Nature and Biodiversity

Actions toward Nature Positive

SCG recognizes the importance of biodiversity and ecosystem, thus develops the SCG’s Nature Strategy to manage and address nature-related dependencies, impacts, risks and opportunities, aligned with guidelines from the Kunming – Montreal Global Biodiversity Framework (GBF) and the nature positive goal of achieving harmonious human-nature coexistence by 2050.

SCG has relentlessly implemented efforts in biodiversity and nature conservation, through sustainable management approach; ecosystem restoration, biodiversity preservation, and sustainable resource utilization, and applying international indicators to benchmark what we have done, with a view to making SCG a role model in biodiversity conservation. This involves prompt adaptation and response to various disasters.

Commitment

“Net Positive Impact” in all processes

  • 100%
    No Deforestation
    No gross (lumber products)
    No net (construction materials)
  • 10%
    FSC™-certified biodiversity conservation forest areas of total plantation area
  • 100%
    FSC™-certified  Controlled Wood
  • 100%
    Mine rehabilitation plan
  • 60%
    Similarity Index
    between restored mining areas and natural forest in the buffer zones
    (For limestone mines in Thailand)
  • 100%
    Biodiversity Management Plan (BMP)
    Internal audit by Quarry Rehabilitation and Biodiversity Committee
    (For limestone mines in Thailand)

3 million rais
Preservation and Restoration area by 2050

Biodiversity Risk Assessment

Following TNFD guideline, SCG employs the LEAP approach (Locate, Evaluate, Assess, and Prepare) to systematically identify and assess nature-related issues.

First step, Locate – Nature mapping begins with the Locate phase, where SCG carefully examines how our activities interact with the natural world. By analyzing operations, value chains, and geographical presence, companies gain a clear picture of where and how we touch the environment.

In the Evaluate – SCG takes a deeper look at our connection to nature. We measure how much we depend on natural resources and ecosystem services, while also understanding our impact on these vital systems. This creates a rich foundation of data to inform strategic decisions.
For the Assess – The Assess phase transforms this knowledge into actionable insights. SCG examines potential risks to our operations from environmental changes, while also discovering opportunities to create positive impacts. This dual perspective ensures both protection against threats and pursuit of sustainable value creation.
In the Prepare – SCG channels the insights into concrete action. We develop targeted strategies, create detailed roadmaps for implementation, and establish robust systems for monitoring progress. This phase also emphasizes the importance of transparent reporting to stakeholders about environmental initiatives and outcomes.

Methodology

SCG identified and prioritized key business activities within selected sites using the ENCORE tool, GIS analysis, and WWF BRF.

Scope of Biodiversity Risk assessment

52 sites of SCG business from 5 business units, including the value chain, are assessed for sensitive locations cover approximately 65% of total revenue in 2024. The sites are selected based on the sites’ proximity to important natural habitats, environmental footprint, impact and significance to SCG’s portfolio.

Dependency and Impact

SCG relies on various nature-related dependencies categorized by priority. ·High-Priority Dependencies include critical factors such as water supply, rainfall pattern regulation, water purification, water flow regulation, and flood mitigation, all of which directly impact operational sustainability and risk management. ·Medium-Priority Dependencies involve a broader range of environmental factors, including biomass provisioning, climate regulation (global and local), air filtration, soil quality and retention, storm mitigation, and noise attenuation. These dependencies support long-term environmental health and operational resilience, along with solid waste and biological control. •Low-Priority Dependencies focus on genetic materials and the maintenance of nursery populations and habitats, representing less immediate but still important ecological considerations

SCG has various nature-related impacts categorized by priority. ·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. ·Medium-Priority Impacts encompass land use area, emissions of toxic pollutants to water and soil, generation and release of solid waste, and general disturbance. These impacts affect ecosystem health, soil and water quality, and biodiversity. ·Low-Priority Impacts include the area of seabed use, extraction of other biotic and abiotic resources, and the introduction of invasive species, which have less immediate but still significant consequences for marine and terrestrial ecosystems.

NATURE-RELATED RISKS

A comprehensive list of nature-related physical and transition risks as well as opportunities for each of SCG’s business units has been developed based on the TNFD sector-specific guidance and an evaluation of impacts and dependencies.

