Materiality Topics
Materiality Assessment Process
GGC developed our Integrated Sustainability Report by selecting and assessing materiality topics that are material to the development of GGC’s sustainability along with materiality topics that are consistent with stakeholder expectations. GGC’s Integrated Sustainability Report follows guidance according to the Global Reporting Initiative (GRI) Standards 2021, the Integrated Reporting (IR) Framework by the International Integrated Reporting Council (IIRC), and the Taskforce on Climate-related Financial Disclosures (TCFD) framework. The report also follows the annual Form 56-1 One Report guideline. By following the aforementioned standards, the prioritization of materiality topics follows the outlined of GRI Standards which comprises 4 steps detailed as follows:
GGC consolidated information related to business operations across the value chain including both internal and external information in the context of sustainability through the economic, social, and environmental dimensions. Information is collected from engagements with stakeholders and experts, researching trends in response to global issues and industry trends as well as comparisons of the company’s strategic direction and challenges with the UN Sustainable Development Goals. In addition, GGC also consistently conducts interviews with various stakeholder groups to better understand the context around our operations. An assessment or a review of identifying material issues will be conducted every year to identify key issues, changes, and the impact that may affect the Company in a timely manner.
GGC engaged and conducted interviews with 6 stakeholder groups including shareholders, investors & analysts, communities & society, government agencies, employees, business partners, customers, and industry experts to discuss concerns and expectations related to positive and negative impacts that may arise from material topics which range from economic, social and environmental topics. This also includes human rights impacts on stakeholders and business risks and opportunities that may arise from internal and external factors within the value chain. The analysis and identifying of these materiality topics were in accordance with the Double Materiality preparation, which supports the Company in its identification of both external impacts on the organization and the impacts of the organization on the external world.
Understanding these impacts allows GGC to prepare and respond to negative impacts while creating positive impacts throughout our operations.
After the identification of material topics in Step 2, GGC collects stakeholder and expert opinions to assess the positive and negative impacts on the economy, society, environment, and human rights in terms of the possibility of those impacts occurring (likelihood) and the severity of those impacts (severity). In determining the severity of impacts, the scale and scope of the impact are assessed, for example, the widespread of the impacts and the number of people that got affected by the impacts. For negative impacts, the ability to mitigate and remediate the impact (remendability) of the impact is also assessed.
Assessment results from Step 3 are used to prioritize GGC’s material topics where the results are tested through a comparison against global perception trends on the importance of various international issues. Results of the Company’s assessment for significance are presented in terms of their relation to the organizational context, targets, and strategy. The selection and disclosure of material topics and related content in GGC’s Integrated Sustainability Report 2022 were approved to disclose and report by the Sustainable Development Committee, the Executive Committee, and the Corporate Governance Committee. Furthermore, to ensure the transparency, clarity, and validity of the disclosed information, the materiality assessment process, stakeholder engagement process, and data collection and evaluation process have been verified by an external third-party verifier. The verification results can be found in the Appendix of this report.
Report Content Defining Process
Material Topics and Management of Material Topics GRI 3-3 (2021)
Impact to Company
Type of Impact : Positive
- Operations in accordance with the business ethics resulted in the Company being able to deal with various risks in a timely manner
Type of Impact : Negative
- Bad corporate governance. or the violation of business ethics will lead to the loss of trust and confidence of stakeholders.
Impact to External Stakeholders
Type of Impact : Positive
- Good corporate governance promotes confidence and better performance, which creates good returns for both internal and external stakeholders.
Impact Level
Impact Boundary, Key Stakeholders and Human Rights
Within Organization
Outside Organization
Management Approach and Key Initiatives
ISR:
- Corporate Governance
- Business Ethics
- Risk Management
GRI
SDGs
Impact to Company
Type of Impact : Positive
- Develop production for higher efficiency. resulting in a reduction of greenhouse gas emissions of more than 1,436 tCO2e per year and reduced costs of more than 29.2 million THB.
- Support the development of low-carbon products, which amounted to more than 50% of the products in 2022.
Type of Impact : Negative
- Climate change could affect the acquisition of agricultural raw materials, with a price increase of more than 30% for sugar cane and 40% for oil palm. It may also affect production and may lead to interruptions in the production process.
Impact to External Stakeholders
Type of Impact : Positive
- Build confidence for investors.
- Meet the needs of customers who are interested in climate change.
- Increase business opportunities with suppliers who have operations in climate change
- Government agencies are encouraged to issue policies or measures on climate change.
Type of Impact : Negative
- Farmers suffer from climate change leading to lower production numbers and possibly lower quality of raw materials.
