Annual Registration Statements/ Annual Report 2023 (Form 56-1 One Report) PTT Global Chemical Public Company Limited
What we design is not just fashion collections but also the future of this planet. Bordin Aphimarn Creative Director Greyhound Original Co., Ltd. “ ” In Map Ta Phut Industrial Estate, there is just as much waste as there are people. We’ve turned a crisis into an opportunity by sorting waste, generating value from it, and creating jobs for the community. Napapat Ucharoen Chairman of Watchaklukya Community Enterprise’s Recycling Waste Sorting Bank “ ” If we only exploit forests, they will eventually be depleted and die. But if we conserve them, they’ll be lasting sources of livelihood, water, and fresh air for generations to come. Kornkarn Dongdang The Konrakpa - Chaklukya and Huai Mahad Club “ ” Thanks to a green alternative like compostable cup, we can enjoy our beverage in an eco-friendly way. Poomchai Panitpongpun Photographer Eureka Studio “ ”
Sharing Inspiration for Sustainability Let’s pass on ideas and inspiration to create an eco-conscious society, achieve endless resource circulation and sustainable living, and ultimately pass on a better world to the next generations. We’ve designed the bag to clearly communicate that it’s made from 30 PET bottles, turning sustainability into something actionable by everyone. Natchayar Porwongsawang Project Manager and Designer TA.THA.TA “ ” Mangrove forests are superheroes because they can absorb and store massive amounts of carbon. Let’s grow mangrove forests to increase their number. Jareerat Petsom Miss Earth 2021 Environmentalist “ ”
The 4th Upcycling Upstyling Project transformed used plastics into stunning eco-friendly fashion, with 8 partners and 12 designers coming together to produce 15 fashion collections for GC Sustainable Living Symposium 2023. A total of 992 plastic bottles were used in place of virgin resin, reducing over 17.4 kgCO2e of greenhouse gas emissions. Innovative plastics and chemicals for automobiles of the future have been developed in pursuit of the Net Zero goal, featuring a lightweight automotive innovation composed of over 1,000 components made from engineering plastics, eco-friendly production process and coated with a zero-waste technology, allowing for 100% excess coating to be reutilized. GC actively enhances energy efficiency, reduces energy consumption and increasing its renewable energy consumption in production. In 2023, a total of 194 projects were carried out, resulting in a decrease of 1.85 million gigajoules in energy consumption, 607 million baht in expenses and equivalent to 138,090 tCO2e in avoided emissions (Scopes 1 and 2). In part of renewable energy consumption by installing solar rooftops and floating solar farms. In 2023, it utilized 9,895 MWh of solar-based electricity.
GC strives to develop innovative plastics and chemicals to offer new alternatives for every lifestyle in society. We also seek to address megatrends and sustainability issues of the world by fostering participation across all sectors and play an active role in advancing a low-carbon society and the goal of Net Zero emissions in order to maintain the world’s ecological balance and pass on a sustainable future to the next generations. ENVICCO, a manufacturer of high-quality food-grade PCR PET and PCR HDPE for packaging, reduced over 22,000 tons of waste in Thailand in 2023 by using it as raw materials in place of virgin resin and contributed 46,900 tCO2e* in avoided emissions, equivalent to planting forests covering an area of 49,370 rai**. In 2023, GC YOUTURN Platform, in collaboration with partners, collected over 352 tons of used plastic bottles, which were recycled and upcycled into creative products, used in place of virgin resin. GC has carried out an upcycled walkway development project in collaboration with the Ministry of Natural Resources and Environment to create an eco-friendly public space. The use of post-consumer plastics in place of virgin resin reduced the amount of landfilling by 4,500 kg and contributed 4,700 kgCO2e in avoided emissions, equivalent to planting 495 trees. * Including GHG Scope 3 (Upstream) ** Clean Forest Development Mechanism Project Handbook, TGO, 2011
"Plant More Trees, The Better It Will Be" Project planted mangrove forests over an area of 3,457 rai for carbon absorption across four provinces, namely Rayong, Trat, Chanthaburi, and Phetchaburi. The green spaces created are expected to reduce 23,700 tCO2e per year. GC strives to its goal of achieving Net Zero GHG emissions by 2050 to pass on a better world for all. The initiative contributed over 404 tCO2e in avoided emissions, equivalent to the amount of carbon sequestered by 42,500 trees** in one year.
Sustainable living… begins at lastic and chemical products that make your life easier, more convenient, and more eco-friendly, designed for each age group with the concept “Better for You, Better for Our World.” Bio-based phone and computer cases made from corn can make every tap and click eco-friendly. Compostable diapers answer the needs of an aging society and offers an eco-friendly option. Maximize resource efficiency with a diverse range of home and living products and clothing featuring upcycled fabrics made from used plastics. Suitable for children of all ages, high-safety toys enhance learning experience and safely promote the development of your loved ones. Natural fatty alcohols, produced from plant-based feedstocks, are used as a surfactant in skin care and cleansing products. Compostable coffee capsules are safe for users and the environment. They are bio-based and 100% compostable to be H2O, CO2 and soil nutrient.
