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www.nia.or.th

Tanasak Sakariganon Managing Director , Siam Sanitary Ware Co., Ltd. Chairman, SCG eco value Committee

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SCG Overview  Historical roots in producing Cement and expanded to

Petrochemicals, Paper & Packaging, Building Products, and Distribution.

 Listed on the Stock Exchange of Thailand since 1976.  Total employees of 51,100 persons within the ASEAN region

(31st December 2014).

Core Business Units: SCG Cement - Building Materials

SCG Chemicals

SCG Packaging

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SCG Business Philosophy Adherence to Fairness ตัง้ มัน ่ ในความเป็ นธรรม Dedication to Excellence มุงมั ่ ในความเป็ นเลิศ ่ น

THE 4 CORE VALUES

Believe in the Value of the Individual เชือ ่ มัน ่ ในคุณคาของคน ่ Concern for Social Responsibility ถือมัน ่ ในความรับผิดชอบตอสั ่ งคม

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SCG Vision BUSINESS

ดาเนินธุรกิจดวยความสมดุ ลทัง้ ดาน ้ ้ เศรษฐกิจ สั งคม และ สิ่ งแวดลอม ้ ภายใต้ หลักธรรมาภิบาล เพือ ่ ความยัง่ ยืน

Environment & Society

การกากับด ูแล

Creating value for our customers, employees, and all other stakeholders.

เศรษฐกิจ

สิ่งแวดล้อม

สังคม

Contributing to the sustainable progress of ASEAN and the local communities where we operate.

SCG is an ASEAN Sustainable Business Leader SCG will be well recognized as an innovative workplace of choice, and a role model in corporate governance and

sustainable development.

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Stronger Environmental and Social Challenges Existing Challenges

Additional Challenges

Volatile Market

Resource Scarcity

Fierce Competition

Doubling Urbanization

Fluctuant Currency

Shifting Customer Behaviors   

Cost Competition

Greener Transparent Governance Sincere Social Responsibility

License to Operate

Compliance

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3 Driving Stages to Create Sustainable Business Value Creation Voluntary

Customer

World Regulations Investor

Compliance

Institutes

Regional Regulations

Society Standards

Standards

Associations

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Supply Chain

Why Green Product?

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71% of Consumers Think Green When Purchasing up from 66 % in 2008

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89 % of Customers Surveyed Say *

Products with Environmental Benefits Meet Long-Term Market Need

* In April 2010, DuPont surveyed 800 customers around the world 9

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Why SCG eco value?

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Environmental Labeling Type I (ISO 14024): Seal of approval-compliance approval

Carbon Reduction Label Environmental Choice (Thailand) (Australia)

Type II (ISO 14021) Self-declaration of commitment to the environment

Type III (ISO 14025): Report card-verification and disclosure of quantitative environmental impact data (base on full LCA)

Carbon Footprint Label (Thailand)

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Sustainability Leader & Marketing Tool & Brand Endorsement

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What is SCG eco value?

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SCG...commits to innovate

environmentally-friendly products and services under our ‘SCG eco value’ label

‘SCG eco value’ label is granted to products and services of SCG with exceptional processes that minimize the effect on the environment in accordance with

ISO 14021 and in combination with the needs of stakeholders and takes into account the impacts of product life cycle.

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SCG eco value

...Reliable standard… All products and services that will be endorsed by SCG eco value Label required to be approved and certified by the Technical Team of SCG. In general, they need to at least meet standard of 3rd party eco label for each product category i.e. Thailand Green Label, Carbon Reduction Label. Or its green features need to be superior to other products available in the market)

Green Label Thailand

Carbon Reduction Label

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eco = ecology + economy

A combination of Ecology and Economy which means the right balance of environment, society and economies that is sustained and grow together.

value

Values that consumer, society and the environment will gain from developing innovative products and services.

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SCG eco value Products with environmentally-friendly Process manufacturing processes or design.

Use

Products with minimize environmental impact while usage .

SCG eco value criteria; 1. 2. 3. 4. 5. 6. 7. 8.

