The circular economy model creates sustainable development at SCG

SCG captures and stores carbon for cement production, prioritizing the use of green materials, and reducing natural resources by 59,000 tons per year.

The representative of the unit said that the concept of circular economy is used for the model: prolonging the life of materials in a closed loop, and avoiding the creation of waste that causes negative impacts on the environment. The transition to a circular economy aims at sustainable development and responding to climate change.

Currently, SCG implements circular economy in three core business sectors: cement-construction materials (Cement-Building Materials – CBM), petrochemicals (SCGC) and packaging (SCGP). In each industry, SCG applies ESG 4 Plus – an expansion model based on the ESG strategy (environment, society, transparent governance). This plan includes four roadmaps: aiming for net zero emissions, green development, and reducing inequality – promoting cooperation and fairness and transparency in all activities.

In the production of cement-construction materials, the group applies technology to capture and store carbon. All overall production processes prioritize the use of green fuel and materials. The results include an environmentally friendly SCG Green Choice labelled product line that meets effective recycling criteria, reducing 59,000 tons of natural resource consumption each year.

The unit announced that two improvements including the exhaust gas recovery system and the replacement of clinker raw materials in cement production with fly ash help reduce emissions of 115,000 tons of CO2 per year.

SCG ứng dụng phát triển bền vững góp phần tạo kinh tế tuần hoàn - 1 — SCG Green Choice cement. Photo: SCG

Consistent with the above strategy, SCG improves technology and produces sustainable petrochemicals. Currently, the group’s petrochemical industry (SCG Chemicals – SCGC) aims to become the leading environmentally friendly polymer solution provider in ASEAN; output of one million tons by 2030. Currently, the SCG Green Polymer product line reduces greenhouse gas emissions by about 60,000 tons of CO2, according to the group’s announcement.

The first integrated petrochemical complex in Vietnam belongs to Long Son Company Limited (LSP), a member company of SCGC that also carries out many social projects. Over the years, the unit and the Ba Ria – Vung Tau provincial government have allocated 75 billion VND for social activities in the area.

SCG ứng dụng phát triển bền vững góp phần tạo kinh tế tuần hoàn - 2 — LSP project is located in Ba Ria – Vung Tau province. Photo: SCG

The sustainable development strategy helps SCG Packaging (SCGP) become one of the leading multinational consumer packaging suppliers. SCGP gradually promotes the use of green energy at 9 member companies, expanding the installation of solar power systems this year. This activity helps reduce greenhouse gas emissions of this industry by 20,855 tons of CO2 per year.

Prioritizing the use of biomass fuel to replace coal in production alone also helps reduce about 87,750 tons of CO2 per year. SCGP also creates a sustainable packaging line that can be recycled and decomposed organically to be environmentally friendly.

SCG ứng dụng phát triển bền vững góp phần tạo kinh tế tuần hoàn — Products of the exhibitor at Circular Economy Forum 2023. Photo: SCG

At the 2023 Circular Economy Forum taking place on November 16 in Hanoi, SCG brings many green application initiatives. Items at the event such as vertical banners, information boards, overall backdrops, photo backdrops… are designed from recycled paper and plastic from SCGC and SCGP member companies.