Value Chain Management
Challenges and Commitments
GGC is firmly committed to serving as a responsible driver and contributor to the sustainable and resilient growth of the Oleochemical Industry across economic, social, and environmental dimensions. GGC also promotes business practices grounded in transparency, integrity, and Corporate Governance, ensuring that its operations adhere to the highest ethical standards.
Key Stakeholders
Customer
Supplier and Business Partner
For additional information on stakeholder engagement: Stakeholder Engagement
Goals
to strengthen Customer Retention through the development of long-term customer satisfaction.
Key Performance in 2025
Management Approach
To support the delivery of high-quality products that meet sustainability expectations, GGC manages the Supply Chain Management Process with careful and efficient oversight. GGC selects products, raw materials, and services from sources that prioritize environmental responsibility, aligning with the ambition to achieve Net Zero greenhouse gas emissions by 2050 through its strategic Decarbonization Pathway. This pathway emphasizes the development of environmentally friendly chemical products (Portfolio-Driven). GGC categorizes its Suppliers and Business Partners into three groups:
- Feed Suppliers
- Non-Feed Suppliers
- Service Suppliers
Supply Chain Management Process
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Manage supplier relationships and communicate the Business Code of Conduct Handbook to all Suppliers and Business Partners. GGC also strengthens the capabilities of procurement personnel through various training programs to ensure that procurement activities align with GGC’s sustainability strategies and goals. |
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Conduct annual supplier assessments covering ESG Risk Screening, Supplier Selection and Registration, and Supplier ESG Risk Management to determine Supplier Identification. |
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Promote and support Supplier Capacity Development through various initiatives to enhance awareness and encourage more socially and environmentally responsible business practices. |
Supplier Code of Conduct
To promote good governance throughout the supply chain, GGC sets clear guidelines for Suppliers and Business Partners to operate responsibly and consistently with its Corporate Governance policy. The Corporate Governance and Sustainable Development Committee oversees the review and enhancement of ethical practices for producers, suppliers of goods, and service providers, while the Board of Directors also oversees the implementation of suppliers' ESG. [E5.1]These guidelines cover key aspects such as compliance with relevant laws, human rights, labor standards, occupational health and safety, and environmental protection. GGC conducts ongoing audits of supplier operations, taking into account ESG considerations and compliance with applicable laws, regulations, and standards. This ensures transparency, accountability, and trust among all Stakeholders throughout the supply chain.
GGC has also established a sustainable procurement protocol to drive ESG practices in purchasing, particularly for agricultural feedstock such as palm oil and other agricultural commodities. Sustainable procurement consists of four key areas:
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Feedstock Procurement Policy
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Supplier Qualifications
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Reducing Environmental Impacts from Logistics
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RSPO Feedstock Procurement
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In 2025, all 109 of GGC’s Critical Suppliers (100%) including suppliers of palm oil, palm oil derivatives, and methanol[SY6.1][ERM6.2] acknowledged the Business Code of Conduct Handbook, which contains ethical guidelines for producers and suppliers of goods, raw materials, and services.
For additional information on the Supplier Code of Conduct: Good Corporate Governance and Business Ethics Handbook
Purchasing Officer Training
GGC promotes the development of procurement personnel by providing training programs to strengthen understanding of procurement practices that align with GGC’s sustainability strategy and goals. GGC also supports the use of information technology to improve procurement processes, enhancing accuracy and operational efficiency.
Project to Promote Knowledge and Understanding of Sustainable Procurement
GGC, in collaboration with PTT Global Chemical Public Company Limited or GC, organized a project to promote knowledge and understanding of sustainable procurement. The initiative aims to strengthen the knowledge of procurement employees and relevant functions, such as environment, safety, and occupational health, on procurement practices that integrate sustainability considerations across environmental, social, and governance dimensions, ESG. The project also included a review of procurement processes to ensure alignment with the organization’s sustainable procurement standards.
Outcomes and Benefits
- Employees gained a clear understanding of sustainable procurement principles and are able to apply them appropriately in procurement processes.
- The organization’s procurement processes are aligned with environmental, social, and governance guidelines.
- The project supports GGC’s sustainability goals and enhances the organization’s long-term reputation.
