Climate Resilience
Climate Resilience
Climate change has brought about environmental crises and impacted to business and industry. SCGP remains firmly committed to its 2050 Net Zero emission goal by prioritizing clean energy sourcing to substitute fossil fuels, develop energy efficiency technology, reduce GHG emissions while implementing climate resilience strategy align with the Science Based Target to ensure meeting the target on the principle of public-private sector collaboration for monitoring and evaluation of possible risks.
Risks
Opportunity
Management Strategies
- Improving energy efficiency through the adoption of best available technologies.
- Increasing the use of renewable energy and clean energy sources.
- Developing low-carbon products based on circular economy principles.
- Exploring Carbon Capture, Utilization, and Storage (CCUS) technologies.
- Supporting and participating in forest conservation and ecosystem restoration for biodiversity and as carbon dioxide sinks.
Net Zero Pathway (GHG scope1+2)
In 2021, SCGP revised its base year GHG emission to include abroad operation facilities of 2.07 million tonCO2e resulting the total GHG emission of both Thailand and abroad to be 4.99 million tonCO2e
In 2023, SCGP set a new target to increase its greenhouse gas emissions reduction from 20% to 25% by 2030 compared to the base year of 2020 (4.99 million tons CO2e) and aims to achieve Net-Zero greenhouse gas emissions by reducing 100% of GHG scope1 and scope2 by 2050
In 2025, SCGP set a new target to reduce scope 3 greenhouse gas emissions by 25% by 2030 compared to the base year of 2024 and also re-submitted commitment letter to Science Based Target Initiative (SBTi) (including GHG scope 1, 2 and 3) and we have first validation on May 27th, 2025.
For its long-term target, SCGP aims to reduce Scope 1 and 2 greenhouse gas emissions by 95%, and Scope 3 emissions by 90%. To address the remaining emissions, the company plans to implement carbon offset measures approximately 5–10% through Natural Climate Solutions and Carbon Capture, Utilization and Storage (CCUS) technology, in order to achieve Net Zero by 2050.
Strategy
By using the best available technologies
By increasing the share of biomass and renewable energy
By innovating the low - carbon products based on the principles of circular economy across value chain
By networking with national and international to scale up carbon capture, utilization and storage (CCUS) technologies
By collaborating with communities and authorities for reforestation and rehabilitation as carbon sink
By Internal Carbon Pricing : ICP to enhance greenhouse gas emissions reduction within the organization.
on energy conservation and climate resilience among employees and contractors.
GHG Roadmap
- Announced Sustainability Goals.
- Achieved the goal of GHG Emission Reduction 12.8% from the reduction target of 10% compared with Business as usual (BAU) at the base year of 2007
- Announced Targets
- Net Zero by 2050
- Reduce greenhouse gas emission 25% compared with the base year of 2020 both Thailand and abroad at the base year of 2007
- Set Internal Carbon Pricing: ICP
- Task Force on Climate - RelatedFinancial Disclosure(TCFD)
- Increase to use of renewable energy to 24.3%
- Report on greenhouse gas emissions scope 3.
- Joined the Thailand Carbon Neutral Network (TCNN) as a Climate Action Leading Organization
- Achieve the goal of :
- Energy consumption reduction 13% by 2025 compared with base year 2007
- Greenhouse gas emission reduction 25% compared with base year of 2020 both Thailand and abroad
- Using biomass fuel and natural gas-boiler technology to generate electricity
- Improving :
- Biomass quality by adopting Torrefaction Technology
- Improve energy efficiency by expanding the installation of Turbo blowers at a Paper machine
- Increase the proportion of renewable energy use
- Achieve Net Zero
- Carbon offset by
- Natural Climate Solution: NCS
- Carbon Capture, Utilization and Storage: CCUS
Target
by 2025
by 2030
by 2050
by 2030
Note: compared with the base year 2020 both Thailand and abroad
2024 Performance
(Target 10% GHG emissions reduction)
GHG Performance
Total GHG emissions
GHG emissions Scope 1
GHG emissions Scope 2 (Market-based vs Location-based)
Total GHG emission Intensity (Scope1 and 2)
GHG emissions Scope 3 (Covering 15 categories)
Note :
- In 2022, the data is collected from Thailand companies and estimate to abroad companies
- In 2023, the data is collected from Thailand and abroad companies and increased category 2, 5 and 10. The data in the table includes category 2, which was be calculated and added data from SCGP sustainability Report 2023
- In 2024, the data show an increase of 554,894 tCO2 from the new M&P.
Energy Consumption Performance
Energy Consumption
Energy Consumption Intensity
Non Renewable Energy Consumption
Renewable Energy Consumption
Electricity consumption
Alternative Fuel
Renewable Energy
Note:
- Data of 2019, only Thailand operation performance
- In 2020, began to include GHG emissions and Energy consumptions performance of Thailand and abroad companies
Highlight Activities
As part of our Climate Transition Action Plan, we are switching more of our energy to renewables and using AI & Machine learning to improve energy efficiency by the following 4 strategies.
1. Switching to renewable fuel
We use renewable fuel from sustainable biofuels, which are biological material waste from own operations, such as biogas, sludge, black liquor, bark, and wood chips (FSC certified). Other biomass sources include agricultural waste. This ensures that the biofuels we use do not lead to further deforestation and provide clear greenhouse gas savings across the entire lifecycle.
% Biomass by heat SCGP
Biogas usage (GJ)
% Alternative Fuel
In addition, we want to support renewable energy generation in the areas in which we operate and so where we can such as Bien Hoa Packaging Joint Stock Company (Vietnam) in SCGP contracted local supplier to produce steam 23,336 GJ from biomass fuel.
