Materiality
SCG reviews enterprise materiality on a yearly basis through the SCG Sustainable Development Committee, taking into consideration both internal and external impacts.
Double and Dynamic Materiality Assessment Process
Based on the GRI Standards, The double-materiality concept Application and issues and Integrated Reporting Framework
1
Analyze megatrend and organization’s context
• Analyze significant megatrends that may impact the entire value chain.
• Review ESG issues relevant to the industry by participating in ESG assessments conducted by leading ESG raters, such as Sustainalytics, CDP, MSCI, FTSE4Good, and S&P Global CSA.
• Gather feedback and suggestions from stakeholders through various channels.
• Exchange strategic ideas and perspectives through collaboration with all sectors to drive and advance sustainability initiatives in order to achieve tangible results, such as through World Economic Forum (WEF).
• Analyze significant megatrends that may impact the entire value chain.
• Review ESG issues relevant to the industry by participating in ESG assessments conducted by leading ESG raters, such as Sustainalytics, CDP, MSCI, FTSE4Good, and S&P Global CSA.
• Gather feedback and suggestions from stakeholders through various channels.
• Exchange strategic ideas and perspectives through collaboration with all sectors to drive and advance sustainability initiatives in order to achieve tangible results, such as through World Economic Forum (WEF).
2
Identify sustainability risks and opportunities across the value chain
Assess both the external impacts on the organization (financial materiality) and the impacts of the organization’s activities on society and the environment (impact materiality) across various dimensions in line with international frameworks, such as:
- Climate change risks, in accordance with Task Force on Climate-related Financial Disclosures (TCFD).
Assess both the external impacts on the organization (financial materiality) and the impacts of the organization’s activities on society and the environment (impact materiality) across various dimensions in line with international frameworks, such as:
- Climate change risks, in accordance with Task Force on Climate-related Financial Disclosures (TCFD).
3
Assess the significance of the impacts
• Gather opinions and recommendations from the SCG Sustainable Development Committee to understand the impacts of material challenges across all dimensions.
• Gather recommendations on the transition to a low-carbon society to assess impacts on external stakeholders through presession panels for ESG Symposium 2024.
• Evaluate and screen material issues in the short, medium, and long term.
• Integrate assessment into the Enterprise Risk Management process to systematically establish risk and impact management measures.
• Gather opinions and recommendations from the SCG Sustainable Development Committee to understand the impacts of material challenges across all dimensions.
• Gather recommendations on the transition to a low-carbon society to assess impacts on external stakeholders through presession panels for ESG Symposium 2024.
• Evaluate and screen material issues in the short, medium, and long term.
• Integrate assessment into the Enterprise Risk Management process to systematically establish risk and impact management measures.
4
Determine and propose materiality
• Determine materiality for the establishment of enterprise risk management and business
strategies.
• Propose the materiality to the SCG Sustainable Development Committee for approval and integration into business strategy planning and establish both short- and long-term key performance indicators that integrate ESG achievement targets for the President & CEO and top executives.
• Disclose relevant information to stakeholders to enhance transparency and understanding.
• Determine materiality for the establishment of enterprise risk management and business
strategies.
• Propose the materiality to the SCG Sustainable Development Committee for approval and integration into business strategy planning and establish both short- and long-term key performance indicators that integrate ESG achievement targets for the President & CEO and top executives.
• Disclose relevant information to stakeholders to enhance transparency and understanding.
Materiality Matrix
Sustainability Risks and Opportunities Identification
1. Megatrends
- Geopolitical Conflicts Trade conflicts, wars, and economic sanctions may increase production costs and create trade restrictions.
- Environmental Challenges and Climate Resilience Loss of biodiversity and ecosystem degradation, increasingly severe natural disasters, energy transition, and carbon markets.
- Rapid Technological Change Artificial intelligence (AI) creates competitive opportunities but may pose challenges with regard to workforce skill development, privacy, and data security.
- Increased Social Risks Inequality, labor rights, and the transition to a low-carbon economy must be implemented equitably and inclusively.
2. Sustainability Risks and Opportunities
Financial Materiality
Transition Risks
- Policy: Adaptation to laws and standards, such as the Climate Change Act, carbon tax, emissions trading systems, and global plastics treaties.
- Technology: Development of decarbonization technologies, such as clinker substitute materials and research on carbon capture and storage.
- Market: Development of low-carbon products, advancement of sustainable production and consumption standards, and creation of ecosystems in support of low-carbon products.
Physical Risks
SCG has assessed physical risks, both acute and chronic, using the Shared Socioeconomic Pathways (SSPs) to set scenarios for evaluating potential impacts on the organization's operations, such as extreme heat, flooding, and water stress and drought.
Impact Materiality
- Greenhouse gas Emissions
- Biodiversity Impacts
- Air Quality
- Energy Management
- Water Management
- Waste Management
- Community Relations
- Workforce Health & Safety
1. Megatrends
- Geopolitical Conflicts Trade conflicts, wars, and economic sanctions may increase production costs and create trade restrictions.
- Environmental Challenges and Climate Resilience Loss of biodiversity and ecosystem degradation, increasingly severe natural disasters, energy transition, and carbon markets.
- Rapid Technological Change Artificial intelligence (AI) creates competitive opportunities but may pose challenges with regard to workforce skill development, privacy, and data security.
- Increased Social Risks Inequality, labor rights, and the transition to a low-carbon economy must be implemented equitably and inclusively.
2. Sustainability Risks and Opportunities
Financial Materiality
Transition Risks
- Policy: Adaptation to laws and standards, such as the Climate Change Act, carbon tax, emissions trading systems, and global plastics treaties.
- Technology: Development of decarbonization technologies, such as clinker substitute materials and research on carbon capture and storage.
- Market: Development of low-carbon products, advancement of sustainable production and consumption standards, and creation of ecosystems in support of low-carbon products.
Physical Risks
SCG has assessed physical risks, both acute and chronic, using the Shared Socioeconomic Pathways (SSPs) to set scenarios for evaluating potential impacts on the organization's operations, such as extreme heat, flooding, and water stress and drought.
Impact Materiality
- Greenhouse gas Emissions
- Biodiversity Impacts
- Air Quality
- Energy Management
- Water Management
- Waste Management
- Community Relations
- Workforce Health & Safety
Materiality 2024
Net Zero 2050
The transition from fossil fuels to clean energy and the leader in low-carbon cement, we are continuously pushing forward with innovations, researching and developing advanced technologies to achieve Net Zero.
Nature Positive
Improving the eco-efficiency of operations (Operation Eco-Efficiency) by using circular economy and biodiversity conservation, water resource restoration, forest and ecosystem restoration, and adaptation to reduce physical risks.
Inclusive Society
Promote safety and well-being, human rights, diversity, equality and participation (human rights, diversity, rights and inclusivity, DEI), as well as the transition to a fair low-carbon economy and sustainable living development.
