Annual Report 2022

Moving forward
through volatility
and adversity

56-1 One Report

Annual Registration Statement/
Annual Report
3

Sustainable
Development
Environmental. Social. Governance.

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Sustainable Development

Report of the Sustainability

Steering Committee

Dear Shareholder, 2. INSEE See Beyond

The Sustainability Steering Committee (SSC) An engagement and communication tool of SCCC
comprises one director and four experienced Group’s Sustainability Ambition 2030, INSEE See
management level employees, and is chaired by Beyond showcases SCCC ambitions though
Mr. Aidan John Lynam, Director and Group CEO. well-illustrated case examples, carrying out our
pledge to make a positive impact on every
In 2022, the SSC continued its duties and community which we are engaged with.
responsibilities according to the Committee
Charter with a total of seven meetings conducted. 3. Memorandum of Understanding with IUCN
With strong commitment to supervise and
implement activities that aims at overseeing the The Memorandum of Understanding which the
actions to deliver SCCC Group’s Sustainability Company has signed with the International Union
Ambition 2030 which are Climate and Energy, for Conservation of Nature (IUCN) aims to focus on
Circular Economy, Biodiversity and Water, strengthening and enhancing collaboration
Community and Stakeholder Engagement, and between IUCN and SCCC Group for biodiversity
Occupational Health and Safety (OH&S), the SSC offsets to compensate for any unavoidable
has aligned and integrated management of impacts of SCCC Group’s quarrying and cement
sustainability into core business strategy and production processes in its plants in Thailand,
plans, with each CEO, Country Sustainability Vietnam, Cambodia, and Sri Lanka.
Coordinators, and Pillar Working Group member
responsible in the delivery of targets as committed In conclusion, the Sustainability Steering
in the roadmaps of each country. Committee continues to fulfil its duties in ensuring
effective ESG activities and governance to deliver
The key activities of the SSC in 2022 are earnestly on actions (and beyond mere words) on
summarized below. one of our Groups’ commitments which is ‘Caring
About our Future’.
1. Task Force on Climate-related Financial
Disclosure (TCFD)

The Company wishes to disclose information on

the financial implications of climate-related risks
and opportunities on our business. Therefore, Aidan John Lynam
following the principles of TCFD, the SSC has
conducted internal workshops which identifies (Mr. Aidan John Lynam)
opportunities to be taken and risks to be mitigated, Chairman of the Sustainability Steering Committee
relating to the impacts of climate change.

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Annual Report Siam City Cement Public Company Limited

Sustainable Development

Moving through volatility and adversity to a Sustainable Future

Inspite of all the volatility and inflationary pressures being faced, SCCC Group
is committed to continuing to take decisive actions to tackle climate change
and promote biodiversity, circular economy, zero harm in workplace, and
community engagement as promised in our Sustainability Ambition 2030.
This is embodied in one of our commitments, “Caring about our future”, and
we assure that our business leaders embed sustainability throughout our
business operations across the Group.

We also measure, track and report on our sustainability performance within

the reporting of key non-financial metrics and performance indicators in the
Annual Report in the areas of climate change, workplace safety, and workplace
inclusivity. The report has adopted the ‘GRI Standards’ developed by the
Global Reporting Initiative (GRI) and the GRI Index is included in our disclosure.

In addition, in 2022, we have further advanced our disclosures in line with

enhanced Stock Exchange of Thailand guidelines, Task Force on Climate-
related Financial Disclosures (TCFD) standards, and KPIs of Global Cement
and Concrete Association (GCCA).

Our environment management complies with ISO14001, within the scope of

the current standard ISO14001:2015 version covering all major processes of
the organization.

To deliver on this promise, we adhere to our Sustainable Development Policy

that sets standards for good corporate governance, as well as for creating
economic, environmental, and social value.

For more details on Sustainable Development Policy and Environment

Policy, see on the Company’s website at https://siamcitycement.com

1. SCCC Group Sustainability Ambition

In 2021, we have launched our Sustainability Ambition 2030 with three

basic pillars. These are Climate and Energy, Circular Economy, and
Biodiversity and Water. There are also two interconnecting themes which
form the baseline and heart of our operations respectively - Occupational
Health and Safety and our Community & Stakeholder Engagement.

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Sustainable Development

Sustainability Ambition 2030

Pillar 1: Climate & Energy Pillar 2: Circular Economy

Reduce our CO2 emissions to less than 530 kg Double our usage of waste derived fuels
net CO2/ton cementitious and raw materials in clinker production from
Reduce our specific electricity consumption Climate 0.5 million to >1.0 million tons
by >10 percent & Energy Increase byproducts absorption
Ensure at least 20 percent of electricity consumption (fly ash, slag) by >65 percent to >1.4 million tons
comes from alternative energy sources per annum

Community &
Stakeholder
Engagement
Pillar 3: Biodiversity & Water Theme 2:
Have a net-positive impact on biodiversity Community & Stakeholder engagement
preserve water in Company operations Biodiversity Circular Continue to proactively engage with our
& Water Economy communities and stakeholders

Occupational Health & Safety (OH&S)

Theme 1:
Occupational Health & Safety
Our ambition is Zero Harm by 2030

To ensure we adhere to and deliver on the Sustainability Ambition 2030, we

have already established a Sustainability Steering Committee comprising
top management executives of the Company. Our Board is updated regularly
on this committee’s activities. In addition to this, sustainability country
coordinators and working groups are assigned to define country specific
sustainability roadmaps and ensure progress is being made according to
defined annual targets.

