Circular Economy
SCGP places great emphasis towards Circular Economy as an essential solution to Thailand and the global environmental issues such as global warming, resource scarcity, global waste crisis, poverty, and quality of life. By elevating our Circular Economic practices, we are able to manage the circulation of resources and energy in the system with cost-effectiveness at the highest benefit, starting from planning, design, material selection, production, consumption, and waste management until recycling in the production process as raw materials.
SCGP produces packaging paper and plastic that can be recycled and reprocess into new products with equivalent quality as products made from virgin material. Therefore, circular economy (Make-Use-Return) is merged in every process in action. Starting from factories, our executives consider more reuse water and reclaimed post-consumer paper returning in production as their Key Performance Indicator (KPI). If these two parameters are excessive, they will affect high variable cost that means lower income with lower points on KPI. For support functions as recycling business, our managers take efforts to partner and engage with customers and modern trades to get recycled material back to processes from activities that is also an important mission so it is defined in KPI due to that more return means more profit. At high level, Chief Operating Officer-Consumer & Performance Packaging Business as well as other executives takes recycle content in products as KPI. Moreover, All KPIs will be monitored periodically and calculated that has the effect on bonus and incentives.
environmental impact of packaging:
Increase efficiency of waste management due to Product Life Extension
and turning waste to value by upcycling and downcycling (Year 2022: waste diverted from disposal 25%Increase from Year 2021)
References : CEO GUIDE TO THE CIRCULAR ECONOMY, WBCSD
SCGP is committed to engineering packaging products through co-creation with customers, aspiring to achieve
100% reusable, recyclable, or compostable packaging by 2030.
The volume of recyclable, reusable, or compostable packaging from the volume of total packaging
99.7% from the volume of total packaging
SCGP demand for recovered paper has risen steadily following to the paper production plan. This accordingly increases in the amount of paper product recovery targets due to the relevance based on the production in the annual report. The total ratio of raw materials and production is around 0.81.
The raw materials used in the segment of fiber and paper packaging of SCGP typically include wood chips, virgin pulp, recycled paper and other natural fibers. These materials are processed and transformed into various types of packaging products, such as cardboard boxes, paper bags, and cartons. In 2024, SCGP utilized a total of 5,091,508 tons of raw materials for the production of fiber and paper packaging products.
The total raw material of consumer and performance packaging refers to the overall amount of materials used in the production of various plastic packaging types such as flexible packaging, rigid packaging and high performance packaging. In 2024, the total raw material usage increased to 136,965 tons due to the data merging of Duy Tan Plastics Company Groups.
A significant portion of our raw materials is derived from pulp and paper, which can be both recycled and renewable. Our definition of recycled pulp involves used paper that has undergone mechanical and chemical processing. Recycled plastic, on the other hand, is sourced from post-industrial recycled (PIR) materials and post-consumer recycled (PCR) materials.
This approach reduces reliance on virgin and non-renewable raw materials and promotes sustainability. Utilizing recycled materials aids in conserving natural resources, lowering energy consumption, and reducing waste and greenhouse gas emissions.
In 2024, the proportion of recycled contents reached 77.5%. The percentage was increased because some related portions of recycled materials were included. The overall percentage of recyclable and renewable materials utilized was 97.4% in 2024, as all paper is considered to be made from renewable resources.
Waste Recycling to Supplement Raw Material
Post-Consumer Recycled Resin (PCR); Transform plastic resins after consumers' use a supplement raw material to polymer packaging production, reducing the use of new plastic beads (virgin resin) such as shampoo bottles.
SCGP Recycle
SCGP operates standardized paper recycling facilities and collection systems, leading to the development of SCGP Recycle, a solution designed to collect post-consumer materials while promoting source-level waste segregation awareness. The initiative aims to establish a complete closed-loop recycling system, serving both consumers and organizations committed to resource efficiency under the Circular Economy framework. It supports those lacking the knowledge or confidence regarding proper waste sorting and ensures that segregated materials are processed correctly. Paper waste is recycled into new raw materials within SCGP’s own facilities, while other materials are responsibly and compliantly recycled by partner facilities.
