27 October 2023
Bangchak Group CEO Shares Insightful Perspectives on ESG and Approaches for Public-Private Cooperation Advancing Greenhouse Gas Reduction at Sustainability Forum 2023
Chaiwat Kovavisarach, Group Chief Executive Officer and President, Bangchak Corporation Public Company Limited, joined as a panelist “Embedding ESG Risks into Core Strategy and Culture” to share his experience in incorporating ESG concepts and risk management as integral components of effective strategic planning and cultivation of an efficient organizational culture, as part of the Sustainability Forum 2023. This event focused on the theme of “Mitigating Risks, Finding Opportunities” organized by the Thailand Management Association at the Waldorf Astoria Bangkok. The panel included other distinguished speakers such as Chadchart Sittipunt, Governor of Bangkok, Aloke Lohia, Group Chief Executive Officer, Indorama Ventures Public Company Limited. The discussion was moderated by Pattaralada Sa-Ngasang, Executive Vice President - Finance and Accounting, PTT Global Chemical Public Company Limited and Sustainability Subcommittee, Thailand Management Association.
Chaiwat remarked on the integration of ESG into Bangchak’s business innovation that benefits both society and the environment, alongside fostering the sustainability of business operations. He cited the “Rice for Oil” project which was initially aimed at assisting agricultural cooperatives but evolved into the opening of the first cooperative service station in 1990. At present, there are more than 600 cooperative service stations across the country, accounting for one fifth of all Bangchak service stations. This commitment to sustainability extends to the Sustainable Aviation Fuel (SAF) business, purchasing used cooking oil through the “Fry to Fly” project. In the past, Bangchak, as a leader in renewable energy, had purchased used cooking oil to produce biofuels. SAF will play a crucial role in combating global warming and is aligned with BCG (Bio-Circular-Green) principles.
He also highlighted Bangchak’s commitment to achieving the Group’s Net Zero GHG Emissions target by 2050 through the BCP 316 Net plan. He emphasized the significance of collaborations, both with public and private sectors, in advancing mechanisms for reducing greenhouse gas emissions. A pivotal component of this effort involves collaborating with partners to establish a a low-carbon ecosystem, known as the Carbon Markets Club, which aims to facilitate carbon credit trading. He shared his perspectives regarding carbon credits, focusing on two key issues, namely standardized regional-level certification and a mandatory scheme which will help regulate greenhouse gas emissions through legislation, carbon taxation. These measures would lead to the allocation of capital towards renewable energy initiatives and technological advancements that reduce greenhouse gas emissions.
Chaiwat further discussed Bangchak’s business strategy, emphasizing the importance in balancing the Energy Trilemma, namely energy security, energy affordability and environmental sustainability. Bangchak’s recent acquisition of Esso (Thailand) Public Company Limited has significantly enhanced energy security during the transition towards clean energy in the future. Bangchak plans to optimize various operations at Bangchak Sriracha Refinery, focusing on production capacity, efficiency, and reducing greenhouse gas emissions for the benefit of both the planet and society other than Bangchak.