Sustainability: no longer an option but a necessity. That was the central message from leading business figures at the Sustainability Expo 2023 (SX2023), held on a typically hot and humid Thai Saturday at the heart of the Queen Sirikit National Convention Center. The event’s focal point was undoubtedly the Thailand Supply Chain Network (TSCN) Business Partners Conference, during which industry titans lent their insights to the topic: “Self-Applying for Sustainable Business Survival”.
The conference lined up some of the most influential voices in Thailand’s business scene, with each taking turns on the podium. There was Thapana Sirivadhanabhakdi, the distinguished president and CEO of Thai Beverage Plc (ThaiBev), Roongrote Rangsiyopash, the pragmatic president and CEO of Siam Cement Group (SCG), and the insightful Suphachai Chearavanont, the energetic CEO of the diversified conglomerate Charoen Pokphand (CP) Group.
Rangsiyopash of SCG kicked off discussions by highlighting the economic implications of the conflict in Ukraine. He pointed out how it has led to skyrocketing energy costs globally, even amidst a post-pandemic economic thaw. This situation has driven up the cost of food and spiked inflation, nudging countries towards the appealing alternative of renewable energy, and more specifically, harnessing power from the sun leading to lesser utilization of oil and gas for energy purposes.
For Chearavanont of CP Group, placing large bets on sustainability is proving to be sound business strategy. CP Group has been uncompromising in its commitment to manage an overwhelming seven million tonnes of carbon emissions annually. This is an arduous yet worthwhile task and when combined with supply chain partners, the total carbon emissions to be managed balloons to 70 million tonnes annually.
Suphachai proposed that if government policies were supportive of green energy – particularly for small to medium-sized businesses – the path to a significant reduction in carbon emissions would be much shorter. In Thailand alone, only 12% of the United Nation’s Sustainable Development Goals have been accomplished over the last four years. Without incentive-based initiatives to stimulate a minimum annual 4% cut in carbon emissions, Thailand could face a staggering 2 billion baht carbon credit purchase bill in 2030.
ThaiBev’s Thapana stressed the importance of sustainability as visible, particularly amongst the younger generations who are inheriting their future. “As significant pieces of the societal puzzle, big companies bear the responsibility of spearheading sustainable development whilst smaller entrepreneurs help cement the sustainability concept within our communities, prior to proliferating that concept on a larger, global scale,” he stated.
However, at the end of the day, the size of your company doesn’t determine its impact on the environment. Every company, irrespective of its scale, needs to embrace and adapt to the ‘mega-trend’—that of embedding sustainable practices into its core business operations. The moment one company shifts its gear towards sustainability, a chain reaction ensues within the entire supply chain, with everyone feeling the sense of urgency to align themselves with the sustainable principle. Ultimately, everyone’s collective efforts will encourage the development of innovative, sustainable solutions.
Thapana also remarked that the influence of sustainable operations wouldn’t stop at local partners, but would proliferate to regional partners as well. He expressed his belief of an impending shift in the market, “Soon, businesses that are able to serve a range of demands throughout the market, while prioritizing environment-friendly practices, will become the key players in their respective industries.” Echoing Thapana’s sentiment, Rangsiyopash implored business owners to take a leaf out of the book of those who have enjoyed success with sustainable investments, with many countries now implementing sustainable development policies as an effective response to pressing environmental challenges.
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