SCG Named Top 1% in S&P Global ESG Assessment

SCG has been honored as the Top 1% S&P Global Corporate Sustainability Assessment in the Sustainability Yearbook 2024 by S&P Global Inc. SCG is the first ASEAN company to be selected for the DJSI World Index since the Sustainability Yearbook's inception in 2004, reflecting its long-standing leadership in sustainability for 20 years along with the DJSI. The recognition is a testament to SCG's ESG commitments (Environmental, Social and Governance) to achieve Net Zero by 2050 and shape a green and sustainable future for ASEAN, including Vietnam.

SCG participates in the Vietnam Circular Economy Forum 2023, highlighting its commitment to sustainable practices and circular economy principles

The S&P Global Corporate Sustainability Assessment (CSA) is an annual evaluation of a company's sustainability practices. It scores companies on 100 points across industry-specific economic, environmental, and social criteria. To be listed in the Yearbook, companies must score within the top 15% of their industry and must achieve a CSA Score, which is the S&P Global ESG Score without the inclusion of any modeling approaches, within 30% of their industry’s top-performing company. This CSA research process has been tested in practice for more than 20 years, attracting the interest of both business leaders and investors.

On the occasion of the 20th anniversary of the Yearbook, SCG continues to consolidate its place in the Top 1% for its outstanding sustainability performance. In particular, SCG achieved high scores for its environmental policies, climate strategy, and human capital development initiatives. Additionally, SCGP, a subsidiary of SCG in packaging, has been ranked in the top 1% of the S&P Global Corporate Sustainability Assessment in the Containers & Packaging Industry, out of more than 51 companies worldwide.

Dr. Chana Poomee, Vice President and Chief Sustainability Officer of SCG, said, “SCG is greatly honored and proud to receive this award. It reflects SCG’s unwavering commitment over the past 20 years, earning widespread recognition as a global leader in sustainability. This award signifies SCG's success in implementing comprehensive sustainability initiatives encompassing ESG dimensions, as reflected in the CSA by S&P Global, which evaluated 9,400 companies across 62 industries worldwide. SCG is an organization that continuously embraces opportunities and challenges, adapting and developing to remain resilient and ready to navigate crises and opportunities that arise.”

“We are ready to advance toward transitioning to a low-carbon society through the concept of Passion for Inclusive Green Growth. Our commitment is to create a sustainable Net Zero society through green innovations, ensuring that no one is left behind. This involves developing the economy alongside environmental stewardship, creating sustainable opportunities and value for all sectors, and driving ASEAN society towards a sustainable future,” he added.

Mr. Kulachet Dharachandra, Country Director of SCG, Vietnam, said, “We evaluate our performance not only on business results, but also on social and environmental benefits because we believe that both are important for sustainable business operations in the long term.”

SCG’s smart grid intelligent network for clean energy management

Operating in Vietnam for over 30 years, SCG and its member companies have actively adopted ESG practices, from low-carbon innovations to green manufacturing, to tackle climate change and achieve Net Zero. Most recently, SCG Low Carbon Super Cement has rolled out into the Vietnamese market, underscoring its commitment to contribute to Vietnam’s Net Zero target by 2050. This innovation is a low-carbon cement produced using green technologies and sustainable practices that significantly minimize 20% carbon emissions during the production and use processes. Meanwhile, SCGP has successfully developed sustainable packaging solutions that minimize waste and are fully recyclable. One of its green innovations is SCGP’s Green Carton, which minimizes material use by 15% to make carton boxes more eco-friendly and lighter. As a result, 21% of greenhouse gas emissions, equivalent to 7.16 million tons of carbon, were slashed by SCG in 2023 compared to 2020. Particularly in Vietnam, Vina Kraft Paper Company (VKPC), a subsidiary of SCGP, has also equipped its factory with a 4MW solar power system to generate renewable energy and reduce carbon emissions.

As a pioneer in ESG, SCG also fosters collaboration to drive Vietnam’s transition towards a sustainable future. Over the past few years, the group has teamed up with the Vietnamese Ministry of Natural Resources and Environment (MONRE) to organize the Vietnam Circular Economy Forum, bringing all stakeholders together to discuss the pathway to a circular economy. At the forum, SCG shared its expertise on ESG principles and how it implements ESG practices to ensure seamless implementation across the organization.

The career guidance program for parents and disabled students organized by SCG in collaboration with DRD Vietnam

Moreover, SCG and its member companies strive to promote a sustainable and healthy working environment for all. Accordingly, employees receive fair and equitable treatment without being discriminated against based on their gender, age, or ethnicity. Therefore, employees will have more chances to reach their full potential in their current roles and prepare for future changes. In particular, the group and its subsidiaries provide ongoing training and communication to raise employees' awareness of ESG practices and encourage them to make sustainable decisions.

In addition, SCG is dedicated to enhancing the quality of life and promoting sustainable development, firmly committed to its ESG 4 Plus strategy. The group has launched several social and environmental initiatives to achieve common goals. One remarkable initiative is the flagship annual SCG Sharing the Dream Scholarships, which has been organized for the past 17 years. Besides financial support, over 5,500 Vietnamese students have the chance to engage in meaningful activities, from factory tours to workshops, extracurricular activities, and ESG Camp to gain insights into real-world ESG practices. Meanwhile, SCG has also collaborated with Ba Ria - Vung Tau School for Children with Disabilities to improve the quality of education and life for disabled students for the past 15 years. Starting this year, the group launched the "My Career Dream" initiative to help disabled students explore career opportunities, thereby contributing to reducing inequality in society.

In pursuit of sustainability and ESG initiatives for decades, SCG has been making headway into the zero-emissions economy. It explains why SCG has been ranked number one in the S&P Global Sustainability Yearbook for ten years and has consistently been in the top three for 14 years in the Construction Material industry since 2004. Additionally, SCG has been recognized as a global sustainability leader through two leading indices: ESG Risk Ratings, achieving the ESG Industry Top Rated status in the industrial business sector by Morningstar Sustainalytics, and MSCI ESG Ratings, receiving an AA rating in the Construction Material industry from Morgan Stanley Capital International (MSCI).

By Van Luong, Vietnam Business Forum