Materiality Topics

Identify material issues that affect the sustainability of the company, covering economic, social and environmental dimensions and consider risks and opportunities of the company’s business from both internal and external factors throughout the supply chain. The information for consideration and decision are as follows:

Internal Factors

• Strategic direction of the company
• Important risks and opportunities of the company, including finance, investments, operations, etc.
• GC’s Sustainability Framework
• Evaluation results for sustainability organizations
• Data collection from multiple channels, both primary
• data, such as interviews, surveys, etc., and secondary
• data, such as letters, whistleblowers, etc., carried out
• by the company’s departments whose responsibilities
• are related to the key issues.
• Challenges in operating systems and competency of Personnel

External Factors

• Survey of stakeholder’s expectations throughout the value chain
• Materiality issues that stakeholders are interested in
• UN Sustainable Development Goals (SDGs) Investors Ranking
• Global megatrend and business trend of the petrochemical and chemical industry

Prioritize materiality issues in accordance with the evaluation of risk and opportunity from the business operation and stakeholders’ interests. To establish the material issues matrix from stakeholders’ and GC’s perspective, the representative of the department that related to each stakeholder collaborates with the company’s specialists to evaluate and prioritize the material issues in High, Medium, and Low. The prioritization of material issues is considered based on two aspects as follow:

1.Improtance to Stakeholders

Significant issues that stakeholders are interested in. The information was obtained from stakeholder engagement through the company’s departments, company’s feedback channels and also include direct and indirect discussions with stakeholder groups.

2.Significance to GC

Significant economic, social and environmental impacts which affect business operations

• Consolidate and conclude materiality issues evaluation and Identify the linkage between material issues and GRI topics, in addition, specify the reporting scope of each issue. Then, gathering and summary the evaluation results of material issues and present the results to the Sustainable Development Committee.
• The Sustainable Development Committee reviews the evaluation results of key issues to be in compliance with context, goals and strategies of the company and approves the disclosure of sensitive and specific information that may affect the business of the company. The content of this report covers and highlights the material issues and is categorized as high and moderate levels. It also includes some material issues in low levels, namely Sustainable Environmental Management System, Supply Chain Management and Contribute to Society.
• The Sustainable Development Committee summarizes the sustainable performance and present to Management Committee and Corporate Governance Committee for consideration.
• Departments prepare the information for establishing the report content. The Sustainable Development Committee and external agencies review its completeness, transparency and accuracy.
• An independent external agency audits the evaluation process of material issues, stakeholder engagement and data collection, to ensure that the obtained information is accurate, clear and completed.

Disclosed data in the Integrated Sustainability Report is reviewed continuously. Additionally, feedbacks and recommendations from stakeholders and readers who provided feedbacks on the survey on the Integrated Sustainability Report are gathered. Comments and recommendations are considered for improvement of forthcoming reports in the future and to ensure that information content is appropriate and in compliance with the issues relevant for disclosure.