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2. SCCC Group’s Value Chain Commitments

We integrate sustainability throughout our value chain (see the diagram below)
to ensure that we adhere to the highest standards of good governance while
reducing our environmental footprint wherever possible and optimizing our
production according to international best-practice standards. Throughout
our value chain, we adhere to our commitment to ensuring the health and
well-being of our workers, reducing our CO2 footprint, optimizing our energy
usage, having a net positive impact on biodiversity and water preservation,
and proactively engaging with our communities and other stakeholders.

Products that are efficient to apply and assemble Increasing material recovery and
Products that contribute to the lifecycle environmentally sound processing practices INSEE
performance of the buildings and structures they Highest standards in managing and safely
go into destroying hazardous materials
Training and support for masons and contractors INSEE Ecocycle
Partnering with
distributors and
retailers to
support their Partners
business
success Use Collection
Selling Analytics /
Preprocessing / Minimizing waste
Sorting going to landfills
Recycling Mining landfills to
Production and upcycling recover valuable
waste
Vigilance in
protecting the
health and safety of
workers
Positive impacts on Disposal
communities Energy recovery /
Virgin materials co-processing
Continuously
Increasing share of energy from
reducing CO2 Good quarrying practices,
Increasing upcycled and co-processed waste materials
intensity biodiversity protections, site
recycled materials Recovering waste energy in
remediation
Supporting partner production processes
Continuously expanding use of
circularization ambitions Increasing use of renewables
sustainable materials

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3. Sustainability Ambition Journey Internal and external engagement and

communication is foreseen as an important
3.1 Climate and Energy lever to develop consciousness about this
major engagement on which SCCC Group has
already embarked.

2030 SCCC Group climate and energy related

ambitions are:

The Global Cement and Concrete Association

(GCCA) scope 1 and scope 2 reporting protocols
are used to set targets and monitor results on
3.1.1 Ambition
a yearly basis.

Global warming is one of the most urgent

Scope 1: To reduce its CO2 emissions to less than
challenges the world is facing. If left unaddressed,
530 kg net CO2/ton cementitious materials. This
it will impact both our climate system and the
translates to a reduction of 30 percent from 1990
security of the population in general.
and 15 percent from 2020 baselines.

Risks are related to deregulation of land and

Scope 2: To reduce its CO2 emissions to less than
oceans temperatures; heat waves; drought; higher
37 kg net CO2/ton cementitious materials.
precipitation; and negative consequences across
This translates to a reduction of the specific
the food supply chain.
electricity consumption by 10 percent compared
to 2020 baselines and that at least 20 percent of
SCCC Group acknowledges the importance of its electricity consumption comes from alternative
this problem as well as the need to reduce carbon energy sources.
emission by developing a climate and energy
ambition with achievable targets and initiatives
3.1.2 Strategy
aligned with a 2°C pathway, according to the
IEA (International Energy Agency) technology
To achieve this ambition there are necessary step
road map for a low carbon transition in the
changes to bring to the Company cement product
cement industry.
portfolio in general and in the deployment of
alternative energy sources, thermal and electrical.
To reach this ambition, Group and country-specific
Efficiencies need to be improved to strengthen
climate and energy roadmaps with intermediate
the baseline and to reduce wasted energy along
targets have been established with corresponding
the production processes.
strategies and initiatives based on the IEA guidelines.

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Annual Report Siam City Cement Public Company Limited

Investments in new technologies are and will Energy intensity reduction initiatives;
play an important role along the years to achieve
this ambition. SCCC Group has significantly increased its
Thermal Substitution Rate (TSR) from 11 percent
3.1.3 Performance and Outlook in 2021 to 16 percent in 2022. Thailand has
progressed by 83 percent, Vietnam by 15 percent,
Cement product portfolio, clinker factor targets Cambodia by 44 percent while Sri Lanka suffered
and initiatives; a decrease by 9 percent due to the country
economic situation in the first part of the year.
SCCC Group will reduce its clinker factor to Improvements were possible through some
65 percent in 2030 from a 74 percent baseline in specific investment, increase in the waste supply
2020. The two main levers are the clinker factor and operational measures.
reduction and the alternative fuel usage. In 2022
SCCC Group achieved 607 kg net CO2/ton In achieving 16 percent TSR in 2022, SCCC Group
cementitious materials, a reduction of 3.7 percent is well on track to deliver its ambition of a minimum
compared to 2020 baseline and in the trajectory of 20 percent TSR) by 2030.
to the 2030 target of 530.
On the electrical energy side, Waste Heat
Product carbon intensity reduction initiatives; Recovery (WHR) systems have increased their
efficiencies to deliver 3 percent of electrical
Thailand’ focus is to reduce the share of Ordinary energy coming from kiln waste heat. Solar Photo
Portland Cement (OPC) in its portfolio promoting Voltaic projects have been prepared during 2022
the usage of composite cement with a lower and will be installed during 2023 in Sri Lanka and
clinker factor at same performance. A lower clinker Thailand. Solar energy will represent 3 percent of
factor equates to a lowered carbon intensity in the total SCCC Group electrical energy consumption
product. A sizeable investment realized during once implemented.
2022 now allows an important reduction during
2023. Vietnam has continued to operate with a low For more details on our Climate and Energy
clinker factor of less than 60 percent, whilst Performance, see our Sustainability
Sri Lanka did a significant clinker factor reduction Performance Index 2022 and on the
from 78 percent to 72 percent with the usage of Company’s website.
slag in the cement grinding process.

