IR Home
TH

Double Materiality

  2. Sustainability Approaches
  3. Double Materiality
Materiality Assessment

SCGP annually assesses double materiality in accordance to the GRI Standard (GRI3: Material Topics 2021) by considering both the financial and non-financial impacts of sustainability issues on its business operations and stakeholders. Double materiality is a concept that recognizes the importance of assessing both the internal impacts of sustainability issues on a company's financial performance and the external impacts of the company's activities on the environment, society, and governance.

SCGP also considers the financial materiality of sustainability issues by evaluating their potential impacts on the company's financial performance, including risks and opportunities. This involves analyzing factors such as regulatory changes, market trends, resource availability, and customer preferences that may affect SCGP's financial performance.

Furthermore, SCGP assesses the impact materiality (non-financial materiality) of sustainability issues by evaluating their impacts on the environment, society, and governance. This includes analyzing the company's carbon footprint, water usage, waste management practices, labor conditions, human rights, community engagement, and ethical business practices.

Process of Materiality Assessment and Prioritization

01
COLLECT AND IDENTIFY SUSTAINABILITY ISSUES
  • Analyze sustainability issues throughout the value chain, encompassing raw material procurement, production, transportation and distribution, as well as the use of products and services
02
ASSESS IMPACTS
  • Assess the actual and potential impacts on the basis of financial materiality to SCGP, and impact materiality. The assessments are conducted by relevant committee and business units.
03
REVIEW AND VALIDATE
  • Assess economic, environmental and social impacts with ESG Committee involved in the process of review and validation prior to presentation to the Board of Directors
04
COMMUNICATE WITH STAKEHOLDERS
  • Disclose material issues transparently and comprehensively to stakeholders, and listen to their opinions for mutual understanding and SCGP’s partnerships with stakeholders. The material sustainability issues are also reviewed once a year
Step 1: Collect data and identify material sustainability issues

Materiality Issues from external stakeholders

  • External stakeholders including
    • Survey results from stakeholder engagement and materiality survey including surveys from annual ESG events (e.g. ESG Symposium, Supplier Day)
    • Questions raised by investors and customers during the year (e.g. analyst conferences, customer inquiries)
    • ESG-related laws and regulations
  • Peer benchmarking
  • ESG rating system and external ESG assessment such as S&P Global (CSA), CDP, EcoVadis, MSCI, FTSE4Good, Sustainalytics
  • Sustainability Reporting Frameworks: the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), the IFRS (International Financial Reporting Standards) S1 and S2, the Sustainable Development Goals (SDGs), the United Nations Global Compact (UNGC), the World Business Council for Sustainable Development (WBCSD)
  • Megatrends from World Economic Forum

Materiality issues within SCGP management

  • Materiality assessment results from previous years
  • Issues foreseen by Board-level and senior executive level (Audit Committee, Risk Oversight Committee, ESG Committee, and Risk Management Committee)
  • Issues raised and monitored through internal ESG and other related work-group level committees (e.g. Energy and Climate Change, Water, Waste)
  • Issues set as short, medium and long-term goals for business. Performance related to these issues is a part of the remuneration criteria for the Chief Executive Officer and top executives
Step 2: Assess Impacts Step 3: Review and Validate Step 4: Communicate with stakeholders

SCGP assesses the actual and potential impacts on the basis of financial materiality to SCGP, and impact materiality. The assessments are conducted by relevant committee and business units.

Assess economic, environmental and social impacts as well as other issues within the Enterprise Risk Management (ERM) framework, taking into account financial impacts, environmental and social impacts. Then, prioritize sustainability issues with the ESG Committee involved in the process of review and validation prior to presentation of these issues before the Board of Directors.

Disclose material issues transparently and comprehensively to stakeholders, and listen to their opinions for mutual understanding and SCGP’s partnerships with stakeholders. The material sustainability issues are also reviewed once a year.

SCGP assessed 18 sustainability issues based on a Double Materiality approach, which considers both:

  • Impacts on SCGP (Financial Materiality)
  • Impacts on Stakeholders (Impact Materiality)

The assessment identified 5“high materiality” issues namely:

Strategic Importance Materiality

  1. Climate Action and Strategy
  2. Circular Economy
  3. Customer & Consumer Centricity

Fundamental Materiality

  1. Occupational Health and Safety
  2. Corporate Governance

Double Materiality Matrix

2025 Materiality Issues

Utilizing the Double Meateriality method, the review concluded that SCGP identified five material sustainability issues in 2025 which are as follows:

Following the review if SCGP’s Strategic importance materiality issues in 2025 through a Double Materiality assessment, three key issues were identified:

Double Materiality Assessment 2025 (GRI 3-3)

