Our Approach and SDGs Economy Society Net Zero Business Resilience Reporting Center Sustainability in Actions Awards and Recognitions
Environmental Management System and Investments Energy Management Air Quality Sustainable Water Waste Management Product Stewardship Circular Economy Biodiversity
Climate Change Strategy and Target Climate Change Governance GHG Reduction Initiatives Climate Partnership

Climate Change Risks and Opportunities

GC has assessed risk factors, impacts, and opportunities associated with climate change that may directly and indirectly occur and affect our business, in accordance with the National Determined Contributions (NDCs) and the International Energy Agency’s (IEA) Two Degree Scenario (2DS) which limits warming to no more than 2 oC. GC has disclosed beneficial information on risk management to investors and stakeholders, in line with the guidelines of the Task Force on Climate-related Financial Disclosures (TCFD). Additionally, GC has applied these risk factors as indices in governance, strategy planning and formulation of effective climate change plans in the alignment with international standards.

Moreover, GC has considered environmentally friendly technology as part of decision making in an investment of future projects in order to ensure the effectiveness of overall greenhouse gas management, which is linked to the strategy execution risk, investment risk and policy & regulatory change risk.

Enterprise Risk Management Committee (ERMC) has been assigned to closely monitor our risk management performance on a monthly basis and reported to Management Committee (MC), which chaired by CEO and comprised of top executive managements to review the performance of climate related risk/opportunity management and provide recommendations on further strategy or action plan. The MC will escalate the risk management report to the RMC respectively every quarter. Additionally, in case, there is an investment of low carbon projects required, CEO as chairman of Investment Committee will make decision through this committee.

Below is a summary of key risks and opportunities related to climate change as well as GC’s mitigation measures in 2023

Climate-Related Risks Mitigation Measures
Transition Risk

Market Dynamics and Carbon Price Changes

Many countries have announced targets to reduce greenhouse gas emissions and established more intense climate change policies, such as implementing carbon taxation, using carbon tax as a trade barrier tool through the Carbon Border Adjustment Mechanism (CBAM), encouraging the use of electric vehicles and clean energy, etc. These mechanism may increase GC’s operation cost.
  • Establish Sustainability Governance Structure to govern and manage on decarbonization, including define KPI that cover from director level through to operational level in order to achieve short-term, medium-term, and long-term goals in 2050
  • GC has defined climate management plans and strategies which highlight on enhancing energy efficiency and increasing investment in energy-saving technology, such as alternative energy and renewable energy projects, while also closely monitoring performance to achieve greenhouse gas emissions reduction target.
  • GC has participated in the Thailand Voluntary Emission Trading Scheme (Thailand V-ETS) to prepare for the trading of Thailand’s greenhouse gas emissions rights, and moving towards to low-carbon organization.
  • Determine Internal Carbon Price as a factor of consideration for investment and a tool to assess the impacts of business projects from increased or reduced greenhouse gas emissions. Regularly encourage new greenhouse gas reduction projects.
  • Invest in research and development of low-carbon product, Carbon Capture and Storage (CCS) technology, and renewable energy.

Biofuel Demand

Consumer and entrepreneur behavior has changed due to the low-carbon economy trend, as they give more importance to environmentally friendly products and low carbon product, as well as bioenergy (including biofuels). This may be an opportunity for the company to expand the product market. As a result, the company can generate more income.
  • GC focuses on investing in modern technologies to enhance production efficiency and utilize clean energy.
  • Adjust business portfolio towards low-carbon business, such as specialty chemicals business (High Value Business: HVB) through enhancement and allocation of investment fund in accordance with GC’s business strategy.
  • Focus on adding product value by inventing and developing new products, while allocating resources to promote high-value product capabilities and low-carbon products such as low carbon technology, biofuel production, bioplastics and recycled products.
Physical Risk

Drought

Water shortage in the production process can cause process disruption, affecting GC’s operational credibility. GC might be faced with higher production costs due to increased costs in water procurement to ensure sufficient water supply for production and other future projects.
  • Continuously monitor and assess risks from drought as well as issue mitigation plans and business continuity plans in the case of drought.
  • Enhance water efficiency in the production process, utilize renewable water, support investment in waterrelated technology, streamline production process, and seek alternative water supply, such as Sea Water Reverse Osmosis (SWRO) and Wastewater Reverse Osmosis (WWRO), etc.
  • Conduct study on possible approaches in acquiring backup water supply and implement new technology for water production
  • Establish a network with the government, private and industrial sectors while taking up a major role in the planning and management of water and natural disasters at both local and national levels.

Floods

Floods may interrupt operations and directly impact GC in the form of revenue loss. Floods may also compel feedstock suppliers to delay the delivery of raw materials
  • GC preventive measures include taking actions in sewer system survey and maintenance prior to the raining season. These also include site monitoring during heavy rain, feasibility study on plan design and the construction of flood wall that can cope with the flood from the historical data
  • Study to build hard wall (consideration of applied historical flooding data about 2 times of historical raining rate 130 mm.)
  • Prepare flood barriers using sandbags and mobile pumps to reduce water level in case of flooding.
  • GC collaborates with PTT group to actively engage other key stakeholders to participate in Water War Room Rayong