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3.1.4 Project Results in 2022

■ Palavi and Ruhunu Slag and Fly Ash Project in ■ Thi Vai Slag and Fly Ash Project in Vietnam
Sri Lanka

One of this project’s objective is to reduce clinker Another CO2 reduction project of the Group in
factor by using Granulated Blast Furnace Slag Vietnam aims to also reduce clinker factor by using
(GBFS) and Fly Ash, with investment of 994 mio Ground Granulated Blast Furnace Slag (GGBFS)
LKR. The construction phase is now completed and Fly Ash, enhanced with close collaboration
and now in operation. CO2 reduction target is with local slag generators. With investment of
70 kg CO2/ton cementitious reduction. 1.8 million USD, the project will deliver 19 kg CO2/ton
cementitious reduction.

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3.2 Circular Economy ash, slag etc., by around 65 percent to over 1.4
million tons of by-product use per annum to
Our SDG priorities produce our cementitious products.

3.2.2 Strategy

To reach this ambition, every SCCC Group

Operating companies is working towards road-
mapped targets for thermal substitution and
clinker factor reduction. These roadmaps are built
plant-by-plant and backed up by specific technical
and business actions to enable the consumption
3.2.1 Ambition of alternative fuel and obtain sources of alternative
materials. Further, we actively work with customers
With the rising global population, there is a greater and industry associations to increase the
need for natural resources compounded by the acceptance of hydraulic cements.
gradual degradation of the environment.
Recognizing the effects of global challenges, In our Ecocycle business, we obtain waste
SCCC strives to increase circularization in wider materials directly from industrial sources and from
economies to support customers and partners by post-consumer waste collectors. We work with
minimizing waste in construction and maximizing governments and municipalities to mine existing
the design life of buildings and infrastructure. landfills for high energy waste. We also work with
partners to develop new upcycling and recycling
Across the Group, our Ecocycle business provides technologies.
“peace of mind” waste management solutions to
industrial, consumer goods, and oil and gas 3.2.3 Performance and Outlook
companies, improving their environmental
footprint while simultaneously recovering energy
We have largely delivered on overall Group targets
and resources from their waste materials. We help
in 2022. Shifts in the mix of end-market demand
ensure that hazardous wastes are safely managed
toward large infrastructure projects (a segment in
and upcycled. We support our own and our
which acceptance of hydraulic, low-clinker
customers’ Zero Waste to Landfill commitments
cements is lower) affected progress, notably in
for general waste and help safeguard rivers and
Thailand. Going forward, however, we are
oceans from potential leakage of waste.
confident that increasing industry and government
acceptance of and support for new standards will
Our ambition is, by latest 2023, to double the use help us accelerate. Policies and programs such as
of waste-derived fuels and raw materials in clinker Thailand’s Bio-Circular-Green initiatives (BCG) are
production (from 0.5 million to >1.0 million tons) driving broad industry change while our direct
and increase the use of by-products such as fly efforts to change markets are paying off.

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Beyond Thailand we are also on track to deliver water and sanitation) for all and calls on us to take
improved clinker factor reductions and improving any action. We are committed to achieving our
the thermal substitution rates in our pyro-processes, ambition of reducing specific water consumption
thus steadily reducing the carbon intensity within by more than 20 percent and using more than 40
all of our product range. percent surface water collection by 2030.

For more details on our Circular Economy As a Company active in mining, we know that our
Performance, see our Sustainability activities have an impact on biodiversity.
Performance Index 2022 and on the Therefore, we strictly follow the mitigation
Company’s website. hierarchy of avoiding, minimizing, rehabilitating and
off-setting biodiversity impacts. In doing so, we
3.3 Biodiversity and Water aim for a Net Positive Impact (NPI) on biodiversity
by 2030. In this context, we are evaluating and
Our SDG priorities implementing nature-climate or nature-based
solutions (e.g. artificial reefs for marine habitat or
mangrove nurseries) which also contribute to the
climate and energy ambition.