Regardless of lifestyl ay life with products that not only meet the demands of modern society but also create endless value so that everyone can contribute to a sustainable society. Waste separation benefits the planet because every step of waste management generates greenhouse gases. By separating materials that are still useful like glass, paper, plastics, and metals, for recycling, we not only gain substitutes for traditional-grade plastics but also reduce greenhouse gas emissions and landfilling, effectively minimizing environmental impacts. Eco-friendly FDA-certified PCR PET water bottles are not only safe for consumers but also help reduce plastic waste and restore an ecological balance. GC Compostable packaging offers an eco-friendly alternative as it is plant-based and 100% compostable. Electric Vehicles (EVs) help reduce the emission of greenhouse gases - contributors to global warming - as they are powered by 100% electricity, thus offering an opportunity to use an alternative energy source, reduce reliance on fossil fuels, and minimize environmental impacts. To promote low-carbon green tourism with minimum impacts on the environment, GC has joined hands with the Botanical Garden Organization to develop Rayong Botanic Garden into a low-carbon destination, featuring kayaks made from lightweight GC plastic resin, molded in seamless designs for easy use. GC also promotes the proper management of waste from tourism and the recovery of used plastics for recycling.
A sustainable world is with very sector works together towards achieving resource efficiency, preserving the ecological balance, passing on a sustainable future and planet for the next generations. GC is the only company in Thailand to receive the highest leadership rating in the Carbon Disclosure Project (CDP) assessment for climate change and water security management for 4 consecutive years, reflecting its commitment as a world-class sustainable organization that actively works to address urgent global challenges. GC reaffirmed its stance and commitment to reducing greenhouse gas emissions to achieve Net Zero by 2050 at COP28, hosted in Dubai, the United Arab Emirates. At the event, GC also presented a strategic plan for becoming a low-carbon organization, presented its progress, exchanged visions on climate actions, and consolidated cooperation with international partner networks. GC rallied GEN S (Sustainability) people to tackle “Global Boiling” at the "GC Sustainable Living Symposium 2023" and invited people of all nationalities and linguistic backgrounds to join it in solving urgent global problems by providing inspiration for sustainable living through an international symposium featuring diverse sustainability activities. The event was organized on October 27-28, 2023, at Siam Paragon, with 3,510 attendees and over 500,000 live viewers from 125 countries worldwide. GC, the Only Company in the World, ranked Number One in the Dow Jones Sustainability Indices (DJSI) (World Index) in the Chemicals Sector for 5 consecutives years by the S&P Global Corporate Sustainability Assessment (CSA).
Corporate Strategies, Vision, and Mission 10 Financial Highlights 16 Awards and Recognitions 18 Major Events and Activities in 2023 20 Message of the Chairman 30 Contents 1 Business Structure and Operation 34 Business Structure 36 Business Value Chain 38 Nature of Business 42 >> Upstream 44 >> Intermediates 48 >> Polymers and Chemicals 52 >> Bio and Circularity 56 >> Performance Chemicals 61 >> Services and Others 66 Market and Competition 67 Shareholding Structure in Subsidiaries 78 and Affiliates Securities 83 Issuance of Other Securities 83 Dividend Payment Policy 85 Risk Management 86 Driving Business towards Sustainability 98 Management Discussion and Analysis 110 Company Information 128 and Other Important Information 2 BUSINESS OPERATION 32 AND PERFORMANCE CORPORATE 130 GOVERNANCE Corporate Governance Policy 132 Corporate Governance Structure 150 and Material Facts >> Organization Structure 150 >> Board of Directors 151 >> Sub-Committees 157 >> Executives 161 >> Employees 165 >> Other Important Information 174 Corporate Governance Report 184 Report of the Audit Committee 208 Report of the Corporate Governance 212 and Sustainability Committee Report of the Nomination 216 and Remuneration Committee Report of the Risk Management Committee 219 Internal Control and Connected Transactions 221
3 4 APPENDIX 357 FINANCIAL REPORTS 240 AND FINANCIAL STATEMENTS Technical Terms and Abbreviations 358 Attachment 1 Details of Directors, Executives, 362 Controllers and Company Secretary Attachment 2 Details of Directors 394 of Subsidiaries Attachment 3 Details of the Heads of 398 the Internal Audit and Compliance Units Attachment 4 Assets Used 402 in Business Operations and Details of Asset Valuations Attachment 5 GC Policy and Practices of 408 Corporate Governance and Business Code of Conduct Report of the Board of Directors’ 242 Accountability to Financial Report Independent Auditor’s Report 243 Financial Statements 247 Notes to the Financial Statements 258
Corporate Strategies, Vision, and Mission This means: refers to GC Group as a producer of petrochemicals and chemicals across the integrated value chain that grows businesses through domestic and international investments, with a focus on high value-added products. refers to GC Group as a world-class chemical company. Vision refers to GC Group as a producer that strives to deliver value and elevate the quality of life through chemical products that meet consumer needs that is guided by social and environmental responsibility and seeks to contribute to the mitigation of global warming. Better Living Chemical Company Leading Global Mission We deliver fair and sustainable returns for shareholders through excellent and trustworthy performance management. Shareholder We integrate social and environmental responsibility into our business practices to achieve sustainable development. Society We provide the best solutions to business partners through innovative products and services. Business Partner We build an adaptable organization that promotes learning through a happy work environment and actively develop its employees’ capabilities so as to equip them for new challenges, foster their dedication to and engagement with the organization, and achieve professional excellence. Employee To be a Leading Global Chemical Company for Better Living 10
