Sustainable Product and Service Management

SCG places strong emphasis on managing products throughout their entire life cycle, with particular focus on the end-of-life stage. This approach aims to minimize environmental and health impacts on consumers while integrating the following key principles:

• Climate Resilience: Designing and developing products that can adapt to and withstand the impacts of climate change. This includes improving energy efficiency and reducing greenhouse gas emissions.
• Circular Economy: Promoting resource efficiency through reuse and recycling to minimize the use of virgin materials and reduce waste. This includes the use of post-consumer recycled content (PCR).
• Product Safety: Ensuring that products meet safety standards and are properly managed to protect both consumers and the environment. This includes compliance with the Globally Harmonized System (GHS) and clear communication on proper usage and disposal.

🔄Product Management Approach

• Conduct Life Cycle Assessment (LCA) to evaluate environmental impacts across the entire value chain—from upstream to downstream.
• Promote product certifications such as Carbon Footprint, Green Label, Energy Efficiency, and SCG Green Choice to enhance consumer confidence.
• Provide employee training and communicate with customers on proper product usage and responsible disposal practices.
• SCGC implements product stewardship in alignment with the Globally Harmonized System (GHS) to ensure safe and responsible use throughout the supply chain.
• SCGP focuses on designing and developing products that are easy to recycle, lightweight, and incorporate post-consumer recycled (PCR) materials from used packaging.

🌱 Promotion of Eco-Friendly Products

SCG promotes sustainable consumption and enhances business competitiveness through environmentally friendly product certifications under various labels, including:

• 132 products certified with the Carbon Footprint of Circular Economy (CE-CFP) label
• 335 products certified with the Carbon Footprint Reduction (CFR) label
• 944 products certified with the Carbon Footprint label
• 318 products certified with the SCG Green Choice label
• 49 products certified with the Green Label
• 184 products certified with Energy Efficiency labeling

🚀 Innovation & Technologies

SCG Chemicals (SCGC) is committed to advancing the circular economy and sustainable materials through clear targets and global collaborations.

• Targeting a reduction of 700,000 tons of CO₂ equivalent (CO₂e) greenhouse gas emissions by 2030
• Aiming to incorporate 500,000 tons of used plastics per year back into the production process by 2030
• Collaborating with international partners to develop advanced technologies, including:
  • Used Plastic-to-Material Technologies:
    Partnering with Teamplas to develop mechanical recycling processes, and with Circular Plas to advance chemical recycling and drive a truly circular economy
  • Used Plastic-to-Product Technologies:
    Collaborating with Avantium (Netherlands) to develop carbon-negative plastics derived from CO₂ conversion

These initiatives reflect SCG’s commitment to transforming waste into valuable resources, promoting circular economy principles, and driving innovation for a sustainable future.

🎯 Targets & Performance

SCG has established clear targets to scale the impact of environmentally friendly products and services:

• By 2030
  • Two-thirds (66.7%) of total revenue will be generated from products, services, and solutions under the SCG Green Choice portfolio
  • One-third (33.3%) of total revenue will come from SCG Green Choice products that deliver direct environmental benefits to customers

• In 2025:
  • 51% of total revenue was generated from SCG Green Choice products, services, and solutions
  • 12% of total revenue came from products that deliver direct environmental benefits to customers

Responding to Industry Demand for Environmentally Friendly Products

Growing awareness of the climate crisis among consumers is driving industries to develop more environmentally friendly products. SCG is therefore enhancing its production processes to reduce greenhouse gas (GHG) emissions and promote the circular economy. This enables industrial customers to manufacture products that are more climate-resilient and sustainable.

	GHG Emissions Reduction	Reduce Resource Use
Cement-Building Materials Business	Tiger Décor, Marble Render, Easy-Mix Formula reduces CO2 in its production process by at least 300 kg.CO2eq per ton compared with Type 1 White Portland Cement	SCG Fly Ash Pipe Concrete is concrete pipe made from 3.46% by weight mix of recycled fly ash, while maintaining its strength and life cycle. This is manufactured by SCG factor in Indonesia.
SCG Chemicals (SCGC)	Polypropylene Compound Plastic Resins, GSV90BL and GSV65BL. Aluminum substitute material used in making ladder inside vehicle. It is light weight, strong and high-impact resistant. Its use reduces GHG emissions by up to 60% compared with conventional production using aluminum-based material.	EcoClear-PP, clarifying agent for polypropylene products, promotes use of recycled plastic as substitute material in production by at least 20% weight-wise, with no effect on the product’s clarity and food-packaging safey certified.
SCG Packaging (SCGP)	Glassine Paper produces through an environmentally friendly process that can reduce energy consumption during production by at least 2% per ton. It can also reduce GHG emissions by at least 8 kg CO2eq per ton.	Fest Fresh Pak increases renewable material use by up to 80% of its weight compared with polypropylene tray, while maintaining its strength and able to keep food fresh according to customer’s requirements.