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Supply Chain Management Supplier Relationship Management and Capacity Building

Green Procurement and Logistics

GC’s procurements are executed in accordance with PTT Group’s Procurement Policy which serves to align procurement operations of PTT Group companies. GC strives to operate our business towards sustainable growth in conjunction with corporate governance for the community, society, and environment. The company also implements the Green Procurement Policy which features the procurement of products or services that produce lower impacts on the environment in comparison with conventional products and services of the same function. The criteria based on ISO 20400:2017 have been applied to the joint procurement of products and services by PTT Group companies, taking into account the entire life cycle, from raw material procurement, production, selection of appropriate energy and technology, packaging, transportation, usage, and end-of-life management.

GC has established a procurement framework that gives special consideration to suppliers with eco-friendly products and services coupled with other factors, such as price, quality, and delivery, to create motivation and shared values for the company, suppliers and the society. In 2022, green procurement jobs were worth a total procurement value of 12 billion baht, or equivalent to 40% of the total value.

Building Green Network

GC recognizes the importance of creating a green network by exchanging know-how with and developing partners to address environmental, social, and governance issues relating to the company's operations. This encourages a value-added supply chain for all parties that also benefits surrounding communities and the environment. The green network is aligned with supplier relationship management as well as GC's Green Industry Level 5 certification by the Industry Promotion and Development Office in 2015.

GC has been conducting training sessions and conferences with suppliers for four years. We want to continuously develop their capabilities and understanding of the requirements for the sustainability of PTT Group's supply chain management approach under our Operational Excellence Management System (OEMS) project. This system supports suppliers and sub-contractors to achieve good governance in the areas of safety, environment, and risk management.

For instance, conducting pre-task contractor trainings, hosting the Supplier Annual Conference, giving advice to and planning capacity development for suppliers who did not pass the assessment, and monitoring performance through on-site assessments or other communication channels, such as e-mail, telephone or meetings via electronic media, etc.

Procurement of Green Products

The lack or shortage of raw materials is accounted for one of GC's business risks. In order to have a better management on raw material procurement, GC has worked closely with their suppliers in procurement in emergency situation, through monthly meeting with critical suppliers to identify the short term and long term of procurement plan, factory maintenance plan, the monthly performance, the emergency mitigation plan and the procurement of green products.

Green Logistics Programs - Conduct Program to Improve the Environmental Performance of its Logistics and its Fleet Management

GC has collaborated with PTT, main suppliers and other company in PTT group on efficient ocean freight transportation in order to make sure that the companies have complied with safety and environment standards and regulations of sea transportation. This matter is considered to be a proactive action in order to reduce the risks to the operation and to reduce the accidents that might have a major impact to society and environment.

Local Procurement of Products and Services GRI 204-1

GC encourages the procurement of products and services from local sources (referring to procurement within Thailand) and areas where the establishments are located in order to support the local economy, create jobs, and generate income for local people along with efficiently procuring raw materials and promoting the economy and quality of life in the community. The company continuously supports the procurement of products and services from local vendors in Rayong province through the Local Vendor Spending Program. At present, GC supports products and services from local vendors who meet the company’s standards. In 2022, products and services were procured from 18 local communities, which is equivalent to a value of 135.67 million baht.