EUDR, CBAM and Carbon Tax Training Program
GGC organized a technical training program on the EU Deforestation Regulation, EUDR, the Carbon Border Adjustment Mechanism, CBAM, and carbon tax to prepare the business and industrial sectors for upcoming international environmental regulations that will soon come into force. These regulations will impact production processes, exports, and supply chains. GGC nominated employees from the procurement department, the sustainability management department, and Corporate Strategy Department
The training covered the following topics:
- EU Deforestation Regulation, EUDR: This regulation requires products exported to or imported into the European Union to be verified and certified as not contributing to deforestation and as compliant with the relevant laws of the producing country. The regulation covers seven commodities: palm oil, wood, rubber, soy, coffee, cocoa, and cattle, and is based on three key requirements:
- Products and commodities must originate from areas that are not associated with deforestation or forest degradation.
- Production processes must fully comply with the laws of the producing country.
- A due diligence statement must be prepared to demonstrate verification and analysis of the status of the products.
- Carbon Border Adjustment Mechanism, CBAM: CBAM aims to prevent carbon leakage from imported products. During the transition period from 2026 to 2032, exporters of six product categories to the European Union must: กลไกการปรับคาร์บอนก่อนเข้าสหภาพยุโรป (Carbon Border Adjustment Mechanism: CBAM)
- Prepare greenhouse gas emissions reports for products, verified by an independent third party.
- Comply with the gradual phase-out of free allocation of emission allowances under the EU Emissions Trading System.
- Pay a penalty of 100 euros per one ton of excess carbon dioxide equivalent (tCO2e) if emissions exceed the specified threshold.
- Draft Climate Change Act of Thailand: This draft law, expected to enter into force during 2026 to 2027, will serve as the overarching framework for managing and reducing greenhouse gas emissions in Thailand. Key elements include:
- Imposition of a carbon tax based on the excise tax rate on fuel oil of 200 Thai Baht per one ton of carbon dioxide equivalent.
- Preparation of a greenhouse gas inventory, where the private sector will be required to collect data, assess, and report information regularly to government agencies.
- Establishment of a Climate Change Fund to support greenhouse gas reduction activities, including measurement, research, and project development such as reforestation, registration of T-VER projects, and certification of carbon credits.
- Carbon tax calculation based on greenhouse gas emissions throughout the Life Cycle Assessment (LCA) of products, with further details to be specified in ministerial regulations after the Act enters into force.
Outcomes and Benefits
- A total of 30 employees from procurement and other relevant departments participated in the training.
- Employees gained a clear understanding of upcoming regulatory requirements and are able to prepare the necessary data and documentation accurately.
- The program strengthens communication and collaboration with customers, suppliers, and business partners on sustainability issues.
ESG Risk Screening for Supplier
GGC has established a supplier selection process that evaluates risks across multiple dimensions, covering environmental, social, and governance aspects, ESG. This includes respect for human rights, fair treatment of workers, ethical business conduct, and compliance with environmental laws. The process also considers business relevance and country-specific risks arising from economic, social, political, or other factors such as natural disasters. In addition, sector-specific risks and commodity-specific risks related to price volatility of products and raw materials are assessed, especially where fluctuations in commodity prices may significantly affect procurement costs.
GGC plans to integrate ESG topics and performance into the criteria for supplier assessment. This will include climate change management, such as setting carbon reduction targets and water resource management. These criteria will initially be applied to non-feedstock suppliers and subsequently expanded to feedstock suppliers.
All suppliers must meet GGC’s qualification and capability criteria to be listed on the Approved Vendor List, AVL. The assessment, carried out through Supplier Questionnaires and Supplier Qualification Forms, covers four key risk dimensions:
- Technical: Assessment of the supplier’s ability to comply with technical specifications and project requirements, including management capability and organization, equipment, tools and inventories, experience, know-how and expertise, and relevant certifications and standards.
- Quality Assurance and Quality Control: Assessment of the supplier’s ability to ensure the quality of products and services.
- Safety, Health and Environment: Assessment of the supplier’s performance in workplace safety, environmental responsibility, and ethical conduct.
- Commercial: Assessment of pricing, payment terms, and the supplier’s overall commercial potential.
GGC is committed to sustainable business operations and places strong emphasis on environmental, social, and governance performance, including ethics, legal compliance, and societal impacts. ESG performance reflects GGC’s commitment to building a transparent, responsible, and long-term sustainable supply chain.
In 2025, GGC conducted ESG risk assessments for 109 Critical Suppliers and found no supplier-related risks. None of the suppliers engaged in practices that violated labor rights, human rights, or good Corporate Governance and business ethics. There were also no complaints related to human rights, ethics, legal compliance, or business ethics submitted through GGC’s Vendor Criticism mechanism.
