Water Stewardship

SCG’s Response to Water-Related Risks under the TNFD Framework and Water Stewardship Strategy

SCG is committed to responsible water stewardship, recognizing water as a shared and finite resource essential to ecosystems, communities, and long-term business resilience. Our approach aligns with global frameworks such as the Alliance for Water Stewardship (AWS) and supports the UN Sustainable Development Goals (SDG 6: Clean Water and Sanitation). We strive to use water efficiently, manage risks proactively, and contribute to a Water Positive Impact through transparent reporting and stakeholder collaboration.

In 2024, SCG reported total water consumption of 53.44 million cubic meters, reinforcing the importance of managing water risks and dependencies across its operations and value chains.

To systematically assess nature-related risks, SCG adopted the LEAP approach (Locate, Evaluate, Assess, Prepare), focusing on:

  • Water Dependency Analysis: Identifying key ecosystem services such as water supply, purification, rainfall regulation, and flood mitigation.
  • Water Risk Identification: Addressing risks from water withdrawal, pollution, and climate impacts.
  • Geographic Risk Mapping: Utilizing tools like the WWF Water Risk Filter and WRI Aqueduct to identify high-risk areas based on water stress and ecosystem vulnerability.

SCG assessed 52 sites across five business units—38 direct operations and 14 value chain sites—to prioritize actions in water-stressed regions.

These insights directly inform SCG’s Water Stewardship Strategy, which includes:

  • Reducing water withdrawal in high-stress watersheds.
  • Increasing water recycling rates in operations located in water-scarce regions.
  • Installing closed-loop water systems in 100% of facilities located in high-risk basins.

By integrating TNFD-aligned risk assessment with its water stewardship strategy, SCG demonstrates a holistic approach to nature-positive outcomes—balancing operational resilience, environmental responsibility, and long-term sustainability.

SCG Water Stewardship Strategy

SCG is committed to advancing water stewardship across its operations and value chains through the following strategic actions:

  1. Conduct comprehensive water risk assessments for all operational sites, identifying key ecosystem services and water dependencies to inform decision-making.
  2. Reduce water withdrawal in high-stress areas to mitigate environmental impact and enhance resource resilience.
  3. Improve water use efficiency in production processes and product design to optimize consumption and reduce waste.
  4. Increase water recycling rates in water-scarce regions and install closed-loop water systems in 100% of facilities located in high-risk basins.
  5. Ensure full compliance with wastewater treatment regulations and monitor pollutant levels to continuously improve water discharge quality.
  6. Collaborate on watershed management and support community water supply initiatives to promote shared water value and ecosystem restoration.
  7. Engage with local communities and stakeholders, promoting access to clean water and encouraging sustainable water use practices.
  8. Promote WASH (Water, Sanitation, and Hygiene) standards across operations and surrounding communities by ensuring access to safe drinking water, adequate sanitation facilities, and hygiene awareness programs.
  9. Build employee capability in integrated water management through training, awareness, and operational excellence programs.

Target

  • 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

  • 5.3% increasing of water withdrawal compared with BAU (business as usual) at base year of 2022
  • 100% compliance with local effluent discharge regulations at all operational sites

Strategic Water Stewardship Partnerships and Success Cases

SCG has actively collaborated with key stakeholders across sectors to address water-related risks and promote sustainable water management. These partnerships have led to impactful initiatives that support both climate adaptation and community resilience.

🌿 Partnership Projects for Water Risk Management

1. Wet Forest Project – Lampang Cement Plant
Since 2003, SCG Cement-Building Materials Business has implemented the “Wet Forest System” based on the Royal Initiative to rehabilitate and conserve ecosystems within its Lampang cement plant.
Key features include:

  • A network of 7,000 check dams
  • 14,000 meters of forest firebreaks
  • Solar-powered pumps to replenish forest water
  • A Stop Log system in Huay Pu creek, increasing water reserves by 12,000 m³/year
  • Separate water reserve system for plant operations

2. Eastern Region Water Management – SCG Chemicals (SCGC)
In response to increasing water scarcity in Thailand’s Eastern Economic Corridor, SCGC has taken a leadership role in multi-stakeholder water governance:

  • National Water Resource Committee (NWRC): SCGC represents the industrial sector in regional water risk planning.
  • Water Trends Monitoring Subcommittee: Participates in weekly meetings with 17 Irrigation Offices and 16 public agencies.
  • East Coast Basin Committee: Provides input on drought and flood management across Rayong, Chonburi, Chanthaburi, and Trat.
  • Federation of Thai Industries (FTI): Chairs the Water Working Group under WEIS to promote basin-level collaboration.

🌟 Highlight Success Cases in 2024

1. Mae Than Model – Mine-to-Reservoir Transformation
A former mining site was transformed into a water reservoir equipped with:

  • Floating solar farm
  • Solar-powered pumping systems
    Water is supplied to nearby community reservoirs for agriculture, enhancing productivity and income.

2. SCGC Water Efficiency Initiatives
SCGC achieved a total water savings of 123,000 m³ through targeted operational improvements:

  • Thai Polyethylene Co., Ltd.:
    • Reused condensate in pellet cutting: saved 20,088 m³
    • Cooling tower upgrades: saved 11,849 m³
  • Map Ta Phut Olefins Co., Ltd.:
    • Steam system optimization: saved 34,686 m³
    • Pump speed reduction: saved 19,496 m³

3. SCGP Water Recycling Innovations
SCGP implemented advanced water reuse systems in pulp and paper production:

  • Heat exchangers for wastewater reuse: saved 0.22 million m³/year
  • Recirculation pumps for pulp transport: saved 0.55 million m³/year
  • SaveAll and PETAX systems for filtration and reuse

SCG’s Climate Mitigation and Adaptation Initiatives Based on Water Risk Assessment

1. Community-Based Water Management

  • SCG collaborated with the Hydro-Informatics Institute (HII) and Utokapat Foundation to implement water management systems based on the principle of “Find, Store, and Use Water Wisely.”
  • Impact:
    • Increased water availability for consumption and agriculture by over 122,000 cubic meters.
    • Benefited 12,000 households across 18 villages in 7 provinces.

2. Watershed Forest Restoration

  • SCG Lampang partnered with community forest networks in 13 districts to restore degraded forest ecosystems.
  • Impact:
    • Constructed over 127,000 check dams.
    • Supported 284 community forest projects covering 300,000 rai (~48,000 hectares).

3. Industrial Water Risk Management

  • SCG implemented the 3Rs (Reduce, Reuse/Recycle, Replenish) approach in its manufacturing processes.
  • Developed business continuity plans to ensure water availability during droughts.
  • Introduced AI-powered water forecasting models and multi-hazard early warning systems.

4. Coastal Ecosystem Rehabilitation

  • Through the “Sea Saver” project, SCG deployed CPAC 3D-printed artificial reefs to restore marine biodiversity.
  • Impact:
    • Installed 1,115 reef units in collaboration with government and civil society.

DOCUMENT DOWNLOAD

SCG Water Related Risks