Materiality Topics
Materiality Assessment GRI 3-1
Process to Determine Material Topics
GC conducts an annual assessment of material sustainability issues relevant to its business operations, covering Environmental, Social, and Governance (ESG) dimensions. This assessment adopts a double materiality approach, comprising (1) Impact Materiality, which considers actual or potential positive and negative impacts on society and the environment, based on GC’s operations and stakeholder expectations across the value chain, and (2) Financial Materiality, which assesses sustainability-related risks and opportunities that may affect GC’s performance, development, and financial position. In addition, GC analyzes sustainability trends in the petrochemical industry and presents the findings to the Sustainability Development Committee (SDC) to ensure alignment with the business context, corporate goals, and strategies. The material topics are subsequently submitted to the Board Level Corporate Governance and Sustainability Committee for review, policy and strategy formulation, target setting, and approval of appropriate disclosure.
In 2024, GC assessed material topics based on the Double Materiality principle, in alignment with the Corporate Sustainability Reporting Directive (CSRD) of the European Union and the European Sustainability Reporting Standards (ESRS), developed by the European Financial Reporting Advisory Group (EFRAG). The assessment also took into account other recognized sustainability reporting standards, including:
- Global Reporting Initiative (GRI) Standards 2021
- AA1000 Accountability Principles: AA1000AP (2018)
- Dow Jones Sustainability Indices (DJSI)
- International Financial Reporting Standards S1 and S2 (IFRS S1 and S2)
- Sustainable Development Goals (SDGs)
The results of the materiality assessment were used to develop corporate strategies and integrated into the risk management process to ensure that GC is well-prepared to address sustainability-related risks. Each stage of the assessment was verified by an independent external party. The assessment process comprises four key steps, as follows:
Addition Information on Materiality Assessment Assurance by LRQA is available at page 206-207 in Integrated Sustainability Report 2024
The materiality analysis comprises four main steps as follows:
Step 1
Standards and Peers Identification
Step 2
Issue Identification and Impact Pathway Development
Step 3
Impact Assessment and Validation
Step 4
Double Materiality Assessment
Material Topics (GRI 3-2)
Based on the above materiality assessment process, GC has fully aligned with the GRI Standards and the Double Materiality assessment principle. The material topics and their respective impacts from the Double Materiality assessment are summarized in the table below.
Impact Levels of Each Material Topic
Based on the six material topics mentioned above, GC has combined issues related to Product Stewardship and Circular Economy under the topic of Sustainable Product. This is because GC has incorporated both topics as part of our operations. Therefore, GC’s material topics in 2024 can be summed up in the following five topics:
Most Important Material Topics
Management of Material Topics (GRI 3-3)
Most Important Material Topics
Climate Strategy and Energy Management
Cause of Impact |
Value Chain
|
---|---|
Stakeholders |
Shareholder Business Partner Customer Investor Community Public Sector Employee |
Main Impact and Type of Impact | |
Impact Period |
|
Human Rights Impacts |
27. Right to an adequate standard of living (Housing, Food, Water & Sanitation): UDHR 25 31. Right to self-determination: UDHR 21 |
Main Reference SDGs |
|
Risk Factor |
Strategic Risk:
Emerging Risk:
|
Impact Materiality Level | |
Financial Materiality Level | |
Double Materiality Level | |
Business Strategy |
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. |
Long Term Targe |
Remark: *Executive KPI |
Target Year |
|
Progress |
|
Innovation Management
Cause of Impact |
Value Chain
|
---|---|
Stakeholders |
Shareholder Business Partner Investor Customer |
Main Impact and Type of Impact | |
Impact Period |
|
Human Rights Impacts |
31. Right to self-determination: UDHR 21 |
Main Reference SDGs |
|
Risk Factor |
Business as Usual Risk:
Emerging Risk:
|
Impact Materiality Level | |
Financial Materiality Level | |
Double Materiality Level | |
Business Strategy |
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. |
Long Term Target |
Remark: *Executive KPI |
Target Year |
|
Progress |
|
Occupational Health and Safety
Cause of Impact |
Value Chain
|
---|---|
Stakeholders |
Shareholder Business Partner Employee |
Main impact and Type of impact | |
Impact Period |
|
Human Rights Impacts |
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 |
Main Reference SDGs |
|
Risk Factor |
Business as Usual Risk
|
Impact Materiality Level | |
Financial Materiality Level | |
Double Materiality Level | |
Business Strategy |
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. |
Long Term Target |
Remark: *Executive KPI |
Target Year |
|
Progress |
|
Corporate Governance
Cause of Impact |
Value Chain
|
---|---|
Stakeholders |
Shareholder Business Partner Customer Investor Public Sector Community Employee |
Main Impact and Type of Impact | |
Impact Period |
|
Human Rights Impacts |
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 |
Main Reference SDGs |
|
Risk Factor |
Strategic Risk
|
Impact Materiality Level | |
Financial Materiality Level | |
Double Materiality Level | |
Business Strategy |
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. |
