Bangchak: Fuelling a Green Future

Bangchak: Fuelling a Green Future

Bangchak has evolved from a traditional refinery focused on oil and gas into a diversified energy organisation creating a green future. This change has been driven by the company’s commitment to sustainability and innovation. It now seeks to achieve ambitious climate change targets by the end of the decade while fostering greater collaboration.

These goals include carbon neutrality by 2030 and net zero greenhouse gas emissions by 2050. It is part of Bangchak’s BCP316NET strategy, a three-pronged approach that seeks to enhance production efficiency through advanced technology to reduce carbon emissions and environmental impact; promoting ecological balance and fostering a low-carbon society by utilising Green and Blue Carbon initiatives; and transitioning towards clean energy and expanding investments in green businesses to drive sustainable growth.

“A key lesson for us has been that a clear vision, rapid adaptation, and strong collaborations are critical for companies to maintain agility while executing large-scale sustainability initiatives,” Ms Gloyta Nathalang, Bangchak Senior Executive Vice President, Sustainability Management and Corporate Communications, says. “Large companies must prioritise agility in adopting energy-efficient practices, leveraging continuous process improvement and digital tools to maintain momentum.”

Bangchak currently has five main business units and operates in ten countries. That is a major change from the company’s early days when it focused primarily on refinery and oil trading activities as well as operating service stations.

Not only have those business units been expanded to incorporate low-carbon and clean energy solutions, but Bangchak has added clean power activities, bio-based fuel production, and natural resource management to its portfolio.

“Diversification allows for long-term resilience, balances economic growth with environmental responsibility, and aligns with global trends in the energy transition,” Ms Gloyta notes.

In order to keep its business units aligned toward reaching the same goal, Bangchak has adopted the 4S Business Strategy, which covers security, synergy, sustainability, and scalability. This ensures business units throughout the organisation don’t lose sight of the bigger picture in a constantly evolving environment.

“The 4S Business Strategy was developed through comprehensive environmental scanning to assess trends and opportunities. Insights gathered were shared among business groups to formulate strategic plans aligned with both individual goals and the overarching corporate vision,” Ms Gloyta explains. “These plans were then integrated into a consolidated corporate strategy, providing us the flexibility to adapt to evolving circumstances.”

Balancing these efforts with business continuity was something else Bangchak had to consider as part of its green future. This can create obstacles such as technological costs, market readiness, and regulatory uncertainties.

“When looking at how best to maintain business continuity alongside efforts to implement our green transition, we identified areas of importance. Operational efficiency was one. Reducing carbon intensity in refining operations while maintaining product quality and competitiveness was a priority,” Ms Gloyta reports. “Then we expanded into bio-based products, electric mobility, and clean energy while ensuring profitability.”

Building on a robust domestic strategy, Bangchak has also broadened its global horizons. The organisation expanded its worldwide footprint through a 2018 investment in Norway-based OKEA ASA. This stake has since been increased to more than 45 percent.

The move allowed Bangchak to diversify its upstream portfolio while tapping into Norway’s high standards in ethical governance, transparency, and sustainability, bolstering the group’s resilience amid energy challenges. The Norwegian approach serves as a valuable model since it focuses on driving long-term value creation and reinforcing the company’s commitment to responsible energy production at home and abroad.

Tangible actions

The evolution of Bangchak from an oil refinery to a diversified energy organisation is being supported through various initiatives spanning from improving existing energy efficiency to carbon credit trading.

“Investing in energy efficiency and low-carbon process improvements is an important way for us to lower the carbon intensity of refinery and business operations,” Ms Gloyta explains. Energy Intensity Index improvements are being realised through smart energy management, heat recovery technologies, and process optimisation. This makes it possible to reduce emissions without compromising production efficiency.

Among the most exciting developments is the launch of Thailand’s first sustainable aviation fuel (SAF) plant which is scheduled to begin operations in 2025. Capable of cutting aviation emissions by up to 80 percent, this is part of Bangchak’s Fry to Fly initiative. The programme sees used cooking oil repurposed into low-carbon aviation fuel.

“As Bangchak proactively diversifies its business portfolio towards cleaner energy sources, SAF was a natural addition,” Ms Gloyta says. “The production utilises 100 percent used cooking oil as feedstock, and the result is 100 percent Neat SAF. We believe this demonstrates our ability to implement large-scale green innovations quickly.”