Impact Level
Impact Boundary, Key Stakeholders and Human Rights
Within Organization
Outside Organization
Management Approach and Key Initiatives
ISR:
- Operational Excellence
- Sustainable Product (Growth-Portfolio)
- Carbon sequestration and offsetting (Compensation)
GRI
- GRI 305 Emission 2016: SOx, NOx and other significant air emissions (GRI 305-7)
- GRI 303 Water and Effluent 2018: Water Withdrawal (GRI 303-3), Water Discharge (GRI 303-4), Water Consumption (GRI 303-5)
- GRI 306 Waste 2020: Waste Generated (GRI 306-3), Waste Diverted from Disposal (GRI 306-4), Waste Directed to Disposal (GRI 306-5)
- GRI 302 Energy 2016: Energy Consumption within the organization (GRI 302-1), Total energy consumption outside the organization (GRI 302-2); Energy intensity (GRI 302-3)
- GRI 305 Emissions 2016: Direct (Scope 1) GHG Emissions (GRI 305-1), Energy Indirect (Scope 2) GHG Emissions (GRI 305-2), Other Indirect (Scope 3) GHG Emission (GRI 305-3)
SDGs
Impact to Company
Type of Impact : Positive
- Accurate and timely risk analysis lead to an effective Business Continuous Plan that can reduce the risk of damage to the reputation, performance, and operations of the Company.
Type of Impact : Negative
- Inefficient risk management may lead to failure in business operations. and negatively impact both internal and external stakeholders.
Impact to External Stakeholders
Type of Impact : Positive
- Preparation of a risk management plan can reduce problems that may occur to external stakeholders in terms of both Operational Risks and Climate Change Risks.
Type of Impact : Negative
- Risks affecting the Company's performance may result in lower operating results and a lower share price. This brings lower financial returns to investors.
Impact Level
Impact Boundary, Key Stakeholders and Human Rights
Within Organization
Outside Organization
Management Approach and Key Initiatives
GRI
SDGs
Impact to Company
Type of Impact : Positive
- The Company's products that have received the carbon footprint reduction label or global warming reduction labels account for more than 56 percent of all products. This can reduce greenhouse gas emissions by more than 206,322.55 tCO2e.
- The Company's low-carbon products account for 34% of total products. This can reduce greenhouse gas emissions by more than 243,097.80 tCO2e.
Impact to External Stakeholders
Type of Impact : Positive
- Creating environmentally friendly products and low carbon products allows the Company to increasingly respond to changes in customer needs.
- Presenting, investing and researching low-carbon products allow the Company to push and create learning for the oleochemical industry in Thailand.
Impact Level
Impact Boundary, Key Stakeholders and Human Rights
Within Organization
Outside Organization
Management Approach and Key Initiatives
GRI
SDGs
Impact to Company
Type of Impact : Positive
- Employee potential development can result in more efficient operations.
- Creating clear employee growth opportunities can create better employee engagement and allows for more efficient employee retention.
Type of Impact : Negative
- Lack of a good employee care plan may lead to bad reputation and discourage Skilled Labor from choosing to work with the Company.
Impact to External Stakeholders
Type of Impact : Positive
- Employee potential development results in employees having better opportunities for career advancement.
- Employee potential development is an important part in creating prosperity and the potential for economic growth of the country.
Impact Level
Impact Boundary, Key Stakeholders and Human Rights
Within Organization
Outside Organization
Management Approach and Key Initiatives
ISR:
- Employee Development
- Employee Retention
- Employee Attraction
- Employee Recruitment
GRI
- GRI 405 Diversity and Equal Opportunity 2016: Ratio of basis salary and remuneration (GRI 405-2)
- GRI 2 General Disclosure 2021 (GRI 2-7)
SDGs
Impact to Company
Type of Impact : Positive
- Build stability in business operations for the Company, trade partners and suppliers.
- Reducing production costs allows customers to access quality products at reasonable prices.
- The continuity of product delivery.
Type of Impact : Negative
- Selection of ineffective suppliers may lead to problems caused by the supplier’s law violations or environmental problems and human rights problems, which lead to loss of reputation for the Company.
Impact to External Stakeholders
Type of Impact : Positive
- Encouraging and educating farmers in Thailand on sustainable palm plantation increases the potential of farmers in Thailand, reduces deforestation, and reduces the impact from human rights risks that may arise from planting oil palm and other agricultural raw materials.
Type of Impact : Negative
- Failure to promote the cultivation of standardized agricultural raw materials may lead to risks in deforestation for agriculture, which affects the biodiversity of the country.
Impact Level
Impact Boundary, Key Stakeholders and Human Rights
Within Organization
Outside Organization
Management Approach and Key Initiatives
ISR:
- Sustainability-Related Risks Management
- Raw Materials Management
- Logistics and Warehouse Management
GRI
- GRI 308 Supplier Environmental Assessment 2016: Disclosure GRI 308-1 New suppliers that were screened using environmental criteria
- GRI 414 Suppliers Social Assessment 2016: Disclosure GRI 414-1 New Suppliers that were screened using social criteria
SDGs
Impact to Company
Type of Impact : Positive
- Suppliers and customers develop innovations with the Company.
- Investment in research and development of products amount to 1.96 million THB.
