Innovation Strategy and Targets

GC recognizes the critical role of innovation in building competitive capabilities and sustainable growth for the organization. In a rapidly changing business world, innovation not only enables the Company to respond efficiently to customer needs but also serves as a key mechanism for reducing environmental impacts and supporting the achievement of the organization's sustainability goals.

GC has established an innovation management framework under the GC Innovation Framework, which encompasses research and development of new technologies, fostering collaborations with business partners, educational institutions, and startups, as well as promoting an organizational culture that supports creativity and experimentation with new ideas. Resources and budgets are continuously allocated to support innovation projects.

In addition to developing new products and technologies, the Company is committed to creating innovations aimed at reducing the use of hazardous substances. The Company seeks collaboration with industry associations to identify approaches for substituting hazardous substances, including allocating resources and budgets for research and development (R&D) to achieve the goals of replacing and reducing the use of hazardous substances in products, in compliance with various laws and standards such as the Candidate List of Substances of Very High Concern for Authorisation above 0.1% by weight (EU Regulation) and UK REACH Regulation, among others.

Commitment

GC strives to be an innovation leader who creates difference through the application of modern technology. The company places emphasis on customer-centric innovation in tandem with the development of products and processes that align with our business direction to boost competitiveness. Accordingly, GC has implemented a policy to invest in and support R&D in order to enhance intellectual property and technology that is ready to respond to the chemical industry’s diversified changes. Meanwhile, GC also aims to become a learning organization that allows all employees to take part in creating innovation in a bid to promote sustainability and social responsibility alongside business growth.

Business Strategies

Business uncertainties must be efficiently managed in order to cope with current operational volatility. In doing so, GC has employed a dual management approach. In low-uncertainty situations, GC attempts to maintain our competitiveness and create a differentiated market positioning by focusing on value proposition and efficient business expansion through exploitation. Meanwhile, in situations of high uncertainty, GC must seek new business ideas and opportunities through continuous experimentation and development while placing emphasis on the speed of implementation in order to reduce potential risks (Exploration).This approach helps achieve the Company's vision of becoming a leader in innovation by creating differentiated solutions for customers through competitive technologies and new business initiatives.

GC places significant emphasis on the continuous management and development of innovation to support research and foster innovations that enhance competitiveness while being environmentally friendly. It has defined its innovation management strategy in the form of 3 Horizons, comprising: 1) Strengthening the Core: elevating technology to increase competitive capabilities, 2) Striving the Growth: exploring opportunities in new businesses and continuously developing innovations, and 3) Sustaining the Future: seeking future business opportunities that sustainably meet demands, such as sustainable composite materials and carbon capture.

In the past year, to elevate operations in response to the GC’s business strategy and customer expectations, the Company reviewed and updated its strategic plan for innovation management, encompassing product innovation, process innovation, and investments in the form of Corporate Venture Capital (CVC). This strategy consists of 3 main dimensions, as follows:

1. Developing innovation to enhance capabilities for diversified products: Focusing on elevating production process and technology capabilities through value addition to by-products and the development of sustainable products, while applying digital technologies to improve workflows for greater efficiency and reduced time-to-market.
2. Developing customer-centric solutions (Providing Customer-centric Solution): Through expanding the portfolio of high-value products (High Value Products) and offering new, differentiated solutions to create maximum customer satisfaction. This includes establishing an Innovation Hub to enhance innovation capabilities and generate value from synergies.
3. Investing in new businesses (New Business Incubation): Emphasizing the creation of new businesses distinct from existing ones, with the Company prioritizing high-growth potential businesses such as Composite, EV Battery, Green Solution, and Bio-Muconic Acid, as well as investments in Venture Capital. This promotes open innovation through long-term collaborations with networks, organizations, and external experts, via both direct and indirect investments in innovation.
4. Promoting an innovation culture within the organization (Innovation Culture): To foster sustainable innovation creation that considers society and the environment, while delivering sustainable business outcomes for GC

Additionally, GC has cultivated an Innovation Culture through the creation of networks in the Innovation Hub, co-value creation, and communication to expand knowledge sources to external individuals, ensuring that the application of innovation to create tangible business results occurs effectively.