When sustainability matters: How important is DJSI to business operations and stakeholders?
Today, wherever you look, you will see that sustainability is king. This is because all organizations have to face various issues from environmental challenges, inequality, and shortage of resources, to the health and well-being of people. Businesses cannot be sustained by focusing solely on profit, but must always take into account the impact on the environment, society, and stakeholders. One of the indices utilized to gauge that organizations operate their businesses in a truly sustainable manner and also one of the world's most popular and trusted indices is the Dow Jones Sustainability Indices (DJSI). It is ranked by S&P Global and used to assess the effectiveness of business operations in accordance with sustainable development guidelines - to certify that business operations are managed according to ESG principles; Environment, Social and Governance & Economic, that will support each stakeholder group’s interests and confidence in various aspects as follows:
Why are 'investors' interested in DJSI?
Because the DJSI is an internationally recognized Sustainability Index for listed companies. Organizations that are rated by DJSI are large organizations with tangible and reliable sustainability performance in line with international standards. Therefore, it is of interest to investors - one of the key stakeholders of the company - who want to invest in a business with international standards and has the potential to deliver sustainable returns. The annual DJSI metrics are based on the ESG scores from questions that organizations must answer as well as disclosing sustainability performance data covering Environmental, Social, and Economic and Governance aspects. Additionally, businesses ranked by the DJSI provide investors with the confidence that there is also a reduction in long-term business risks1
The reason why 'customers-partners-business alliances' trust DJSI-ranked businesses
Confidence is possible only when the operation of the organization can be measured and disclosed. Businesses that have been rated by DJSI must set goals, measure, and report their business performance with transparency and taking into account the stakeholders in accordance with the principles of good corporate governance. Furthermore, effective relationships with customers are nourished, innovation development process are in place with product stewardship2 supported by, as an example, a research and product development focused on reducing the impact on the environment and sustainable procurement3, etc., as well as having a good supply chain management. The customers, business partners and business alliances are therefore assured that DJSI-rated companies have the potential to produce and deliver sustainable and environmental-friendly products that is also beneficial to the production process and related parties throughout the Supply Chain.
What do 'Community and Society' gain from DJSI-listed businesses?
Most large businesses cannot afford to forego their involvement with the community and society and must display their responsibility to the community and society through CSR (Corporate Social Responsibility) projects and activities such as donations to help society through hardship or engage in environmental, educational, and health projects. Furthermore, DJSI-ranked companies may pursue activities that create shared values (CSV) with society and the community such as encouraging communities to operate a Social Enterprise (SE) to generate their own income and create employment in the communities that live around the business location.⁵ Organizations may work with their partners to transfer knowledge and allocate resources to support the development of community productivity, and thus ensuring that DJSI-listed businesses support and induce more benefit to the community and society.
Upon understanding how each stakeholder can benefit from a business that is DJSI-listed, then we can proceed to see what GC, as Asia's first international chemical company to be ranked Number One in the world by DJSI 4 years in a row in the Chemicals business, has been doing in ESG projects that are of interest and how they benefit stakeholders?
Driving business sustainably well, and for the good of the world
GC operates on the concept of Circular Economy and aims to reduce greenhouse gas emissions (Decarbonization), by joining forces with alliances specializing in the recycling business and setting up the ENVICCO plant, utilizing world-class technology to produce Food Grade quality recycled plastic pellets. ENVICCO's operations will help reduce plastic waste in the country by 60,000 tons/year which shall benefit the environment, society, and community. The reduction of such waste will in turn help reduce greenhouse gas emissions by an equivalent of 75,000 tons of carbon dioxide or approximately equal to planting 78,000 rai of forests.6
In managing plastic waste, the source of raw materials for the production of recycled plastic pellets, GC aims to raise societal awareness in waste separation and has initiated the “YouTurn” platform for used plastic management. By joining forces with alliances including the government, the private sector, universities and communities, more than 100 Drop Points across the country were set up7 and have collected more than 300 tons of used plastic8 that have been utilized to benefit many projects such as the Plastic Bottles For Doctors Project that converted used plastic bottles into PPE kits to help protect medical personnel during the COVID-19 pandemic, etc..
Furthermore, the Community Waste Model Project was also initiated to holistically manage community waste. GC, in collaboration with the Community Enterprise for Waste Separation Collection Center, Chak Luk Ya Temple Community, Rayong Province, employed the YouTurn platform to manage plastics in a holistic way and established a Recycling Hub at Wat Chak Luk Ya community. There, locals were tutored on proper waste separation. The Hub also has a plastics buy and sell system at work. Currently, up to 2 tons per month of plastic waste is collected9, jobs were created and income was generated for the community. The Project not only helped to supply raw materials to the ENVICCO plant, but also helped to reduce plastic waste in the community.
GC's international businesses has adapted to meet the needs of a sustainable future by focusing on High Value Business (HVB) and Low Carbon Products to reduce greenhouse gas emissions. In this regard, GC has acquired allnex, the world's leading Coating Resins company producing environmental-friendly products such as water-based coatings - used in coating food cans interior and exterior - that also help reduce Volatile Organic Compounds emissions, and Solventborne Resins used to coat wind turbines to help increase weather resistance and help prolong their service life in producing electricity10. allnex is considered to be a sustainable business with outstanding performance and Quality of Earnings.
