The Path to Natural Restoration

The 15th Conference of the Parties to the Convention on Biological Diversity (CBD COP15), held on December 7-19, 2022, in Montreal, Canada, adopted the KunmingMontreal Global Biodiversity Framework, which established the concept of nature positive as a new global goal alongside the Paris Agreement under the United Nations Framework Convention on Climate Change (UNFCCC) and the Sustainable Development Goals (SDGs).

Nature positive aims to halt and reverse nature loss by 2030 on a 2020 baseline, and achieve full recovery by 2050, measured through biodiversity, ecosystem integrity and natural processes at all levels

This initiative addresses current environmental challenges where biodiversity and ecosystem health continue to decline as the global demand for resources increases rapidly.

Just as net zero targets have spurred governments and private businesses worldwide to develop low-carbon economies and alternative energy sources, nature positive serves as a new goal where all sectors play a role in nature conservation and restoration as well as in the transformation of production and consumption patterns to improve eco-friendliness.

As its businesses, by nature, rely on and have a direct impact on natural resources, SCG is committed to developing approaches to reduce environmental impacts, from management and risk assessment to long-term nature restoration planning aligned with nature positive goals. In 2024, SCG appointed the Nature Positive Committee to work with the SCG Sustainable Development Committee to develop resource management strategies, which involved studying resource dependencies and impacts on nature across the value chain as well as identifying ways to make positive impacts on nature and cultivate a nature positive lifestyle among employees from family to organizational levels.

1. Biodiversity Preservation and Restoration

SCG Cement and Green Solutions: Biodiversity Restoration in Mining Sites

Guided by green mining principles, SCG Cement and Green Solutions prioritizes environmental protection and harmonious co-existence with local communities and thus minimizes potential environmental impacts by adopting semi-open cut mining, leaving buffer zones around mine perimeters to preserve natural mountain landscapes. In addition, the company has been working with external experts to study biodiversity in its mining areas and has developed restoration plans from the beginning through to the present.

A notable success in mining management is the Mae Than Mine, a lignite and ball clay mine in Lampang that operated from 1983 to 2019. The 490-rai, 200-meter-deep mine pit has since been transformed into a reservoir with a maximum capacity of 50 million cubic meters. In 2020, a floating solar farm and
a solar-power pumping system were installed to pump water to nearby community reservoirs for agricultural use, thus increasing productivity and generating income for local communities. Known as the Mae Than Model, the project has expanded its water distribution area under a project named the Siriraj Model.

SCG Cement and Green Solutions has been using Minesight processing software to optimize resource planning for maximum efficiency and is currently driving its transition towards Smart Green Mining through cutting-edge technology such as employing drones for surveying, production planning, and seed dispersal to restore biodiversity. All internal combustion limestone trucks at the Lampang quarry have been fully replaced with 12 EV trucks, while 4 EV trucks have been deployed at Thung Song in Nakhon Si Thammarat and 2 at Khao Wong in Saraburi.

Additionally, SCG is the first in Thailand to successfully implement 5G technology in the industrial sector by collaborating with AIS and Prince of Songkla University to develop a remote-controlled EV Unmanned Truck system. This initiative integrates AI-powered unmanned EV trucks into fleet management systems within mines, enhancing operational efficiency, reducing accident risks, and minimizing environmental impacts. Two trucks are already operational at Khao Wong limestone quarry in Saraburi, with plans to
expand the deployment to other mines as part of ongoing smart green mining initiatives. To date, these limestone EV trucks have contributed 3,083 tons in avoided carbon dioxide emissions in total.

The biodiversity research, impact assessment, and nature restoration across all mining sites in every region are conducted in collaboration with experts from various universities, including the Faculty of Forestry, Kasetsart University; the Faculty of Science, Prince of Songkla University; and the Forest Restoration Research Unit (FORRU), Faculty of Science, Chiang Mai University.

The biodiversity research at each mine consists of three phases:

1. Conducting a biodiversity baseline study to survey and document all plant and animal species in the area
2. Conducting an In-depth plant species study to select and plant pioneer species suitable for ecosystem restoration that attract native for other plant species to thrive
3. Collecting data of naturally increasing biodiversity in the area resulting from bird and insect-mediated dispersal

With new challenges presented by nature positive goals, SCG Cement and Green Solutions is seeking to strengthen its commitment to improving biodiversity restoration plans for its mining sites to better address current environmental situations and exercise prudent in its management to ensure positive impacts on both the mining sites and surrounding communities in accordance with future targets.

