VN
Press Release:
SCG Fosters the Collaboration for Advancing Vietnam’s National Action Plan on Circular Economy at Vietnam Circular Economy Forum 2023
Hanoi, November 16, 2023 – SCG, a leading regional conglomerate, and Thailand Supply Chain Network have collaborated with the Vietnamese Ministry of Natural Resources and Environment (MONRE) to organize the Vietnam Circular Economy Forum 2023 with the topic “Develop the National Action Plan on Circular Economy (NAPCE)”, marking a significant milestone in the journey towards a sustainable future. SCG’s involvement underscores its unwavering commitment to sustainable development strategy in Vietnam and region with a focus on circular economy (CE) in practice and ESG (Environmental, Social, Governance) direction in all collaborating activities.
The world is facing increasing challenges of environmental, social and economic issues; which raise the urgent need to find collaborative solutions across sectors. Vietnam is also amongst the countries that are heavily affected by climate change, environment degradation and resource exhaustion. In this context, the government of Vietnam has identified Circular Economy as the key solution in the National Agenda, with the development of the National Action Plan on Circular Economy (NAPCE) from 2022.
At the Vietnam Circular Economy Forum 2023, led by MONRE, for the first time, the NAPCE – contributed by various sectors in the country will be introduced to the communities of Government leaders, Leader of development partner organizations Ambassadors, Representatives of major enterprises, Non-government organizations (NGO), Universities, Research institutes, leading experts in Circular Economy. The forum aims to facilitate robust discussions, strategic planning, and concrete actions to implement Circular Economy to attain the Nationally Determined Contribution (NCD) target of Vietnam. It will also shed light on financing mechanisms such as promoting carbon markets, mobilizing innovative financing for biodiversity and ecosystem services, as well as engaging private participation in waste management activities.
At the event, SCG collaborated with various stakeholders to share its expertise on ESG principles and their relevance to promoting the NAPCE in Vietnam. Mr. Roongrote Rangsiyopash, President and Chief Executive Officer of SCG also gave a speech highlighting the crucial role that ESG factors can play in driving the circular economy transformation. By adopting ESG practices, businesses can minimize their environmental impact, enhance social well-being, and strengthen corporate governance, all of which are essential for a thriving circular economy.
“With the National Action Plan For Circular Economy, I believe that there will be more and more businesses adopting ESG strategy into their operation, to comply with the new direction and together work toward one common goal. To accelerate the impact of CE and drive progress, collaboration across industries will lead to greater results. We are looking forward to collaborating with our local partners to embrace ESG principles and hence promote circular economy practices. Our aim is to grow stronger and more sustainable together, therefore enhancing our ASEAN competitiveness against other economies in the world.” Mr. Roongrote Rangsiyopash spoke at the Plenary session of the Forum.
In Vietnam, SCG actively works together with the government and other sectors in promoting the Circular Economy from the national level to the local level. Circular Economy 2022 “National Plan Launch Conference for Circular Economy 2022” was organized with the collaboration of SCG, Thai Supply Chain Network and MONRE. Before that, Public-Private Collaboration (PPC) towards Circular Economy in plastic waste management with MONRE and other leading enterprises in Vietnam, which has been implemented since 2020. To assess a long-term solution for improving waste infrastructure and the waste management system, SCG Chemicals and MONRE, the Vung Tau City’s People Committee, The Alliance to End Plastic Waste, Cities Development Initiative for Asia and Innovation Norway collaborate to create a solid waste management project in Vung Tau.
Across the region, SCG also fosters collaborations toward Circular Economy, including the joint venture agreement with Braskem – the leading global biopolymer producer in Brazil to produce bio-ethylene (Green-Ethylene) from agricultural-based ethanol; and the acquisition of Peute – the Netherlands’ largest independent packaging materials recycling and trading company.
Currently, SCG, with its three business units—Cement-Building Materials Business (CBM), SCGC (SCG Chemicals), and SCGP (SCG Packaging)—is proactively putting its commitment to the strategy ESG 4Plus principal “Set Net-Zero – Go Green – Reduce Inequality – Embrace Collaboration”. To implement this strategy, SCG puts collaborative efforts among stakeholders and partners with diverse suppliers aiming to minimize resource consumption and waste generation. This approach not only reduces carbon emissions but also advocates for the use of sustainable materials and energy sources. Moreover, it fosters the development and promotion of eco-friendly products with a lower environmental impact. These activities align seamlessly with the goals of the National Action Plan on Circular Economy (NAPCE):
– SCG Cement – Building Materials (CBM) Business applies ESG principles through its Cement & Green Solution Business (CSG), focusing on Green Circularity, Green Solution, and Green products of Cement & Concrete. PRIME Group, as an example, innovates to reduce carbon footprint using the 4R (Reduce – Reuse – Recycle – Repair/Replace/Review model), aiming to cut CO2 emissions and save 700,000 tons of CO2. In Vietnam, SCG’s Cement – Building Materials Business implements a waste gas recovery system and replaces clinker in cement production with fly ash, recycled waste materials from other industries. Our SCG Green Choice labeled products are friendly to the environment and people’s health. For instance, using 50 tons of this SCG Super Cement can help reduce 500 kg of CO2 emission, equivalent to which 22 mature trees can absorb in a course of one year.