3.3.2. Strategy

To reach the biodiversity net positive impact

ambition, we prioritize impact avoidance as the
most preferred option, followed by impact
3.3.1 Ambition mitigation and rehabilitation, and finally, once
these options have been exhausted, biodiversity
Water is embedded in all forms of developments. offsetting to cover any residual damage that
Water is often a scarce resource, while it is our cannot be otherwise addressed. During this
most precious natural resource and central to journey, we are challenged, guided and supported
sustainable development. Water is required to by experts from IUCN as we have a regional MOU,
support biodiversity including human beings. which is detailed out in country-specific
Without sufficient water, stresses on species agreements ensuring that the roadmaps are
increase driving global/local biodiversity losses. implemented, and local specificities considered
Biodiversity supports water and nutrient cycling in appropriately.
soils and therefore plants, including all food crops.
Together these processes control land erosion Each site has a water action plan. Among site
and regulate water quality and quantity. The United specific actions, it consists of more general
Nations (UN) has proposed 17 sustainable initiatives such as systematic measurement of our
development goals among which one of them is water consumption to ensure water conservation.
Goal 6 focusing on ensuring water security (clean To identify and track potential water loss as well as

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opportunities to optimize water consumption such discharging it outside. We keep increasing surface
as increasing equipment cooling efficiency, regular water usage by rainwater harvesting, maximizing
water balances are conducted by using the GCCA water usage and building new water open pits and
guideline and tools. Moreover, we keep collecting utilizing material for cement production. The
surface water by building more reservoirs (ponds quarterly Group meetings are as well used to share
and quarry dewatering) to make sure that we reach best practices and encourage peers to do more
>40 percent surface water usage by 2030. We will with regards to water preservation.
use internal benchmarking and industry leaders’
performance to continuously improve and For more details on our Biodiversity and Water
potentially go beyond the initial target. Performance, see our Sustainability Performance
Index 2022 and on the Company’s website.
3.3.3. Performance and Outlook
3.3.4 Lighthouse Project
In 2022, we continued to work with subject matter
experts to verify the baseline of our biodiversity ■ Water net positive (Chip Mong INSEE Cement
value, based on guidelines and tools issued by the Corporation, Cambodia)
GCCA (Global Cement and Concrete Association).
Based on this solid basis, the Biodiversity To achieve 100 percent surface water dependency
Management Plan (BMP) is developed and as Water Net Positive for water consumptions
adjusted (if needed) to ensure being on track for linked with biodiversity, our target is to increase
our NPI target. The BMP helps to seek on-site surface water storage for consumptions and
solutions by considering the impact of the operation as much as we could by constructing a
operation and designing subsequent restoration second large water catchment pond from 2023
and reclamation efforts for the greatest possible with estimated volume of about 40,000 cubic
biodiversity benefit while adopting compensatory meters per year. This is to preserve and sustain life
measures such as biodiversity offset programs. and protect groundwater from future events, which
may impact on the subsurface environment. Using
Stakeholders are involved at all stages as we are such natural infrastructure is one of the suitable
convinced that the long-term sustainability of all approaches to balance between biodiversity and
initiatives can only be achieved with appropriate water. As mentioned already, water is required to
partnerships. As such, in 2022 we executed the sustain biodiversity, and biodiversity supports the
regional MOU with IUCN and country specific water cycle. Hence, increasing water surface water
agreements have been renewed (e.g. in Sri Lanka). storage is an example of “Climate Proofing” to
collect runoff water (rainwater) for many purposes,
In 2022, we continued to optimize water including company operations and domestic use
consumption based on minimization of the total as climate change may pose serious impacts in
water withdrawal and water loss indicators. Also, many years ahead.
reused wastewater is treated to Waste Heat
Recovery (WHR) for water cooling instead of

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The main objectives are protecting the health of all

employees, contractors and the communities
where SCCC Group operates. Subsequently, this
involves reducing our targets for Lost Time Injury
Rate by at least 10 percent every year until we get
to zero harm, including zero fatalities and zero
permanent disabilities across SCCC Group by
2030.

Through pro-active safety leadership, we strive to

prevent all injuries and illnesses by providing a
safe and healthy workplace, safe systems of work,
all necessary safety equipment, training in safe
operating procedures and enforcement of best
practice safety regulations.

3.4 Occupational Health and Safety 3.4.2 Strategy

Our SDG priorities

Our Occupational Health and Safety (OH&S)
governance assures cascaded accountability
across the company, with clear KPIs, for Executive
Committee members in all countries, area owners,
managers, supervisors and frontline staff focusing
on:

■ The implementation and compliance to the

newly developed Group Safety Management
3.4.1 Ambition System

At Siam City Cement, our overriding safety ■ Auditing world class OH&S procedures across
objective has been and will always be Zero Harm to all SCCC Group businesses
Anyone. We view this as a foundational element of
our Sustainability Ambition 2030. ■ Applying practices which go beyond what is
legally required
It is our priority that every employee and
contractor in our business is treated as a valuable ■ Holding all leaders and managers accountable
and equal partner whose health and wellbeing is on all aspects of OH&S
prioritized, protected, and cared for.

