The crisis resulting from the nature, climate and pollution is of great concerns to humanity. COVID-19 is a zoonotic disease, a virus that transmits from animal to human that represents a risk from a breach of nature by interfering with bio-ecosystem integrity. The climate change is of mounting importance as well since it may lead to changes in infectious disease transmission patterns and thus increase the risk of future pandemics. Finally, air pollution and waste also pose serious environmental health risk to the society. The COVID-19 crisis demonstrates that companies can no longer operate independently from social and environmental issues. To survive the economic recovery from COVID-19 and future pandemics, if any, businesses and households alike must incorporate sustainability concept into their practices and ways of living.
The green economic recovery must engage the private sector. Businesses have a vital role to perform as a driver of innovation and an engine for economic growth and should not make profits from polluting the environment. The reform toward sustainability is a must. Sustainable development programs must be integrated into business operations. Business leaders must have sustainability mindsets to recognize social and environmental values, not just innovation.
Thailand Corporate Excellence Awards 2020 recognizes Bangchak Corporation Public Company Limited (BCP) for its Excellence in Sustainable Development. The company operates its core business in oil refinery alongside social and environmental stewardship for corporate continuity and sustainability. The company also diversifies into bio-based products, green power, (e.g., solar, wind, geothermal, and hydropower), oil and gas exploration and production, and downstream innovative business ventures to endorse the green economy, thus sustainably reducing environmental impacts on the planet.
Strategies and Policies
BCP aims to be a leading green energy company in the region. The company is determined to progress beyond the petroleum-based business to the green energy, aligning with the “Evolving Greenovation Vision ” BCP develops the 3S coraporate strategy consisting of Security, Stability and Sustainability in response to strategic risks such as the global oil price fluctuation, climate change and technology disruption. The 3S Corporate Strategy efforts is to create energy security for the nation, manage the business portfolio to generate consistent returns, and grow businesses sustainably and be ready for emerging risks and disruptive technology.
BCP also develops the 4 Green Sustainability Strategy (i.e., Green Business, Green Production, Greenovative Experience, and Green Society) to create sustainable business and respond to stakeholder’s needs and expectations as well as the SDGs. The strategy enables the company to focus on investment in valuable green businesses and innovation, improve environmental and safety management to increase resource utilization efficiency, create green experience and innovation to support sustainability, and initiate businesses and activities that benefit the communities, society and environment.
In addition, BCP has the corporate sustainability policy in place to help reduce business risks throughout its value chain and facilitate the achievement of short-term and long-term corporate objectives.
Implementation of SD Aspects in Business
BCP implements its sustainable development program through the 4 Green Sustainability Strategy. First, the company creates sustainable values through investment in green power businesses. They are green electricity production from renewable energy and biodiesel and ethanol production. This strategy helps mitigate emerging energy risks and support local farmers to grow energy crops. BCP also institutes the Bangchak Initiative and Innovation Center to invest in overseas lithium battery technology and healthy sugar startups.
Secondly, the company manages energy conservation in production and water footprint in a refinery process to be eco-friendly. BCP also commissions an enclosed ground flare to minimize emissions in operations on communities. Thirdly, the company offers green and innovative experience for modern lifestyle. BCP develops B20 diesel, B10 diesel and Euro 5 oil products to be environmentally friendly and reduce PM 2.5 emissions and uses the green community energy management system (GEMS) produce electricity from solar energy. Lastly, the company originates businesses and activities to benefit the envi ronment and society. The uses of biodegradable plastics glasses at Inthanin coffee shops and recycling of used PET plastic bottles into plastic fibers to produce shirts, bags and hats for the public are some examples.
Awards and Recognition
In 2019, BCP receives Thailand Corporate Excellence Distinguished Awards in Leadership, Innovation, and Sustainable Development, SET Awards for the Sustainability Excellence Award of Honor, Best Innovative Company Awards, 1 in 98 Thailand Sustainability Investment, Prime Minister’s Industry Award for the Outstanding S-Curve Industry, Global Good Governance (3G) Awards from Cambridge IFA International Financial Advisory (UK) for the 3G Best CSR Award and 3G Best Green Initiative Award, Platinum ESG Award for the 6th consecutive year from The Asset ESG Corporate Awards, and Sustainability Disclosure Award from Thaipat Institute & the Securities and Exchange Commission, among others. The company is also certified in the Water Footprint Certification from Sustainable Water and Environment Institute, FTI, ISO 50001:2018 Certification (Energy Management System), ISO 45001:2018 Certification, TIS 18001:2011 (Occupational Safety and Health System), ISO 14001:2015 (Environmental Management System), and Certificate authenticating the carbon label from Thailand Greenhouse Gas Organization (TGO).
Other nominated companies have their own sustainable development policy and practices that are well recognized at the national (e.g., Thailand Sustainability Investment Index (THSI) membership) and international (e.g., Dow Jones Sustainability Indices (DJSI) membership) levels. They integrate sustainable development as part of a strategic plan and a business operation. The foundation of their sustainability principles is built upon the three key aspects: Environment, social and governance (ESG). Some appoint the Sustainable Development Committee to drive the integration of sustainability initiatives into business strategies and govern the sustainability management. A majority of the nominated companies are companies with high market capitalizations and have their sustainable development goals linked to the UN SDGs.