6 July 2020

Sustainable Development Strategy

SCG adheres to conducting its business with ethics, and responsibility to all stakeholders for sustainable mutual benefits. SCG has set its Sustainable Development Framework in accordance with global practices, covering three dimensions of economy, society and the environment, with corporate governance as an overarching principle. SCG Sustainable Development Committee or “SDC” has been appointed since 1995 to ensure that operations by our business units are aligned. SDC is responsible for defining sustainability strategy, targets and action plans for business and their own subsidiaries. “Sustainable Development Guideline” has be designated since 2008 to be the guidance for effective and collaborative practices amongst organization and responsible functions. SCG appointed three core sustainable development strategies that are Climate Resilience, Circular Economy and Safety.

Climate Resilience

As global warming and climate-related impact intensify, it is such an urgency that all sectors must step up and make efforts to implement greenhouse gas emissions reduction target according to the Paris Agreement of keeping the increase in global average temperature to well below 2 degrees Celsius, while trying to limit the increase to 1.5 degrees Celsius. On its part, SCG has demonstrated its commitment to the cause and has set the target of greenhouse gas emissions reduction by 28% within 2030 (compared with BAU at the base year of 2007), with interim goals of greenhouse gas emissions reduction and energy consumption reduction by 20% and 13% within 2025.


  1. Increase the share of biomass and clean energy in place of fossil fuel.
  2. Improve or modify processes and equipment to increase energy efficiency.
  3. Research and develop alternative energy technology according to Circular Economy.
  4. Develop products and services that reduce greenhouse gas emissions.
  5. Organize activities to drive energy conservation and climate resilience emergency among employees and contractors.
  6. Restore and rehabilitate terrestrial forest, mangrove and seagrass to increase biodiversity for carbon absorption areas.


  • Set up measures aimed at achieving greenhouse gas emissions reduction targets with according to the Paris Agreement.
  • Establish Internal Carbon Pricing (ICP) regime and apply it as one of the criteria of investment decision for projects that contribute to greenhouse gas emissions reduction.
  • Prepare and disclose climate-related issues according to TCFD recommendations (Task Force on Climate-related Financial Disclosures).
  • Establish the Natural Climate Solutions Committee and collaborate with WBCSD’s Natural Climate Solutions.

Circular Economy

The global challenge of the impacts from waste problems on one hand and resource scarcity on the other reinforces the relevance of circular economy’s Make-Use-Return concept in managing and coping with these problems. SCG adopts circular economy as one of its three core strategies in sustainable development. SCG actively seeks collaboration across sectors and stakeholders to realize efficient waste management, maximization of resource use and reducing wasteful use of new resource.


  1. Develop circular economy products and services to generate and retain their maximum core value of materials.
  2. Collect and manage wastes for recycling.
  3. New business model by transforming to Product as a Service


  • Establish a Circular Economy Committee to provide oversight and build five kinds of success factors: awareness, collaboration, regulatory framework, innovation, management and evaluation.


With a variety of business activities from production, services providers, transportation, together with the important role of employees and contractors in the organization, SCG is highly attentive and driving the best effort towards accidents reduction with the ultimate goal for zero lost time accident by 2022, as well as zero fatality case of employees and contractors each year. Even though the target is not yet achieved, there is a tendency for SCG’s effort to get closer to the goal.


  1. Raise awareness and change working behavior to be a safety culture.
  2. Promote managers or supervisors as Safety Leaders to demonstrate “Caring” for employees and contractors.
  3. Implement safety management systems to raise safety standard in both domestic and overseas.
  4. Develop digital technology as a supervision tool for more convenient and agility to reduce the risk of accident.


  • By forming the Occupational Health & Safety Committee with 2 subcommittees namely, Workplace Safety Committee and Transportation Safety Committee for stricter and higher efficient control.

Progress of Sustainable Development Strategy