SCG Archives - SustainCase - Sustainability Magazine Insights on how you can protect the environment, maintain and increase the value of your company, through a structured CSR/Sustainability process with the use of the GRI Standards. Learn how Today's Best-Run Companies are achieving Economic, Social, and Environmental Success - and How You Can Too... Wed, 06 Sep 2023 06:00:34 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.2 Case study: How SCG creates economic value for its stakeholders https://sustaincase.com/case-study-how-scg-creates-economic-value-for-its-stakeholders/ Wed, 06 Sep 2023 06:00:34 +0000 https://ccprowebs.com/new-sustaincase.com/?p=15305 SCG is a leading business conglomerate in the ASEAN region, committed to conducting business in line with good corporate governance and sustainable development principles throughout 100 years. This case study is based on the 2021 Sustainability Report by SCG, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing. Abstract SCG seeks, through its operations, to deliver products, […]

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]]> SCG is a leading business conglomerate in the ASEAN region, committed to conducting business in line with good corporate governance and sustainable development principles throughout 100 years. SCG develops innovative products, services, solutions, processes, and business models to create added value and meet the needs of all its stakeholders.  Tweet This!

This case study is based on the 2021 Sustainability Report by SCG, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Abstract

SCG seeks, through its operations, to deliver products, services, and solutions that are eco-friendly and create sustainable, long-term value for all its stakeholders. In order to create economic value for its stakeholders SCG took action to:

  • create economic value for employees
  • create economic value for shareholders and lenders
  • create economic value for the government and local government authorities

What are the material issues the company has identified?

In its 2021 Sustainability Report SCG identified a range of material issues, such as corporate governance, business ethics, product stewardship, water management, human rights. Among these, creating economic value for its stakeholders stands out as a key material issue for Keppel.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process s of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups SCG engages with:

To identify and prioritise material topics SCG engaged with its stakeholders through the following channels:

Stakeholder Group                Method of engagement
Shareholders/

Investors

 ·      Annual General Meeting of Shareholders

·      Quarterly analyst conferences and press conferences to report performance

·      A total 28 Non-Deal Roadshow & Conference (virtual conference) for Thailand and abroad investors

·      A total 10 virtual roadshows for Thailand investors

·      Two annual activities for SCG’s Executives to communicate its business strategies and directions to Thailand analysts and institutional investors per year

·      Communicate the company’s performance through the Annual Report, the Management Discussion and Analysis, the Sustainability Report, and SCG’s website

·      Regularly communicate the company’s activities and answer inquiries of investors

·      Regularly one-on-one meeting/ group meeting and conference call with investors

·      Quarterly Virtual NDR & Conference (Total 31 events)
Employees

 

 ·      Annual meeting with CEO

·      Quarterly meetings with Executives for updates

·      Quarterly Leadership Forum

·      Employee engagement survey

·         – A survey conducted by an external consultant every two years

·         – A survey conducted by the Corporate Human Resources Division every two years

·      Conduct a focus group consisting of staff and Executives to identify employee needs to ensure happiness at work every two years

·      Develop an annual engagement plan in each unit to foster employee engagement

·      Activities that foster employee engagement and good experience with the workplace environment (mostly conducted virtually during the COVID-19 outbreak in 2021)

·      Communicate updates to employees through internal communication channels, such as e-mail, LINE Groups, and Employee Connect application

·      Communicate updates to raise awareness of healthcare amid the COVID-19 pandemic through internal communication channels, such as e-mail, LINE Groups, and Employee Connect application
Suppliers and Contractors

 

 ·      Regularly visit contractors and suppliers to exchange ideas and listen to suggestions for improvement

·      Foster safety awareness and promote behavioural change to create safety culture

·      Share knowledge and new trends that may affect the operation of contractors and suppliers

·      Elevate carriers by carrying out annual assessment and development initiatives under the Sustainability Programme every year

·      Develop operational standards for contractors and suppliers and implement digital technology to improve safety amid the COVID-19 pandemic

·      Elevating contractors’ safety standard in workplace and project sites to include services and solutions

·      Elevate contractors’ practices according to the sustainable procurement framework and extend the implementation to abroad
Customers

 

 ·      Receive complaints, suggestions, and other feedback through various channels around the clock, such as via online channels, websites

·      Co-develop products with business customers

·      Provide consultation for home construction, repair, renovation, and extension to customers

·      Develop collaborations with customers in projects that promote social sustainability

·      Conduct regular customer visits and meetups

·      Annual customer seminars

·      Annual customer satisfaction survey
Community

 

 ·      Monthly dialogue with local community to listen to suggestions, feedback, and their needs

·      Annual community satisfaction survey

·      Serve as partner and consultant and leverage the company’s capability to help develop various aspects of communities

·      Integrate the collaboration between communities, experts, the government, and related sectors to produce societal results

·      Conduct site visits, develop models, launch awareness campaigns, and work with all sectors to foster positive behaviours through collaborative projects related to the circular economy
Government Agencies

 

 ·      Listen to opinions and suggestions from the government sector

·      Offer opinions and suggestions towards the rules, regulations, and guidelines issued by the government

·      Foster engagement and share good practices with the government sector to expand their adoption

·      Serve on a panel or a working group of the government sector to propose rules and regulations
The Media

 

 ·      Regularly disclose business information in various aspects, such as quarterly operating results announcements and business press conferences

·      Occasional site visits or CSR activities

·      Support press activities beneficial to society and consistent with SCG’s guidelines as deemed appropriate

·      Engage the media to listen to their opinions and suggestions once or twice every month so as to develop future communication to suit their needs and benefit the general public
Civil Society Sector, Academia, and Opinion Leaders, NGOs ·      Listen to opinions and suggestions from civil societies, scholars, and opinion leaders to improve the company’s operations

·      Participate in projects that promote social sustainability

What actions were taken by SCG to create economic value for its stakeholders?

In its 2021 Sustainability Report SCG reports that it took the following actions for creating economic value for its stakeholders:

  • Creating economic value for employees
  • In 2021, SCG paid 47,921 million Baht for employee compensation comprising salary, wage, welfare and regular contributions.
  • Creating economic value for shareholders and lenders
  • In 2021, SCG paid 22,200 million Baht in dividends to shareholders and 6,758 million Baht in interest and financial expenses to lenders.
  • Creating economic value for the government and local government authorities
  • In 2021, SCG paid 8,430 million Baht in taxes to government and local government authorities such as income tax, local maintenance tax, property tax and other specific taxes.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed

Disclosure 201-1 Direct economic value generated and distributed corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

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  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
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References:

This case study is based on published information by SCG, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://scc.listedcompany.com/misc/sustainability_report/20220304-scc-sdr-2021-en.pdf

Note to SCG: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

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