– SCG Chemicals is aiming to be a Leading Green Polymer Solutions Provider in ASEAN, focusing on 05 key strategies: 1. ASEAN Chemicals Leader, 2. Fully Integrated Vinyl Player, 3. Global Leader in Sustainability, 4. Strong Portfolio of HVA Grades, and 5. Leading Operational Excellence. The business unit is dedicated to pioneering new technologies and innovations aimed at crafting high-value-added (HVA) products and holistic service solutions that cater to diverse needs and locations. Taking the Green Polymer as a prime example with a focus on 4 solutions of Reduce, Recycle, Recyclable and Renewable and a target of 1 Million Tons by 2030. To date, SCGC Green Polymer can reduce GHG emission for around 60,000 tons CO2. As well as its subsidiary, Long Son Petrochemicals or LSP, a subsidiary of SCGC and Vietnam’s first integrated petrochemical complex also applies cutting-edge technologies to emphasize safety measures, environmental protection, and social responsibility. To date, LSP has contributed more than 75 billion VND for social contribution.
– SCG Packaging (SCGP) is committed to sustainable business management in the Environment, Social and Governance (ESG). We embrace Sustainable Energy & Packaging, actively promoting solar energy utilization and increasing biomass usage. Their packaging is lightweight, recyclable and compostable, aligning with Circular Economy principles. In 2023, the company member of SCGP expanded the installation of solar energy to 09 other companies such as Vina Kraft Paper Co., Ltd. (VKPC), Duy Tan Plastics Manufacturing Corporation Joint Stock Company (DUYTAN), Tin Thanh Packing Joint Stock Company (BATICO), Bien Hoa Packaging Joint Stock Company (SOVI), Alcamax Packaging (Vietnam) Co., Ltd. (Alcamax), AP Packaging (Hanoi) Co., Ltd. (APPH), New Asia Industries Co., Ltd. (NAI), and Go-Pak Paper Products Vietnam Co., Ltd. (Go-Pak) as well as using biomass and solar energy to reduce greenhouse gas emissions by 108,000 tons of carbon dioxide equivalent per year. These business units collectively demonstrate SCG’s commitment to ESG practices, positively contributing to environmental sustainability, social engagement, and robust governance.
Aside from sharing its best practices to deploy the circular economy model, SCG also showcases Green Exhibition solutions at the Vietnam Circular Economy Forum 2023. The exhibition demonstrates various sustainable creations from the recycled materials, by paper including Standees, a National Action Plan Circular Economy Board, photo backdrop. Especially, the first time the recycled plastic pallets repurposed by Duy Tan Plastic, a member of SCGP, has been installed at the big event and Golden Pothos Pots are recycled plastics made by SCGC. These materials will then be returned to the SCG’s plants to undergo the appropriate circular economy processes.
SCG believes that NAPCE will be a significant step for Vietnam to come closer to the Net Zero goal, and commits to be a part of this acceleration process. With collaboration, SCG will work together with our partners to make the Circular Economy a reality in Vietnam, for a sustainable future starting from today.
Event images
The Vietnam Circular Economy Forum 2023, led by MONRE, has the participation of government leaders, major enterprises, non-governmental organizations (NGOs), and relevant parties, all coming together to discuss and share insights on CE
Mr. Roongrote Rangsiyopash, President and Chief Executive Officer of SCG also gave a speech highlighting the crucial role that ESG factors can play in driving the circular economy transformation.
A unique Green Exhibition showcasing numerous products made from recycled paper and recycled plastic by SCGC and SCGP.
SCG demonstrates its commitment to practicing the Circular Economy in its business units through a display area made of recycled materials at the event.
About National Action Plan on Circular Economy (NAPCE)
Building on the success of the 2022 Kick-off Conference on the NAPCE, the Vietnam Circular Economy Forum promises to be a pivotal event on the country’s sustainability journey. Spearheaded by the MONRE, domestic and international partners collaboratively discuss the Draft National Action Plan on Circular Economy (NAPCE) and its implementation roadmap. The forum is an opportunity for exchanging ideas and deliberating on suitable approaches and financial mechanisms to promote CE practices across various sectors, from central to local levels. This aims to ensure the fulfillment of Vietnam’s international commitments regarding climate change, natural resource conservation, biodiversity, and environmental pollution reduction. CE in practice models, implemented through an Environment – Social – Governance (ESG) approach, will be highlighted as specific examples showcasing effectiveness in addressing the global challenges currently faced by Vietnam. The forum will also shed light on financing mechanisms such as promoting carbon markets, mobilizing innovative financing for biodiversity and ecosystem services, as well as engaging private participation in waste management activities. These are identified as crucial resources for advancing CE practices in the upcoming.
SCG, one of the leading conglomerates in the ASEAN region, comprises three core businesses: Cement – Building Materials, Chemicals (SCGC), and Packaging (SCGP). With more than 200 companies under its umbrella and approximately 57,000 employees, SCG creates and distributes innovative products and services that respond to the current and future needs of consumers. SCG began its business operations in Vietnam in 1992 with a trading business and gradually expanded investment in diversified businesses in cement-building materials, chemicals, and packaging.
Today, with a total of 26 companies across Vietnam driven by more than 15,500 employees, SCG offers a variety of premium products and services to markets. SCG Cement – Building Materials offers a wide range of cement – building materials and construction & life solutions under the SCG, PRIME and COTTO brands. SCG Green Choice certified green materials meet the needs of building houses safe, comfortable and environmentally friendly. SCG’s building and lifestyle solutions will bring energy savings, better performance and sustainability to the building. In the chemicals business, SCGC offers a full range of petrochemical products ranging from upstream production of olefins to downstream production of 03 main plastic resins: polyethylene, polypropylene, and polyvinyl chloride, and fabricated products such as pipe and fittings under notable industrial brands Long Son Petrochemicals Company Limited (LSP), Binh Minh Plastics, TPC Vina – Plastic & Chemical Corp., LTD (TPC.VINA) and others. In the packaging business, SCGP offers Packaging Paper, Fiber Packaging, Consumer and Performance Packaging (CPP), Food service Products, design, printing and other diversified solutions under well-known brands such as Duy Tan member of SCGP, BATICO member of SCGP, SOVI member of SCGP, and others.