"Community Engagement and Development"

SCGP adheres to conducting socially responsible business practices alongside community and social development for sustainability. By raising awareness and fostering community engagement, we aim to enhance self-reliance, utilizing SCGP's expertise and collaborating with other sectors to support community growth. This approach aligns with SCG’s ESG 4Plus strategy, which is built on four key pillars: Net Zero by 2050, Go Green, Reduce Inequality, and Enhance Collaboration. Through these efforts, SCGP embraces green practices, promotes fairness and transparency, and adopts a lean approach to reduce inequality. Together, these initiatives contribute to creating a livable and sustainable world for future generations.

SCGP Plant the Trees to Beat the Heat Project

The Net Zero strategy for SCGP focuses on the initiative titled "SCGP Plant the Trees to Beat the Heat Project", which aims to contribute to reducing environmental impact by planting trees. The target for 2024 is to plant 49,000 trees, with an accumulated total of 239,325 trees planted from 2019 to 2024. This effort demonstrates SCGP's commitment to achieving net-zero carbon emissions by using reforestation as a carbon offset mechanism, aligning with the broader goal of environmental sustainability under SCGP’s ESG 4Plus strategy. The yearly planting targets and cumulative progress indicate a structured, phased approach to meet the company's long-term sustainability goals.

Uniting Power through SCGP ’Plant Beats Heat' Volunteer Development Project to Expand Green Spaces in Kanchanaburi Community Forest for Father's Day and World Soil Day

SCGP Conserving Environments from the Mountain through the Sea Project

The “SCGP Conserving Environments from the Mountain through the Sea Project” aims to preserve natural resources through reforestation and conservation efforts, particularly focusing on sustainable water management. By 2024, SCGP has constructed 3,812 check dams, with a target of building 1,130 more in that year alone, and an ambitious long-term goal of 10,000 check dams by 2030. This initiative is crucial for managing water resources, preventing floods, and reducing soil erosion, aligning with SCGP’s broader ESG 4Plus strategy for environmental sustainability.

Inspired by royal water management principles, this project emphasizes the importance of community collaboration in fostering self-reliance and long-lasting resilience. The construction of check dams and water retention systems in mountainous and upstream regions regulates water flow and ensures soil preservation. Engaging local communities in the building and maintenance of these systems is vital for their long-term sustainability. This initiative highlights SCGP's commitment to environmental conservation, ensuring a balanced and sustainable relationship between human activity and the natural environment.

Bring Paper Home Project

The Go Green strategy of SCGP focuses on promoting the recycling of paper. From 2019 to 2024, SCGP has successfully collected 1,453 tons of paper, with a cumulative total of 67,827 reams exchanged for new paper, valued at 8.3 million Baht. This initiative aligns with SCGP’s commitment to sustainability by encouraging recycling practices, reducing waste, and contributing to environmental preservation as part of the broader ESG 4Plus strategy. The annual increase in recycled paper demonstrates the effectiveness of this program in driving sustainable consumption and production.

SCGP and MCOT launch "MCOT Cares: Paper - Cycle – Separate, Exchange, Renew," separating used paper for recycling.

SCGP receives used paper from the Department of Primary Industries and Mines through “DPIM PIMD sending recycled paper back to the society” activity, aiming to return 8,000 kilograms recycled products to the society

Thailand Post & SCGP & GPO Join Hands in Thailand Post’s “reBOX” Campaign Handing Over Surgical Masks to Eight Hospitals

Circular Economy – The Paper Band Project

The Paper Band Weaving Support strategy by SCGP focuses on empowering local communities through sustainable craft. Between 2019 and 2024 , SCGP has supplied 24,898 kilograms of paper bands, generating cumulative income of 7.3 million Baht for participating communities. This initiative encourages the use of recycled materials to create handicrafts, contributing to both environmental sustainability and local economic development. The program exemplifies SCGP’s commitment to fostering community self-reliance and promoting green practices as part of their broader ESG goals.

Turn Paper Bands into Values Creation

Economic Empowerment

The Reduce Inequality of SCGP emphasizes professional development and community welfare support through sustainable livelihoods. From 2019 to 2024, SCGP has established 111 community development centers, generating cumulative revenue of 79.5 million Baht. This initiative focuses on enhancing vocational skills and creating economic opportunities within local communities, helping to increase income and improve the quality of life.

