Sustainability Report 2020 A BUILDING RESILIENCE for Sustainability Leadership SCG Sustainability Goals • Being a role model organization in corporate governance, sustainable development and circular economy. • Aim to achieve net zero carbon emissions by 2050. • Minimize natural resource use and environmental impacts. • Enhance health and well-being toward injury and illness free organization. 2 Sustainability Report 2020 Message from President & CEO, and Sustainable Development Sustainability Issues - Contents Committee, SCG 4 Economic, Environmental Sustainable Development Structure 7 The Roles of the Sustainability-Related and Social Committees in 2020 8 Voices of Female Executives from Sustainability Issues 80 SCG Sustainable Development Innovation and Technology 82 Committee 10 Sustainable Value towards Supplier 84 Meetings of the Sustainability-Related Customers Experience Creation 86 Committees in 2020 11 Product Stewardship 88 Waste Management 90 About SCG Water Management 92 Biodiversity and Ecosystem 94 Human Rights 96 Cement-Building Materials Business 14 Employee Caring and Development 98 Chemicals Business 16 Community and Social Involvement 100 Packaging Business 18 SCG, Bringing in Sustainability Sustainability Performance to ASEAN 20 Data Partnership and Collaboration Towards Sustainability 24 Sustainable Value Chain 26 About This Report 104 Stakeholders Engagement 28 Sustainability Performance Data 2020 Opinion Panel 32 2016 - 2020 108 2020 Highlights 34 Operating Results of Cement Business in Accordance with Global Feature Story Cement and Concrete Association (GCCA) 124 Supplier Governance and Enhance Adapting and Moving on towards Sustainability 126 Amid COVID-19 Crisis 38 SCG’s Key Activities on Human SCG Green Choice Rights Risks in 2020 128 You can Choose, for the World 42 Subsidiaries included in Join, Collect and Separate: Sustainability Report 2020 130 Activating a Circular Economy 46 Assurance Statements 134 Zero Burn Creating Renewable Energy while International Standard Reducing Pollution from Straw Indices Burning 50 Water Management at Ban Sa Phae Nuea: Turning the Drought Crisis GRI Content Index 138 Around 54 United Nations Global Compact Commitment to Enhancing (UNGC) 144 for Excellence in Safety 58 Task Force on Climate-related Financial Disclosure (TCFD) 145 Sustainability Accounting Standard Materiality Board (SASB) 146 Materiality 64 Climate Resilience 66 Circular Economy 70 Health and Safety 74 Sustainability Report 2020 3 Message from President & CEO, and Sustainable Development Committee, SCG n 2020, the world faced a major global challenge due to the COVID-19 outbreak. The pandemic has led to a tragic loss of life in nearly all countries. Professionals I and staffs in the healthcare sector have been bravely battling the pandemic and trying to keep everyone safe. The government has been working to respond to the crisis through various containment measures to limit the spread of COIVD-19. Business and industry sectors have also been affected by the crisis and have needed to adapt to ensure that their businesses continue and prosper. SCG has adapted to the pandemic in three main ways: resilience, agility, and speed. Furthermore, the company has been strictly operating its business with the Business Continuity Management (BCM) system, and stakeholder collaboration. SCG’s digital transformation and proactive actions have allowed SCG to turn the crisis into opportunity. The company has satisfactorily survived challenges of 2020. Parts of this success were from our efforts in fostering innovative product and service strategies to achieve the High Value Added (HVA), improving the production process and applying digital technologies in the company’s supply chain management. Our ongoing development helps the company earn trust from individuals in society and allows us to promptly deliver better quality of life to people while promoting a sustainable environment. Health and Safety during the Pandemic SCG closely monitored and assessed the situation and established a health and safety guideline for employees. Physical distancing and other hygiene measures were adopted, such as mask-wearing, handwashing with soap or alcohol, and physical distancing. Employees could work from home or alternative shifts. Work tools to support online working was provided. Moreover, a daily health check system was applied so that SCG’s employees could receive assistance or help promptly. SCG has leveraged its expertise and innovation in a collaborative effort with the healthcare sector in developing a series of COVID-19 innovation medical equipment to be a solution to the pandemic. Almost 31 innovations have been Roongrote Rangsiyopash 4 Sustainability Report 2020 created including Modular Screening, Swab