Page 287 - Social Enterprise A New Business Paradigm for Thailand

SCG evaluates and prioritizes sustainability issues based on topics deemed important by both
internal and external stakeholders. These are assessed alongside risk factors and SCG’s own
sustainability concerns across the entire value chain. The company references the international

sustainability reporting framework, the Global Reporting Initiative (GRI) Standards. In 2018, SCG
identified eight key sustainability issues: (1) forest management, (2) greenhouse gas
management, (3) energy management, (4) product and service responsibility, (5) innovation
and technology, (6) customer experience, (7) human rights, and (8) safety.

Social issues are one of three core dimensions overseen by a dedicated committee known as
the Social Excellence Committee (one of the three dimensions prioritized by SCG). This
committee recognizes that “One of the challenges in terms of social sustainability is how to
foster engagement with communities and society. We believe that the optimal strategy is to
integrate social issues into business strategies. SCG persists in improving our operational

systems to amplify positive impacts on society in accordance with international frameworks…to
ensure living and growing together in harmony” 184

In addition, various social and environmental initiatives were presented under four main
themes:

(1) Business leadership for transformation through innovation, such as digital transformation,
building collaborative networks to generate and co-develop innovations with other
organizations, including research centers, universities, and experts, and investing in the
development of new businesses. These efforts include high-value product R&D, expansion into
startups and advanced future-oriented technologies, and fostering an internal innovation

culture. For example, training employees in design thinking and launching the “Hatch-Walk-Fly”
program to support in-house startups. This program allows SCG employees to pitch ideas and
develop them into new business models with mentoring from SCG and external partners. In
2018, the Hatch phase included 35 teams (e.g., MeZ, an online agricultural marketplace
platform connecting farmers directly with consumers), and the Walk phase included nine teams.
(2) Enhancing quality of life by responding to consumer needs through analysis of diverse
perspectives and requirements. This included developing sustainable innovations, raising safety

standards, and ensuring equal treatment of all people based on human rights principles.
(3) Building a resilient society by fostering participation from all sectors, supporting and
developing the capabilities of business partners, strengthening community capacity, and
initiating model projects for sustainable social development.
(4) For a thriving planet, by setting targets for greenhouse gas reduction, advancing the circular
economy, investing in environmental R&D and innovation, and supporting biodiversity
restoration.

184 SCG Sustainability Report 2021, page 36
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