Siam Cement (SCG)

Sustainability strategy and accountability
SCG discloses its process for identifying and prioritising its most relevant sustainability impacts as well as the outcome of this process, in relation to its sustainability strategy. The company reports consistently against all its targets. The company provides evidence of linking performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues.

Stakeholder engagement
SCG discloses an overview of the issues raised during its stakeholder engagement activities. It also discloses how often and through which channels it engages with various stakeholder groups. The company discloses how its stakeholder engagement activities impact its sustainability strategy. The company’s stakeholder engagement covers nature, including biodiversity, and social issues.

Key areas and species
SCG discloses the locations that are in or adjacent to areas important for biodiversity within its own operations. The company has a management plan for locations within its own operations adjacent to areas important for biodiversity, and it discloses the percentage of land, fresh water and sea use in such locations. The company discloses species populations existing in or adjacent to its own locations.

Ecosystem conversion and restoration
SCG commits to zero net deforestation and net nature positive impact by 2050. The company discloses some activities to minimise ecosystem conversion. It also has a policy of ecosystem and biodiversity rehabilitation in its quarries, which is equivalent to a commitment by the company to restore the resulting ecosystem impact of its activities. The company discloses details and outcomes of ecosystem restoration projects in areas affected by its own operations or by its suppliers. It also discloses ecosystem restoration efforts beyond areas affected by its own operations or suppliers, such as compensation or offset mechanisms.

Water
SCG has a 2025 target to reduce water withdrawal by 23% compared with business as usual in the 2014 base year, and it reports progress against the target. The company also reports how much water is withdrawn for its own operations in water-stressed areas, and it regularly reports on water pollution.

Solid and air pollution
SCG is reducing the production of hazardous waste. It discloses the proportion of hazardous waste treated to reduce pollution compared to total waste, the hazardous waste diverted from disposal and the waste directed to disposal. The company reports some activities to reduce plastic use and waste in its own operations. The company’s packaging business has set a target to increase the sales of recyclable, reusable or compostable packaging to 100% of the total sale of packaging by 2025, and it reports progress against the target. The company reports regularly on air quality parameters of emissions of harmful air pollutants. It has a time-bound target to reduce dust emissions by 8% by 2025 compared with business as usual in the 2020 base year.

GHG emissions
SCG has targets of net zero GHG emissions by 2050 and a reduction of net GHG emissions of scope 1 and 2 by at least 20% by 2030 compared to the 2020 base year, inclusive of its business activities in and outside Thailand. The company reports progress against these targets.

Safe, clean, healthy and sustainable environment 
SCG demonstrates that its human rights risks and impacts identification process includes a focus on the health of local communities.

Sustainability strategy and accountability
The company does not disclose group-wide targets on key sustainability topics for the most material parts of its value chain based on the SBTN Sectoral Materiality Tool. Neither does the company disclose whether its highest governance body has expertise regarding nature-related topics.

Lobbying
The company reports that it has been a member of the Dow Jones Sustainability Indices since 2004 and is also recognised as member of the FTSE4Good Index Series. However, it has an opportunity to disclose a list of all the trade associations of which it is a member. The company does not disclose a clear and detailed framework for assessing alignment of its trade associations with nature-positive policies. Nor does it report (potential) misalignment between the lobbying activities of its trade associations and nature-positive policies.

Impact and dependencies assessment
The company does not disclose any assessment of its impacts on nature, including biodiversity, within its own operations or in its supply chain. The company does not disclose any assessment of its dependencies on nature within its own operations. Nor does it disclose any assessment of dependencies on nature of its upstream business relationships.

Key areas and species
The company does not disclose the locations of its suppliers that are in or adjacent to areas important for biodiversity. The company does not disclose species populations existing in or adjacent to the locations of its suppliers. Nor does it disclose the status according to national and international conservation lists of species identified in its own locations.

Ecosystem conversion and restoration
While the company adheres to the commitments of the Paris Agreement, due to the nature of its activities, it is not possible to determine whether it is committed to zero ecosystem conversion. The company does not disclose activities to achieve conversion-free supply chains or have time-bound targets to achieve conversion-free supply chains.

