SCG unveiled the plan ‘Passion for Inclusive Green Growth,’ highlighting four main drivers: ‘Agile Organization – Green Innovations – Organization of Possibilities – Inclusive Society.’ The aim is to pave the way for creating a Net Zero society that grows sustainably.
Thammasak Sethaudom, President & Chief Executive Officer of SCG, who assumed his position on January 1, 2024, elaborated on SCG’s mission and business purposes under the “Passion for Inclusive Green Growth” concept. This initiative represents an evolution from SCG’s ESG 4 Plus strategy (Net Zero – Go Green – Reduce Inequality – Enhance Collaboration Plus Trust through Transparency), aiming to strengthen and amplify SCG’s resilience amidst global volatility, encompassing geopolitical conflicts and the climate crisis, which impact the economy, society, the environment, and the general quality of life significantly.
“The future world will confront heightened uncertainties. We must equip our business to be both proactive and defensive. If SCG solely focuses on a short-term horizon of 3-5 years, our outlook would be limited. However, envisioning a future spanning 50-100 years compels us to commence transformative actions today, ensuring long-term stability while progressing toward a Net Zero society. This entails reducing carbon dioxide emissions through green innovations and transitioning to low-carbon manufacturing processes, enabling SCG to achieve profitability and sustainable growth.”
Four Main Drivers Propel ‘Passion for Inclusive Green Growth’
Thammasak said that SCG is committed to advancing initiatives. Still, fundamentally, every business unit within SCG, whether it be “SCG Cement and Green Solutions,” “SCG Smart Living,” “SCG Distribution and Retail,” “SCG Chemicals (SCGC),” “SCG Packaging (SCGP),” “SCG Decor,” “SCG JWD,” or the new venture “SCG Cleanergy,” is poised to grow through the ‘Passion for Inclusive Green Growth.’ This approach is focused on fostering a Net Zero society that thrives sustainably through green innovations, ensuring no one is left behind so that everyone can progress and succeed together.
The “Passion for Inclusive Green Growth” concept is propelled by four main drivers: 1) Agile Organization, 2) Green Innovations, 3) Organization of Possibilities, and 4) Inclusive Society.
Thammasak emphasized that SCG is cultivating an “Agile Organization” capable of swiftly adapting to circumstances, demonstrating high flexibility, and allowing any high-potential business unit to spin off and achieve double growth in a sustainable, green manner under the ESG 4 Plus strategy, which is at the core of SCG’s business philosophy. At the same time, SCG, as the parent company, will continue exploring new business opportunities externally and within the organization.
Every SCG business is poised for growth under the ‘Passion for Inclusive Green Growth’ concept, integrating technology and innovation to develop “Green Innovations.” For instance, SCG Cement and Green Solutions is advancing the production of Low Carbon Cement, recognized in Thailand and internationally. This year, they are preparing to launch the second generation of Low Carbon Cement, which reduces carbon dioxide emissions by an additional 5% compared to the first generation.
SCGC is striving toward innovations in SCGC GREEN POLYMERTM to reach a production capacity of 1 million tons by 2030. On one aspect, it has partnered with Braskem, a global leader in bioplastics from Brazil, leveraging Thailand’s agricultural strengths to transform agricultural products into bioplastics. This initiative not only generates income for farmers but also produces bioplastics with a negative carbon footprint, which can be recycled just like conventional polyethylene. Currently, a bioplastic manufacturing plant is under construction in Thailand.
Meanwhile, SCGP utilizes over 95% recycled paper materials and engages in eucalyptus forestry, which not only captures carbon but also provides additional income for farmers through eucalyptus cultivation.
SCG Cleanergy is poised for significant growth and expansion as Thailand and the world increasingly demand clean energy. Advancements are focused on promoting electricity trading via smart grid platforms and clean energy storage, technologies that facilitate easier access to clean energy for everyone. Currently, SCG is collaborating with Rondo Energy, a startup in the United States, to develop innovative heat storage batteries from clean energy, which help reduce carbon dioxide emissions in the production process and significantly advance the industrial sector towards greener operations.
Moving toward a Net Zero society, the key element is ‘people.’ Hence, SCG is committed to creating an “Organization of Opportunities,” offering a platform for everyone to collaborate and innovate new businesses and innovations, such as establishing startups through the ZERO TO ONE by SCG program. This initiative allows SCG employees to develop new ventures, transitioning from employees to entrepreneurs with intensive ideation and innovation cultivation from experts. Ideas that prove to be market-viable may receive initial funding to scale further. However, Thammasak asserted that SCG does not focus solely on the participants’ success; everyone who goes through this program is considered high-quality, possessing lifelong learning potential. SCG is dedicated to continuously creating new opportunities.
Thammasak further emphasized that a critical aspect of moving forward is “Inclusive Society.” Progressing towards a Net Zero society is not easy; it necessitates a collective transition involving business partners, surrounding communities, the youth, and the vulnerable. SCG is accelerating support through initiatives, such as driving the “Saraburi Sandbox,” Thailand’s first low-carbon model city. The community is encouraged to cultivate Napier grass, a high-energy crop, which can be sold to cement factories as a substitute for fossil fuel biomass, thereby generating additional income for the community. Additionally, SCG promotes alternate wetting and drying in paddy fields or low-carbon rice cultivation, with ongoing monitoring of these project outcomes. SCG is also establishing the ‘Big Brothers for SMEs’ network in Saraburi to facilitate knowledge transfer, helping entrepreneurs transition to a low-carbon society through clean energy, eco-innovations, funding sources, and ‘developing in-demand job skills’ for 50,000 individuals by 2030, aiming to uplift the Thai workforce, ensure job stability, and reduce inequality, such as training for solar panel installation and maintenance.
“Advancing towards a Net Zero society is a challenging and volatile effort, but we are not backing down. Delaying action today could mean falling behind in the future. So, SCG is fully moving forward with the concept of ‘Passion for Inclusive Green Growth’ and is ready to collaborate with all sectors to drive this movement forward,” President & Chief Executive Officer of SCG concluded.
Published on: Mar 28, 2024