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Published on March 5, 2008

"Green marketing" and corporate social responsibility (CSR) became hot corporate initiatives in 2000.

Businesses realised that adopting a green strategy not only promoted their brands and image among consumers and society, but also their productivity in the long run.

Nattakit Tangpoonsinthana, executive vice president for marketing at Central Pattana, said social responsibility and ethics had gained more significance in today's corporate circles.

People nowadays are convinced that everyone needs to work together to save the planet.

Corporate social responsibility has become the new paradigm in doing business.

"In today's business environment, 'feeling good' is not enough. You have to have 'being good' and 'doing good' as well," he said.

CSR and corporate governance contribute to corporate value and build brand equity in society. They are important marketing tools to increase the brand value of the company.

"Those green activities however at the end of the day should benefit the business by increasing its productivity," he said.

Central Pattana, the leading local shopping-complex developer, wants to be the pioneer in green buildings and green office concepts by incorporating them in all its projects. The green idea will be applied in all development elements from design, construction materials and infrastructure to building systems such as chillers and wastewater treatment equipment.

The Offices at CentralWorld is a showcase for green development. It has been developed as an intelligent office tower with strong regard for energy-saving applications, including lighting control and daylight application by dimmers and the treatment and recycling of both grey, or used, water and rainwater throughout the building.

"We have invested about Bt10 million in water reuse applications and can save more than 90,000 square metres of water, or Bt1.8 million a year," he said.

The company plans to spend Bt250 million in upgrading all chiller systems installed at its shopping malls, particularly Central Airport Chiang Mai, Central Ramindra, Central Rattanathibet, CentralWorld and Central Bang Na.

Central Department Store will this month launch a green campaign called "Love the Earth" to reduce plastic bags as well as change store fixtures such as light bulbs to energy-saving models.

Back in the 70s, the worldwide business environment started with production and sales, he said. In the 80s, businesses used sales and marketing techniques to differentiate themselves from competitors.

Then in the 90', many goods became 'me-too' products, so major businesses adopted branding strategy as an important tool to build image and perception. "Integrated marketing communications" became a popular method.

Businesses started to apply CSR as one of their key strategies for the new century. Many enterprises around the world became increasingly concerned about corporate transparency and accountability and good governance. Ethics became a norm in the social construct, he added.

Darmp Sukontasap, senior vice president of Tesco Lotus, said the company consistently strove for increased efficiency. "Green Thinking" - especially energy saving and environmental conservation - has always been an important part of its business DNA.

"Every year, all departments in our company have to set clear and quantifiable targets on energy saving, recycling and environmental conservation. We are evaluated every quarter against such targets and will be required to set even more ambitious targets the following year," he said.

"The main objective is to increase efficiency by constantly improving the way we do things. With increased efficiency, cost and energy saving and environmental conservation achievements will then follow.

"For instance, recently we succeeded in reducing the time needed in our fresh-product supply chain by more than 30 per cent. This means that the work process has been improved and shortened, which leads to lower operating costs, less energy consumption and less resources used in the work process. Most importantly, it means that fresh products can now be delivered to our customers faster, fresher and cheaper," he said.

Commitment

Two "Green Stores" on Rama I Road and in Salaya are the extension of Tesco Lotus's increased efficiency and "Green Thinking" philosophy. They have helped set the benchmark for the company's future stores and have helped establish Tesco Lotus as an undisputed corporate leader in the field of energy saving and environmental conservation.

Pongtip Thesaphu, corporate relations director of Unilever Thai Trading, said that as one of the world's leading consumer goods companies with a portfolio of some 400 food and home and personal care brands sold in 150 countries, Unilever's commitment to sustainable development and responsible business practice has long been embedded in its mission and principles.

"Recognising that our business and brands have impacts at every stage of their lifecycle - from sourcing raw materials for our products, all the way through to when our consumers use and dispose of them - Unilever believes that its commitment to sustainable development is essential to the company's future prosperity," she said.

"In part, this is because successful brands of the future will be those that both satisfy the function needs of consumers and address their concerns as citizens - concerns about the environment and social justice. In 2006 Unilever introduced a new 'brand imprint' methodology to help integrate social, economic and environmental issues into its brand development process," she said.

Unilever addressed the environmental sustainability issue at the fundamental, global level by assessing and innovating throughout its products' lifecycles, from R&D and suppliers to manufacturing, distribution, marketing, consumption and final disposal.

One clear example of such product innovation recently introduced in Thailand was Breeze Excel Small & Super Liquid. This is a new, powerful concentrated liquid detergent that allows consumers to do more with less. Primary packaging can be reduced by 35 per cent and the distribution load by almost 50 per cent.

At the global level Unilever has reduced its greenhouse-gas emissions by more than 30 per cent over the last decade, one of the reasons why the company has been food industry category leader in the Dow Jones Sustainability Indexes for eight straight years. And in 2006 it was ranked first in the food and retail sector in the Carbon Disclosure Projects Climate Leadership Index for best practice in greenhouse-gas emissions and climate-change strategies.

"So you see, for Unilever, sustainability, in all our operations, is a goal that reaches far beyond 'green marketing'," she said.

Sadayoshi Fujishige, president of Lion Corp, the Japanese manufacturer of personal care and household products, said the company had initiated a three-year plan from 2007-2009 aimed at reducing carbon-dioxide emissions in its production process by at least 10 per cent. The company could achieve the target by last year.

"We kicked off the environmental friendly policy in 1972 based on our awareness that our detergents would have a negative effect on the environment," he said. Part of the policy was to focus thoroughly on raw materials from plants.

Lion recently opened its latest Bt200-million detergent drying tower at its plant in the Saha Industrial Park in Chon Buri's Sri Racha district. The state-of-the-art detergent-producing facility has been developed with highly efficient, energy-saving, and above all, energy-friendly features.

With this new tower, the company will increase its production capacity for detergents by 120 per cent from 70,000 to 150,000 tonnes per year.

The technological advanced production and machinery is all controlled by a high-performance computerised system to ensure efficiency and accuracy, as well as time and cost savings. Energy-saving operation is ensured by the fact that the main production fuel for this drying tower is natural gas. This helps to eliminate carbon-dioxide emissions by 20 per cent.

The traditional tangential-type heating process has been replaced by the more efficient swirl type, which improves heat distribution and water vaporisation. The new tower consumes the same amount of energy for a much greater output.

Nature-friendly performance is underlined in the facility's ability to purify 99 per cent of contaminated air. Carbon-dioxide emissions are less than one part per million, as opposed to the 20ppm level specified by law. More than 99 per cent of minuscule dust particles as tiny as 100 microns can be effectively detained, to ensure purified air emissions.

Kwanchai Rungfapaisarn

The Nation