Resource exploitation and circularity
The company does not disclose its inputs, including its material footprint. The company does not report quantitatively on its group-wide circularity performance. The company does not disclose activities to improve soil health or agrobiodiversity in its production or sourcing practices, nor does it have an associated target.

Water
The company reported an increase in the total water withdrawn from 94.29 million cubic metres in 2020 to 130.03 million cubic metres in 2021. The company does not engage with suppliers to reduce water withdrawal. The company does not report a decrease in water pollution, nor does it disclose its processes for managing and monitoring discharge water quality or targets to reduce water pollution. The company does not disclose a commitment to respect the right to water. Finally, the company does not disclose its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.

Solid and air pollution
The company is not reducing plastic use and waste in its own operations, nor does it report on the amount of plastic waste generated and proportions directed from or to disposal.

GHG emissions
The company’s scope 1 and 2 emissions reduction target is not aligned with a 1.5-degree trajectory. The company is not reducing its scope 3 emissions. It does not disclose a time-bound target to reduce its scope 3 emissions, nor report progress against it.

Invasive species
No evidence was found that the company identifies the activities that could lead to the introduction of invasive species in its own operations. Nor was evidence found that the company identifies the activities that could lead to the introduction of invasive species in its value chain.

Safe, clean, healthy and sustainable environment
The company is not committed to respecting local communities’ right to a safe, clean, healthy and sustainable environment. The company does not track its actual or potential negative impacts on the health of local communities. Nor is it committed to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Indigenous Peoples’ and land rights
The company does not disclose a commitment to respect Indigenous Peoples’ rights. The company does not disclose its processes for identifying and recognising the rights of Indigenous Peoples when activities in its own operations may impact their rights, nor does it describe how it obtains Indigenous Peoples’ free, prior and informed consent. The company does not disclose a commitment to respect ownership and use of land and natural resources and related legitimate tenure rights, as set out in the relevant part(s) of the VGGTs or the IFC Performance Standards. The company does not require its business relationships to have a process to identify legitimate tenure rightsholders, paying particular attention to vulnerable or marginalised tenure rightsholders, and to negotiate with them to provide adequate compensation.

While the company discloses that it conducts due diligence in general, it has an opportunity to specify that it conducts human rights due diligence that includes a process for identifying human rights risks and impacts in its financing activities. The company states that it implements a human rights due diligence process to identify and assess human rights abuses and discloses its salient human rights issues. However, it has an opportunity to describe the process for assessing its human rights risks. The company describes its global system to take action to prevent, mitigate or remediate salient human rights issues, and this includes a description of how its global system applies to its supply chain. There is no evidence that the company provides an example of the conclusions reached and actions taken or to be taken on at least one of its salient human rights issues as a result of assessment processes. The company discloses categories of stakeholders whose human rights have been or may be affected by its activities. However, there is no evidence that the company provides examples of its engagement with stakeholders whose human rights have been or may be affected by its activities.

The company has a publicly available policy statement which shows it is committed to respecting the health and safety of workers. The company also has a publicly available policy statement which shows it expects its suppliers to commit to respecting the health and safety of their workers. There is no evidence that the company discloses a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage. Nor is there evidence that the company describes how it determines a living wage for the regions where it operates. While the company states that it expects its suppliers to pay wages that are sufficient for workers and their families to fulfil their basic needs, it has an opportunity to disclose how it works to support the payment of a living wage by its suppliers. The company discloses that 85.6% of its employees are represented by independent trade unions or covered by collective bargaining agreements. However, it is not clear whether the disclosed proportion is covered by collective bargaining agreements specifically. There is no evidence that the company describes how it works to support the practices of its suppliers in relation to freedom of association and collective bargaining.

The company discloses a global tax strategy. It takes steps to identify and address bribery and corruption and includes anti-bribery and anti-corruption clauses in its contracts with direct business relationships. However, there is no evidence that the company has a publicly available policy statement or policy setting out its lobbying and political engagement approach. The company specifies that it does not make political contributions.