WWF BRF is used to generate risk scores for each site and adjected with SCG‘s risk matrix and mitigation actions. As a result, there is no high nature-related risks with current condition.

Biodiversity Mitigation Hierarchy

AVOID

SCG commits to have a Net Positive Impact on biodiversity. We have developed an innovative mine design called the “Semi-Open Cut”. We leave 1470 Ha or approx. 50% of concession area along the mine boundary line as a buffer zone to maintain the visual aesthetic of the natural landscape and conserve biodiversity and ecosystem functions in the area, as well as being a reference for mine rehabilitation.

REDUCE

SCG uses “Minesight”, a mine design program, to minimize the operation area at a time, leaving some part of the operation area untouched until needed and rehabilitate the finished area as soon as possible. Also, we have tried to reduce our impacts as much as possible. Our actions are as follows; setting speed limit, limiting the blasting time, using delay detonators to reduce vibration, etc.

RESTORE/REGENERATE

SCG have been collaborating with experts from various educational organizations to design mine rehabilitation with biodiversity conservation concept, focusing on planting local native species and creating ecosystem services in the area as well as developing endemic species conservation program to maintain key species in the area. We have rehabilitation plan and biodiversity management plan in every site. For Packaging Business, the company conserves at least 10% of total plantation area  as the biodiversity conservation. The biodiversity survey shows High Conservation Value and Diversity Index.

TRANSFORM

We collaborate with Department of National Parks, Wildlife and Plant Conservation and Royal Forest Department to restore forest with biodiversity conservation concept in other areas as part of Natural Climate Solution. SCG also realize about the importance of coastal and marine resources. Therefore, we collaborate with the Department of Coastal and Marine Resources to restore mangrove forest, plant seagrass, build fish home, and restore coral reefs by our 3D printing artificial reefs that is blend-in with natural and leave no harm to marine environment. We have installed 1,150 coral homes in Thai seas. The biodiversity survey in Koh Maiton, Phuket showed that two years afterword, 800 coral colonies emerged (averaging 3-5 c.m. deemed healthy) alongside discovery of 15 fish species.

Collaboration with external expert advisers and subject matter experts on efforts to reduce loss of biodiversity in priority locations.

Examples of bio-diverse habitat in conservation area

Risk Monitoring and Reporting

It is essential for risk owners to continuously monitor and periodically review the identified, assessed, and managed risks. The outcome of the implementation of risk mitigation measures will be reported to various committees at different time intervals, such as the Business Unit Risk Management Committee, SCG Risk Management Committee, SCC Audit Committee, and SCC Board of Directors. For instance, medium-term risk is reported on an annual basis, while operational risk is reported on a quarterly basis

Definition

Biodiversity The variability among living organisms from all sources, including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems.
DependenciesAspects of ecosystem services that an organization or other actor relies on to function. Dependencies include ecosystems’ ability to regulate water flow, water quality, and hazards like fires and floods; provide a suitable habitat for pollinators (who in turn provide a service directly to economies), and sequester carbon (in terrestrial, freshwater and marine realms).
ImpactsChanges in the state of nature, which may result in changes to the capacity of nature to provide social and economic functions. Impacts can be positive or negative. They can be the result of an organization’s or another party’s actions and can be direct, indirect or cumulative.
NatureThe natural world, with an emphasis on the diversity of living organisms (including people) and their interactions among themselves and with their environment.
Nature-related risksPotential threats posed to an organization linked to their and wider society’s dependencies on nature and nature impacts. These can derive from physical, transition and systemic risks.
RehabilitationMeasures taken to rehabilitate degraded ecosystems or restore cleared ecosystems following exposure to impacts that cannot be completely avoided and/ or minimized. Rehabilitation emphasizes the reparation of ecosystem processes, productivity and services, whereas the goals of restoration also include the re-establishment of the pre-existing biotic integrity in terms of species composition and community structure. 
RestorationAny intentional activities that initiates or accelerates the recovery of an ecosystem from a degraded state.  

Document Download

Quarry Rehabilitation and Biodiversity Policy
SCG BIODIVERSITY MANAGEMENT PLAN
SCG Biodiversity Exposure and Assessment
SCG Maetan Model
SCG Smart Green Mining