Siam Cement Group (SCG) is Thailand’s largest building material company. It has laid out its investment strategies for the next five year, with a strong emphasis placed on environmental issues. As it seeks to change its business model to be more circular, Siam Cement Group will also make clear its plans.
The company said it would invest 100 billion baht ($2.89 billion) in areas like renewable energy through 2027. It will also continue its efforts to decarbonize its main chemical and building material businesses.
SCG intends to increase its market share in the manufacturing of materials for solar power generation as well as lithium-ion battery for electric cars. It plans to increase power generation by approximately 15 times its current capacity (or 3,000 MW) in the solar power industry by 2027.
Due to its inability to achieve sustainable growth with the current business structure, the company is trying to create a more circular business. This includes a focus on recycling and reducing greenhouse gas emissions. Its cement and petrochemical products are major contributors to greenhouse gas emissions.
Global investors are more strict about evaluating a company’s social, environmental and governance standards. Corporations that do not adhere to these standards can be denied investment.
SCG has set the goal to achieve net zero greenhouse gas emissions by 2050. The company collaborated with Japan’s Nomura Research Institute in September to conduct an experiment to see how much carbon dioxide was emitted from its distribution network.