Biodiversity

Biodiversity is under threaten with accelerating species extinction rate upon impact of human activities. SCG, recognizing the importance of biodiversity and ecosystem, thus implements biodiversity conservation project wherever it conducts business, and is committed to achieve “Net Positive Impact” in all processes involved.

The importance of biodiversity and ecosystem in global sustainability has re-emerged prominent in recent years due to biodiversity losses resulting from human activities and impacting the equilibrium of nature and livelihoods of mankind. On our part, SCG has relentlessly implemented efforts in biodiversity and environmental conservation, through sustainable management approach and applying international indicators to benchmark what we have done, with a view to making SCG a role model in biodiversity conservation.

100%

of active quarries have Biodiversity Management Plan in 2022

Water withdrawal reduction by 23% by 2025 compared with BAU at the base year 2014

100%

of active quarries have Biodiversity Baseline Data in 2022

Tree plantation 3 million rais by 2050 to capture GHG and restore ecological balance

70%

of Similarity Index in rehabilitated quarry area must equal to buffer zone in 2022

SCG Packaging

14.4%of agroforestry area

Biodiversity conservation area certified by FSC^TM standards at least 10% of agroforestry area
No gross deforestation

SCG Chemicals

2,230 fish homes

Increase the number of fish homes
Increase the quality of food plants for wildlife and native tree

Biodiversity Risk Assessment

We assess nature-related impact and dependency, with a focus on identifying potential risks and opportunities in the future following the LEAP (Locate/Evaluate/Assess/Prepare) approach proposed by TNFD, our analysis integrated Enterprise Risk Management process and framework that included policy & regulatory, technology, market, physical, and reputational risks.

Methodology

We’re conscious of potential risks to nature and biodiversity from our business footprint, especially near wild and biodiversity-rich areas. Using TNFD-recommended tools like IBAT, Global Forest Watch, WWF Biodiversity Risk Filter, Protected Planet, and Aqueduct, we map our sites globally, ensuring responsible environmental stewardship. Together, we safeguard ecosystems and promote sustainable practices.

Scope of Biodiversity Risk assessment

Our biodiversity risk assessment covers various critical areas to comprehensively understand and address potential impacts on nature. We focus on four key components:

Own Operations:

We diligently assess the biodiversity risks associated with our own operations, ensuring that our activities promote conservation and minimize negative effects on ecosystems.

Adjacent Areas to Own Operations:

Recognizing the interconnectedness of ecosystems, we extend our assessment to nearby regions, taking into account the potential influence our operations may have on the biodiversity of neighboring areas. We meticulously mapped our business sites within a 50km, 10km, and 5 km radius.

Upstream Activities (suppliers):

We thoroughly evaluate the biodiversity risks linked to our upstream activities, such as sourcing raw materials or resources, to identify and mitigate any adverse effects on biodiversity throughout the supply chain.

Downstream Activities(customers):

Our assessment also includes downstream activities, considering the impacts of our products or services on biodiversity. We work closely with our customers to promote sustainable practices and encourage biodiversity conservation throughout product use and disposal.

We strive to promote environmental responsibility, protect biodiversity hotspots, and contribute to the conservation of our planet’s precious ecosystems. Together, we can make a positive impact on biodiversity and create a sustainable future for all.

Dependency and Impact

NATURE-RELATED RISKS

Biodiversity Mitigation Hierarchy

AVOID

SCG commits to have a Net Positive Impact on biodiversity. We have developed an innovative mine design called the “Semi-Open Cut”. At The Siam Cement (Keang Khoi) – SKK has designed the first environmentally friendly Semi Open Cut mine in Thailand at its mine plant in Lampang province. We leave 1470 Ha or approx. 50% of concession area along the mine boundary line as a buffer zone to maintain the visual aesthetic of the natural landscape and conserve biodiversity and ecosystem functions in the area, as well as being a reference for mine rehabilitation.

REDUCE

SCG uses “Mine sight”, a mine design program, to minimize the operation area at a time, leaving some part of the operation area untouched until needed and rehabilitate the finished area as soon as possible. Also, we have tried to reduce our impacts as much as possible. Our actions are as follows; setting speed limit, limiting the blasting time, using delay detonators to reduce vibration, etc. At The Siam Cement (Ta Luang) – STL in Saraburi province, which the new mining technique uses a unique drilling method and top-down explosions to create a downward staircase which eventually becomes a hole in the mountain. Tree cover around the mine also helps reduce the spread of dust and absorbs noise, preserving the green mountain scenery and nearby natural habitats.

RESTORE/REGENERATE

SCG have been collaborating with experts from various educational organizations to design mine rehabilitation with biodiversity conservation concept, focusing on planting local native species and creating ecosystem services in the area as well as developing endemic species conservation program to maintain key species in the area. We have rehabilitation plan and biodiversity management plan in every site. At Siam Forestry Co.,Ltd, SCGP (Packaging Business).In 2022, the company planned the third conservation site the size of 109.5 rai at Khao Cha-ang in Nongphai Subdistrict, Danmakhamtia District in Kanchanaburi province. The biodiversity survey and assessment in preparation for conservation undertaking established High Conservation Value (HCV, divided into 6 levels) at Level 5 (Basics Need), which means having resources to support community’s basic need. The Shannon-Weiner Diversity Index measuring diversity of fauna species in the area established the value at 3.56, deemed high. Data from the survey shall inform the biodiversity management plan for the area.

