Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Resource Recovery
• Community Engagement
• Corporate Governance
• Health and Safety
• Human Rights
• Supply Chain Sustainability
• Water Stewardship
• Forestry and Biodiversity

Environmental Achievements

• GHG Emission Reduction 12.8% compared with Business as usual (BAU) at the base year of 2007
• Reduced waste disposal by incineration without energy recovery in Thailand compared with the base year of 2014 by 99.99%
• Water Withdrawal Reduction 26.3% compared with Business As Usual [BAU] at the base year of 2014
• Increased the biomass consumption ratio to 6.7% per year (327,720 tons/year) and reduced greenhouse gas emissions to 277,440 tons CO2 equivalent per year
• 55,315 trees planted

Social Achievements

• Collaborated with 183 communities to recycle resources and built garbage-free communities through the Ban Pong Model Project
• Designed social innovations in collaboration with the SCG Foundation to support society by handing over 100,000 SCGP paper field hospital beds
• Employee passed Ethics e-Testing a test on Ethics and Human Rights 100%
• Zero Waste Communities Development “Like (No) Garbage” in 30 communities
• 1,140 scholarships in 62 schools

Governance Achievements

• Designated company directors from external experts for ensuring transparency, fairness and accountability
• Received an excellent rating (5 stars) from the assessment of the Corporate Governance Survey of Listed Companies for the year 2021 (CGR Checklist)

Climate Goals & Targets

Environmental Challenges

• Business interruption from COVID-19 pandemic
• Flood and Drought
• Safety
• Human rights
• Rules and regulatory compliance
• M&P integration risk
• RCP supply tightness
• Global freight disruption
• Higher energy prices
• Foreign exchange risk
• Climate Change issue from Greenhouse Gas emissions
• Environmental pollution and Risk of Transitioning to the Circular Economy
• Cyber Security

Mitigation Strategies

• Implemented a risk management system in accordance with international standards and integrated into the organization’s business operations
• Target Net-Zero mitigation by 2050
• Reduce dependence on fossil fuels and increase the proportion of renewable energy usages
• Plant and restore terrestrial forest areas
• Study the Carbon Dioxide Capture and Sequestration Technology
• Set the target to increase the proportion of recyclable, recyclable or compostable polymer packaging sales revenue to approximately 100 percent of the total polymer packaging sales revenue by 2025
• Develop innovative products and solutions that reduce resource consumption or promote recycling following the Circular Economy principles
• Implemented and complied with the SCGP e – Policy
• Installed additional cyber security equipment
• Conducted the Disaster Recovery system Plan (DRP) - Drills
• Prepared a Cyber Incident Response Plan

Supply Chain Management

Supplier Audits: 100% of suppliers with procurement spending over 1 million Baht passed ESG risk assessment

Responsible Procurement

• SCGP’s Supplier Code of Conduct
• Green Procurement

Climate-Related Risks & Opportunities

Physical Risks

• Flood and Drought

Transition Risks

• Changes of consumer behaviors and the market competitiveness of the Low Carbon - Products under the Carbon Border Adjustment Mechanism (CBAM)
• Investors’ confidence and stakeholders’ expectations for companies to disclose and address Climate Change-related issues

Opportunities

• Increase energy efficiency by utilizing the best available technology
• Promote Natural Climate Solutions
• Produce low-carbon products
• Increase the share of renewable energy and clean energy sources
• Apply economic tools to enhance greenhouse gas emissions reduction
• Study “the Carbon Capture, Utilization, and Storage: CCUS technologies”

Reporting Standards

Frameworks Used: GRI Standards: Core option, UNGC, TCFD, SASB

Certifications: ISO 9001, ISO 14001, ISO 45001, FSCTM

Third-party Assurance: Deloitte Touche Tohmatsu Jaiyos Audit Co., Ltd.

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land
• Goal 17: Partnerships for the Goals

SCGP's business operations are committed to achieving 14 Sustainable Development Goals-SDGs

Sustainable Products & Innovation

• ProBlock (fly ash brick)
• Water-soluble bag
• Green Carton
• FybroZeal™
• Green Offset Paper
• Post-Consumer Recycled Resin (PCR)
• FEST® Foodservice Packaging
• EzySteam™
• OptiBreath®
• Dezpax
• LocoPack
• OdorLock™
• Carbon Black

Awards & Recognition

• Thailand Sustainability Investment (THSI)
• Rising Star Sustainability Excellence from the SET Awards 2021
• Gold Medal in 2021 by the EcoVadis Sustainability Ratings
• Silver Class rating in the category of Containers and Packaging by S&P Global
• ThaiStar Packaging Awards 2021
• G-mark Award 2021
• Best Material Innovation Awards 2021 from the World Corrugated Awards 2021
• 2 Design Excellence Awards (DEmark) 2021
• ASEAN Energy Awards 2021
• Outstanding Workplace Model Award for Safety Model Occupational Health and Working Environment 2021
• Outstanding Establishment in Labor Relations and Welfare Year 2021
• Green Industry Certificate (Green Industry) Level 5
• Ho Chi Minh City Golden Brand Award

