Materiality Topics

Value Chain

• Operations
• Products/Services
• Supply Chain

• Save operating costs
• Reduce greenhouse gas emissions

• Climate change
• Loss of income
• Increase operating costs

• Short-term
• Long-term

27. Right to an adequate standard of living (Housing, Food, Water & Sanitation): UDHR 25

31. Right to self-determination: UDHR 21

Strategic Risk:

• Decarbonization Implementation

Emerging Risk:

• Climate Change Risk

GC has established its Energy and Climate Strategy in alignment with IFRS S2 – Climate-related Disclosures, focusing on three strategic pillars: (1) Efficiency-driven: Leveraging advanced technologies to enhance operational efficiency, (2) Portfolio-driven: Transitioning towards a high-value, low-carbon business portfolio, and (3) Compensation-driven: Advancing carbon capture and offset initiatives to achieve net-zero greenhouse gas (GHG) emissions. The strategy also includes the expansion of Scope 3 GHG emissions reduction efforts across GC’s entire value chain.

• Reduce greenhouse gas emissions (Scope 1 and 2) by 20% within 2030
• Reach net zero emissions (Scope 1 and 2) by 2050*

Remark: *Executive KPI

• 2050

• Greenhouse gas emissions (Scope 1 and 2) of 8.08 million tons of CO2 equivalent
• Additional greenhouse gas reduction (Scope 1 and 2) of 79,884 tons of CO2 equivalent per year* through project implementation.

Value Chain

• Operations
• Products/Services
• Supply Chain

• Reducing environmental impact
• Increase revenue from new business

• Climate change issues
• Loss of capital expenditure

• Short-term
• Long-term

31. Right to self-determination: UDHR 21

Business as Usual Risk:

• Market Volatility and Business Performances

Emerging Risk:

• Change in Regulatory to Promote the Reduction of Plastic Use and Plastic Waste

GC has established an Innovation Management Strategy built on three strategic pillars: Strengthening the Core by enhancing existing businesses, Striving for Growth by exploring new business opportunities, and Sustaining the Future by incubating future-focused ventures. To drive innovation effectively, GC focuses on five key areas: (1) developing process innovation, (2) creating product innovation, (3) promoting new business growth through an Innovation Growth Platform, (4) investing via Corporate Venture Capital (CVC), and (5) reinforcing governance and support units (Enabler) to ensure effective innovation management.

• Increase proportion of innovation contribution* to GC’s EBITDA Not less than 10 percent by 2030*
• Increase proportion of investment in Corporate Venture Capital (CVC) in 4 technology groups for 70 million USD by 2025

Remark: *Executive KPI

• 2025
• 2030

• 8.3 percent of overall GC's EBITDA
• 54.8 million USD

Value Chain

• Operations
• Products/Services
• Supply Chain

• Promote health and well-being
• Reduce accidents
• Reduce costs

• Impacts on employee health
• Loss of income from operation disruptions

• Short-term
• Long-term

1. Right to life: UDHR 3

23. Right to social security, including social insurance: UDHR 22

25. Right to enjoy just and favorable conditions of work (including rest and leisure): UDHR 23 and 24

28. Right to health: UDHR 25

Business as Usual Risk

• Operational and Safety

GC has established a policy on Safety, Occupational Health, Environment, and Business Continuity (QSHEB) and adopted standards such as ISO 45001. The company developed a Safety Plan for 2021–2026, covering all aspects of safety management with a strong focus on proactive risk management to minimise accidents. GC also promotes the B-CAREs culture and operational discipline among employees, contractors, and partners to support the achievement of its corporate objectives.