Designed for Disassembly Reduce Resource Use Renewable materials Recovered Energy Renewable energy Reduce Energy Consumption Reduce Water Consumption Ergonomic Product

9. 10. 11. 12. 13. 14. 15.

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Health/Hygiene Extended Life Product Reusable & Refillable Waste Reduction Greenhouse Gas Reduction Recyclable or Recycled Content Compostable or Degradable

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Self- declaration Process Business Unit

Technical Team

Brand Management Office

SCG Eco Product Committee

Identify Environmental attribute

Consider & Certify

SCG eco value Product

Approve Message about environmental attribute

Register Product in the

SCG eco value Database * Certificate is valid for 3 years 18 18

Now, there are 86 SCG eco value products & services

‘In 2014, SCG had sales volume from SCG eco value products and services amounting to 31% of total revenue from sales.’

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eco value products - Example

Eco Process: Recover Energy & Greenhouse Gas Reduction

Eco Process: Recycle Content

Eco Use: Reduce Energy Consumption

Eco Use: Compostable

Eco Use: Renewable Energy Eco Process: Recycle Content

Eco Use: Extended Life Product

Eco Use: Reduce Water Consumption

Eco Use: Health Eco Process: Reduce Resource Use

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TraChang Portland Cement Type I (Grey cement) For structural work: • Eco process: GHG reduction, it can reduce CO2 emission in manufacturing process at least 50 kg/ton cement

TraChang Portland Pozzolan Cement For Saline Condition: • Eco process • Reduce resource use by 20% (by total weight) in manufacturing process • GHG reduction, it can reduce CO2 emission in manufacturing process at least 100 kg/ton cement

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TraChang Portland Cement – Marine Resistance: • Eco process: GHG reduction, it can reduce CO2 emission in manufacturing process at least 350 kg/ton cement. • Eco Use: Extended-life product, 2 times extended life product higher than other products in market.

TraChang Reflective Insulation: UltraKool Series • Eco process: made from recycled content, reduce using natural sand by 100% • Eco use: 37% reduce energy consumption from air conditioning.

TraChang Ceramic Roof Tiles: CeraFino Solar Tiles • Eco use: Renewable energy, this solar tile can generate electricity by solar cell attached on surface (15 watt per each tile) TraChang Thermal Insulation: • Eco process: made from recycled content, reduce using natural sand by 100%. • Eco use: reduce energy consumption from air conditioning by 45% (75 mm) and 47% (150 mm)

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TraChang Ventilation Roof System: • Eco use: Reduce energy consumption from air conditioning by 37% TraChang SmartBoard For Wall: • Eco Use: Reduce energy consumption from air conditioning by 27% due to its low thermal conductivity (K) compared to other materials e.g. real wood, brick, or gypsum. 23

TraChang SmartWood Shading Set

• Eco use: reduce energy consumption from air conditioning approximately 6%. This set can prevent heat from solar radiation entering into the house wall. This system can also enhance ventilation between wall & shading set, so that it can decrease heat absorbance of the house wall.

TraChang SmartWood

• Eco use: Extended life product because it’s 100% termite proof so that it contain superior durability compared to real wood.

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COTTO Eco Tile: ECO TOUCH & Eco Rockrete SERIES • Eco process: made from 60% recycled materials

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COTTO Eco Faucets for bathroom & kitchen • Eco use: with water flow rate less than 4.8 liters per minute, COTTO eco faucets can reduce water consumption 20% compared to other faucets that consume water volume not more than 6 liters per minute (at water pressure 1 Bar)

COTTO Dual Flush 3/4.5 liters • Eco use: reduce water consumption by 12.5% compared to general sanitary wares that consume water 3/6 liters.

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KEY BENEFITS

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It represents our SD policy and response to our SCG vision

It is consistent with the concept of our conglomerate business through the linkage of all BUs.

It solidifies and enhances SCG’s proactive, dynamic leadership, which will result in increasing brand admiration (Innovation & Sustainability).

It is used as a marketing tool for eco products of all BUs. 29

LESSON LEARN

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Brand Value

Accuracy & Transparency & Credibility

Knowledge & Understanding & Communication Business Opportunity

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