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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.
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.
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.
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.
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.
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.
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.
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.
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)