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■ Applying visible and effective leadership With the high proportion of transportation
and supervision with all employees and associated with SCCC Group’s business, the topic
contractors of “Safety on the Road” has also been closely
addressed. Defensive driving courses and training
■ Providing regular health and wellbeing on vehicle inspections are regularly set up using
checks to ensure the fitness and welfare of all competent experts, including international
employees and contractors at all times and specialists, who cover topics related to driving
particularly during the COVID-19 outbreak standards and safe behavior.
Along with tracking and benchmarking with
For more details on our OH&S Performance,
external OH&S best practice, this strategy is
see our Sustainability Performance Index
complemented with capability building and
2022 and on the Company’s website.
training, with certification of qualified staff where
applicable across all aspects of the business.
For our Quality Environment OH&S
Peer-to-Peer auditing across the companies within
Management Policy, see on the Company’s
the Group supports cross challenging and learning
website
to reinforce a consistent implementation quality of
OH&S systems and processes.
3.5 Community and Stakeholder
3.4.3 Performance and Outlook Engagement

Ongoing COVID-19 pandemic in early 2022 has Our SDG priorities

still presented enormous challenges for our
businesses. Together with our employees we have
shaped and adapted to a «new normal» which
goes beyond all public health directives to protect
the health and mental wellbeing of all employees
and visitors to our sites and offices. We also
continued to support local communities with
financial aids, medical items, and necessity kits.

Our Group-wide OH&S workgroup, chaired by the

Group CEO, continues to oversee the improvement
of OH&S processes and systems, to keep up with
global best practices and to assure OH&S
capability building. Via a visible and felt leadership
approach, positive reinforcement is practiced, and
prompt consequence management is used to
address conduct breaches.

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3.5.1 Ambition

SCCC Group’s ambition is to proactively engage with its communities and

stakeholders.

SCCC Group has been continuously involving its stakeholders in reaching the
Sustainability Ambition 2030 as well as employees, suppliers and customers,
having a community and stakeholder engagement plan for all sites and
assessing the impact of the Sustainability Ambition and its community and
stakeholder engagement activities. The focus of community engagement
activities at SCCC Group are quality education be it as enterprise vocation
education programs or masons training which is an urgent need in the region
as well as capacity building in the areas of climate and energy, circular
economy, biodiversity and water or occupational health and safety.

SCCC Group will confirm its commitment to the Sustainability Ambition 2030
by joining the UN Global Compact (UNGC).

3.5.2 Strategy

Along the value chain, SCCC Group identifies the groups of stakeholders to
ensure the effectiveness of our business operations by placing high value on
information, suggestions and recommendations from key stakeholders.
We analyze obtained information to formulate our engagement strategy to
meet the requirements and expectations of stakeholders.

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The following table gives an overview of the engagement strategy with our
stakeholders:

Stakeholders Objective/Expectation Engagement Strategy

Employees  reate safe work environments

C ■ Develop leadership capabilities in supervisors to be more
and promote employee’s health attentive to subordinates
& wellbeing. Ensure equal
opportunities and offer learning ■ Promote engagement and two-way communications within the
and career development within the organization
workplace
■ Develop a safety culture in the workplace and build awareness
about the environmental impact of our business

■ Conduct employee engagement survey to regularly listen to

employees’ opinions

Customers Build and enhance long-term ■ Arrange regular meetings and customer visits physically and
relationships with customers virtually

■ Develop communication channels, online sales and support

system to increase speed, convenience and effectiveness to the
customer’s needs

■ Provide customer training and knowledge sharing

■ Constantly conduct surveys to listen to customer’s opinions for

continuous improvement

Communities Implement CSR-in-process to ■ Regularly conduct surveys of communities’ opinions

prevent or minimize
operational impact on the ■ Develop communication channels, both official and unofficial
communities, including
creating projects to continuously ■ Arrange factory visits for community leaders and the public
support the communities’
sustainable development the ■ Promote the community’s engagement and joint management in
so-called CSR-after-process some important projects

■ Create a fund for community development and environment,

as well as community advisory panels

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Stakeholders Ojective/Expectation Engagement Strategy

Goods & Service Promote good collaboration and ■ Announce and implement the Suppliers Code of Conduct
Suppliers mutual support to create business
opportunities and mutual growth ■ Announce and implement the Sustainable Procurement Policy
and Guidelines

■ Arrange meetings with suppliers to promote good

communications and training programs on various topics

Shareholders Carry out business operations ■ Organize the Annual Shareholders Meeting
with good corporate governance
while building sustainable ■ Regularly communicate and arrange field visits, and
progress for the organization participations in CSR and environmental projects

Government Strictly adhere to the laws and ■ Study legal implications and control all aspects of the business
Agencies & ensure good cooperation with to ensure legal compliance
Independent the government sector. Seek
Organizations opportunities for joint activities ■ Participate in meetings, seminars and forums with government
and projects which are beneficial agencies, as well as support official exhibitions and seminars
to the society and the nations
■ Support and participate in projects for society and the nation as
organized by the government sectors

