Bangkok Bank, as a "trusted partner", invited top executives to join seminars to encourage entrepreneurs across all sectors to prepare for new environmental trade regulations while moving towards a green and low-carbon economy. All speakers agreed that businesses should adapt swiftly in order to seize global trade opportunities as failing to adapt could impact their sales. The Bank advised starting with self-assessment to establish a baseline, using data collection platforms, and reducing energy waste. The Bank said such measures could lower electricity costs by 15-20% and it called on the government to provide financial support and enhanced incentives to encourage businesses to adapt more effectively.
Bangkok Bank Director and Senior Executive Vice President and Corporate Secretary Kobsak Pootrakool said that Bangkok Bank, as a "trusted partner and reliable close friend" is committed to helping Thai entrepreneurs seize opportunities and achieve sustainable business growth by sharing knowledge, building business networks, and providing financial support. Recently, the Bank hosted "The Great Green Transition" seminar to bring together speakers from leading Thai companies and government agencies to offer insights and identify pivotal changes. A shared focus among leading organizations is establishing a baseline—recording the levels of greenhouse gas emissions or energy use over a specific period. This baseline serves as a starting point for clear and actionable plans to reduce carbon usage effectively.
In the past, the Thai economy has used energy as a key business driver, but this has contributed to global warming. However, now the world is trying to find ways to move towards a low-carbon economy and new trade regulations are being introduced to help make this happen.
"Thai businesses should not see the EU's new CBAM carbon regulations as a far-off issue just because they do not yet produce the products that are subject to them, as in the future, the environmental measures will cover all product groups. Furthermore, it will not only be the European Union that applies these rules as many countries are also preparing to adopt them, which will make all products traceable throughout the entire chain. Even if a business is a small cog in the industry, failing to meet these standards, may make their products unsellable," said Mr. Kobsak.
Mr. Tim McCaffery, Global Investment Director Siam Cement Public Company Limited or SCG said SCG has invested in new technologies that will help businesses effectively reduce carbon emissions, such as high-efficiency solar panel technology, technology that provides high thermal energy without carbon emissions, technologies that remove carbon from the air and products that can increase efficiency in the cold transport supply chain system. The company aims to reduce carbon emissions by up to 25% by 2030 and produce cement with a lower carbon footprint, with the aim of contributing to a sustainable future for Thailand.
"The easiest first step is to assess energy and utility usage within a business and look for ways to reduce energy consumption while considering using renewable energy, improving production processes and adopting technology. The most immediate and tangible benefit for businesses would be the reduction of electricity costs by at least 15-20% as this can greatly cut the cost of doing business and begin the green economy transition journey. This will definitely increase competitiveness for businesses in the long term," said Mr. Tim
Executive Vice President - Corporate Engineering Charoen Pokphand Foods Mr. Peerapong Krinchai said that large companies selling products worldwide face pressure to move towards a low-carbon business due to international consumer demands and new trade barriers. This is driving large companies to commit to low-caron paths to meet standards such as CBAM and EUDR to remain competitive. Although small businesses may not yet see this as relevant, the seminar organized by the Bank brought together large and small businesses to raise awareness about global warming and ongoing changes. This will help SME transition to a low-carbon society and ensure the sustainability of both the business and agro-industry sectors in Thailand.
Mr. Mongkhon Tangsiriwit - Cluster president in charge of Thailand, Laos and Myanmar for Schneider Electric, a leading global organization in sustainability, shared his experience in organizational transformation and highlighted three main areas for sustainability transition:
- Strategize: Create a baseline and a decarbonization roadmap.
- Digitize: Adopt digital technologies to measure energy consumption and carbon emissions and analyze data to find ways to reduce energy consumption.
- Decarbonize: Find solutions to reduce carbon emissions such as using green energy and improving work processes to use energy efficiently.
Data collection is the key to effective carbon reduction planning. It's essential to choose technology that is suitable for the business, without necessarily requiring high investment or a complete overhaul. These investments are not wasted costs but will enhance competitiveness. Transitioning to a green business is
not a long-term issue but an urgent matter that must be addressed immediately to keep pace with the global changes already underway.
Ms. Gloyta Nathalang, Senior Executive Vice President of Sustainability Management and Corporate Communications at Bangchak Corporation, stated that the most challenging aspect in transitioning to a low-carbon business is transforming the entire business chain into a green business. This is especially true for Scope 3, or indirect value chain emissions, which are beyond direct control and account for over 90% of a business. Awareness of this issue is still quite low among external organizations in the supply chain, therefore, large corporations and all sectors must take the lead in driving and supporting this significant transition.
"Undeniably, every change comes with increased costs. Therefore, what entrepreneurs need now is access to funding sources from both the public and private sectors, as well as incentives to support the transition. What the general public may not realize is that there are many mentors ready to help small businesses, such as large companies in the industry, government agencies, and academic institutions, that are willing to collaborate on research toward carbon reduction goals. Additionally, Bangkok Bank, which is a strong financial institution, and other financial institutions, are ready to support businesses to turn every risk into an opportunity," Ms. Gloyta concluded.
Source: Bangkok Bank