Human Rights - SCG Sustainability

SCG is committed to ethical business practice and adheres to the Business Philosophy in its business operations. Since 1987, it has included human rights and labor rights in SCG Code of Conduct, which has been reviewed to ensure currency and align with international standards/ guidelines especially giving support to the Universal Declaration of Human Rights: UDHR, United Nations Global Compact: UNGC, United Nations Guiding Principles on Business and Human Rights: UNGP, the International Labor Organization Declaration on Fundamental Principles and Rights at Work: ILO, and Organization for Economic Co-operation and Development (OECD) – a testament to SCG’s commitment to human rights and equitable treatment of all without discrimination in both its direct activities, the activities of suppliers/ contractors in the business value chain and Joint ventures.

With greater potential impact on business operations resulting from new investments or mergers and partnership abroad. SCG committed to elevate its practices to cover own operations, suppliers, contractors, joint ventures, and stakeholders across the value chain as well as to new investments in Thailand and abroad.

Moreover, we joined with The United Nations Global Compact (UNGC) since 2012 and continue to strengthen our implementation and report according to The United Nations Global Compact (UNGC) Communication on Progress – Advanced Level annually.

Read more detail on Human and Labor Rights in SCG Code of Conduct, P.17-19 and SCG Supplier Code of Conduct.

Target

Zero case of human rights violation.
Female employees in all management positions account for 27% by 2025.
100% of employees undergo human rights training and pass Ethics e-Testing.

Strategy

Integrate Human Rights, diversity and inclusion into business operations across the value chain both in Thailand and Abroad.
Foster value and initiate human rights programs for all stakeholders across the value chain and society.
- Employees: Respect rights as a fundamental principle and enhance diversity and inclusion.
- Contractors/ Suppliers: Strengthen human rights risks management in order to minimize risks of human rights violation and enhance quality of life with respect to labor, health and safety, and well-being.
- Communities: Foster engagement based on respect for fundamental rights and enhance quality of life.
- Customers: Deliver products, services, and solutions that offer quality and safety, which are part of fundamental rights, and promote quality of life.
- Other Stakeholders: Continuously undertake human rights risk management to prevent adverse impacts that SCG has caused or contributed to or directly linked to its activities across the value chain.
Serve as a model and share human rights experience with other organizations.

Management

Announce and review SCG Human Rights Policy and SCG Diversity and Inclusion Policy in line with United Nations Global Compact (UNGC), Universal Declaration of Human Rights (UDHR), United Nations Guiding Principles on Business and Human Rights (UNGPs), the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work, Organization for Economic Co-operation and Development (OECD), and other international standards, as well as driven implementation of such policies through SCG Sustainable Development Committee that report to the Environmental Sustainability Development Committee comprises three directors and one top executive, who serves as secretary.
Establish a unified organization-wide risk management framework and carried out human rights due diligence process in all facets in a proactive manner to prevent human rights violation.
Establish targets and indicators to monitor human rights performance.
Put in place mechanisms for handling complaints and establish remediation measures through stakeholders engagement in case of human right violation.
Communicate and organize training to develop awareness, knowledge, and understanding for employees at all levels.

Key Performance 2024

0 case of human rights violation
24.8% Female share of total workforce and 27.9% Female in all management positions
100% of employees who undergo human rights training and pass Ethics e-Testing

Diversity Indicators

Female share of total workforce 24.8%
Females in all management positions 27.9%
Females in junior management positions 29.9%
Females in top management positions 14.8%
Females in management positions in revenue-generating functions 27.6%
Female in Science, Technology, Engineering and Mathematics positions (STEM-related positions) 28.6%

Human Rights Management

SCG is committed to conducting business with respect for human rights in accordance with internationally accepted standards and United Nations Guiding Principles on Business and Human Rights: (UNGPs) by adhering to 3 principles as follows;

Protect

States must protect against human rights abuse within their territory and/or jurisdiction by third parties, including business enterprises to prevent, investigate, punish and redress such abuse through effective policies, legislation, regulations and adjudication.

