Environmental Sustainability Management
Environmental Policy and Guidelines
The Company recognizes the importance of the steel industry as a key driver of national development, while acknowledging that its production processes require the use of natural resources. Therefore, the Company places continuous emphasis on environmental management, guided by its business philosophy and ethical principles. In this regard, the Company has established policies on safety, occupational health, and environment, together with systematic environmental and greenhouse gas management plans, to control, reduce, and offset greenhouse gas emissions throughout the value chain. These efforts aim to achieve carbon neutrality (Carbon Neutral) and the long-term goal of net zero greenhouse gas emissions (Net Zero), in parallel with sustainable business operations.
The Safety, Environment and Plant Integrity Management Office is a main driving force on environmental management which jointly works with other production units in the plant site. The environmental managers, supervisors, and operators in charge of water, air pollution and waste control systems have been fully appointed pursuant to the laws. Implementation in accordance with the laws relevant to environmental matters has been strictly complied, including the study and preparation of environmental impact assessment report, the compliance with the preventive and corrective measures to minimize the environmental impact from steel manufacturing, the measures to monitor quality of the environment, ISO 14001 Environmental Management System, ISO 45001: Occupational Health and Safety Management Standard system.
For the operations outside the plant, the Company jointly cooperated with the companies in Sahaviriya Steel Group in Bangsaphan District to promote and cultivate environmental awareness and the collaboration between the communities and the plant through various activities throughout the year.
Environmental Operating Results
Energy Management
SSI puts emphasis on energy conservation because energy is an important factor in manufacturing of products and it is the second main cost following raw materials. SSI determines to enhance efficiency on energy consumption for maximum value as well as to minimize energy loss. The Company applied ISO 50001 Standard for Energy Management with its operation under supervision of the energy management working team. This system can increase efficiency level on energy usage per production unit, thus it can reduce energy usage concretely and drive the production and services in a better sustainable basis
As a result of the Company’s energy management in 2025, the Company had energy consumption of 2,161 megajoules per tonne (MJ/tonne). When compared with 2024, which had energy consumption of 2,191 megajoules per tonne (MJ/tonne), it was found that the Company was able to reduce energy consumption by 30 megajoules per tonne (MJ/tonne) of product, or 1.37% of the energy consumption rate in the previous year, equivalent to a reduction of CO₂ emissions of 5.59 metric tons in 2025. This was a result of improving electrical energy efficiency by reducing losses in the water distribution system in the production process, and from production conditions with a low rate of electricity consumption. As for thermal energy from fuel oil, the consumption rate decreased due to production conditions with a lower rate of fuel oil usage.
Water Management
SSI Bangsaphan Steelworks uses raw water from Bangsaphan canal, a huge surface water source located 13.5 km. far from the plant. Water is pumped into 2.4 million cubic meters water reservoir. However, SSI will not pump water from Bangsaphan Weir during dry season when water level in the weir is below 2.2 meters. The plant is also designed to recycle water in the HRC production.
Such water consumption management within the plant allows the Company to keep on production without having water shortage problem as water is a common resource shared with the community and local agricultural sector. Throughout year 2024, the Company still strictly adhered to the set measures.
For the treatment of wastewater, SSI has installed chemical water treatment system to reduce levels of wastewater generated in the HRC-pickled and oiled production line, installed sedimentation tanks, sand filters and grease trap tanks in the HRC production line, and equipped with biological treatment system for wastewater from consumption within the plant. The quality of water in all systems has been constantly tested by the officials and verified by the external certification body authorized by the government agencies. The treated water is recycled and some of which is used to water the plants, with zero discharge outside the plant.
In 2025, total water consumption in SSI Bangsaphan Steelworks was 0.83 million cubic meters, consisting of
1) HRC production line at 0.29 million cubic meters;
2) HRC pickled and oiled production line at 0.07 million cubic meters, and
3) Water for utilities at 0.47 million cubic meters.
Control of Water Quality
Though, the Company’s water treatment system has been designed as zero discharge, but the Company still inspected quality of water, both within and outside the plant, as follows:
1. Inspect the quality of treated water at 4 stations by the third-party agency approved by the Industrial Works Department. The results obtained were better than the standard value of effluent as per specified in the Notification of the Ministry of Industry B.E. 2560.
2. Inspect the quality of subsurface water at 9 stations on semi-annual basis by the third-party agency approved by the Department of Industrial Works. Currently, Thailand has no relevant standards on subsurface water, but the Company has monitored any change that may occur. No significant change was detected from analysis conducted during the past years.
