Climate Change Data

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• CO2 footprint reduction
• Water consumption reduction
• Social and biodiversity impacts
• Workforce diversity

Environmental Achievements

• Reduced CO2 emission to 693 kilograms per ton/cement (slightly better than 2018)
• Reduced CO2 emission from the 2007 base year by 57 kilograms per ton/cement (7.5% reduction)
• Zero waste to landfill achieved since 2011 for cement plants, Conwood plant and alternative fuel preparation plants
• Reduced concrete waste by 62.2% from 2009 to 2019 (from 2.89% to 1.09%)
• Increased use of surface water by 29% (323,607 cubic meters)
• 48% of total revenue from Green Heart products in 2019

Social Achievements

• Green School Project: Construction of a new school in Phayao Province (31st school in the project)
• INSEE Green Park: Development of a public park in Saraburi Province
• INSEE Artificial Reef Project: Production of 105 artificial reef blocks from concrete waste
• INSEE Share project: Safety training for technical college students and skilled workers
• INSEE Mason 4.0 Project: Masonry skills development training for over 500 participants
• Support for masonry and concrete skill contests for vocational students (800,000 baht contribution)
• Think Waste Wise Project: Waste management education for three schools
• INSEE Green Village: Plastic waste management and other activities in 35 households
• Community Wellness Initiatives by INSEE Cement Lanka: Free medical consultation and drugs for hundreds of villagers
• ‘One Child - One Tree’ Project by INSEE Cement Lanka: Distribution of fruit plants to school children
• CSR Works by Chip Mong INSEE Cement Corporation, Cambodia: Education, Road Safety, Environment and Hygence, Community Infrastructure Development projects

Governance Achievements

• Establishment of the Group Executive Committee in March 2019
• Received “Excellent” recognition from the Thai Institute of Directors (IOD) for corporate governance for the 4th consecutive year
• Implementation of the No Gift Policy
• Establishment of “INSEE Speak Up” whistleblowing channel
• Implementation of IFRS 16 Accounting Standard

Climate Goals & Targets

Environmental Challenges

• Slowdown in demand for cement in Thailand due to decelerating macroeconomic performance
• Negative impact on cement demand in South Vietnam due to a freeze in the issuance of construction licenses
• Negative impact on cement demand in Sri Lanka due to political instability, currency devaluations, and the Easter attacks
• Increased competition and sluggish growth in the cement market
• Higher supply and competition for exports
• Appreciation of the Thai baht
• Digital disruption
• Changes to income tax law in Bangladesh
• Increased raw material prices and currency depreciation in Bangladesh
• Weak demand and heavy rainfall in Sri Lanka
• Stagnant cement demand in Southern Vietnam due to restricted construction licenses
• Intense market competition in fiber cement business

Mitigation Strategies

• Group-wide business recovery and cost reduction initiatives
• Disciplined allocation of capital to maintenance and expansion projects
• Strategic and operational restructuring measures
• Refocusing on real demand in low-rise housing
• Capturing demand in the CPM bulk cement market
• Enhancing brand awareness and reinforcing the supply chain for export markets
• Procurement of coal from sources other than Indonesia
• Reduction of logistic costs of importing coal and inventory management
• Exploration of long-term contracts with new coal mines
• Arranging a tender for oil sellers to offer a discounted price
• Switching to biodiesel (B20)
• Development and improvement of refuse derived fuel (RDF)
• Investment in solar power generation plants
• Implementation of OH&S management system
• Use of digital technology for OH&S database and contractor screening
• Exchange rate risk hedging through forward booking and payment/receipt management
• Maintaining an optimal balance between floating and fixed interest rates
• Adopting appropriate credit control policies and procedures
• Maintaining adequate cash and credit lines
• Reduction of B2B sales in Bangladesh
• Continuous reduction of raw materials prices with strategic sourcing initiatives
• Exploring legal options to minimize AIT impact in Bangladesh
• Expansion of regional franchise business and use of mobile RMX batch plants
• Development of new technologies to enhance customer experience
• Expanded use of RMX Sand to extend the life of natural sand reserves
• Introduction of “no-man entry” robotic cleaning solution
• Participation in projects requiring high safety and regulatory compliance
• Widening the network of suppliers and customers in trading business
• Increased focus on green products in trading business
• Implementation of lean process management
• Introduction of Robotic Process Automation (RPA)

Supply Chain Management

Responsible Procurement

• SCCC Supplier Code of Conduct
• Sustainable Procurement Policy & Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, ISO 14001:2015, CSR-DIW, CSR-DPIM, Green Industry Level 5

Certifications: ISO 14001:2015, ISO 9001, ISO 50001, OHSAS 18001:2007, Singapore Green Label, Green Listing Product (Indonesia), Green Label (Thailand), ISO/IEC 270001:2013

Sustainable Products & Innovation

• Hydraulic Cement
• INSEE Petch Plus
• INSEE Petch Quick Cast

Awards & Recognition

• Thailand Sustainability Investment Award 2019
• IOD’s “Excellent” recognition for corporate governance
• CSR-DIW Continuous Award 2019
• Eurocham CSR Contest Award 2019
• Green Industry Level 5
• ASEAN Energy Award
• Thailand Energy Award
• Best Practice Waste Processor Award (Gold Award Plus)
• Green Label
• Many other awards

