Materiality Topics

Materiality Assessment GRI 3-1

Process to Determine Material Topics

GC has reviewed key sustainability issues related to both internal and external business operations throughout 2022 by taking into consideration the company’s risks and stakeholder expectations as well as sustainability trends and directions in the petrochemical industry. In doing so, GC has implemented the principles of the Global Reporting Initiative (GRI) Standards 2021, the Dow Jones Sustainability Indices (DJSI), Integrated Reporting Framework (IR), Sustainability Accounting Standards Board (SASB), International Financial Reporting Standards by International Sustainability Standards Board, (IFRS by ISSB), the Task Force on Climate-related Financial Disclosures (TCFD), The Securities And Exchange Commission (SEC), and the United Nations Sustainable Development Goals (SDGs). GC annually conduct materiality analysis, which the result will support decision making on appropriately defining and planning policy and sustainability strategy.

The materiality analysis comprises four main steps as follows:

Understand The Organization’s Context

Step 2

Identify Actual and Potential Impacts

Step 3

Assess the Significance of the Impacts

Prioritize the Most Significant Impacts for Reporting

Material Topics (GRI 3-2)

Based on the aforementioned process to determine material topics, GC has taken steps that are in full compliance with the GRI standard. Each sustainability issue has been assessed on its impact level as shown in table below:

Impact Level of Each Sustainability Issue

In addition, GC has analyzed the impact proportion of each material topic on all groups of stakeholders:

Impact Proportion of Each Material Topic on Stakeholders

GC’s Double Materiality Assessment 2022 (GRI 3-3)

Climate Strategy and Energy Management

Impact on GC	Energy saving 1,395,705 GJ per year, and reduction of costs for 384.3 million THB. GHG Reduction 100,595 tons CO2 equivalent Higher operating costs as a result of climate change impacts may cause product and raw material price volatility as well as supply chain disruptions
Impact on Stakeholders	Build confidence for investors Meet the needs of customers who are interested in climate change. Increase business opportunities with partners that take climate action Government agencies receive support in implementing new climate-related policies and measures. -
Impact Level
Impact on Economy, Environment, and People	Environments
Key Stakeholders	Investor Customer Public sector Employee Supplier and business partner
Human Rights Impacts*	1, 23, 28
Main Reference SDGs
Strategy and Performance (Chapter/Section and Web)	Good Citizenship - Climate Change Management Explore More

Governance and Compliance

Impact on GC	Good corporate governance and compliance enables good company performance Loss of stakeholder trust and confidence due to inefficient governance or violations to business ethics
Impact on Stakeholders	- -
Impact Level
Impact on Economy, Environment, and People	Economy
Key Stakeholders	Investor Employee Shareholder
Human Rights Impacts*	6, 8, 9, 19, 24, 25, 27, 33
Main Reference SDGs
Strategy and Performance (Chapter/Section and Web)	Governance and Compliance Explore More

Risk and Crisis Management

Impact on GC	The company is able to prevent and manage risks and resulting potential impacts efficiently due to having risk and crisis management measures that are in line with international standards Inefficient risk and crisis management measures may result in business failure and stakeholder dissatisfaction
Impact on Stakeholders	- -
Impact Level
Impact on Economy, Environment, and People	Economy
Key Stakeholders	Investor Public sector Employee Shareholder
Human Rights Impacts*	-
Main Reference SDGs
Strategy and Performance (Chapter/Section and Web)	Risk and Crisis Management Explore More

Innovation Management

Impact on GC	Business partners and customers collaborate with the company to develop new innovations -
Impact on Stakeholders	Communities, customers, and business partners gain knowledge on innovation management from the company and is able to apply the knowledge in various context Business partners and customers collaborate with the company to develop new innovations Employees gain knowledge on innovation allowing them to work more efficiently. Shareholders receive greater returns through the development and application of new innovations Contribute to the economic, social, and environmental development of the country. -
Impact Level
Impact on Economy, Environment, and People	Economy
Key Stakeholders	Community Customer Public sector Employee Supplier and business partner Shareholder
Human Rights Impacts*	-
Main Reference SDGs
Strategy and Performance (Chapter/Section and Web)	Good Product - Innovation Management Explore More

Circular Economy

Impact on GC	Enhancing material circularity in business operations and production processes throughout the supply chain -
Impact on Stakeholders	- -
Impact Level
Impact on Economy, Environment, and People	Environment
Key Stakeholders	Customer Public sector
Human Rights Impacts*	-
Main Reference SDGs
Strategy and Performance (Chapter/Section and Web)	Good Citizenship - Portfolio Driven Explore More

