SCG’s response to the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations, focusing on how the company identifies, assesses, manages, and discloses nature-related risks, dependencies, and opportunities across its operations and value chains.

SCG has integrated sustainability into its core business strategy through the Sustainable Development Committee and specialized committees such as the Environment Dimension Excellence Committee, which address critical environmental initiatives including water management. In 2024, the “Nature Positive Committee” was established to enhance SCG’s commitment to rehabilitating post-quarrying land use, restoring biodiversity, and achieving a Net Positive Impact on ecological balance.  

SCG employs the LEAP approach (Locate, Evaluate, Assess, and Prepare) to systematically identify and assess nature-related issues. SCG assessed 52 sites from 5 business units (Cement and Green Solutions, Smart Living, Decor, Packaging, Chemicals), including 38 direct operation sites and 14 value chain sites. By utilizing the ENCORE tool, the high-priority impacts include the volume of water use, greenhouse gas (GHG) emissions, and emissions of non-GHG air pollutants, which directly contribute to climate change, resource depletion, and air quality degradation. For material dependencies, the topics of water supply, rainfall pattern regulation, water purification, water flow regulation, and flood mitigation, all of which directly impact operational sustainability and risk management are identified as high-level dependencies

SCG developed and has been improving strategies for water conservation through a mitigation hierarchy to mitigate risks and enhance opportunities.

SCG is also engaging with local communities and stakeholders, respecting human rights, and collaborating on various projects to address environmental concerns and promote sustainable development. In addition, SCG has established targets and commitments related to environmental and climate management, and it is transparently monitoring and reporting progress using key indicators and metrics.  

Target

• 5% water withdrawal reduction by 2030 compared with BAU (business as usual) at base year of 2022
• Maintain all water quality discharges (BOD, COD, TSS) above and better than standards

Performance

• 5.3% increasing of water withdrawal compared with BAU (business as usual) at base year of 2022
• All water quality discharges (BOD, COD, TSS) are better than standards

Strategy

1. Reduce water-related risk through integrated water management.
2. Reduce water withdrawal by increasing consumption efficiency in production processes and product.
3. Ensure compliance of waste water treatment, monitor closely both volume and quality; incident reporting, root cause analysis; and reduce wastewater discharge.
4. Reuse treated water.
5. Restore water-related ecosystems and support water supply for community and agriculture.
6. Build capability employees to ensure integrated water management and optimization.

Replenishing water back to Nature and Community

Wet Forest Project at Lampang Cement Plant
Cement-Building Materials Business rehabilitates and conserves ecosystem inside its Lampang cement plant by implementing the “wet forest system”according to the Royal Initiaitve since 2003. This system features a network of 7,000 check dams, forest fire break along  14,000 metres, solar-powered pumps to replenish water into the forest, the Stop Log in Huay Pu creek which boosts water reserve for the “wet forest system” in the amount of 12,000 cubmic metres per year, on top of a separate water reserve system for plant consumption.

Eastern Region Water Management

Intense weather event of water shortage risk in Thailand’s eastern region. SCG Chemicals (SCGC) joined with key stakeholders in collective water management to ensure adequate supply for all.

Highlight Success Cases of Water Management in 2024

• “Mae Than Model” Project: A former mine has been transformed into a reservoir, equipped with a floating solar farm and solar-powered pumping systems. These systems supply water to nearby community reservoirs for agricultural use, thereby increasing productivity and generating income for the community.
• SCGC (SCG Chemicals): SCGC has reduced water usage by a total of 123,000 cubic meters through various projects. Examples include:
  • Thai Polyethylene Company Limited:
    • Reusing part of the return condensate in the pellet cutting process, reducing water consumption by 20,088 cubic meters.
    • Replacing fill packs in the cooling tower system to reduce water turbidity, decreasing blowdown water by 11,849 cubic meters.
  • Map Ta Phut Olefins Co., Ltd.:
    • Reducing steam usage in the header steam flare system by adjusting pressure setpoints, saving 34,686 cubic meters of water.
    • Decreasing the turbine speed of the cooling water pumps, reducing high-pressure steam usage by 19,496 cubic meters.
• SCGP (SCG Packaging): SCGP has implemented several initiatives to reduce water usage in its production processes. Examples include:
  • Designing and installing heat exchangers to recycle wastewater from pulp production. This process uses waste heat to increase wastewater temperature, creating hot water for pulp washing and reducing water usage by 0.22 million cubic meters per year.
  • Installing pumps to recirculate leftover water from the pulp transportation process between conveying pipes to paper mills, reducing water usage by 0.55 million cubic meters per year.
  • Introducing the SaveAll and PETAX systems to filter and reuse water in the production process, helping to reduce overall water consumption.

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SCG Water Related Risks