Media Promote good understanding ■ Regularly provide the media with information, operational facts
of the company’s operations, and figures, and progress of major projects
including policies and major
projects so that the media is able ■ Regularly arrange opportunities for the media to meet senior
to communicate them accurately management, visit factory and participate in sustainable
to our stakeholders and the development activities
general public

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3.5.3 Performance and Outlook The Company’s technical specialists provide

training to engineers, architects and design
Customer Relationship Management professionals throughout Southeast Asia. This
presents private and public companies, and
The Company is committed to building and government agencies, with the latest information
enhancing long-term relationships with its on product design, project management, cost
customers and undertakes a wide range of optimization, testing and performance. A key pillar
activities to maximize customer satisfaction and of this professional education is the technical
ensure the sustainability of our customer’s performance, regulation and composition of new
businesses. Our activities include extensive materials to minimize environmental impact.
training and development of customers
throughout the value chain, providing our business In Sri Lanka, the Company’s i2i (innovation to
partners with the knowledge and expertise to industry) collaboration space provides knowledge
succeed. The Company routinely conducts sharing webinars, drawing on a global team of
surveys to measure customer satisfaction and industry professionals and academics to present
collects customer feedback that supports information on topics including construction
continuous improvement activities to strengthen practices, material innovation and sustainable
our relationships with them. building design. These seminars have run monthly
since the program’s inception in 2018.
Customer Training and Knowledge Sharing
The Company’s distribution and retail partners
The Company provides high-quality training to its receive continuous education and coaching. This
distribution partners, end users of its products, includes sales training and sales coaching for their
and to design and engineering professionals. representatives and business coaching for
managers. To further support their business
Training of masons and contractors is a priority growth, our in-field teams conduct product
across all our markets to maximize the success of demonstrations at our partners’ premises to
customers who use the Company’s products. supplement the advice they provide their
Dozens of events are held regularly across the customers.
Group to deliver product education, product
demonstrations, and to promote best practices in Customer Surveys and Continuous Improvement
construction. This includes training on health and
safety that was expanded to address personal The Company continues implementing customer
COVID-19 protection, as well as safety in surveys throughout its markets, using Net
workplace. For example, the safety syllabus has Promoter Score (NPS). NPS is an important
been designed and executed with support from measure of customer loyalty, satisfaction, and
Ministry of Labour in Thailand to give fundamental their purchasing experience. In 2022 NPS score for
safety lessons for local masons. SCCC businesses in Thailand was 72.7 percent

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against the target of 80 percent, and the results of 1.1 Recruitment and Screening: SCCC Group
SCCC’s Customer Satisfaction Index (CSI) of 91.9 provides the opportunities to all applicants
percent against the target of 90 percent, the regardless of gender, sexual orientation,
Company represents a strong commitment in disability, education, race, age or religion, with
customers’ experience development continuously. fair and transparent recruitment and screening
processes.
Employees
1.2 Learning and Development: Throughout their
In 2022, the Employee Engagement Survey employment, all employees are provided with
continues to be conducted to gather employee’s equal learning opportunities for self-development
voices and feedback across our Group companies. and are encouraged to have on-going
Impact plans have been defined and executed to conversation with their supervisor about their
enhance employee’s overall engagement. development journey.

Protection of Human Rights 1.3 Fair Compensation: SCCC Group ensures the
pay is attractive to key talents in the market
Guided by the United Nations Guiding Principles and employees are paid fairly and
(UNGP) on Human Rights, Siam City Cement and competitively.
its Group companies (SCCC Group) believes that
our business can thrive only when the human 1.4 Performance Assessment: SCCC Group is
rights are respected, advanced and upheld. And committed to driving employees to engage in a
that all relevant stakeholders uphold and comply performance-driven culture where fair and
to the same principles. transparent evaluation process are followed
strictly.
1. Protection of Employee Rights
1.5 Termination and Separation: SCCC Group
Our employee rights and their working conditions ensures fair and transparent employee
comply with labor standards of both domestic and termination/separation, with appropriate
international laws where SCCC Group operates. consideration of organizational needs,
This includes embedding in our work culture the transparent process, and legal compliance,
respect of rights inherent to all human beings, in line with the fair treatment and consistency
regardless of physical or mental status, race, of procedures.
nationality, country of origin, ethnicity, religion,
gender, language, age, skin color, education, social
status, culture, tradition or any other status as
specified by laws of each country.

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Annual Report Siam City Cement Public Company Limited

1.6 Culture of Diversity and Inclusion: SCCC Group continuously promotes an

inclusive work culture by including transparency, professional manner, and
equal opportunities in every activity we do, as well as provides the suitable
communication channels in order to cascade the Management’s direction,
and to continuously receive valuable feedbacks from employees.

2. Compliance and Consequence Management

The Board of Directors, the Management team and all employees, as well as
any individual or entity who represents or performs work on behalf of any
entity under SCCC Group shall ensure full compliance to the same principles.

Any party who violates the human rights shall be considered disciplinary
penalty as defined by SCCC Group and may be subject to legal punishment if
the act is against the law.

