What are SCG’s ESG (environmental, social, and governance) plans / initiatives and efforts towards green growth and sustainable development in Vietnam to help the country fulfill its commitments?

At the 26th, 27th, 28th, and 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP), Vietnam affirmed its commitment to achieve net-zero emissions by 2050. And Vietnam is increasingly showing its determination to realize its commitment. SCG, as a business operating in Vietnam, is proud to align with this national vision by implementing comprehensive ESG initiatives and promoting green growth throughout green productsand green processes.

Green Products: SCG has launched innovation with Low Carbon Products. The introduction of SCG Low Carbon Super Cement in Vietnam exemplifies our commitment to reducing carbon emissions by 20 per cent during the production process through advanced green technologies. This product meets sustainable building standards and aligns with Vietnam’s net zero emissions target.

Sustainable Packaging Solutions: SCG has developed eco-friendly packaging, such as Green Carton and mono-material plastic packaging, both of which are fully recyclable.

Green Processes: We have invested in renewable energy. Our member companies have integrated a 40 MW solar power system, generating renewable energy and significantly reducing carbon emissions.

Enhancing energy efficiency in production by implementing waste heat recovery systems in our cement plants, these systems reduce CO₂ emissions by approximately 70,000 tons each year, demonstrating our commitment to sustainability throughout our operations.

Through collaboration with the Vietnamese Government and stakeholders, SCG actively participates in forums such as the Vietnam Circular Economy Forum and the ESG Symposium in regional countries like Thailand and Indonesia. These engagements allow us to share best practices and promote ESG principles to drive the transition to a sustainable future, creating inclusive green growth in line with our corporate commitment to fostering sustainable economic, social, and environmental growth without leaving anyone behind.

What are the advantages and prospects for Vietnam to implement these plans?

Vietnam has several advantages that enhance its capacity to implement sustainability plans.

The Vietnamese Government’s commitment to sustainability, as demonstrated by the National Green Growth Strategy and legal frameworks for green financing, creates a favorable environment for businesses.

The government is also proactive in introducing laws that promote awareness and encourage enterprises to align with circular economy goals. For instance, Vietnam has introduced a clear direction regarding green taxes, green taxonomy, and carbon environmental taxes. These policies emphasize advancing towards sustainability. To further this effort, the government should establish legal frameworks to provide special incentives and attract green financing, the latter of which is essential for funding climate adaptation projects and promoting sustainable business practices.

Moreover, Vietnam has significant potential in renewable energy, as there are many investment and expansion plans for the production of these energy sources. Domestic and foreign manufacturers, with the need to reduce their carbon footprint, will consider this a favorable condition for investing and contributing to Vietnam’s overall emission reduction goals.

What challenges and difficulties do businesses like SCG face?

Despite the advantages, several challenges may impede progress of circular economy development. The first is infrastructure constraints. Existing infrastructure may not fully support the widespread adoption of renewable energy solutions or the efficient waste management systems necessary for a circular economy. The second is financial barriers. Accessing adequate funding for green projects can be challenging, particularly for smaller enterprises that may struggle with financing options. And the third is public awareness gaps. Increased public education on sustainability practices is needed to ensure community engagement and support for green initiatives.

How do you view the Vietnamese Government’s support and policies for businesses to develop ESG plans / initiatives and efforts towards green growth and sustainable development?

The Vietnamese Government strongly commits to businesses in developing circular economy plans. Policies like the National Green Growth Strategy set clear targets for reducing emissions across multiple sectors. To accelerate ESG adoption and green growth, the government could consider implementing green finance initiatives or establishing a circular economy fund. Investments in carbon emissions reduction or energy efficiency improvements often requiresignificant financial resources.

The government should also offer special incentives such as tax breaks and subsidies for businesses implementing ESG frameworks. Such measures could incentivize investors, particularly small and medium-sized enterprises (SMEs).

Additionally, establishing an ESG ecosystem between various stakeholders and communities would foster collaboration, knowledge-sharing, and collective action, amplifying the impact of sustainability initiatives and ensuring inclusiveprogress. SCG, through innovative solutions and strategic partnerships, is committed to promoting inclusive green growth and creating a more sustainable and resilient future for Vietnam.

The Vietnam Circular Economy Forum is held annually to raise business awareness and promote the development of a circular economy, and continues to affirm the government’s stance on implementing Vietnam’s international commitments in environmental protection and responding to climate change. What are your expectations for the Forum this year? What does this mean for SCG’s development plan in the time to come?

This year’s Vietnam Circular Economy Forum holds significant importance as domestic and international partners gatherto discuss the transition to a circular economy and how to promote such an economic model in Vietnam. I expect the Forum will foster collaboration between businesses, government agencies, and civil society to achieve shared sustainability goals.

Regarding SCG’s upcoming plans, it will draw from its experience in Thailand and promote this among its business partners. These include green products such as SCG Low Carbon Cement, which helps reduce carbon emissions by 20 per cent and meets sustainable building standards. SCG is also developing environmentally-friendly packaging, such as Green Carton, which helps reduce material usage by 15 per cent and is fully recyclable.

In Green Processes, we focus on replacing fossil fuels with biomass in cement, brick, tile, and paper production, with the current biomass usage rate standing at 30-40 per cent. SCG is also investing significantly in rooftop solar power systems to provide clean energy solutions.

At the same time, we focus on developing green communities and raising public awareness, with a pilot model in Long Son commune, southern Ba Ria-Vung Tau province. Through educational campaigns, we encourage waste segregationand management, contributing to building green cities and a cleaner society in the future.