TRANSFORM

We collaborate with Department of National Parks, Wildlife and Plant Conservation and Royal Forest Department to restore forest with biodiversity conservation concept in other areas as part of Natural Climate Solution. SCG also realize about the importance of coastal and marine resources. Therefore, we collaborate with the Department of Coastal and Marine Resources to restore mangrove forest, plant seagrass, build fish home, and restore coral reefs by our 3D printing artificial reefs that is blend-in with natural and leave no harm to marine environment. Cement and Building Materials Business aims to install 1,250 coral reef houses, innovated from 3D Cement Printing Technology by 2023 in several areas including Samaesan Island in Chonburi, Koh Phi Phi in Krabi. In 2022, it added 131 sets in eight areas. The biodiversity survey in locations where such coral reef houses were laid before in Koh Maiton, Phuket showed that two years afterword, 430 coral colonies emerged (averaging 3-5 c.m. deemed healthy) alongside discovery of 15 fish species and 31 plankton species.

Risk Monitoring and Reporting

It is essential for risk owners to continuously monitor and periodically review the identified, assessed, and managed risks. The outcome of the implementation of risk mitigation measures will be reported to various committees at different time intervals, such as the Business Unit Risk Management Committee, SCG Risk Management Committee, SCC Audit Committee, and SCC Board of Directors. For instance, medium-term risk is reported on an annual basis, while operational risk is reported on a quarterly basis

Definition

Biodiversity	The variability among living organisms from all sources, including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems.
Dependencies	Aspects of ecosystem services that an organization or other actor relies on to function. Dependencies include ecosystems’ ability to regulate water flow, water quality, and hazards like fires and floods; provide a suitable habitat for pollinators (who in turn provide a service directly to economies), and sequester carbon (in terrestrial, freshwater and marine realms).
Impacts	Changes in the state of nature, which may result in changes to the capacity of nature to provide social and economic functions. Impacts can be positive or negative. They can be the result of an organization’s or another party’s actions and can be direct, indirect or cumulative.
Nature	The natural world, with an emphasis on the diversity of living organisms (including people) and their interactions among themselves and with their environment.
Nature-related risks	Potential threats posed to an organization linked to their and wider society’s dependencies on nature and nature impacts. These can derive from physical, transition and systemic risks.
Rehabilitation	Measures taken to rehabilitate degraded ecosystems or restore cleared ecosystems following exposure to impacts that cannot be completely avoided and/ or minimized. Rehabilitation emphasizes the reparation of ecosystem processes, productivity and services, whereas the goals of restoration also include the re-establishment of the pre-existing biotic integrity in terms of species composition and community structure.
Restoration	Any intentional activities that initiates or accelerates the recovery of an ecosystem from a degraded state.

Document Download

Quarry Rehabilitation and Biodiversity Policy
SCG BIODIVERSITY MANAGEMENT PLAN
SCG Biodiversity Exposure and Assessment
SCG Maetan Model

	First step, “Locate,” we meticulously mapped our business sites within a 50km, 10km, and 5 km radius, focusing on direct operations, upstream and downstream in the components of the supply chain, manufacturing, and customers. All operating sites from 3 business units have been assessed by using the IBAT program, which integrates 3 databases, including Protected Areas (PAs), Key Biodiversity Areas (KBAs), and IUCN Red List species, as part of their rapid screening of biodiversity-related risk and assess area of water stress.
	In the “Evaluate” step, we thoroughly analyze the areas detected in the first step. Our assessment involves estimating the potential impact of nature degradation on these areas, taking into account the level of dependency (e.g., procurement volume, manufacturing volume) and identifying processes/areas where biodiversity degradation could result in significant business impacts.
	For the “Access” step by categories of dependency and impact, track and map our plant water usage with a comprehensive water tool taking into account local water stress, the result are 0 % of sites are in water stress areas, Dependency on Ecosystem Services are water scarcity, forest and pollinator. Impact on water, forest and GHG.
	In the “Prepare” step, The nature-related, together with other ESG issues, have been integrated into Enterprise Risk Management Framework in the part of operational risk that included Risks from Natural Resources and Environmental Management and Physical Risks from Climate Emergency and reporting to the risk management committee. The reports are then presented to the Audit Committee on a quarterly basis. The Biodiversity Mitigation Hierarchy are included; avoid, reduce, restore, and transform. For example of avoid is We committed to having a Net Positive Impact on biodiversity. For example by avoiding we used the semi-opencast mining method at the site completely removes forest habitats and soil and alters water courses and leave approx. 50% of concession area as a buffer zone.