PTT Global Chemical PCL

# Responsible Climate Lobbying

###### PTT Global Chemical Public Company Limited or GC is committed to participate and engage responsibly through our contributions as we grow our business by balancing our impact on Thailand's economy, society, and environment. To help achieve this, we contribute to national and international associations that support industries and the country in improving economic, environmental, and social dimensions for sustainable growth.

GC contributes to associations and organizations to help them in their mission of creating and supporting public policies and regulations. These associations and organizations assist policymakers by sharing information from external sources, research, and visions regarding sustainable growth for Thailand, different industries, health and safety, reducing environmental impact, and implementing the United Nations Sustainable Development Goals (SDGs).

GC, in support of the Paris Agreement, aims to achieve net zero emissions by 2050 by driving our decarbonization pathway through three pillars: efficiency-driven, portfolio-driven, and compensation-driven. To ensure that our contributions support the delivery of Thailand's NDC and the Paris Agreement, GC has established effective governance and oversight processes. GC's management system for contribution is in place and aligned with the UNGC's Guide for Responsible Corporate Engagement in Climate Policy. [...] # Governance (1)

|No.|Framework Indicator|GC Actions|
|---|---|---|
|4|Assign responsibility at board level for oversight of its climate change lobbying approach and activities|The Corporate Governance and Sustainability Committee (CGS) oversees the Management Committee (MC) which provides progress and updates from the Sustainability Development Committee (SDC). The CGS monitors and oversees progress against goals and targets for addressing climate-related issues. Approval for climate-related actions, including climate change lobbying, is also determined by the CGS. Therefore, the CGS is accountable for reviewing and implementing the management system for climate change-related lobbying activities and trade association memberships.|
|5|Assign responsibility at senior management level for day-to-day implementation of its climate change lobbying policies and practices|At the management level, the SDC was established to govern the strategic directions for the mitigation of climate change-related issues. One of SDC's responsibilities is to ensure that measures, policies, and strategies for the organization and its partners are aligned. This includes ensuring all climate change lobbying policies and practices that GC engages in must also reflect GC's overall visions and net zero ambition. SDC also reports the progress and implementation results to the MC and Group Management Committee (GMC). The final summarization will be reported to the CGS to oversee and provide recommendations for the next steps.|
|6|Establish an annual monitoring and review process to ensure that all of its direct and indirect climate change lobbying activities across all geographies are consistent with the goal of restricting global temperature rise to 1.5⁰C above pre-industrial levels|GC conducts a quarterly monitoring and review process to assess whether public policy engagements and lobbying are aligned with the Paris Agreement for all direct lobbying activities and trade associations we are involved in. Internally, GC's climate lobbying activities must be approved by the board where a review process is conducted to ensure that all direct and indirect activities across all geographies are consistent with Thailand's NDC and Paris Agreement. Externally, within each trade association and organization that GC contributes to, GC is involved in the development of a monitoring and evaluation system which is focused on ensuring that the activities of these trade associations and organizations are consistent with Thailand's NDC and the Paris Agreement.

Board-level committee|Climate Change issues are included under the direct responsibility of the Corporate Governance and Sustainability Committee and Risk Management Committee (RMC), which are appointed by the board of directors. Each committee consists of four members from the board of directors and an independent Chairman. Climate related issues such as Climate Change related laws and regulations that affect the whole company are evaluated and reviewed by the Corporate Governance Committee. This includes monitoring of relevant issues (including energy efficiency, alternative raw material sourcing, GHG mitigation and GHG reduction target). Currently, climate change risk is one of the corporate risk factors which has been managed and monitored by the RMC on quarterly basis. The RMC would ensure that corporate objectives are effectively achieved and our key risks including Climate-change related risks are managed.