Respect

SCG adheres to the Business Philosophy and SCG Code of Conduct in its business operations and comply with the law as a basis and supervision through relevant policies to support concrete implementations/ initiatives. Human Rights Due Diligence Process are in place covering all group of stakeholders such as employee, contractors, suppliers, communities, customers especially vulnerable groups such as women, children, indigenous people, migrant workers, LGBTQI+, People with disability throughout the value chain to prevent human rights violation as follows.

Human Rights Policy

Approved by chairman of the board of directors to demonstrate our commitment to conducting business with respect for human rights in accordance with related laws, regulations, and internationally accepted standards and committed to prohibiting harassment both

Sexual harassment
Non-sexual harassment

Including zero tolerance policy for discrimination and harassment by defining corporate human rights expectations on personnel, business partners and other business relationships directly linked to business activities, products and services both Thailand and abroad which cover all groups of stakeholders i.e. Shareholders/ Investors, Employees, Suppliers and Contractors, Customers, Communities, and Civil Societies, Academia, Opinion Leaders, and NGOs.

Diversity and Inclusion Policy

To embrace diversity and inclusion and treat each other with respect and honor on equality basis to all stakeholders without considering differences in physical or mental status, race, nationality, national or social origin, ethnicity, religion, gender, sexual orientation, language, age, skin color, education, social status, culture, tradition or any other status.

SCG Privacy Policy

To respects privacy rights of customers, shareholders, employees, and all related parties. To ensure that personal data of such persons is protected and processed in accordance with applicable personal data protection laws.

Stakeholder Engagement Policy

To honors the rights of stakeholders and treats them fairly, listens to their opinions and concerns, builds understanding with stakeholders, encourages co-operation constructively in matters that interest stakeholders.

Implementation according to related human rights policies driven by Sustainable Development Committee, SCG covering suppliers/ contractors in value chain and joint ventures supervision by SCG Supplier Code of Conduct and Expectation letter in driving and promoting suppliers/ contractors and joint ventures to conduct business with respect to human rights including using leverage with the company that may cause human rights negative impacts.

Remedy

SCG has an effective and up-to-date complaint mechanism for stakeholders affected by its business operations through the complaints system. When a complaint is filed, it must go through a process of collecting information or setting up a fact-finding working group and an investigation committee to find the facts, and provide legal and appropriate remedial measures, including approving punishments, as appropriate. SCG considers related information confidential and will disclose only as necessary, taking into account the safety and damage of the complainant, the information provider, the source of the information, or the relevant persons. Protection is provided to those who file complaints and provide information in accordance with the policy on receiving complaints of corruption and wrongdoing. In the case where the complainant reveals himself/herself, the complainant will be notified within 7 business days from the date of the conclusion of the results.

Escalation process and corrective or disciplinary action

SCG will not tolerate any discrimination or harassment and will protect employees at all levels from being discriminated against or harassed in any form. SCG discloses its guidelines for receiving and responding to complaints through the complaints system and conducts fair investigations if any incidents of discrimination or harassment occur. In 2023, there was 1 human rights violation case related to sexual harassment that already engaged and provided appropriate remedies to the affected person. The type of remediation actions taken in this case was corrective and disciplinary actions taken to the offender.

In 2024, there’s no human rights violation. However, if human rights violation occur, SCG has procedure for handling complaints covering fact finding and investigation process as well as determining mitigation and remediation actions by relevant committee. The type of remedies available include apology by abuser, ensuring the victim that violation stops, compensation payment, provide physical/ psychological treatment and counselling, facilitate access to legal remedies according to national laws & regulations, and etc.

In the event of discriminatory behavior, harassment or violation of human rights, disciplinary punishments will be imposed in the following forms:

Investigation committee will consider remediation actions and disciplinary actions case by case. However, SCG still committed to prevent violations including raising awareness of human rights until becoming an organizational culture.

SCG drive and foster human rights implementation through Human Rights Framework and Human Rights Due Diligence Process Guideline that align with international standards in every business of SCG both Thailand and abroad cover all group of stakeholders.

Human Rights Framework

Human Rights Due Diligence Process

SCG has Human Rights Due Diligence Process Guideline which consist of 4 steps to indicate and assess risks, set up mitigation or remediation actions, monitoring and tracking, and communicate risk management results.