Love the Sea Project: Expanding Coral Home Installation

Coral reefs serve as habitats, food sources, and shelters, forming a vital part of the marine ecosystem. However, they have been facing deterioration and damage from both human activities and climate change.

In 2022, SCG launched the Love the Sea Project in partnership with the Department of Marine and Coastal Resources under the Ministry of Natural Resources and Environment, the Faculty of Veterinary Science at Chulalongkorn University, and the Earth Agenda Foundation. Under the project, SCG 3D printing technology is utilized to create substrate materials to which coral larvae can attach, known as coral homes, for coral reef restoration. The design has been continuously refined to closely resemble natural coral, thus providing suitable habitats for reef fish.

SCG has expanded the Love the Sea Project by fostering partnerships with other organizations and rallying their support for further coral home deployment to various locations. These organizations include the Rotary Club of Mining, Phuket Province, which has installed coral homes at Mai Thon Island; Thai Union Group PLC, which has installed coral homes at Racha Island; and Supalai PLC, which has installed coral homes at Sak Island. To date, a total of 1,115 coral homes have been installed under the Love the Sea Project, resulting in 39,600 coral colonies. Surveys have also identified 17 sessile species and over 50 fish species from 18 families.

SCG Chemicals (SCGC): Environmental Risk Assessment and Biodiversity Baseline Study

In 2023, SCG Chemicals (SCGC) completely revised its biodiversity action plans, incorporating guidelines from the Kunming Montreal Global Biodiversity Framework and its nature positive goal of achieving harmonious human-nature coexistence by 2050. This framework guides project operations through three key SCGC Biodiversity Commitments: No Net Loss, Net Positive Impact, and No Deforestation.

Following SCGC’s Biodiversity Protection Roadmap, in 2024 SCGC conducted environmental impact and risk assessments around its operating sites as well as launched a biodiversity baseline study in mangrove forest plantations in Rayong to understand their influence on biodiversity.

For risk assessment and environmental planning, SCGC has adopted the TNFD LEAP Nature-related Risk Assessment Approach and has developed a database for biodiversity area assessment by GIS to evaluate risks within a 50-kilometer radius of all company operations in accordance with the principles of the International Union for Conservation of Nature (IUCN).

Based on the assessment results, nature positive action plans have been developed for areas within the 50-kilometer radius of all operating sites. An example is a biodiversity from the Faculty of Fisheries at Kasetsart University (Bangkhen) and the Department of Marine and Coastal Resources, where environmental changes in mangrove plantations are monitored in order to enhance aquatic habitat restoration and evaluate the success of mangrove reforestation in Noen Kho Sub-district, Klaeng District, Rayong. Conducted with a 2024-2026 timeframe, the study also examines the interrelationship between climate change and biodiversity to identify contributing factors that enhance the health of ecosystems in areas under conservation and restoration as well as improve balance for living organisms and surrounding communities.

SCGC is planning to expand the study to other areas along the eastern seaboard to build a strong foundation and ensure its ability to achieve nature positive goals in the long term.

SCGP: Living up to International Standards for Agroforestry Management

Driven by its commitment to becoming a model organization in biodiversity and ecosystem conservation, SCGP has been working actively to achieve an ecosystem balance by implementing sustainable biodiversity management, adopting international standard indicators, taking a participatory approach to community forest management and utilization, and raising conservation awareness among all stakeholders.

SCGP underwent annual audits by external agencies, namely the Forestry Research Center and FSC (Forest Stewardship Council), and achieved three FSC certifications: FSC™-CW/ COC, FSC™-FM/COC, and FSC™-FM (SLIMF), which ensure that all of its products comply with EU Deforestation Regulations.

Furthermore, SCGP utilizes CERT+, a geographic information system program certified by Thailand’s Greenhouse Gas Management Organization (Public Organization). Designed for calculating tree carbon sequestration, the system employs satellites and AI to measure the amount of carbon capture in each area and monitor.

