GC_ONE REPORT 2021_ENG

Corporate Risk Factor Important Mitigation Measures Extreme Weather and Climate Events Adaptation Weather-related disasters from climate change are becoming more frequent and severe. The World Meteorological Organization (WMO) revealed that the number of disasters, such as floods and heatwaves, driven by cl imate change have increased fivefold and causing seven times more damage over the past 50 years. If the Company fails to prepare adequate adaptive mitigations and measures, this escalating natural disaster could affect the Company’s assets as well as the continuity of business operations. The Company is aware of the needs to prepare for such incidents in a timely manner. Certain measures have been carried out as follows: Conduct crisis management drills and business continuity planning in different hypothetical situations at the corporate level, the business unit level and subsidiary companies in the GC group to allow executives and staffs to review roles and responsibilities as well as to practice responsive action plans. Therefore, the business continuity plan can be continuously improved from the lesson learned before the incident occurs. Develop the Incident Management System (IMS) to manage data collected from the incident of emergencies which may escalate into crises and promulgate the Business Continuity Plan (BCP) to allow executives to monitor the situation, review details of the incident, roles and responsibilities for decision making and appropriate delegation of orders. Provide trainings on Risk and Disaster Management to equip the personnel with knowledge and understanding about the natural disasters in various forms and prepare to deal with natural disasters that may occur. Collaborate with external consultancies to assess the likelihood of the future natural disasters and forecast impacts on assets and the Company’s business operations for surveillance and preparation for situation of risk under potential disasters according to the international standards of the Task Force on Climate-related Financial Disclosures framework (TCFD). Impacts from Advanced and Deep Technology The rapid development of technology and digital technology has caused major changes on market landscape and business model. Such changes can be considered as both opportunities and challenges to the Company’s business operations. As an example, the exponent i a l growth of the Automation Machines, the Artificial Intelligence (AI), and the Robotics technology, which could potentially enhance the efficiency of the business operat ions, increase resi l ience, strengthen competitiveness, as well as create differentiation and new business opportunities. On the other hand, advanced technologies also come with challenges the Company need to address, both in the context of technology and digital infrastructure readiness, as well as personnel’s capability. In addition, the introduction of the artificial intelligence technology which can access, utilize, learn and analyze Big Data, could also lead to human rights and ethical risks. The Company is aware of the rapid changes of advanced technology and has managed the impact on the Company’s business as follows: Elevate innovation operations, including the introduction of new technology, especially the digital technology, to modernize and innovate plants to be the Smart Plant. Appoint a unit to supervise the business transformation so that the Company can maintain sustainable competitiveness in the future by focusing on digital transformation in three main areas: (1) Business – Apply digital technology to increase competitiveness and respond to the stakeholders’ needs, as well as assess the impact and formulate supporting measures for the potential risks. (2) Technology – Develop IT/ Data Architecture and enhance cyber security management. (3) Personnel – Foster knowledge and understanding of personnel to be in line with the advancement of new technology and digital technology transformation. Establish a clear digital transformation action plan in three phases: (1) Digitization focuses on efficiency and productivity enhancement (2) Digital Transformation of Function (DTF) focuses on changing processes and working methods and adopting advanced analytics (3) Digital Transformation of Business (DTB) focuses on creating opportunities to expand into new businesses or change the format of existing business. Leverage Corporate Venture Capital (CVC) investment as a tool to drive the Company’s growth strategy by seeking investment opportunities in digital technology or new innovations. GC strongly believes that these responsive mitigation measures can help the Company to minimize risks, increase opportunities for sustainable growth, and achieve business goals according to its established direction and strategic plans. 87 BUSINESS OPERATION AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL REPORTS AND FINANCIAL STATEMENTS APPENDIX

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