• Zero safety complaints and zero unplanned shutdowns due to accidents
• Strive to be Zero Accident Organization with zero employee and contractor fatalities due to work-related accidents
• Zero Lost Time Injury Frequency Rate (LTIFR) of employees and contractors 0.00 case per 1 million man-hours
• Total Recordable Injury Rate (TRIR) of employees and contractors not exceeding 0.35 cases per 1 million man-hours in 2027
• Zero Process Safety Event (PSE) Tier 1*

Remark: *Executive KPI

• 2027

• 0 case
• 0 case
• 0.00 case per 1 million man-hours
• Not exceeding 0.45 cases per 1 million man-hours
• 0 case for Process Safety Event (PSE) Tier 1

Value Chain

• Operations
• Products/Services
• Supply Chain

• Transparent and clear governance builds stakeholder confidence
• Governance guidelines attract investment and increase market value

• Ineffective governance increases the risk of corruption and financial loss

• Short-term
• Long-term

6. Right to equality before the law, equal protection of the law, non-discrimination: UDHR 7

19. Right to freedom of opinion, information and expression: UDHR 19

24. Right to work: UDHR 23

25. Right to enjoy just and favorable conditions of work (including rest and leisure): UDHR 23 and 24

27. Right to an adequate standard of living (Housing, Food, Water & Sanitation): UDHR 25

Strategic Risk

• People and Organization

GC has appointed a dedicated committee and defined its roles to ensure good corporate governance, establishing policies in compliance with laws and international standards. It promotes an ethical corporate culture, with leadership serving as role models. In addition, a monitoring system and whistleblowing channels are in place to enable stakeholders to report concerns appropriately.

Gain stakeholder confidence, grow sustainably and achieve GC’s vision.

• 2030

Obtain excellent stakeholder confidence level:

• Shareholders 86%
• Suppliers 93.7%
• Communities 92.7%

Value Chain

• Operations
• Products/Services
• Supply Chain

• Conserve limited resources by reducing raw material usage and supporting sustainable management
• Empower communities and entrepreneurs by creating jobs for local economies
• Low-carbon products reduce carbon and support sustainable solutions
• Increase revenue and profit by responding to the demand for eco-friendly products
• Consumer safety and well-being

• Lack of renewable resources affect energy security
• Long-term environmental contamination due to ineffective management
• Health impact as a result of ineffective waste management
• Higher operating costs due to search for renewable resources

• Short-term
• Long-term

28. Right to health: UDHR 25

31. Right to self-determination: UDHR 21

Business as Usual Risk:

• Market Volatility and Business Performance

Emerging Risk:

• Change in Regulatory to Promote the Reduction of Plastic Use and Plastic Waste

GC has developed a mechanism for sustainable product management by determining product evaluation and classification criteria covering five important characteristics, namely Greenhouse Gas Emission, Sustainable Raw Materials, Product Circularity and Design, Energy Management, and Hazardous Materials and Substances. GC also encourages sustainable product development through innovation processes to create business value in response to market demands and promote long-term sustainable development

• Expand sustainable product portfolio
• All GC products have undergone environmental impact assessment*

Remarks: * Product environmental impact assessment (EIA) refers to the process of evaluating the potential environmental effects of a product or service as defined by the Dow Jones Sustainability Indices (DJSI), which can be categorized into three groups:

1. Full Life Cycle Assessment (LCA) is an evaluation of a product’s environmental impact throughout its life cycle, from raw material acquisition through to disposal.
2. Simplified/Screening Life Cycle Assessment (LCA) is an evaluation method of a product’s environmental impact using a simplified, uncomplicated approach, or focusing on the product’s most critical stages and most prominent impacts, such as assessing the impacts of carbon footprint or greenhouse gas emissions, without the need to collect every detailed aspect of the data or use complex models.
3. Other environmental assessment tools that are recognized by third parties, such as Material Flow, Ecological Footprint, Material Intensity Per Unit of Service, etc.

• 2024

• Established sustainable product management mechanism
• All product groups, accounting for 100% of GC products, have been certified with Carbon Footprint of Product

Value Chain

• Operations
• Products/Services
• Supply Chain

• Protecting brand image and reputation in times of crisis
• Providing essential data for informed decision-making and strategic direction
• Reducing operational costs
• Ensuring business continuity and minimising profit loss risks
• Elevating the organisation toward sustainable leadership

• Ineffective risk management may lead to loss of community trust
• Unmanaged risks can escalate into severe crises
• Inaccurate risk assessments may impact operations and increase costs

• Short-term
• Long-term

6. Right to equality before the law, equal protection of the law, non-discrimination: UDHR 7

Strategic Risk:

• Financial and Investment Management

GC has established a risk management policy based on the GRC (Governance, Risk & Compliance) framework to address the growing complexity of its business. The company conducts comprehensive assessments and monitoring of both internal and external risks. GC also focuses on strengthening risk management capabilities by providing training to employees and management at all levels, aiming to enhance understanding and readiness to effectively respond to challenges in line with its long-term strategic objectives.

