2020 was a difficult and challenging year for all of us. A global pandemic, Coronavirus, or COVID-19, remains humanity’s greatest challenge today, affecting all walks of life, and prompting us to adapt to the ‘New Normal” lifestyle. This emerging “new norm” has undoubtedly changed consumer behavior as well.
At the corporate level, in addition to COVID-19, Bangchak Group was faced with the effects of the ongoing oil price war which caused oil prices to collapse, coupled with shrinking domestic demand due to lockdown measures that limited travel and logistic activities.
However, the Company was able to effectively handle the COVID-19 by implementing its rehearsed Crisis Management Plan (CMP) since early 2020, imposing strict preventative and control measures to contain the spread of COVID-19.
Through the 3S (Security, Stability, Sustainability) and 4G (Green Business, Green Production, Greenovative Experience, Green Society) Business and Sustainability strategies, the Company was able to continue operations without interruption, and gained investor confidence, that allowed it to successfully issue a 8,000 million baht perpetual bond in May the previous year.
Details of business operations within the 4G sustainability strategy 2020 are as follows:
1. Green Business:
In 2020, BCPG Public Company Limited invested in a 45MW hydroelectric power plant in Laos, as well as the construction and operation of transmission lines and electricity distribution station connecting the facility from Laos to Vietnam. BBGI Public Company Limited expanded its investments in high-value bio-based products through its investments in the bio-based industry global leader, Manus Bio Inc., and jointly established “WIN Ingredients” to operate its biotechnology business. Additionally, the Company launched the startup “Winnonie”, literally “Debt-Free Motorcycle Taxis”, a project developed by Bangchak Initiative and Innovation Center (BiiC), leveraging green mobility technology, electric motorcycles, with motorcycle taxi services in the environs of the Bangchak headquarters and refinery. Winnonie is the first operator in Thailand to provide battery-swapping services with the vision to reduce debt obligations for motorcycle taxis.
2. Green Production:
The Company launched the “Rocket Project” to optimize product value, production energy consumption, raw material and product logistics, as well as improve overall refinery stability to extend the Turnaround Maintenance Cycle from two to three years through the implementation of the 3(E) Project (Efficiency, Energy, and Environment Improvement Project). Additionally, Niche Refinery Products have been developed through the production of Unconverted Oil (UCO) as precursor material for the production of lube base oil and paraffin wax, and improved solvent production processes, specifically for “BCP White Spirit – 3040”, which is used in the paints and resin industry. Bangchak Refinery was received the ISO/IEC27001:2013 for the Information Security Management System of the oil refining control system, and is the first and only refinery in Thailand to receive the acclaimed certification.
3. Greenovative Experience:
The Company produces and retails high quality Euro IV standard products, and offers two Euro V products, namely, Gasohol E20s EVO and Hi-Premium Diesel S. The Company improved the standard of all diesel products offered in its Bangkok service stations, featuring low-sulfur content, to reduce detrimental PM2.5 smog, which subsequently pushed its B20 market share to number 1. A new generation of service stations has been introduced under the 4Rs Process (Renewable, Recycle, Reuse, and Reduce) featuring solar rooftops, rainwater and gray water recycling for garden features, and accessible design for the elderly and disabled that has enable its service stations to maintain its number 1 in customer mind Net Promoter Score (NPS). Additionally, in collaboration with Krung Thai Bank Public Company Limited, Bangchak introduced Bangchak Digital Payment to lower the risk of COVID-19 transmission and service times, becoming the first company in Thailand to provide full service fuel payment via QR Code integrated mobile application of all banks, credit cards, debit cards, and loyalty points collections.
4. Green Society:
The Company takes social and environmental initiative through the Bangchak WOW Model (Well-Being Improvement, Oxygen Enhancement, Water Management), and partners with the public and private sectors to improve the quality of life, and improve the air and water quality, and enhance the well-being of Thai society. Projects include “Conserve & Share for Happiness” and “Used Cooking Oil” projects, which promote circular economy and waste management. The retail of “Low Sulfur Diesel” at the same price, despite higher production costs, addresses the PM2.5 problem. Furthermore, the “Everlasting Battery to Revolutionize Future Energy” seminar aims to provide knowledge about battery businesses which will play a critical role in the future economy.
The Company has continued to maintain its valued trust from the surrounding communities, with an 84% approval rating, reflecting close-knit relationship and trust in the Company’s operations. For education, the Bai Mai Pun Suk Foundation had adapted its “Fun Reading, Writing & Learning Project” which aims to strengthen literacy among first-grade students, to feature digital technology, and widen the reach of the project to cover the entire country, expanding to over 38 schools across 28 provinces, with more than 1,100 participating teachers and students.
Even amidst crisis, the Company continues its support of public and social organizations through its social initiatives, which are its core tenants, and which it continues to embrace. Bangchak’s “Bangchak Group Joins Caring Efforts during COVID-19 Crisis” project joins together all stakeholders, such as providing alcohol hand-sanitizers to organizations, partners, communities, schools etc. procuring alcohol sprays at a special price, establishing the “Happiness Barrel” in Bangchak service stations, retailing blue-flag facemasks in Inthanin coffee shops, etc.
Bangchak remains committed to being the leading Asian Greenovative Group, determined to become the leading green energy company in the region as an innovation-driven company. Through sustainable business innovation, creating favorable return for investors and value for stakeholders in harmony with the environmental and society.