Sustainability: GC is the only company in the world to have been ranked number one in the Dow Jones Sustainability (DJSI) World Index in the chemicals sector with the highest score for five consecutive years by S&P Global Corporate Sustainability Assessment (CSA), making GC the first company to successfully maintain sustainability leadership for five consecutive years. GC also received the Platinum Medal for supply chain sustainability from EcoVadis, being ranked in the top 1% of the world’s basic chemical industry. In addition, GC is the first and only company in Thailand to make the Disclosure Insight Action (CDP)’s Double A List for climate change and water security leadership and has been recognized a UN Global Compact LEAD company for being a world-class model organization in sustainability at the highest level. Furthermore, we place greater emphasis on sustainable living and strive to translate it to common practice among Gen S (Generation Sustainability) in the hopes that everyone will take part in addressing global issues in collaboration with government agencies, private businesses, leading organizations, and the general public in order to make a real impact on lifestyles and contribute to the sustainability of the world. Governance: We prioritize and continue to integrate our corporate Governance, Risk Management, Internal Control, and Compliance (GRC) activities to strengthen our operations and enable the organization to achieve the business goals with efficiency, transparency, and accountability while also reducing potential risks on the business. Thanks to our evident commitment to ethical business conduct and ongoing anti-corruption efforts, GC has been recognized with various certificates and accolades from various institutions. Examples include a consolation prize at the 11th NACC Integrity Awards from the National Anti-Corruption Commission (NACC), an Anti-Corruption Award 2023 from the Anti-Corruption Foundation, and a plaque of honor from the Thai Chamber of Commerce. GC has also been successfully recertified as member of the Thai Private Sector Collective Action Against Corruption (CAC) by Thai Institute of Directors Association (IOD) for the third consecutive time, achieved an “Excellent” rating on the Corporate Governance Report of the Thai Listed Companies (CGR) of IOD for a 12th consecutive year, and received the “Excellent” score of 100 on the AGM checklist from the Thai Investors Association (TIA) for a 12th consecutive year. On behalf of the Board of Directors, executives, and all employees, I would like to express my sincerest gratitude to all shareholders, suppliers, business partners, public and private institutions and agencies, as well as stakeholders for the unwavering trust and support towards GC’s operations. I would also like to assure you that we will continue to adhere to sustainable business practices and equip ourselves for challenges and changes as we foster growth in pursuit of leadership in the international chemical industry with a steadfast commitment to transparency, accountability, and fair and equitable treatment of shareholders. (Mr. Predee Daochai) Chairman For the long-term operational plan, we believe that our 3 Step Plus strategy is a step in the right direction but requires review, adjustment, and reprioritization to stay aligned with the current situation, taking into account the change in the industry landscape and making preparations for growth. Progress and achievements under the 3 Step Plus strategy are as follows: 1) Step Change: We enhance our competitiveness by reducing costs, optimizing operational efficiency through digital technology, adjusting production processes to enhance feedstock flexibility, expanding our customer base, and creating added value to our products. In 2023, we successfully restructured our logistics business under GC Logistics Solutions Co., Ltd. (GCL). By collaborating with WHA Venture Holding Company, GCL has bolstered its competitiveness in the logistics industry towards becoming an integrated logistics company with a comprehensive business network. 2) Step Out: We strive to foster growth in high-value and low-carbon businesses, which yield good returns, while also actively decarbonizing our three product groups. Specialty & Performance Chemicals: In 2023, our effort was focused on creating value and synergy with allnex across all dimensions. allnex was able to expand the coating business in Asia through the China Hub project and by co-establishing the Thailand Innovation Hub. In addition, Kuraray GC Advanced Materials Co., Ltd., commenced the commercial operation of its advanced engineering plastic production plant. Bio-based: We grew the PLA (polylactic acid) business through NatureWorks, which is currently constructing the second PLA plant at the Nakhon Sawan Biocomplex, Thailand’s first bio-hub. The new plant will help create jobs, generate income for farmers and workers in the area, as well as support the government’s policy. Circularity & Recycling: We scaled up the YOUTURN Platform nationwide to expand our integrated waste management and produced PCR through ENVICCO Co., Ltd. The high-quality food-grade PCR produced by ENVICCO has been certified by the US Food and Drug Administration (USFDA) and the European Food Safety Authority (EFSA) and is the first in Thailand to obtain certification from Thailand’s Food and Drug Administration. 3) Step Up: We seek to integrate sustainability into the foundation of our business operations and maintain our international leadership in sustainability, with the goal of achieving Net Zero Scope 1 and Scope 2 emissions by 2050 through clear action plans. In 2023, we exceeded our GHG reduction targets by optimizing efficiency and improving production processes, adopting energy-saving technologies, transitioning to renewable, low-carbon, or clean energy, and restructuring the portfolio towards high-value and low-carbon businesses to maintain profitability. Additionally, we undertook reforestation projects to offset carbon emissions through nature-based solutions and conducted research into Carbon Capture, Utilization, and Storage (CCUS) technologies. Thanks to our steadfast commitment to a sustainability-driven business approach that prioritizes an environmental, social, and economic balance alongside good corporate governance (ESG), GC has garnered recognition and various accolades both nationally and internationally, as detailed below. 31 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2023
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