Environmental Management

Sustainable Environmental Management System
SCGC strives to be a business leader in the region, creating innovation in tandem with caring for the sustainable environment by establishing business strategy and plans, developing products and services and solutions that are taken into account of environmental issues, as well as educating via stakeholder engagement throughout the business value chain, comprehensively developing and expanding the environmental management toward global levels.


Sustainable Environmental Management Process
Environmental Management System
Aiming toward sustainable development, SCGC has established an integrated environmental management system with managing, monitoring, reviewing, and improving as well as disclosing guidelines for environmental management performance and risk management covering both social and environmental aspects. SCGC has also collaborated with suppliers and service providers in order to uplift the work efficiency, creating long-term value by comprehending the phase of design, procurement, services and solutions, product distribution and logistics, as well as waste and products used management in accordance with the Circular Economy principles.


Sustainable Environmental management guidelines
SCGS strictly adheres to legal compliance, including regulations, national and global standards, in order to manage environmental conservation, preventing the impact from greenhouse gases, wastes, water pollution, air pollution and odors by promoting optimization of water, energy, and resources, as well as biodiversity. In order to ensure that SCGC has systematic Code of Practice, quality, environmental and safety management, all the subsidiaries under SCGC have acquired international standards such as (ISO 14001 – Environmental Management System, Integrated Management System (IMS), OHSAS/TIS 18001 – Occupational, Health and Safety Management System, ISO50001 – Energy Management System, ISO 14064 – Greenhouse Gases and ISO 9001 – Quality Management System.

Since 2001, furthermore, SCGC has also developed and implemented (Environmental Performance Assessment Program: EPAP) to continuously improve our environmental circumstances in line with the changing world and building stakeholder confidence in our environmental performance.


Sustainable Water Management
SCGC is aware that water is an important resource for all sectors, which are increasingly demanding water consumption aligned with social and business growth, including climate change risk affecting the quantity and quality of water. Therefore, SCGC has conducted an internal water management process through Corporate Environment committee and collaborated with external agencies. For example, SCGC has cooperated with the Federation of Thai Industry (FIT) on drought preparedness measures comprising following up and monitoring the water situation, as well as encouraging water management projects supplying sufficient water to all sectors.

Sustainable water management strategy
SCGC has integrated AQUEDUCT by WRI, water risk assessment, together with stakeholders and industrial sectors in order to define water management and plan as well as to streamline water consumption efficiency in production process. Key strategies include:

  • Reducing risk of water with sustainable water management
  • Reducing water used by enhancing water consumption efficiency in production process and products
  • Treating water discharge below standards, monitoring the quantity and quality, reporting incidents and investigations, as well as setting target to maximize water discharge reduction
  • Reusing treated wastewater
  • Rehabilitating ecosystem related to water sources and providing water to social and agricultural sectors
  • Developing employee capability working associated with water.

Additionally, SCGC has collaborated with government agencies, the industrial sector and stakeholders to manage water in the Eastern region and Eastern Economic Corridor (EEC) continuing from the draught condition in 2020 by preparing long-term plan for future measures such as building additional water sources or water diversion etc. as well as developing technology to enhance water situation tracking efficiency and building healthy relationship with Wang Tanod reservoir community through municipal wastewater treatment system project at the municipality of Nongkla Subdistrict, Tha-Mai District, Chantaburi By constructing wetland system to treat 400 cm/day of wastewater from the community prior to discharge to Wang Tanod canal, the project contributes to water security for the East.


Sustainable waste management
SCGC remains focus on increasing waste management efficiency and operating waste management projects in order to optimize resource efficiency by using the 3Rs principle namely Reduce, Reuse, Recycle, as well as to research incorporating waste symbiosis which is the process by which wastes of an industrial process become the raw materials for another. Additionally, we have also integrated Circular Economy principle to thoroughly manage waste.


Waste Management Process
Throughout the past years, SCGC has been continuously achieving Zero Waste to Landfill. We have also focused upon researching, developing, improving and collaborating in Waste utilization. Projects implemented included:

  • Reutilizing Liquid polymer and Oily water generated form cleaning heat exchangers into production process.
  • Reducing the use of catalyst by reusing the used one together with new one in the process yielding high efficiency and maintaining the product’s value chain.
  • Transforming broken pallets into post-consumer recycled resin (PCR) for the production of new ones.

In 2021, SCGC managed to reduce 1,122 tons of waste generated from production processes comprising 423 tons of hazardous waste and 699 tons of non-hazardous waste.

Sustainable Air Quality management
SCGC is committed to managing environmental air quality from production processes in order to ensure the quality of air emissions comply with any standards at any time by formulating a proactive air quality management plan for factory premises and surrounding communities, incorporating innovation and advanced technology for factory design, as well as continuously researching, developing, and streamlining the company’s air quality control systems.


