Bringing in Sustainability to ASEAN

SCG began its business expansion in ASEAN with Vietnam in 1992 and in Indonesia in 1995. Currently, all core business units of SCG, namely Cement-Building Materials Business, Chemicals Business and Packaging Business, have started their operations in many ASEAN countries, including Vietnam, Indonesia, Cambodia, Philippines, Laos, Myanmar, Singapore and Malaysia.

As SCG emphasizes on health and safety in the workplace, travelling and transporting, the Company continues to build Safety Culture within the organization through the SCG Safety Framework in a combination with Safety Performance Assessment Program (SPAP) and Life Saving Rules under the same measures applied in Thailand. Monitoring and supervision on the standard of factory environmental management have been strictly proceeded. Tools and manufacturing processes have continually been monitored and improved for increased efficiency. A close supervision on emissions, dust and wastewater have been carried on to assure that the levels are not over the limit assigned in the law to prevent environmental impacts that may have on communities near the sites of the factories. SCG enhanced buffer zone development to create good environment for SCG factories and areas outside to ensure that there will not be any complaints to the factories regarding this issue. Since the start of our expansion to other countries, SCG has brought along its philosophy – adherence to fairness, dedication to excellence, belief in the value of the individual, and concern for social responsibility. The Company has always fostered its employees to adhere to the philosophy. SCG also aims to unlock and develop potential of local employees in those countries with the similar standards as provided to employees in Thailand. The Company focuses especially in the three dimensions of sustainable development: Climate Resilience, Circular Economy and Health and Safety to bring in sustainability to all the countries that SCG operates in.

COVID-19 Relief and Support

In the time of COVID-19 in 2020, SCG President and CEO held meetings with employees in ASEAN countries as in Thailand to build understanding and awareness among employees so that they get prepared for the situation and changes. They were encouraged to follow the COVID-19 measures and control. The President and CEO expressed sincere care and interest in all local employees’ health and safety.

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In Vietnam, SCG delivered prevention equipment such as face masks and cleansing gels and donated medical innovations such as Negative/Positive Pressure Isolation Chamber units to offices of the government sector and communities near its factory sites to help lower risks of infection, worth 3,500 million Vietnamese dong of donation and support. For the COVID-19 situation in Indonesia, the crisis was quite critical, with the highest rates of infections among countries in ASEAN. SCG, hence, cooperated with the Government of Indonesia in establishing the CareTogether Project with a donation of 50 units of the Negative/Positive Pressure Isolation Chamber to ensure a safer operation for medical staff. Other equipment donated to medical workers included masks and PPE suits, worth nearly 1 billion IDR.

Care and Support to Employees, Environment and Society in Vietnam

SCG has been recognized in Vietnam as an international organization that conducts business with adherence to fairness and social responsibility. SCG believes in the value of the individual and provides good employee welfare and various training courses, focusing on employees’ skill development, e.g., leadership and management skills, analytical thinking skills, creative thinking skills, and communicative skills. These courses are organized in an aim to enhance skills of employees to take on changes in the business world and to increase organizational commitment and pride among local employees.

SCG encourages and supports its factories to organize a project that follows the Climate Resilience Strategy and Circular Economy Principles, for example, SCG Solar Rooftop Project, Equipment Upgrade Project for increased power consumption efficiency, Waste Heat Generator (WHG) Project, Pulverized Fuel Ash (PFA) as Clinker Replacement Project, Synthetic Gypsum as Natural Gypsum Replacement Project, and Used Paper for New Paper Project.

2020 Highlights of Community and Social Involvement Projects are as follows:

• SCG Sharing the Dream Scholarship The project has been initiated since 2007. Up to present,
4,300 grants, with a total worth of 1,239,000 US dollars, have been given to youths in a secondary and higher education.

• SCG Outdoor Gym Project 2020 SCG and the Dong Hoi City authorities inaugurated to build an
outdoor community gym with exercise equipment in Dong Hoi city in Quang Binh province. The area was renovated, to be used as a beautiful common area for everyone, aiming toward a total wellness for all. SCG sponsored over 17 tons of cement in setting up the area. This project is one of prototype projects in which SCG plans to expand to other areas.