10.6%
Percentage of forests with biodiversity and ecosystem diversity compared with agroforestry coverage, exceeding the 10% target according to FSC™ sustainable forest management standards

forest conditions for productivity management. Electronic systems have also been introduced for tracking agroforest status and development.

Throughout its wood product development process, SCGP has maintained a No Gross
Deforestation commitment as well as sustainable and legal forest management at every production stage, from raw material procurement to customer delivery. SCGP has also continuously been monitoring biodiversity status and measuring plant diversity indices in three conservation forests: Ban Huai Saphan
Samakkhi Community Forest and Khao Cha-ang Conservation Forest in Kanchanaburi and Kamphaeng Phet Conservation Forest in Kamphaeng Phet.

2. Implementing a Circular Economy: Reducing Natural Resource Use and Creating Value from Waste

As the world’s growing population and increasing consumption rates stand in stark contrast to our limited natural resources, all sectors will inevitably be faced with shortages of virgin materials, which could ultimately impact biodiversity.

As such, every business unit under SCG is committed to advancing a circular economy, as seen in various initiatives, from optimizing production processes, reducing the use of virgin materials, and reclaiming waste materials all the way to developing innovations to enhance product recyclability, expanding cooperation with government agencies, private sector partners, and communities, as well as promoting broader social awareness and understanding of circular economy principles and proper waste management.

SCG: Reducing Resource Use at the Source

Leveraging new technologies, SCG strives to develop green construction solutions, minimize resource use at the source, and develop innovations to replace existing materials with recycled alternatives or upcycle waste into new value-added products, in line with circular economy principles.

Over recent years, SCG Cement and Green Solutions has promoted the use of CPAC BIM solutions for building design to enhance design accuracy and quality control across the construction project. Particularly effective in error detection, this technology helps reduce construction mistakes and redundant
tasks, thus minimizing unnecessary resource waste-including time, labor, and materials-by 5-15%, depending on the project type. In 2024, SCG Smart Living focused on reducing the use of virgin raw materials, such as cement, rock, and sand, by establishing three additional construction waste crushing plants, making them available across all SCG Smart Living facilities nationwide. This initiative has enabled
SCG Smart Living to utilize its own crushed materials in combination with external recycled
materials and replace virgin materials by up to 8%. Excess recycled materials can also be developed into alternative subgrade materials for land adjustment or road construction and for use in place of virgin fill soil or sand in construction projects around and in the vicinity of its plants nationwide.

For COTTO products, a ceramic glazing process using eggshells for sanitaryware and washbasins has been developed, resulting in the world’s first bio-ceramic sanitaryware prototype. This innovation replaces the use of natural calcium carbonate, which generates GHG emissions during the firing process. Now being patented, with plans to integrate into production lines by 2025, this technology is expected to reduce natural resource (limestone) consumption by 460 tons annually and decrease the total GHG emissions from production by 930 tons of carbon dioxide equivalent (tCO2e) per year.

SCGC Paving the Way for a Sustainable Future with Eco-Friendly Plastic Resins

SCG Chemicals (SCGC) recognizes the importance of responsible business practices and is committed
to sustainability in all dimensions. Through the development of SCGC GREEN POLYMERTM an innovative eco-friendly plastic resin, we aim to minimize environmental impact while maximizing resource efficiency. Our approach promotes circular economy principles, driving sustainable production methods. We collaborate with industry partners to increase the use of recycled materials and develop innovative solutions that meet sustainability challenges. By extending positive impacts to communities and society, we strive to balance business growth with genuine environmental stewardship.

Notable projects in 2024 include:

• Recycled PVC Tiles from Dialysis Bags: This project marked Thailand’s first-ever initiative to recycle used dialysis bags into high-quality PVC tiles. Under this circular economy collaboration between Principal Capital PLC (PRINC), Baxter Healthcare, and Dynoflex, a total of 5,320 used dialysis bags have been recycled, equivalent to over 800 kg of PVC waste. The resulting high-quality recycled PVC tiles have been installed in patient wards at Princ Hospital Suvarnabhumi, with plans to expandthe initiative to three more affiliated hospitalsand achieve over 9,000 square meters of installation. The project not only reduces GHG emissions but also maximizes resource utilization in line with circular economy principles.

