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Governance
& Economy

RISK MANAGEMENT

To enhance its ability to accomplish the defined objectives and manage risks in an efficient, effective, and timely manner, Chemicals Business has introduced SCGC’s Enterprise Risk Management (ERM) Framework to the organization for organization-wide risk management.

Our employs a sustainable development structure in the supervision of risk management through a committee in the economic, environmental, social, and governance dimensions, which oversees and supports the management plans for major risks on the business unit level to ensure that such risks can be managed and subsequently reports the business unit-level risk management status on a quarterly basis to the Risk Management Committee for acknowledgment. Furthermore, to accommodate potential fluctuations in business operations, the Company has integrated risk management and business continuity management (BCM) and prepared prepared business continuity plans (BCPs) for responding to emergencies and crises so as to minimize impacts that may impact the business and the stakeholders.

Post-Incident
Incident Management - Business Continuity Management

SCGC established a crisis management governance structure and crisis communication flow to linkage internal processes between responsible persons and related functions who take care any group of stakeholders during crisis period.

Water related risks management

       To ensure SCGC timely manages water related risks, by setting risk management process to monitors water situation, including rainfalls, potential flood, or drought. SCGC representatives attended Government Water Management Taskforces such Water Basin Committee, Keyman Water War room in Eastern to strengthen competitive advantage, supply ability, and sustainability, In addition, we have been participating government weekly meeting regarding water situation trend analysis with the government sector by attending “Water Situation Monitoring and Analytic” at the Smart Water Operation Center (SWOC), Royal Irrigation Department to ensure disaster-risk preparedness in our operation areas.

Prepare crisis management facilities to support such as Crisis Room (physical & virtual), CCTV, MS Team, Chat Group, and Social Listening Tools.
Identify designated roles and
responsibilities of Crisis Leader, Coordinator, and related members
Ensure business operations keep continuing during crisis.
Linkage information from on-ground Emergency Management Team (Incident Command System – ICS) – Crisis Management Team to minimize impact to business and communicate to stakeholders

SCGC established escalation guidelines to activate the crisis management team at the company and business unit level (Local Management Team: LMT and Business unit Management Team: BMT) in order to manage crisis situations by considering critical factors such as revenue, reputation, safety, health, environmental and laws & regulations to minimize impact from crisis event by applying corporate standards (Crisis Management Guideline) to local and overseas operations in SCGC.

Sensitivity Analysis and Stress testing
for Water and Climate

Water Management for Water Availability Drought-Prone Area
Water related risks management
Sensitivity Analysis and Stress testing
Scenario Planning & Sensitivity Analysis
Worst Case Scenario & Business Continuity Plan

To ensure SCGC timely manages water related risks, by setting risk management process to monitors water situation, including rainfalls, potential flood, or drought. SCGC representatives attended Government Water Management Taskforces such Water Basin Committee, Keyman Water War room in Eastern to strengthen competitive advantage, supply ability, and sustainability, In addition, we have been participating government weekly meeting regarding water situation trend analysis with the government sector by attending “Water Situation Monitoring and Analytic” at the Smart Water Operation Center (SWOC), Royal Irrigation Department to ensure disaster-risk preparedness in our operation areas.

  • Subsequently, we have summarized the situation simulate potential scenarios incorporated with AQUEDUCT Water Risk Atlas data to assess risks related to water 
scarcity and stress area
  • Sharing to related committees in Sustainable Development Structure to assess water related risks
  • Preparing Risk Mitigation Plan to manage those risk which the risk dashboard escalation process will be reported to Risk Management Committee (RMC) as quarterly basis. While in case of emergency and Crisis Management Team BMT SCGC will be triggered to support and strategic direction when necessary.
  • Ensure business operations keep continuing during crisis.