The strategy involves various projects, including the "Waste to Value" initiative, which trains communities to produce goods from recycled materials, thus promoting both environmental and economic sustainability. The participation of 4,691 community members since 2019 highlights the success and impact of the program in fostering self-reliance and community development.

SCGP Community Enterprise Development Project: Creating Added Value for Paper Band

Education Opportunity Creation

SCGP is committed to creating educational opportunities by providing scholarships that focus on developing skills for future generations, particularly in vocational training, professional skill-building, and supporting social volunteers. In addition to financial assistance, SCGP enhances students' personal and professional development through internships, educational trips, and various skills training programs. These initiatives aim to empower students, helping them achieve self-reliance and contribute to national development, aligning with SCGP's broader commitment to sustainability and social responsibility

SCGP Shares Expertise on “Sustainable Packaging”, Cultivating an Interest in Sustainability Among Students at Naresuan University

SCGP Announces Winner of SCGP Packaging Speak Out 2023, Embracing Aging Society through the 'Power of the New Generation' for the Seniors

SCGP Internship : Pass on Knowledge, Share Experience, and Harmonize with every Generation

World Vision Foundation of Thailand x SCG Packaging 3-in-1 Paper Desk for Opportunities & Sustainability

Relief Operations

SCGP plays an active role in relief operations, particularly during crises like floods and health emergencies. The company provides aid by partnering with reliable organizations and offering support to affected communities. During floods, SCGP delivers essential supplies and works on restoring infrastructure to improve the quality of life in the impacted areas. Their relief efforts also extend to producing innovative products such as modular medical units and paper beds during the COVID-19 pandemic, further highlighting SCGP’s commitment to social responsibility and sustainability

SCGP Foundation and SCGP deliver assistance to flood victims in Khon Kaen

62 Organizations Join Forces to Collect Used Paper Boxes For Recycling as SCGP Paper Field Hospital Bed

Stakeholder collaboration

SCGP's stakeholder collaboration strategy focuses on creating long-term value and fostering strong partnerships through innovation. For instance, SCGP partnered with Thailand Post and LocoPack to launch an on-demand box and envelope production service for SMEs. Additionally, SCGP demonstrated its "E-Nose" odor detection system to the Department of Industrial Works and collaborated with the Royal Thai Embassy in Dakar to strengthen business ties between Thailand and Senegal, highlighting packaging expertise. Furthermore, SCGP hosted SEAMEO SEPS members to share knowledge on the Sufficiency Economy Philosophy and circular economy practices aligned with the UN’s Sustainable Development Goals.

Thailand Post Partners with SCGP and LocoPack to Launch On-Demand Box and Envelope Production Service, Boosting Product Value and Supporting SMEs

SCGP collaborates with the Royal Thai Embassy in Dakar, Foster Business Ties between Thailand and Senegal, Empowering Business Leaders with Packaging Expertise and Highlighting Thai Private Sector's Potential

SCGP welcomes the Department of Industrial Works to visit and observe progress in the odor detection and monitoring system in industrial plants, known as "E-Nose"

SCGP took part in sharing knowledge and operations on sustainability with the 7 ASEAN member countries from SEAMEO

Zero-Waste Community

The "SCGP Zero Waste Community Project, in collaboration with Ban Pong District and 17 local administrative organizations, expanded waste management to 143 communities in Ratchaburi, Kanchanaburi, Prachinburi, and Khon Kaen Provinces from 2019 to 2023. This initiative reduced 2,269 tons of waste and generated a total income of 2.45 million baht for the communities. The project also successfully expanded to its first urban community, the C.K.2 Community in Ban Pong Municipality.

Healthcare

SCGP collaborates with Siriraj Hospital to rebrand its cosmetic line with sustainable packaging, enhancing both appeal and eco-friendliness. Additionally, SCGP partnered with Srinakharinwirot University to develop probiotic strains for its HOLIS by SCGP PROBIO ACTIVE PLUS supplement, supporting health and wellness. In another initiative, SCGP joined SANOFI and SCGC to launch the Sanofi Planet Care Upcycling Program, the first in Thailand to recycle insulin pens into plastic pellets, transforming them into packaging and promoting resource circulation in line with ESG principles.

