> E: Environmental

As the reality of climate change becomes increasingly apparent, we are all conscious that humanity is currently consuming resources at a rate beyond the level our planet can sustain in the long-term. Although cement and concrete are, to date, among the lowest carbon-intensive building materials per unit of strength and per unit of cost, the concrete industry must play its part in continuously reducing the carbon intensity of the built environment.

Therefore, maintaining the balance between productions and caring for the environment is our important mission statement. Toward that end of creating confidence in our management of the environment, Siam City Cement Public Company Limited has adopted the ISO14001: Environmental Management System as the organization’s guideline in the management of the environment.

Inspired by the promise of a more sustainable and prosperous future for all, SCCC Group has devised the Sustainability Ambition 2030, in which Thailand Cement Business has shared the same ambition. However, we develop our ambitious targets based on business operations in Thailand, in alignment with all business units across the Group, to ensure that as a Group, we can really make positive impacts to the environment.

Climate & Energy

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.Thailand Cement Business, in alignment with SCCC Group, acknowledges the importance of this problem as well as the need to reduce carbon emission by developing a climate and energy ambition with achievable targets and initiatives.

Targets

(Scope 1) Reduce CO2 emissions by a further 25% to < 470 kg net CO2/ton from our 2020 baseline.
(Scope 2) Reduce electricity consumption by 50%
(Scope 3) under study

Key Initiatives

Cement Portfolio, Clinker Factor Initiatives

Clinker Factor (CF) of INSEE Group has been reduced by 2.4 points compared to 2023 and 4.1 points compared to 2020 baseline. Progress has been made in INSEE Cement Thailand towards converting from Ordinary Portland Cement (OPC) to a lower carbon cement by the implementation of a separate limestone grinding system and the use of new grinding aids to continue the reduction of clinker in cements INSEE Vietnam also plays importance role in clinker factor reduction of INSEE Group via clinker reactivity improvements and product optimization through the application of new grinding aid technologies. The clinker factor of the main production Plant at Hon Chong was reduced by 3 percent from 2023 to 2024 and more than 7 percent since 2020. Vietnam continues to demonstrate the lowest CF in the Group, while maintaining the cement quality and meeting all customer expectations for cement performance. For INSEE Lanka, a 0.6 point clinker factor reduction was achieved via almost 100 percent transition to a Portland Composite Cement (PCC) using fly ash and slag. High reactivity of produced and imported clinker is a key part of that success. Chip Mong INSEE Cement Corporation (CMIC) increased limestone utilization in both bulk and bag cement with the help of good strength enhancing grinding aids. Together with product portfolio optimization, these helped achieve a 2.4 point CF reduction from 2023 to 2024. The operations continue to focus on further clinker factor reduction, by focusing on clinker reactivity improvements, the application of new grinding aid technologies and the use of more supplementary cementitious materials in their products.

Thermal Energy Initiatives

Significant increases in Thermal Substitution Rate (TSR) were also achieved in INSEE Group this year, with total TSR increasing from 21 percent in 2023 to 28 percent in 2024, through the increased use of alternative fuels to replace coal. Alternative Fuel (AF) streams are typically comprised of waste materials from other Industries which are carefully managed through a variety of pre-processing quality control steps so they can be safely disposed of in the kiln system to recover their calorific value and replace coal. Biomass utilization which is considered as climate neutral is also increasing. Thailand has made substantial improvements in TSR increasing from 11 percent (2022) to 17 percent (2023) and to 24 percent in 2024. Given the relative size of the Thailand operations in comparison to the overall Group, this represents a significant step change in terms of coal replacement and CO2 reduction. Improvements have included a new sourcing strategy to increase and secure AF supply, improvements in preprocessing and kiln co-processing and AF dosing accuracy have been key initiatives to enable this improvement. Substantial progress has continued at Vietnam, with alternative fuels exceeding 40 percent coal replacement in 2024 due to equipment upgrade projects and stable kin operations along the year. Relocation of AF feeding systems to optimize AF combustion have led to TSR of > 30 percent at Cambodia. An aggressive effort to reduce AF moisture content via solar drying efficiency improvements to reduce the moisture content of the AF streams have enabled the Sri Lanka operations to sustain TSR at > 40 percent. With our TSR ambition 2030 of achieving the new Scope 1 target of 40 percent TSR across the INSEE Group, further operational efficiencies and new technologies are being actively considered and implemented

Electrical Energy Initiatives

Electrical energy plays an important role in CO2 Scope 2 emission and SCCC Thailand has developed a solar project and ground mounted solar PV project to enable the further use of renewable energy in their operations. In 2024, they are starting the first phase construction of a combined solar farm and solar rooftop facility which will reduce SCCC’s CO2 emission up to 54,000 ton per year and mitigate electricity cost increases.

Circular Economy

INSEE is fully committed to using more alternative raw materials and fuels where possible. Discarded materials and industrial waste are exciting options for the development of more environmentally friendly products and solutions.

