Climate Change Strategy and Target

Management Approach GRI 3-3 ^{GRI 3-3 (2021)}

Climate Strategy

GC has established both short-term and long-term strategies for energy management and climate change in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) and International Financial Reporting Standards (IFRS) S2: Climate-related Disclosures.

Our climate change action plan focuses on enhancing the production process, energy management and energy conservation to achieve optimal efficiency. We also consider the possibility of utilizing alternative energy to uplift our performance in greenhouse gas reduction while planning to expand the scope of operations to incorporate scope 3 value chain emissions.

1. Efficiency-Driven: Enhancing production process efficiency by using technologies to lower energy consumption and shifting to renewable or low-carbon energy.
2. Portfolio-Driven: Adjusting investment in High Value Business (HVB), which focuses on the development of three business groups, namely: Specialty & Performance Chemicals, Bio-based Products, and Recycled Products.
3. Compensation-Driven: Offsetting carbon to manage residual greenhouse gas from production processes and business operations by studying and implementing the Carbon Capture Utilization and Storage (CCUS) technology and nature-based solutions

More information of GC’s Decarbonization Pathways is available at Net Zero

GC has defined unequivocal management guidelines and medium-term goal to cut down greenhouse gas emissions by 20% within 2030. This is part of the process towards achieving net-zero emissions in 2050 and is in line with the Paris Agreement. Accordingly, GC supports and encourages customers and suppliers to participate in the endeavor to accomplish such a goal. Moreover, the company is committed to conducting business through cooperation and engagement with various organizations around the world to maximize operational efficiency. GC has incorporated stakeholder engagement into the low carbon pathway framework as it coincides with the goals of the Paris Agreement and can also stimulate the accomplishment of the low-carbon business goal.

GC has set climate-related targets and Key Performance Indicators (KPI) to monitor GC’s performance and support global ambition to reduce effect caused by climate change. Hence, GC’s climate-related target has set in accordance with national and global targets, for instance, Thailand’s Nationally Determined Contribution (NDC), Paris Agreement in the 26th Sessions of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) and Sustainability Development Goals (SDGs), which emphasis on reducing greenhouse gas emission from its operations by enhancing energy efficiency and encouraging alternative energy. These are aligned with the Sustainable Development Goal 7: Affordable and Clean Energy (SDG 7), and Sustainable Development Goal 13: Climate Action (SDG 13) of the United Nations, as well as Carbon Disclosure Project (CDP).

(UN SDG 7: Affordable and Clean Energy)

(UN SDG 13: Climate Action)

To achieve the mentioned target, GC has analyzed internal and external risk factors, which may affect the business operation in both short-term and long-term. Additionally, GC monitors the Emerging Risks from the Early Warning System to identify climate change risks that may cause widely impacts on GC and/or industry over the next three to five years. Therefore, GC has established risk and crisis management approaches to manage risk within an acceptable limit in response to GC’s Climate Change Strategy.