SCGC Marches Toward ESG Goals: Cultivating Sustainable Growth, Encouraging Collaboration, Speeding Up Innovation, and Propelling Solutions for Society

SCGC has consistently adopted the principles of a circular economy in its production processes and in developing product and service innovations. This strategy takes into account shareholder interests, ensuring fairness and transparency in alignment with ESG (Environmental, Social and Governance) and SDGs (Sustainable Development Goals) principles. This is part of an effort to alleviate the environmental crisis, reduce inequality, and create a better society and world, aligned with the vision of being a "Leading Chemicals Business for Sustainability in ASEAN".

SCGC is committed to developing environmentally-friendly polymer innovations, or Green Polymer, that address the challenge of reducing carbon dioxide emissions, thus contributing to mitigating the impact of global warming. Furthermore, SCGC is progressing in developing production processes that enhance the energy efficiency, employ renewable energy, reduce waste generation, minimize water withdrawal, and develop technologies and innovations that respond to low-carbon demands. This effort includes improving the quality of life in local communities, promoting jobs, and fostering a low-carbon society. SCGC places importance on transparent and accountable operations following SCGC's Code of Conduct.

SCGC has established guidelines and goals for three dimensions of ESG to drive sustainable operations:

Environmental

Advancing the development of Green Innovations, with a target of achieving carbon neutrality by 2050.

• • Aim to reach an annual sales volume of green polymer of one million tonnes by 2030. In 2022, SCGC achieved sales of more than 137,000 tonnes, helping reduce greenhouse gas emissions equivalent to 59,000 tonnes of carbon dioxide. Additionally, over 3,000 tonnes of plastic have been recycled to date.

SCGC GREEN POLYMER offers solutions in 4 areas:

1. 1. 1. REDUCE: SMX™ technology enables the production of stronger plastic resins. This technology helps reduce the thickness while maintaining their strength, minimizes the usage of plastic resins, and allows for the development of lighter packaging.
      2. RECYCLABLE: The design concept emphasizes recyclability, introducing mono-material solutions for packaging that can be efficiently recycled.
      3. RECYCLE: The solution comprises High Quality Post-Consumer Recycled Resin (PCR) from mechanical recycling processes and Certified Circular Resin from advanced recycling processes.
      4. RENEWABLE: The focus lies on bio compostable plastic resin and the use of renewable resources. The solution is manifested in developing bio-compostable compound resin suitable for converting into bio compostable bags. Furthermore, SCGC has collaborated with Braskem to explore the feasibility of producing bio-based polyethylene from agricultural products, thus replacing fossil usage with renewable resources.

• • Aim to achieve carbon neutrality by 2050, with a goal to reduce greenhouse gas emissions by 20% from the base year 2021 by 2030, guided by a "Low Carbon, Low Waste" approach. SCGC has laid out three main operational guidelines:
    1. Decarbonization in production processes: This involves improving energy efficiency, increasing the proportion of renewable energy use, utilizing carbon credits, and implementing carbon sequestration.
    2. Low Carbon Supply Chain: Collaboration with partners across the value chain is key to promoting the reduction of the carbon footprint of products throughout their lifecycle. This includes reducing dependence on fossil-based raw materials, increasing the proportion of recycled raw materials, minimizing water withdrawal, reducing waste generation, and lowering air pollution.
    3. Product Portfolio Adjustment: Focusing on developing low-carbon products across their life cycle, SCGC offers 16 categories of energy-saving products certified under the SCG Green Choice label and encourages carbon footprint certification. As of 2022, SCGC and its subsidiaries have all received Carbon Footprint of Organization (CFO) certification.

Society

Elevating community living standards, fostering participation, mitigating inequality, and promoting equitable practices.

• • Aim to reduce work-related illnesses and zero work-related incident.
  • Promote fair practices, equality, non-discrimination, and the prevention of human rights violations.
  • Strengthen and support community involvement; community engagement is evaluated through various activities and projects.
  • Empower communities to become self-reliant through the development of community enterprises.
  • Committed to creating a low-carbon and environmentally friendly society.

----------------------------------------------------------------------------------------------------------------------------

Stay updated with SCGC sustainability projects at https://rb.gy/7e4ak 

---------------------------------------------------------------------------------------------------------------------------

Governance

Conducting business operations responsibly, transparently, and fairly under the SCGC's Code of Conduct.

• • Promote good governance through Integrated GRC (Governance, Risk Management and Compliance).
  • Aim to conduct business responsibly, transparently, and fairly under the SCGC's Code of Conduct and establish the SCGC Supplier Code of Conduct for suppliers to adhere to as a common standard.
  • Set a goal of zero non-compliance with legal regulations and business disruptions.
  • In terms of anti-corruption policy, the goal was set to ensure proper, appropriate, and effective implementation. A handbook has been prepared as a guideline for practice, and all employees at all levels are required to understand and pass the Ethics e-Testing 100%. Also, a process for reporting complaints and whistleblowing has been established.
  • Set policies and guidelines for managing the security of information technology and cyber systems in accordance with international standards (ISO 27001 and IEC 62443) and operate under the framework of the National Institute of Standards and Technology (NIST). A supervisory committee continuously monitors threats and conducts drills to prepare for any potential emergencies. In 2022, SCGC had zero cyber threats and personal data leaks from its information systems.

----------------------------------------------------------------------------------------------------------------------------

Download 2022 SCGC Sustainability Report at https://rb.gy/616hh 

---------------------------------------------------------------------------------------------------------------------------

SCGC has clear goals and directions in moving towards carbon neutrality by 2050 through the application of technology and innovation in production processes and operations, combined with collaboration with public and private sectors in developing solutions and expanding project implementation in line with ESG and SDGs (Sustainable Development Goals), alongside caring for stakeholders, improving community quality of life and maintaining transparent and fair operations, aiming to become a "Leading Chemicals Business for Sustainability in ASEAN" in the long run.