Environmental Metrics

ESG Focus Areas

• Climate and Energy
• Circular Economy
• Biodiversity and Water
• Occupational Health and Safety
• Community Engagement

Environmental Achievements

• Average dust emission less than 10mg/Nm3
• Average CO2 emission 416kg/ton of cement (compared to industry average of 750kg/ton)
• Reduced energy consumption by 20% using Vertical Roller Mills (VRM)
• More than 90% of products certified Green Mark by SGBC for 5 consecutive years
• Green Label cement reduces carbon footprint by at least 24%
• 1,200,000+ tons of waste handled by Ecocycle, reducing greenhouse gas emissions

Social Achievements

• 0% injury rate
• 18,357 hours of safety training
• 20% female leaders in 2020
• VND 6.3 billion invested in 29 projects benefiting 51,000 people
• 5 consecutive years in VBCSD's Top 100 Sustainable Businesses
• Top 100 Best Places to Work in Vietnam
• Implemented Contractor Conferences reaching 334,496 participants

Governance Achievements

• Annual sustainability reporting
• Sustainability integrated into organizational structure with KPIs reported directly to CEO
• Compliance with GRI Standards: Core option

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact
• Climate change impacts (flooding, wildfires, salinization)
• Waste management challenges in Vietnam

Mitigation Strategies

• Appropriate measures taken to address COVID-19 impact, prioritizing employee health
• INSEE Sustainability Ambition 2030 addressing climate change, circular economy, biodiversity, and water
• Ecocycle waste management initiatives, including co-processing technology

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Wildfires
• Salinization

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001 (implied), ISO 45001 (planned upgrade from OHSAS 18001)

Sustainable Products & Innovation

• Green Label cement
• CONWOOD
• INSEE Wall Speed
• INSEE TileFix Plus
• INSEE TileGrout NANO
• INSEE TileGrout Ultra+

Awards & Recognition

• Top 100 Vietnam Best Places to Work 2020
• Top 100 Vietnam Sustainable Companies (5 consecutive years)
• Vietnam Best Construction & Building Materials Supplier 2020
• Saigon Times CSR 2020 Award

Environmental Metrics

ESG Focus Areas

• Climate and Energy
• Circular Economy
• Biodiversity and Water
• Occupational Health and Safety
• Community & Stakeholder Engagement
• Human Rights

Environmental Achievements

• Reduced CO2 emissions (Specific targets mentioned but not quantified in the report)
• Reduced specific electricity consumption (Specific targets mentioned but not quantified in the report)
• Increased use of alternative fuels (Specific targets mentioned but not quantified in the report)
• Increased use of waste-derived fuels and raw materials in clinker production (from 0.5 million to >1.0 million tons)
• Increased by-product absorption (fly ash, slag) by >65 percent to >1.4 million tons per annum

Social Achievements

• Organized training programs for construction workers in partnership with the Department of Skill Development, Ministry of Labor
• Partnered with INSEE Ecocycle, Bangkok Broadcasting & Television Company Limited (Ch7HD) and Bank of Ayudhya to build accommodations for teachers at INSEE Green School
• Provided COVID-19 relief support to communities, hospitals, and government sectors
• Established Factory Accommodation Isolation (FAI) for plant workers in Saraburi province
• Conducted employee engagement surveys

Governance Achievements

• Established a Sustainability Steering Committee and assigned sustainability country coordinators and working groups
• Adherence to UN Guiding Principles on Human Rights
• Implemented fair and transparent recruitment, compensation, performance assessment, and termination processes

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and stakeholder engagement
• Water shortage risks
• Biodiversity impact from quarry and mining activities

Mitigation Strategies

• Adapted to a “new normal” beyond public health directives to protect employee health and wellbeing
• Provided support to key stakeholders during the COVID-19 crisis
• Implemented water conservation measures, including increasing equipment cooling efficiency and regular water balances
• Prioritized impact avoidance, mitigation, rehabilitation, and biodiversity offsetting for quarry and mining activities
• Engaged with IUCN and other stakeholders to develop biodiversity management plans

Supply Chain Management

Responsible Procurement

• Suppliers Code of Conduct
• Sustainable Procurement Policy and Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Heat waves
• Drought
• Higher precipitation
• Negative consequences across the food supply chain

Reporting Standards

Frameworks Used: Global Cement and Concrete Association (GCCA) scope 1 and scope 2 reporting protocols, International Energy Agency (IEA) technology roadmap

Certifications: ISO 14001:2015

Sustainable Products & Innovation

• CONWOOD products using waste packaging

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by more than 10% compared to 2021 (to 358 kg CO2 per ton of product)
• Used 718kt of by-products (mainly slag and fly ash), a 13% increase compared to 2021
• Processed more than 150kt tons of non-recyclable waste materials
• Reduced specific water consumption by more than 3%
• Increased surface water usage by 4 percentage points
• Achieved >40% in the TSR (Thermal Substitution Rate) Dream Run
• Achieved 100% Green Portfolio, meeting the highest standard of environmental performance.

