SCG is firmly on the path toward achieving Net Zero greenhouse gas emissions by 2050 and is working towards its targets, validated by the Science Based Targets Initiative (SBTi), to reduce direct and energy-related emissions (Scopes 1 and 2) by 25% by 2030 compared to a 2020 base year, and cut value chain emissions from fossil fuel sales to external customers (Scope 3) by at least 25% by 2031 against a 2021 base year. To drive these goals, SCG has adopted the Marginal Abatement Cost Curve (MACC) as a tool for prioritizing decarbonization projects based on their business value and decarbonization potential. Using this tool, projects are categorized into three groups: 1) Do Now, which are cost-effective and ready for immediate implementation; 2) To Decide, which are technologically ready but require supporting factors to be investment-worthy; and 3) Decide Later, which represent high-potential projects awaiting future technological maturity or more favorable pricing.

Climate Resilience and Energy

SCG has demonstrated its commitment to take climate action. In the latest development, SCG joins the

SCG has established both short-term and long-term greenhouse gas emission reduction targets in accordance with the Paris Agreement to limit global temperature rise to no more than 1.5 degrees Celsius by 2050. In 2021, SCG joined the Science Based Target initiative (SBTi), which certifies organizations’ targets according to scientific calculation standards. In 2023, SCG received SBTi certification for its near-term targets to reduce GHG Scope 1 and 2 emissions by 25% by 2030 compared to the base year of 2020 and decrease GHG Scope 3 emissions from fossil fuel sales to external customers by at least 25% by 2031, compared to the base year of 2021.

While the SBTi certification marks a significant milestone in SCG’s journey toward building a green society, numerous challenges remain as success requires cooperation across all sectors, including government agencies, private organizations, and civil society, both at national and global levels, such as the Federation of Thai Industries, the World Business Council for Sustainable Development (WBCSD), the UN Global Compact Network Thailand (UNGCNT), and the Thailand Business Council for Sustainable Development (TBCSD), with the goal of joining forces to accelerate Thailand’s transition to a low-carbon society while leaving no one behind.

Near Term Target has been validated by SBTi.

SCG commits to reduce absolute scope 1 and 2 GHG emissions 25% by 2030 from a 2020 base year*. SCG also commits to reduce absolute scope 3 GHG emissions from the use of sold fossil fuels 25% by 2031 from 2021 base year.

*The target boundary includes biogenic emissions and removals from bioenergy feedstocks.

These new and more ambitious targets challenge SCG to step up innovation and adoption of energy transition technology, in tandem with collaboration with supplier to reduce GHG scope 3.  

SCG Net Zero Roadmap

Operational Strategies

• In response, SCG has established a sustainability strategy not only to serve as a core mechanism for driving business growth and creating economic, social, and environmental value but also to support a balanced and sustainable transition toward a low-carbon economy through decarbonization along the value chain
• To ensure this strategy is implemented systematically and linked to business decision-making, SCG has updated its SCG Sustainable Development Framework to align with the International Sustainability Standards Board (ISSB) standards. Comprising four core elements: Governance, Strategy, Risk Management, and Metrics & Targets, this framework enables SCG to integrate financially material topics into strategic planning, capital allocation, and the management of risks and opportunities across the value chain. This approach enhances transparency, builds credibility in disclosure, and strengthens competitiveness and resilience in a rapidly evolving global context.

Corporate Governance

SCG operates under the principles of good corporate governance, prioritizing transparency and verifiability in data management in alignment with both domestic and international sustainability regulations to accelerate the transition toward sustainable operations and achieve the ultimate goal of Net Zero emissions. To support this systemic transformation, SCG has fostered strong collaborations across the entire value chain with all sectors, including the government, the private sector, and local communities.

In 2025, SCG announced the SCG Net Zero Policy, which defines a clear and unified operational framework for all business units across SCG. Under this policy, the Board of Directors plays a pivotal role in determining the organization’s sustainability direction and strategies, overseeing operations to ensure alignment with the SCG Net Zero Roadmap, and systematically monitoring and evaluating ESG performance on a continuous basis.

Corporate Governance Structure

SCG’s governance structure is systematically integrated to ensure transparency and efficiency in strategic decision-making, execution, and monitoring. Disclosures are conducted in accordance with international standards through annual reports, sustainability reports, and SCG’s website to ensure stakeholders have access to all material data.

SCG also employs internal controls and multi-level auditing systems, comprising internal audits, third-party verification, and mechanisms for ethical governance and whistleblowing. Sustainability performance and progress on key initiatives are regularly reported to the Board of Directors to enable comprehensive oversight and a timely response to emerging changes.

To achieve tangible results in sustainability governance, SCG has defined clear roles and responsibilities across all levels of the organization, from the Board of Directors, which steers the organization’s strategic direction, to sub-committees, executives, and operational units in each function. These roles are systematically linked to encompasses policy formulation, strategy implementation, performance tracking, and reporting to stakeholders.

