Guidelines for Risk Management and Internal Control

GGC has appropriate risk management and internal control guidelines, in line with international standards, namely the COSO (The Committee of Sponsoring Organization of the Treadway Commission) 2017 and ISO 31000 standards.

GGC assesses risks from the business environment with both internal and external factors that may affect the company's business operations. These risks cover corporate risks, operational risks, and emerging risks that could affect business operations over the next three to five years. GGC also establishes measures to prevent impacts and minimize the risk to an acceptable level.

Emerging Risks

Risks from Promoting Electric Vehicles (EVs)

Today's technological and digital developments are growing rapidly, in parallel with the growth of clean energy use. This is in line with the development direction of Thailand, in which the government promotes the usage of electric vehicles by accelerating the production of electric vehicles in Thailand within the next 5 years and becoming a base for 100% electric vehicle production in 2035. The growing trend of electric vehicles is inversely proportional to the decline in the use of biofuels in the future, prompting GGC, who operates in the biofuels sector, to look for new business opportunities to increase competitiveness and business diversity.

Business Impacts

The government measures to promote the use of electric vehicles have a significant impact on GGC, which operates a biofuel business. The impacts are as follows:

  • The demand for biofuels has decreased, which may negatively affect GGC’s revenue.
  • GGC’s competitiveness has decreased. Therefore, GGC must try to adapt appropriately to the situation.
Risk Mitigation Measures

GGC has implemented the following short-term and long-term risk mitigation measures:

  • Collaborate with PTT Global Chemical (GC) to maintain an alternative energy market, namely biodiesel (B100) and ethyl alcohol (E100), by focusing on collaborative processes with PTT Group customers to identify markets for export.
  • Research and develop Biohydrogenated Diesel (BHD) products, collaborating with partners to create a market for BHD products, and collaborating with the Thai government to push for policies and promote BHD products.
  • Expand GGC’s line of products to include downstream products, such as Phase Change Materials (for the insulation industry), surfactants such as MES, and Bio lubricant (for the food and pharmaceutical industries), as well as take the opportunity to start a BioJet business for jet fuel.