The impacts of climate change are no longer a distant concern. News of disasters and environmental issues worldwide indicate a sense of urgency requiring all parties to “take action” today to reduce environmental impacts and transition to Net Zero. In response, TCP Group has organized a Sustainability Forum to promote collaboration within the food and beverage sector, with the theme of “Net Zero Transition… From Commitment to Action.” The event also included a separate session for partners to share their strategies and practical approaches that can be applied to help Thailand transition to Net Zero and more rapidly create a better world.
Dr. Thanapat Panthanapratez, Chief Executive Officer at Supply Chain Guru shared his industry insights, emphasizing that sustainability will soon become a business norm, much like ISO standards which businesses are already familiar with. This requires integration within the organization and with external partners. All partners in the supply chain should get involved. This should also be viewed as an opportunity and investment rather than an obstacle.
“For example, delivering goods to customers without interruption is only possiblewhen supply chains operate without disruptions. Today, customers, markets, and society are constantly changing. The fact that we have survived to this day shows that sustainability actions are feasible for a business. This will not only appeal to our existing customers but allow us to attract new ones. Sustainability is not a new concept, it is close to us and can be implemented step by step, making today better than yesterday, and better tomorrow,” said Dr. Thanapat.
Dr. Thanapat also explained about the 10 principles of sustainable supply chain management as prescribed by the UN Global Compact (UNGC), which is in line with Thailand’s labour and environmental laws. In fact, Thai entrepreneurs have been aligning their practices with these principles. To ensure that their actions are effective, entrepreneurs are advised to learn more about UNGC practices and draw lessons from successful organizations. Most importantly, it is about adopting the mindset to take concrete actions.
The 10 principles of sustainable supply chain management according to the UN Global Compact (UNGC) are:
- Human Rights involves two principles: Businesses should support and respect the protection of internationally proclaimed human rights, and make sure that they are not complicit in human rights abuses.
- Labour involves four principles: Businesses should uphold freedom of association and the effective recognition of the right to collective bargaining, the elimination of all forms of forced and compulsory labour, the effective abolition of child labour, and the elimination of discrimination in respect of employment and occupation.
- Environment involves three principles:Businesses should support a precautionary approach to environmental challenges, undertake initiatives to promote greater environmental responsibility, and encourage the development and diffusion of environmentally friendly technologies.
- Anti-Corruption involves one principle: Businesses should oppose corruption in all its forms, including extortion and bribery.
Lessons from TCP Group – From Commitment to Action
Kajornsak Pliensakul, Supply Chain Division Director of TCP Group, revealed that in moving towards its Net Zero goal, TCP Group remains focused on reducing environmental impacts while driving positive impacts in four main areas:
- Sustainable energy through energy management improves production processes, which in turn, reduces energy loss. It is important to utilize renewable energy from biomass fuel and install solar rooftop panels, invest in smart factory systems for both the headquarter in Thailand and at factories in China, ultimately receiving LEED certification, and also transition to electric vehicles (EVs) for logistics systems.
- Sustainable packaging, such as glass bottles, plastic bottles, and aluminum cans, can reduce the use of materials. TCP Group has already stopped using colored bottles and currently uses paper cartons certified by FSC standards. The company effectively manages its packaging through collaborations with business partners like Aluminum Loop and the civil society, IUCN, in running a community waste management project in Ranong province. At the industry level, TCP Group has collaborated with the Thailand Institute of Packaging and Recycling Management for a Sustainable Environment (TIPMSE), the Federation of Thai Industries.
- Water sustainability by reducing waste water discharge and returning more than 15 million cubic meters of water to communities through the “TCP Embracing Thailand’s River Basin” project.
- Increased TCP Group’s healthy products ratio to 70% of the total product line-up to promote health, well-being and sustainability for consumers.
Tips for entrepreneurs: Energizing supply chains to “Take Action Today for a Better Tomorrow”
The partners of TCP Group, including executives from BIG, Mitr Phol Sugar, and Thai Malaya Glass (BJC Glass), shared their experiences to inspire audiences to take practical action, so that other businesses can embark on their sustainability journey.
- Establish a code of conduct
Framing the direction will make it easier to get started. Worrawat Sriyook, Vice President – Corporate Sustainability, Mitr Phol Sugar Corporation., Ltd. recommended that a business start from where they feel is feasible, probably by collaborating with some partners and focusing on certain areas initially, establishing a code of conduct, prioritizing issues, and taking gradual steps. The important thing in working on sustainability is to be specific as there are no competitors in this area. Major corporations have disclosed their footsteps allowing other businesses to follow. A business can start small and expand to other areas later on. - Assess risks and set potential goals
A question may arise on where to start as there are 17 SDG principles to consider. Thippawan Angsiri, Assistant Vice President – Safety, Health and Environment at Thai Malaya Glass Co., Ltd. said that a business should outline their sustainability risks, then take priority action in each area. She also advised to set measurable goals, so that they can be followed up and to achieve targets. For example, Thai Malaya Glass focuses on climate change, waste, and packaging. The company then took action in these areas first, and can subsequently focus on other areas. She stressed that it is important to enhance employee awareness through educational programs, as it is possible for an organization to drive sustainability with the knowledge and engagement of its workforce. - Take action today
Getting started is difficult but organizations must adapt, so that they can embark on a sustainable journey. Worrawat believes that businesses which use a lot of fossil fuels should start immediately, as their business partners or banks are likely to make this a priority in the future. Take the carbon tax as an example. If carbon emissions reach the point that it must be taxed, our business may have to buy from low-carbon emission organizations, which means that our business will have to pay competitors.
Thippawan stressed the need to take action saying that, “We are the first group of people affected and will be the last to tackle the issue. So, we must act today to save the planet for our children in the future. Take action today for tomorrow.” - Make a bold investment for the future
Taking action on sustainability is a forward-looking approach. Piyabut Charuphen, Mangaging Director at BIG, shared his views on investing in the future, noting that, “Sustainability is an opportunity to grow while taking care of the environment and society. We should be looking 10- 20 years ahead about what we can invest in. If we are not committed and start today, it will be too late in the next 10 years. I believe that businesses will discover important opportunities.” - Collaborate with partners
Every participating organization agrees that collaboration with partners is crucial. An organization can start building partnerships on a possible scale, in order to build synergies both within and outside the organization ensuring the service supply chain is uninterrupted.
Thippawan said, “It is important to have a network of partners. When we walk together, we can go far and fast. For example, we co-designed lightweight products with partners to reduce the use of raw materials or resources, reduce transportation costs because the bottles are lighter, and reduce greenhouse gas emissions. In addition, we are sustainably managing waste by supporting C3Leng, a waste management platform used by several organizations in getting waste back into the recycling process, which at the same time helps the waste collector earn more. Expanding the use of these tools requires collaboration, which will ultimately reinforce positive impacts.” - BOI honors SCB DataX with prestigious business investment promotion Certificate
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