Objectives and Goals GC strives to become a world-class petrochemical and chemical manufacturer with an integrated value chain, foster growth, and generate profit in a sustainable and uninterrupted manner, with emphasis on growing investment in performance and specialty chemicals, low-carbon businesses, and international investments. PTT Global Chemical Public Company Limited, GC systematically reviews its corporate vision, mission, and direction annually to ensure alignment with the circumstances as well as short-term and long-term trends in pursuit of its aspiration to become an international leader, as detailed below. Business Growth GC strives to operate its businesses under the framework of sustainability and has earned international recognition thanks to its consistent sustainability actions. GC has also announced its goal to achieve net-zero emissions of Scopes 1 and 2 greenhouse gases (GHG) by 2050, reinforcing its commitment to becoming a world-class model organization of sustainability practices. Sustainability 11 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2023
Corporate Strategies The year 2023 was marked by considerable uncertainty due to external factors, including geopolitical conflicts and the global economic recession. As a result of persistent high inflation and policy interest rates, coupled with the sluggish recovery of the Chinese economy, the demand for petrochemical products experienced a slowdown. Meanwhile, China’s self-sufficiency policy triggered the largest expansion of new production capacities during the 2022-2023 period. These factors combined caused a downturn in the operating rate of the industry in 2023, which was indicative of an oversupplied market and caused the prices and spreads to decline. In addition, an energy transition was accelerated by a surge in environmental consciousness and the climate policies implemented by various countries across the globe, impacting the competitiveness of the industry in the long-term. GC has been closely monitoring these trends and analyzing short-term impacts in order to promptly adjust its operation plans in line with the challenging business condition while also advancing its long-term plan to achieve sustainable growth and respond to megatrends. As a result, GC has been able to accomplish its goals in different areas as planned and maintain its sustainability leadership, as demonstrated by its being ranked as the number one company in the petrochemical industry by the Dow Jones Sustainability Indices (DJSI), making it the only chemical company in Thailand and Asia to occupy the top spot for five consecutive years and placed in the top 10 for 11 consecutive years. GC has realigned its business directions and strategic plans with the evolving landscape, focusing on building and maintaining competitiveness, sustainable business growth, and preparedness in various aspects in support of future growth. GC uses these directions and strategic plans as frameworks for business operations and regularly monitor outcomes to accomplish short-term and long-term corporate goals, with emphasis on the following five strategic focuses: 1 2 Step Change Step Out GC actively enhances its business competitiveness, operations, and resilience to ensuring its ability to operate in the face of challenges, with emphasis placed on maintaining competitive costs and developing high value products. The key strategies are detailed below: GC operates and fosters growth in high-value and low-carbon businesses that accommodate megatrends through three key strategies, as detailed below: Seeking Opportunities in Bio & Circularity Business: GC seeks opportunities in the Bio & Circularity Business, which will play a vital role in enabling it to successfully transition to a low-carbon eco-business according to its business direction. For the recycling business, GC currently operates mechanical recycling through ENVICCO Co., Ltd., which has a domestic recycling capacity of 45,000 tons per year, with plans to expand its markets not only within Thailand but also in Southeast Asian countries and the United States. Furthermore, GC operates a compostable plastics business through NatureWorks Market-Focused Business: GC enhances the value of its High Value Products (HVPs) by applying innovation and by developing customers and marketing alongside product development. In addition, GC has initiated a Market-Focused Business Transformation (MFBT) to elevate its market- and customer-focused business capabilities, focusing primarily on selling application- and solution-based products to meet market and customer needs. Additionally, GC actively seeks business opportunities to access new technologies and expand its market network through collaborations with partners for forward integration as well as create value-added products on a non-competition basis against its current customers. Furthermore, GC places emphasis on customer solution marketing by fostering collaborations with brand owners to develop products that address market trends, using a customercentric approach. LLC (NatureWorks), the world’s leading polylactic acid (PLA) producer with a capacity of 150,000 tons per year, who has begun the construction of a second plant in Thailand to establish an Asia hub for its regional customers. In addition, GC is current ly studying and seeking additional business opportunities in the biofuel /oleochemicals and drop- in biopolymers sectors, with the goal of creating growth and added value for each product. High Value Business (HVB): GC has joined forces with allnex to promote value creation and synergy within GC Group and exchange knowledge in various areas to enhance efficiency, strengthen the business operation, and elevate long-term competitiveness. Second Home Base: GC is seeking business opportunities in the United States to enhance its long-term competitiveness through advantages in raw material costs, markets, and fundamental factors as well as investment promotion policies and incentives, especially in relation to the environment, from government agencies in the U.S. Competitiveness Enhancement: GC implements st rategies to achieve feedstock competitiveness alongside plant optimization to reduce production costs. In addition, there is synergy within GC Group to move towards the enhancement of product value. In response to the economic recession, GC undertaken a thorough review of its investment plans to align them with its investment capacity and studies alternatives in the market to ensure its preparedness for investment in the future as well as its ability to achieve the desired returns on investment for projects and the Company’s overall portfolio. 12