Social Achievements

• Achieved almost 6 volunteering hours per FTE
• Invested more than VND 7 billion in 26 projects for 15,473 beneficiaries
• Invested 442,877 USD (~ VND 10.4 billion) for people development programs
• Achieved more than 5,400 voluntary hours among INSEE’s full-time employees through community activities
• Employee engagement in 2022 accountable for 72%

Governance Achievements

• Maintained the leading position in the market with 25.6% market share
• Transparent reporting processes

Climate Goals & Targets

Environmental Challenges

• Shortage of input materials
• Supply chain disruptions
• Weak output markets
• High exchange rates
• Decline in consumer demand
• Increased cost of input materials (clinker, slag, coal, transportation)
• Poor waste management in Vietnam

Mitigation Strategies

• Focused effort to further reduce the clinker factor of all products
• Increased thermal substitution rate (use of waste-derived materials)
• Product optimization using alternative materials (fly ash, steel slag, pozzolana)
• Development of INSEE Ecocycle waste management services
• Strengthening distribution network
• Product innovation (upgraded INSEE Power-S, INSEE Lavilla PCB40)
• Customer-centric approach (surveys, visits, seminars)

Supply Chain Management

Responsible Procurement

• Use of by-products and alternative materials

Climate-Related Risks & Opportunities

Physical Risks

• Drought and salinity

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Expansion into circular economy

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Sustainable Development Goals (SDGs)

Certifications: Green Label by Singapore Green Building Council (SGBC), Environmental Product Declaration (EPD)

Sustainable Products & Innovation

• INSEE Extra Durable cement
• INSEE Stable Soil cement
• INSEE Easy Flow cement
• Upgraded INSEE Power-S cement
• INSEE Lavilla PCB40 cement
• CONWOOD fiber-cement product

Awards & Recognition

• Saigon Times CSR Awards (Top 40 Enterprises for the Community)
• Most Reputable Construction Company and Building Material Supplier in 2022 Award
• Top 50 Corporate Sustainability Awards
• Top 100 Best Places to Work in Vietnam
• Top 100 Sustainable Development Companies Award
• Top 10 Reputable Building Material Companies Award
• The Energy Efficiency in Industry Award
• Top 50 Best Employer of Choice by Vietnam Student 2022

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity promotion
• Economy principles
• Workplace safety
• Active community engagement

Environmental Achievements

• Achieved a CO2 emission of 425 kg/ton of cementious material, significantly lower than the Vietnam cement industry average (667 kg/ton) and the global average (590 kg/ton).
• Enhanced co-processing technology capacity for alternative fuel use, achieving a Thermal Substitution Rate (TSR) of 37.9%, close to 38% in over 15 years of INSEE Ecocycle operations in Vietnam.
• Achieved 100% Green Portfolio, meeting the highest standard of environmental performance.
• Total amount of hazardous and non-hazardous waste treated in 2023: 181,932 tons.

Social Achievements

• Allocated over 4 billion VND for 25 CSR activities.
• 5,021 volunteer hours from full-time employees.
• Employee engagement survey 2023 shows 75% employee engagement.
• Conducted 29,152 training hours for employees.
• Built 5 low-income houses in Kien Giang district, Kien Giang province.
• Renovated and built 25 houses for disadvantaged households, concreted over 120 km of roads, and built 14 bridges.

Governance Achievements

• Established a Sustainability Steering Committee (SSC) consisting of a board member and organizational leaders.
• Annually reviews and discloses sustainability performance, integrating key non-financial metrics, performance indicators, and climate risk assessment into the Annual Report, in line with Stock Exchange of Thailand guidelines, TCFD standard, and GCCA KPIs.
• Implemented the Organizational Effectiveness Project to enhance company structure, succession planning, and leadership mindset.

Climate Goals & Targets

Environmental Challenges

• Significant challenges within the construction industry in Vietnam, including economic volatility and a fiercely competitive environment.

Mitigation Strategies

• Quick adaptations, steadfast focus on innovation and efficiency, and a customer-centric approach.

Supply Chain Management

Responsible Procurement

• Vendor Safety Forum

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Sustainable Development Goals (SDGs)

Certifications: ISO 14001:2015

Sustainable Products & Innovation

• Green Label certified cement products (Singapore Green Building Council and EPD International AB)

Awards & Recognition

• Top 100 Sustainable Development Businesses (Top 100 CSI) award (8 consecutive years)
• Top 100 Best Place to Work
• Top 10 Building Material Reputation Awards (8 consecutive years)
• Saigon Times CSR Award (5 consecutive years)
• Top 50 Corporate Sustainability Award (Top 50 CSA) (2nd time)
• Most reputable construction company and Building materials supplier award
• Human Resources Excellent Award 2023 (EVE program)
• Top 50 Best Employer of Choice for Vietnam Students (since 2020)