To ensure SCGC timely manages water related risks, by setting risk management process to monitors water situation, including rainfalls, potential flood, or drought. SCGC representatives attended Government Water Management Taskforces such Water Basin Committee, Keyman Water War room in Eastern to strengthen competitive advantage, supply ability, and sustainability, In addition, we have been participating government weekly meeting regarding water situation trend analysis with the government sector by attending “Water Situation Monitoring and Analytic” at the Smart Water Operation Center (SWOC), Royal Irrigation Department to ensure disaster-risk preparedness in our operation areas.

  1. Subsequently, we have summarized the situation simulate potential scenarios incorporated with AQUEDUCT Water Risk Atlas data to assess risks related to water scarcity and stress area
  2. Sharing to related committees in Sustainable Development Structure to assess water related risks
  3. Preparing Risk Mitigation Plan to manage those risk which the risk dashboard escalation process will be reported to Risk Management Committee (RMC) as quarterly basis. While in case of emergency and Crisis Management Team BMT SCGC will be triggered to support and strategic direction when necessary.

In addition, SCGC monitors water level of the 3 major reservoirs Dokkrai, Nongplalai, and Klongyai) in Rayong Province, which mainly supply water to manufacturing base in Map Ta Phut, by drawing up a water situation scenario to forecast water quantity in the reservoirs. SCG BCM team used ENSO forecast model, Royal Irrigation Department, Keyman Water War Room and In-house modeling to analyze the precipitation and estimate water inflow pattern in various scenarios.

The scenario planning of 3 major reservoirs (Nongplalai, Dokkrai, and Klongyai) have been analyzed water-related risks based on the 2-year forward looking assumption by simulating water inflow situations to these reservoirs in various scenarios, in terms of frequency & consequence, up to the worst-case level.

  1. Average inflow to reservoirs (Average)
  2. The lowest inflow in single year during the past 20 years (Lowest)
  3. The lowest inflow in 2 consecutive years (Last Drought in Y2004 – 2005)

We assess the worst-case scenario up to water scarcity, insufficient for all stakeholders during drought crisis.The scenario includes “what if” the water shortage causes SCGC to reduce its production capacities to the minimum level of service for certain periods in which keys factors including customer prioritization, dependency, utility arrangement, manufacturing condition and inventory management along supply chain are considered the outage scenario to develop risk treatment options and mitigation plans to minimize water usage and related cost.

Risk Management 4 Steps

01

ระบุ
ความเสี่ยง

SCG Risk Universe

02

ประเมิน
ความเสี่ยง

SCG Heatmap & Assessment Criteria

03

ตอบสนอง
ความเสี่ยง

SCG Risk Response Strategies

04

รายงานและติดตาม
ความเสี่ยง

KRI, SCG Risk Register Risk Dashboard

Biodiversity

Marine

The SCGC's petrochemical operations are primarily concentrated in industrial estates adjacent to the coastline. Although operations are conducted in conformity with the law, the business will continue to expand in the future, posing a risk of accumulation that could impact the marine environment, particularly aquatic life and biodiversity. This could eventually have an impact on the quality of life for employees and the communities surrounding the plants. SCGC carries out research on marine environment restoration and introduces CSR initiatives such as Fish Home.


Over the past decade, We have installed 2,180 fish homes along the eastern coastline, spanning an area of approximately 50 square kilometers in Chonburi, Rayong, Chanthaburi, and Trat provinces. Additionally, research studies have been conducted to continuously assess the environmental quality and abundance of areas where fish homes are installed. The area surveyed is found to be home to up to 174 species of diverse organisms.

Forest

The rise of bio-based plastics increases the risk of deforestation, as the area is used to cultivate crops for bioplastic production. SCGC has recognized the risks in this area and mitigated them by developing a list of agricultural goods that are not sourced from deforestation and are certified internationally, such as BONSUCRO (Sustainable Sugarcane and Sugar Production Standards)

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SCG Chemicals
Public Company Limited
1 Siam Cement Road, Bangsue,
Bangkok 10800 Thailand
+662-586-1111
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