3 5 4 Step Up Enablers for Transformation Necessity and Opportunity in New Landscape GC has announced its intent to achieve internationally recognized leadership in the area of sustainability by integrating circular economy principles and an Environmental, Social, and Governance (ESG) framework into its business operations. GC has also declared its goal to reduce emissions of Scopes 1 and 2 GHG to zero by 2050, placing emphasis on projects that yield returns on investment alongside GHG emission reduction. To this end, it seeks to translate its established plans to practical actions through four strategies: To effectively implemented the four strategies above, it is vital for GC to strengthen its supporting units and optimize their efficiency by improving their operational model through three major components: In responding to the evolving industrial landscape, GC recognizes the significance of maintaining its advantages and creating long-term business opportunities through business portfolio restructuring in collaboration with its partners as well as the importance of seeking opportunities to leverage its strengths and expertise to develop new businesses as well as create differentiations and business returns in the future as part of the hydrogen and carbon business integration strategy, which aligns with the world’s sustainability-focused energy trends. Efficiency-driven: GC seeks to optimize the production process, transition to alternative energy, as well as develop and introduce new low-carbon technologies to production or enhance decarbonization efficiency. Portfolio-driven: GC carries out projects as prioritized to reflect the current situation and align with GC’s strategies to move towards low-carbon businesses. Key initiatives include studying business restructuring, studying investment in High Value Businesses (HVBs) through allnex’s business expansion, and investing in Bio & Circularity businesses. In addition, GC is advancing its circularity businesses, with plans to develop a sustainable Center of Excellence: GC seeks to opt imize operat ional ef f iciency by improving and enhancing production efficiency and reducing processes that do not generate added value to GC’s core businesses through an organization-wide efficiency optimization project (Max), Maptaphut Integration (MTPI), Digital Transformation (dEX), and FiT. Furthermore, GC strives to foster operational excellence among its subsidiaries and overseas joint ventures and maximize benefits through synergy by establishing the International product port fol io wi th the goal of expanding the domestic Post-Consumer Recycled (PCR) market. Additionally, GC has developed a sustainable product growth plan and is expanding its waste management business to achieve nat ionwide coverage through the YOUTURN Platform, while also studying the feasibility of new waste management businesses. Compensation-driven: GC is studying the feasibility of vital projects, such as PTT Group CCS Hub, with cooperation plans within PTT Group and with other private entities to accelerate the advancement of pol icies in col laborat ion wi th the government sector. In addition, GC is Center of Excellence, which is tasked with cultivating operational excellence among domestic and overseas companies within GC Group. Innovation Growth Platform & CVC: GC undertakes innovation initiatives by establ ishing a strategic technology platform and developing three major gr oups o f t echno l og i es , name l y (1) Renewable and Circularity Innovation, (2) Net Zero Innovation, and (3) Advanced Materials Innovation. The goal is to accelerate growth in high-value and planning to implement nature-based solutions through reforestation and mangrove forest restoration projects and is in the process of studying carbon credit trading through overseas platforms. Leadership: GC seeks to achieve leadership in sustainability by adopting international sustainability practices in key aspects, such as Environmental, Social, and Governance (ESG), in a balanced manner with emphasis on contributing value to society sustainably and expanding sustainability practices to all companies in GC Group in accordance with the Decarbonization Roadmap in order to serve as a model for the petrochemical and other related industries. low-carbon businesses and drive the achievement of GC’s Net Zero emissions target in accordance with its business direction. People & Organization Transformation: To ensure adaptability to uncertainties and robust business growth in the future, GC opt imizes i ts human resource management to match the efficiency of other companies in the same industry and gain international recognition for its commitment to employee well-being. GC also strives to strengthen supporting units and lay down the foundation for effective Governance, Risk management and internal control, and Compliance (GRC), so as to assure GC’s stakeholders of its transparency, accountability, and corporate governance. 13 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2023
PTT Global Chemical Public Company Limited (GC) was founded through the amalgamation of PTT Chemical Public Company Limited (PTTCH) and PTT Aromatics and Refining Public Company Limited (PTTAR). It was registered on October 19, 2011 to be PTT Group’s Chemical Flagship. GC’s registered and paid-up capital is Baht 45,088,491,170 comprising 4,508,849,117 ordinary shares at a par value of Baht 10 per share. Background and Significant Developments 14
GC’s registered and paid-up capital is Baht 45,088,491,170 comprising 4,508,849,117 ordinary shares at a par value of Baht 10 per share. 15 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2023
Financial Highlights Sales Revenues EBITDA & Adjusted EBITDA* Unit: Baht Million Net Profit/(Loss) 2022 2023 616,635 Unit: Baht Million 2022 2023 22,420 40,449 40,007 49,134 EBITDA Adjusted EBITDA* 2022 2023 0.22 Earning per share (Baht per share) Net Profit/(Loss) (Baht Million) -8,752 -1.94 678,267 Adjusted EBITDA* Breakdown by Business group Year 2023: Baht 40,007 Million Sales Revenues Breakdown by Business group Year 2023: Baht 616,635 Million Performance Chemicals Bio & Circularity Intermediates Polymers & Chemicals 15% 2% 11% 16% 0% Upstream 56% Services and Others Sales Revenues Breakdown by Geography Year 2023 North America Asia (Excluding AEC, and China) AEC Other Countries China Europe Thailand 4% 8% 14% 3% 7% 6% 58% Upstream Bio & Circularity 2% 61% Intermediates -1% Performance Chemicals Polymers & Chemicals 18% 15% 5% Services and Others 999 Remark: * Adjusted EBITDA refers to EBITDA excluding Stock gain/(loss), NRV, Gain/(loss) from commodity hedging, and Extra item. Remark: Represent the sales revenue based on the geographical location of customers 16