Environmental Metrics

ESG Focus Areas

• Climate change
• Circular Economy
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 12.7% compared with the base year of 2020
• Reduced water withdrawal by 28.0% compared with Business As Usual (BAU) in the base year of 2014
• Waste from the production process in Thailand to landfills: 0 tons
• Reduced energy consumption by 6.8% compared with Business As Usual (BAU) in the base year of 2007
• Increased proportion of recycled water to 16.3%
• Reduction of waste disposal by incineration without energy recovery in Thailand: 99.95%

Social Achievements

• Zero cases of work-related fatality of employees and contractors
• Zero cases of human rights violation
• 100% of employees passed the Ethics e-Testing
• Proportion of female employees in all management positions: 24.4%
• Community satisfaction: 91%
• 31 communities developed as zero waste communities

Governance Achievements

• Certified by the Thai Private Sector Collective Action against Corruption (CAC)
• Received 2 SET Awards (Business Excellence and Sustainability Excellence)
• Listed on the 2022 Thailand Sustainability Investment (THSI) list and SET THSI Index
• Rated as the ASEAN Asset Class

Climate Goals & Targets

Environmental Challenges

• High and volatile energy costs due to the conflict in Europe
• Global demand softness due to inflation and economic slowdown
• Rising input costs (raw materials and labor)
• M&P integration risks
• Safety and health risks
• Human rights risks
• FX volatility risk
• Expiration of critical licenses, permits, and IP
• Flood and drought
• Cyber security risks
• Climate change issues from greenhouse gas emissions
• Interest rate risks
• Talent development for expansion
• Environmental pollution risks and transition to a Circular Economy
• Conflicts of interest with the major shareholder

Mitigation Strategies

• Established The Coal Collaborative Committee, increased usage of alternative energy, managed energy costs by adjusting the proportion with increased in-house production of electricity and reduced purchase of electricity from external sources, installed solar rooftops
• Planned to enter new markets, launched new products, increased internal material transfer between business units, analyzed the demand of target industries, planned and managed inventories
• Closely monitored RCP and Resin market situations, diversified sources of raw material, studied to invest on an automation system, operated 81 recycling centers, invested in recycling business through M&P
• Implemented the Pre & Post Merger Integration Framework (PPMI), appointed teams of advisory, required that integration plans be presented to executives
• Implemented occupational health and safety management in line with the “SCG Safety Framework”, promoted safe operating behaviors, managed safety and health risks, enforced Product and Service Safety Control, established Contractor Safety Management Committee, developed the SAFESave safety platform
• Announced policies on Human Rights, Diversity and Inclusion, implemented a comprehensive Human Rights Due Diligence process, deployed SCGP’s employee recruitment policy, organized Ethic e-Testing, joined the Sedex Members Ethical Trade Audit (SEDEX)
• Entered into forward exchange contracts, managed exchange rates by using the same currencies for both revenue and expense
• Established roles and responsibility of The Compliance Management Representative, developed and implemented the Compliance and License Management System
• Adhered to the disaster reduction measures of UNISDR, used the Early Warning System (EWS), established the role and responsibility of Business Unit Management Team and Local Management team, conducted business continuity plan exercise, increased water consumption efficiency, rehabilitated the ecosystem
• Monitored and assessed risks, improved efficiency, changed work processes and equipment, increased biomass fuel consumption, expanded the Solar Roof project, adopted Natural Climate Solutions (NCS)
• Complied with the SCGP e-Policy, installed additional cyber security protection, established a Security Operation Center (SOC), conducted drills for the Disaster Recovery Plan (DRP), prepared Cyber Incident Response Plan
• Identified Critical Competency, identified high-potential talents, created career paths, facilitated annual Talent management evaluation, developed and sustained employee engagement
• Managed the portion between floating and fixed interest rate debts, offered the debentures to investors and got fixed-rate term loans issued by commercial banks, made an agreement of interest rate swap with overseas commercial banks
• Developed innovative products and solutions, collaborated with customers to return used bottles for recycling, invested in recycling business through M&P

Supply Chain Management

Supplier Audits: 100% of suppliers passed the Environmental, Social and Governance (ESG) Risk Assessment

Responsible Procurement

• SCG Packaging’s Supplier Code of Conduct
• Environmental, Social and Governance (ESG) Risk Assessment

Climate-Related Risks & Opportunities

Physical Risks

• Flood and drought

Transition Risks

• Climate change issues from greenhouse gas emissions
• Environmental pollution risks and transition to a Circular Economy

