SCGP’s revenue from sales for the 1st quarter of 2022 continued to grow, reaching THB36,634 million, up 34% from the same period of last year as a result of gradual recovery of demands in ASEAN amid global volatilities. The Company continued to focus on cost management while cautiously expanded the business with goal to reach annual revenue of THB140,000 million as well as enlarged the B2C customer base. Meanwhile, SCGP’s effort to become leader in ESG was elevated by the submission to join the Science Based Targets initiative (SBTi), a renowned international multi–stakeholders climate initiative to achieve Net Zero in 2050.

Mr. Wichan Jitpukdee, Chief Executive Officer, SCG Packaging Public Company Limited, SCGP, reported that the Company continued to grow with revenue from sales reaching THB36,634 million, an increase of 34% compared to the same period last year. Meanwhile, profit for the quarter stood at THB 1,658 million, a decrease of 22% from the same period last year and EBITDA of THB4,887 million, a decrease of 7%. However, excluding extraordinary adjustment in the previous quarter, profit for the period and EBITDA of Q1/2022 increased QoQ.

Factors contributing to the increase of revenue from sales include the continuous growth of business stemming from mergers and partnerships (M&Ps) with Duy Tan, Intan Group, and Deltalab. Also contributing are increased sales from the Integrated Packaging Business in ASEAN of both polymer and paper packaging products due to rising demands of consumers goods, exports of ready meal, frozen food, and pet food as well as higher prices of paper pulp as a result of surge in restocking demand amid concerns over disruptions to the supply chain.

Profit for the quarter was lower than the same period of the previous year, the rising costs of raw materials and energy were contributing factors, which affected the entire industry. However, SCGP has maintained an effective and proactive cost management throughout the supply chain. The Company entered into long-term contract to acquire coal for future usage in sufficient quantities to ensure energy security and lessen impacts from price volatility. Moreover, the use of renewable energy has been continuously increased. Other mitigation efforts for ongoing uncertainties include a vigilant cash and working capital management and prudent consideration of investment projects.

Heading toward the rest of 2022, demands for packaging in ASEAN are trending up as governments start relaxing COVID-19 restrictions and opening up their countries, positively impacting the manufacturing sector and encouraging more cross-country traveling. Yet, if the Russia-Ukraine conflict persists, the heightened costs of commodity, energy and raw materials would continue to be headwind for manufacturing sectors.

Nevertheless, SCGP is determined to achieve the target of sales revenue at THB140,000 million and to keep on expanding its operations with capital expenditure budget of THB20,000 million for the current year under its five-year (2022-2026) investment plan with a total of THB100,000 million. Investment activity will be carried out with thorough consideration, focusing on downstream packaging industries that show long-term potential for growth benefiting from changing consumer behaviors.

SCGP also commits to business continuity management to minimize internal and external risk exposures while relentlessly pursues operational excellence, value creation from business alliances, and efficient cost management throughout the supply chain. Attention is also paid to liquidity management to ensure financial stability amid the rising interest trend in order to steer the business toward its short- and long-term goals.

Importantly, SCGP pays special care and consideration to the Environmental, Social and Governance (ESG) in its business operations. In the first quarter of 2022, SCGP has officially submitted our intention to join Science Based Targets initiative (SBTi), a renowned international multi-stakeholders climate initiative which help clearly-defined pathway for more than 2,000 businesses around the world to reduce greenhouse gas (GHG) emissions while prevent the worst impacts of climate change in line with the Paris Agreement goals. This is part of our long-term efforts to embed science-based targets in the fundamental of sustainability management along with the Net Zero in 2050 commitment.

Mother Earth is clearly urging a call to action. Nature is suffering, extreme heat, wildfires and floods, as well as a record-breaking Atlantic hurricane season, have affected millions of people. Even these days, we are still facing Covid-19, a worldwide health pandemic linked to the health of our ecosystem.

Climate change, man-made changes to nature as well as crimes that disrupt biodiversity, such as deforestation, land-use change, intensified agriculture and livestock production or the growing illegal wildlife trade, can accelerate the speed of destruction of the planet.

For this International Mother Earth Day, let’s remind ourselves – more than ever – that we need a shift to a more sustainable economy that works for both people and the planet. Let’s promote harmony with nature and the Earth. Join the global movement to restore our world!

Source: https://www.un.org

Joining with 190 countries around the world in “EARTH HOUR 2022”on 26 March at 8:30 – 9:30 PM.

Switch off your lights to stand united for each other & the one home we all share.

Started in 2007 by WWF and partners as a symbolic lights-out event “EARTH HOUR” in Sydney, Australia, to raise awareness of energy efficiency and climate change. With 2.2 million participants, carbon emissions were reduced to the equivalent of 48,000 cars, reducing electricity consumption by 10% compared to normal times. EARTH HOUR is now one of the world’s largest grassroots movements for the environment. Held every year on the last Saturday of March, it engages supporters in more than 190 countries and territories all over the world, all taking action to ensure a brighter future for people and the planet.

