REPORT OF THE RISK MANAGEMENT COMMITTEE Dear shareholders, Throughout 2021, GC faced with various crises and challenges brought on by the COVID-19 pandemic, which grew in severity on the global level and affected the economy, society, the safety and health of humanity, as well as business continuity across the supply chain, causing high volatility in product prices and spread. This was further compounded by various uncertainties, including trade wars, oil price volatility, and new petrochemicals capacity, as well as other factors which GC places emphasis on, such as the trend towards environmental conservation and the implementation of environmental and climate change policies. Amid such volatility and challenges, effectiveness of risk management has become one of GC’s top priorities and a key factor that would enable it to navigate through crises, identify opportunities, and foster its competitiveness and growth sustainably. During the previous year, the Risk Management Committee performed its duties to the utmost of its ability to provide comments and suggestions on GC’s measures for the management of risks and crises. Consequently, with the cooperation of all parties involved, GC was able to cope with all the challenges effectively testifying to the standard and strength of GC’s risk management system, which is continuously improved in line with the ever-changing business environment. Furthermore, the Company places great importance to an organization-wide culture of risk management, which GC believes will play a vital role in enabling GC to achieve its business objectives and targets, prevent and minimize potential loss, as well as serve as a tool for creating business opportunities. In 2021, GC has been rated as the world’s number 1 member for sustainability in the Dow Jones Sustainability Indices (DJSI) chemicals sector for the third consecutive year and scored among the top ten for risk and crisis management – a testament to GC’s internationally recognized risk management standard. The Risk Management Committee efficiently performed its duties within its scope of roles and responsibilities as prescribed by its charter. In 2021, the Committee convened a total of eight meetings to provide comments and suggestions and acknowledge agenda items under its responsibility as detailed below. Reviewing the risk management policy, the risk appetite, and the risk management frameworks and practices, consisting of management frameworks for price and spread risks, foreign exchange risks, subsidiaries, and investment risks, to ensure their applicability to the business circumstances and flexibility for proper implementation. Monitoring and providing opinions and suggestions on GC’s corporate risk and crisis management in 2021 to ensure its adequacy, suitability, timeliness and that it covered emerging risks; monitoring risk trends through leading key risk indicators and lagging key risk indicators; advising the Management on the revision of risk management measures to ensure its alignment with the current circumstances; and reporting performance of the Risk Management Committee to the Board of Directors on a regular basis. Closely monitoring situations of the petroleum and petrochemical markets and exchange rates, providing recommendations, and monitoring the outcome of implementing commodity hedging for price and spread risk management as well as FX hedging on a monthly basis to ensure that the measures are flexible and suitable for the situation so as to minimize impact on GC’s performance. 196 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2021
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