Water Security

Although the Group’s cement production uses a dry process, which requires relatively low water consumption compared with other industries, the Group continues to place importance on strengthening water security and managing water resources efficiently. Targets have been established to reduce specific water consumption and to increase the proportion of water drawn from surface water sources, in order to promote sustainable water use, reduce reliance on groundwater, and mitigate water-related risks that may affect business operations in the long term.

Water Management Targets

2030 Targets Compared with the 2020 Baseline

Reduce specific water consumption
by more than
20
Reduce specific water consumption by more than 20%
Increase surface water use
to more than
45
Increase surface water use to more than 45% of total water use to reduce reliance on groundwater

Performance against Targets

Indicator Base year
2020
2023 2024 2025 Target
2030
Specific water consumption (litres/tonne of cement)
301 248 246 248 240
Surface water utilization (%)
2 38 37.5 39.9 45

Remarks:

  1. Targets and the base year cover the Group’s cement business in Thailand, Vietnam, Bangladesh and Sri Lanka, and the waste heat power generation business, including the joint venture Chip Mong Insee Cement Corporation.
  2. 2023 performance covers the Group’s cement business in Thailand, Vietnam, Bangladesh and Sri Lanka, and the waste heat power generation business, including the joint venture Chip Mong Insee Cement Corporation.
  3. The Company revised its reporting boundary: 2024–2025 performance covers the Group’s cement business in Thailand, Vietnam, Bangladesh and Sri Lanka, and the waste heat power generation business.

Strategy

Reduce unnecessary water losses throughout the production process.
Continuously identify opportunities to improve water-use efficiency.
Operate in accordance with the guidelines and tools provided by the Global Cement and Concrete Association (GCCA).
Strengthen efforts to increase surface water capture to enhance water security.

Water Management Approach

The Group recognizes the importance of managing water resources efficiently and sustainably to strengthen water security and reduce risks that may affect business operations in the long term. Although the Company’s cement production uses a dry process, which requires relatively little water compared with other industries, the Company continues to manage water systematically, covering the monitoring, measurement and evaluation of water-use efficiency, to support responsible water use and make the best use of water resources.

In 2025, 100% of the plants in the Company’s cement business in Thailand, Vietnam, Bangladesh and Sri Lanka had water management plans covering the measurement and monitoring of water consumption, water risk assessment, and the continuous implementation of water efficiency measures. None of the Group’s operating sites is located in a water-stressed area or faces severe water scarcity.

The Group applies the guidelines and analytical tools of the Global Cement and Concrete Association (GCCA) to identify and monitor potential water-loss points and to find opportunities to improve water efficiency and make the best use of water resources. The Company has also developed water storage facilities at its plants in each country to collect surface water from excavated ponds, quarry pits and rainwater for use in production. This helps ensure sufficient water for continuous operations while reducing reliance on groundwater, in line with the Group’s 2030 sustainability targets.

To drive effective water management, every plant in the cement business has appointed a Water Management Committee to oversee, supervise and systematically monitor water performance. The Committee’s key responsibilities are to:

  • Review and develop the Water Diagram to keep it comprehensive and up to date.
  • Verify the accuracy of water meters and update related data.
  • Inspect and analyze the Water Balance to identify opportunities to improve water efficiency.
  • Test and inspect the performance of water meters, and repair or replace them when faults are found.
  • Survey water meters and water pipelines and maintain a Water Meter List.
  • Inspect water leakages and prepare preventive maintenance plans for high-risk areas.

The results of these processes are analyzed to develop water efficiency plans and measures, and to drive projects that promote water recycling, increase the use of surface water and reduce reliance on groundwater. The Company regularly monitors performance and reviews its plans to continuously improve water management and ensure alignment with its sustainability goals.

The Group is committed to operating in an environmentally responsible manner, strictly complying with applicable laws, regulations and water quality standards. It regularly inspects the performance of its wastewater treatment systems and monitors effluent quality to ensure that discharged water meets the prescribed standards. In 2025, the Group recorded no incidents (0 cases) of non-compliance with laws, regulations, permits or standards related to water quality and quantity, reflecting the effectiveness of its ongoing environmental management and controls.

In addition, the Group is a member of the Global Cement and Concrete Association (GCCA) and follows the GCCA Sustainability Guidelines, which include the regular monitoring and reporting of water use data against key indicators, promoting transparency and continuous improvement in water management.

For operations in Saraburi Province, water use data was reviewed as part of the product carbon footprint assessment process by Kasetsart University, which conducted the verification in accordance with the Product Category Rules for cement products of the Thailand Greenhouse Gas Management Organization (Public Organization). This enhances the credibility of the data and supports the Company’s sustainability disclosures.

In 2025, the Saraburi Plant, Thailand, did not set mining production water consumption/withdrawal intensity as a dedicated key performance indicator. However, the Company continuously collects and monitors data on water consumption and on the volume of raw materials produced from mining activities, such as limestone and shale, which enables it to calculate and disclose the water intensity of mining activities for the reporting year and prior years. Most of the water used in mining activities is surface water, in line with the Company’s approach of reducing reliance on groundwater and promoting the sustainable use of alternative water sources. These data are used to assess water efficiency, track performance trends and support water resource management to reduce long-term water risks.

Mining Production Water Intensity, Saraburi Plant, Thailand (Mining Production Water Consumption/Withdrawal Intensity)

Indicator 2023 2024 2025
Mining production water intensity (litres/tonne)
12.0
-
14.5
+20.8% YoY
12.6
-13.1% YoY

Wastewater Discharge and Quality

The Group’s cement plants use a dry process and therefore do not discharge any process wastewater from cement production outside the plants.