• SCG has integrated climate change and related issues, including TCDF, in SCG managing structures from top management to operations business; The Board of Directors, President & CEO, The Environmental Sustainability Development Committee, SCG Sustainable Development Committee (SDC), SCG Climate Change & Energy Committee, SCG Risk Management Committee, and business units.
• Board will decide the company direction including overall climate change strategy and cascade to management team leading by President & CEO
• President & CEO leads ambition all business units to net zero by setting short term, medium term and long term plan to align with Paris Agreement and countries’ Nationally Determined Contributions (NDC). President & CEO supports investments and economic instruments; Internal Carbon Pricing (ICP) to encourage environmental investment projects.
• The Environmental Sustainability Development Committee serves as a critical mechanism supporting the Board of Directors in its oversight of climate-related sustainability and SCG’s transition to Net Zero emissions. Its role includes overseeing and supporting the Management’s discharge of duties and fostering a unified understanding across the various sub-committees. Furthermore, the committee reviews GHG reduction investment plans and evaluates the performance of major projects using internationally recognized tools, such as the Marginal Abatement Cost Curve (MACC) and Internal Carbon Pricing (ICP), to support decisions that align with the Company’s decarbonization targets and enhance competitiveness both in the short and long term.
• SCG SDC provides global trends, ESG, SD framework, networking, such as WBCSD, UNGC, Ellen MacArthur Foundation, GCCA and monitoring all SCG performances related to climate change & TCFD.
• SCG Climate Change & Energy Committee is responsible to climate change and energy issues, set up climate strategy, net zero pathway, transition risk, physical risk and adaptation plan, R&D GHG reduction, collaborating with global and local networks for new technologies such as CCU/S, Energy storage, Hydrogen energy sources.
• SCG Risk Management Committee creates risk culture, risk scenario which potential impacts to SCG.

Strategy

SCG conducted scenario analysis embed in strategic business planning which is in line with enterprise risk management framework to assess materiality of climate-related risks and opportunities in term of both business and externality impacts. SCG Climate Change and Energy Committee is responsible to set up and propose to president & CEO and board of directors. SCG foresees both climate-related risks and opportunities over the near term (2030), medium term (2040) and long term (2050).

1. Growth in renewable energy.
2. Reduction in fossil fuel consumption.
3. Improve or modify process and equipment to enhance energy efficiency.
4. Increased market demand for low-carbon products.
5. Research and development (R&D) of technology to accelerate GHG mitigation, Carbon Capture, Utilization and Storage to achieve Net Zero in 2050.
6. Restoration of terrestrial and marine ecosystems as carbon sinks.
7. Awareness raising on energy conservation and climate resilience among employees and contractors.
8. Implement Internal Carbon Pricing (ICP) at 25 USD/ton CO2 for investment, which reduce GHG scope 1 and 2.
9. Changes in policies, rules, regulations, and requirement to expedite decarbonization.

Risk Management

SCG prioritizes the development of an effective risk management system to accommodate the rapidly changing business landscape. To this end, the Company continuously monitors and analyzes key risk factors, encompassing material topics such as climate change, digital technology development, supply chain volatility, and evolving sustainability regulations.

Risk management is conducted through a systematic process, beginning with the analysis of global megatrends to assess systemic risks that could impact the industry, followed by an analysis of the specific challenges facing each business. The results of the analysis are then translated into clear operational guidelines aligned with the context of each business unit, enabling SCG to conduct comprehensive strategic planning while maintaining the flexibility needed to respond to risks as they arise.

SCG has integrated key material topics identified through the double-materiality assessment across all business units to formulate “sustainability-related risks and opportunities” (SROs). These SROs are directly linked to the medium-term plan (MTP), which allows each business unit to systematically define strategies, allocate resources, and evaluate investments that address medium-to-long-term risks and opportunities, ensuring alignment with organizational goals.

This integration strengthens efficient coordination across the organization by establishing a shared operating framework for all units, while still allowing each business to tailor strategies to its specific context. Furthermore, it fosters collaboration, knowledge exchange, and joint innovation development between business units, thereby enabling SCG to accurately anticipate risks, respond promptly to changes, transform challenges into opportunities for value creation and competitive advantage, and ultimately support robust and sustainable long-term growth.

SCG conduct risk assessments against international frameworks to drive change; integrate risk assessments

across multiple sustainability-related financial disclosure frameworks; and analyze the interconnectivity of

risks across short-, medium-, and long-term timeframes. The frameworks used include:

• Task Force on Climate-related Financial Disclosures (TCFD): Analyze climate risks, including transition risks, such as changes in policies and regulations and technological changes, and physical risks from natural disasters.
• Taskforce on Nature-related Financial Disclosures (TNFD): Assess risks arising from reliance on and impact on natural resources, biodiversity loss, and ecosystem degradation.

SCG has established processes for identifying, assessing, and managing issues related to climate change, including physical risks, transition risks, and adaptation plans in the current, medium-term, and long-term. SCG has a risk assessment system in place for all its units, requiring assessments of climate change-related risks, such as flooding and drought, to be conducted at least quarterly or when significant changes occur.

Metrics and Targets

SCG has disclosed GHG scope 1&2 and 3 emissions annually in SCG Sustainability Report and on SCG website.