Human Rights Due Diligence Process

In 2024, SCG conducted a Human Rights Due Diligence Process covering every activity of SCG’s business across the value chain, including suppliers and contractors, new investments, and mergers and partnership, and related stakeholders through stakeholder engagement to understand stakeholders need. Moreover, we use the result from country/ industry specific issues, consultation, complaint, and engagement survey as current impact to revisit human rights issues in risk identification step and assess risk annually and there was 1 salient human rights issues on Health and Safety.

Human Rights Risks Assessment

Therefore, SCG has established mitigation actions for salient issue and the monitoring of the effectiveness of such actions across all businesses both in Thailand and abroad (more information in SD report 2024, P. 84).

Diversity Equity and Inclusion

SCG has the Diversity Committee to drive diversity and inclusion management in the organization, non-discrimination against gender, generation, disability, nationality, religious, culture, and any other diversities by integrating the potential of diversity to bring about the sustainable development of the organization and implement continuously and embed diversity and inclusion in human resources management, including recruitment, employment, development, career advancement, performance and remuneration management, retirement, and others.

Read more diversity indicator performance in SD Report 2024, Labor and Social development.

Human Rights Programs/ Initiatives

Employee

• Improved and expanded welfare benefits for all employees, such as gender reassignment surgery leave, care leave for sick loved ones, funeral leave, leave for managing funeral arrangements for a spouse regardless of gender, and leave for religious duties.

• Strengthen a culture of diversity, equity, and inclusion (DE&I) by encouraging employees to work together harmoniously through initiatives such as BE YOU Club an employee affinity group to promote an inclusive organizational culture that embraced diversity, Diversity Inspiration Talks, and Happy Space activities. Moreover, we providing a channel for advice, consultation and mentoring on Diversity, Equity and inclusion by life coach and the SCG Diversity Committee.

This image has an empty alt attribute; its file name is BE-you-club.gif

Provides workplace facilities to accommodate diverse employee needs, such as accessible restrooms, nursing rooms, muslim prayer rooms, rest areas, ramps, and etc.

Training and guidance regarding diversity: Provided ongoing human rights training for employees at all levels as follows;
- “ESG Leadership Program” a training for employees to raise awareness and understanding on ESG that cover Human Rights, Diversity, Equity and Inclusion,and forms of discrimination and harassment in the workplace for future leader of SCG and can be applied in business operations according to sustainable development guidelines.
- “Flagship programs” a training for employees at each level and development programs designed for each professional career path and on-site role which incorporate ESG knowledge covering human rights, diversity, equity and inclusion, and practical examples to ensure employees are equipped with the understanding and awareness of sustainable development.
- Developing and communicating examples of behavior that fall under harassment and discrimination, and integrating them into the Ethics e-Testing, which includes annual knowledge and understanding tests.
- Established a GRC Helpline as a channel for employee consultation on human rights.
Communicate human rights knowledge to employees at all levels for better understanding and raise awareness of related human rights issues such as harassment, discrimination, diversity & inclusion etc. through various communication channels.

Contractors/ Suppliers

SCG has collaborative plans with supplier to advance their potentials, through promotion and integrated practice of ethics, social and environmental responsibility, aimed at sustainability throughout the value chain. The highlight implementations as follows;

SCG Supplier Code of Conduct is hereby revised in 2022 to improve the clarity and alignment with the current situation as well as SCG’s ESG pathway and cover more related human rights issues such as freedom of association and right tocollective bargaining, prevention of human rights violations and communicate via the Supplier Day, Supplier portal, and etc. to contractors/ suppliers to understand the intentions and guidelines for doing business together and supervising new and main suppliers to commit to comply SCG Supplier Code of Conduct continuously since 2014.

