Private sector produces three of the best

Banpu won the Gold Class in the coal and consumable fuels sector, Siam Cement Group was recognised as an outstanding business in the construction materials sector and Thai Oil was named Industry Leader in the oil and gas sector. 

 

Banpu has only been included in the DJSI list since September, while Thai Oil Holding has been included since 2013 and has achieved leader status since 2011. 

“With our belief that ‘an industry will be strong only when it is developed in tandem with social and environmental responsibility’, we have implemented a number of measures towards sustainability since the establishment of Banpu, said Chanin Vongkusolkit, the company’s chief executive officer. 

“Originally, we decided to participate in the DJSI assessment because we wanted to seek opportunities for improvement by benchmarking our sustainability practices against industry peers,” he said. 

“Then, we learned the future trend of sustainability from the DJSI assessment items, so we can prepare ourselves for the future.” 

In the coal and consumable fuels sectors, the weight of sustainability amounts to 23 per cent in economic, 36 per cent environmental and 41 per cent in social dimension.

Atikom Terbsiri, Thai Oil’s chief executive officer and president, said his company was named the industry leader in the oil and gas industry sector because it had pursued a sustainable growth strategy.

 “Thai Oil has long placed priority on social development of local communities, the ability to gain subsequently strong stakeholder engagement with local communities surrounding operational sites,” he said. “We also set best practice in always carrying out business by considering the impact on operational areas.”

The other seven companies making up the index are PTT, PTT Global Chemical, Central Pattana, IRPC, Minor International, PTT Exploration and Production and Thai Union Frozen Products. 

Across Asean, only one company each from Indonesia and Malaysia, as well as two from Singapore, are included in the index, according to the recent annual DJSI review conducted by S&P Dow Jones Indices and RobecoSAM. 

The DJSI is a security index established by Dow Jones to assess and benchmark the sustainability performance of the world’s leading companies. It carries the conviction that DJSI-listed companies with sound sustainable practices have a better chance to excel in the long run. 

The financial performance of leading sustainability-driven companies worldwide will be tracked, and leading funds use the DJSI as a gauge to make prudent long-run investment decisions.

Selection to the DJSI is based on market capitalisation and in-depth analysis of a company's economic, social and environmental aspects, with a focus on long-term development of corporate value. 

Each year, over 3,300 of the world’s largest companies are invited to participate in the RobecoSAM Corporate Sustainability Assess-ment. Evaluations are made of each of the 59 industries – then the company with the highest score is named the RobecoSAM Industry Leader.

They are considered to be the best prepared to seize the opportunities and manage the risks deriving from economic, environmental and social developments. When announcing the result for the latest year – which marked the 20th anniversary of the assessment – Michael Baldinger, CEO of RobecoSAM, said “RobecoSAM has shaped the sustainability investing landscape over the past 20 years. That’s why we now state: We are Sustainability Investing.”

The Thai companies named the industry leaders all aim for the same goal – striving to maintain the status in the years to come.

SCG is committed to be the model of sustainability for other businesses, in the belief this would ensure a good balance of economic, social and environmental growth to allow for competition in a real and sustainable way in Asean. Annual forums focusing on sustainable development have been held since 2012, to spread best practices.

“SCG is ready to be a good model for sustainable development and we are willing to share our know-how and experiences to other corporations interested in collaborating to make Thailand and our Asean region a true sustainable economy,” said Roongrote Rangsiyopash, chairman of the SCG Sustainable Development Committee.

While claiming sustainability practices have been the company’s focus for years, Banpu’s Chanin acknowledged that to remain the industry leader, some focus must be placed on the three main dimensions: economic, social and environmental.

In this regard, Banpu is striving to further improve cost efficiency and productivity, and improve its integration in supply chain management strategy. With contractors, training on heavy machine maintenance is carried out for community people who could benefit from it to get a job later. 

“This is not merely occupational development, but a process of capacity-building and self-improvement for people, which enhances their capabilities in the long run. We encourage them to learn how to fish, so they will be able to feed themselves once the mine is closed,” Chanin said.

For the environment dimension, the total productive maintenance practices would be enhanced at all work sites, striving towards “least waste”. 

As the concept demands lesser amounts of resources, this will lead to lower amounts of waste generated, contributing to environmental friendliness.

“For our 1,200MW Shanxi Lu Guang power project, we’ll employ the state-of-art, high efficiency “Ultra Super Critical Technology,” which consumes fewer amounts of coal, while being more environmental friendly with lower emissions. The project is in development with our partners in China,” Chanin said.

The social dimension, he said, concerns both company resources and society. From its beginning 30 years ago, Banpu has upheld workforce diversity and equal opportunities: gender, nationalities and demographics.

In 2014, an Indonesian was appointed a director of the Thai company, to increase the national diversity in the board of directors. Banpu also plans to appoint a female director at the shareholders’ meeting in April. 

To ensure human rights, the UN Framework and Guiding Principles on Business and Human Rights is being adopted. To ensure that the livelihood of communities around coal mines would be restored, detailed mine closure plans will be finalised five years ahead of the closing date. 

“For Banpu, sustainability means long-term existence. It is our ambition not just to exist in the long run, but to create sustainable growth and development for society, the environment, and our stakeholders.

“Banpu believes that our proactive nature, quality leadership, internationally accepted framework and flexibility are fundamental to our sustainability, enabling us to become a dynamic regional player in the energy industry,” Chanin said.

 Asean companies in DJSI index