The reduction of greenhouse gas emissions to mitigate global warming and address climate change, as well as to create a sustainable future for our planet, has become a crucial issue that businesses worldwide are increasingly focused on. Recently, SCG Packaging Public Company Limited, or SCGP, organized a seminar titled “Sustainable Synergy for Decarbonization” to serve as a platform for collaboration among producers, entrepreneurs, SMEs, and financial institutions within the packaging industry’s value chain. The aim was to exchange perspectives on challenges and best practices to collectively reduce greenhouse gas emissions and foster a sustainable environment.
Carbon Footprint: A Key Factor for Sustainability
“Wichan Jitpukdee,” Chief Executive Officer of SCG Packaging Public Company Limited or SCGP, highlighted that the world is changing rapidly, and businesses that do not adapt will not be able to compete. SCGP has continuously adapted, with sustainability being ingrained in SCG’s DNA. SCGP aims to reduce greenhouse gas emissions by 25% by 2030 and achieve Net Zero by 2050. This will be accomplished through two main strategies: the assessment of the Carbon Footprint for Organization (CFO) and transition to low carbon dioxide-emitting fuels. These include installing solar roofs, using biomass energy instead of coal, and incorporating artificial intelligence to enhance efficiency and reduce energy consumption, cutting down greenhouse gas emissions by one million tons. SCGP aims to plant 2.3 million trees, recycle plastic waste into new plastic pellets, and repurpose 24,000 tons of paper pulp waste annually to produce soil conditioners, which are then used to grow eucalyptus trees for paper production.
Another aspect is the certification of 128 products with the Carbon Footprint of Products (CFP) by the Thailand Greenhouse Gas Management Organization (TGO). This certification helps identify the amount of greenhouse gas emissions for each piece of packaging and product. Additionally, 16 paper packaging printing and forming processes have received Carbon Footprint certification, covering all categories of paper packaging products. Customers can use the CFP to further calculate the total greenhouse gas emissions. Furthermore, SCGP has developed a “Private Declaration Label” for the carbon footprint of its products to display the greenhouse gas emissions of packaging. The company has also created “Carbon Footprint Software” for products, providing customers with documentation certifying the greenhouse gas emissions of their products. SCGP aims to achieve CFP certification for 100% of its products manufactured in Thailand by 2027.
“CFP will help customers operate their businesses in compliance with environmental regulations, which are increasingly being enforced in many countries. It will enhance sales opportunities, facilitate entry into new markets for export customer segments, and allow for the development and selection of packaging that reduces greenhouse gas emissions. This initiative will help elevate the environmental standards of the Thai packaging industry,” said Wichan.
Business Collaboration to Drive Sustainability
An example of an organization that is actively engaged in environmental initiatives is Kao Industrial (Thailand) Company Limited. “Suttipong Limsila,” Head of Corporate Strategy, revealed that Kao has established 19 sustainability strategies under its Kirei Lifestyle Plan, which includes initiatives such as improving quality of life and designing products for everyone, among others. Kao is committed to developing and innovating environmentally friendly products that are convenient to use, leveraging innovation to make consumers’ lives easier. Environmental concerns are critical in the modern era. Kao has developed eco-friendly packaging to reduce carbon emissions by using Bio PET and mono-materials, as well as flexible packaging (such as pouches or films), instead of rigid packaging (such as bottles), to reduce plastic usage by 50-70%. Additionally, Kao aims to increase the proportion of Green Carton by SCGP to 100% within this year, on top of carefully selecting raw materials from sources that can be traced back to ensure no violation of human rights or deforestation occurs. Kao has set a target to increase its use of renewable energy to 100% by 2025 and reduce carbon emissions by 55% in Scope 1 (direct emissions) and Scope 2 (indirect emissions) while decreasing the Carbon Footprint of Kao products by 22% by 2030. Additionally, the company aims to achieve net zero emissions by 2040 and become carbon negative by 2050.
Empowering SMEs Towards Greenhouse Gas Reduction
A representative of The Thai Chamber of Commerce, “Yuttana Jiamtragan,” Chairman of the Circular Economy and Environment Steering Committee, said that the Chamber has over 140,000 members nationwide. A survey conducted four years ago revealed that only 30% of its members were aware of ESG principles, which is relatively low. This can be attributed to several factors. To enhance competitiveness, SMEs should begin by familiarizing themselves with the Climate Change Act, which consists of 14 chapters and 177 sections. This Act will serve as a crucial tool and mechanism to guide businesses towards achieving net zero emissions. Additionally, SMEs should understand standards for conducting economic activities that consider climate change, such as the taxonomy and emission trading system.
Businesses in the Value Chain Adapt to Reduce Carbon Emissions
“Chaveng Sethaporn,” Head of Credit Product Development at Bank of Ayudhya Public Company Limited, stated that the bank can play a role beyond being just a credit provider by offering collaborative support to SME customers. The bank has launched the “Krungsri SME Transition Loan” to support entrepreneurs, providing loans up to 100% of the project value, with a maximum repayment period of 10 years. The interest rate is set at 3.50% per year for the first two years and a fixed rate as low as 4.75% for years three to five. Plus, customers are eligible to join the Krungsri ESG Academy program, where they can gain in-depth knowledge and practical support to transition their businesses effectively. The bank also has various support mechanisms, such as the Krungsri ESG Awards, which recognize entrepreneurs with outstanding sustainability projects, further fostering engagement. This initiative is part of Krungsri’s broader ESG ecosystem partnership network.
“Saichon Anukool,” Plant and Biogas Manager of Chok Yuen Yong Industry Company Limited, one of the entrepreneurs, provided an example of how they have adjusted their operations towards sustainability. The company operates a tapioca starch factory, which requires high electricity consumption and produces wastewater. To address this, the company established a subsidiary to convert the wastewater into biogas, which is then used as fuel to generate electricity within the factory, accounting for 60% of the total electricity consumption. A portion of the wastewater is treated and used to grow Napier grass, an economic crop. Of the Napier grass produced, 60% is given to the surrounding community, and the remaining 40% is used as fuel within the factory. In addition, the company has partnered with SCGP to install a 5-megawatt solar farm, which provides 20% of the total electricity used. In the future, the company aims to become a factory powered entirely by renewable energy. To achieve this goal, they plan to invest in increasing biogas production capacity or expanding solar farm installations, including floating solar panels.
“Dhanes Mekintharanggur,” Commercial Director of WICE Logistics Public Company Limited, or WICE, believes that ESG is integral to building sustainability. If businesses do not start now, they will lose their competitive edge due to upcoming regulations. Reducing carbon emissions in the logistics industry involves more than just switching to electric vehicles; it also includes enhancing transportation efficiency. This can be achieved by reorganizing transport routes, using ships that operate on low-sulfur fuel, and installing solar panels. Currently, WICE is preparing to provide transportation services for wood pellets from Laos to Thailand, and then exporting them to Japan for use as fuel in green energy production.
This seminar serves as a platform to prepare entrepreneurs in the packaging industry to adapt to environmental changes and collaborate to reduce greenhouse gas emissions. Incorporating ESG perspectives into operations will help reduce business risks, increase access to credit, and accelerate the development of innovative technologies to enhance competitiveness. It can also lead to new business opportunities that contribute to stable revenue growth.
Published on: Sep 5, 2024
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