INTERNAL CONTROL AND CONNECTED TRANSACTIONS INTERNAL CONTROL PTT Global Chemical Public Company Limited (GC) runs an Internal Control System in accordance with the international standards of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) to achieve internal control objectives relating to operations, reporting, and compliance with laws and regulations. During the Board of Directors Meeting 2/2022 held on February 14, 2022, the GC’s system was evaluated based on an internal control assessment report prepared by executives following Securities and Exchange Commission (SEC) guidelines. Together with the results of the Audit Committee’s internal control review, the Board of Directors viewed that GC’s internal control was adequate and effective for its businesses. No significant problems or material shortcomings were detected that could interfere with achieving internal control objectives. GC’s Internal Control System functioned properly in an adequate manner. The operation was efficiently managed with sufficient numbers of qualified and competent employees and processes. In addition, GC implemented a monitoring system to ensure the achievement of business objectives with effective and efficient operations, reliable reporting, and compliance with applicable laws and regulations as well as safeguarding GC’s assets against misuse or unauthorized use by the Board of Directors, executives, and employees. GC improved on internal control procedures and processes in 2021 to increase robustness and speed in identifying risks including enhanced internal control. GC’s Internal Control System in accordance with COSO can be summarized in five categories: 1. CONTROL ENVIRONMENT The Board of Directors and executives strive to promote a corporate culture that focuses on integrity and ethics. They also supervise operations to ensure compliance with the organizational vision and mission and to ensure that GC’s control environment is appropriate for implementing the Internal Control System, as detailed below. The Board of Directors and executives establish the Corporate Governance Policy, Business Code of Conduct, Corporate Compliance Policy and Anti-Corruption Policy and Guidance setting out preferred practices for the Board of Directors, executives, and employees. Executives and employees are required to acknowledge Corporate Governance and Business Code of Conduct Handbook in Hook Acknowledgement & Learning System to sign and acknowledge their compliance in the policy, principles, and business ethics. The Company also emphasizes on communicating these policies and consequential penalties to executives and employees and any potential Conflict of Interest shall be declared annually in the online system. GC also expanded the online system to subsidiaries for strengthening the good corporate governance. GC regularly builds awareness in Ethic and Business code of conduct to executives and employees through training courses, orientation, E-mail communication and other activities. One of the key meetings is Management Talk (Hook Talk), conducted by top management in order to communicate ethics and business code of conduct to employees and promote a good corporate governance culture. In additional, GC also announces corporate governance and code of conduct principles on the Company’s website to emphasize the pol icy to suppl iers/vendors, joint-venture partners, and company representatives to operate their businesses with integrity. In 2021, the Company launched an online Ethical Leadership training for executives and employees of GC group to acknowledge and aware of the leader’s role in fulfilling duties with ethical responsibilities. The Board of directors is independent from executives and responsible for supervising overall operations as well as expressing views on the direction and strategy to formulate business and operating plans. Furthermore, the Board of directors regularly monitors GC’s performance and its sub-committees to ensure that GC achieves 198 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2021
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