Table 1: Wastewater discharge by destination (cubic meters)

Destination 2023 2024 2025
Surface water ([name of receiving water body]) N/A N/A 475,987
Groundwater N/A N/A 0
Seawater N/A N/A 0
Third-party treatment N/A N/A 0
Total wastewater discharge 907,000 662,424 475,987

Remarks: (1) Covers the Group’s cement business in Thailand, Vietnam, Bangladesh and Sri Lanka, and the waste heat power generation business. (2) Disclosure by destination began in 2025. (3) Source: ESG Data 2025, page 11.

Table 2: Wastewater discharge at Saraburi Plant (cubic meters)

Wastewater discharge (m³/year)
Plant 2023 2024 2025
Total 192,459.64 164,325.45 136,793.80

Table 3: Wastewater quality at discharge points, Saraburi Plant (annual average)

Parameter (unit) Regulatory limit * 2023 2024 2025
pH <5.0-9.0 7.7 8.0 8.0
COD (mg/L) <120 88.1 89.6 65.3
TSS (mg/L) <50 22.9 27.6 24.0
TDS (mg/L) - - - -
TKN (mg/L) - - - -

Table 4: COD Load Intensity at discharge points, Saraburi Plant

COD Load Intensity is calculated from treated wastewater from domestic activities within the plant; the calculated results are shown in the table below. COD load is calculated by multiplying the annual average COD of treated effluent (mg/L) by the volume of effluent discharged from the treatment system (m³/year) and converting the result to kilograms of COD per year. This is then divided by annual cement production to express COD Load Intensity in kg COD/tonne product.

Indicator 2023 2024 2025
COD load per tonne of cement produced (kg COD/tonne cement)
0.00184
-
0.00156
-15.2% YoY
0.00095
-39.1% YoY

Important Projects

The Group recognizes the importance of efficient and sustainable water resource management to address uncertainties arising from climate change and changing water quality in each area, which may affect operational continuity and business costs in the long term. The Group therefore systematically assesses and manages water-related risks by regularly monitoring and evaluating the costs associated with water resource management, such as expenses for securing backup water sources, treating and improving water quality, managing and maintaining water storage facilities, and complying with applicable water-related laws and regulations. This strengthens water security, reduces the risk of water shortages and supports sustainable business operations.

In 2025, the Saraburi Plant, Thailand, incurred water-related risk costs of approximately THB 9.6 million, comprising groundwater permit renewal fees, groundwater usage fees, groundwater quality monitoring costs and effluent quality monitoring costs. These costs reflect regulatory risks related to groundwater use, as well as water availability risks from drought, which could affect business operations. To mitigate these risks and strengthen long-term water security, the Group has set targets to increase surface water use to more than 45% of total water use and to reduce specific water consumption by more than 20% by 2030 compared with the 2020 baseline, supporting efficient and sustainable water use.

The Group works to reduce water risks and enhance long-term water resilience through continuous investment in and development of water management systems, covering water efficiency, water reuse and additional backup water sources for operations. Examples include the water metering system improvement project, which improves the accuracy of monitoring and controlling water use; the development of a water recycling system in the waste heat recovery (WHR) power generation system; and the collection and use of rainwater in production processes.

  • Water Metering System Improvement Project The Group has invested in improving its water metering system by introducing variable speed drives (VSD) to improve water flow and reduce leakage. A mobile application has also been developed for recording water meter readings, enabling accurate and convenient tracking of water consumption. This allows water resource use to be tracked systematically and with high accuracy, making the monitoring of water use more efficient.
  • Online Water Quality Monitoring System Project In 2025, the Saraburi Plant, Thailand, invested approximately THB 2.3 million to develop and enhance real-time water quality monitoring both inside and outside the plant. The system enables continuous monitoring of water quality, analysis of water quality trends and timely alerts of abnormalities. It supports decision-making in water resource management, reduces water quality and regulatory compliance risks, and strengthens the organization’s long-term water security and sustainability.
  • Plant Water Leakage Reporting Project The Group runs a water leakage reporting activity across all its plants, inviting employees and contractors to take part in inspecting and reporting water leaks in operational areas. This encourages proactive reporting and prompt resolution of issues, while supporting efficient water use and lower operating costs. The activity covers the Company’s cement business in Thailand and overseas.
  • Surface Water Reservoir Project The Group has constructed reservoirs as backup surface water sources at several operational areas: two in Saraburi Province, namely the Open Pit reservoir with a capacity of approximately 200,000 cubic meters and the P8 reservoir with a capacity of approximately 25,000 cubic meters; in Vietnam, at the Cat Lai Port area and the Hiep Phuoc plant area; and in Sri Lanka, at the Puttalam plant area. Water from these surface water reserves is used for pollution control and temperature control in production processes, replacing and reducing reliance on groundwater in line with the Group’s 2030 sustainability target of increasing surface water use to more than 45%.
  • Zero Discharge Project The Group places importance on wastewater management. Water used in production processes within the Company’s operational areas is treated and fully reused, so that no process wastewater is discharged to external water bodies. In addition, in Vietnam, a waste heat recovery (WHR) water treatment system has been installed at the Hon Chong plant, where 10,000–15,000 cubic meters of production water is treated and reused each year. The treated water can also be used at the Hon Chong plant and Cat Lai Port for the Company’s other businesses. In 2025, the Group reused a total of 96,956 cubic meters of recycled water in its operations.