Air Quality management
SCGC places importance on managing air quality in the factory and surrounding communities by strictly controlling air emissions in accordance with the measures from the Environmental Impact Assessment. Besides the operations within our operating sites, we have focused on the surrounding communities and therefore cooperated with the petrochemical industry sector, the Federation of Thai Industries (FTI) to initiate a pilot project, managing emissions of 1,3-Butadiene and Benzene vapor by implementing Code of Practice (CoP) in order to reduce the emissions of 1,3-Butadiene and Benzene vapor in Maptaphut, driven by business operators from 5 industrial estates and 1 industrial port since 2018. For past years, the pilot project has been consistently conducted in order to closely monitor, follow up and analyze air quality monitoring results in the areas in order to establish measures for continuous control and improvement. As a result, the ambient air quality monitored by the Pollution Control Department (PCD) has shown a continuous improved trend in the better way.

SCGC focuses on air pollution mitigation, shifting toward an operational closed system and installing ground flares for the first time in Maptaphut. Furthermore, SCGC has also focalized to preventing VOC leakage from the production process by consistent inspection and maintenance of related equipment and facilities. With awareness of the impact on environmental air quality, SCGC has focused on air quality management projects covering all operational activities, including normal operation and turnaround ex. Green Turnaround to ensure the best air quality at all time.

Circular Economy

Pass on Values, Develop Products and Build Networks for Sustainability
SCG Chemicals applies circular economy principles to business throughout the product lifecycle. Its method encompasses an end-to-end process that includes the design of plastic resin with low resource usage while still being effective, making the most of the value of plastics; service life extension, waste sorting at source upon expiry of use, and recycling for value addition. Additionally, this involved developing plastic recycling technology that utilized a chemical recycling method to transform post-consumer plastic into recycled feedstock to produce virgin plastic resin. SCG Chemicals is also eager to collaborate with the circular economy network from all industries to address concerns such as plastic waste, resource shortages, and global climate change.
In 2021, SCG Chemicals received the Prime Minister's Industry Award in the category of Circular Economy.


SCGC Circular Economy Strategy

  • Raise stakeholder awareness of the value of natural resources to shift their mindset and behaviors toward preserving and maintaining the value of plastics.
  • Create and create solutions to promote the circular economy business by maximizing the value and efficiency of products through innovation.
  • Collaborate with the circular economy network to strengthen the network and explore new technologies to establish new businesses and sustainable growth across the value chain.


Key Actions in 2021

1
1

Expansion and Growth of Waste-free Community,
Waste-free Community project in Map Ta Phut Municipality in Rayong encompassing the philosophy of home, temple, and school for proper waste management at source. The concept connects with the "community waste bank" powered by the "KoomKah" application to help provide integrated waste management, enhancing direct waste sales opportunities to recyclers and promoting resource circularity to new raw materials. By 2021, the collaboration will have expanded to 64 communities, two fisherman groups, nine temples, one hotel, and 11 schools. As a result, 13 community waste banks were established with over 3,513 KoomKah account members. Since the project's inception, 166 tons of recycled waste have been collected, with a total estimated value of 431,921 baht. The total amount of recycled waste was comparable to reducing 125 tons of CO2 emissions.

2
2

"World-saving Milk Bags": Changing the Mindset of New Generation
A milk bag's 10-minute lifespan can be extended to a chair that can last for ten years. The "World-saving Milk Bag" project encouraged students to bring discarded milk bags to the recycling process to create recycled plastic goods such as chairs and plant pots, where they assisted in the collection, cutting, washing, and drying of milk bags. The Primary Educational Service Area Office served as a collection point for discarded milk bags from schools, as well as a data recording and management using the KoomKah application. SCGC would then connect the network and develop a management system for converting milk bags into plastic resin as recycled plastic goods. Each school would receive 5 points for every kilogram of milk bags collected for future recycled goods redemption. For example, one chair is worth 2,000 points, while a table set is worth 3,800 points. The project enrolled 1,300 schools in the central and eastern areas in 2021. By 2022, the project's larger implementation will be underway in other regions.

3
3

"Plastic Sorting for the Better" (Yak Dee Mee Tae Dai): Turn Post-Consumer Plastic into Products
A collaborative project between SCGC and Unilever Group promotes the establishment of a waste bank in Mueang Mai's Bang Bua Thong Municipality. The project's goal was to collect and sort post-consumer HDPE plastic packaging, including translucent and opaque HDPE packaging bottles and white HDPE packaging bottles such as milk bottles or washing liquid bottles, to manufacture high-quality post-consumer recycled resin (PCR). Meanwhile, multilayer packaging, such as fabric softener bags or snack bags, will be recovered and used as feedstock in petrochemical plants. These recyclable plastics will be utilized to make HDPE packaging bottles for Unilever, such as gallon bottles, fabric detergent bottles, and shampoo and conditioner bottles. Members of the waste bank can redeem one Unilever product for every kilogram of post-consumer plastic materials. In 2021, a total of XXX kilograms of used plastic were collected, and broader implementation in other communities is underway.

