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 2020

Climate-Related Risks Mitigation Measures
Transition Risk
  • Laws and regulations on greenhouse gas reduction that may increase GC’s operation costs.
  • Higher demand for carbon technology investment.
  • Differentiating the green product and petrochemical flexibility portfolio to serve the increasing demand in the market
  • Invest in research and development of low-carbon products and a production process that optimizes the use of emitted CO2. Revised in accordance with TCFD
Physical Risk
  • Water shortage in the production process due to drought caused by abnormal precipitation.
  • Flooding that may disrupt operation and cause delay in raw material delivery process
  • Conduct regular drought sensitivity analysis based on the water level in key reservoirs where our production facilities are located.
  • Invest in wastewater reclamation projects to reuse reclaimed water in the production process using the Wastewater Reverse Osmosis (WWRO) and Sea Water Reverse Osmosis (SWRO) technologies.
  • Invest in pipeline and cooling systems from the SWRO unit to avoid loss of water in the system.
  • Reduce water consumption across the organization and in GC Group based on the 3Rs principles.

GC has assessed impacts of how the climate-related risks and opportunities influence the strategy in various aspects.

Impact by areas Mitigation Measures
Products and services due to the awareness of the public on “scarcity resources”

GC focuses on establishing the Circular Economy Strategy and implementation, and promoting knowledge-sharing sessions for all sectors and building awareness on resource efficiency through training and workshop.

Supply chain and/or value chain disruption due to the drought crisis and water shortage

GC has established GC Group - water management taskforce to conduct internal water crisis management. GC has also collaborated with several sectors in private, government sectors and all stakeholder groups. These include Water War Room and The Federation of Thai Industries in order to deal with potential occurrence of drought crisis.

Investment in R&D in response to the future trends of consumer and investor needs

GC has aligned its innovation strategy with its business directions and action plans by focusing on process efficiency enhancement and product value creation. GC also designs and develops society friendly and environmental friendly products and clean energy in response to the future trends of consumer and investor needs.

Operations in regard to efficiency technology

GC develops strategy and roadmap that focus on energy efficiency enhancement and investment in energy saving technologies, namely renewable energy. GC has monitored its performance in enhancing energy efficiency and reducing greenhouse gas emissions, aiming to achieve long-term target set.

  • GC focuses on the development of green products that are reusable and environmentally-friendly. Our renewable raw materials such as corn, palm oil, cassava and sugarcane will generate green products such as fatty alcohol, glycerin. It is expected that these feedstock and plastic recycle can generate revenue up to 30 percent in 2020 and 1,425 million baht in 2022 respectively.
  • GC allocate funding for the GHG reduction programs in support with GHG emissions targets.
  • GC conducts feasibility study for the worth investment of low carbon technology, energy efficiency and renewable energy.