• Waste Sorting at Source Prototype Project SCG initiated a collaboration with UNILIVER, DOW Chemical,
and The Ministry of Natural Resources and Environment in Vietnam to organize a project model for waste sorting at source with around 1,300 students at Long Son elementary school. Through this project, students learned about waste handling. There is a plan to expand the target to teachers, families, and communities so that people in communities know how to sort and separate waste to decrease an amount of total waste needed to be disposed. The project also aimed to increase waste recycling as well
as to add value to waste, in line with the Circular Economy Principles.

• Disaster Relief in 2020, SCG provided around 3,000relief supply bags and relief grants worth 4,200 Vietnamese dong to those affected by severe flood in the central part of Vietnam. SCG employees got together to assist people in a community in home repairing and rebuilding. SCG sponsored morn than 400 tons of cement in construction

A Path towards Circular Economy Principles in Indonesia

SCG focuses on cultivating trust and confidence with people in Indonesia through strong sustainable development, especially along with Circular Economy principle. The focus responded to policies of the Government of Indonesia in reducing waste in ocean by 70 % by 2025. With our effort, SCG received Indonesia Best Corporate Sustainability Initiatives 2020 – the Best Circular Economy Award.

SCG gained recognition as an outstanding firm for driving forward to sustainable development with circular economy by MIX Marketing Communications Magazine, the biggest marketing magazine in Indonesia.

SCG continues to run projects to drive Circular Economy Principles into factories, for example, Condensate Recovery Project, Rejected products into Alternative Raw Materials Project, Used Paper Recycling Project, and Solar Rooftop Project based on the Climate Recilience Strategy.

In 2020, SCG pushed forward to the Circular Economy path through many outstanding activities as follows:
• SCG SD Symposium Indonesia 2020 – “Circular Economy: Collaboration for Action” SCG held a symposium to make a collaboration with other sectors in Indonesia to foster the implementation of Circular Economy in waste management solutions and restoration of natural resources and environment. In this event, SCG had an opportunity to present and share its remarkable projects including Plastic Asphalt Road Project, SCG Fish Homes from plastic resins, Zyclonic Innovation Project, and Waste and Wastewater Treatment. These projects have drawn great attention from the government and the private sector in Indonesia as possible solutions for the future.

• Joining The National Plastic Action Partnership (NPAP) SCG has joined in a collaborative
network of international and national organizations in Indonesia, aiming to become a plastic pollution-free country. The collaboration is supported by World Economic Forum (WEF) and Global Plastic Action Partnership (GPAP).

• Joining IP2WM – Indonesia Partnership on Plastics Waste Management SCG joined a partnership platform between the government, the private sector, NGO, and the Academic sector in handling plastic
waste management in Indonesia. In 2020, several areas were evaluated and selected to start a pilot of a prototype project of waste management. The project is planed to start in 2021. The Circular Economy principles has also been integrated in several activities for SCG’s community and social development as follows.

• SCG Sharing the Dream Scholarship SCG started the project in 2014. Up to present, the project
has offered around 2,700 scholarships for youths both in secondary and higher education. In 2020, the Sharing the Dream Scholarship in Indonesia received an award in Top CSR Awards organized by Top Business Magazine. In this project, students who receive a scholarship will write an article about how to apply Circular Economy principles on a daily life basis.

• Driving Circular Economy into a Community SCG, working with students under the SCG Sharing the
Dream Scholarship Project and Soreang Bandung community, initiated a project of fabric and textile waste recycling. The fabric wastes were usually been disposed by incinerating. Wastes of textile materials can be turned to value-added materials, e.g., fabric bags, jewelries, and many other items. At the same time, this solution also helps create jobs and extra income to people in a community as well
as increase an understanding of Circular Economy principles that can be put into practice.

• Support to Young Professional Golf PlayersSCG organized the Inspirational Training for 40 junior golf players with the world’s leading golf players from Thailand, Ariya and Moriya Jutanugarn. In the training, they also learned more about waste handling in their daily life routine based on Circular Economy principle.