Chemicals Business, SCG, Takes ESG-Friendly Stance to Strengthen Society, Environment, and Business Growth

Date: 24 Jun 2021

Operating a company in the traditional manner, with an emphasis primarily on profit and cost reduction, may be irrelevant in today's global context, when the world is confronted with a slew of challenges ranging from a scarcity of natural resources, exacerbated climate change, a wider gap in social inequality, to corruption. Therefore, businesses should take these variables into account and use them adequately to continue to grow sustainably while benefiting all stakeholders and creating sustainable returns.

SCG recognizes the significance of this evolving context and devotes consistent attention to the ESG criteria. In addition, the company takes a broader approach to environmental, social, and governance challenges by incorporating sustainable practices into business operations to promote confidence in all sectors and emphasize the business's responsibility in the three said dimensions.

What does ESG have to do with Sustainable Business?
ESG is a term used in the capital markets to provide investors information to assess the business's performance holistically. ESG encompasses more than just financial data; it reflects a company's corporate governance, transparent management, risk management, and commitments to its stakeholders, as well as competitiveness and the ability to deliver long-term returns.

The vital sustainable practices underlying ESG include 3 main areas: Environmental (E), covering energy, water, waste, pollution, and greenhouse gas management; Social (S), covering company's treatment regarding employees, customer, social and community development; and Governance (G) focusing on good corporate governance, sustainability risk management, supply chain management, and corporate innovation.

The Importance of ESG to Chemicals Business, SCG
In addition to placing sustainable development and circular economy at the heart of company operations, Chemicals Business, SCG also adopted ESG as an additional conceptual framework to help reflect its accountability to stakeholders in three dimensions:

  • Environmental Dimension. Chemicals Business, SCG, announced earlier this year its roadmap "Chemicals Business for Sustainability," which will apply to the entire supply chain. To achieve such a roadmap, the company implemented key strategies such as Design for Recyclability, in which products are redesigned to use less plastic materials while providing the same or superior performance, accelerating the development of bioplastics as an alternative material, and integrating advanced recycling processes to convert post-consumer plastics into renewable feedstock.
  • Social Dimension. To sustainably shape the healthy community around the plant, Chemicals Business has fostered exceptional community entrepreneurship by leveraging the local identities of communities in Rayong to generate additional value, in line with the circular economy model, which incorporates innovation and technology to facilitate and improve efficiency. Among the examples are fabric made from pineapple leaves by the Khon Saen Witi Weaving Community Enterprise in Pluak Daeng District, seawater-dyed batik by the Tan Batik Community Enterprise in Ban Chang District, Tulip Housewife Community Enterprise in Mueang District's Noenpayom, and Song Saleung Salacca Fruit in Syrup Community Enterprise in Klaeng District, and online marketplace -- Rayong Shop Hi.
  • Governance Dimension. ESG helps Chemicals Business, SCG, monitor and collect business sustainability performance in a more comprehensive, organized, and transparent manner, allowing the company to better communicate and establish an understanding with stakeholders. The approach also helps the company in better managing stakeholder needs while retaining competitiveness and developing corporate credibility. It is also a tool for reflecting business potential to attract investors who want to invest in outstanding businesses with the potential to deliver sustainable and long-term returns.

The use of ESG (Environmental, Social, Governance), which conforms to environmental care, social stewardship, and good corporate governance, would aid Chemicals Business, SCG, in operating a sustainable path in line with the international community's Sustainable Development Goals (SDGs).