Type of Impact : Negative
- Delayed response to innovation changes may result in the Company losing Business Competitiveness and cause loss of market share to competitors.
Impact to External Stakeholders
Type of Impact : Positive
- Communities, customers and partners apply the Company's innovation knowledge to their management practices.
- Suppliers and customers develop innovations with the Company.
- Employees receive innovation knowledge, resulting in more efficient work.
- The Company is able to provide greater returns to shareholders through the development and application of innovation.
- The Company is able to promote the economic, social and environmental development of the country.
Impact Level
Impact Boundary, Key Stakeholders and Human Rights
Within Organization
Outside Organization
Management Approach and Key Initiatives
GRI
SDGs
Impact to Company
Type of Impact : Positive
- Cyber Threat Protection efficiently builds credibility with stakeholders.
Type of Impact : Negative
- Lax data management and cybersecurity may result in the leak of important information and Company secrets.
Impact to External Stakeholders
Type of Impact : Positive
- Employees and suppliers are confident in working with the Company.
Type of Impact : Negative
- Lax data management and cybersecurity may result in the leak of important information of relevant stakeholders.
Impact Level
Impact Boundary, Key Stakeholders and Human Rights
Within Organization
Outside Organization
Management Approach and Key Initiatives
ISR:
- Operational Excellence
- Logistics and Warehouse Management
GRI
SDGs
Impact to Company
Type of Impact : Positive
- Help reduce the negative impact on Company image and build Company reputation.
- Build good relationships with the community through participation in various fields.
Impact to External Stakeholders
Type of Impact : Positive
- Consistent Community Relation can improve the quality of life and raise the income level for people in the community.
Impact Level
Impact Boundary, Key Stakeholders and Human Rights
Within Organization
Outside Organization
Management Approach and Key Initiatives
GRI
- GRI 201 Economic Performance 2016: Community Investment (GRI 201-1)
SDGs
Impact to Company
Type of Impact : Positive
- Create satisfaction for customers with a customer satisfaction level of 95 percent, which helps retaining current customers and expanding to a new customer base.
- Increase opportunities to expand business with customers.
Impact Level
Impact Boundary, Key Stakeholders and Human Rights
Within Organization
Outside Organization
Management Approach and Key Initiatives
GRI
SDGs
Impact to Company
Type of Impact : Positive
- Operations that take into account biodiversity helps reduce the risk of deforestation in the acquisition of the Company's raw materials, reduce risks that may occur to the environment, and reduce the risk of negative reputation.
Impact to External Stakeholders
Type of Impact : Positive
- Forests, natural resources, and biodiversity become more abundance.
- Better management of biodiversity results in better natural ecosystems and the ability to reduce natural impacts on the suppliers’ production of agricultural raw materials.
Impact Level
Impact Boundary, Key Stakeholders and Human Rights
Within Organization
Outside Organization
Management Approach and Key Initiatives
ISR:
- Carbon sequestration and offsetting (Compensation)
GRI
SDGs
Impact to Company
Type of Impact : Positive
- Organizational culture creation and raising awareness in terms of safety management in the workplace, including safety in the production process and personal safety, can reduce accidents in operation and reduce risks to employees' operations, as well as create a better working environment.
Type of Impact : Negative
- Accident or work-related death of employee, subcontractors or similar personnel may cause operational disruption and affect the reputation of the Company.
Impact to External Stakeholders
Type of Impact : Positive
- Building a good safety culture throughout the supply chain, including suppliers and customers, leads to the reduction of problems in the supply chain and creates better operating potential.
Type of Impact : Negative
- Losses arising from work accidents may cause disability of individual employee, may affect the family of the employee, and create difficulties in life.
Impact Level
Impact Boundary, Key Stakeholders and Human Rights
Within Organization
Outside Organization
Management Approach and Key Initiatives
GRI
- GRI 403 OHS 2018: Work Related injuries (GRI 403-9), Works Related Ill health (GRI 403-10)
- Number of process event safety (OGSS OG13), to be replaced by GRI 306 Waste 2016 (GRI 306-3) which is topic standard disclosure for 2021 O&G Sector Standard Ref.No.11.8.3
SDGs
Sample of Management of Significant Material Topics
| Material Issues | Corporate risk factor | Targets and Progress | Corporate KPI* | References |
|---|---|---|---|---|
| Climate Strategy and Energy Management | Strategic Risk: Climate Action Towards Net Zero Risk |
|
|
Climate Strategy Energy Management |
| Supply Chain Management – RSPO |
Operational Risk Factors: Price quality risk factor and availability of agricultural raw materials Reputational Risk Factors: The risk of losing the Company's good reputation from procurement of raw materials that cause damage to the environment and society |
|
|
ISR
|
| Occupational Health and Safety | Business as Usual Risk: Operational and Safety Risk |
|
|
Occupational health and safety management |
*Remark: The Corporate KPI is accounted to 70% of Exectuive Individual KPIs
Fore more information, see: GGC Materiality External Impact Valuation 2023