Value Chain

• Operations
• Products/Services
• Supply Chain

• Upskilling supports employee growth, job stability, and satisfaction
• Enhancing employee well-being through benefits, health promotion, and quality of life improvements
• Talent development boosts efficiency, retention, reputation, and organisational stability

• Stress and physical strain from petrochemical work can impact employee health
• High turnover rates increase recruitment and training costs

• Short-term
• Long-term

23. Right to social security, including social insurance: UDHR 22

24. Right to work: UDHR 23

25. Right to enjoy just and favorable conditions of work (including rest and leisure): UDHR 23 and 24

27. Right to an adequate standard of living (Housing, Food, Water & Sanitation): UDHR 25

Strategic Risk:

• People and Organization

GC has established career progression pathways alongside capability enhancement programs for employees at all levels. The company defines the required competencies for each position, including job-specific expertise and leadership qualities appropriate to each level. This approach aims to strengthen workforce capabilities in alignment with business goals and talent development strategies. Additionally, GC has implemented succession planning to identify and develop qualified individuals who exemplify the company’s organizational culture.

Value Chain

• Operations
• Products/Services
• Supply Chain

• Faster communication and improved services enhance customer satisfaction and sales opportunities
• Growing environmental awareness creates opportunities to develop sustainable products, attract customers, and drive growth

• Delayed services affect customer satisfaction and damage the company’s image
• Slow adaptation may lead to loss of customers and sales

• Short-term
• Long-term

31. Right to self-determination: UDHR 21

Business as Usual Risk

• Market Volatility and Business Performance

GC has implemented a proactive marketing strategy to retain existing customers and expand its customer base, aiming to build trust and maximise satisfaction. Customer relationship management is carried out through continuous engagement activities and feedback collection via the Voice of Customer (VoC) system, including channels such as the corporate website, annual surveys, and customer-facing employees. GC also ensures rapid response mechanisms are in place to monitor, analyse, and resolve issues effectively, with follow-up processes to prevent recurrence.

Value Chain

• Operations
• Products/Services
• Supply Chain

• ESG-based partner selection reduces risks, supports sustainability, and mitigates supply chain issues
• Integrating ESG into procurement enhances long-term profitability, reduces risks, and builds trust

• Transportation and distribution are key sources of GHG emissions (Scope 3) within the business supply chain
• Supply chain disruptions can halt production, increase costs, and result in customer loss, particularly in the EU

• Short-term
• Long-term

12. Right to freedom of movement: UDHR 13

23. Right to social security, including social insurance: UDHR 22

25. Right to enjoy just and favorable conditions of work (including rest and leisure): UDHR 23 and 24

Strategic Risk:

• Sustainable Feedstock
• Decarbonization Implementation

GC has assigned the Corporate Governance and Sustainable Development Committee to establish policies and oversee operations in compliance with relevant laws and standards. The company also promotes green procurement to build trust and shared value with consumers and society, positioning itself as a leader in the chemical industry. Additionally, GC supports its partners in reducing pollution and managing the environment efficiently through training on Decarbonization and Road Map, as well as offering consultations and technical guidance to help partners achieve their set targets

Value Chain

• Operations
• Products/Services
• Supply Chain

• Job creation in local communities supports the economy, reduces inequality, and improves quality of life
• Infrastructure investments (e.g. roads, schools, hospitals) help elevate living standards
• Educational support enhances workforce skills and creates job opportunities
• Positive community impacts attract investors and strengthen the company’s image

• Industrial activities may increase risks of pollution, accidents, and health issues, negatively affecting quality of life

• Short-term
• Long-term

1. Right to life: UDHR 3

27. Right to an adequate standard of living (Housing, Food, Water & Sanitation): UDHR 25

28. Right to health: UDHR 25

Emerging Risk:

• Change in Regulatory to Promote the Reduction of Plastic Use and Plastic Waste

GC has developed a corporate social responsibility strategy aligned with its sustainable development strategy and the UN SDGs. The company focuses on creating shared value (CSV) for both business and society and operates as a social enterprise (SE). GC continues to advance its Step Up strategy to enhance sustainability across all dimensions.

