Corporate Risk Factor Important Mitigation Measures Climate Action Towards Net Zero Risk Many countries have announced their targets to reduce greenhouse gas emissions and formulated more intensive climate change policies, some of which are being used to create trade barriers such as a carbon tax scheme, the Carbon Border Adjustment Mechanism (CBAM). Other climate related initiatives that could directly impact the Company’s operating costs and profits include the support of electric vehicle use and the clean energy sources etc. Thus, in response to the trends and government policies, leading petrochemical companies around the world have announced the Net Zero Carbon Emission target to meet sustainable development needs. Asaglobal chemical company,GCGroup commits to attain net zero greenhouse gas emissions for scope 1 and 2 by 2050 with a clear roadmap including development and adoption of new low-carbon technologies in the production process and expanding business portfolio into low-carbon businesses to seize opportunities f r om t he gr owi ng demand o f environmentally friendly products which will ultimately enhance GC’s long-standing commi tment and leadership on sustainability. The Company has continuously implemented measures related to climate actions as follows: Define Sustainability Governance Structure in every level to supervise overall operation of Decarbonization to achieve short, medium and long-term goals by 2050. Apart from the Board of Directors, the Sustainability Development Committee (SDC) has been set up at the management level, with the responsibilities to establish and follow-up strategies, frameworks, guidelines that promote GC’s decarbonization pathways as well as monitor movements of global sustainability including government measures. At the operating level, the Company has set up specific working groups to drive decarbonization covering 7 areas; (1) Asset & Efficiency Improvement, (2) Low Carbon Power & Heat (3) Portfolio Evolution (4) Circularity business (5) New Technology & CVC Implementation (6) Offsetting and (7) Decarbonization Center of Excellence. The Company has joined the pilot project of “Thailand Voluntary Emission Trading Scheme (Thailand V-ETS)” in order to prepare for the emission trading scheme. Incorporate internal carbon pricing as a part of the investment consideration and define specific criteria for greenhouse gas emissions reduction project. Promote decarbonization technology cooperation between companies within the PTT Group including Carbon Capture and Storage (CCS) and Renewable Energy technologies. Product Liability Risk To enhance long-term competitiveness and sustainable growth, the Company has set the strategy to expand product portfolios to reach more end customers and markets. This creates a need for higher standards and product certifications. Thus, it is crucial for the Company to carefully manage risks related to legal, regulations and product standards along with the market and product development. The Company realizes the importance of product development to respond to the standards, regulations and expectations of the end customers. Various measures are implemented to manage the risks in such matters as follows: Closely monitor the markets and customers associated with GC Label along with establish annual inspection plan for products under GC label together with a standardized Third Party and determine a procedures for GC labeling products liability risk management. Establish clear and effective product development, Quality Assurance (QA), and Quality Control (QC) processes with a great importance on quality of the product design as well as variables control in the production process. 84 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2021
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