4
4

Recycled Melamine Innovation
Created new businesses by developing innovative recycled melamine. SCG Chemicals partnered with Srithai Superware Public Company Limited to develop the "Basinity" product line for melamine wash-basin production. SCG Chemicals collaborated with Topthai Products Company Limited to develop the "Plant Me" product line, which produces melamine plant pots with 10-40% PCR and PIR (depending on the texture). All collaborations were intended to meet the demands of the expanding home decoration market.

Climate Resilience

Increase the proportion of clean energy and energy usage efficiency. 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.


Action Strategies for Climate Resilience
1. Direct Greenhouse Gas Reduction (Scope 1+2)

  • Utilization of clean energy in place of fossil fuels
  • Process and equipment improvement or modification to boost energy efficiency
  • Establishment of research and development of technologies to achieve zero greenhouse gas emissions


2. Indirect Greenhouse Gas Reduction (Scope 3)

  • 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.


3. Development of greenhouse gas storage

  • Reforestation and environmental restoration
  • Development of innovation for greenhouse gas storage

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, SCG Chemicals 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:

  • Floating Solar Solutions.Thailand's first floating solar farm offering end-to-end solutions, from design to buoy production. From 2018 to 2021, it had executed 43 projects for SCG business units and external partners. The combined generation capacity exceeded 50 megawatts, lowering greenhouse gas emissions by over 35,000 tons of CO2 per year.
  • Solar Rooftop. In 2021, SCG Chemicals expanded the solar power generation project on the roof of the SCG Chemicals' office buildings and plants in Map Ta Phut Industrial Estate. The maximum power generation capacity of 3,200 megawatt-hours was utilized to substitute external electricity sources for indoor power usage. This also included 2.2 megawatts of solar rooftop installation on the building, which helped cut greenhouse gas emissions by 1,500 tons of CO2 per year.
  • Solar Farm From 2019 to 2021, SCG Chemicals had installed a series of 2.6-megawatt solar farms along the pipeline that transports products in the RIL Industrial Estate area, reducing greenhouse gas emissions by 1,800 tons of CO2 per year.
  • Project of integration of electric vehicle and solar energy solutions.RIL 1996 Company Limited's diesel-powered vehicles have been replaced by electric vehicles, with plans to establish solar power station systems at RIL Industrial Estate and Map Ta Phut Industrial Estate. The project contributed to reducing greenhouse gas emissions of more than 7 tons of CO2 per vehicle per year.


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.

  • Rayong Olefins Company Limited digitized their highly complex measurement and steam control system, transitioning from manual to digital automation. It also improved the operations of the heat reactive furnace, the plant's most energy-consuming device, with an automation system and machine learning. The approach minimizes annual energy usage and greenhouse gas emissions by a total of 8,030 tons of CO2 equivalent.
  • Map Ta Phut Olefins Company Limited used Artificial Intelligence (AI) technology to manage energy in its manufacturing units. The result shows energy saving by over 19,430 gigajoules per year and reduction of greenhouse gas emissions by 806 tons of CO2 per year, and at the same time making production control easier and more efficient.


Carbon Footprint for Organization (CFO)
In 2021, four companies under SCGC received certifications of Carbon Footprint for Organization from the Thailand Greenhouse Gas Management Organization (Public Organization). The achievement reflected SCG Chemicals' dedication to greenhouse gas management to effectively minimize greenhouse gas emissions.

Climate Risk

SCGC foresees the potential impacts from climate change at Southeast Asia Region by following TCFD framework to assess risk and opportunity in various scenarios to business operation and prepare adaptation plan to mitigate those risks.


Physical Risk
Climate Change and Hazard Risk Taskforce reviewed expertise studies to create specific scenario by assessing long term consequence of Global Emission prediction figure on GHG concentration in atmosphere “Representative Concentration Pathway” (RCP). The potential threats to operation in Southeast Asia such as Sea Level Raising, Flooding, Water Stress, Storm, etc.


Base scenario
RCP 4.5
Worst scenario
RCP 8.5

Then, we analyzed the hot spots and critical processes in value chain by considering current operation control incorporate with public management by government and evaluating whether consequences reach to risk limit or not. If applicable, the risk owner will set adaptation plan to prevent or minimize impact.

According to the worst scenario of climate change if the temperature increasing by 2-degree Celsius Sea Level, the sea level will raise 1.5 -2.0 m. above mean sea level and variation of tides phenomena by Year 2100. Anyhow, after assessed the elevation of critical operation areas along value chain we found only minor consequence at jetty platform which should be modified in the future.