For Thailand, we started participating in the EARTH HOUR campaign since 2008 and has continued to do so until now. This year, activities are scheduled. On Saturday, March 26, 2022, turning light off for 1 hour from 8:30 PM to 9:30 PM to show the power of collaboration to the international community, to recognize the intention of Thailand to help reduce global warming practically and continuously.

Water is an essential resource for SCGP’s business operations. Regarding the use of water resources with the most value and most significant benefit, SCGP has applied the 3R principle to improve the production process to reduce the amount of water, reuse, and recycle the water used in the production process, including the restoration of the natural water resources. To discharge water to public sources, SCGP strictly complies with laws & regulations to prevent any impact on the environment or communities. Especially in today’s climate change conditions, which has a significant effect on water management, such as unseasonal and erratic rainfall patterns, no rains at the headwater area, depletion of water volume in the dams. Coupled with the demand of water consumption due to the increasing trend of the world’s population creates a water shortage in the manufacturing process and nearby communities. SCGP is committed to leveraging the capability to manage the water through the Integrated Water Management Working Team comprising of representatives from every business to formulate a strategy to address water-related risks and water usage efficiency. There is a function unit for water-related risks – monitoring, working with the government and industry sectors, with digital technology adoption, and creating innovation to increase water usage efficiency in the production process and reuse the treated water.

We now understand the vital link between gender, social equity and climate change, and recognize that without gender equality today, a sustainable future, an equal future and remains out of reach. Women and girls experience the greatest impacts of the climate crisis as it amplifies existing gender inequalities and puts women’s lives and livelihoods at risk. Across the world, women depend more on, yet have less access to, natural resources, and often bear a disproportionate responsibility for securing food, water, and fuel. As women and girls bear the burden of climate impacts, they are also essential to leading and driving change in climate adaption, mitigation and solutions.  Without the inclusion of half of the world’s population, it is unlikely that solutions for a sustainable planet and a gender equal world tomorrow will be realized. 

SCGP also supports the UN Women’s concept, we believes gender equality is one of key foundations for a peaceful, prosperous and sustainable world.

Source: https://www.unwomen.org

SCGP’s representative, Mr. Soonthorn Yongvibulsiri, ESG and Sustainability Director signed MOU to join “Project to promote the business sector to reduce greenhouse gases by setting scientific goals (Science-based Target: SBT) Fiscal Year 2022” in collaboration with Thailand Greenhouse Gas Management Organization (Public Organization) or TGO Center of Excellence in Eco-Energy or ECEE Faculty of Engineering Thammasat University and 7 pilot organizations. Setting corporate greenhouse gas reduction targets and plans in line with the global greenhouse gas target of 1.5 or 2 degrees Celsius under the Paris Agreement. TGO and ECEE will support and provide consultation including certification of the organization’s greenhouse gas reduction targets under the Thailand Carbon Neutral Network or TCNN for participating organizations. This is to demonstrate commitment and reinforce the SCGP’s operation follows ESG framework and Net Zero target by 2050.

SCGP received the Marketing Campaign of the Year award from the “Marketing Award of Thailand 2021” stage organized by the “Marketing Association of Thailand” in the category of “Sustainable Marketing Campaign Excellence”, Silver level from Paper X “Old for New” campaign appeals to environmentally friendly consumers, joining forces with partners to provide left over paper solutions, also create an experience that makes it convenient for consumers to participate in recycling. There were a total of 73 candidates from 44 leading organizations across the country joining this competition. This award reflects our determination to develop solutions to meet consumer needs while taking care of the environment and society to grow together in a sustainable way according to the ESG.

Ministry of Industry, along with its 7 departments, joins hand with SCGP in launching the project called “80 Years of Ministry of Industry, 8,000 Kilograms of Recycling and Returning to The Society” by Mr.Kobchai Sungsitthisawad-Permanent Secretary, Mr.Tawan Taweethavornsawas-Assistant Permanent Secretary and Mr. Wichan Jitpakdee-Chief Executive Officer of SCGP. In order to promote efficient use of resources and bring used paper from each department into recycling process before making them into new products for public use such as Copy Paper, Paper Field Hospital Bed, Student Desk Set, Dining Table Set and etc. The project aims to embrace the BCG Model to optimize resource utilization, and become a pilot project from the public sector that concretely empower other government agencies and entrepreneurs to follow. From now until August 2022, the recycling drop points are installed in every departments.  After gathering the used materials, SCGP will use SCGP Recycle to calculate, collect, and recycle them.

SCGP determines to create innovations for consumers and a sustainable world while caring for the environment and social development, based on transparency and accountability according to ESG (Environmental, Social and Governance) framework, which is in line with the BCG Model. This is another project that arises from the cooperation between different sectors to take care of the environment and build a livable society and a sustainable world together.