Occupational Health and Safety

Impact on GC	Reduce number of work-related accidents Increase the company’s ability to compete within the market Disruptions in the company's production process resulting in reputational impacts Loss of life and property
Impact on Stakeholders	Increase employees’ and business partners’ confidence in carrying out work Loss of life and property
Impact Level
Impact on Economy, Environment, and People	People
Key Stakeholders	Employee Supplier and business partner
Human Rights Impacts*	1, 23, 25, 28, 34
Main Reference SDGs
Strategy and Performance (Chapter/Section and Web)	Good Process - Occupational Health and Safety Explore More

Contribution to Society

Impact on GC	Reduce negative perceptions and enhance the company’s reputation Build strong relationships with the community through participation and engagements -
Impact on Stakeholders	Improve the quality of life and elevate income for the community -
Impact Level
Impact on Economy, Environment, and People	People
Key Stakeholders	Community Investor Customer Public sector Shareholder
Human Rights Impacts*	-
Main Reference SDGs
Strategy and Performance (Chapter/Section and Web)	Good Citizenship - Portfolio Driven Explore More

Sustainable Environmental Management

Impact on GC	Create balance between business growth and responsibility towards the environment Inefficient management of the environment may impact environmental quality as well as the company’s trustworthiness and reputation
Impact on Stakeholders	Collaboration with government agencies in implementing environmental management policies and measures -
Impact Level
Impact on Economy, Environment, and People	Environment
Key Stakeholders	Public sector Supplier and business partner Shareholder
Human Rights Impacts*	31
Main Reference SDGs
Strategy and Performance (Chapter/Section and Web)	Good Citizenship - Environmental Management Explore More

Customer Relationship Management

Impact on GC	Customer Satisfaction at 93%, this allows the company to maintain the current customer and expand new customer base Increase opportunities in expanding the business alongside customers -
Impact on Stakeholders	- -
Impact Level
Impact on Economy, Environment, and People	People
Key Stakeholders	Customer Supplier and business partner
Human Rights Impacts*	19
Main Reference SDGs
Strategy and Performance (Chapter/Section and Web)	Good Product - Product Innovation Explore More

Product Stewardship

Impact on GC	Develop products that are environmentally friendly using eco-design principles -
Impact on Stakeholders	- -
Impact Level
Impact on Economy, Environment, and People	Environment
Key Stakeholders	Customer Public sector Supplier and business partner Shareholder
Human Rights Impacts*	28
Main Reference SDGs
Strategy and Performance (Chapter/Section and Web)	Good Product - Product Innovation Explore More

Talent Attraction and Retention

Impact on GC	Improve employee engagement to the company -
Impact on Stakeholders	Employees receive welfare benefits and are compensated appropriately Enhance the quality of life for employees -
Impact Level
Impact on Economy, Environment, and People	People
Key Stakeholders	Employee
Human Rights Impacts*	23, 25
Main Reference SDGs
Strategy and Performance (Chapter/Section and Web)	Explore More

Sustainable Water

Impact on GC	Freshwater Withdrawal Reduction 6.34 million m3 per year Insufficient water supplies may increase operating expenses and increases the risk of supply chain disruptions
Impact on Stakeholders	The company and business partners have sufficient water supplies -
Impact Level
Impact on Economy, Environment, and People	Environment
Key Stakeholders	Public sector Supplier and business partner
Human Rights Impacts*	-
Main Reference SDGs
Strategy and Performance (Chapter/Section and Web)	Good Citizenship - Environmental Management Explore More

Biodiversity

Impact on GC	- -
Impact on Stakeholders	Forests, natural resources, and biodiversity are rich and abundant -
Impact Level
Impact on Economy, Environment, and People	Environment
Key Stakeholders	Public sector
Human Rights Impacts*	-
Main Reference SDGs
Strategy and Performance (Chapter/Section and Web)	Explore More

Human Capital Development

Impact on GC	Employees have greater knowledge and expertise in their work Untimely development of employees results in the inability for new employees to effectively replace employees that have retired or resigned
Impact on Stakeholders	Create opportunities in career growth for employees -
Impact Level
Impact on Economy, Environment, and People	People
Key Stakeholders	Employee
Human Rights Impacts*	29
Main Reference SDGs	-
Strategy and Performance (Chapter/Section and Web)	Explore More

