Climate Strategy
Challenges and Commitments
GGC is aware of the risks of climate change and the impact of greenhouse gases that have increased in severity, as well as risks from natural disasters such as drought, floods, monsoons, etc., which can affect GGC's business operations and may cause disruption of business operations in the value chain. Therefore, GGC is committed to managing climate change to achieve international goals. GGC has expressed its position to participate in the implementation of the agreements of the 26th and 27th United Nations Convention on Climate Change (COP26 and COP27). GGC strives to mitigate impacts and manage greenhouse gases, develop energy efficiency in the production process cost-effectively and with full efficiency, as well as reduce greenhouse gas emissions from GGC's production activities.
Key Stakeholders
Employee
Community
Shareholder, Investor and Analyst
Government
Supplier and Business Partner
Customer
Goals
1,080.05
tonCO2 equivalent.
20 %
by 2030 compared to 2020 base year.
Net Zero
(Scope 1 and 2) by 2050.
50 %
by 2050 with based year 2020
Management Approach
Climate Change Management Structure
The main strategy for climate change management is defining a risk management structure which consists of the Chairman, Directors and Chief Executive Officer. Each management level is assigned their respective duties and responsibilities:
| Supervision Level | Duties and Responsibilities |
|---|---|
| Supervision Level: Chairman | Duties and Responsibilities:
Supervise, formulate strategies, set operational plans, and monitor the performance of risk and opportunity management of the organization that may be caused by climate change in order to set measures to mitigate the risks and form a suitable framework for GGC’s operations. This includes preparation for GGC to fully support the move towards a low carbon economy that may lead to the discovery of new business opportunities in the future. |
| Supervision Level: Board | Duties and Responsibilities:
The Risk Management Committee and the Corporate Governance and Sustainable Development Committee are responsible for monitoring regulations related to climate change so that GGC can respond quickly to changes, whether in the form of energy efficiency, alternative energy applications, or setting greenhouse gas emission targets. |
| Supervision Level: Chief Executive Officer (CEO) | Duties and Responsibilities:
The CEO is responsible for the distribution of work and management of company operations according to the strategies, policies, and budgets that have been allocated. This includes the formulation of support plans and control of operations to achieve GGC’s short-term and long-term targets. |
Approaches to Dealing with Climate Change
GRI 201-2 (2016)
GGC has set a goal to achieve net zero greenhouse gas emissions by 2050 through the Decarbonization Pathway action plan, which consists of operating Efficiency-Driven, Portfolio-Driven, Compensation Driven business operations, as well as a plan to expand the scope of operations to cover GHG Scope 3 Other Indirect Emissions throughout the value chain.
GGC has performed a Climate Risk and Opportunity Assessment, as well as an assessment of the impact on the business sector according to the Task Force on Climate-related Financial Disclosures (TCFD), which is part of the strategy enhancement and the enhancement of reporting on climate change.
Action Plan
- Efficiency Driven to increase operational efficiency, reduce the use of energy resources, reduce greenhouse gas emissions, and reduce other wastes from the production process.
- Portfolio Driven by focusing on investment towards low-carbon business and product portfolio management from upstream through calculation of greenhouse gas emissions by life cycle assessment and applying 3RS to develop low-carbon products.
- Compensation Driven to apply natural carbon absorption methods and find new technologies to capture and offset greenhouse gases that cannot be reduced from the production process.
In addition, GGC has researched and strategized regarding Carbon Capture and Storage (CCS) technology with PTT Global Chemical Public Company Limited. There are currently plans to offset carbon through the purchase of Renewable Energy Certificates (RECs) and Carbon Credits.
For more about projects based on climate change strategies, see the 2023 Integrated Sustainability Report at Integrated Sustainability Report 2023
- Operational Efficiency-Driven Project for the Fatty Alcohol Distillery Tower by applying innovation to develop the Process Innovation to reduce the use of steam energy and energy to generate steam, which reduces costs and greenhouse gas emissions.
- Optimize Steam Project at Ejector System by using the Steam Ejector to create a vacuum in the production process to reduce the amount of steam energy and energy to produce steam, which reduces costs and greenhouse gas emissions.
- Care the Wild “ปลูกป้อง Plant & Protect” Project at GGC has participated in reforestation at Thong Pha Phum District, Kanchanaburi Province.
- Low Carbon Products which are certified with the Carbon Footprint Products (CFP) label and the Carbon Footprint Reduction (CFR) label.
For more details on GHG emissions performance, see Performance Data