Stakeholder Engagement

SCG conducts business with integrity and a strong sense of social responsibility, emphasizing the creation of shared value between the company and all stakeholders for sustainable mutual benefits. Operations are governed by the Board of Directors in accordance with laws and regulations, and adherence to SCG Corporate Governance Guidelines, SCG Sustainable Development Guidelines, SCG Code of Conduct, and other relevant policies to ensures that stakeholders’ rights are protected and treated fairly.

Importance of Stakeholders

Stakeholders play a crucial role in SCG’s success across all aspects of its operations. Therefore, SCG is committed to systematically managing and engaging stakeholders based on the principles of fairness, transparency, and participation. SCG respects the rights of all stakeholder groups, actively listens to their opinions and concerns, and fosters comprehensive and constructive engagement.

To ensure effective stakeholder engagement, SCG has assigned the department that is responsible for the respective stakeholder group for direct stakeholder engagement and has defined clear guidelines to build trust and long-term shared value between the company and its stakeholders.

Stakeholder Management Approach and Standards

Since different stakeholder groups have varying expectations and levels of impact from SCG’s operations, SCG has established a Stakeholder Engagement Policy, which is continuously reviewed and improved to ensure that SCG’s operations appropriately address the needs of all stakeholder groups.

In 2020, SCG developed the SCG Guidance for Stakeholder Engagement based on the AA1000 Stakeholder Engagement Standard (AA1000SES) 2015, an internationally recognized framework. This Guidance serves as a guide for employees and practitioners of SCG and subsidiaries to understand different perspectives, expectations, and attitudes, while also fostering an effective engagement process that creates shared value between SCG and its stakeholders.

Stakeholder Engagement Process

SCG follows a structured process to identify, analyze, and prioritize stakeholders using criteria aligned with the business context.

  1. Stakeholder Identification – SCG categorizes stakeholders into 12 key groups:
    • Shareholders
    • Employees
    • Customers
    • Suppliers
    • Business Partners
    • Investors
    • Creditors
    • Communities
    • Government Agencies
    • Media
    • Civil Society/Academics/Thought Leaders
    • Competitors
  2. Impact and Expectation Analysis – Assessing the level of impact on each stakeholder group and their expectations from SCG to determine appropriate engagement strategies.
  3. Stakeholder Engagement Strategy Development – Planning and implementing communication and engagement approaches tailored to each stakeholder group.
  4. Monitoring and Evaluation – Tracking engagement outcomes and incorporating feedback to continuously improve policies and practices for greater effectiveness.

Alignment with Sustainable Development

SCG’s stakeholder engagement process is a core component of its sustainability strategy, aligning with the Double Materiality concept, which considers:

  • Impact on Society and the Environment – Assessing how SCG’s operations may affect communities and the environment.
  • Impact on Business Value – Evaluating how SCG’s sustainability efforts influence its competitiveness, risks, and growth opportunities.

Through this assessment, SCG can identify key sustainability issues (Impact Materiality) and integrate them into its business strategy. The findings are also reported to SCG’s Sustainable Development Committee to ensure that the company’s operations align with the expectations and needs of all stakeholders.

Building Relationships with Key Stakeholders

Key stakeholder engagement 2024-EN

Contact Channels for Stakeholders

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Stakeholder Engagement Policy
SCG Guidance for Stakeholders Engagement