Information and Cyber Security

Impact on GC	Efficiently prevent cyber threats and build trust in stakeholders -
Impact on Stakeholders	Employees and business partners have confidence in working with the company Inefficient cybersecurity management may cause stakeholders’ information and confidential business information to be leaked
Impact Level
Impact on Economy, Environment, and People	Economy
Key Stakeholders	Employee Supplier and business partner Shareholder
Human Rights Impacts*	11
Main Reference SDGs	-
Strategy and Performance (Chapter/Section and Web)	Explore More

Supply Chain Management

Impact on GC	Create stability in business operations for the company, business partners, and shareholders Reductions in the cost of production enables customers to have access to quality products at a reasonable price Improve and strengthen the continuity of product delivery -
Impact on Stakeholders	Create stability in business operations for the company, business partners, and shareholders Reductions in the cost of production enables customers to have access to quality products at a reasonable price Today, Increased logistics costs due to rising energy prices. The expectation an better supply chain management system to minimize cost.
Impact Level
Impact on Economy, Environment, and People	Economy
Key Stakeholders	Customer Public sector Supplier and business partner
Human Rights Impacts*	-
Main Reference SDGs
Strategy and Performance (Chapter/Section and Web)	Explore More

* Remark: Human Rights

Article 1 Right to Life
Article 6 Right to Equality Before the Law, Equal Protection of the Law, Non-Discrimination
Article 8 Right to Access to Effective Remedies
Article 9 Right to a Fair Trial
Article 11 Right to Privacy
Article 19 Right to Freedom of Opinion, Information and Expression
Article 23 Right to Social Security, Including Social Insurance
Article 24 Right to Work
Article 25 Right to Enjoy Just and Favorable Conditions of Work Including Rest and Leisure
Article 27 Right to an Adequate Standard of Living (Housing, Food, Water and Sanitation)
Article 28 Right to Health
Article 29 Right to Education
Article 31 Right to Self-Determination and Natural Resources
Article 33 Right Not to be Subjected to Imprisonment for Inability to Fulfil a Contract
Article 34 Right of Aliens due Process When Facing Expulsion

Apart of assessing the impact of material topics, GC also integrates materiality assessment results within the overall risk management process by reviewing and adding into corporate risk factors, which make processes of risk identification and risk management more extensive. Additionally, GC has defined targets of managing each of material topics to be aligned with strategic or operational business activities, including specifying the corporate KPIs for both executive and operational levels.

Sample of Management of Significant Material Topics

Material Issues	Corporate Risk Factor	Targets and Progress	Corporate KPI*	References
Climate Strategy and Energy Management	Strategic Risk: Climate Action Towards Net Zero Risk	Short-term target: GHG Emissions (Scope 1 & 2) should be less than 8.60 million tons CO2e in 2022. Near-term target: Achieve GHG emissions reduction (Scope 1&2) at least 20% within 2030. Long-term target: Achieve Net Zero target (scope 1&2) within 2050. Performance in 2022: GHG emissions (Scope 1 & 2) was 8.60 million tons CO2e.	GHG emission reduction Energy consumption reduction	Climate Strategy and Energy Management Explore More Executives Compensation and Ownership Explore More
Circular Economy	Strategic Risk: Climate Action Towards Net Zero Risk	Long-term target: expand investment of bio-based (chemical & polymer) and plastic recycling (mechanical & chemical recycling) to have production capacity more than 2,500,000 tons by 2027. Performance in 2022: production capacity of bio-based and recycled plastics were 1,500,000 tons.	Increase share revenue generated from low-carbon businesses. Expand investment of Bio-based (Chemical & Polymer) and Plastic Recycling (Mechanical & Chemical Recycling)	Circular Economy Strategy and Target Explore More Executives Compensation and Ownership Explore More
Occupational Health and Safety	Business as Usual Risk: Operational and Safety Risk	Short-term target: Total Recordable Injury Rate (TRIR) of employees and contractors should be less than 0.45 cases per 1 million man-hours in FY2022. On-going target: zero case of Process Safety Event Tier-1 in 2022. Long-term target: Total Recordable Injury Rate (TRIR) of employees and contractors should be less than 0.35 cases per 1 million man-hour within 2027. Performance in FY2022: Total Recordable Injury Rate (TRIR) of employees and contractors was 0.53 cases per 1 million man-hour	Reduce Total Recordable Injury Rate (TRIR) Minimize number of Process Safety Event	OHS Management Explore More Executives Compensation and Ownership Explore More

*Remarks: these performance indicators are parts of corporate KPI for CEO and Executives.

More information on stakeholder engagement is available at: Stakeholder Engagement

More information: External impact valuation in 2022

external impact valuation in 2022