SCG Decor Public Company Limited (SCGD) is accelerating concrete progress toward its Net Zero target by 2050, alongside sustainable business growth plans. As of 2024, the company has achieved over 35% reduction in Greenhouse Gas Emissions compared to the 2020 baseline through two primary strategies: first, investing in renewable energy projects including solar power and biomass fuel, with plans to expand renewable energy usage across manufacturing bases throughout ASEAN; and second, Implementing business restructuring with digital technology and automation systems to enhance production efficiency, reduce costs, and elevate organizational management capabilities.
For 2025, SCGD estimates total capital expenditure of over 2 billion baht, with planned investments of over 1.5 billion baht in clean energy projects and production efficiency improvements. These investments will reduce carbon emissions while strengthening long-term competitive capabilities. The renewable energy projects implemented in 2024 have already reduced energy costs by over 300 million baht annually, with projects completed in the first half of 2025 expected to deliver additional annual savings of 36 million baht. Simultaneously, business restructuring through digital technology and automation systems has enhanced operational efficiency, achieving total cost reductions of over 60 million baht annually, with additional cost savings anticipated in subsequent periods.
Mr. Numpol Malichai, Chief Executive Officer and President of SCG Decor Public Company Limited, revealed that "SCGD advances sustainability in business operations as one of the core strategies used to strengthen the business. The over 35% carbon emission reduction in Scope 1 and 2 from the 2020 baseline results from long-term planning, efficient cost management, and renewable energy technology investments, enabling the business to compete effectively and sustainably in the market."
During the first half of 2025, SCGD installed additional solar cells totaling 41.4 megawatts, representing 12% of total electricity consumption, and increased biomass energy proportion to 22% of thermal energy, targeting 46% by 2030. This approach will effectively reduce fossil fuel dependency and mitigate long-term cost volatility.
Regarding market expansion strategy, SCGD continues strengthening production capabilities in ASEAN countries, particularly Vietnam, which serves as both a manufacturing base and high-potential market. Through renewable energy investments and production efficiency improvements, the company aims to reduce unit costs and enhance ESG advantages, factors increasingly valued by global customers. Currently, international revenue accounts for approximately 36% of total revenue.
Recently, SCGD initiated a pilot project installing biomass gasifier systems at its Vietnam facility to replace additional coal usage beyond Biomass Hot Air Generation, with plans to expand the project to other regional manufacturing bases to enhance energy security and achieve sustainable long-term cost reduction.
Furthermore, SCGD continues business restructuring and production system improvements using digital technology and automation to elevate operational efficiency. These initiatives include tile quality inspection systems, tile packaging automation, automated systems for sanitary ware production processes, coating spray operations, and workpiece movement, along with the One WMS warehouse management system utilizing technology for efficient and accurate storage space management. These improvements have enabled the company to achieve total cost reductions of over 60 million baht annually.
Concurrently, SCGD develops and distributes products addressing environmentally conscious customer segments, including water-saving sanitary ware, tiles manufactured from recycled materials, non-firing SPC flooring materials that eliminate energy consumption from firing processes, and recycling production waste for reuse to reduce resource consumption and environmental impact.
"The transition to clean energy will not only create positive impacts on society and the environment but will also enable SCGD to better control energy costs long-term, increase competitive advantages against global competitors, and build confidence among shareholders, partners, and customers in all markets where we operate," Mr. Numpol stated.
This commitment has resulted in SCGD receiving an ESG Rating of A level for 2024 in the Property and Construction industry sector, reflecting transparency and responsibility. The company remains committed to continuous advancement and development for sustainable operations.