Statements of Financial Position (Baht Million) 2021 2022 2023 Total Assets 747,481 719,965 719,005 Cash and Cash Equivalents + Current Investments in Financial Assets 74,994 31,963 46,249 Other Current Assets 134,098 140,046 140,625 Property, Plant and Equipment 301,042 296,321 285,860 Non-Current Assets 237,347 251,635 246,272 Total Liabilities 419,878 421,138 422,824 Interest Bearing Debt (IBD) 275,375 301,854 290,103 Other Liabilities 144,503 119,284 132,721 Total Equity 327,603 298,828 296,181 Key Financial Ratios 2021 2022 2023 Current Ratio (Times) 1.42 1.65 1.48 EBITDA to Sales Revenues (%) 13.14 3.31 6.56 Net Profit on Sales Revenues (%) 9.67 -1.29 0.16 Return on Total Assets (%) 9.50 -0.01 1.94 Return on Equity (%) 15.01 -2.87 0.34 Interest Bearing Debt to Equity (Times) 0.84 1.01 0.98 Net Interest Bearing Debt to Equity (Times) 0.61 0.90 0.82 Interest Bearing Debt to EBITDA (Times) 4.50 13.46 7.17 Net Interest Bearing Debt to EBITDA (Times) 3.28 12.04 6.03 Dividend payment (Baht/share) 2021 2022 2023* 1st Half 2.00 0.75 0.00 2nd Half 1.75 0.25 0.75 Full year 3.75 1.00 0.75 Earning per Share (Baht/Share) 10.01 -1.94 0.22 Dividend Payout Ratio (%) 37% N/A >200% Remark: * At the Board of Directors’ meeting held on 12 February 2024, the Board approved to submit for approval at the Annual General Meeting of the Shareholders, a full year 2023 dividend payment at the rate of Baht 0.75 per share, amounting to Baht 3,382 million to the shareholders entitled to receive dividends. This dividend payment is subject to the approval of the Shareholders at the Annual General Meeting to be held on 9 April 2024. 17 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2023
Confirmation of company's performance excellence in economic, social and environmental aspects in 2023 can be demonstrated by being recognized both national and international level. International Level Awards and Recognitions MSCI ESG Rating GC received “A” rating the Commodity C h e m i c a l s s e c t o r b y M S C I . The assessment provides assurance for investors that GC’s operations are in accordance with environmental, social and governance principles. AIBP ASEAN (Thailand) Innovation Award GC has won the AIBP ASEAN (Thailand) Innovation Award 2023 from the ASEAN Innovation Business Platform (AIBP) for the GC Digital Transformation Pathway “FromGoodtoGreat”,whichdemonstrates GC’s focus on implementing digital technology to ef f icient ly enhance performance potential. FTSE4Good Index Series GC has been selected as a member of the FTSE4Good Index Series “Top 5” and the FTSE4Good Index Series for the eighth consecutive year (2016 - 2023). This is a testament of GC’s awareness of Environmental, Social andGovernance (ESG) factors in our business operations. Asian Excellence Award GC proudly received f ive outstanding awards at the 13th Asian Excellence Award in 2023, presented by Corporate Governance Asia magazine. This outstanding achievement highlights GC's exceptional leadership and excellence in business operations under excellent corporate governance. Dow Jones Sustainability Indices (DJSI) GC has been ranked 1st in the 2023 Dow Jones Sustainability Indices (DJSI) in the Chemicals Sector for the five consecutive year and positioned among the Top 10 companies in the DJSI World and Emerging Markets Index for the eleventh consecutive year. GC has been included in the Sustainability Yearbook 2023 with Top 1% S&P Global ESG Scores. Ecovadis Sustainability Rating GC has achieved a PlatinumMedal from EcoVadis. GC scored an Advanced level in the Labor & Human Rights, Ethics and Sustainable Procurement Dimensions and scored an Outstanding in the Environment Dimension, which places the company in the top 1% globally. Carbon Disclosure Project GC has been included in CDP’s “A List” (Leadership Level) for Climate Change and Water Security. The “A List” is the highest level evaluation from CDP. 18
National Level Creative Excellence Awards GC received Creative Excellence Awards under the Creat ive Business Awards category for Sustainable Project (For Large Organizat ion) , which was held by the Cr ea t i ve Economy Agency ( Pub l i c Organization), or CEA, through the "Enjoy Rayong’s Local Dishes with Community Chef" project, which has positively impacted the economic, social, and environmental aspects, contributing to the country's sustainable growth. SET ESG Rating 2023 GC has obtained ‘AAA’ level assessment from the SET ESG Rat ings 2023 and maintained our position on the Thailand Sustainability Investment (THSI) list for the ninth consecutive year (2015-2023). This val idates the company’s endeavors to broadly create benefits for both internal and external stakeholders in the environmental, social, and corporate governance aspects wh i l e operat i ng i n compl i ance wi th international standards. SET Sustainability Awards of Honor GC has been presented wi th the SET Sustainability Award of Honor under the SET Sustainability Excellence category, for the sixth consecutive year, at the SET Awards 2023 held by the Stock Exchange of Thailand (SET). This reflects the remarkable alignment of our business operations with sustainable development pract ices as wel l as the comprehensive and transparent disclosures on our operations. NACC Integrity Awards GC was awarded a consolation prize for the 11th NACC Integrity Awards by Office of the Nat ional Ant i-corrupt ion Commission (NACC) as recognition for its business operationswith transparency, anti-corruption, and corporate social responsibility under good corporate governance principles as well as for its emphasis on human rights and compliance with the international ethics standard. Sustainability Disclosure Award GChas received theSustainabilityDisclosure Award from Thaipat Institute, reflecting the company ’ s di sc l osure of benef i c i a l sustainability information to stakeholders and our response to the Sustainable Development Goals (SDGs). The Prime Minister’s Industry Award GC has won the Prime Minister’s Industry Award in two categories, namely Safety Management and Energy Management. The Prime Minister’s Industry Award is held by the Ministry of Industry to support, promote and develop entrepreneurs in the Thai industrial sector to meet standard quality while strengthening their readiness for competition in the international arena. Outstanding Award in Anti-corruption in 2023 The company received the Anti-corruption Award 2023. This award honors organizations that demonstrate outstanding anti-corruption efforts, evident to society, and adhere to management values based on principles of good governance. Committed to ethics, morality, and