The Department of Industrial Works (DIW) aims to increase social awareness among 65 factories this year to promote environmentally friendly production under the circular economy model.
The circular economy concept is based on using upcycling processes to add value to unwanted materials, making them reusable.
Industry Minister Suriya Jungrungreangkit said the government is committed to safeguarding the environment and communities through a campaign for business sustainability it considers a corporate social responsibility (CSR) project.
Officials call it the CSR-DIW, as it is overseen by the department.
"Factories that join the project will benefit from waste and cost reduction," he said.
The department has run the project since 2008.
The government is promoting new investment and industrial development based on high technology, believing innovation will help the country achieve the circular economy goal, Mr Suriya said.
Factories can make better use of resources and become more environmentally friendly, meaning they avoid sparking conflicts with nearby communities, he said.
Complaints over waste water discharge and air pollution make headlines for factories, reflecting the friction between economic development and its impact on the environment and health.
DIW chief Prakob Vivitjinda said 1,066 factories nationwide have joined the CSR-DIW scheme.
Modern technologies can help improve production processes to minimise or eliminate impact on the environment and communities, he said.
Mr Prakob said it is crucial to teach factory owners and workers social awareness.
Factories wanting to join the project must meet criteria ranging from appropriate environmental management and good governance to care for workers' conditions and human rights issues. Plants should communicate with nearby communities and take part in projects to develop neighbourhoods.