SCG furthers commitment to sustainability with ESG 4 Plus

December 15, 2021 | 17:54
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SCG, a leading conglomerate in ASEAN, has reaffirmed its unwavering commitment to sustainable development by introducing its ESG 4 Plus targets covering “Set Net-Zero – Go Green – Reduce Inequality – Embrace Collaboration”. ESG 4 Plus will be incorporated into SCG’s forward operations to contribute to building a more sustainable world.
SCG furthers commitment to sustainability with ESG 4 Plus
SCG has introduced ESG 4 Plus to untangle crises and build a sustainable world

People all over the world are reeling from the one-two punch of climate change and COVID-19. Climate change poses various threats to human living conditions such as sea-level rise and extreme weather events. Meanwhile, the COVID-19 pandemic is causing significant loss of life, disrupting livelihoods and affecting economic growth. The overlapping crises are exposing and intensifying patterns of social inequality such as unemployment and inflation.

It is a wake-up call for the world to promote sustainable development to fight against climate change and the COVID-19 pandemic. Investors, businesses, financial institutions and policymakers all around the world are placing more emphasis on environmental, social, and governance (ESG) framework to address the crises. SCG, with a strong footprint in Thailand and other ASEAN countries, recognises its role as a global citizen. The introduction of ESG 4 Plus is testament to SCG’s efforts to solve global issues.

Roongrote Rangsiyopash, president and CEO of SCG said that, “We believe in the ESG framework as the internationally acclaimed business operation standard. It aligns with the United Nations’ Sustainable Development Goals. SCG adopts sustainable development practices which are core for our operations to show responsibility for society, community, and the environment. SCG elevates the sustainable development notion to ESG-4 Plus while harnessing good governance.”

SCG furthers commitment to sustainability with ESG 4 Plus
Roongrote Rangsiyopash, President and CEO of SCG addressing the launch of ESG 4 Plus

With regards to “Set Net-Zero” and “Go Green”, SCG will inject an estimated initial investment of THB70 billion ($2 billion) to enhance the production process and propel low-carbon businesses to achieve the 20 per cent greenhouse gas emissions reduction target by 2030. Moreover, deep technology is in place to accomplish net-zero emission by 2050 while the absorption of 5 million tonnes of CO2 shall be achieved by planting 3 million rai (480,000 hectares) of forest plantation and building 130,000 check dam projects. Specifically, in “Go Green” pathway, SCG is pushing eco-friendly innovation by two folds with solutions such as SCG Green Choice, CPAC Green Solution, SCG Green Polymer, and fully recyclable, reusable, and degradable packaging.

To “Reduce Inequality”, SCG aims to create jobs for 20,000 workers while launching partnerships with various sectors, striving to hand over a better world to the next generation, all of which while harnessing good governance operations.

Regarding “Embrace Collaboration”, SCG is determined to drive ESG with collaborations at the national, ASEAN, and international level. Recently, SCG, together with the Ministry of Foreign Affairs, hosted the Green Meeting at the APEC 2022 and the ASEAN Summit. This is the preparation for the ESG Symposium in Thailand, Vietnam, and Indonesia, a move to invite stakeholders in ASEAN to drive ESG together.

SCG furthers commitment to sustainability with ESG 4 Plus
SCG plans to spend THB70 billion ($2 billion) on technical innovations to reduce emissions from its manufacturing by 20 per cent by 2030

In addition, SCG has continuously directed the organisation towards the ESG 4 Plus concept with good governance to keep operations fair, transparent, and accountable. Moreover, the group focuses to convey the values to the employees, generations after generations, building a compelling corporate culture.

ESG Plus 4 not only assists SCG in realising its role as a good corporate citizen of the world, but also gaining a position in a business world that is more focused on ESG framework. On the other hand, customers are becoming more concerned about environmental conservation. Thus, the implementation of ESG Plus 4 also addresses the desire for a sustainable world among businesses and consumers.

Rangsiyopash said that, “SCG and our employees are part of this world. From now on, ESG 4 Plus is the core mission that we strive to achieve, by integrating the knowledge, expertise, and experience, along with innovation and technology. This shall alleviate the crises and sustain the society, under the ESG umbrella. Nevertheless, SCG cannot untangle the crises alone, we urge every sector to jointly care for a better world, to pass on to the next generations.”

SCG furthers commitment to sustainability with ESG 4 Plus
SCG’s eco-friendly innovation will help meet the demand of environmentally conscious customers

Moving forward, SCG will apply ESG 4 Plus principles in all the countries where the group operates. The group has packaging, chemical, and cement businesses in Vietnam. Focusing on the environmental aspect, SCG will strive to meet its energy demand with renewable energy in the country.

With regards to the social aspect, SCG will reskill and upskill the Vietnamese workers to enable them to generate more income and enhance their wellbeing. As a result, people can enjoy higher standards of living while also contributing to the reduction of income disparities between different groups.

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

“In our group, we now recognise the problems. We will know what we need to do in the next few years. The challenge is to take action to address the problems,” Rangsiyopash added.

By Thanh Van

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