• Wake up Waste: This SCGC startup has developed a recyclable waste trading and management platform and offers a mobile waste compression service, where waste is collected from various locations, particularly hotels, hospitals, offices, and condominiums, and compressed for efficient transportation to optimal recycling facilities. Currently, Wake Up Waste purchases waste from 400 buildings and has recycled 2,000 tons of material. The project has also been expanded through collaboration with Bangchak Corporation PLC in the “Reduce Waste at the Source with Bangchak” Project, a recyclable waste collection initiative piloted across 50 gas stations.
• NETS UP: Launched in partnership with various network partners, including the Ministry of Natural Resources and Environment, the Youth Fund, and the Alliance to End Plastic Waste (AEPW), this project collects and sorts used fishing nets along Rayong’s coast for recycling into plastic resin and eco-friendly clothing. In 2024, the project collected 1,404 kg of nets, equivalent to the material required to produce 3,300 t-shirts and to 20,812.5 kgCO 2 equivalent of avoided GHG emissions.
• Trade-in for a New World – “Closed-LoopCircular Appliances”: For the first time in Thailand, SCGC has partnered with HomePro to invite customers to trade in old household items for new products with discounts. Used plastics from old appliances are recycled into high-quality PCR (postconsumer recycled) resin, a green innovation under the SCGC GREEN POLYMER™ brand, which is then produced into new electrical appliances using a closed-loop systemeco-friendly circular products that offer new value to customers.

SCGP: Recyclable Packaging Development

SCGP prioritizes resource efficiency and environmental protection in accordance with sustainable development principles. As such, SCGP adopts the Make-Use-Return approach throughout its operations, from design and production to utilization and reprocessing back into raw materials, which has enabled the company to develop packaging that generates no waste over the years. Currently, 99.7% of SCGP’s packaging can be reused, recycled, or decomposed, with a target of reaching 100% by 2030.

SCGP’s recycled material packaging embodies its commitment to the development of sustainable innovative materials, as evident in its efforts to enhance the properties and efficiency of recyclable and degradable paper ibers, adopt mono-material plastic films in place to multi-material options to improve
recyclability, and use PCR resin to reduce plastic burning as fuel and decrease GHG emissions.

In addition, SCGP actively promotes the recycling of used consumer packaging by setting up drop-off points in collaboration with partners across all sectors in various projects, thus efficiently closing the recycling loop. Such projects are: the reBox Project in partnership with Thailand Post, the Old Paper for New Paper Exchange Program, the Bring Paper Home Project in cooperation with government agencies and private”companies, and the Packback Project in collaboration with over 90 public and private organizations. In 2024, these efforts resulted in the recycling of 101 tons of waste paper.

SCGP also promotes sustainable waste management community models through educational activities and has been working to replicate the success of the Zero-Waste Community Projects across Ratchaburi,
Kanchanaburi, Prachinburi, and Khon Kaen. As of 2024, a total of 106 communities joined the project, with 358 tons of waste reduced, generating a combined income of 1.4 million baht for participating communities fibers, adopt mono-material plastic films in place to multi-material options to improve recyclability, and use PCR resin to reduce plastic burning as fuel and decrease GHG emissions.

In addition, SCGP actively promotes the recycling of used consumer packaging by setting up drop off points in collaboration with partners across all sectors in various projects, thus efficiently closing the recycling loop. Such projects are: the reBox Project in partnership with Thailand Post, the Old Paper for New Paper Exchange Program, the Bring Paper Home Project in cooperation with government agencies and private companies, and the Pack back Project in collaboration with over 90 public and private organizations. In 2024, these efforts resulted in the recycling of 101 tons of waste paper.

SCGP also promotes sustainable waste management community models through educational activities and has been working to replicate the success of the Zero-Waste Community Projects across Ratchaburi, Kanchanaburi, Prachinburi, and Khon Kaen. As of 2024, a total of 106 communities joined the project, with 358 tons of waste reduced, generating a combined income of 1.4 million baht for participating communities.

99.7%
Percentage of reusable, recyclable or decomposable packaging in the packaging portfolio, with a target of reaching 100% by 2030.