In addition, We set governance process by assigning Energy & Climate Change Committee to be risk owner to manage and control risk then escalating to top management follow SCGC Sustainable Development Structure in order to acknowledge and provide risk mitigation strategy to prevent and minimize impact to business operation.

Moreover, For external engagement we collaborate with government sector such as Royal Irrigation Department, Ministry of Agriculture and Cooperatives and Department of Drainage and Sewerage, Bangkok to ensure the readiness of current water management facilities and triggering process could prevent an impact from sea level raising to all stakeholders.

Transition Risk of Climate Change
SCGC incorporates a climate scenario analysis into its assessment of the potential impact of transition risk in compliance with the Recommendation of the Task Force on Climate-related Financial Disclosure (TCFD). The Company assesses two scenarios based on the World Energy Outlook (WEO), namely the Sustainable Development Scenario (SDS) and the Net Zero by 2050 Scenario (NZE) in relevant areas, including the following:

  • Policy and Legal. The assessment focuses on the country's greenhouse gas emission targets and policies (draft) Climate Change Act, which includes a carbon tax and emission trading system.
  • Market. The assessment focuses on determining variations in product prices, alternative energy demand, and the Carbon Border Adjustment Mechanism (CBAM).
  • Technology. The assessment focuses on low-carbon technologies that can replace fossil-fuel-dependent businesses, such as clean energy, electric vehicles, batteries, etc.
  • Reputation. The assessment focuses primarily on investors' needs and expectations regarding climate change management and the transition to low-carbon corporate operations.


The outcomes of the assessments are utilized to establish the Company's preparedness strategy, business operations, and mitigation plan.

Product Stewardship

SCGC is committed to social responsibility, and commitment to continuous product development to ensure that the products do not pose a risk to safety, occupational health, and the environment, SCGC Chemicals has implemented a system to take care of products that are safe and environmentally friendly. in operation Covering the entire product life cycle and closely monitored for continuous improvement in line with international standards.


Product Stewardship System to Ensure Safety and Environmental Friendliness

  • Assess risks associated with safety, occupational health, and the environment of the products throughout their life cycles and implement risk mitigation measures.
  • Assess the environmental impact of the product throughout the product life cycle
  • Ensure that products meet related quality standards, laws, rules, regulations, safety, occupational health, and environment.
  • Prepare product safety information in accordance with the Globally Harmonized System (GHS) guideline to ensure that customers across the value chain can safely access and use it.
  • Promote the development of environmentally friendly products and seek SCGC Green Choice certification to provide customers with options and set itself apart from competitors
  • Promote the certification of product carbon footprint labeling to raise customers' awareness of the product's environmental impacts across the value chain.
  • Access and enhance the product stewardship system to continuously ensure safety and environmental friendliness.

SCGC Green Polymer

SCGC, an innovative Green Solutions petrochemical companies in Thailand and a leading industry key player of the region, realizes the urgency of the fastest-growing, starling environmental threat and takes into account of ambitious commitment to never make plastic materials become waste. In so doing, we have integrated the concept of circular economy into our core strategies. These strategies help retain the value of plastics and find their ways to our new product offerings SCG GREEN POLYMER™ encompassing four major solutions: REDUCE - Enhancing Material for Eco-Efficiency; RECYCLABLE - Design for Recyclability; RECYCLE - Mechanical & Advanced Recycling, and RENEWABLE – Bioplastics.



Embedding with our SMX™ Technology, our breakthrough innovation helps strengthen polyethylene resins and reduce the wall thickness in a product while retaining its functional properties. This does not only save raw material in manufacturing but also makes the product more lightweight, which translates to less energy required for transportation and less carbon dioxide emissions. To keep hard-to-recycle out of the environment, we have developed and enhanced better PP and PE resins to become practical options for mono-materiality. The solution enables full recyclability, while achieving existing properties, and will help to improve post-consumer management. The solution is currently in the development process done in conjunction with several brand owners.


High Quality Post-Consumer Recycled Resin (PCR) is one of innovation in the “Recycle” solution. With our exclusive formulations and wide-ranging network of household waste collection, we can turn waste into high-quality PCR HDPE. Our PCR complies with global traceability standards such as Global Recycle Standard (GRS) and it can replace the use of virgin raw materials from at least 25% up to 100%, an achievement that is in line with global commitments from brand owners. Ultimately, our PCR pushes the boundaries of environmentally friendly packaging innovations. Moreover, we have developed advanced recycling technology that turns post-consumer plastics into recycled feedstock for virgin plastic resin production. This advanced technology utilizes catalyst to promote energy saving and environmental friendliness for the recycling process.


Our Bio Compostable Compound offers unique products made from renewable resources in which contributing to greenhouse gas emissions reduction along the chain. The resin is ready to use as a drop-in compound and processing friendly. There are a number of recognized certifiers in Europe, DIN CERTCO and Biodegradable Products Institute (BPI) in USA.