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Earlier this year, the World Economic Forum published the Global Risks Report 2023, highlighting the diverse risks our world faces. A pressing issue is the increasing impact of climate change, marking the transition from the global warming era to the onset of global boiling. This shift is reflected in the action keyword "Sustainability." The global community has established Sustainable Development Goals (17 SDGs), serving as indicators for every sector to monitor their progress and accountability.
The introduction of a conceptual framework for sustainable growth, addressing fundamental issues across three critical dimensions – Environmental (E), Social (S), and Governance (G), or "ESG," further solidifies the concept of Sustainability. It is about more than just making commitments to change; it involves initiating serious, tangible actions with measurable and clear results.
Furthermore, reliable data from various sources unanimously show that over 95% of “Millennial” or “Gen Y” investors prioritize sustainable investment. Meanwhile, Gen Z and Gen Alpha expect and demand that businesses adopt responsible stances and consider issues of social responsibility. This has led to a gradual shift towards sustainability, ensuring business continuity while simultaneously preserving the environment.
For 2024, how will the sustainability trends, innovation trends, and the ongoing agenda related to climate change shape up? SCGC provides an update on these developments in this article.
Climate Fintech represents the integration of Fintech – a blend of 'Finance' and 'Technology,' particularly the use of online communication systems in the financial, banking, and investment industries. Often disrupting consumer behavior in these sectors, it leads to the emergence of new practices. This innovative approach contributes to reducing the environmental impact of human activities by making existing financial activities less detrimental to climate change. Examples include digital banking and digital point-of-sale systems, enabling consumers to carry out transactions using fewer resources, thereby reducing the carbon footprint.
One of the recent highlights of climate fintech is the use of blockchain to create platforms for trading carbon credits or Renewable Energy Certificates (RECs), making these processes more accessible and user-friendly. In Thailand, there are currently over 500 companies/organizations in the carbon-neutral group that will utilize this platform for the direct trading and exchange of carbon credits. This is facilitated by the Gideon platform, developed by Blockfint in collaboration with the Federation of Thai Industries, which aims to establish the Thailand Carbon Credit Exchange Platform. This platform is Thailand's main hub for trading or exchanging carbon credits according to national standards.
"SCGC also supports cWallet, a startup business that offers a carbon footprint accounting system for organizations aimed at addressing net zero emissions. cWallet has won the top prize and gained valuable experience from participating in the SCG Bangkok Business Challenge @ Sasin 2023 in the Thai round." You can read more about the story of cWallet here.
Sustainability information is data that reflects the policies, impacts, and performance of businesses in environmental and social aspects under a good corporate governance framework, known as ESG (Environmental, Social, and Governance) data. It gives investors and data users a broader perspective on business operations beyond financial information. This transparency fosters confidence in the organization's ability to manage the business efficiently, transparently, competitively, and create long-term returns.
In the upcoming year of 2024, disclosing sustainability information will be one of the key sustainability trends 2024 that companies and organizations must prioritize. Each company should continuously disclose its sustainability performance to stakeholders through various channels, such as annual reports, sustainability reports, or websites. This information is as crucial for investment decisions as financial data and offers other benefits.
“From the commitment to becoming a 'Chemicals Business for Sustainability,' SCGC operates in line with the Sustainable Development Goals (17 SDGs) and implements the principles of the circular economy to develop environmentally friendly innovations, enhancing its competitive edge in the global market. We have integrated ESG approaches into our business operations, with sustainability information disclosed in our Sustainability Report.
Artificial Intelligence (AI) is increasingly being recognized as a game-changer for creating a sustainable future. In 2024, this innovation trend for sustainability will assist us in achieving the Sustainable Development Goals (17 SDGs), addressing various issues to ensure sustainability across all sectors, from private entities to urban communities, nations, and the global stage.
AI from Recursive Inc. is a prime example demonstrating how AI can elevate sustainable development. Recursive Inc., a Japanese technology consultancy, specializes in developing AI technologies based on large datasets (Big Data) to create new content like audio, text, images, and videos. They also help businesses achieve their sustainability goals. Using Generative AI, they simulate environmental impacts caused by climate change, measure weather data with AI, and assess annual solar power generation.
Recognizing the importance of climate change, SCGC is committed to achieving carbon neutrality by 2050. One of our key strategies is "maximizing energy efficiency" by incorporating digital technology, specifically AI (Artificial Intelligence) and Machine Learning, to manage energy within our facilities. Would you like to know how we use AI? Click here to find out.
According to the Emissions Database for Global Atmospheric Research (EDGAR), in 2022, the transportation sector's greenhouse gas emissions increased by 72% compared to the base year 1990. Therefore, the shift towards electric vehicles (EVs) is becoming unavoidable in 2024.
Previously, in 2021, the United States government passed an infrastructure law, allocating a budget of $7.5 billion to build charging stations. Earlier this year, they announced a plan to create a network of 500,000 EV charging stations across the country, with standardized specifications for EV chargers to ensure compatibility with all car brands. Meanwhile, in Europe, the EU has mandated that all new cars entering the market from 2035 must not emit carbon dioxide into the atmosphere. Additionally, from 2030, all cars sold will have to emit 55% less carbon dioxide.
South Korea is also contributing to this transformation with financial support, a notable highlight being Jeju Island's declaration that by 2030, all vehicles on the island will be electric. Car manufacturers like Hyundai and KIA are adapting to this change by using Battery Electric Vehicles (BEVs), which rely on electric power from batteries for propulsion. In Thailand, the government has announced the “30@30” policy, aiming for electric vehicles to constitute 30% of car sales and establish 100,000 electric charging stations by 2030, increasing to 200,000 by 2035 (currently, there are 1,818 stations nationwide). This number may be revised to align with global trends, especially following Europe's shift away from diesel engines.
In October last year, SCGC signed a joint venture agreement with Denka Company Limited, or Denka, from Japan, to manufacture and distribute Acetylene Black in Rayong Province. The facility is expected to have a production capacity of about 11,000 tons per year and is anticipated to commence operations by early 2025. Read more about the SCGC-Denka collaboration here.
Biodiversity is a crucial element in maintaining the balance of our planet, as every life form plays a role in sustaining various life-supporting cycles. However, over the past 30 years, we have lost more than 70% of biodiversity, making this another critical sustainability trend for 2024, beyond just innovation trends.
In 2024, a significant trend to watch is the Biodiversity Net Gain, which has gained importance following the Kunming-Montreal Global Biodiversity Framework. These dialogues highlighted a global consensus on a framework for assessing, monitoring, and verifying trends in biodiversity loss and gain. Many countries have already implemented clear measures in line with this approach. For instance, the United Kingdom has enacted legislation requiring urban and other developments to be designed to increase biodiversity by at least 10%.
The "Plant-Cultivate-Protect: Plant Trees, Cultivate Seedlings, Protect the Forest, and Promote Low Carbon Society” campaign, launched in 2022 by SCGC, is a collaboration between SCGC, government agencies, and local communities. This initiative aims to restore forests to their former abundance while also educating communities on the correct reforestation methods. This effort cultivates a love for local natural resources. Since 2018, SCGC has planted and continuously cared for 368,729 trees in mangrove and terrestrial forests, nurturing seedlings, which have helped absorb approximately 3,573 tons of carbon dioxide equivalent. Follow the progress of the project here.
The '5 sustainability trends 2024' that SCGC updates everyone on are set to be significant highlights, promising beneficial impacts on our world, environment, and society. SCGC remains committed to innovating and developing green solutions, actively creating and implementing projects to address sustainability trends, and continuously mitigate the impacts of climate change.
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