2. Maximizing Solar Energy
We have continued to increase our capacity from solar installations, with our own investments totaling 63 megawatts peak across 27 locations in Thailand and Vietnam, we have been able to make a positive impact on the environment by reducing greenhouse gas emissions by 51,497 tCO2 per year and we have been able to save 188 million baht annually.
Additionally solar energy projects in Indonesia and Malaysia are scheduled to commence operation in 2025
Capacity Installed Solar Power (By own investment)
3. Optimizing energy consumption through AI & Machine learning
Solutions
Develop machine learning models ( >10 years historical process data) to predict and optimize machine operation, aiming to maximize energy efficiency on the supply side, and minimize steam consumption on the demand side.
- Power Plant optimization
- Energy Common Platform
- Steam consumption optimization
In addition, SCGP has expanded its energy efficiency enhancement initiatives to various plants both in Thailand and overseas. For instance, Turbo Vacuum Pumps have been deployed at several facilities, including United Pulp and Paper Co., Inc. in the Philippines, Vina Kraft Paper Co., Ltd. in Vietnam, and Thai Cane Paper Public Company Limited in Thailand and implementations are complemented by the integration of a Real-time Performance Monitoring & Control Platform (RMC), aimed at reducing steam consumption in the paper production process. Altogether, these energy efficiency projects have resulted in a total energy reduction of 464,000 GJ, a greenhouse gas emission reduction of 68,000 tCO2e, and an estimated cost saving of 293 million THB.
Energy Consumption Intensity
4. Transitioning to Electrification
SCGP’s Electrification Strategy replaces fossil fuel-based thermal energy with electricity, reducing Scope 1 emissions by eliminating coal and oil combustion in power plants. This shift increases Scope 2 emissions because more electricity is purchased from Thailand’s grid, which primarily relies on natural gas and renewables—both cleaner than coal—making the transition a net positive for decarbonization. Electrification lowers fossil fuel dependency, aligns with SCGP’s net-zero roadmap, and enables future integration of renewable power as the grid decarbonizes.
Total GHG (Scope 1 and 2) Intensity
Percent coverage of Energy Transition Program by business unit
Carbon sequestration by Natural Climate Solutions
In 2024, SCGP planted 66,985 trees on company- owned and concession land, bringing the cumulative total since 2020 to 2,350,269 trees. Additionally, Siam Forestry Company Limited in collaboration with CERT+ has used satellites and Al in calculating technology to calculate the carbon dioxide sequestered in its economic forests. In 2024, SCGP received certification for 66,621 rai of plantation land, which has the capacity to sequester 270,828 tons of carbon dioxide equivalent. This certification was issued by SGS (Thailand) Limited.
CCUS technology
Technology for Direct CO2 Capture from Lime Kiln to Produce CaCO3 for Use in the Paper Manufacturing Process Can Reduce Greenhouse Gas Emissions by 5,700 tCO2/year
Internal Carbon Pricing
In 2024, SCGP has 4 projects (including solar cell project and modified boiler) have been supported by ICP, with a total investment of 660 million baht. These projects can reduce greenhouse gas emissions by a total of 184,568 tons of carbon dioxide equivalent per year.
| Year | Detail | Investment (Million Baht) | GHG emissions reduction (tCO2e/year) |
|---|---|---|---|
| 2021 | Solar cell Projects | 166 | 5,541 |
| 2022 | Solar cell Projects | 240 | 7,547 |
| 2023 | Solar cell Projects & Modified Boiler | 373 | 68,597 |
| 2024 | Solar cell Projects & Modified Boiler | 660 | 184,568 |
Currently (2021-2024), we have a total 16 projects have been supported by ICP, with a total investment of 1,439 million baht. These projects can reduce greenhouse gas emissions by a total of 266,253 tons of carbon dioxide equivalent per year.
Remark:
- Internal carbon price for the years 2022-2024 with a maximum value of 25 USD/tCO2e
- Modified boiler to increase biomass fuel usage instead of fossil fuel.
Boarding Pass Program
Every SCGP employee has a responsibility to learn, enhance their capabilities, and develop themselves to promote understanding and foster the concept of sustainable development in the organization, encompassing Environment, Social, and Governance (ESG) principles which is a compulsory course in SCGP Boarding Pass Program.
Building awareness of climate change and carbon footprint for 156 sales and marketing employees and 112 procurement employees
Collaboration with peers in Pulp and Paper industry
SCGP has collaborated with the Thai Pulp and Paper Industry Association to develop GHG reduction roadmap for Thailand pulp and paper industry, in order to support and promote Thailand's policy in achieving Carbon Neutrality by 2050 and Net zero by 2065. This collaboration demonstrates SCGP's commitment to being involved in addressing environmental issues and supporting the sustainable development of the country.
Thailand has developed the Sustainable Taxonomy Framework (Thailand Taxonomy) with the objective of categorizing environmentally friendly activities. It focuses on reducing the disparities in the capabilities of different sectors in transitioning towards environmental sustainability. The primary objective is to mitigate climate change, and the framework considers transparent conditions and indicators that align with the initial status and adaptability of businesses in Thailand.
Thailand Taxonomy Phase 1 was announced in June 2023 and focuses on the economic activities to achieve the climate change mitigation objectives. especially in the energy and transportation sectors. Phase 2 expected announce by 2025 and will be focused on the Manufacturing sector, Agriculture sector, Real estate and Construction sector and Waste Management sector.
However, SCGP voluntarily maps our activities using its definition screening criteria for eligibility and alignment with the EU Taxonomy at the activity level before Thailand announced full implementation.
SCGP has disclosed information through the Carbon Disclosure Project (CDP), an organization that assesses and reports data related to climate change, water management, and forest management. We believes that such disclosure of information supports the development and improvement of sustainable operational processes and helps organizations meet the needs of stakeholders. Additionally, it promotes transparency in the organization's operations.