The SCGP Recycle business model ensures effective material management by leveraging SCGP’s expertise, personnel, and facilities. The initiative transforms social responsibility into business value by reintegrating collected paper waste into production, enhancing resource efficiency, and meeting customer expectations while generating shared value with communities. This is in line with SCGP’s commitment to environmental and social responsibility. The model extends from three key community programs: Turn Paper Bands into Values Creation, Bring Paper Home Project, and SCGP Zero Waste Community Project.
In addition to sourcing post-consumer materials from organizations, SCGP Recycle expands accessibility for individual consumers through partnerships that provide neighborhood Drop Points. These collection sites located at malls, residential compounds, gas stations, and office buildings accept pre-sorted recyclables such as various types of paper, plastic bottles, and plastic films. SCGP Recycle ensures that these materials are efficiently reintegrated into the value chain through a reliable and convenient collection system, either being recycled into new products or upcycled to create added value. This approach helps reduce landfill and incineration waste, which contribute to pollution and greenhouse gas emissions, major drivers of climate change.
Performance Summary (2020–2024):
- 71 paper recycling centers established
- 120 project partners engaged
- 500 waste drop-off points accessible to the public
- An average of 1,311 tons of paper recycled per year
Service Solutions
SCGP Recycle is the Service Solutions provided to SCGP partners as a communication channel for accessing the services and information on the proper sorting of waste materials for complete recycling according to the Circular Economy principles. The wastes include paper waste, plastic waste, and other waste materials that can create value if properly managed. SCGP Recycle also provides advice, guidance for development, and improvement to understand handling waste materials correctly and efficiently.
Paper Recycling Project promotes the recycling of used paper by establishing drop points in collaboration with partners effectively closing the recycling loop. In 2024, this project successfully recycled over 101 tons of paper through several initiatives, including:
SCGP participated in the “WeCYCLE” project, organized by WHA Corporation Public Company Limited in partnership with the Industrial Estate Authority of Thailand and other organizations. This initiative focuses on waste management and creating added value from recyclable materials.
SCGP CEO participates in the 'WeCYCLE' project, organized by WHA, December 2024.
Collaborating with partners, SCGP set up Recycling Drop Points at various locations such as Uniqlo outlets, BDMS, Sindhorn Village @Velaa, ThaMaharaj, Kronos, BITEC, The Mall Group, EMDistrict, Chewathai, and Loxley to collect unused paper, boxes, and cardboard for recycling into new materials. This initiative benefits society and reinforces commitment of the participating organizations to sustainable waste management.
Velaa Sindhorn Village Langsuan collaborates with SCGP to set up paper recycling stations starting on World Environment Day, June 2024.
SCGP also collaborated with Thai Beverage Recycle Co., Ltd. (TBR) by signing a memorandum of understanding (MoU) on “Systematic Collection of Used Paper Packaging for Recycling”. This initiative aims to promote environmental sustainability, ensuring that all used paper packaging collected from TBR’s operations is fully reintegrated into the production process.
SCGP partners with Thai Beverage Recycle to collect used paper for the recycling process, March 2024.
Products and Activities under Circular Economy
Activities
Across the value chain, SCGP business comprises:
- Upstream : Material Procurement by considering the use of recyclable materials, such as biodegradable materials or materials that have been previously used
- Operation : prioritize the use of valuable resources and incorporate the utilization of renewable energy sources to minimize waste generation
- Downstream : Product and service design aims to enhance efficiency by incorporating features that prolong the lifespan and improve the recyclability of used products
- Other Activities : SCGP collaborates with internal and external stakeholders to engage in non-business activities that promote the implementation of a circular economy across various sectors.
Figure 1: Example of Circular Economy Activities across value chain
Products
Across the manufacturing processes, SCGP Products should comprise at least one of these:
Designed for Disassembly
Product design focuses on creating products that can be easily disassembled and repaired once they reach the end of their lifespan.
Reduced Resource Use
Reducing the use of materials as raw materials or minimizing the consumption of natural resources pertains to various aspects, including:
- Production: Implementing efficient production processes that optimize material usage and minimize waste generation.
- Distribution: Optimizing logistics and supply chain management to reduce packaging materials and transportation-related environmental impacts.
- Packaging: Designing eco-friendly packaging solutions that use less material, are recyclable, or utilize sustainable alternatives.
- Services: Introducing digital or virtual alternatives to physical products or services to reduce material dependence.