Value Chain

• Operations
• Products/Services
• Supply Chain

• Strong cybersecurity and data protection build customer confidence and enhance the company’s reputation

• Mishandling of personal data may lead to data breaches, causing individuals to lose control over their information
• Weak cybersecurity and data protection practices can undermine trust
• Cyberattacks may disrupt systems, cause data leaks, and result in costly data recovery, additional safeguards, and legal liabilities, increasing the company’s financial burden

• Short-term

6. Right to equality before the law, equal protection of the law, non-discrimination: UDHR 7

Business as Usual Risk:

• Cyber Threat

Emerging Risk:

• Misuse and Abuse of Artificial Intelligence (AI) and Unable to Utilize Digital Technology and Artificial Intelligence (AI) Transformation

GC governs and manages its information security system in accordance with ISO/IEC 27001:2013 and the cybersecurity framework from the U.S. National Institute of Standards and Technology (NIST). The company establishes policies and measures for information and cybersecurity based on the international ISO 27001 standard, while raising awareness among employees, contractors, partners, customers, and business supply chain stakeholders. Additionally, GC conducts annual audits of its information and cybersecurity systems and infrastructure by an external agency (Bureau Veritas).

Value Chain

• Operations
• Products/Services
• Supply Chain

• Improving pollution reduction processes benefits the environment and lowers costs
• Adjusting production processes and technology reduces costs and waste

• Pollution emissions degrade air quality, accelerate climate change, affect health, and increase healthcare expenses

• Long-term

27. Right to an adequate standard of living (Housing, Food, Water & Sanitation): UDHR 25

N/A

GC manages air quality both within its operational sites and in surrounding communities by developing air quality management plans to ensure compliance with applicable standards. GC also continuously seeks to improve its air quality control systems, with clear targets, regular monitoring, and consistent tracking of air quality performance to ensure regulatory compliance and build stakeholder confidence.

Value Chain

• Operations
• Supply Chain

• Water-saving technologies help conserve natural water sources and reduce water usage costs

• Excessive water consumption depletes local water sources
• Chemical spills and wastewater discharge degrade water quality, harming ecosystems and health
• Water scarcity disrupts production and causes revenue loss

• Short-term
• Long-term

27. Right to an adequate standard of living (Housing, Food, Water & Sanitation): UDHR 25

Strategic Risk:

• Decarbonization Implementation

Emerging Risk:

• Climate change risk

GC has conducted comprehensive Water Use Assessments and identified opportunities to improve water efficiency. A dedicated water management team oversees optimising production processes and developing technologies to reduce water consumption, including advanced wastewater treatment improvements. Additionally, a Water Management Task Force has been established to manage water resources and monitor drought conditions. GC also targets water use reduction across the supply chain under its One Water Strategy, focusing on integrated water management and reuse.

Value Chain

• Operations
• Products/Services
• Supply Chain

• Identifying biodiversity-related risks helps protect ecosystems and reduce environmental impacts.
• Applying the TNFD framework facilitates access to new B2B markets, particularly within the European Union.

• Production activities may harm ecosystems, reduce biodiversity, and affect local communities.
• Environmental damage can impact health and quality of life.
• Fines and regulatory compliance costs increase operational expenses.

• Long-term

1. Right to life: UDHR 3

27. Right to an adequate standard of living (Housing, Food, Water & Sanitation): UDHR 25

N/A

GC has adopted the approach of the Taskforce on Nature-related Financial Disclosures (TNFD) to assess biodiversity-related risks. This includes the application of the Mitigation Hierarchy Principle to prevent, avoid, minimize, restore, and offset environmental impacts.