3. Inspect the quality of surface water in public water sources at 3 stations on a semi-annual basis by the third-party agency approved by the Department of Industrial Works to ensure that business operations of the Company will not have any impact to the environment. Results from inspection of surface water were as follows:
Chemical Usage
Various chemicals were used in the water production system in the hot-rolled coil production line and hot-rolled coil pickled and oiled production lines. During 2025, the Company did not use new chemical in the plant and chemical usage rate in the processes did not have tendency to increase. In addition, inspection results pursuant to ISO 14001 and ISO 45001 standards on chemical control and management in the plant were under the operating standards. However, there were some recommendations which the relevant parties have already taken into account for improvement.
Pollution and Waste Management
The Company is committed to reduce quantity of waste at source by applying the 3Rs Principle – Reduce, Reuse and Recycle. Waste in the production process and in the office have been taken into reduction, reuse and recycle projects, for instance, reduction of contamination of used oil from repeated use, compilation of wasted food from consumption by the staff to process for fermented bio-extract to distribute to the staff. The Company also selected waste disposal methods with minimal environmental impact, for instance, the Company used services of a well-known waste processor with expertise and certification issued by the authorized government agency for proper waste disposal standard as required by laws which has been accepted by many service users. In addition, for industrial waste management, the Company employed industrial waste pollution controller, to ensure that the operation has been performed correctly and in compliance with the laws.
In 2025, the company generated a total of 28,620.25 tons of waste. Of this amount, 22,537.07 tons were sold, generating revenue of 71.59 million baht. Waste disposal expenses totaled 17.61 million baht. The remaining waste from sales was managed through 100% recycling by facilities authorized by relevant government agencies in compliance with applicable laws and regulations.
Air Quality Control
As designed for efficient fuel consumption, SSI Bangsaphan Steelworks has installed computerized combustion system controlling level of sulfur impurity in the fuel not exceeding 2%, resulting in the better level of air ventilation outside the plant than the standard level and requirements specified in the plant’s environmental impact assessment report.
With regards to the hot-rolled coil pickled and oiled production line, acid gas detection systems have been installed both in the production line and in the acid treatment plant for recycling purpose. As a result, level of air ventilation outside the plant was also better than the standard levels and requirements specified in the plant’s environmental impact assessment report.
Various parameters of ambient air quality around the plant have been constantly monitored and inspected throughout the year. In 2025, 5 stations, namely, Baan Tha Kham, Baan Tha Manoa, Baan Klang Aow, Baan Tubmon and Baan Bor Thonglang were monitored. Air quality measured by parameters was as follows:
- Hourly average level of density of sulfur dioxide in the atmosphere
- Hourly average level of density of nitrogen dioxide in the atmosphere
- Hourly average level of total suspended particulate (TSP) in the atmosphere
- Hourly average level of density of hydrogen chloride in the atmosphere
- Hourly average level of particulate matter less than 10 microns (PM10)
- Hourly average level of particulate matter less than 2.5 microns (PM2.5)
Inspection results of air quality pursuant to the above parameters of all stations were much better than the set standard, as same as the results from the previous inspections of all stations and all parameters.
Biodiversity
The Company gives importance to business operation along with preserving balance with nature and environment to conserve biodiversity of living thing and support the SGD 15 (Life on Land) of UN’s Sustainable Development Goals (SDGs), thus, the Company together with the companies in Sahaviriya Steel Group (SSI Group) have carried out a biodiversity survey project, which is a key indicator of abundance of the eco-system, in the areas surrounding Sahaviriya Steel Group, with details as follows:
The Environmental Monitoring Project on Biological Resources
In 2025, the Company and the companies in SSI Group, employed a team of the specialists from the Department of Zoology Faculty of Science, Kasetsart University to conduct the survey on biodiversity (species diversity) in the following areas: 1) Thung Don Samran Field, 2) Thung Lan Khwai Field, 3) Nok-Ka-Rean Field, 4) Mae Rumphueng Mangrove Forest, and 5) Pa Klang Aow Natural Park to ensure that the Company’s operations did not impact the biodiversity. Such survey has been carried out for 18 years consecutively (2008-2025).
Base on a study of biodiversity survey results in the areas surrounding factories of SSI Group during September and December 2025, a total of 126 species from all four classes of animals were found, consisting of 1) 125 species of wildlife species found from observed directly, trace evidence and their voices, 2) 1 species (Dog-faced Water Snake, Cerberus schneiderii) for which information was obtained thru interviews. The category of species by class was as follows: 1) Amphibians: 14 species; 2) Reptiles: 22 species; 3) Birds: 82 species; and 4) Mammals: 8 species.
Such amount can be classified by each study area located around Sahaviriya Steelworks as follows:
(1) 72 species in Thung Don Samran Field
(2) 81 species in Thung Lan Khwai Field
(3) 64 species in Nok-Ka-Rean Field
(4) 69 species in Mae Ramphueng Mangrove Forest and
(5) 60 species in evergreen rain forest plain of Pa Klang Aow Natural Park.