Opportunities

• Increased demand for eco-friendly products

Reporting Standards

Frameworks Used: GRI

Certifications: ISCC PLUS

Third-party Assurance: SGS Company Limited

UN Sustainable Development Goals

• Goal 1
• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 13
• Goal 15

See Sustainability Management Policy and Goals section

Sustainable Products & Innovation

• SCG Green Choice products
• Mono-material flexible packaging
• Rigid packaging with recycled components
• Recyclable and eco-friendly paper lids

Awards & Recognition

• Thai Private Sector Collective Action against Corruption (CAC) certification
• 2 SET Awards (Business Excellence and Sustainability Excellence)
• Thailand Sustainability Investment (THSI) list and SET THSI Index
• ASEAN Asset Class rating
• Dow Jones Sustainability Index (DJSI) Top 1% and Industry Mover
• SET Awards 2022 (Business Excellence and Sustainability Excellence)
• Design Excellence Award 2022 (DEmark)
• Marketing Award of Thailand 2021
• AsiaStar Awards 2021
• ThaiStar Packaging Awards 2022
• BETAGRO Supplier Excellence Awards 2022
• ASEAN-OSHNET Awards 2022
• Outstanding Workplace Award for Safety and Occupational
• Business Partner Award 2022
• Outstanding Workplace Award for Safety, Occupational Health and Environment
• Outstanding Organization Award - Labor Relations and Welfare
• Asia Pacific Supplier Award 2022
• Prime Minister’s Industry Award
• Safety Officer Performance Excellence Award
• Outstanding Workplace Award for Disease Prevention and Control
• Top 100 Sustainable Companies and Gender Equality in Workplace Award
• Top 100 Best Places to Work, and 50 Vietnamese Enterprise with Attractive Employer Brands Award
• Top 10 Vietnamese Strong Brands Awards 2022
• Best Brand of the Year Award
• Rising Star Award from Amarin Baby & Kids Awards 2022

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Climate Action
• Customer & Consumer Centricity
• Risk & Disruption Management

Environmental Achievements

• 19.5% reduction in greenhouse gas emissions compared with the base year of 2020
• Increased the proportion of renewable energy used to 28.6%
• Planted over 2 million trees
• 99.7% of total volume of packaging is recyclable, reusable, or compostable

Social Achievements

• Total employee engagement rate above 4.20 out of 5.00
• 23.8% of management positions occupied by women
• Community satisfaction index of 95%
• Scaled up SCGP Zero Waste Community Project to 143 communities

Governance Achievements

• Certified with ISO 27001 for information security management system
• Achieved AAA level in SET ESG Ratings
• Zero violations of the anti-corruption policy

Climate Goals & Targets

Environmental Challenges

• Scarcity of resources due to changes in environmental and climate conditions
• Strict government regulations on waste management
• Changes in policy and regulatory measures related to greenhouse gas emissions control
• Technological risks, fuel price volatility, and limitations of energy sources
• Natural disasters affecting business operations
• Changing customer demands towards a low-carbon economy

Mitigation Strategies

• Efficiently managing existing limited resources
• Adopting circular economy principles
• Reducing greenhouse gas emissions through improving energy efficiency, increasing renewable energy use, and developing low-carbon products
• Absorbing and sequestering greenhouse gases through exploring CCUS technologies and supporting forest conservation
• Utilizing economic tools such as Internal Carbon Pricing (ICP)
• Managing risks across the organization according to COSO and ISO31000
• Analyzing the severity and prioritizing risk items using tools such as WRI AQUEDUCT and satellite imaging
• Continuously managing business risks according to the Business Continuity Management (BCM) framework

Supply Chain Management

Supplier Audits: 100% of suppliers in procurement value passed the annual ESG risk assessment

Responsible Procurement

• SCGP Supplier Code of Conduct
• ESG risk assessment
• SCG Contractor Certification (SCS)

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts
• Storms
• Pandemics

Transition Risks

• Regulatory changes
• Market shifts
• Technological risks
• Fuel price volatility

Opportunities

• Investing in research and development of CCUS technologies and renewable energy
• Designing and developing products and services based on circular economy principles

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB

Certifications: ISO 9001, ISO 14001, OHSAS/TIS 18001/ISO 45001, FSC™, ISO 27001

Third-party Assurance: SGS (Thailand) Limited

UN Sustainable Development Goals

• Not disclosed

In 2023, SCGP addressed 15 SDGs.

Sustainable Products & Innovation

• FiBbot (Fiber-Based Bottle) Packaging
• Packaging from PCR and PIR plastic pellets
• Flexible Packaging Mono-Material (R1, R1+)
• SCGP PROBLOCK-ECO Brick
• Miracle Block
• Soil Improvement Admixture
• RediPak

Awards & Recognition

• Dow Jones Sustainability Index (DJSI)
• CDP A- rating
• SET ESG Rating AAA
• SET Awards
• Outstanding in Corporate Governance Award
• Climate Action Leading Organization (CALO) award
• ISO 27001 certification