integrity, serving as role models and contributing to social welfare. CAC Award CAC Change Agent Award GC has been certified as a member of the Thai Private Sector Collective Action Against Corruption (CAC) for the third consecutive time on June 30, 2023. Accordingly, GC also emphasizes the expansion of transparent business networks, ensuring zero tolerance for corruption across supply chain, including business partners. This commitment aims to elevate the standards of business conduct with good corporate governance principles, al igning wi th the organizat ion's goal of sustainable development. Consequently, the company has received the CAC Change Agent Award for the second consecutive year. IAA Awards for Listed Companies 2022-2023 The IAA Awards for Listed Companies 2022-2023 was organized by the Investment Ana l ysts Assoc i at ion ( IAA) to honor knowledgeable and capable executives of listed companies who have steered their companies towards success and sustainable growth. GC has obtained three awards, including Outstanding CEO, Outstanding CFO, and Best IR in the Industrial Products category. CSR-DIW Continuous Award 19 plants under GC Group have received the CSR-DIWContinuous Award for the 16th consecutive year. Outstanding Ethics Award, Thai Chamber of Commerce GC has attained the Outstanding Ethics Award from the Thai Chamber of Commerce, which attests to the company’s commitment to corporate governance, integrity, and fairness in business operations as well as awareness of resource efficiency, which is t ru l y a sus ta i nab l e success for the organization. 19 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2023
April 5, 2023 April 24, 2023 April 24, 2023 Major Events and Activities in 2023 Kuraray joins forces with GC and Sumitomo to launch a performance and specialty chemicals plant and develop Thai industries in the EEC GC, along with Mr. Hitoshi Kawahara, CEO of Kuraray, Mr. Yoshiyuki Sakamoto, Senior Managing Executive Officer of Sumitomo Corporation, and Acting Sub-Lieutenant Pirun Hemarak, Deputy Governor of Rayong, joined the inauguration ceremony of Kuraray GC Advanced Materials Company Limited and Kuraray Advanced Chemicals (Thailand) Company Limited at the WHA Eastern Industrial Estate in Map Ta Phut Sub-district, Muang District, Rayong. Kuraray GC Advanced Materials Co., Ltd. is a joint venture between three companies with advanced technology and special expertise, namely Kuraray Co., Ltd. GC, and Sumitomo Corporation, which is a leading company from Japan. The joint venture produces and distributes advanced engineering plastic products, Genestar-branded super engineering plastic polyamide 9T (PA9T) and Septon-branded Hydrogenated Styrenic Block Co-polymer (HSBC). The products are in alignment with GC’s business direction of expanding into high-grade petrochemicals to meet the demands of the automotive and Electrical and Electronic (E&E) industries, which are seeing increasing demand and growth rates. GC inaugurates New CCB Bui lding and launches Olefins 2 Modification for Propane Feedstock (OMP) Project GC inaugurated New CCB Bui lding and commenced the commercial operation of the Olefins 2 Modification for Propane Feedstock (OMP) Project. The project was part of GC Group’s Step Change strategy to improve feedstock flexibility and increase the ability to use propane, reduce reliance on the dwindling amount of ethane from the Gule of Thailand, contribute added value to downstream businesses, and enhance GC Group’s competitiveness. GC joins the inauguration of Matrix Polymers Thai Co., Ltd. GC attended the opening ceremony of Matrix Polymers Thai Co., Ltd. a manufacturer of colored compounded powder, which is a raw material for rotomolded products, such as large water tanks, plastic playground equipment, and kayaks. With an output of 10,000 tons per year in Phase 1, the company represented an expansion of Revolve Group Limited’s (RGL) production capacity in Asia, aimed at meeting the growing demand in the Asia Pacific region. MPT is owned 99.998% by RGL, which is a joint venture between GC (49% shareholding) and Martin Coles (51% shareholding). RGL is a leading UK-based company that manufactures and sources feedstock for rotomolded products. Currently, it operates six production facilities in the United Kingdom, Poland, New Zealand, Australia, Malaysia, and most recently in Thailand, with the goal of becoming a premier global expert in materials for rotomolding through innovation and collaboration across various regions. Competitiveness Enhancing Strategies 20
July 26, 2023 September 14, 2023 December 20, 2023 GC becomes Thailand’s first company to trade plastic resin through the Thai-Cambodian railway route, enhancing business efficiency Through thorough studies and planning, GC initiated the transportation of plastic resin by rail, which could help reduce transportation and warehouse rental costs for customers, facilitate timely and expedited transportation, and minimize the risk of product damage or delivery errors. GC became the first company to trade plastic resin through the railway to Cambodia. This involves a transaction with UST Plastic Bottle Manufacturer, which was GC’s client and a major packaging manufacturer for bottled water in Phnom Penh, Cambodia. Additionally, GC plans to trade plastic resin to Laos as its next destination. GCand TotalEnergies ENEOS launch a solar rooftop project towards Net Zero Goal GC partnered with TotalEnergies ENEOS to initiate a solar rooftop project aimed at addressing climate change. Under this initiative, more than 11,000 solar panels were installed on the rooftops of five production facilities under GC, creating a 6.7-megawatt peak (MWp) solar energy system. This system generates approximately 9,500 megawatt-hours (MWh) of renewable energy per year, resulting in cost savings on energy expenses. It is also estimated to reduce carbon dioxide emissions by approximately 4,300 tCO2 per year, equivalent to planting over 64,500 trees throughout the agreement duration. The initiative aligns with GC’s business approach, which seeks to drive robust growth alongside customer care under the concept “Together to Net Zero,” with a medium-term target to reduce GHG emissions by 20% by 2030 and achieve Net Zero by 2050. WHA joins hands with GC to strengthen logistics capabilities, bring together expertise, and expand business WHA Venture Holding Company Limited (WHAVH), a subsidiary of WHA Corporation Public Company Limited, entered into a joint venture agreement to enhance logistics capabilities and competitiveness in providing logistics services to GC Group, merge the strengths of both companies, and expand opportunities for future business expansion. WHA is slated to acquire a 50% stake in GC Logistics Solutions Co., Ltd. (GCL), worth approximately 2,640 million baht. The collaboration between GC and WHA, a leader in warehousing and distribution centers with high-level logistics capabilities, will propel GCL towards becoming an integrated logistics company with a comprehensive business network as well as enhance GCL’s capabilities and elevate its service standards for customers, ensuring accurate and speedy product delivery at competitive costs. 21 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2023