Gender Age
Proportion of employees by level (person) Year old

Senior Management
Management Personnel
5% 47% 45% 3%

115 31 819 525

Gen Z Gen Y Gen X Gen B

Operational Staff Up to 25 26 - 40 41 - 55 More than 56

1,409 132

Education Nationality
Person Person

3,002
1,098
1,056
19

6
417 460 3
1
High Vocational Bachelor Master Other Thai Asia Europe Australia North
Certificate Degree Degree America

Remark: 2022 information included only SCCC and its Subsidiary in Thailand

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Sustainable Development

Communities

All production units of companies within the Group

prepare community engagement plans on an
annual basis that cover both CSR-in-process and
CSR-after-process as well as promote effective
communication with the communities and allow
them to have a role in the planning and operating
community development activities supported by
the knowhow, expertise and resources of the
SCCC Group which can be important tools in the
support of the sustainable development of the
communities and the society.

For more details on our Community and

Stakeholder Engagement Performance, see
our Sustainability Performance Index 2022
and on the Company’s website.

For more details on our Corporate Social

Responsibility Policy, see on the Company’s
website.

3.5.4 Lighthouse Project

■ INSEE Green Heart Plus

INSEE Green Heart Plus is a project of Siam City

Cement Public Company Limited with focus on
engaging SCCC employees in Thailand with the of Thailand, bringing SCCC volunteers to clean
sustainability agenda of the Group. In 2022, we beaches of Prasae Estuary, Klang District, Rayong
partnered on ocean waste projects with INSEE province. Plastic collected from the activity goes
Ecocycle, Rayong Municipality Office and into RDF process and used in co-processing with
Department of Marine and Coastal Resources, coals in cement kilns. This is in line with INSEE
Ministry of Natural Resources and Environment, Ecocycle’s policy of waste management
together with our business partners i.e. Bank of sustainability, which also support SCCC Group
Ayudhya, Great Wall Motors and Tourism Authority Sustainability Ambition 2030 on Circular Economy.

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Annual Report Siam City Cement Public Company Limited

■ Reverse Osmosis Water Treatment for

schools in Puttalam, Sri Lanka

Siam City Cement (Lanka) Limited opened a Reverse

Osmosis (RO) water treatment plant to provide
clean drinking water as the water in the area
contains hard particles such as Calcium and
Magnesium deposits that impact human health.
The RO water treatment plant was identified by the
Company’s Community Advisory Panel as a
suitable CSR initiative to mark the Children’s Day
and benefit not only the school children, but the
teachers and their parents living in the
northwestern Eluwankulam, Puttalam district. This
is the 7th water treatment project offered by SCCC
Group to schools in Puttalam area.

Follow more community and stakeholder

engagement activities on the Facebook
Page: INSEE Care and INSEE Community
Team

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Sustainable Development

Task Force on Climate-related Financial Disclosures (TCFD)

International standard setters, regulators and investors call for TCFD

reporting, and more and more jurisdictions have TCFD-aligned reporting
requirements (e.g., Hong Kong, Japan, and Singapore in the APAC region).
2022 is the first year that we disclose TCFD-aligned information focusing on
governance, strategy, risk management as well as metrics and targets
(see table).

Governance around climate-related risks and opportunities

Disclosures Annual Report 2022

■ Board’s oversight of climate-related risks and opportunities p. 115

■ Management’s role in assessing and managing climate-related risks and opportunities p. 78, 118

Strategy: Impacts of climate-related risks and opportunities

Disclosures Annual Report 2022

■ Climate-related risks and opportunities SCCC Group have identified over the short, medium, p. 100-103
and long-term

■ Impact of climate-related risks and opportunities on SCCC Group’s business strategy and p. 100-102
financial planning
(Climate strategy and scenario planning)

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Annual Report Siam City Cement Public Company Limited

Risk Management: Identification, Assessment and Management of

Climate-Related Risks

Disclosures Annual Report 2022

■ SCCC Group’s processes for identifying and assessing climate-related risks p. 78, 100-103, 118

■ SCCC Group’s processes for managing climate-related risk p. 78, 103, 118

■ Integration of climate-related risks into SCCC Group’s overall risk management p. 78, 103, 118

Metrics and Targets used to assess and manage relevant climate-related risks

Disclosures Annual Report 2022

■ Climate-related metrics p. 79, 83

■ Disclosure of Scope 1 greenhouse gas emissions p. 80, 82

■ Climate-related targets p. 80, 82

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Sustainable Development

Strategy: Impacts of climate-related risks and opportunities

Global warming is one of the most urgent challenges the world is facing.
If left unaddressed, it will impact both our climate system and the security
of the population in general. Risks are related to deregulation of land and
oceans temperatures; heat waves; drought; higher precipitation; and negative
consequences across the food supply chain.

SCCC Group acknowledges the importance of this problem as well as the

need to reduce carbon emissions and has developed a climate and energy
ambition with Group and country-specific climate and energy roadmaps,
targets and initiatives (see page 80-84)

The most significant climate-related risks and impacts have been identified,
reviewed and prioritized during a workshop in October 2022 (see page
100-104). In line with the Business Risk Management the significance and
likelihood were assessed based on the financial and reputational impacts
considering different time horizons: short-term (until 2025), medium-term
(until 2030) and long-term (after 2030).

