Environment

Our carbon footprint has also been on a downward trajectory due to decarbonization interventions taken across energy efficiency, renewable energy and natural climate solutions (NCS). We have already reduced the carbon emissions intensity by approximately 5.6% compared to 2014 despite an increase in production capacity by 1.3 million tonnes per year. We have formulated a clear strategy and have already taken significant steps across the different sustainability commitments. Our target is to reduce GHG emissions in Thailand by 20% by 2030 (compared to a base year of 2021) with a "Carbon Neutrality" aspiration by 2050.

* Production is defined as a sum of production from all companies including all intermediate products (i.e VCM, EDC, etc.)
** SCGC has major turnaround of main cracker in 2016 and 2020

Our carbon footprint has also been on a downward trajectory due to decarbonization interventions taken across energy efficiency, renewable energy and natural climate solutions (NCS). We have already reduced the carbon emissions intensity by approximately 5.6% compared to 2014 despite an increase in production capacity by 1.3 million tonnes per year. We have formulated a clear strategy and have already taken significant steps across the different sustainability commitments. Our target is to reduce GHG emissions in Thailand by 20% by 2030 (compared to a base year of 2021) with a "Carbon Neutrality" aspiration by 2050.

• Energy efficiency: we aim to apply technologies to improve the efficiency of and reduce energy consumption in our production processes;
• Use of renewable energies and/or hydrogen to decarbonize our energy consumption;
• Use of ‘coal free’ electricity and transition to renewables (We had already implemented by 5.7-megawatt peak of solar energy and planned to grow solar energy by 60% to 15-megawatt peak by 2030);
• Optimization of energy consumption with synergies from the co-location of plants, especially applicable for LSP and contemplated LSP 2; and
• Environment and nature preservation projects: such as land forests and mangroves planation, check dam construction to restore ecological resilience and extra green area implementation inside and around our facilities.

In addition to technology-driven "break-through", we are at various stages of development across different geographies and sectors in pursuing the following pathways to support decarbonization:

• Usage of “turquoise” hydrogen as an alternative to grey hydrogen to reduce their emissions;
• Use of renewable energies and/or hydrogen to decarbonize our energy consumption;
• Electrification to reduce emission sources; and
• Carbon capture to store or utilize

• Established a data collection system to assess other associated indirect greenhouse gas emissions to develop greenhouse gas management throughout the value chain.
  
• Developed products that minimize greenhouse gas emissions across the value chain, from raw material sourcing to waste management, and applied circular economy principles to ensure resource efficiency, lower energy consumption, waste reduction, and increased recycling.
  
• Choose low-carbon and more renewable raw materials, such as Circular Plas (advanced recycling) for low-carbon naphtha in olefin production or PCR (mechanical recycling) for polymer production. This comprises a plan to develop guidelines for procuring raw materials from suppliers, accounting for emissions and greenhouse gas reductions from raw material and service sourcing, and any transportation associated with the procurement process.
  
• Promote and support logistic suppliers to switch from diesel to natural gas to reduce greenhouse gas emissions and dust. Furthermore, it also helps contribute to the supplier's cost reduction.

* Under verification on CFO process by TGO
** Not reliable data/Not significant to data collection, in accordance with TGO CFO

Development of greenhouse gas storage

01 . Solar Energy System Solutions

SCGC has developed and deployed solar energy systems in a range of forms, including solar farms, floating solar farms, and solar rooftops to enhance the usage proportion of clean energy and minimize greenhouse gas emissions in manufacturing operations and office buildings. In addition, SCGC has operated solar energy solutions within the SCG group, with external partners and customers to continuously ensure the sustainability of solar energy. Key operations of 2021 are as follows:

02. Enhance energy usage efficiency with AI and automation

We have always sought to enhance process and equipment efficiency to reduce energy consumption. It has recently introduced new technologies such as AI, Machine Learning, and Data Analytics automation to streamline operations. The approach resulted in a significant reduction in energy consumption.

03. Carbon Footprint for Organization (CFO)

Climate change is a global issue affecting people throughout the world. SCG Chemicals is dedicated to reducing greenhouse gas emissions both directly and indirectly by increasing the proportion of clean energy consumption and energy usage efficiency, as well as developing low-carbon-footprint products to establish a low-carbon economy from manufacturer to customer to consumer. Furthermore, it intends to build partnerships to keep a global temperature rise under 1.5 degrees Celsius in accordance with the Paris Agreement, as well as to reach the target of carbon neutrality by 2050.