- Consumer Behavior: Educating and encouraging consumers to adopt sustainable practices, such as recycling, reusing, and consuming responsibly.
Renewable Material Use
Products produced using recycled materials refer to materials that possess the characteristic of being regenerated anew in sync with their respective usage, such as bio-based materials.
Recyclable and Recycle content
Recyclable: Products that have the characteristic of being able to go through a process of recycling to be reused as raw materials compared to conventional products.
Recycle content or Non-Virgin material: Products that incorporate materials that have been used or waste from the manufacturing process and are recycled or utilize materials that have the capability to be reused as components in the production of goods or packaging.
Recovered Energy
The characteristic of products or services that utilize energy in their production or operation, which is derived from capturing and managing the energy that would otherwise be wasted or released.
Renewable Energy
The utilization of renewable energy sources such as wind power, solar energy, geothermal energy, or biomass energy in the production process.
Reduced Energy consumption
The reduction of energy consumption in the production process or the use of products when compared to the energy used in their production or usage in a similar manner.
Reduced Water Consumption
The reduction of water usage in the production process, including reducing the use of tap water, groundwater, and surface water.
Extended Life Product
Newly designed products are made to be durable throughout their lifespan, emphasizing resilience. However, there may be a need for design improvements to facilitate easier repairs, particularly by third party.
Reusable and Refillable
Products or packaging that are made to possess the characteristic or designed to be reusable within the product lifecycle or have features that allow them to be refilled with the same or similar product multiple times without the need for special cleaning or sanitation before reuse.
(Remarks: reuseable is an alternative spelling of reusable.)
Waste Reduction
Products that are manufactured using processes that reduce waste generation through various methods such as improving production processes, changing packaging containers, or incorporating features in the product that can reduce waste generated from other products when used.
Compostable
The characteristics of products, packaging, or components that can biodegrade under specific conditions and timeframes, including both biodegradation and photo degradation.
The reporting of product information and activities within the scope of Circular Economy
- List of Product Quantity, including SCG Green Choice, and Activities under Circular Economy (Accumulated Data)
- Monetary Value from Circular Economy Activities (e.g. Sales Revenue, Operation Cost Savings, Revenue from Relevant Activities) calculated on the period 1 Jan-31 Dec every year if the project is not finished within year, provide only actual data
- Greenhouse Gas (GHG) Emission Reduction
Reporting Requirement: The reduced quantity of greenhouse gases through the implementation of circular economy projects throughout product life cycle
Guidance Explanation and Example: The calculation of greenhouse gas reductions from projects that adhere to the principles of circular economy can be determined by the difference between the total greenhouse gas emissions baseline and the post-project emissions throughout the product's life cycle. Various variables used in calculating the baseline and project emissions must be measured and recorded during the same time period.
Carbon reduction = Baseline emission - Project emission or = Difference of activity data (reduce) * emission factor 
Figure 2: GHG Reduction Calculation Concept
- % Circularity Inflow & % Circularity Outflow
Guidance Explanation and Example:
% Circular Inflow total is calculated based on the quantity of raw materials used in the production of goods, sourced from both internal and external suppliers, excluding packaging, chemicals used in the production support system, water, and energy. The Circular Inflow is composed of two components:
- % Renewable inflow: The proportion of resources managed sustainably (based on internationally recognized standards) that are used and have a replenishment rate equal to or faster than the rate of usage. Examples include bio-feedstock and sustainably grown timber.
- % Non-virgin or Recycled Inflow: The proportion of materials that have been previously used and are utilized as substitutes for virgin materials or natural resources. This includes materials from other production processes (rejected products or waste), recycled plastic (PCR, PIR), washed sludge residues, recovered paper scraps, and others used as alternatives to replace raw materials.
The % Circular Outflow total is calculated based on the quantity of related waste products from the production process (excluding waste from utility systems and maintenance) and excluding packaging. Circular Outflow consists of:
- % Recovery Potential: The potential of materials to be reintroduced into the value chain after the end of their technical or theoretical lifespan. This can be expressed as Full potential = 100%, No potential = 0, or some potential = X%.
- % Actual Recovery: The amount of materials that are actually returned to the value chain after leaving the organization's scope, after the end of their lifespan. If data is unavailable, representative data at the country or global level can be used.
Figure 3: %Circularity (CTI 2.0)