Siam City Cement

Siam City Cement aims to reduce its scope 1 emissions to less than 0.53 tonnes net carbon dioxide per tonne of cementitious material, and scope 2 emissions to less than 0.04 tonnes net carbon dioxide per tonne of cementitious material. The company’s current emissions are in line with the targets it has set.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

While Siam City Cement’s current emissions are in line with the targets set by the company, these emissions targets do not align with a 1.5°C pathway. The company should also set intermediate targets at intervals of no more than five years to drive near-term emissions reduction progress. Between 2020 and 2022, the company’s emissions intensity declined by 1.78% per year. To get on track with a 1.5°C pathway, the company needs to deliver about 3% emissions reductions annually over the next five years.

While Siam City Cement has implemented board-level oversight of climate change, there is no evidence of significant low-carbon expertise among board members, nor are there benefits tied to climate change achievements. The company can enhance its Sustainability Ambition 2030 by disclosing associated costs and illustrating how the targets integrate into the overall business strategy. It can also strengthen its strategy by conducting scenario analysis and considering a carbon price. Furthermore, Siam City Cement has not disclosed its revenue from low-carbon activities. While it has been developing some low-carbon business models, there is potential to expand the coverage and growth of these models.

Siam City Cement has not publicly disclosed its research and development (R&D) expenditure over the past three years, nor has it provided quantitative data regarding its investment in low-carbon technologies. Although the company has been transitioning towards the use of alternative fuels, there is room for further increasing this share.

Siam City Cement aims to reduce emissions from suppliers but lacks disclosure on the scope of this emissions reduction. The company should incorporate emissions reduction and public reporting requirements in its supplier procurement and response plans. The company’s client engagement includes support for distributors and retailers but could benefit from explicit emissions reduction targets. The company needs more comprehensive action and impact reporting to enhance both its supplier and client engagement efforts. Additionally, it should disclose its policy for engaging with industry associations on climate issues, commit to the Paris Agreement and ensure policy alignment with climate goals.

Through its Sustainability Ambition 2030, Siam City Cement outlines its targets for scope 1 and scope 2 emissions originating from its operations. By 2030, the company aims to reduce its scope 1 emissions to less than 530 kilograms (kg) net carbon dioxide per tonne of cementitious materials, representing a 15% reduction from the 2020 baseline. It also plans to decrease its scope 2 emissions to less than 0.04 tonne net carbon dioxide per tonne of cementitious materials, translating to a 10% reduction in specific electricity consumption from a 2020 baseline. Furthermore, the company targets to source at least 20% of its consumed electricity from alternative energy sources.

Under its Sustainability Ambition 2030, the company establishes goals related to scope 1 and scope 2 emissions aligned with a 2°C pathway. However, it does not disclose the costs associated with its low-carbon transition or illustrate how its targets integrate into the overall business strategy.  While it has a strategy to influence its suppliers and clients to reduce their emissions, it should specify emission reduction targets in its supplier and client strategies, and set reduction in scope 3 emissions in its decarbonisation strategy.

Siam City Cement has made progress in reducing its scope 1 and scope 2 emissions intensity. Its scope 1 emissions intensity has declined from 0.62 tonnes net carbon dioxide per tonne of cementitious material in 2020 to 0.61 in 2022. Similarly, its scope 2 emissions intensity has declined from 0.05 tonnes net carbon dioxide per tonne of cementitious material to 0.04 during the same time period.

While the company does not disclose information on its low-carbon capital expenditure and R&D, it discloses its transition towards low-carbon business models. Its subsidiary, Siam City Cement Vietnam, has been manufacturing low-clinker cement, constituting 12% of the group’s revenue. Moreover, the group has been incorporating alternative raw materials in its production process, emphasising high-quality products tailored to the requirements of diverse construction sectors and employing biomass to substitute fossil fuels.

Siam City Cement’s Sustainability Ambition 2030 aligns with a 2°C pathway as outlined in the International Energy Agency (IEA) Technology Roadmap for a low-carbon transition in the cement industry. The company intends to transition its cement product portfolio, shifting towards composite cement with a lower clinker factor, and increase its use of alternative and renewable energy sources. Furthermore, its strategy includes optimising the use and management of raw materials, maximising co-processing capabilities, and collaborating with industry leaders in circular economy initiatives.

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.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups.
No relevant disclosure was found of the company’s assessment of employment dislocation risks. Further, no public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies the impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to their 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.
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the 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.

While the company commits to respecting human rights, no evidence was found that it commits to respecting the ILO fundamental rights at work. Additionally, no evidence was found that the company expects its business relationships to respect the ILO fundamental rights at work. No evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain, or of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

No evidence was found that the company commits to respecting the health and safety of its workers or that it expects its business relationships to commit to the same. No evidence was found of the company having a time-bound target for paying all workers a living wage. No evidence was found that the company discloses the proportion of its direct workforce covered by collective bargaining agreements or its required working hours. The company discloses some indicators of workforce diversity, such as the age and gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. No evidence was found that the company commits to gender equality and women’s empowerment.

No evidence was found that the company commits to protecting personal data and has a privacy statement regarding the collection, sharing and access to personal data. No relevant disclosure was found of the company’s global tax strategy and the corporate income tax it pays in each relevant jurisdiction. While the company has a policy prohibiting bribery and corruption, no evidence was found that it includes corresponding clauses in its business relationship contracts. The company specifies that it does not make political contributions. However, no evidence was found that it has a lobbying and political engagement policy or that it discloses its expenditure on lobbying activities.