Forestry and Biodiversity

The conservation of biodiversity and ecosystems is a key sustainability goal for SCGP, emphasizing the achievement of “Net Positive Impact” (NPI), “No Net Loss” (NNL), and “Deforestation- and forest conversion- free (DCF)”  across all company operations in alignment with the Sustainable Development Goals.

In its commitment to the Nature Positive approach, SCGP aims to halt and reverse biodiversity loss by 2030 using a 2020 baseline, with a goal of full recovery by 2050.

Nature Positive by 2030

Nature Positive by 2030

SCGP is dedicated to the continuous conservation of forests and biodiversity through sustainable forest management, adhering to the Forest Stewardship Council™ (FSC™) standards. The company also focuses on forest carbon sinks according to Thailand’s greenhouse gas emission reduction standards, all in pursuit of a “Nature Positive” impact.

Management Practices

  • FSC™ Management Committee: Establishing policies, objectives, and targets for sustainable forest management, in alignment with FSC™ standards.
  • Nature Positive Committee: Supporting the Nature Positive target by forming the Nature Positive Committee in 2024 and assigning it to collaborate with the ESG Committee.

To facilitate effective implementation, SCGP aligns its efforts with the guidelines established by the Taskforce on Nature related Financial Disclosures (TNFD). Its parent company, SCG, is registered as an Early Adopter of TNFD. SCGP’s TNFD report can be downloaded as the link below.

Strategy
1
Management of sustainable biodiversity with universal indicators.
2
Serve as a model for preserving biodiversity for expanded results in other areas.
3
Foster community participation and stakeholder involvement to increase awareness and understanding of conservation.
4
Manage the utilization of forest community areas with community involvement and following the principles of community forestry.

Target

At least 10% of the FSC™-certified area must be designated as a biodiversity conservation area according to FSC™ standard since 2008
Deforestation- and forest conversion- free since 2017
across SCGP’s entire operations and supply chain. 

Performance 2025

SCGP allocated 11.2% of its FSC™-certified land, totaling 6,212 rai, for biodiversity conservation areas.
100% Deforestation- and forest conversion- free
Report on Taskforce on Nature-related Financial Disclosures (TNFD)

Key highlights of the TNFD recommendations:

  • Key Disclosure: Addressing nature-related impacts, dependencies, risks, and opportunities across business operations and value chains.
  • Alignment with Global Frameworks: Ensures consistency with existing standards, such as: Task Force on Climate-related Financial Disclosures (TCFD) & International Sustainability Standards Board (ISSB)

LEAP Approach:

Locate - SCGP carefully examined how the activities interact with the natural world. By analyzing operations, value chains, and geographical presence.

Evaluate - SCGP took a deeper look at their connection to nature. We measured how much we depend on natural resources and ecosystem services, while also understanding their impacts on these vital systems.

Assess - SCGP examined potential risks to their operations from environmental changes, while also discovering opportunities to create positive impacts

Prepare - SCGP developed targeted strategies, create detailed roadmaps for implementation, and establish robust systems for monitoring progress. This phase also emphasized the importance of transparent reporting to stakeholders about environmental initiatives and outcomes.

Governance & Social related to Nature
  • The Board’s Oversight and Management Responsibilities - SCGP's sustainability governance is integrated into its core business strategy through the Committee.
  • Human rights - SCGP respects stakeholder rights and values their opinions. We foster an understanding of sustainability practices, promotes constructive cooperation, and actively contributes to societal and environmental development.
  • Community engagement approach - SCGP conducts annual community satisfaction surveys that assess impact and inform future engagement strategies.
SCGP’s Nature conservation initiatives through partnerships
  • FSC™ - Forest Stewardship Council™
  • Forestry Research Center of Kasetsart University’s Faculty of Forestry
  • Thai Forest Ecological Research Network of Kasetsart University’s Faculty of Forestry
  • Forest Resource Management Office of the Royal Forest Department

This engagement aims to ensure these communities are not negatively affected by SCG operations while studying their needs to enhance their quality of life.

Scope of nature assessment

SCG TNFD report 2025 involved in 52 sites of SCG business from 5 business units, including the value chain are assessed for sensitive locations under the locate phase.

  • 38 sites of direct operation, cover approximately 65% of total revenue in 2024
  • 14 sites of the value chain (8 upstream sites & 6 downstream sites)

In the future, SCG intends to expand the scope of the assessment to cover at least 80% of the total revenue.

These included 10 target sites of SCGP.

  • 8 sites of SCGP’s direct operation.
  • 2 sites of SCGP’s value chain (1 upstream site & 1 downstream site).

SCGP’s location sensitivity: 8 sites of direct operation

Material Impacts and Dependencies

Following the E-Evaluate steps of LEAP, the ENCORE tool was utilized to identify the relevant impacts and dependencies. The results were then validated with SCGP’s working team to ensure that the identified impacts and dependencies were significant for SCGP. The results of SCGP are shown in SCG’s TNFD report 2025.

SCGP identified and prioritized key business activities within selected sites using the ENCORE tool, GIS analysis, and WWF BRF.

SCGP has various nature-related impacts categorized by priority. Priority impacts
High Medium Low
Area of land use
Volume of water use
Other biotic resource extraction
Emissions of GHG
Emissions of non-GHG air pollutants
Emissions of toxic pollutants to water and soil
Generation and release of solid waste
Disturbances (e.g. noise, light)
Introduction of invasive species
SCGP has various nature-related dependencies categorized by priority. Priority dependencies
High Medium Low
Biomass provisioning
Genetic material
Water supply
Global climate regulation
Rainfall pattern regulation
Air filtration
Soil quality regulation
Water purification
Water flow regulation
Flood mitigation
Noise attenuation
Biological control
Nursery population and habitat maintenance
Dilution by atmosphere and ecosystems
Mediation of sensory impacts
Operational Eco-Efficiency, Circular Economy and Climate Strategy

SCGP adopts efficient production practices and a circular economy to reduce resource dependencies and operational disruptions for important resources. Moreover, The climate strategy is built on a foundation of integrating both mitigation and adaptation measures throughout the operations and value chain.

Mitigation Hierarchy

SCGP has adopted the mitigation hierarchy framework, aligning with the principles of TNFD and AR3T. This framework guides the development of nature-related action plans aimed at achieving a Net Positive Impact. The following sections detail SCGP's commitment and concrete actions across the four stages of the mitigation hierarchy:

SCGP Operation Sites vs Thailand Protected Area

SFT is subsidiary of SCGP

GRI EN11: High Biodiversity Value Thailand’s Protected Area

  • Wildlife Sanctuaries
  • National Parks
  • Forest Parks

SCGP has no operation sites located in globally or nationally important biodiversity area, including Thailand’s Protected Forest Area such as Wildlife Sanctuary, National Park or Forrest Park announced by laws

SCGP Biodiversity Management Timeline 2020 - 2024
Diversity species status in Conservation Areas