Target

• Net Zero GHG Emission by 2050 (scope 1&2)
• By 2030, reduce GHG scope 1 and 2 emissions by 25% from 2020 base year.
• By 2031, reduce GHG scope 3 emissions from the use of sold fossil fuels by 25% from 2021 base year.
• By 2025, reduce Energy Consumption by 13% compared with business as usual (BAU) from the base year of 2007.

2024 Performance (Metric)

• GHG Scope 1&2 emissions reduction by 15.14% compared with the base year of 2020
• GHG Scope 3 emissions from the use of sold fossil fuels by 24.98% compared with the base year of 2021
• Energy consumption reduction by 5.8% compared with BAU from the base year of 2007
• Portion of Alternative Fuels by 23%

Green Logistics

• SCG Logistics originated as a transportation and distribution division serving the Siam Cement Group (SCG). In 2000, it underwent a name change to SCG Logistics in alignment with the branding policy of the SCG Group. In response to evolving business trends and heightened customer expectations, SCG Logistics has proactively broadened its service portfolio. This expansion encompasses various offerings, such as combined transport solutions to assist small entrepreneurs, temperature-controlled warehousing and transportation services, express parcel delivery services, and online warehouse services. Adhering to the principles encapsulated in the 4Cs—Convenience, Confidence, Cost Competitiveness, and Care—SCG Logistics is poised to advance and tailor its services to fulfill your requirements, propelling success for your business
• JWD Group embarked on its journey in 1979 as a specialized logistics services provider, offering services in home and office relocation, property development, and document storage. Later, the company transitioned into comprehensive logistics and supply chain solutions, emerging as a leader in three distinct industrial sectors demanding specialized expertise: automotive and parts, chemicals and dangerous goods, and food and cold chain. Up to the present moment, JWD Group has extended its domain of expertise to the ASEAN region, broadening the delivery of innovative logistics solutions.
• In 2023, JWD Info logistics a company within the JWD Group, merged with SCG Logistics Management, resulting in a name change to SCGJWD Logistics Public Company Limited

SCGJWD have Green Strategy for logistics sustainability towards customer, community and transportation contractors. We apply as core principle Backhaul Logistics Operation to manage rounds of freight trucks, and reducing running on empty trip, while using Multi-Modal logistics to manage big lot haulage to improve efficiency.

Climate Change and Energy targets

• Net Zero by 2050

• GHG Emissions Reduction 30% by 2027 compared with BAU from the base year of 2023

• Increase the proportion of renewable energy consumption by 5% (of total energy) compared to the base year 2023.

• Energy consumption (fuel and electricity) Reduction 5% (of total energy) compared to the base year 2023.

Green Logistics Program for GHG Reduction, such as

• EV Truck: Replaced diesel truck with EV truck, reduce fossil fuel for transportation by 20,000 liters per month or 210,000 liters per year

• EV Forklift and Automated Storage Retrieval System (ASRS): Replaced diesel forklift with EV Forklift and using technology for products storage automatically

• Fleet Utilization Management Program: All transportation vehicles are equipped with GPS and use a software system to calculate transportation routes. To get the most effective distance and reduce fossil fuel in transportation.

• Solar Rooftop: use electricity from renewable energy in the warehouse to reduce GHG emissions

SCGJWD is the largest cold storage warehouse service provider in Thailand, with storage capacity over 200,000 pallet across strategic locations nationwide. These warehouses support products in the food and pharmaceutical sectors, which require consistently controlled low temperatures. The adoption of the CHILLOX solution developed by SCGC marks a significant step forward for SCGJWD in enhancing our cold storage capabilities and advancing environmentally friendly logistics systems. This initiative aligns with the goal of achieving Net Zero by 2050. The solution has been piloted at Pacific Cold Storage Company Limited (PCS), with plans to expand its implementation of cold storage facilities at key strategic locations nationwide.

SCGJWD places importance on assessing risks from climate change as an operational strategy to improve and increase the ability to cope with climate change, along with conducting business activities that give importance to all aspects of ESG. Focusing on implementing the regulatory principles recommended by the Task Force on Climate-related Financial Disclosures (TCFD) as part of business operations, which will begin in 2024 onwards.

Additionally, SCG is the first in Thailand to successfully implement 5G technology in the industrial sector by collaborating with AIS and Prince of Songkla University to develop a remote-controlled EV Unmanned Truck system. This initiative integrates AI-powered unmanned EV trucks into fleet management systems within mines, enhancing operational efficiency, reducing accident risks, and minimizing environmental impacts. Two trucks are already operational at Khao Wong limestone quarry in Saraburi, with plans to expand the deployment to other mines as part of ongoing smart green mining initiatives. To date, these limestone EV trucks have contributed 3,083 tons in avoided carbon dioxide emissions in total.

https://www.scgjwd.com/en/services/logistics-supply-chain/logistics-infrastructure

SCGJWD Environment and Climate Policy

SCGJWD Risk Management

Document Download

• SCG Net Zero Policy
• SCG TCFD Report 2024 (Task Force on Climate-Related Financial Disclosures Report)