###### Annex 1: Global Standard on Responsible Climate Lobbying [...] GC, in support of the Paris Agreement, aims to achieve net zero emissions by 2050 by driving our decarbonization pathway through three pillars: efficiency-driven, portfolio-driven, and compensation-driven. To ensure that our contributions support the delivery of Thailand's NDC and the Paris Agreement, GC has established effective governance and oversight processes. GC's management system for contribution is in place and aligned with the UNGC's Guide for Responsible Corporate Engagement in Climate Policy. [...] |No.|Framework Indicator|GC Actions| |---|---|---| |4|Assign responsibility at board level for oversight of its climate change lobbying approach and activities|The Corporate Governance and Sustainability Committee (CGS) oversees the Management Committee (MC) which provides progress and updates from the Sustainability Development Committee (SDC). The CGS monitors and oversees progress against goals and targets for addressing climate-related issues. Approval for climate-related actions, including climate change lobbying, is also determined by the CGS. Therefore, the CGS is accountable for reviewing and implementing the management system for climate change-related lobbying activities and trade association memberships.| |5|Assign responsibility at senior management level for day-to-day implementation of its climate change lobbying policies and practices|At the management level, the SDC was established to govern the strategic directions for the mitigation of climate change-related issues. One of SDC's responsibilities is to ensure that measures, policies, and strategies for the organization and its partners are aligned. This includes ensuring all climate change lobbying policies and practices that GC engages in must also reflect GC's overall visions and net zero ambition. SDC also reports the progress and implementation results to the MC and Group Management Committee (GMC). The final summarization will be reported to the CGS to oversee and provide recommendations for the next steps.| |6|Establish an annual monitoring and review process to ensure that all of its direct and indirect climate change lobbying activities across all geographies are consistent with the goal of restricting global temperature rise to 1.5⁰C above pre-industrial levels|GC conducts a quarterly monitoring and review process to assess whether public policy engagements and lobbying are aligned with the Paris Agreement for all direct lobbying activities and trade associations we are involved in. Internally, GC's climate lobbying activities must be approved by the board where a review process is conducted to ensure that all direct and indirect activities across all geographies are consistent with Thailand's NDC and Paris Agreement. Externally, within each trade association and organization that GC contributes to, GC is involved in the development of a monitoring and evaluation system which is focused on ensuring that the activities of these trade associations and organizations are consistent with Thailand's NDC and the Paris Agreement.| |7|Establish a process for engaging with stakeholders related to setting and reviewing its climate change lobbying policies, positions and activities|GC regularly engages with our stakeholders involved in climate-related policies and activities including our suppliers, customers, government representatives as well as industry peers and trade association and organization members to review our climate change-related policies, positions, and activities. GC works closely with government institutions as a part of the working team including being a part of the Climate Change steering committee of the Federation of Thai Industries (F.T.I), being a part of the Ministry of Foreign Affairs, Kingdom of Thailand, and a part of the Ministry of Finance. These institutions continuously perform programs related to engaging with stakeholders to support them in comprehending expectations from financial institutions, including customer trends, on climate change that will lead to setting and understanding of climate change lobbying positions and activities.| |8|Establish a clear framework for addressing misalignments between the climate change lobbying positions adopted by the associations, alliances and coalitions of which it is a member and the goal of restricting global temperature rise to 1.5⁰C above pre-industrial levels|Through regular engagements and review of the trade association or organization's activities with other members, GC ensures that the organizational objectives amongst trade association and organization members as well as the objectives of the trade association or organization are aligned with Thailand's NDC and the Paris Agreement. We have a clear framework for addressing misalignments in place. If misalignments are identified, discrepancies are addressed through extensive discussions and engagements with involved parties. Moreover, GC will reconsider and reassess its position in the trade association or organization and may distance the company from the misalignment if necessary to ensure alignment to Thailand's NDC and the Paris Agreement.| |9|Publish a detailed annual review covering the company's assessment and actions related to the 1.5⁰C-alignment of: (a) its own climate change lobbying activities; (b) the climate change lobbying activities of the associations, alliances, coalitions or thinktanks of which it is a member or to which it provides support|GC regularly reviews climate change lobbying activities, at least on an annual basis, to ensure that alignment to Thailand's NDC and the Paris Agreement. As part of the review process, GC engages with stakeholders and trade association and organization members to monitor policies and activities. Results of the review indicated that there were no misalignments between the climate lobbying activities conducted by the trade associations and Thailand's NDC or the Paris Agreement. All of GC's climate change-related actions, including climate lobbying, is approved by the board through the CGS.| |10|Recognise the existence of and report on action to address any misalignments between its climate change lobbying and/or the climate change lobbying activities of its trade associations, coalitions, alliances or funded thinktanks and the goal of limiting global temperature rise to 1.5 ⁰C above pre-industrial levels|GC has not identified any misalignments between our climate change lobbying and/or the climate change lobbying activities of the trade associations and Thailand's NDC or the Paris Agreement.|

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]GC highly values the importance of all stakeholder groups, and has continuously reviews stakeholder engagement activities and communication channels on annual basis. This is to ensure that stakeholders have opportunities to involve in the engagement and provide appropriate suggestions. GC has proactively engaged the government organizations to drive the country's Net Zero and climate change-related policies by exchanging views, strategies, and operation plans to support and enhance the effectiveness in the long run of climate change roadmap and action plan for both national and company levels. For example, GC has joined Thailand Carbon Neutral Network (TCNN), which is a Public Private Partnership to drive the Carbon Market or the carbon credit exchange market in Thailand which intends to support the private company to achieve GHG emission reduction target. TCNN was founded by Thailand Greenhouse Gas Management Organization (TGO), a Thailand public organization. Moreover, GC is also one of the founders of the Public Private Partnership for Sustainable Plastic and Waste Management (PPP Plastics) which aims to reduce the amount of plastic waste through sustainable waste management in line with the Circular Economy. At the same time, GC has continuously monitored the global climate change policies to ensure the national- and company-level targets are aligned with the global direction.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes