BUSINESS OPERATION AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL REPORTS AND FINANCIAL STATEMENTS APPENDIX Dissemination of Good Corporate Governance Principles GC communicates its key corporate governance principle entitled “C R E A T E,” comprising six (6) elements: the Creation of Long-Term Value for the organization; Responsibility; Equitable Treatment of all stakeholders; Accountability for decisions made and being able to offer justification for such decisions; Transparency, which entails full, accurate, equitable and timely disclosure through appropriate channels; and Ethics in business conduct, to its employees for their acknowledgement from the first day of work. GC also continuously underlines and instills the corporate governance principle into its employees through training programs, seminars, and other activities. For example, GC offers a mandatory e-Learning program on its “Hook e-Learning” system, through which Executives and employees can sign to acknowledge the Corporate Governance and Business Code of Conduct Handbook and take an assessment test. An event entitled “PTT Group CG Day 2021: The Power of Business Integrity” was also organized to help employees understand how CG was driving the organization forwards in the new normal era. Additionally, GC’s corporate governance practices are assessed by domestic regulatory authorities and examined cordially to international standards, such as the Thai Institute of Directors Association (IOD), the Thai Investors Association (TIA), and S&P in order to gauge the GC’s corporate governance performance and keep its corporate governance practices in line with international standards. Fur thermore, Execut i ves are respons ible for communicating the principles of corporate governance and corporate compliance to employees through internal meetings of each business line and unit (“Hook Talk”) to encourage them to behave ethically and perform their duties in strict compliance with good corporate governance principles, the Company’s regulations, laws and rules. GC also regularly improves its best practices. In 2021, guidance involving frequently asked questions on corporate governance, corporate compliance, and business code of conduct was compiled and published on GC’s intranet and the Hook e-Learning system as reference for Executives and employees in their discharge of duties. MAJOR CHANGES AND DEVELOPMENTS IN CORPORATE GOVERNANCE POLICY, PRACTICES, AND SYSTEMS In 2021, GC has undergone major changes and developments in our corporate governance policy, practices and systems to enhance effectiveness in the supervision and improve our corporate governance standards in accordance with the CG Code, as follows: ORGANIZATION CULTURE OF INTEGRITY AND COMPLIANCE, WHICH CONSISTS OF 6 STEPS: (1) ESTABLISH (2) DEVELOP (3) IMPLEMENT (4) EVALUATE (5) MAINTAIN (6) IMPROVE Corporate Compliance Acknowledging that compliance with laws or even with a more stringent standards promotes sustainable development, GC places importance on operating its businesses in full compliance with relevant regulatory and legal requirements at home and overseas. The Company has adopted the ISO 19600 (Compliance Management Systems-Guidelines: 2014 (E)) international standard as its operational framework in order to ensure. an organization culture of integrity and compliance, which consists of 6 steps: (1) Establish; (2) Develop; (3) Implement; (4) Evaluate; (5) Maintain; and (6) Improve At the operational level, the 1st line of defense has prepared and disseminated information on the corporate compliance comprising of three processes, namely (1) Assessment - to identify major non-compliance risks; (2) Prevention - to define measures for compliance control and minimize Non-Compliance risk; and (3) Correction and Improvement - to appropriately respond to or manage matters that deviate from the standard and to regularly review and improve compliance control measures. GC has further improved our Compliance Management System by adopting internal control system principle so that operational officers can identify and evaluate compliance risks relating to the operation process and keep them as database for undertaking compliance assessment for the Company and our group companies in order to verify items which are deviated from or not in compliance with the applicable requirements and to put in place appropriate compliance control measures. In addition, GC has adopted ISO 37301: Compliance Management Systems – 2021 (E) as guidelines for improving compliance control so that it becomes more effective, protecting against risks and bui lding sustainability of the Company In addition, Management Committee is tasked with organization-wide Compliance Oversight and reporting the progress to the Corporate Governance and Sustainability Committee for their acknowledgement and comments. This is to ensure that GC’s corporate compliance process is more efficient and consistent with international standards. 127