Materiality Topics

Value Chain

• Operations¹
• Products/Services²
• Supply Chan³

• Save operating costs
• Increase operational efficiency
• Promote corporate image and reputation
• Build stakeholder confidence and trust

• High operating costs
• Loss of stakeholder confidence

• 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: - Failure to Mitigate Climate Change

GC focuses on production process enhancement, energy management andenergyconservationtooptimizeefficiencyinreducingscope1,2 and 3 greenhouse gases, covering three areas of operations, namely 1) Efficiency-driven,2) Portfolio-driven, and 3) Compensation-driven, in tandem with building cooperation with stakeholders.

• Reduce greenhouse gas emissions
• Reduce energy consumption

• Reduce greenhouse gas emissions (Scope 1 and 2) by 20 percent
• Reduce greenhouse gas emissions (scope 1 and 2) to net zero

• 2030
• 2050

Greenhouse gas Scope 1 and 2 emissions 8.17 million tons CO2 e equivalent

Value Chain

• Operations¹
• Products/Services²
• Supply Chan³

• Drive innovation, create opportunities to develop sustainable products and services
• Increase market competitiveness
• Circular economy helps reduce environmental impact

• Business disruption
• Loss of market share to competitors
• Loss stakeholder confidence
• Damage to image and reputation

• 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:- Changing Consumer Trend from Natural Resource Crisis and Regulatory

GC is committed to investing in research and development of eco-friendly and health-friendly products by adhering to the eco-design principles and eco-friendly production processes in order to reduce environmental impacts throughout the business chain. In addition, GC has implemented technology to enhance production processes in line with the principles of circular economy, which have been established as the company’s business plan to enable the most cost-effective use of resources and yield maximum benefit while reducing waste generation and environmental impacts.

Adjusted EBITDA in Bio and Circularity Businesses

Adjusted EBITDA in Bio and Circularity Business to 7%

2030

Adjusted EBITDA in Bio and Circularity Business to 673 million baht accounting for 1.68% in 2023.

Value Chain

• Operations¹
• Products/Services²
• Supply Chan³

• Reduce risks and increase market competitiveness
• Innovation can contribute to developing economic growth

• Employees face challenges from innovation-related changes
• Inability to adapt to changing innovations can lead to the lack of ability to respond to stakeholders

• Short-term
• Long-term

31. Right to self-determination: UDHR 21

Business as Usual Risk: - Market Volatility and Business Performance

Emerging Risk: - Changing Consumer Trend from Natural Resource Crisis and Regulatory

GC is committed to the continuous investment in and development of innovation according to the Innovation Management Strategy, which consists of 1) Competitiveness & Decarbonization 2) Market-focused Innovation 3) Innovation Growth Platform & CVC 4) Enabler.

Value Chain

• Operations¹
• Products/Services²
• Supply Chan³

• Transparent governance and compliance guidelines can build stakeholder confidence

• Lack of governance and compliance will diminish stakeholder trust and may lead to loss of confidence in the organization

• 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 designated the Nomination and Remuneration Committee to recruit and select qualified individuals to be appointed as directors to the company’s Board of Directors. A name list of the selected individuals is presented to the Board meeting and/or shareholders’ meeting for approval of the appointment. The Board selection process must be conducted in a systematic and transparent manner according to the specified criteria, taking into account laws and regulations of the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) as well as GC’s regulations in accordance with the Thai Corporate Governance Code for Listed Companies 2017 (CG Code). In addition, the Corporate Governance and Sustainability Committee has been established to set guidelines and recommend policies or guidelines regarding ethics, business ethics and anti-corruption measures in accordance with the corporate governance system. The committee also defines, reviews and improves the company’s sustainability-related policies, strategies and goals in line with best practices according to national and international standards.

Value Chain

• Operations¹
• Products/Services²

• Reduce accidents
• Workplace safety can attract talented employees to work with the organization
• Build stakeholder confidence and trust

• Affect corporate image and reputation

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 develops the Quality, Security, Safety, Occupational Health, Environmental, and Business Continuity (QSHEB) Policy and adopted standards such as Process Safety Management (PSM), Contractor Safety Management (CSM), and ISO 45001. Moreover, GC also promotes and reinforces a strong safety culture for employees within and beyond the organization, covering all activities carried out by employees, contractors and key suppliers, while creating operational excellence to accomplish our ultimate goal to be a Zero Incident, Zero Complaint, Zero Unplanned Shutdown (Zero ICU).