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Annual Report Siam City Cement Public Company Limited

Climate-related risks and opportunities assessment outcome

Risk Type Risks/ opportunity Time Description Impact

horizon (-) = negative impact
(+) = positive impact

Physical risks

Chronic & acute Changes in weather Medium Countries where SCCC - The impact of changing weather
patterns as well as Group operates are patterns could affect our assets,
increased severity and experiencing heavier production, and potentially the
frequency of extreme rainfall and flooding and market in some countries, increasing
events sea level rise. An increase operating costs and negatively
in severity and frequency impacting our revenue. There may be
of extreme events will a need to relocate at-risk assets
affect business operations
due to the proximity of + Mitigation action such as flooding,
some plants to shorelines and landslide protection could
and rivers as well as soil lead to an increased demand for
erosion risks cement and concrete and may open
up opportunities for more resilient
infrastructure projects

Transition risk

Technology Substitution of existing Medium/ The cement and concrete - New technologies could disrupt the
products and services long-term industry must play its part business of SCCC Group
with lower emission in reducing the carbon
options intensity of cement and - The demand and price for secondary
its associated semi- materials such as fly ash or alternative
finished products, clinker fuels and raw materials will increase
content must be reduced due to international demand for
continuously over time, greener cement
without compromising
excellent quality of our + Opportunities arise from the
products in performance improvement, substitution and
applications diversification of the product portfolio
to meet market demands and be a
first mover / industry leader

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Sustainable Development

Risk Type Risks/ opportunity Time Description Impact

horizon (-) = negative impact
(+) = positive impact

Reputation Changing public Medium In some countries of SCCC - Not responding to the demand for
perception of the Group’s operations there greener products combined with a
sector is a growing awareness curtailment of high-emission products
and sensitivity to climate could disrupt the business
change while in other
countries the focus on + Green ratings and labels have a
climate is not yet as positive impact in promoting green
relevant. Consequently, products and investing in R&D of new
some of our higher- green products
emission products could
be viewed negatively in
some markets

Policy & Legal Regulatory changes Short Regulatory changes are - New product specification and
being observed in some regulatory requirements have to be
countries such as the new met in order to secure funding from
Environmental Protection investors
Law and Extended
Producer Responsibility in + Anticipating new product
Vietnam specification provide the opportunity
to expand the product portfolio and
innovate new products ahead of peers

Market Pricing of GHG Medium A tax on GHG emissions is - Pricing of GHG emissions will raise the
emissions to be expected after 2025 cost of production & services
in some of the countries
where SCCC Group + New products and services with
operates lower CO2 emissions are seen as an
opportunity to differentiate SCCC
Group from other players

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Annual Report Siam City Cement Public Company Limited

Risk Management: Identification, The outputs of the risk workshop were approved
Management and Management of by the Sustainability Steering Committee and the
Board of Directors and are included in our risk and
Climate-Related Risks opportunity disclosure on page 100-102.

The Board of Directors of Siam City Cement Public

Group Management oversees risk management
Company Limited establishes a risk governance
through working committees such as Investment
structure by assuring risk assessment and
Committee, CAPEX Committee, Sustainability
management at all levels of the business, as well
Steering Committee. In addition, the Board of
as awareness of and action on both risks and
Directors and the Audit Committee set the agenda
opportunities as they arise.
for reviewing risk identification and management
of risk mitigation on a quarterly basis.
In 2022, we assessed climate-related risks and
opportunities with representatives from our
This process covers changes in market,
different operations in Thailand, Bangladesh,
competitive, operational, financial, and talent
Cambodia, Sri Lanka, and Vietnam. We conducted
conditions that potentially affect our performance
a workshop introducing TCFD and best practices
and growth—positively or negatively—and review
in the sector and asked all CEOs to assess
of actions to address changes. As of 2023 the
the likelihood and significance of physical and
SD coordinators in each country will review the
transitional risks at our different operations.
climate-related risks with the Business Risk
The risks were chosen based on the WBCSD
Management Champions on a quarterly basis and
Construction and Building Materials TCFD
the action plans defined for the most significant
Preparer Forum. The likelihood was thereby
climate-related risks will be reviewed at least on
equated to time horizons, i.e., a risk is very likely
a yearly basis.
if it occurs by 2025, potentially likely if it occurs
between 2025-2030, less likely if it occurs
after 2030.

Significance was assessed in line with our

Business Risk Management considering financial
and reputational impacts. The results of the survey
were then used for in-depth discussions in a
workshop with senior leaders and representatives
from Business Risk Management to identify
climate-related risks that could adversely impact
the Group as well as potential opportunities to
direct our business to a more sustainable future.

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Siam City Cement
Public Company Limited

Column Tower, 3rd, 10th, 12th Floor,

199 Ratchadapisek Rd., Kongtoey,
Bangkok, 10110, Thailand
Phone +66 2 797 7000
Fax +66 2 797 7001-2

www.siamcitycement.com