SCG maintains lead in sustainable development despite global challenges in 2021

In 2021, five subsidiaries of SCG from all three core businesses of SCG (Packaging, Cement-Building materials and Chemicals) including Vina Kraft Paper Co., Ltd., SCG Concrete Roof (Vietnam) Co., Ltd., Buu Long Industry and Investment JSC, Song Gianh Cement JSC, and Binh Minh Plastic JSC, have been listed in the Top 100 Sustainable Companies in 2021 based on the Programme on Benchmarking and Announcing Sustainable Companies in Vietnam (CSI Programme).

FIve subsidiaries of SCG have been listed in the Top 100 Sustainable Companies in 2021

Besides, SCG as a corporate has also been evaluated by the Dow Jones Sustainability Indices (DJSI) as a global sustainable company in the category of DJSI World and DJSI Emerging Markets in Construction Materials Industry in 2021 for the 18th consecutive year. Those milestones mark SCG’s continuous efforts in building a long-term growth strategy based on environmental, social, and governance (ESG) despite the global challenges.

For the first time, SCG has five companies listed in the CSI 100, in which SCG Concrete Roof (Vietnam) has been on the list for three consecutive years and Binh Minh Plastics JSC also had been on the list for four consecutive years (2016-2019). CSI Programme 2021 is organised by Vietnam Business Council for Sustainable Development (VBCSD) under the Vietnam Chamber of Commerce and Industry (VCCI), and the Ministry of Labour, Invalids and Social Affairs, the Ministry of Natural Resources and Environment, and the General Confederation of Labour. The CSI 2021 Index employs 119 indicators in four areas: Sustainable Development Performance Index, Governance Index; The Environmental Index, and the Labor-Social Index.

Especially, in the first year that VBCSD introduced two new topics on Gender Equality in the Workplace and Children’s Rights in business under the CSI programme, Vina Kraft Paper Co., Ltd., the Packaging Business of SCG, has been lauded as one of the exemplary businesses on Gender Equality in the Workplace. The new award represents the vision of “leaving no one behind” in a sustainable business corporate culture, as well as being inclusive in serving various communities in society. While improving gender equality in the workplace contributes significantly to labour productivity and talent attraction; respecting children’s rights will help build stronger communities, creating a sustainable future for both the corporate and their stakeholders.

In order to achieve all the indicators, SCG and its subsidiaries have adhered closely to the ESG principles. Specifically, Vina Kraft Paper Co., Ltd. and SCG Concrete Roof (Vietnam) (CRVC), and Song Gianh Cement JSC have applied three international standards for their management systems including ISO 9001:2015 (Quality Management), ISO 14001:2015 (Environmental Management), ISO 45001:2018 (Occupational Health and Safety Management).

Buu Long Industry and Investment JSC has optimised its production line to meet the strictest standards of white cement production beside ISO 9001:2015 and ISO 45001:2018 while Binh Minh Plastic JSC also gained Management System ISO 9001:2015, ISO 14001, Kaizen activities, 5S, ERP, 7 tools to improve the production site, towards TQM comprehensive quality management and sustainable development. In addition, since 2015, Binh Minh Plastics JSC has participated in the Sustainable Development Report according to the international standard GRI4.

SCG makes efforts in building a long-term growth strategy based on ESG

In terms of environmental standards, SCG’s subsidiaries always orient their business toward sustainable best practices and become role models in their respective business. For instance, with the notion of restoration to reduce all negative impacts of production activities on the environment, ecosystem and human health, Vina Kraft Paper Co., Ltd. was among the first to apply circular economy principles in the packaging industry production process, including a recycled water treatment system to reduce the amount of fresh water consumption, and use biomass to reduce fossil fuels consumption. In addition, Vina Kraft Paper Co., Ltd. also recovers methane from the wastewater treatment system in order to reduce greenhouse gas (GHG) emissions, as well as upcycles fly ash from the boiler turns to raw materials to produce construction bricks.

Besides other achievements in production, SCG and its subsidiaries also contributed initiatives like Positive Pressure Chambers, Paper Field Hospital Beds, Hygiene Modular Bathrooms, and necessary medical equipment to the localities' COVID-19 fight. So far, the donation value is up to more than VND40 billion ($1.74 million) to support pandemic relief and response.

Regarding business recovery for the post-pandemic period and setting a long-term goal in the future, SCG is one of the corporations in the world that commit to reducing GHG emissions to Net Zero by 2050. Accordingly, SCG has constructed and implemented a detailed plan with realistic milestones toward not adding to the total amount of GHG released into the atmosphere by the year of 2050 to avoid the worst consequences of climate change. This plan will facilitate SCG’s innovation and operation in all of its worldwide activities in the years to come as one of the leading conglomerates in the region, especially in sustainable development.