• Total Recordable Injury Rate (TRIR) of employees and contractors at less than 0.45 cases per 1 million man-hours
• No Tier 1 Process Safety Event (PSE)

• Total Recordable Injury Rate (TRIR) of employees and contractors at less than 0.45 cases per 1 million man-hours
• Total Recordable Injury Rate (TRIR) of employees and contractors at less than 0.35 cases per 1 million man-hours
• No Tier 1 Process Safety Event (PSE)

Value Chain

• Operations¹
• Products/Services²
• Supply Chan³

• Having a risk management plan can effectively prevent and address potential risks and effects
• Build stakeholder confidence and trust

• Ineffective risk management may affect corporate image and reputation as well as lose stakeholder confidence

• Short-term
• Long-term

7. Right to freedom from war propaganda, and freedom from incitement to racial, religious or national hatred: UDHR 7

Strategic Risk:- Financial and Investment Management

GC is committed to implementing systematic risk management throughout the organization and the continuous improvement of business agility. GC also runs a training program on risk management to create awareness and improve self-development for all executives and employees to ensure the company’s ability to effectively cope with uncertainties and accomplish our operating strategies.

Value Chain

• Operations¹
• Supply Chain³

• Positive impact the overall quality of life in communities
• Reduce the company’s operational risks related to environmental issues

• Increase the risk of violating regulations related to environmental management
• Damage the company’s reputation and erode the trust of key stakeholders

• Long-term

1. Right to life

28. Right to health

31. Right to self-determination and natural resources

Strategic Risk: - Decarbonization Implementation

Emerging Risk: - Failure to Mitigate Climate Change

GC has established the Quality, Security, Safety, Occupational Health, Environment, and Business Continuity (QSHEB) These policies are reviewed annually to ensure their relevance to current situations. Additionally, the company continuously plans and develops its environmental management systems according to international standards, such as ISO 14001 (Environmental Management System), ISO 50001 (Energy Management System, ISO 14064-1 (Greenhouse Gases), and ISO 9001(Quality Management System).

Value Chain

• Operations¹
• Supply Chan³

• Reduce GC’s risk water shortage, water quality issues, and regulatory changes related to water management

• If the company lacks an effective water management strategy, it could negatively impact its image and reputation with stakeholders

• Short-term
• Long-term

23. Right to Adequate Living Standard

31. Right to self-determination: UDHR 21

Strategic Risk: - Decarbonization Implementation

Emerging Risk: - Failure to Mitigate Climate Change

• GC has conducted a comprehensive Water Use Assessment and identified opportunities for Water Efficiency Improvements. It has a dedicated Water Management Team responsible for managing water resources, enhancing production processes, and upgrading equipment and technology to reduce water consumption. Additionally, the company prioritizes improving wastewater quality through advanced treatment methods to ensure minimal environmental impact from discharge.
• GC has established a Water Management Task Force to handle drought situations, manage water resources, monitor situations, implement various measures, and manage long-term water crises.
• GC aims to reduce water consumption throughout the supply chain according to its sustainable water management strategy (One Water Strategy), which focuses on integrated water management, enhancing production efficiency, recycling water, promoting technological investments, and securing alternative water sources.

Value Chain

• Operations¹

• Increase opportunities for growth and enhance employee job satisfaction.

• If the company lacks strategies to attract and retain effective employees, it may result in the loss of skilled and experienced staff, leading to increased recruitment costs.

• Short-term
• Long-term

23. Right to Adequate Living Standard

25. Right to enjoy just and favorable conditions of work including rest and leisure

Strategic Risk: - People and Organization

• GC plans its workforce to align human resources with business growth strategies and establishes a Talent Pool database, including capabilities, experience, expertise suitable for positions, and behaviors aligned with the GC SPIRIT 4 Core Behaviors.
• GC adjusts its recruitment processes to comply with the Personal Data Protection Act, B.E. 2562 (2019), and applies digital technology to enhance work efficiency.
• GC continuously monitors and collects data on employee retention and attraction through various indicators, such as the new hire rate, employee turnover rate, and employee engagement level.

Value Chain

• Operations¹
• Products/Services²
• Supply Chan³

• There is support from communities and enhanced relations between GC and local agencies.
• There is collaboration with non-profit organizations, leading to social initiatives

• GC loses its reputation and stakeholder trust.

• Short-term
• Long-term

23. Right to social security, including social insurance

27. Right to an adequate standard of living (housing, food, water and sanitation)

Emerging Risk: - Changing Consumer Trend from Natural Resource Crisis and Regulatory

• GC develops a Group-wide Corporate Social Responsibility (CSR) strategy that aligns with sustainable development strategies and the United Nations Sustainable Development Goals (UN SDGs). This strategy focuses on Creating Shared Value (CSV) and operating as a Social Enterprise (SE).
• GC continues its core “Step Up” strategy to enhance overall organizational sustainability across the value chain, involving all stakeholders, to become a leader in sustainable practices (Leading ESG Practices). This includes advancing towards Net Zero (Decarbonization) goals, driving the Circular Economy (comprehensive plastic waste management), expanding Social Enterprise operations in various projects, and effectively managing CSR Portfolio to respond to community and social needs, thereby creating social impact and continuously building trust and confidence in the company (Partners of Choice).