January 27, 2023 April 24, 2023 August 8, 2023 November 28, 2023 GC hosts a meeting to welcome the FrenchMinister of Foreign Trade As the Chairperson of the France-Thailand Business Forum: (FTBF), GC’s CEO hosted a meeting to welcome H.E. Mr. Olivier Becht, the French Minister in charge of Foreign Trade, Attractiveness, and French Nationals Abroad, and H.E. Mr. Thierry Mathou, Ambassador of France to Thailand, along with the delegates. The objective was to strengthen the bilateral Thai-French relations through economic collaborations and promote investment opportunities and partnerships in the private sector. The FTBF played a crucial role in supporting the French government’s efforts to promote and attract investment through France’s 2030 policy framework, under which the French government had put in place measures to promote decarbonization-related projects along with budgetary support. The year 2023 was also designated as an important year for Thai-French cooperation in innovation under the theme “2023 Thailand-France Year of Innovation”. GC Congratulates allnex’s successful production line construction in a production hub inDushan Port, Jiaxiang, PRC GC extended its congratulations to allnex, a leader in sustainability and innovative plastic resin for industrial coatings, represented by Mr. Miguel Mantas, CEO of allnex, and Mr. Ruben Mannien, Senior Executive Vice President - Asia Pacific, for its successful production line construction for its production hub in Dushan Port. Located in Dushan Port Economic Development Zone in Pingchu in the province of Jinxiang, the People’s Republic of China, allnex’s new 100,000 sq.m. production hub includes 15 production lines that accommodate the manufacturing of eco-friendly High-performance resins, thus promoting green innovations and catering to the demand of China and the global market for plastic resins, coatings, and additives. Operating in strict compl iance with international environmental protection standards, the production hub began its commercial operation in Q4/2023 and will help bolster allnex’s presence in the Chinese market, enabling it to double its target by 2026 and achieve No. 1 position in the global industrial coating business. Driving Strategies to Seek New Opportunities to Foster Growth in New and Overseas Businesses GC collaborates with MHI to explore the utilization of hydrogen, ammonia, and CCS technology to develop a large-scale petrochemical plant to achieve Net Zero GC signed a Memorandum of Understanding (MOU) with Mitsubishi Heavy Industries Asia Pacific Pte. Ltd. (MHI-AP) to jointly study the technologies required to develop a largescale petrochemical complex in support of GC’s plan to drive robust and sustainable growth alongside its partners under the concept “Together to Net Zero,” where GC seeks to reduce GHG emissions by 20% by 2030 and achieve Net Zero by 2050. The MOU spans a duration of four years and includes two main objectives, which were 1) to conduct research to compare the feasibility of using hydrogen and ammonia as fuels for gas turbines as well as of using CCS technologies to reduce carbon dioxide emissions from power generators; and 2) to research how CCS technologies can best be applied and optimized for the Steam-Methane Reforming (SMR) process. GC and Kawasaki study and develop a hydrogen turbine generator project to achieve Net Zero by 2050 GC and Kawasaki s igned a Memorandum of Understanding (MOU) to study and develop a hydrogen turbine generator project to mitigate and slow down global warming in pursuit of Net Zero by 2050 at Chan Meeting Hall, 3rd Floor, Classic Kameo Hotel. The project was aimed at studying and developing the utilization of hydrogen turbine generators to produce low-carbon electricity from excess hydrogen in production across GC Group in place of natural gas. The project would be a tangible step towards decarbonization and t r ans f o rms t he production process into a low-carbon one. 22
January 31, 2023 March 20, 2023 August 30, 2023 GC and OR join forces to step up business cooperation and sustainable development initiatives GC signed a Memorandum of Understanding (MOU) on business cooperation and sustainable development with PTT Oil and Retail Public Company Limited, with Mr. Auttapol Rerkpiboon, PTT’s CEO, presiding over the MOU signing ceremony, which was held at CSC Energy Complex and attended by senior executives of both companies. The MOU covers four major areas: sustainability knowledge development, energy security fostering, sustainable business operations across the value chain, and business development, and will enable both GC and OR to jointly generate added value for their businesses while also demonstrating environmental and social stewardship to achieve sustainable mutual growth. GC signs an MOU to join PTT Group’s 2 million-rai reforestation project GC joined the Memorandum of Understanding (MOU) signing ceremony for PTT Group’s 2 million-rai reforestation project. The ceremony was chaired by Mr. Jatuporn Buruspat, Permanent Secretary of the Ministry of Natural Resources and Environment and attended by executives from various government agencies, including the Department of Forestry and the Department of Marine and Coastal Resources, as well as executives from eight companies under PTT Group, comprising PTTEP, Thaioil, IRPC, GC, GPSC, OR, and PTTLNG, where they jointly signed the declaration of intent to plant forests to advance the Net Zero goals of PTT and PTT Group. The ceremony was held at PTT Head Office. PTT Group’s 2 million-rai reforestation project will serve as another initiative to offset carbon by creating high-quality carbon credits through nature-based solutions. GC awards prizes and scholarships worth 660,000 baht in total at the 8th Amazing Petrochemical Art Contest themed “Hero to Zero” GC organized the 8th Amazing Petrochemical Art Contest, which was aimed at raising awareness among children and youth about the importance of addressing the global