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Message from President & CEO, SCG

Our world is undergoing many changes and volatile events that are becoming more complicated, and which impact, inevitably, the economy, society and the environment. Organizations must be well prepared in order to cope with those changes and volatility. Therefore monitoring and analysis of situations and risks is extremely important in ensuring that organizations can withstand and mitigate impact, while sustaining itself and continuing to grow. Entering our 101st year, SCG can manage its growth well, even though many challenges abound. In 2014, our overall revenue from sales increased 12% over the previous year. We remain committed to our goals to grow alongside a sustainable society and the environment.

As member states gear up for the scheduled realization of ASEAN Economic Community (AEC) in 2015, the business sector must likewise brace for the changing landscape of resources, labour and radically different patterns of consumption. SCG has made preparation through our vision that is committed to conducting business in parallel with promoting sustainable progress for ASEAN, and particularly in communities where SCG operates. We do this by promoting competitiveness through expansion of our manufacturing bases to ASEAN countries, taking with us the most up to date standards and technology to apply wherever we go. For instance, in Thailand and overseas we install the Waste Heat Power Generation (WHG) to recover waste heat from our cement kilns in the cement production process, as well as we apply the Fluidized Bed Gasifier technology to turn waste materials and biomass from agriculture into fuel gases.

Moreover, SCG is dedicated to creating value for our customers, workforce and stakeholders, in the belief that the ASEAN Economic Community will empower and strengthen the region significantly.

SCG conducts its business with sustainability throughout the entire supply chain. We start by implementing Green Manufacturing as an example of good practices. Then we give importance to capacity development of our suppliers through the enactment of SCG Supplier Code of Conduct in September 2013. To date, all major suppliers, sharing the same value with us have signed the SCG Supplier Code of Conduct. We are currently taking this endeavour a concrete step further through a pilot program involving 21 suppliers with the aim of enabling them to become our sustainable suppliers. On top of these, we have enhanced consumer's participation in sustainable goods and services through SCG eco value label. Sales of SCG eco value line have increased 31% from the previous year and now account for 31% of revenue from sales.

In the area of empowerment and enhancing quality of life of the community and society, SCG has scaled up the successful implementation of SCG Conserving Water for Tomorrow Project and the Innovative Technology for Remediation of Saline Land Project by setting up two Community Learning Centres to showcase good practice and lessons learnt. Titled 'Satanee Plook Khid Pun Sukh' (Instilling Thinking and Sharing Happiness Station), these community-based Learning Centers located at Ban Toey, Phimai District, Nakhon Ratchasima province and at Hom Phaya Sasobhok in Jae Hom District, Lampang province serve as on-site learning facilities for those interested in community empowerment on sustainable livelihoods. We have also followed up on the foundation with our 'Power of Wisdom' project in which SCG collaborates with other development partners namely Man Pattana Foundation, the Royal Thai Army, National Science and Technology Development Agency, and the Thai Chamber of Commerce to develop and offer a curriculum to train community leaders, opinion leaders, military officers and farmers, with a view to modernizing their paradigm with emphasis on logical thinking, problem-solving skill and self-sufficiency. We hope that the pioneering batch of trainees will become agents of change in driving a critical mass, making our communities and society strong, self-sufficient and sustainable.

In recognition of its commitment to sustainable business practice, SCG maintains its top ranking position in the Construction Materials Industry of Dow Jones Sustainability Indices for the fourth consecutive year. The ranking represents the pride beyond SCG, for it is being shared with our partners and stakeholders whose contributions form part of our success. SCG strives to improve its transparency in disclosing information further, by committing to using globally accepted sustainability reporting guidelines, the fourth generation of Global Reporting Initiative (GRI-G4).

As SCG takes its operation into the new century, adding value to Thai and ASEAN society through its balanced approach of sound sustainable business conduct, there remain many challenges in the path ahead which require close collaboration between SCG and stakeholders to overcome, and to achieve sustainable development for all.



Kan Trakulhoon
President & CEO, SCG