SCG Decor Public Company Limited (SCGD) is driving its organization to become a leader in the surface decoration and sanitary ware market in the ASEAN region, not only with a strong business growth strategy but also with paramount importance placed on “sustainability” in all dimensions. Behind the market expansion plans and product innovations lies a commitment to conducting business responsibly towards the environment, society, and governance (ESG), coupled with the challenging goal of achieving “NET ZERO 2050”. This will be a key factor in creating a competitive advantage and sustainably dominating the ASEAN market.
TheReporterAsia – In today’s business world, where sustainability is not just an option but a necessity, SCGD has demonstrated a profound understanding of this issue. The company does not view investment in sustainability merely as a cost but as an investment for the future that yields returns in economic, social, and environmental terms. SCGD’s sustainability strategy is intricately woven into its core business plan, from production processes to product delivery to consumers, aiming to minimize environmental impact while achieving quality business growth.
The Heart of Sustainability: Clean Energy and Cost Management
One of the main pillars of SCGD’s sustainability strategy is its focus on using clean and renewable energy in its production processes. The company is well aware that the building materials manufacturing industry is energy-intensive; therefore, transitioning to more environmentally friendly energy sources is a top priority.
Mr. Numpol Malichai, President and CEO of SCG Decor Public Company Limited, has previously spoken about the importance of cost control to maintain profitability, partly through investments in cost-reduction projects utilizing alternative fuels and renewable energy. SCGD has set clear targets to increase its renewable energy consumption. Data indicates the company currently uses approximately 19% biomass energy and 10% solar energy in its total production, with goals to increase these proportions to 46% and 15%, respectively, by 2030.
These investments in clean energy not only help reduce greenhouse gas emissions, as part of the commitment to Net Zero Emission, but also mitigate the volatility of long-term energy costs, creating stability and a competitive edge in terms of cost. This is a crucial factor for penetrating the highly competitive ASEAN market. Effective cost management through sustainable practices is thus more than just expense reduction; it is about building resilience and long-term strength for the business.
“NET ZERO 2050”: A Pledge for a Sustainable Future
SCGD’s commitment to sustainability is underscored by its ambitious goal of achieving carbon neutrality, or “NET ZERO 2050”. This target aligns with global trends and the SCG group’s policy of prioritizing business operations alongside environmental care. Achieving Net Zero is not an easy feat and requires long-term planning, technological investment, and significant operational process changes.
SCGD’s strategy towards Net Zero encompasses various aspects, from enhancing energy efficiency and transitioning to renewable energy as mentioned, to developing more environmentally friendly production processes, researching and developing low-carbon products, and exploring future Carbon Capture, Utilization, and Storage (CCUS) technologies. Furthermore, promoting a Circular Economy by reducing production waste, reusing raw materials, and designing products conducive to recycling is another vital component on the path to Net Zero.
Announcing the Net Zero 2050 goal not only demonstrates responsibility towards climate change issues but also builds trust among investors, consumers, and all stakeholders that SCGD is a forward-thinking organization ready to adapt to global changes. This will enhance the brand’s image and attract talented individuals to join the company.
Sustainable Product Innovation: Meeting Modern Consumer Demands
Beyond improving production processes, SCGD also emphasizes the development of product innovations that address sustainability needs. Consumers today, especially in ASEAN markets with growing middle-class and younger generations, place greater importance on environmentally friendly and health-conscious products. SCGD, therefore, focuses on developing High Value-Added (HVA) products that not only feature beautiful designs and functional utility but also consider environmental impact throughout their lifecycle.
Examples include developing tiles and sanitary ware using recycled materials, products that save water and energy, or products with special features such as anti-bacterial properties or air purification capabilities. These innovations not only help reduce environmental impact but also create added value for products and respond to changing market demands. Continuous investment in research and development is thus another key mechanism driving SCGD towards leadership in sustainable innovation in the region.
Sustainability: The Foundation for ASEAN Market Leadership
SCGD’s sustainability strategy is not merely an auxiliary project but an integral part of the organization’s DNA, believing that business growth and responsibility towards society and the environment can go hand in hand. Focusing on sustainability in all dimensions – from raw material sourcing, production processes, and product development to corporate governance according to good principles – will be a crucial factor enabling SCGD to:
- Create a competitive advantage: As environmental regulations become stricter and consumers increasingly prioritize eco-friendly products, companies that adapt and lead in sustainability will have an edge.
- Manage risks: Investing in clean energy reduces risks from fossil fuel price volatility. Efficient resource management mitigates risks from raw material scarcity.
- Enhance reputation and brand: An image of corporate social and environmental responsibility builds trust and loyalty from customers, employees, and investors.
- Attract investment: Global investors, particularly institutional ones, increasingly consider ESG factors in their investment decisions. Companies with outstanding sustainability performance are therefore better positioned to access capital.
- Meet employee expectations: The new generation seeks organizations with values that care for society. Operating sustainably helps attract and retain talented personnel.
The recent Digital Roadshow Presentation provides an excellent opportunity for SCGD to communicate its clear commitment and direction in integrating business strategy with sustainability to investors and the public. This solidifies its path to becoming a true and sustainable leader in the surface decoration and sanitary ware market in the ASEAN region, true to its vision of “CREATE YOUR LIFE PASSION” – not only creating spaces of happiness for people but also co-creating a better future for the planet. Investors and interested parties can find more details in the presentation documents available on the company’s website (https://scgd.listedcompany.com/attachment.html?id=290232 and https://investor.scgdecor.com/th/downloads/downloads-all).
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