Long Term Target |
Gain stakeholder confidence, grow sustainably and achieve GC’s vision. |
Target Year |
|
Progress |
Obtain excellent stakeholder confidence level:
|
Sustainable Product (Product Stewardship and Circular Economy)
Cause of Impact |
Value Chain
|
---|---|
Stakeholders |
Shareholder Business Partner Customer Investor Public Sector Community Employee |
Main impact and Type of impact | |
Impact Period |
|
Human Rights Impacts |
28. Right to health: UDHR 25 31. Right to self-determination: UDHR 21 |
Main Reference SDGs |
|
Risk Factor |
Business as Usual Risk:
Emerging Risk:
|
Impact Materiality Level | |
Financial Materiality Level | |
Double Materiality Level | |
Business Strategy |
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 |
Long Term Target |
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:
|
Target Year |
|
Progress |
|
Fundamental Material Topics
Risk and Crisis Management
Cause of Impact |
Value Chain
|
---|---|
Stakeholders |
Shareholder Business Partner Customer Investor Public Sector Community Employee |
Main impact and Type of impact | |
Impact Period |
|
Human Rights Impacts |
6. Right to equality before the law, equal protection of the law, non-discrimination: UDHR 7 |
Main Reference SDGs |
|
Risk Factor |
Strategic Risk:
|
Impact Materiality Level | |
Financial Materiality Level | |
Double Materiality Level | N/A |
Business Strategy |
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. |
Human Capital Management
Cause of Impact |
Value Chain
|
---|---|
Stakeholders |
Shareholder Employee |
Main Impact and Type of Impact | |
Impact Period |
|
Human Rights Impacts |
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 |
Main Reference SDGs |
|
Risk Factor |
Strategic Risk:
|
Impact Materiality Level | |
Financial Materiality Level | |
Double Materiality Level | N/A |
Business Strategy |
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. |
Customer Relationship Management
Cause of Impact |
Value Chain
|
---|---|
Stakeholders |
Shareholder Customer |
Main Impact and Type of Impact | |
Impact Period |
|
Human Rights Impacts |
31. Right to self-determination: UDHR 21 |
Main Reference SDGs |
|
Risk Factor |
Business as Usual Risk
|
Impact Materiality Level | |
Financial Materiality Level | |
Double Materiality Level | N/A |
Business Strategy |
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. |
Supply Chain Management
Cause of Impact |
Value Chain
|
---|---|
Stakeholders |
Shareholder Business Partner Customer Investor Employee |
Main Impact and Type of Impact | |
Impact Period |
|
Human Rights Impacts |
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 |
Main Reference SDGs |
|
Risk Factor |
Strategic Risk:
|
Impact Materiality Level | |
Financial Materiality Level | |
Double Materiality Level | N/A |
Business Strategy |
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 |
Contribution to Society
Cause of Impact |
Value Chain
|
---|---|
Stakeholders |
Shareholder Investor Community |
Main Impact and Type of Impact | |
Impact Period |
|
Human Rights Impacts |
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 |
Main Reference SDGs |
|
Risk Factor |
Emerging Risk:
|
Impact Materiality Level | |
Financial Materiality Level | |
Double Materiality Level | N/A |
Business Strategy |
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. |
Cybersecurity and Data Privacy
Cause of Impact |
Value Chain
|
---|---|
Stakeholders |
Shareholder Business Partner Customer Investor Public Sector Employee |
Main Impact and Type of Impact | |
Impact Period |
|
Human Rights Impacts |
6. Right to equality before the law, equal protection of the law, non-discrimination: UDHR 7 |
Main Reference SDGs |
|
Risk Factor |
Business as Usual Risk:
Emerging Risk:
|
Impact Materiality Level | |
Financial Materiality Level | |
Double Materiality Level | N/A |
Business Strategy |
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). |
Air Quality
Cause of Impact |
Value Chain
|
---|---|
Stakeholders |
Shareholder Customer Public Sector Employee |
Main Impact and Type of Impact | |
Impact Period |
|
Human Rights Impacts |
27. Right to an adequate standard of living (Housing, Food, Water & Sanitation): UDHR 25 |
Main Reference SDGs |
|
Risk Factor |
N/A |
Impact Materiality Level | |
Financial Materiality Level | |
Double Materiality Level | N/A |
Response Plan |
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. |
Sustainable Water
Cause of Impact |
Value Chain
|
---|---|
Stakeholders |
Shareholder Investor Community Public Sector Employee |
Main Impact and Type of Impact | |
Impact Period |
|
Human Rights Impacts |
27. Right to an adequate standard of living (Housing, Food, Water & Sanitation): UDHR 25 |
Main Reference SDGs |
|
Risk Factor |
Strategic Risk:
Emerging Risk:
|
Impact Materiality Level | |
Financial Materiality Level | |
Double Materiality Level | N/A |
Business Strategy |
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. |
Biodiversity
Cause of Impact |
Value Chain
|
---|---|
Stakeholders |
Shareholder Community Public Sector |
Main Impact and Type of Impact | |
Impact Period |
|
Human Rights Impacts |
1. Right to life: UDHR 3 27. Right to an adequate standard of living (Housing, Food, Water & Sanitation): UDHR 25 |
Main Reference SDGs |
|
Risk Factor |
N/A |
Impact Materiality Level | |
Financial Materiality Level | |
Double Materiality Level | N/A |
Business Strategy |
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. |
More information on Stakeholder Engagement is available at: Stakeholder Engagement
Additional information: External Impact Valuation 2024