Climate Action and Strategy

Items Impact on SCGP Impact on Stakeholders
Affected Stakeholders Employees Customers / Investors / Suppliers / Business partners / Environment / Society
Cause of Impact Operations + Resilience to upcoming carbon related law and regulations
- High investment for GHG reduction projects
+ Less Energy Cost		 - High GHG emissions affecting public health of local communities, ecosystems
Products/Services + GHG Emission Reduction
+ Better reputation and customer confidence through ESG ratings and climate actions		 -High GHG product may lead to export ban or fee due to stringent carbon-related regulations.
Supply Chain + Reducing emissions is essential to maintain market access (e.g. Carbon Tax). + Meet requirement/need of customers or investors focused on climate change
Sectoral Damage Health, Energy
Net Impact Valuation > 1,000 million Baht
Opportunities
  • Opportunities to access sustainable finance to enhance environmentally friendly production processes and improve production efficiency.
  • Promotion of collaboration among government agencies, the private sector, industry players, and international organizations to assess situations and risks, and to develop mitigation measures and business continuity plans in response to climate-related risks.
  • Sourcing timber from sustainably managed plantations.
  • AI adoption to reduce production and logistics costs by monitoring and analyzing large volumes of real-time data across production, inventory levels, energy use, working conditions, and transportation systems to maximize efficiency, forecast trends and enable automated optimization and adjustments
Main reference SDGs and ESG4 Plus
Management Strategies
  • Measures to Reduce Scope 1 and 2 Greenhouse Gas Emissions
    1. Enhancing energy efficiency throughout the entire production processes.
    2. Transitioning to renewable and low-carbon fuels.
  • Measures to Reduce Scope 3 Greenhouse Gas Emissions
    1. Sourcing raw materials from sustainably managed sources and increasing the use of low carbon footprint materials.
    2. Improving logistics and transportation efficiency.
    3. Developing products and packaging solutions based on circular economy principles to reduce emissions throughout the product life cycle.
    4. Supporting post-consumer product management systems through recycling and resource recovery in collaboration with customers and relevant stakeholders.
  • Carbon Removal Measures
    1. Carbon capture and sequestration, emphasizing nature climate solutions for long-term carbon sequestration, such as forest conservation and ecosystem rehabilitation.
  • Other Measures
    1. Climate risk management and adaptation by planning the management of water, energy, and logistics systems to address climate-related risks under various scenarios.
    2. Developing financial and economic mechanisms to accelerate the transition, including Internal Carbon Pricing to reflect carbon costs and the use of Marginal Abatement Cost Curve (MACC) analysis to prioritize emission reduction initiatives effectively.
    3. Continuous promotion of awareness and understanding of energy conservation and climate change among employees, suppliers, customers, and communities.
Targets & Performance
  • Achieve Net Zero emissions of GHG by 2050
  • Reduction in Scope 1 and 2 greenhouse gas emission 25% in 2030 compared with the base year 2020 (2025 Performance 13.4%)
  • Reduction in Energy intensity (per ton of production) 15% in 2030 compared with the base year 2020 (2025 Performance 16.2%)

Circular Economy

Items Impact on SCGP Impact on Stakeholders
Affected Stakeholders Employees Customers / Investors / Government / Suppliers / Business partners / Environment / Society
Cause of Impact Operations + Reduce costs in the production process and increase the efficiency of using resources due to 3Rs (Reduce/Reuse/Recycle).
- Higher investment in management for difficult-to-recycle product groups, such as multilayer plastic packaging.
Products/Services + Increase opportunities to sell sustainable packaging solutions with more recyclable, reusable and compostable packaging.
+ Increased sales revenue		 + Customers have more eco product choices.
+ Circular economy initiatives lead to consumer preference for environmentally friendly products with awareness to minimize GHG emissions.
- The price of the product has increased.
Supply Chain + The government sector has received support for Extended Producer Responsibility (EPR) system, providing an opportunity for producers to create an ecosystem for circular economy.
+ Less waste management cost
+ Zero waste community project to reduce waste in society around SCGP factories
- Additional cost on EPR fee
- Residents near landfills will experience less impacts on their health, property values, and quality of life.
Sectoral Damage Health, Social Cost of Carbon
Net Impact Valuation > 1,000 million Baht
Opportunities
  1. Growing consumer demand for circular, reusable, and environmentally friendly packaging designs.
  2. Creating value from residual materials or waste (Waste to Value) by transforming them into new feedstock.
Main reference SDGs and ESG4 Plus
Management Strategies
  1. Developing packaging based on circular design principles to maximize recyclability and efficiency.
  2. Promoting the use of Post-Consumer Recycled (PCR) materials in the production of plastic packaging to reduce reliance on virgin resources.
  3. Reducing packaging weight and volume while maintaining strength and functional performance.
  4. Promoting compostable and reusable packaging innovations in line with circular economy principles
  5. Applying Life Cycle Assessment (LCA) standards to packaging design to ensure designs are based on scientific evidence in support of SCGP’s credibility as well as tangible and measurable environmental impact reduction.
Targets & Performance
  • SCGP is committed to engineering packaging products through co-creation with customers, aspiring to achieve 100% reusable, recyclable, or compostable packaging by 2030.

Customer & Consumer Centricity

Items Impact on SCGP Impact on Stakeholders
Affected Stakeholders Employees Customers / Investors
Cause of Impact Operations
Products/Services + Able to respond to customer needs appropriately and completely
+ More loyally customer
- Require both time and expenses for data collection and analysis.
+ More customer experience score
+ Increased sales revenue		 + Customers receive products that meet their needs.
+ Customers feel they are getting value for their money.
+ Better customer experience with SCGP brand
Supply Chain
Sectoral Damage No
Net Impact Valuation < 500 million Baht
Opportunities
  1. Develop digital channels for ordering, payment, and order tracking to improve customer convenience.
  2. Improve customer data management efficiency for enhanced services.
  3. Create innovative products, services, and solutions that support sustainability & demand for low-carbon and recyclable products.
Main reference SDGs and ESG4 Plus
Management Strategies
  1. Leveraging technology to analyze deep customer insights for the development of products and innovations that not only address customer needs but also advance environmental sustainability.
  2. Increasing customer satisfaction by designing a seamless, end-to-end experience across all touchpoints—from product design and manufacturing to delivery and after-sales services.
  3. Continuously monitoring and assessing customer satisfaction to acquire insights for process and service improvement in support of enhanced customer experience.
Targets & Performance
  • Customer experience score of 85% [2025 Performance 89%].

Materiality Through Value Chain