Supplier Assessment
GGC has developed a Self-Assessment Questionnaire, SAQ, for suppliers, which is used for annual evaluations across five key areas, alongside annual ESG risk assessments for Critical Suppliers. The objective is to develop and continuously monitor supplier performance in line with GGC’s Supplier Code of Conduct and sustainability goals, including compliance with laws, ethics, human rights, safety, occupational health, environment, and international standards such as ISO 9001, ISO 14001, and RSPO. Purchasing practices towards suppliers are continuously reviewed to ensure alignment with the Supplier Code of Conduct and to avoid potential conflicts with ESG requirements.
5 Key Areas of Supplier Assessment
Industry StateWeight = 20%
- Product quality and quality confirmation
- Ability to provide supporting documents and reports
- Warnings or notifications from logistics providers
- Reporting capability
- Certificates and industry standards that cover ESG topics including:
- Governance
- Quality Management Systems (QMS) – ISO 9001 or related policies
- Anti-Bribery Management Systems (ABMS) – ISO 37001
- Environment
- Environmental Management Systems (EMS) – ISO 14001 or related policies
- Occupational Health and Safety Management Systems (OH&S) – ISO 18001 or related policies
- Roundtable on Sustainable Palm Oil (RSPO)
- KOSHER standard
- HALAL standard
- Social
- Thai Labor Standard 8001-2020
- Governance
Suppliers' Flexibility and Bargaining Power Weight = 6%
- Dependency on a single supplier
- Business diversification
Accounting Finance and Other PerspectiveWeight = 4%
- Status as a listed company
- Business continuity and stability
Ability to Deliver Raw Materials and ServicesWeight = 8%
- Reliability of supply
Competitiveness of SuppliersWeight = 12%
- Competitive pricing
- Credit terms
- Availability of RSPO-certified products
Supplier assessments are also conducted through on-site visits by representatives from the procurement department or relevant functions as 2nd party assessment. [E10.1]These visits use the assessment form titled Criteria for Evaluating the Sustainability Potential of Suppliers, which includes questions aligned with ESG practices.
Number of GGC Suppliers ISO 14001 RSPO or Supplier Code of Conduct
of Feedstock Suppliers
of Feed Suppliers for fuel oil
of Non-Feed Suppliers
Furthermore, GGC utilizes the EcoVadis sustainability management platform as supplier assessments. The supplier assessments (desk or on-site) are carried out using standards and methodologies of a recognized industry or multi-stakeholder initiative. Supplier assessments, carried out through this platform, cover environmental issues, labor and human rights, ethics, and sustainable procurement. Suppliers are categorized into five levels: very good quality, good quality, average quality, average quality under monitoring, and low quality. GGC defines purchasing conditions for raw materials that are appropriate to each supplier category.
EcoVadis is an internationally recognized assessment methodology utilized to rate the sustainability performance of suppliers and companies operating within the supply chain. The sustainability issues are determined by internationally recognized standards such as:
21 Sustainability Criteria
Environment
Operations
- Energy Consumption & GHGs
- Water
- Biodiversity
- Local & Accidental Pollution
- Materials, Chemicals & Waste
Products
- Product Use
- Product End-of-Life
- Customer Health & Safety
- Environmental Services & Advocacy
Labor & Human Rights
Human Resources
- Employee Health & Safety
- Working Conditions
- Social Dialogue
- Career Management & Training
Human Rights
- Child Labor, Forced Labor & Human Trafficking
- Diversity, Discrimination & Harassment
- External Stakeholder Human Rights
Ethics
- Corruption
- Anticompetitive Practices
- Responsible Information Management
Sustainable Procurement
- Supplier Environmental Practices
- Supplier Social Practices
Supplier Selection and Registration Process
GGC has assigned the GGC Credit Rating Committee to oversee the Supplier Selection and Registration Process. Suppliers that wish to be registered as new suppliers in the Approved Vendor List (AVL) are required to complete the Vendor Qualification Form, which assesses their qualifications and capabilities. The assessment covers Environmental, Social and Governance (ESG) risks, as well as business relevance, including technical capability, quality, occupational health and safety, environment, financial status, ethics, legal compliance, and social responsibility. ESG performance accounts for 100 [SY12.1]percent of the ESG evaluation, and suppliers with stronger and better ESG performance are preferred in supplier selection and contract awarding.
