31 May 2022

SCGC and ESG-Driven Approach

A good organization is one that employs the ESG principles in its management. This statement is proven by several companies' strong performance and long-term growth. A new approach to management places a strong emphasis on transparent corporate governance and efficient management of social and environmental risks to achieve organizational strength and establish investor trust.

ESG principles are made up of three components that are crucial to all businesses: environmental, social, and governance. All of which, if properly handled, will pave the way for future sustainability.

SCGC and Mission for Sustainability
SCG Chemicals Public Company Limited or SCGC gives sustainability a high priority in all areas and has maintained its commitment to becoming the Chemicals Business for Sustainability. SCGC focuses on the implementation to achieve the United Nations' Sustainable Development Goals (SDGs) under three components of ESG, which are care for the environment by implementing digital technologies throughout the manufacturing process to improve operational efficiency, developing environmentally-friendly innovations, as well as improving the quality of life of factory employees and residents of surrounding communities. SCGC implements a management system to prevent impacts on safety, health, environment, society, and transparent operations. As a result, all stakeholders will develop trust and grow together sustainably.

SCGC has set ESG goals and implemented them at all organizational levels, including subsidiaries in Thailand and abroad. This entails responding to all stakeholders' expectations through a business strategy that is flexible enough to adapt to changes while maintaining a balance of governance, social responsibility, and environmental stewardship. The following are the objectives for each area:

Environmental goals. SCGC establishes measurable environmental policies and emphasizes care for the environment, climate, and the efficient use of natural resources under circular economy principles. In addition, it also enhances the manufacturing process to be environmentally friendly. There are four key targets as follows:

  • Reduce greenhouse gas emissions by 20% by 2030 (from the base year of 2021) and achieve carbon neutrality by 2050
  • Reduce water withdrawal by 5% by 2025 (from the base year of 2014)
  • Reduce waste disposal output by 75% by 2025 (from the base year of 2014)
  • Expand the production of green polymer products to one million tons per year by 2030

Social goals. SCGC is committed to social responsibility, particularly maximizing the value of human resources, respecting human rights, and treating all stakeholders fairly and equally in compliance with international laws and principles. It identifies the groups or individuals who may be affected and eventually plans and develops guidelines for prevention and resolution to properly manage human rights violations. This also includes follow-up monitoring and mitigating measures to mitigate any possible impacts in an equitable manner. The following social policies are defined for each stakeholder type:

  • Employees and business partners: SCGC prioritizes health and safety throughout the organization to achieve zero accident goals and good workplace health.
  • Communities and society: SCGC emphasizes community and social development in areas where the company operates. Initiatives are provided to promote a good quality of life, including plans to address issues that affect people's livelihood in communities. This is to ensure that the company and the communities can coexist harmoniously and sustainably.
  • Customers and suppliers: SCGC conducts business on the basis of responsibility, developing products that satisfy the needs of consumers while simultaneously enhancing their quality of life through excellent innovation.

Governance goals. Corporate Governance extends beyond empowering businesses and addressing customer demands. Corporate governance entails executing a transparent and fair business practice with a clear ethics framework. Annually, all employees are required to complete the Ethics e-Testing and e-Policy e-Testing, both of which are geared at fostering ethical awareness. This is to ensure that employees can put the code of conduct and anti-corruption policies into practice while still maintaining uninterrupted business operations.

The ESG principles are the driving force behind SCGC's 40-year operation and continuing growth, which has resulted in long-term profitability. SCGC maintains a solid stance in the face of change and seeks to become a leader in the chemical industry in ASEAN.

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