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SCGC has selected suppliers that demonstrate a capability of sustainable business operations in the areas of environment, social, and governance (ESG). SCGC has an effective supplier opt-in system in place that consistently evaluates and reviews suppliers' performance in terms of product and service quality, as well as ESG guidelines. The goal is to develop and improve suppliers toward sustainability together. Since 2019, SCGC has been certified ISO 20400 for sustainable procurement, making it the first company in Thailand’s chemical sector to obtain such certification.
SCGC has developed and upgraded Supplier Management System (VeNus) by integrating supplier data into the automated price quotation system. The approach expands opportunities for potential suppliers to engage in fair tendering. Additionally, the system comprehensively records supplier information in all aspects, including company profile data, quotation management, and supplier performance, aiming for sustainable supplier management. Furthermore, it is an efficient communication channel for effectively disseminating news and receiving suggestions.
SCGC is dedicated to conducting ethical and responsible business operations in collaboration with our partners, while also actively supporting society and the environment. As a result, SCGC has implemented policies and guidelines for oversight to provide a framework for our collaborative business endeavors.
Business partners who deliver products or services
and creditors in the fiscal year.
Business partners with high-spending, strategical importance, and non-substitute (critical suppliers) or high ESG risk suppliers.
Business partners who have business operation in Tier 1 suppliers.
*Comprehensive assessment involves conducting an audit session (on-site/ online) to evaluate the supplier risks in the group of suppliers: critical suppliers, high ESG risk suppliers, and high-medium severity of supplier’s products/ services with criteria covering management system, capability, performance, and ESG management.
**Supplier evaluation is the evaluated process of tier 1 suppliers who deliver the goods and services, covering capability and ESG management
In 2022, SCGC has planned to increase the proportion of green procurement to be 14% as our target by green product or service expansion of the products’ group: pallet, packaging, chemicals, and forklift and service: waste disposal from 7 suppliers. According to the evaluation has been conducted, recommendations have been provided to improve the processes or involvement in product development. As a result, the products of all 7 business partners are registered into the SCGC green procurement list which increasing the proportion of green procurement to be 17%. Currently, there are 80 green products or services from 126 suppliers.
After SCGC raised awareness, and communicated organizational climate change goals to suppliers including providing guidelines and knowledge for emission factor calculation of products through questionnaires and business seminars, SCGC can gather the emission factor for product from 60 suppliers. The obtained data process of verification accurately and selection of suppliers with the potential for collaborative projects to reduce GHG emissions scope 3.
In 2022, SCGC collaborate with SCG and SCGP to organize a seminar to communicate sustainability driven of doing business between SCG and business partners. The seminar highlighted topics are climate change and human rights which reflecting the sustainability issues that suppliers need to consider while conducting their business operations.
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SCGC has received all suggestions and recommendations from suppliers to improve the efficiency of their working processes, to focus on building network to overcome business obstacle and sustainability supplier development. This reflects the high level of supplier satisfaction for SCGC.