Human Rights Risk Assessment in Supply Chain: SCG applied enterprise risk management framework and embed risk assessment process in “SCG Sustainable Procurement Framework” which covers Human Rights and related issues. In 2024, 100% supplier of procurement spend processed through the annual Environmental, Social, and Governance (ESG) assessment.
Supplier Portal: Platform for assessment process covering human rights issues, monitor suppliers/ contractor’s performance and communicate information including access to grievance channels.
Capability building: Enhance suppliers/ contractors’ capability for business sustainability including human rights related issues i.e. Contractor Safety Management, Carrier development programs, and Safety Management for Service Solutions. Moreover, In 2024, SCG conducted human rights assessments for 5 business partners regarding labor rights protection, employment conditions, health and safety, and developing the collaborative improvement plans.
Monitoring and auditing programs:
- 97% of contractors and suppliers demonstrated intent to comply with SCG Supplier Code of Conduct.
- 100% of major carriers processed through Fleet Carriers Standards assessment.
- 86% Operation contractors certified under Contractor Safety Management.

Joint Ventures

SCG expects and encourage joint ventures where SCG does not have overall control to emphasize the importance of a commitment to human rights. The highlight implementations as follows;

Human Rights Risk Assessment: SCG applied human rights risk assessment by developing human rights questionnaire to monitor the status annually and jointly plan to support the implementations of Joint ventures from SCG.
Capability building: raise understanding and awareness by training and sharing from SCG and external consultant.
Monitoring and auditing programs: 100% of Joint Ventures* have been assessed for Human Rights risks.

Community

SCG set target to reduce inequality 50,000 persons in 2030 by Creating Educational Opportunity, Improving Job Security, and Enhancing Well-being through the following programs.

Careers: Creating Jobs in the SCG business value chain.

• “Thaksa Phiphat School,” which focuses on training professional truck drivers and emergency ambulance drivers. The school utilizes Virtual Reality (VR) technology to simulate real-life situations, enhancing learning opportunities and safety. This initiative helps develop professional skills and improve long-term road safety.

• Q-Chang platform focuses on training to enhances the technical skills of technicians to increase their income and expanding business opportunities.

• The “Power of Community” project, which focuses on fostering sustainable community-based jobs. This involves providing training to community enterprises in local product processing, value addition, and marketing principles, along with supporting the expansion of product distribution channels. This helps increase economic opportunities, enhance the value of local products, and strengthen communities for long-term growth.

Education:
• SCG has granted Sharing the Dream scholarships in Thailand, Vietnam, Indonesia, the Philippines, Cambodia, and Laos to provide support for well-behaved students with attention to education and a volunteer mindset.
• “Learn to Earn” by the SCG Foundation and network partners to develop knowledge as well as essential hard skills and social skills. Also needed are future skills that are predicted to be in high demand in the future job market such as programmers, nursing assistants, dental assistants and community care worker.

Well-being: To enable the vulnerable groups to access public health services.
• The Digital Doctors: Telemonitoring and Telemedicine to Offer Remote Treatment of Patients project via DoCare, a health and safety telemonitoring solution with an automatic health data collection system, and the telemedicine technology.
• The “Happy and Healthy” project in collaboration with the Crown Property Bureau and volunteer doctors, the project operates mobile cataract surgery units, and dental services. This ensures that those in rural and remote areas have access to quality medical care.

Read more detail on Annual Report, P. 152-157.

Human Rights Awards in 2024

SCG was given a Human Rights Award (Outstanding Achievement) in the large business organization category for a fifth consecutive year from the Rights and Liberties Protection Department, the Ministry of Justice.

Member of The Sedex Members Ethical Trade Audit (SEDEX)

Since 2019, SCGP joined with The Sedex Members Ethical Trade Audit (SEDEX), a global organization whose members are business organizations worldwide. It requires the members to comply with SEDEX standards in four areas: labor standards, health and safety, business ethics, and environment, which assure company operations and business partners are responsible for business practices and respect for human rights.

In 2024, 9 subsidiaries companies have implemented SEDEX’s regulations and passed the audit by external auditors.

DOCUMENT DOWNLOAD

SCG Human Rights Expectation Letter
Human Rights Policy
Diversity and Inclusion Policy
Privacy Policy
Stakeholder Engagement Policy
SCG Human Rights Due Diligence
Declaration on Gender Equality
SCG Code of Conduct
SCG Supplier Code of Conduct
WBCSD CEO Guide to Human Rights 2020