Business Sector Unites to
Drive Thailand’s Transition to Low-Carbon Society
at CEO Forum: SCG ESG Symposium 2024

These initiatives are as follows: 1) Promoting Sustainable Packaging, 2) Advancing Waste Management, 3) GHG and Waste Reduction in Construction Design, 4) GHG and Waste Reduction in the Construction Value Chain, 5) Supporting SMEs in Adapting to Global Changes, and 6) Energy Transition and the Saraburi Sandbox as a Pilot Area for a Low-Carbon Society. This approach aims to present proposals to the government to accelerate Thailand toward a low-carbon society and elevate the country’s competitive capabilities.
Thammasak Sethaudom, President & CEO of SCG, said that to advance Thailand’s transition to a low-carbon society, SCG has invited representatives from the business sector to provide insights and propose collaborative strategies aimed at driving Thailand toward Net Zero, while creating opportunities and strengthening its competitive advantage. The brainstorming sessions yielded results across six strategic focus areas as follows:

1. Advancing Waste Management: Recycling waste materials to maximize their value is the most effective method of management. Currently, less than 20% of waste materials in Thailand are recycled. To address this, two solutions are proposed: First, managing waste from the source through separation to facilitate recycling, starting with private sector collaboration within buildings and various sites. Additionally, it is recommended that the government introduce regulations, beginning with wholesale markets as a model, and then expand to other sectors before implementing mandatory sorting laws. Another proposal suggests that the government establish an agency responsible for administering Extended Producer Responsibility (EPR) fees, with a clear objective of using these funds to efficiently and transparently manage waste.

2. Promoting Sustainable Packaging: Utilizing packaging made from recycled materials remains a solution with certain limitations, especially for food products, where packaging does not yet support extended shelf life. Therefore, the government should adopt policies that support businesses, such as tax incentives or investment in research and development for the private sector, to develop practical, affordable recycled-material packaging. Additionally, the government should focus on raising consumer awareness, particularly among youth, by integrating environmental education into school curricula. This approach aims to instill in the younger generation an understanding of the importance of environmental stewardship, promoting the long-term use of recycled packaging.

3. Supporting SMEs in Adapting to Global Change: Research indicates that SMEs face limitations in terms of human resources and funding. It is recommended that SMEs view ESG as a business opportunity, enabling them to explore new markets and reach consumers who prioritize environmentally friendly products. Additionally, adopting clean energy can help businesses reduce costs and increase product value. Meanwhile, the government should facilitate access to financing and provide “Green Priority” initiatives to help SMEs accelerate their adaptation, ensuring they do not miss future business opportunities.

4. GHG and Waste Reduction in Construction Design: A three-phase approach is proposed for managing greenhouse gas reduction in building design. The phases are as follows: (1) Upstream, by encouraging building designers to reduce both embodied carbon, which arises from building materials, and operational carbon, generated during the building’s operational phase; (2) Midstream, by offering government incentives such as tax benefits or low-interest loans for low-carbon buildings, and increasing the Floor Area Ratio (FAR) by 5-10% for buildings certified under green standards like LEED; and (3) Downstream, by maximizing the recycling of leftover building materials to re-enter the production process.

5. GHG and Waste Reduction in the Construction Value Chain: Every building has a high product carbon footprint, consumes substantial energy, and emits greenhouse gases across the entire value chain—from construction through to building management. Therefore, collaboration between the public and private sectors is essential. Private sector builders should adopt low-carbon building materials and share the knowledge and importance of reducing greenhouse gas emissions with contractors to strengthen collaboration. Meanwhile, the government should provide clear guidelines for buildings utilizing solar energy, allowing building owners to leverage carbon credits for other benefits or to enhance their competitive edge.

6. Energy Transition and the Saraburi Sandbox as a Pilot Area for a Low-Carbon Society: Saraburi Province, a major cement production hub, must prioritize clean energy transitions in both manufacturing and transportation processes. This requires collaboration among private sector players, such as electric vehicle manufacturers partnering with EV charging station installers. At the same time, the government should play a role in sourcing and supplying clean energy to the private sector to foster a “green infrastructure” ecosystem, including sustainable waste management through a Waste-to-Material approach that maximizes the value of leftover materials through technology. The success of the Saraburi Sandbox can then be extended to other provinces, such as Ayutthaya.

This is a landmark event, as leading private organizations in Thailand, with a combined revenue exceeding Baht 1.25 trillion, have come together to find practical solutions for accelerating Thailand’s transition to a low-carbon society. This will create opportunities and enhance competitiveness for a sustainably growing Thai economy, as ‘the faster we change, the more opportunities we create,’ added Thammasak.