SCGP collaborates in “Sanofi Planet Care Upcycling Program” to transform recycled plastic pellets into new packaging

Siriraj Hospital Teams Up with SCGP to Rebrand Cosmetic Products, Introducing New Packaging that Combines an Eco-Friendly Aesthetic with a Beautiful Design

SCGP X Srinakharinwirot University, Collaborate on Special Probiotic Research, Advancing the Development of HOLIS by SCGP Nutritional Supplements, Elevating Good Health

Cultural legacy

SCGP contributed to the 4th Dhamma Sermon Across Four Regions of Thailand, honoring His Majesty the King’s Sixth-Cycle Birthday, by providing eco-friendly Fest packaging. This collaboration preserves cultural traditions while promoting sustainability. The event, part of a royal initiative to disseminate Buddhist principles, featured sermons, cultural performances, and alms offerings. SCGP’s involvement underscores their dedication to integrating environmental responsibility into cultural events, supporting Thailand's cultural legacy and sustainable practices through innovative, earth-friendly solution

Fest by SCGP provided foodservice packaging for “the 4th Dhamma Sermon Across Four Regions of Thailand (Central Region)”, held in honor of His Majesty the King on the royal occasion of His Majesty's Sixth-Cycle Birthday Anniversary, July 28, 2024.

Strategy

Utilize both SCGP expertise and external specialization to care for society.

Foster employee engagement with relevant stakeholders to create sustainable value for society.

Develop innovation that responds to the community's needs and solves social issues.

Develop a community model and scale up the model achievement to other community networks.

SCGP's community engagement and stakeholder interaction efforts:

Stakeholder Engagement Policy and Guidelines: SCGP has announced a Stakeholder Engagement Policy and Guideline focused on creating long-term value for all stakeholders.
Employee Development: The company enhances skills and knowledge for employees working on community-relations activities. Learning activities involve sharing work experiences among different factories to foster idea exchanges and enhance social activity performances.
Activity Reporting: Community-relations staff must regularly submit activity reports to The Community Relations Committee for consideration.
Philanthropic Contributions: SCGP makes social contributions annually in various philanthropic areas to ensure communities are capable and resilient in managing problems sustainably.
Community Satisfaction Index (CSI): Conducted annually by an external Third Party at SCGP's major manufacturing sites, this survey follows statistically accurate principles and involves local community leaders, government officials, businesses, and residents within a 5-kilometer radius of the factories. The CSI assesses satisfaction with the factories' operations, focusing on environmental management, social responsibility, communication, and impact on community well-being.
Continuous Community Engagement: The CSR Team at SCGP contacts communities weekly to gather requirements, set strategies, and receive feedback on plant operations. This is part of the effort to ensure equity and inclusivity and to facilitate a harmonious coexistence with factory operations. Initiatives like the Paper Band Weaving Project and Zero Waste Community campaigns are examples of how SCGP engages with and supports the community.

These points capture the breadth of SCGP's strategies and initiatives aimed at ensuring responsible operations and positive community impact.

Vina Kraft Paper Co., Ltd. (VKPC) in SCGP receives Top 100 Sustainable Companies Award and Gender Equality in the Workplace Award 2022 in Vietnam

Target

90%

Community Satisfaction Index

Performance 2023

95%

Community Satisfaction Index

22,787,901 Baht

Social enterprise development for communities’ income

111

career development centers in communities

46

Number of Zero Waste Communities

627

units of check dam

62,549

trees for reforestation

Key achievements include:

Economic Impact:
- The cumulative community income increases from participating in prototype community visits, selling community products, and recycling products from waste materials in SCGP Zero Waste Community project and sales of products in Paper Band Social Enterprise project from 2019 to 2022 amounted to 9,185,753 Baht.
Social Impact:
- The cumulative number of empowered communities through knowledge enhancement and capacity building from participating in Zero Waste Community project from 2019 to 2023 totaled 143 communities.
Environmental Impact:
- The cumulative amount of reduced waste from participating in Zero Waste Community project from 2019 to 2023 amounted to 2,669,535 kilograms.
- The cumulative amount of recycled paper returned for recycling in Bring Paper Home project from 2019 to 2023 totaled 1,323,509 kilograms, equivalent to reducing greenhouse gas emissions by 7,504,296 kilograms of carbon dioxide.

