Thailand Corporate Excellence Awards 2019: Sustainable Development Excellence
Thailand Corporate Excellence Awards 2019: Sustainable Development Excellence
Thailand Corporate Excellence Awards 2019: Sustainable Development Excellence

Digitalization for sustainability addresses how digital technology can be utilized to ensure transitions towards a more sustainable society. In principle, a sustainable development means the ability to meet current needs without compromising the ability of future generations to meet their own needs. This year, the Sustainable Development Excellence Award examines how companies use technology and innovation to develop their businesses in a sustainable manner. For example, to apply digital solutions to achieve sustainability, a company may dematerialize its physical materials or products into digital or electronic forms with the same level of functionality thus helps reduce usages of non-renewable resources and energy consumption. Reducing waste and developing a control system to minimize greenhouse effect using new technology and innovation are also part of digital sustainability. The Sustainable Development Excellence is awarded to The Siam Cement Public Company Limited (SCG) and PTT Public Company Limited (PTT). Key success factors contributing to the Sustainable Development Excellence at both companies are discussed alternatively heretofore.

Strategy and Policy

SCG expresses concern over global warming and climate changes issues and really acts upon them. The company has established a sustainable development strategy in 3 major areas: climate resilience, circular economy, and transportation safety. To accommodate climate changes, SCG adheres to a strategy to reduce energy usage, use renewable or alternative energy, and develop products/services that lower greenhouse gas emissions. To drive circular economy forward, SCG initiates material usage reduction and durability, upgrade and replacement, and reuse and recycle strategies in every step of its value chain from a design process to sell and transportation. To ensure transportation safety, the company strictly controls safety management system, provides training to operators, develops technology to reduce accidental risk, and creates awareness and professional pride among all drivers. PTT is strongly committed to undertake its business in a sustainable manner by balancing People, Planet, and Prosperity along with good corporate governance. Specifically, the company conducts its businesses by taking good care of communities and societies, conserving natural resources and environment, and being robust for sustainable growth of the economy. PTT not only adopts the United Nation’s sustainable development goals (SDGs) into its business strategies but also initiates Sustainability Management Framework consisting of 10 elements: Organization Governance, Human Rights, People, Security Safety Health and Environment, Fair Operation Practices, Corporate Citizenship, Supply Chain Management, on-track to achieve the target. The company aims to reduce greenhouse e mission from operations, adopt a circular economy in operations, increase products from renewable energies, develop environmental friendly products/services, and induce carbon pricing in investment decision. For Prosperity, PTT has a mission to foster the long-term national energy security by expanding natural gas network, increasing liquefied natural gas (LNG) supply, and enhancing international trading business to create diversity of crude and condensate supply. Product Stewardship, Reporting and Reputation, and Stakeholder Management. PTT benchmarks itself with the Dow Jones Sustainability Index (DJSI) and has been maintaining a membership in DJSI for 7 consecutive years as well as being Industry Leader in the Oil and Gas Upstream & Integrated Industry (OGX) for 2 consecutive years.

Implementation of SD Aspects in Business

 SCG places emphasis on both waste management and product/service design to drive the SD results. For waste management, the company embeds 3R principle of Reduce, Reuse, and Recycle into the production process to achieve optimization. SCG has in place policies to develop innovative products that consume less resources while maintaining the same standard of excellence. In this manner, the company is thus able to reduce materials used in the manufacturing and product development with extended usage duration (e.g., micro flute corrugated packaging which is durable but requires less paper). By developing innovative products and materials to upgrade and replace the existing ones, SCG can minimize resources usages and even make them recycle-friendly. For example, Fest food packaging is a substitute for foam containers and is more durable and easily recyclable. SCG also collaborates with modern retail trades and supermarkets to collect used boxes and papers for recycling and then develop a new product with higher content of recycled materials. PTT aims to be the “Pride and Treasure of Thailand” and creates business opportunities and sustainable growth that respond to every stakeholder. For People, PTT promotes education at all levels by supporting the establishment of EECi to serve as Thailand’s advanced research and innovation development center and to foster an innovation ecosystem. The company encourages SMEs and communities to sell agricultural products, community goods, etc. at its service stations. For Planet, PTT sets a target to reduce operational greenhouse gas emission by 20% within 2030 based on a business-as-usual scenario and, in 2019, isstewardship, energy management, greenhouse gas management, and waste management. PTT is determined to be a business leader and to operate in line with the principles of sustainable development and Sufficiency Economy philosophy of H.M. King Bhumibol Adulyadej. The company is committed to building trust among its stakeholders through operational excellence, innovation, and transparency. PTT ensures that an effective corporate governance is in place by appointing the Corporate Governance Function to be responsible for acknowledging and following up on any incidents. The Function is also responsible for ensuring ethical practices and maintaining morale at work. Furthermore, PTT sets human capital development as top priority to advance scientific and technological knowledge as well as to facilitate innovation from both the employees and PTT Innovation Institute. This year, there are over 500 submissions with 38 new products so far.

Significant Others

 Other nominated companies also integrate economic, social and environmental factors into business decision-making processes to achieve sustainable growth according to their SD policies. SD initiatives from other nominated companies include investment in innovative renewable energy business, focus on bio-based products, uses of recycled and renewable materials in production, aim to become a carbon -neutral organization, environmental-friendly transactions through mobile applications, and installation of solar rooftops and recycled water system to preserve environment, to name a few.

Notable Remarks

SCG pledges its commitment to follow the royal footsteps of H.M. King Bhumibol Adulyadej and carries out its businesses with concern over society and all related parties by adopting the Sufficiency Economy principles to survive, thrive and achieve sustainability. Today, SCG is a leading ASEAN conglomerate that operates with a commitment to promote sustainable growth. In 2018, SCG addresses the UN SDGs throughout the value chains, focusing on 8 key sustainability areas, namely innovation and technology, customer experience, safety, human rights, product