How businesses can pursue responsible growth to help shape Thailand's sustainable future

These efforts are crucial as the country continues to face the impacts of climate change. Earlier this year, the heat index hit a dangerous 52°C, and hazardous PM 2.5 levels continue to affect millions with pollution-related health issues. These realities underscore the urgent need for climate action.

At COP29, Thailand emphasized the need for unified action across all sectors to fight climate change and meet its sustainability goals—a message that strongly resonates with businesses, especially those with significant operations in the country.

Climate change is, after all, a business risk. Research by Morgan Stanley shows that 92% of companies expect climate change to impact the business model by 2050. This comes on top of immediate risks already affecting some businesses, elevating climate concerns to the same level as traditional challenges such as supply chain disruptions, geopolitical tensions, technological shifts, and competition. Without action, the World Bank estimates that Thailand could face GDP losses of up to $553 billion (or 19.2 trillion baht) by 2050.

So, how can businesses mitigate the risks posed by climate change?

Making sustainability a business imperative

Making sustainability central to corporate strategy allows businesses to build resilience, reduce risks, and create long-term value. By integrating sustainable practices, companies can better adapt to regulatory changes and meet stakeholder expectations and consumer demand—all while driving positive impact.

To effectively implement this approach, it's important to involve each business unit in the sustainability strategy to increase accountability, enhance execution, and streamline communication. For businesses operating across multiple markets, this allows strategies, solutions, and initiatives to be tailored to meet local needs effectively.

Prioritizing people should also be a core element of sustainability. A recent Deloitte article highlights that the strength of an organization today lies in its people—employees, contractors, clients, customers, and the communities it serves. These human connections fuel everything that drives success, including innovation, revenue, efficiency, brand relevance, productivity, retention, and adaptability. Incorporating people into a sustainability strategy means prioritizing employee well-being, fostering diversity and inclusion, supporting career growth, ensuring fair and respectful treatment by upholding ethical labor practices, and positively contributing to the communities in which the organization operates.

Fostering a strong culture of sustainability within the organization is also essential and should be matched with genuine action and commitment. When leadership and employees both "walk the talk," it builds credibility, inspires engagement, and drives impactful change across all levels of the business. After all, a sustainability strategy is only as meaningful as the actions it drives and the results it achieves.

Putting in the work

At DKSH, we took a significant step forward by refocusing our sustainability framework as a core element of our corporate strategy while staying true to our purpose of enriching people’s lives. This allowed us to focus on four key areas—flourishing people, making value chains more sustainable, achieving climate neutrality, and creating positive local impact—empowering each of our four Business Units to take a proactive and competitive approach to responsible growth.

Acknowledging the impact of our operations on climate change and natural resources, we have set a goal to achieve climate neutrality in our global operations by 2030. In Thailand, we have installed solar panels at our 4 main distribution centers and deployed electric vehicles, aiming to reduce carbon emissions by almost 45,000 tons annually and save 5.4 million baht in energy costs each year. These efforts also contribute to mitigating Thailand’s greenhouse gas emissions and air pollution. We hope to see more organizations in Thailand adopt similar practices to not only green their operations but also address the country’s most pressing environmental challenges.

Beyond environmental goals, businesses must also tackle social challenges by supporting underserved communities and vulnerable groups. Through our involvement in initiatives like helping over 35,000 children build life skills with Right to Play and supporting thousands of children and families in construction site camps through the Baan Dek Foundation, we’ve seen firsthand the meaningful impact such efforts can create.

Finally, accountability and strong governance are key to implementing a sustainability strategy that leads to lasting positive outcomes. By tracking progress and results, businesses can make data-driven adjustments to ensure continuous improvement and greater accountability. For example, at DKSH, we track key metrics using advanced digital tools and ensure our annual sustainability reports meet global standards. We’ve also formed a dedicated Sustainability Committee internally to ensure our initiatives align with corporate strategies.

DKSH strives to create long-term value in a responsible way, as reflected in external validations such as receiving the EcoVadis Gold Medal for two consecutive years and participating in the UN Global Compact. While we’ve made some progress, there’s still work to be done. Achieving sustainability is a long-term journey that requires businesses to take a proactive approach and collaborate strategically with governments, communities, and industry peers. These partnerships are key to driving large-scale, meaningful change.

This year's Thai Environment Day serves as a reminder of businesses' pivotal role in driving sustainable change and the importance of unified action amid an increasingly urgent need to fight climate change. By committing to sustainability as a core strategy, businesses can not only create long-term value but also contribute to a greener, more resilient Thailand.