Articles

What is ESG?

ESG is a sustainable development concept with three main dimensions: E-Environment, S-Social, and G-Governance. These are crucial concerns that businesses and organizations must prioritize and address today.

Today, the world’s climate is changing so much that the well-known term “global warming” is now being replaced with “global boiling” to signify the increased intensity of climate change.

Furthermore, society faces a variety of challenges, from geopolitics which impacts the entire community to issues of inequality, such as income and gender disparities.

In the governance dimension, there is a growing focus on transparency, government governance, and justice. Consequently, businesses and organizations need to engage in sustainable development under the ESG concept.

Enhancement of environmental sustainability

E-Environment dimension Businesses and organizations need to consider the environmental impact of their operations, such as carbon dioxide emissions, fossil energy consumption, nonrenewable energy use, waste generation, and other activities that generate their environmental footprint.

In addition, businesses and organizations can create positive outcomes that address existing environmental issues through the use of carbon capture technologies, transitioning to renewable energy, and generating clean energy for self-use or transmission.

Sermsang Power Corporation aims to “improve sustainability” by:

• Enhance economic stability by setting a goal to expand operations within the country by at least one business within 2030.
• Enhance environmental sustainability.
• Setting the goal to reduce water and electricity consumption by 10% by 2027 and achieve net zero by 2050.

Generation of clean energy

S-Social dimension Businesses and organizations must handle the relationship between the company and internal and external business stakeholders, namely, employees, customers, stakeholders, nearby communities, and those in the business and organization’s value chain, to guarantee fairness and equality treatment.

Businesses and organizations can develop this dimension by generating value to give back to society. This can be achieved through CSR projects to help society and support the communities and localities where businesses are located, e.g., promoting local products and business operations to subsidize communities, or providing more opportunities for vulnerable groups, e.g., hiring people with disabilities or the underprivileged.

Sermsang Power Corporation aims to “generate clean energy for a livable society” by:

• Create opportunities to access energy consumption with the goal of increasing clean energy generation capacity by 30-40% within 2030.

Power of Society and Stakeholder

G-Governance Dimension Governance dimension involves the development of organizational management, including transparency in business operations, anti-business policies, internal exploitation, corporate culture, and regulations, remunerations, and benefits.

The proportion of employees within the organization is also a key factor, along with how fair the company’s rules are, whether compensation and revenue share are appropriate, whether adequate benefits are available to employees, and whether the proportion of employees within the organization demonstrates inequality.

Sermsang Power Corporation aims to “power the business for steady and sustainable growth” by:

• Promote operations based on good governance principles by targeting zero complaints about human rights violations, violations of the code of conduct, and fraud and corruption, as well as zero accidents in the organization every year from now.
• Collaborate with stakeholders to achieve sustainable growth by targeting 80% employee satisfaction and 90% customer satisfaction by 2027.

Why does anyone care about ESG? Here are the issues that organizations with ESG sustainability goals need to address.

Today, the development of ESG is not solely a concern for company personnel, but also holds significance for individual and institutional investors.

In addition, partners, service users, customers, and all stakeholders in the value chain also examine the ESG development practices of the businesses in which they will get involved. This highlights the importance of ESG for both internal and external stakeholders of the business.

Sermsang Power Corporation with ESG

Today, the company has its own ESG goals to ensure the sustainable development of the business. By the end of 2023, the company group had established an Environmental, Social, and Corporate Governance Committee to ensure businesses align with global megatrends and operate within the sustainable development framework. The group has established net zero emission targets as outlined in the National Energy Plan Framework, in which policies were formulated to encourage Thailand towards clean energy consumption and reduce net greenhouse gas emissions to zero by 2065 – 2070 for a sustainable green world.

The group, moreover, has a development plan based on key goals from the Sustainable Development Goals (SDGs) of the United Nations (UN), focusing on:

1. Decent Work and Economic Growth
   
   
   • Be part of making sustainable economic growth according to population.
   • Improve the efficiency of global resources consumption and production, and seek to sever the link between economic growth and environmental degradation.​


2. Peace Justice and Strong Institution
   
   
   • Reduce corruption of duty and all forms of bribery.


3. Affordable and Clean Energy
   
   
   • Increase renewable energy production by 2030.


4. Climate Action
   
   
   • Achieve net zero emission by 2050.


5. Sustainable Cities and Communities
   
   
   • Reduce air pollution and municipal waste management impacts by 2030.​
   • Support positive links in economic, social, and environmental dimensions between urban and peri-urban areas.​


6. Gender Equality
   
   
   • Advocate for an end to all forms of discrimination on women and girls everywhere.
   • Ensure full and productive women’s participation and equal opportunities to be leaders at all levels of decision-making.