Targets

We have elevated our 2030 target for the use of waste derived fuels in our cement kilns to over 1.4 million tons, with a Group-wide Thermal Substitution Rate (TSR) goal set now at 40 percent
An aggressive new target for the use of By-Products (Fly ash, Slag, Gypsum etc) has been set at over 1.7 million tons in our operations, with a revised Group-wide Clinker Factor (CF) target of 65 percent

Key Initiatives

Project 1: Driving Circularity Through Partnerships

INSEE Ecocycle supports Thailand’s circular economy through collaborations with government, academia and private sector partners. Key initiatives include establishing drop-off points for materials such as single-use plastics, bras and lingerie, as well as spearheading innovative landfill mining projects to recover valuable resources. These actions align with our commitment to assisting sustainability partners in achieving their environmental and plastic neutrality goals. Additionally, INSEE Ecocycle participated in the "Benefits and Best Practices on Co-Processing in Cement Kilns" session at the Workshop on Waste Management according to the Circular Economy with the Advantage of Co-Processing in Cement Kilns and Ocean Plastic Turned into an Opportunity in Circular Economy (OPTOCE) workshop. This platform enabled knowledge sharing on sustainable waste management and showcased the pivotal role of co-processing in reducing environmental impacts and promoting circular economy principles. For five consecutive years, INSEE Ecocycle has also been entrusted with the environmentally responsible destruction of counterfeit goods. By ensuring these items are safely and sustainably disposed of, we help protect intellectual property rights while minimizing environmental impact. Through these impactful projects and engagements, INSEE Ecocycle reinforces its commitment to innovation, resource recovery and sustainability leadership in Thailand.

Project 2: Sustainable Industrial Services and Innovative Solutions

As part of our circular economy initiatives, INSEE Ecocycle partners with industry leaders to support their sustainability goals and circular economy targets. Our innovative solutions focus on reducing environmental impact while ensuring operational efficiency and safety. Key innovations include sustainable cleaning solutions for decontaminating oil and gas infrastructure, which minimize waste generation and enhance workplace safety. For example, our robotic tank cleaning technology, featuring advanced crawler robots, eliminates the need for human entry into hazardous environments, significantly enhancing safety while reducing waste and environmental impact. In addition to our work on handling decommissioned assets, electromotive cleaning is a novel process developed through a partnership between Chevron and INSEE Ecocycle to clean subsea pipelines and other assets requiring decommissioning. This electromotive process offers numerous advantages over conventional methods, enabling faster treatment of pipeline bundles, which improves efficiency and reduces costs. Furthermore, it generates significantly less liquid waste, minimizing environmental impact and reducing risks to workers. Together with Chevron, we have created a sustainable solution for cleaning retired assets, bringing benefits to the oil and gas industry, the environment and society, both in Thailand and worldwide. These cutting-edge services align with our commitment to resource efficiency, waste minimization and sustainable industrial practices within the circular economy framework.

Biodiversity and Water

Biodiversity is essential for ensuring minimal impacts of our quarrying and mining activities on the planetary ecosystem. As the planet is very scarce on clean, palatable, drinkable water, we must play our part in preserving as much water as possible, especially the water usage in manufacturing our products.

Targets

Assure net-positive impacts on biodiversity
Lower water consumption (by > -20%) with enhanced use of surface water (to > +40% of all water used)

Key Initiatives

Water Metering System Improvement Project
The Group has invested in upgrading its water metering system by introducing Variable Speed Drives (VSD) to improve water flow and reduce leakage. Additionally, a mobile application has been developed for recording water meter readings, allowing for accurate tracking of water consumption. This system enhances monitoring efficiency, ensures precise data collection, and enables effective management of water resource usage across operations.

Water Leakage Reporting Project
The Group has implemented a water leakage reporting initiative within its plants, encouraging employees and contractors to actively identify and report any water leaks in their work areas. This proactive approach promotes early problem detection and rapid repair, while supporting efficient water use and reducing operational costs. The program is implemented across all cement operations in Thailand and other countries.

Surface Water Reservoir Project
The Group has constructed surface water reservoirs as backup sources, even though none of its operational sites are located in water-stressed areas. The project includes multiple locations: in Saraburi, Thailand — the Open Pit pond with a capacity of approximately 200,000 m³ and the P8 pond with a capacity of around 25,000 m³; in Vietnam — at the Cat Lai port and Hiep Phuoc plant; and in Sri Lanka — at the Puttalam plant. Water from these reservoirs is used for pollution control and production temperature regulation, reducing reliance on groundwater. This supports the Group’s Sustainable Development Goal 2030 target to increase surface water use to more than 45%.

Zero Discharge Project
The Group is committed to achieving complete elimination of wastewater discharge. Water used in production processes is fully treated and recycled within the facilities, resulting in zero discharge to external sources. In Vietnam, the Hon Chong plant operates a Waste Heat Recovery (WHR) water treatment system that treats and reuses approximately 10,000–15,000 m³ of water annually. Treated water from Hon Chong and Cat Lai facilities is also reused in other business operations within the Group.