Sustainability Structure

The Corporate Governance and Nomination Committee

of SCGP has the duty to consistently define the company’s corporate governance scope and policies and propose them to the Board of Directors; monitor the performance of the Board of Directors and the Management Committee to ensure compliance with the company’s corporate governance policies; consider and prepare director development plans in support of committees’ knowledge and skill enhancement with the aim to ensure directors understand their roles and duties, businesses, economy, technology, as well as laws and regulations related to the company and its subsidiaries; and review the remuneration for the Board of Directors and committees in comparison with rates used by other leading listed companies in the same industry so as to retain leadership and provide proper career incentives. The review takes into account Key Performance Indicator (KPI).

The Audit Committee has the duty to conduct audits as assurances that the company has put in place risk management and Environmental, Social, Governance (ESG) processes. Reporting directly to the Board of Directors, these two committees also participate in the process to make key strategic decisions on sustainability-related risks and opportunities.

The board of directors has undergone an assessment using the Board Skills Matrix to ensure comprehensive coverage of specialized knowledge and essential competencies necessary for executing the mediumterm (5-year) business strategy. This assessment underscores the significance of expanding business operations into international markets and fostering growth on a global scale. Furthermore, it highlights a commitment to leadership in ESG (Environmental, Social, and Governance) and innovation, with clearly defined criteria for expertise and specialized knowledge in alignment with the Board Skills Matrix.

At SCGP, there are two keys administrative panels related to sustainability-related risks and opportunities. The first, the ESG Committee, has the duty to establish and supervise policies for compliance with UN Sustainable Development Goals (UN-SDGs); ensure ESG guidelines align with stakeholder expectations so as to set good ESG examples at both regional and international levels; promote, communicate and foster ESG mindset among staff and business partners in pursuit of ESG goals; and integrate ESG materiality into business strategies to create value and sustainability for SCGP and the public. The second, the Risk Management Committee, is mainly responsible for reporting risks and risk management to the Audit Committee.

The ESG Committee and the Risk Management Committee work together in managing material sustainability-related risks and opportunities, including:

1. Strategy and Risk Management
2. Implementation efforts toward of greenhouse gas emission reduction
3. Business operations based on the Circular Economy approach
4. Customer and consumer-centric business operations

In carrying out their duties, the aforementioned committees and work groups receive support from other panels namely the Energy & Climate Change Committee, the Water Management Committee, the Waste Management Committee, the Nature Positive Committee, and the Odor Management Committee. Together, these committees propose solutions to address material topics related to sustainabilityrelated risks and opportunities, ensuring that their proposals align with Net Zero Initiatives, the Circular Economy and Customer Centricity & Stakeholder Engagement goals. They convene meetings and report results to both the Corporate Governance and Nomination Committee and the Audit Committee.