Siam Cement PCL/The, commonly known as SCG, is a Thai conglomerate that operates in various sectors, including cement, building materials, chemicals, packaging, and energy. Established in 1913, the company has grown to become one of the largest and most diversified corporations in Thailand, with a strong presence in Southeast Asia and beyond. In this article, we will focus on SCG's operations in the cement sector and its efforts towards decarbonisation and renewable energy.

Cement is a critical building material that is used in the construction of buildings, roads, bridges, and other infrastructure projects. However, cement production is also a significant source of greenhouse gas emissions, accounting for around 7% of global CO2 emissions. As the world seeks to reduce its carbon footprint and combat climate change, the cement industry is under increasing pressure to decarbonise its operations.

SCG is committed to sustainability and has set ambitious targets to reduce its carbon footprint. The company has adopted a three-pronged approach to decarbonisation, which includes energy efficiency, fuel switching, and carbon capture and storage. SCG has invested heavily in modernising its production facilities and implementing energy-efficient technologies to reduce its energy consumption and greenhouse gas emissions. The company has also been exploring alternative fuels, such as biomass, waste, and refuse-derived fuel, to replace fossil fuels in its cement kilns.

In addition to these measures, SCG has also been actively pursuing renewable energy sources to power its operations. The company has set a target to generate 20% of its electricity from renewable sources by 2025. To achieve this, SCG has been investing in solar and wind power projects, both in Thailand and overseas. In 2019, the company signed a corporate power purchase agreement (PPA) with a solar power plant in Vietnam, which will supply SCG's operations in the country with renewable energy. The PPA is a long-term contract that provides a stable and predictable source of renewable energy for SCG, while also supporting the development of the renewable energy sector in Vietnam.

Corporate PPAs are becoming increasingly popular among companies that want to switch to renewable energy sources. These agreements allow companies to purchase renewable energy directly from a generator, rather than relying on the grid. This provides several benefits, including cost savings, risk management, and sustainability credentials. By signing corporate PPAs, companies like SCG can reduce their carbon footprint and contribute to the growth of the renewable energy sector.

SCG's commitment to sustainability and decarbonisation has earned it recognition from various organisations. In 2020, the company was included in the Dow Jones Sustainability Indices (DJSI) for the seventh consecutive year. The DJSI is a global benchmark that assesses the sustainability performance of companies based on environmental, social, and governance (ESG) criteria. SCG was also ranked among the top 100 most sustainable companies in the world by Corporate Knights, a Canadian media and research company.

In conclusion, SCG is a leading player in the cement sector and has demonstrated its commitment to sustainability and decarbonisation. The company has adopted a three-pronged approach to decarbonisation, which includes energy efficiency, fuel switching, and carbon capture and storage. SCG has also been actively pursuing renewable energy sources, such as solar and wind power, to power its operations. By investing in renewable energy and signing corporate PPAs, SCG is reducing its carbon footprint and contributing to the growth of the renewable energy sector. As the world seeks to transition to a low-carbon economy, companies like SCG will play a critical role in driving the shift towards sustainability.