SCG adopts a comprehensive Water Stewardship approach, recognizing water as a critical and finite natural resource that underpins ecosystem integrity, community well-being, and long-term business resilience. The Company is committed to managing water responsibly across its operations and value chain while contributing to the sustainable management of shared water resources at the watershed level.

SCG aligns its water stewardship strategy with internationally recognized frameworks, including the Taskforce on Nature-related Financial Disclosures (TNFD) to ensure transparent identification and disclosure of water-related risks and opportunities, and the Science Based Targets for Nature (SBTN) to guide the establishment of science-based actions that restore balance to natural systems. These efforts support the United Nations Sustainable Development Goals, particularly SDG 6: Clean Water and Sanitation.

In 2025, SCG’s water consumption was 61,092 megaliters, highlighting the importance of proactive water risk management and the Company’s dependency on water resources throughout its operations and value chain.

SCG has set a long-term ambition to become a Water Positive organization—maximizing water-use efficiency while returning more water to the environment and ecosystems than is consumed in its activities.

Integrated Water Risk Assessment and Governance

At the enterprise level, SCG applies the TNFD LEAP framework as a systematic approach to identify, assess, and manage water-related dependencies, impacts, risks, and opportunities across 52 operational sites, covering both direct operations and the broader value chain. The assessment is conducted through four key stages:

• Locate – Identify operational sites and their interaction with water resources
• Evaluate – Analyze dependencies and impacts on water availability and quality
• Assess – Determine water-related risks and opportunities at the local level
• Prepare – Develop response strategies, mitigation plans, and adaptive measures

This structured methodology enables SCG to pinpoint areas requiring proactive management, taking into account critical factors such as seasonal rainfall variability, climate change trends, and ecosystem dynamics.

Assessment results are integrated into a centralized water data management and monitoring platform that tracks water withdrawal, treatment, discharge, and recycling performance across all facilities. The system is connected to an executive dashboard, enabling real-time oversight, risk signaling, and timely decision-making to strengthen area-based water resilience.

Sustainable Water Management as the Operational Engine of Water Stewardship

To translate its Water Stewardship commitment into measurable action, SCG implements Sustainable Water Management practices across all operations under the guiding principle:

“Use water efficiently while restoring and returning water to nature.”

This approach establishes a circular water model—from minimizing withdrawal and maximizing reuse to replenishing clean water back to ecosystems and supporting surrounding communities—thereby reinforcing water security alongside sustainable business growth.

SCG’s implementation is structured around four strategic pillars:

1. Enhance Water Efficiency

Improve water-use efficiency across all production processes to reduce reliance on natural water sources, supporting sustainable manufacturing while minimizing environmental impact.

2. Accelerate Water Circularity and Closed-Loop Systems in Water-Stressed Areas

Expand water recycling, reuse, and closed-loop water systems within operations—particularly in water-stressed locations—to reduce freshwater withdrawal and minimize wastewater discharge.

3. Enhance Water Replenishment and Ecosystem Restoration

Return water to nature in both quantity and quality exceeding the volume withdrawn, contributing to ecosystem restoration, hydrological balance, and long-term resource sustainability.

4. Strengthen Collaborative Water Stewardship in High-Risk Watersheds

Work collaboratively with local communities, authorities, and stakeholders to improve watershed resilience, enhance access to clean water and sanitation in line with WASH principles (Water, Sanitation, and Hygiene), and build adaptive capacity to address droughts and floods based on water risk intelligence.

Delivering Long-Term Value Through Water Stewardship

Through the integration of global frameworks, data-driven risk assessment, operational excellence, and multi-stakeholder collaboration, SCG’s Water Stewardship approach aims to:

• Safeguard shared water resources and ecosystem health
• Strengthen climate and operational resilience
• Support community water security and well-being
• Enable sustainable industrial development aligned with global ESG expectations

SCG believes that responsible water stewardship is not only an environmental obligation but also a strategic foundation for sustainable growth and long-term value creation for society.