SCGP is dedicated to innovating for sustainable people and plant, aligning with Mega trends and prioritizing ESG, which is the heart to our business operations. We have clear ESG policies and practices, with a dedicated CSR unit focusing on enhancing the well-being and self-reliance of local communities, particularly around our factories. SCGP places importance on developing knowledge and skills for CSR employees and conducts site visits to facilitate knowledge exchange and improve the efficiency of community-related activities. Additionally, we regularly report on the activities of the SCGP Community Relations Committee and conduct ongoing surveys to gauge community satisfaction within a 5 kilometer around all 5 SCGP factories annually which are Siam Kraft Industry Co., Ltd. (Ban Pong Mill), Siam Kraft Industry Co., Ltd. (Wangsala Mill), Thai Cane Paper Public Company Limited (Tamuang Mill), Thai Cane Paper Public Company Limited (Prachin Buri Mill) and Phoenix Pulp & Paper Public Company Limited, covering various topics:

Evaluate community perception and attitudes towards SCGP as a Green Industry.
Assess awareness and perception of SCGP's operations across 6 key performance indicators (KPIs): Economic, Social, Facility, Management, and Communication.
Evaluate Community Quality of Life:
- Current community perception towards quality of life.
- Current issues and concerns arising from factory operations in the area.
- Anticipated issues and impacts on quality of life in the future.

The survey studies within target groups including:

General public: Stratified Multi-Stage Proportional Sampling Design.
Community leaders: Census.
Local government agencies: Purposive Sampling Design.
Vulnerable groups in the area: Purposive Sampling Design.
Nearby businesses: Purposive Sampling Design.

SCGP has regularly conducted a community satisfaction survey in the communities nearby five factories located in Ratchaburi, Kanchanaburi, Prachinburi, and Khon Kaen Provinces in 6 dimensions: economic, environmental, social, physical, management, and public relations The community satisfaction survey results in 5 areas in 2023 (Business Unusual) accounted for 95 percent from the target of 90 percent (Business Usual). However, the 2023 survey results were higher than the base year value of 2016 at 52 percent satisfaction.

These studies are conducted annually by SCGP to inform the development of future operational plans, addressing community needs and efficiently mitigating potential impacts from factory operations. Key survey results include:

Community Satisfaction Index 2023 VS 2022

Overall Image VS Overall Satisfaction 2023 VS 2022

Close Communication: SCGP promotes active communication with the community through various channels to meet diverse needs, including social media, Line, information boards, on-site visits, and open house events for engagement with mass media, NGOs, and government agencies.

Feedback and Engagement: SCGP listens to feedback on environmental practices, engages in discussions, exchanges ideas, and manages complaints effectively. In 2023, the company resolved 100% of three environmental complaints, leading to high community satisfaction.

Community Development Projects: SCGP incorporates community needs into projects like the "SCGP Zero Waste Community", involving communities, government, and private sectors in waste management based on Circular Economy principles. This project reduces waste, repurposes materials, and generates income in villages, schools, and other public areas near SCGP’s plants.

Educational Initiatives: SCGP educates communities on waste separation and reuse, promoting community cooperation and harmony, with projects like "Bring Paper Home" and "Paper Band Social Enterprise" aimed at creating cleaner environments and mitigating disease outbreaks.

These efforts demonstrate SCGP’s commitment to fostering strong, sustainable community relationships.

SCGP formulates the following four strategies by considering the characteristic of projects and SCGP’s involvement, taking into account the competency and capacity of the organization in terms of knowledge, capital and collaboration.

1. A role model for sustainable social development

To tangibly solve the problems of Thailand and emerge as a project model for other companies to replicate, SCGP is involved from the first step of problem diagnostics, developing a work plan, and participating in implementation process until the objectives are achieved.

2. Capacity building and improving the quality of life by specialists

For problem solving or to raise the quality of life of people in the society, tapping into certain kinds of expertise or specialization, SCGP may take part on selected issues, and outcomes can be built upon or scaled up.

3. Capacity building and improving the quality of life, with Employees’ Involvement

To raise quality of life or build the capacity in different aspects of the society, whereby SCGP employees participate in driving the projects until achieving successful outcomes that are then replicated elsewhere.

4. Alleviation of social situation and suffering

To do relief work when the society faces pressing problems, and contributing to better quality of life of the people, by supporting organizations with proven track records in doing philanthropic and public service.