Unit, Negative/ Positive Pressure Isolation Chamber, Patient Isolation Capsule, Message from Tele-Monitoring, Online Clinic application, and Nong Song Jai (AGV), etc. These tools were delivered through SCG 230 networks to facilitate more than 979 healthcare units and institutions, including hospitals, healthcare units and communities President & CEO, across the country. SCG and SCG Foundation have donated over 164 million baht to support development of these innovations. and Sustainable Employees of SCG and its contractors have joined together to elevate Health and Safety measures to achieve the Injury and Illness Free goal by conducting standardized guideline on Goods Transportation Safety for the entire organization. The application Development Committee, of SCG Safety Framework in combination with Safety Performance Assessment Program (SPAP) has continuously being developed to be more up to date and to increase its efficiency. To create SCG higher safety standard, SCG has also continued to develop technology and innovation to reduce occupational risks at workplace. Climate Resilience Even though COVID-19 has become a global challenge, the world is still facing other critical issues: rapid climate change and biodiversity loss. SCG has pledged to reduce greenhouse gas emissions and become a “Net Zero” by 2050 to support the Paris Agreement in limiting temperature increases to less than 1.5 degrees Celsius. Now, current greenhouse gas emission reduction targets are being reviewed as well as promoting Natural Climate Solution (NCS) and other indirect greenhouse gases (Scope 3) reduction. SCG strongly commits to increasing the use of alternative energy, promoting better energy efficiency, and improving products, services and solutions that contribute to emission reduction. The company also adopts Internal Carbon Pricing (ICP) as economic measure in making investment decisions in projects deemed to contribute to greenhouse gas emission cuts. In addition, water resources management has been integrated with international standard tools to be used for climate resilience. Collaboration in Driving Circular Economy In 2020, SCG got another opportunity to host SD Symposium 2020 under the concept of “Circular Economy: Actions for Sustainable Future”. The event was held online due to the COVID-19 situation. In this event, 180 participants across sectors including the public sector, the private sector, academic scholars, communities, and the young generation were invited to brainstorm and propose solutions for the issues that were associated with living conditions and economic situations in the country and the world through Circular Economy principle in 4 dimensions including water reuse management to battle severe drought crisis in the upcoming year, promote “Zero Burn” in 2022 in agricultural to lower PM 2.5 and mitigate global warming, enhance plastic waste management to push forward to become a national agenda with law introduction or amendment to ensure strictly plastic waste management, and Circular Economy principle to be used in the construction industry in order to establish “Green and Clean Construction.” Tanawong Areeratchakul Sustainability Report 2020 5 SCG also organized the SD Symposium 2020 Indonesia under the theme “Circular Economy: Collaboration for Action” with an aim to build awareness and foster understanding of Circular Economy principle, its directions and examples of successful solutions as well as to share and exchange knowledge that would lead to successful Circular Economy implementation. SCG will continuously create projects to drive Circular Economy collaboration both in Thailand and ASEAN with a plan to expand networking in all sectors to collaborate system that creates resource efficiency, starting from a production to consumption stage. Becoming a Sustainable Business Leader The Challenges that SCG had confronted in 2020 confirmed the Company’s commitment in operating the business while taking into account the 5 major goals of UN’s Sustainable Development Goals (SDGs): SDG 3 Good Health and Well-Being, SDG 8 Decent Work and Economic Growth, SDG 9 Industry, Innovation and Infrastructure, SDG 12 Responsible Consumption and Production, and SDG 13 Climate Action. This conviction has become a firm root that helps SCG build up readiness and capability to not only overcome any crisis but also grow sustainably and firmly. As thus, SCG has been ranked by Dow Jones Sustainability Indices (DJSI) as an Industry Leader in Construction Materials. Also, the Company has success fully become the first organization in ASEAN to become a member of DJSI since 2004 and continued for the 17th consecutive year. This Sustainability Report 2020 showcase parts of our vision in operating the business for sustainable