Value Chain

• Operations¹
• Supply Chan³

• Increase operational efficiency and cost control, resulting in enhanced company profitability.
• Enhance the ability to meet customer demands, reduce operation time, and increase overall customer satisfaction.

• Inefficient supply chain management can lead to disruptions from suppliers and logistics providers, impacting operational costs and causing production delays.

• Short-term
• Long-term

2. Right to liberty and security (including freedom from arbitrary arrest, detention, or exile)

3. Right not to be subjected to slavery, servitude or forced labor

33. Right not to be subjected to imprisonment for inability to fulfil a contract

Strategic Risk: - Changing Consumer Trend from Natural Resource Crisis and Regulatory- Decarbonization Implementation

• GC has assigned the Corporate Governance and Sustainable Development Committee to formulate policies, oversee, and ensure compliance with relevant laws, regulations, requirements, criteria, and standards
• GC promotes green procurement, or environmentally conscious purchasing, beyond general procurement guidelines to build customer trust and acceptance, as well as to create shared value for consumers and society as a leader in the chemical industry.
• GC encourages its partners to recognize the importance of reducing carbon emissions and manage environment efficiently through training on Decarbonization and Road Map, providing consulting services, and supporting knowledge and techniques through training in order to help partners achieve their goals.

Value Chain

• Operations¹

• Increase opportunities for employee advancement with the company
• Ensure continuous employee development, enabling them to change in the company’s business plans.

• A lack of continuous development for employees may lead to decreased work effectiveness, reduced job satisfaction, and an increased risk of higher employee turnover.

• Short-term
• Long-term

19. Right to education

Strategic Risk: - People and Organization

GC has planned career development paths for employees in tandem with implementing capacity-building programs at all levels. This involves identifying the necessary competencies for each position, including job-specific expertise and appropriate leadership qualities for each level. Thie goal is to enhance employee capabilities in alignment with business objectives and personnel development strategies. Additionally, the company plans succession development to select qualified candidates who exemplify the organizational culture.

Value Chain

• Operations¹
• Products/Services²

• Enhance the ability to retain customers and sustain sales, leading to the company’s revenue growth.
• Enable GC to better understand customer needs and expectations, leading to appropriate product and service improvements.

• Without a customer relationship management strategy, the company may lack relevant customer data, particularly insights into customer behavior and responses.
• Ineffective customer relationship management could result in missed opportunities for continuous sales of products and services.

• Short-term
• Long-term

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

Business as Usual Risk: - Market Volatility and Business Performance

GC has developed a proactive marketing plan to maintain relationships with existing customer and build a new customer base, aiming to build trust and maximize customer satisfaction. This includes diverse customer relationship management strategies, such as continuous customer engagement activities, collecting feedback and complaints through a Voce of Customer (VoC) system via various channels like the company website, annual customer satisfaction surveys, and through company representatives. GC also has channels and processes for promptly responding to customer feedback to investigate, analyze causes, and find solutions, presenting and implementing corrective measures, and following up to prevent recurrence of issues.

Value Chain

• Operations¹
• Products/Services²
• Supply Chan³

• Sustainable resource procurement, reducing deforestation, and supporting biodiversity-friendly practices contribute to the company’s positive social responsibility.

• If GC operates without considering biodiversity risks, it could lead to ecosystem degradation, operational risks, reputation risks, and environmental legal risks.

• Feedstock
• Upstream
• Intermediate
• Downstream

• Long-term

31. Right to self-determination and natural resources

Emerging Risk: - Biodiversity Loss and Ecosystem Collapse

GC is well aware of the importance of rich biodiversity and ecosystem services. Therefore, it carefully controls and develops various measures through the Biodiversity Risk Assessment of all operational areas throughout the value chain to identify the risk levels of each area. This leads to appropriate business management. Additionally, the company has applied the Mitigation Hierarchy Principle to prevent, avoid, mitigate, restore, and compensate for environmental impacts on biodiversity throughout the value chain.

Value Chain

• Operations¹
• Products/Services²
• Supply Chan³

• Prevent or reduce the impact of cyber-attacks on both the company’s operations and finances.
• Protect the company’s reputation and prevent operational disruptions.

• Cybersecurity breaches can lead to financial losses due to operational disruptions and the cost associated with the remediation and legal penalties.
• Loss of trust from stakeholders, which may result in diminished confidence in the organization.

• Short-term

11. Rights to Privacy

Business as Usual Risk: - Cyber Threat

• GC oversees and manages its information security system in compliance with ISO/IEC 27001:2013 standards and the cybersecurity framework developed by the U.S. National Institue of Standards and Technology (NIST).
• GC has established information security and cybersecurity policies and measures according to ISO 27001 international standards, while also raising awareness among employees, contractors, partners, customers, and entities or individuals acting on behalf of the company throughout the supply chain.
• GC has also conducted annual audits and reviews of its information and cybersecurity infrastructure by external agencies (Bureau Veritas). These assessments cover both the information and cybersecurity systems and infrastructure.