Overcoming crises with sustainability strategies has become a proven fact that can help organizations survive change and uncertainty.
Anyone who is familiar with SCG, one of Thailand’s top giants, will have heard the phrase:
“Committed to fairness, committed to excellence, believe in the value of people, and committed to social responsibility.”
SCG people often call it the 4 ideologies, which are a business philosophy that has been practiced and passed down from generation to generation since the company was founded more than 100 years ago, which has the same meaning as the principles of sustainable business operations or Sustainable Development.
It is not surprising that SCG is a Thai business organization that has driven sustainability in a tangible and clear way and has been recognized as a “model organization in sustainability.”
Admin had the opportunity to talk with Mr. Thanawong Areeratchakul, Chief Executive Officer, Chemicals Business and Co-Chairman of the SCG Sustainable Development Committee, about doing business with SCG’s sustainability strategy, which is becoming more and more intense.
Sustainability leads to escaping crisis
Mr. Thanawong told us that SCG places importance on sustainable business operations, which is reflected through the 4 ideological practices that are in the mindsets of all employees, which have been passed on to employees from generation to generation, and have shown results over the past 100 years.
SCG is also the first Thai company and one of the first companies in ASEAN to be invited to join the DJSI or Dow Jones Sustainability Index since 2004. Being assessed by the DJSI, a global sustainability index, reflects the acceptance from various stakeholder groups and is a journey towards the goal of operating a sustainable business in the long term.
SCG has proven many times that sustainable business practices can help organizations survive even in times of crisis. This is clearly seen from the first wave of COVID-19 last year, which had a widespread impact. Many of SCG’s business operations during that time were already prepared according to the guidelines for sustainable business practices, such as risk management, continuity management, or taking care of employees, customers, and society at the same time.
Stakeholder Engagement is the Heart
In the COVID-19 operation, Mr. Thanawong told us that SCG prioritizes taking care of employees to work safely by allowing more than 90% of work from home and using technology or Digital Platform to help in the work, such as Virtual Dashboard or Virtual Workshop, which makes employees feel that we are working close together even though we are far apart, allowing the continuity of business operations to be smooth.
For customers, SCG helps manage customers during COVID and facilitates various operations so that customers can continue their business even in a lockdown situation, such as helping to create a template check sheet. In addition, SCG also helps take care of society by inventing more than 30 medical innovations for use during COVID, such as the development of negative pressure testing rooms (Modular Screen Unit) and infection screening rooms to create safety for medical personnel.
Recently, SCG has designed and delivered SCGP Paper Field Hospital Bed, made from 100% recycled paper, designed according to ergonomic principles to support the body shape of Asians, to hospitals and field hospitals nationwide to help improve safety and facilitate medical personnel, patients, and their loved ones in a timely manner. These operations are carried out quickly because in normal situations, SCG places importance on creating engagement with stakeholders, or what is known as Stakeholder Engagement, on a regular basis, allowing them to understand what each group values and be able to respond to their needs in a timely manner, even in times of crisis.
Driving the circular economy forward
At present, SCG has set clear goals for its sustainability operations, driving the organization towards Net Zero by 2050, using the principles of the Circular Economy in business operations under the SCG Circular Way practice, which is the use of resources for maximum benefit from production, use, and re-entering the production process as new raw materials. #UseItMostOfUse #SeparateItWorthIt #DisposeItProperly, driven through the operations of SCG’s 3 main businesses:
- Cement and building materials business focuses on using technology combined with innovation to develop products and services that meet consumer needs and are environmentally friendly under the label “SCG Green Choice”, from the production of products with recycled materials, reducing waste in the production process, reducing energy consumption and using renewable energy such as solar power, to “Green Living and Green Society”, including using waste to create benefits for society or “Turn Waste to Wealth”.
- Chemicals business focuses on using technology to drive the circular economy throughout the supply chain, starting from product design that increases recycling such as Mono-materials, developing technology to recycle waste back into raw materials in a higher proportion, promoting waste separation and collection for reuse through Like (Zero) Waste communities and creating waste banks using a Digital Platform as a management tool.
- Packaging business focuses on operating under the concept of circular economy by developing products that can be recycled or reused and managing the entire supply chain, increasing the proportion of collection back into the production process in a complete cycle.
Collaborate with all sectors to drive a circular economy.
In addition to driving sustainability within the organization, Mr. Thanawong said that SCG places importance on raising awareness in society and working together with all sectors. It has continuously organized the SD Symposium for more than 10 years.
In the past 2-3 years, SCG will focus on the Circular Economy, as it sees that this issue clearly addresses the issue of sustainability, as it is about using resources to their maximum benefit, and it can be done by all sectors, not just the business sector. It will continue to emphasize the Stakeholder Engagement process, which provides an opportunity for all sectors to share experiences, listen, present ideas, and drive forward together, which is very useful. In addition, it will work within the framework of the 17 Sustainable Development Goals (SDGs) to link and make the drive for sustainability clearer.
Moving forward sustainably in the SCG Way
SCG believes that the concept of sustainable business operations, taking into account ESG or businesses that care for the environment (Environmental) along with taking care of society (Social) and having good governance, transparency, and accountability (Governance), is a global trend that is becoming increasingly important. SCG will integrate it into the strategies of each business (ESG Integration) more intensively because all over the world, especially institutional investors and individual investors, believe that businesses that apply ESG approaches to their business operations are businesses that will create sustainability (Sustainability) and overcome all unexpected crises.
Amidst the COVID-19 crisis, no one knows how it will end, SCG continues to move forward in this direction by setting an investment budget of up to 20-30% to create business growth in the direction of sustainability. The remaining 15% will focus on driving the circular economy. This budget is tangibly specified in the operational plans of 3 main businesses. For example, the cement and building materials businesses will increase the importance of developing product innovations that meet the needs of consumers’ better living conditions, in line with the health-conscious trend, as consumers work more from home and repair their homes more.
Building new houses, meanwhile, will adjust the format of stores to be more e-commerce (E-Commerce) by using technology to meet customer needs, while the Chemicals business will focus on innovation in recycled chemicals in line with the principles of the circular economy, and the Packaging business will continue to focus on developing environmentally friendly packaging.
In every crisis, there are always opportunities and challenges to drive growth. If we can see them, we can seize the advantage first, such as SCG, which has set a sustainable business direction and strategy to be ready to handle the transition to the New Normal era clearly. It has not only been able to drive the organization through the crisis, but has also remained a sustainable leader worth watching.
Video Interview with Mr. Thanawong Areeratchakul, Chief Executive Officer, Chemicals Business and Co-Chairman, SCG Sustainable Development Committee
“Overcoming the crisis with sustainability strategies in the SCG Way”
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