Base on monitoring of the environmental impacts on organisms in the surrounding natural areas near the SSI Group in 2024, the operation of SSI Group since 2008- 2025 did not cause a decrease the animal diversity. The ecosystem surrounding factories of SSI Group, Bangsaphan District are rich, abundant and remain the habitat of a variety of animals, which can be seen from the diversity of the number of animal species in each study area.
Climate Change Management
The company recognizes and prioritizes climate change, preparing to meet challenges and continuously striving forward. It has established a comprehensive and clear policy framework and guidelines for greenhouse gas management, demonstrating its readiness to transition into a low-carbon organization and driving greenhouse gas emission reductions in line with national policies and international standards. The company has established the SSI Group Climate Action Committee to oversee and drive concrete actions. Additionally, the company consistently promotes public and government participation thru various projects and activities to mitigate the increasing concentration of greenhouse gasses, serving as a positive example of continuous greenhouse gas management from organizational activities.
1. Inventory of Greenhouse Gas Emissions of the Organization
The company has been continuously monitoring and managing greenhouse gas emissions from its operations at the organizational level since 2021. In 2025, the company received Carbon Footprint for Organization (CFO) certification number TGO CFO FY26-04-095 from the Greenhouse Gas Management Organization (Public Organization). The company used the calculation principles according to ISO 14064-1 (Specification with guidance at the organization level) to prepare greenhouse gas emission data, which was then verified by an external reviewer (Third Party) from Team Consulting Engineering and Management Public Company Limited. This data is used as a guideline for managing greenhouse gas emissions and reporting the company’s greenhouse gas emissions consistently. In 2024, the total emissions of greenhouse gasses in Scopes 1 and 2 were 219,066 tons of carbon dioxide equivalents.
Greenhouse Gas Emission of SSI (Unit: tonnes of CO2 equivalent)
| Greenhouse Gas Emission | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Direct greenhouse gas emission (Scope I) | 141,469 | 141,469 | 118,231 | 140,770 |
| Indirect greenhouse gas emission (Scope II) | 102,306 | 87,042 | 84,100 | 78,296 |
| Total | 243,775 | 231,260 | 202,331 | 219,066 |
2. Corporate Carbon Footprint Platform for Net Zero Goals
The company participated in the Corporate Carbon Footprint Platform Testing Project for Net Zero (Phase 2), conducted by Thailand Greenhouse Gas Management Organization (Public Organization). The project aims to support Thai organizations in systematically monitoring, assessing, and managing their corporate carbon footprints, which is a crucial mechanism for driving greenhouse gas emission reduction and achieving net-zero greenhouse gas emissions.
In this regard, the company participated in a trial run of the platform to efficiently store and analyzes the organization’s greenhouse gas emissions data. The information obtained will be used to continuously and concretely develop and enhance energy and environmental management within the factory, reflecting the company’s commitment to operating as a leading steel manufacturer that prioritizes sustainable industrial development alongside responsible environmental stewardship.
3. The organization’s greenhouse gas emissions throughout the Life Cycle Assessment (LCA) of SSI and TCRSS, in collaboration with the Worldsteel Association.
Sahaviriya Steel Industries Public Company Limited (SSI) and Thai Cold Rolled Steel Sheet Public Company Limited (TCRSS) have continuously participated in the Life Cycle Assessment (LCA) project with the World Steel Association (Worldsteel) for several years until now. The purpose of this participation is to develop and improve the environmental databases of steel production processes to be accurate, complete, and consistent with international standards such as ISO 14040 and ISO 14044.
Operating under the Worldsteel LCA framework allows the company to assess environmental impacts throughout the product lifecycle, from raw material sourcing, manufacturing processes, energy and resource consumption, transportation, and end-of-life management. The results are used to inform environmental management strategies, reduce greenhouse gas emissions, improve manufacturing process efficiency, and transparently and verifiably communicate environmental information to stakeholders. LCI data collection for the group of companies was completed and reported to Worldsteel in November 2025, with summary results expected by early 2026.
The company’s continued participation in the program reflects its and its subsidiaries’ commitment to conducting business in accordance with the principles of sustainable development, social and environmental responsibility, and aligning operations with international steel industry best practices, as well as supporting long-term environmental requirements and market expectations both domestically and internationally.
4. Developing a Sustainable Green Steel Supply Chain with Business Partners
The company has provided consulting, knowledge support, and disseminated environmental performance results, including greenhouse gas management, to stakeholders of the group of companies. This is to promote sustainable supply chain management for Pacific Pipe Public Company Limited (Prapradang, Mahachai 2 and 3). The goal is to obtain Carbon Footprint of Product (CFP) certification for all product types, totaling 47 product groups. As a result of its operations, Pacific Pipe Co., Ltd. (Public) successfully registered its CFP label with the Thailand Greenhouse Gas Management Organization (TGO) in October 2025 and received approval for label registration from the committee on November 25, 2025.