Elsewhere, Bangchak continues to spearhead carbon credit trading through the Thailand Carbon Markets Club (TCMC). This platform is making voluntary carbon credit trading a possibility in the county and spurs an industry-wide approach to decarbonisation.

Business meets sustainability

The 4S Business Strategy allows Bangchak to keep operations aligned with green ambitions. It is complemented by the 4G Sustainability Strategy that seeks to infuse efforts with innovation that can have a greater impact.

“While the 4S Business Strategy provides a structural foundation for business operations, the 4G Sustainability Strategy infuses an innovation-driven approach, ensuring that growth initiatives are environmentally sustainable and socially responsible,” Ms Gloyta notes. “Together, they guide Bangchak in achieving its goals of carbon neutrality by 2030 and net-zero greenhouse gas emissions by 2050.”

The 4G Sustainability Strategy covers four key tenants. The first is green business which explores investment in ventures that foster sustainable value, including high-value bio-based products and green power businesses.

Next is green production. This aspect of the strategy is focused on enhancing production processes to be environmentally friendly and safe, with optimal resource efficiency.

Greenovative experience looks to create innovative and sustainable experiences for customers, particularly through the development of green products and services at Bangchak’s network of service stations.

Finally, there is green society. This explores ways Bangchak can contribute to environmental stewardship and societal well-being. The goal is to find ways for business operations to positively impact communities.

Urgent change

Many of the sustainability goals Bangchak has set are more ambitious than those found elsewhere. While it may have been easier and more cost-effective to wait for others to make advancements, leadership felt it necessary to be a first mover.

“Bangchak’s ambition stems from a deep-rooted commitment to social and environmental stewardship. It is important to remember that Thailand is one of the countries most affected by climate change in the world. Meanwhile, regulatory trends, such as carbon taxes and emissions trading, are reshaping the business landscape,” Ms Gloyta says. “There are business advantages to being an early mover in sustainability as well. It helps improve our competitiveness and long-term profitability.”

The endeavour also places Bangchak in a position to help other companies on their own pathways toward greater sustainability. It actively shares best practices through industry collaborations, policy advocacy, and various other initiatives.

“Climate action should be a collective effort. Sharing what we have learned can lead to more widespread results,” Ms Gloyta states. “For firms wanting to accelerate their sustainable development and environmental and social responsibility capabilities, there are a few considerations they must explore. Firstly, ESG has to be a key driver of business growth.”

Ms Gloyta adds that investment in innovation and transparent communication with investors, regulators, and customers can build trust. However, businesses must understand the green transition is a long-term approach.

“Adopting a phased approach is important. Start with achievable targets and gradually scale up. By taking bold yet pragmatic steps, companies can future proof their business while making a meaningful impact,” Ms Gloyta says.

In the lead

Bangchak’s commitment to sustainability has seen the company recognised as both an ESG leader in Thailand and globally. It placed among the ‘Top 1% for Sustainability within the Oil & Gas Refining and Marketing Industry’ in The Sustainability Yearbook 2025.

Additionally, S&P Global CSA ranked Bangchak at the highest global level for its ESG performance. The organisation is a leading ESG assessment authority with nearly 8,000 companies from 62 industries worldwide undergoing the assessment.

Having been evaluated by S&P Global CSA for 10 consecutive years, Bangchak has reinforced its position as a global leader in sustainability.

“This recognition underscores the company’s continuous efforts in balancing business growth with environmental responsibility and social impact. While we take great pride in these accomplishments, much work remains. Our unwavering commitment to integrating ESG principles across all aspects of our operations is unchanged,” Ms. Gloyta proclaims.

Fact Box

• Bangchak placed among ‘Top 1% for Sustainability within the Oil & Gas Refining and Marketing Industry’ in The Sustainability Yearbook 2025
• The company is launching Thailand’s first sustainable aviation fuel plant with operations to begin this year
• Sustainability targets include carbon neutrality by 2030 and net zero greenhouse gas emissions by 2050
• Bangchak has launched comprehensive and complementary business strategies to ensure all business units work toward the same goals
• The organisation shares best sustainability practices through industry collaborations, policy advocacy, and various other initiatives

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