In transparency of business operations, GC was awarded the distinction of Transparent Organization Reflecting Morals, Ethics, and Integrity (NACC Integrity Awards )11, achieved through good corporate governance practices and standardized risk management processes that lowered investment risks and thus promoted investor confidence.
side by side with society helping society in crisis
When society thrives, so will businesses. GC has always stood with the Thai society throughout various crises, helping people through difficult times and challenges by providing donations and supporting social projects such as the Covid-19 crisis - GC, in collaboration with networks of the public, private, and community sectors and using the Company's expertise in chemicals and plastics, technology and innovation, extended assistance to society in times of crisis in a timely and thorough manner, such as providing more than 4 million sets of waterproof PE gowns to medical personnel in 77 provinces across the country and continuing to do so every time there is an outbreak.12 Flood Crisis - GC promptly provided plastic rowing boats to 23 flood-stricken provinces in the Northeast, Central, Eastern and Southern regions.13 Drought Crisis - GC delivered clean water tanks - produced with InnoPlus brand plastic pellets - in collaboration with government agencies, foundations, charitable organizations and also joined in activities with the community and the Company's customers in drought-affected areas in various provinces nationwide.14 PM 2.5 Crisis - GC, together with the Rajaprajanugroh Foundation Under Royal Patronage, provided 4 models of Air Treatment units to treat polluted air and PM 2.5 to help people in various areas15.
GC continues to operate, develop products, improve technologies and innovation, in response to the challenge of meeting the goal of reducing greenhouse gases to zero (Net Zero). GC wishes to thank everyone for the confidence and collaboration that is leading us towards sustainable growth. This success cannot be achieved by us alone and needs committed and continuous cooperation from our alliances and stakeholders in order to co-create sustainable value for the world.
1 แหล่งอ้างอิง: สำรวจหุ้นไทยในดัชนีระดับโลก DJSI. (2565). เว็บไซต์ https://www.setinvestnow.com/th/knowledge/article/65-investhow-djsi-2021
2 แหล่งอ้างอิง: DJSI Index. CORPORATE SUSTAINABILITY. (2565). เว็บไซต์ http://www.cbcsd.org.cn/sjk/baogao/standard/home/20130718/download/DJSI_Index.pdf
3 แหล่งอ้างอิง: กลยุทธ์ด้านความรับผิดชอบต่อผลิตภัณฑ์ (2565). เว็บไซต์ https://sustainability.pttgcgroup.com/th/environment/product-stewardship/product-stewardship-strategy
4 แหล่งอ้างอิง: GC ปฏิวัติการใช้ทรัพยากรหมุนเวียนอย่างคุ้มค่าและยั่งยืน. (2565). เว็บไซต์ https://sustainability.pttgcgroup.com/th/newsroom/news/896
5 แหล่งอ้างอิง: Sustainability – เรื่องของความยั่งยืน บริษัทหรือองค์กร เขาวัดกันเรื่องนี้อย่างไร?. (2565). เว็บไซต์ https://thepractical.co/sustainability-djsi/
6 แหล่งอ้างอิง: คืนคุณค่าพลาสติกใช้แล้ว ด้วยนวัตกรรม PCR. (2565). เว็บไซต์ https://sustainability.pttgcgroup.com/th/newsroom/featured-stories/877
7 แหล่งอ้างอิง: Portfolio-driven : YOUTURN Operating Model. (2564). เว็บไซต์ https://sustainability.pttgcgroup.com/th/net-zero/decarbonization-pathways/portfolio-driven
8 แหล่งอ้างอิง: YOUเทิร์น..แยกเพื่อให้ ตอบโจทย์เทรนด์โลก ช่วยสิ่งแวดล้อม. (2565). เว็บไซต์ https://sustainability.pttgcgroup.com/th/newsroom/news/851
9 แหล่งอ้างอิง: ภารกิจแก้โลกรวน กู้โลกร้อน ด้วยขยะพลาสติก. (2565). เว็บไซต์ https://sustainability.pttgcgroup.com/th/newsroom/news/903
10 แหล่งอ้างอิง: มุ่งสู่อนาคตกับนวัตกรรมความยั่งยืน. (2565). เว็บไซต์ https://sustainability.pttgcgroup.com/th/newsroom/featured-stories/880
11 แหล่งอ้างอิง: GC รับรางวัลชมเชยองค์กรโปร่งใส ครั้งที่ 10. (2565). เว็บไซต์ https://sustainability.pttgcgroup.com/th/newsroom/news/863
12 แหล่งอ้างอิง:. (2565). การรับมือต่อวิกฤตโควิด-19. (2565). เว็บไซต์ https://sustainability.pttgcgroup.com/th/business-resilience/covid-19-information-hub
13 แหล่งอ้างอิง: GC และ PTT ส่งมอบเรือพายพลาสติก ให้กับองค์การบริหารส่วนจังหวัดสงขลา เพื่อช่วยเหลือผู้ประสบอุทกภัยในจังหวัดสงขลา. (2565). เว็บไซต์ https://sustainability.pttgcgroup.com/th/newsroom/news/845
14 แหล่งอ้างอิง: GC มอบถังบรรจุน้ำสะอาด InnoPlus แก่มูลนิธิอนุรักษ์ป่ารอยต่อ 5 จังหวัด เพื่อนำไปช่วยเหลือพื้นที่ประสบภัยแล้ง. (2565). เว็บไซต์ https://www.pttgcgroup.com/th/newsroom/news/582
15 แหล่งอ้างอิง: โครงการพัฒนาต่อยอดเครื่องบำบัดอากาศที่มีมลพิษ และฝุ่นขนาดเล็ก PM 2.5 ต้นแบบ . (2565). เว็บไซต์ https://sustainability.pttgcgroup.com/th/projects/83