Siam Cement

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

Siam Cement may have committed itself to long-term emission reduction targets but this is not backed by a credible transition plan. While a long-term target exists, it is not aligned with the Paris Agreement, hence the company should increase the ambition of its targets to align with a 1.5°C pathway. Furthermore, Siam Cement should set intermediate targets no more than five years apart to incentivise near-term action on its long-term goals

Siam Cement discloses some targets and initiatives as part of its low-carbon transition plan but does not include targets for scope 3 emissions. To ensure alignment with a 1.5°C pathway, the company should include targets that cover the majority of its emissions. Although Siam Cement has a committee tasked with the oversight of climate change issues, there is no evidence that its members have adequate climate expertise oit is a board-level committee. A lack of expertise at board or equivalent level could be a barrier to the successful management of low-carbon transition. To show its commitment to a low-carbon transition, the company can publish more details of its investments in CCUS technologies. While the company considers an internal carbon price and has carried out scenario testing, it should consider publishing the results and potential impacts.

Siam Cement invested USD 76.5 million in research and development (R&D) in 2022, of which USD 69.9 million was invested in low-carbon technologies. However, the company only started reporting on low-carbon R&D in 2022. R&D expenditure on low-carbon technologies will be essential for Siam Cement to develop a low-carbon product portfolio and be successful in a low-carbon economy.

Although the company has implemented supplier and client engagement strategies that cover 100% of its suppliers and clients, they do not specifically include GHG emissions reduction requirements. Creating quantified targets and requirements beyond recommendations would provide clear direction for the whole supply chain. Siam Cement does not have a public policy for engagement with trade associations/industry organisations. The company should formulate a clear engagement policy, including a monitoring and review process as well as an action plan in case of misalignment.

Siam Cement has set a target to reduce its Scope 1 and 2 emissions by at least 20% by 2030, compared to 2020.

Siam Cement has set ambitious targets, including reaching 2/3 of total sales revenue from Green Choice products by 2030, and reporting seems to be consistent. The company already reported significant sales from this segment and it is actively engaged in various sustainability initiatives. For even greater consistency, Siam Cement could disclose more data on their impact, for example including the recycling rate of concrete waste.

Over the past few years, the company’s Scope 1 and 2 emissions have increased. On the other hand, the company recently reported significant sales from its Green Choice products.

Siam Cement reportedly invested USD 69.9 million in low-carbon research and development (R&D), which accounts for 91% of its R&D spend for that year. The company is investing in CCUS technology research and is engaged in various sustainability initiatives, such as the manufacture of hydraulic cement and reducing clinker usage.

The company aims to increase the proportion of low-carbon energy use and for 2/3 of its total sales revenue to come from Green Choice products by 2030.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.
No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

The company has a commitment to create and support access to green and decent jobs as part of the low-carbon transition. However, no evidence was found of the company’s actions to create jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.
No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.
The company discloses information on its process to understand misalignment of its lobbying activities with policies and regulations that support the just transition. However, no relevant disclosure was found on where its activities are aligned or misaligned with a just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work. Additionally, the company discloses information on how it engages with stakeholders whose rights may have been affected, as well as the company discloses its salient human rights issues and its mitigation plans and remediation actions. The company can strengthen its disclosure on how it identifies and assesses human rights risks, as well as how it engages with stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships.  The company also sets time-bound targets for women’s empowerment and discloses the share of women in its workforce by employee category. The company can however improve its disclosure on these topics and other key decent work issues including collective bargaining and working hours practices.

The company has a policy prohibiting bribery and corruption, and includes corresponding clauses in its contracts with business relationships. Additionally the company is committed to protecting personal data. Furthermore, the company specifies that it does not make political contributions and it discloses its global tax strategy. The company can however strengthen its disclosure on these subjects.