warming crisis, fostering a sense of shared environmental responsibi l ity, and promoting an understanding of the benefits and value of the petrochemical industry that incorporates circular and Net Zero practices in line with GC’s goal. The contest encouraged young individuals to showcase their abilities through creative imagination and innovative thinking and integrate their general knowledge into artworks, including sculpture designs and paintings.” The theme for the year 2023 was “Hero to Zero” Through lines, colors, and prototype sculptures, every piece of art creatively presented and reflected not only environmental conservation efforts to protect our planet but also an understanding of the significance of collaboration in addressing the global warming crisis as well as the importance of a shift towards ecoconsciousness and resource efficiency in today’s world. Business Sustainability Enhancement Strategies and Circularity-driven Low-carbon Industry Development Projects 23 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2023
October 2, 2023 March 30, 2023 April 5, 2023 GC joins Sustainability Expo 2023 with an exhibition themed “Good Balance, Better World” GC attended the opening ceremony of the Sustainability Expo 2023 (SX2023), the fourth edition of the event, held from October 2 to 8, 2023 with the theme “Sufficiency for Sustainability” at Queen Sirikit National Convention Center. GC presented an exhibition themed “Good Balance, Better World,” showcasing green innovations developed to cater to megatrends for a better quality of life for all, advance high-value and low-carbon businesses, and foster growth alongside decarbonization efforts to achieve Net Zero by 2050. The highlight of GC’s exhibition was “Plastic Funtastic,” a machine that breathed a second life into used plastics and turned water bottle caps into chic key chains, fostering awareness of recovering and repurposing used plastics to give them added value. The machine drew large crowds, including young children, students, and the general public, all through the duration of the event, which was held on G Floor of Queen Sirikit National Convention Center. The Food and Drug Administration under the Ministry of Public Health certified PCR PET, the InnoEco brand by ENVICCO, a company under GC, making it the first PCR in Thailand to be FDA-certified. This certification assures its safety for use in food-grade packaging and containers. This newly certified resin is also used in Pepsico’s revamped bottles, which are made 100% from the PCR PET. The certification of ENVICCO’s PCR PET, which was previously certified by the U.S. Food and Drug Administration (US FDA), underscores its quality and offers assurance to all consumers that it is hygienic, free of contaminants and chemical residues, and thus safe for use. Suntory Pepsico Beverage (Thailand) Company Limited partnered with the Property Management of Chulalongkorn University (PMCU) and ENVICCO to hold an official press conference for “Pepsi Recycled PET Bottle Campaign” to announce their readiness in being the first company in the carbonated beverage market to utilize bottles made from 100% recycled plastics (100% rPET bottles), which were launched in April 2023 under the campaign “Samnuek Saa Glaa Plien Puea Loke” (Fizzy Conscience- Daring to Change for the World). The initiative affirmed the company’s status as the leading carbonated drink brand that continuously sets new trends for consumers and at the same time promoted its image as a popular brand among younger environmentally conscious generations. ENVICCO’s InnoEco PCR PET and PCR HDPE are gained trust from brand owners for beverage packaging and household items 24
July 14, 2023 October 18, 2023 December 6, 2023 ENVICCO, a company under GC Group and a leader in the high-quality and safe PCR industry, partnered with Coca-Cola (Thailand) to introduce packaging made from 100% recycled plastic, excluding labels and bottle caps. The first packaging rolled out was the 1-liter bottles for Coke Original and Coke Zero Sugar. To produce these bottles, post-consumer recycled PET bottles collected from partner groups and processed through various processes into high-quality recycled plastic pellets, with properties comparable to new virgin plastic resin, under the InnoEco brand. This is achieved through modern recycling technologies and state-of-the-art manufacturing processes from Europe, making it possible to 100% trace the origin of used plastic. Additionally, the PCR Pet meets international safety standards of the USFDA, EFSA Europe, and the Thai FDA, making it Thailand’s first PCR to be certified safe for food contact. GC takes great pride in being part of the solution to Thailand’s waste management challenge through sustainable resource management. GC, in collaboration with I.P. ONE and Alpla, joined the launch of “Vixol: Transformative Innovation for Sustainable World.” For the first time ever in Thailand, discarded colored plastics from households were recycled into bottles for Vixol products, beginning with “VIXOL POWER Black,” thus creating a closed loop system for sustainable plastic packaging production, with over 20 million bottles produced per year. VIXOL is a brand under I.P. One. The company partnered with ENVICCO and Alpla Packaging (Thailand) Co., Ltd., to develop innovations to enable the reuse of VIXOL bottles, which are colored HDPE ones. The bottles collected from households are sorted, recycled into postconsumer recycled HDPE (PCR HDPE), and remolded into bottles, thus preventing them from becoming waste and leaking into the ecosystem. GC participated in the launch of Minere’s new eco-friendly water bottles, which were also the first in Thailand’s drinking water market, and collaborated with Nestle in the “Bottles Made From Bottles” Project, where Minere drop-off boxes were installed to collect used PET plastic bottles from consumers. The bottles will be forwarded to ENVICCO’s plant for cleaning, shredding, and melting into PCR PET pellets, certified for quality, safety, and cleanliness by the Food and Drug Administration (FDA) of Thailand. These pellets are then molded into Minere’s eco-friendly bottles, safe, clean, and free from contaminants, creating a closed-loop for plastic bottles and enabling them to be reused as new packaging. Everyone can participate in this initiative and contribute to the sustainability of the world by dropping off used plastic bottles at the Minere bins located at 50 branches of 7-Eleven across Bangkok. 25 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2023
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