🎯 Targets

• 5% water withdrawal reduction by 2030 compared with BAU (business as usual) at base year of 2022
• Ensure 100% compliance with local effluent discharge regulations at all operational sites every year

📊 Performance

• 4.3% increasing of water withdrawal compared with the BAU (business as usual) at base year of 2022
• 100% compliance with local effluent discharge regulations at all operational sites

🌟 Water Management Initiatives in 2025

SCG’s business units have systematically advanced water management across both industrial operations and surrounding communities to ensure long-term sustainability. Key initiatives are implemented under the Reduce – Reuse – Community Collaboration approach:

Reduce: Minimizing Water Use in Production Processes

• SCGC (Map Ta Phut Olefins Co., Ltd.) implemented a project to expand chloride limits in circulating cooling water by upgrading materials and corrosion inhibitors. This enabled increased cycle concentration, reduced blowdown, and lowered external water withdrawal by 250,000 m³ in 2025, with a projected reduction of up to 400,000 m³ annually under full-year operation.
• PT Fajar Surya Wisesa Tbk. improved Couch Roll components and enhanced pulp preparation efficiency, reducing water consumption in the production process by 219,000 m³.

Reuse: Increasing Water Recycling and Reuse

• Phoenix Pulp & Paper Public Company Limited initiated an employee-driven project to reuse water from pulp and paper production to adjust pulp quality prior to sheet forming, reducing freshwater demand by 133,000 m³.
• PT Fajar Surya Wisesa Tbk. installed fine filtration systems to separate fibers from process water, enabling the reuse of clarified water totaling 84,000 m³.

Community Collaboration: Strengthening Water Security with Communities

• The Cement and Green Solution Business (Siam Cement Public Company Limited, Kaeng Khoi Plant) partnered with Ban Tham Tao community in Saraburi Province to construct check dams, water storage systems, and solar-powered water distribution for agriculture. As a result, flood-affected areas decreased from 2,435 rai to 455 rai, farmers gained reliable water access, adopted integrated farming practices, increased income, and the initiative is being expanded in collaboration with local authorities to enhance water security in additional areas.

🤝 Collaborative Initiatives for Water Risk Management
From Internal Management to Watershed-Level Collaboration

Beyond internal water management, SCGC has expanded its role to foster watershed-level collaboration in Thailand’s Eastern Region to strengthen long-term water security. Key outcomes include:

• Eastern Water Operations Center: Real-time water monitoring and forecasting across multiple provinces.
• Proactive Water Diversion Measures: Utilizing the Eastern Water Grid to transfer and store water in reservoirs ahead of the dry season, ensuring confidence for both industrial and community water users.
• Policy Engagement: Participation in the Eastern Seaboard Basin Committee to help shape long-term water management direction based on data and technology.

🌎 Climate Mitigation and Adaptation Actions Based on Water Risk Assessment

1. Community-Based Water Management
SCG collaborated with the Hydro-Informatics Institute (HII) and the Utokapat Foundation to implement community water management and drought mitigation projects in eight communities in Lampang Province, increasing water availability by more than 80,000 m³ and benefiting over 1,200 households.

2. Water Restoration and Forest Regeneration
Through check dam construction and community forest conservation, in partnership with the Lampang Community Forest Learning Association, the initiative covers 400 villages across 13 districts, with 10,000 check dams built in 250 communities.

3. Industrial Water Risk Management
SCG applies the 3Rs approach (Reduce, Reuse/Recycle, Replenish) in manufacturing processes, develops business continuity plans to address drought risks, and advances AI-based water forecasting models alongside multi-hazard early warning systems.

4. Coastal Ecosystem Restoration
Under the “Rak Talay” (Love the Sea) project, SCG installed 3D-printed coral settlement bases (“coral homes”) using SCG 3D Printing technology to support marine biodiversity restoration. A total of 3,073 units have been deployed in collaboration with government agencies and civil society partners.

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SCG Water Related Risks