for over a century, but sustainability is now more important than ever

- SCG is the first in the ASEAN to have been included in Dow Jones Sustainability Indices by Robeco Sustainable Asset ­Management, the global indices tracking the performance of the leading sustainability-driven companies worldwide, as the Global Industry Leader in ­Construction Materials for 15 consecutive years since 2004;

- SCG has been granted seven awards at the Thailand Corporate Excellence Awards 2018, including Human Resources Management Excellence, Innovation Excellence, Product/Service Excellence, and Leadership Excellence, Sustainable Development/Corporate Social Responsibility Excellence, Financial Management Excellence, and Marketing Excellence;

- SCG has been awarded SET Sustainability Awards 2018 for the four consecutive year, Best Sustainability Awards, and ­Thailand Sustainability Investment from the Stock Exchange of Thailand;

- SCG has signed up to ­become a registered participant of the UN Global Compact (UNGC). This is testament to SCG’s determination to ­conform to the UNGC’s ­principles of human rights, labour, environment, and anti-corruption, and also reflects SCG’s aim to operate in ­harmony with the compact’s good corporate governance guidelines and Code of ­Conduct.

SCG is one of Thailand’s long-standing companies. The company was established in 1913 following a royal decree of His Majesty King Rama VI to produce cement, an essential material for the construction of Thailand’s infrastructure projects during the period.

SCG has grown continually and earned widespread recognition as a role model for other businesses, both locally and internationally. The group is comprised of three core businesses, namely, cement-building materials business, chemicals business, and packaging business. After a century of development, SCG is now ramping up efforts to become the strongest company in Southeast Asia with a new vision and promise under the theme Passion for Better.

Roongrote Rangsiyopash, president and CEO of SCG, disclosed the company’s operation in ASEAN excluding Thailand, with the revenue from sales in the first quarter of 2019 recorded 1 per cent decrease year-on-year, amounted to VND19.65 trillion ($847 million), which is 24 per cent of SCG’s total revenue from sales. This includes sales from both local operation in each ASEAN market and imports from the Thai operations.

Among them, SCG in Vietnam reported revenue from sales at VND6.8 trillion ($293 million) in the first quarter which includes sales from both operation in the country and imports from the Thai operations, this represents an increase of 12 per cent year-on-year mainly from chemicals business. In Vietnam, SCG recently launched the world-class quality cement SCG Super Cement with SCG Nano Tech to customers in the central of Vietnam. The SCG Super Cement is the premium cement that applies SCG Nano Tech. This is an exclusive technology by SCG aiming to bring superior strength and enhance durability of residential and industry constructions.

For the progress of Long Son Petrochemical Co., Ltd., the first petrochemical complex in Vietnam, the construction of the project is now on going as planned. According to industry experts, the Long Son petrochemical complex is the big project that would create the economies of scale to allow SCG to produce products with a competitive advantage. This petrochemical complex will also benefit from the growing demand for petrochemical products in several industrial sectors in Vietnam.

Besides Vietnam, SCG is on track to expand its business in other markets like Indonesia and the Philippines to realise its vision of regional leadership. While capitalising on the fast development across the region, the group hopes to contribute to sustainable progress wherever it operates and create value for customers, employees, and stakeholders alike.

Think green, go green

Sustainability in the supply chain from upstream to downstream is essential for SCG’s sustainable operations. Therefore, the group has embraced the circular economy concept to enhance operations across the entire value chain, setting the foundations for solid and sustainable growth.

Rangsiyopash explained that the circular economy concept could help solve the problem of dwindling natural resources, as it works differently from the traditional linear economy model (Take-Make-Dispose) by preserving natural resources and using and reusing them in the most efficient way. “By creating systems where waste could re-enter the supply chain, a circular economy could lead to environmental and social sustainability,” he said.

In 2018 SCG hosted the SD Symposium under the theme of “Circular Economy: The Future We Create” to disseminate and gather momentum for the circular economy concept in society. In addition, SCG also hosted the CEO Forum which provided for continued inter-sector collaboration to facilitate circular economy-based initiatives.

One such significant example is the Recycled Plastic Road Project that turns collected plastic waste into asphalt mixture for roads within a private industrial estate in Thailand. Another example is the Waste Collection Platform that recycles used corrugated cartons from leading retail chains into paper grocery bags, thus decreasing the usage of plastic bags.

In Vietnam, SCG has recently organised an event to introduce the circular economy concept to school children in the southern province of Ba Ria-Vung Tau. On the occasion, the local children had the opportunity to learn about the concept through various activities, from sorting trash to trash recycling exhibition, and simple quiz games to get them to understand and pick up good environmental habits.

These stories reflect SCG’s unwavering sustainability commitment to adopting the circular economy model throughout its value chain, which will contribute to prosperity in the ASEAN. Indeed, the ASEAN is a relatively challenging region, as it is still in the process of fast-paced development, with living standards rising at a tremendous rate, and acting as a key manufacturing hub catering to the world’s continuously increasing demand. This results in resource shortages.

The successful implementation of the circular economy concept can help promote the manufacturing of products and services using innovation that helps to maximise the efficiency of the use of resources. As the region’s sustainable business leader, SCG takes pride in its pioneering role of the circular economy to help the ASEAN tackle challenges and drive the circular economy forward.

Passion for sustainable living

Since its inception, SCG has conducted its businesses with constant awareness that as its operations directly transform natural resources into goods and services, environmental aspects must also be prioritised as well. With the business to grow steadily following the change of environment, society, and technology, SCG has set a sustainable development strategy with three focus areas, including climate change, circular economy, and transportation safety.

According to Cholanat Yanaranop, chair of the Sustainable Development Committee at SCG, as global warming continues to cause extreme weather abnormalities, SCG allocates tremendous resources and makes every effort to collaborate with global organisations to intensively reduce greenhouse gas emissions.

As of 2018, SCG is proud to highlight a greenhouse gas emissions reduction target of 28 per cent from the 2007 base year by 2030. This is in accordance with the Paris Agreement and conforms to the de-carbonisation that is required to keep the rise in global temperatures below the two-degree scenario. In addition, with depleting natural resources and ever-increasing consumption, SCG openly embraces the circular economy principles. Yanaranop noted that the circular economy model has been integrated into the company’s business model and includes idea sharing and active communication with SCG staff, other enterprises, and the larger society. The key to the success of circular economy initiatives is collaboration with all stakeholders, not only with those in SCG’s value chain.

Furthermore, the success of the organisation ultimately depends on its people. Health and safety have been SCG’s challenges, particularly transportation safety across the ASEAN markets, from the company’s facilities to consumers and customers.

“SCG’s transportation management focuses on strict adherence and compliance with established best practices and safety standards,” said Yanaranop. “Technology continues to be utilised to support and assist driver safety, encompassing SCG staffs and contractors while also benefiting the general public on the roads.”

These key focus areas showcase SCG’s continued progress and determination towards sustainability in its businesses. Looking ahead, SCG continues to adapt and strive towards sustainable growth, while remaining committed to providing sustainable values to society through better living environments for all both in Thailand and its SCG’s foreign markets.

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