Supplier Selection and Registration Process
GGC classifies Suppliers according to purchasing categories into three groups:
- Feed Suppliers
- Non-Feed Suppliers
- Service Suppliers
In 2025, a total of 109 suppliers passed the preliminary assessment criteria and were approved, consisting of 6 new suppliers and 103 existing suppliers.
| New Suppliers and Total Suppliers 2025 | ||
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| Type of Supplier | New Suppliers 2025 | Total Suppliers 2025 |
| Feed Suppliers | 6 | 107 |
| Non-Feed Suppliers | 0 | 2 (fuel oil) |
| Services | - | - |
From the ESG capability assessment of suppliers through the Vendor Qualification system, combined with criteria on market competitiveness and total purchasing value, GGC classifies suppliers and evaluates risk as follows
| Supplier Categories | 2025 |
|---|---|
| Group of Suppliers in Tier-1 Suppliers in Tier-1 |
54 group of product and service 4,200 suppliers |
| Total number of significant/critical suppliers in Tier-1 Total number of suppliers who conduct ESG assessment 1) Irreplaceable |
21 group of product and service 67 suppliers* |
| Proportion of purchase value from Suppliers in Tier-1 | 57.5 percent |
| Total number of Supplier in Significant/Critical in Non-Tier 1 | 0 suppliers |
| Suppliers who have received risk assessments through Desk Assessment or Onsite Assessment | Suppliers Assessed with Substantial Actual/ Potential Negative Impacts |
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| 67 supplier* (100%) | 4 supplier* (5.9%) |
| Number of Suppliers assessed with substantial actual/potential negative impacts that were terminated | |
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| 0 supplier* |
| Suppliers with Substantial Actual/Potential Negative Impacts with Agreed Corrective Action/Improvement Plan | Suppliers with substantial actual/potential negative impacts supported in Corrective Action Plan Implementation |
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| 4 supplier* ( 100%) | 4 supplier* (100%) |
*Note: Calculated based on Tier-1 key partners from Non-Feed suppliers only.
Supplier ESG Risk Management
GGC has adopted the Supply Positioning Model (SPM) as a strategic tool for Supplier ESG Risk Management. The model combines Spend Analysis with Risk Assessment, covering both the impact on GGC’s overall operations and ESG-related risks. Insights from SPM enable GGC to design appropriate supplier relationship management plans for each supplier group, as well as monitor, review, and evaluate supplier performance and identify long-term development pathways to enhance supplier capability.
Under this model, suppliers are prioritized into three levels: Strategics Supplier, Key Supplier, and Manage Supplier. This approach strengthens Supplier Relationship Management (SRM) and elevates procurement practices to align with GGC’s business strategies.
| Significant Level | Definition | Strategic Management | Management Tools |
|---|---|---|---|
| Strategics Supplier | Suppliers that are critically important to GGC’s operations and carry a high level of risk that may significantly affect local communities and the suppliers’ own organizations, potentially leading to severe impacts on GGC’s business and corporate reputation | Develop long-term relationships and enhance supplier capability in line with GGC’s policies and strategic direction. • Supplier Code of Conduct |
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| Key Supplier | Suppliers that distribute products to end-users and may have a high level of impact on GGC’s business and corporate image. | Set joint performance targets and collaborate to continuously improve service levels. |
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| Manage Supplier | Suppliers that mainly perform operational activities, which may affect communities or surrounding areas, but pose low to moderate risk to GGC as the buyer. | Monitor supplier performance to ensure full compliance with contractual terms and conditions. |
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If the supplier evaluation indicates that a supplier is classified as significant with a high level of risk, GGC will consider that the supplier does not meet the assessment criteria. GGC will then work with relevant internal functions to provide guidance and propose systematic corrective actions. Progress will be followed up, re-evaluated, and re-checked within a specified timeframe. If the supplier is still unable to improve or comply with the agreed requirements, GGC may limit purchase orders, temporarily suspend procurement activities, or remove the supplier from GGC’s Approved Vendor List, meaning suppliers are excluded from contracting if they cannot achieve minimum ESG requirements within a set timeframe.
GGC compiles and analyses supplier ESG risk assessment results covering key risks such as environmental management, occupational health and safety, human rights, legal compliance, and economic risks arising from supplier operations. Based on these assessments, GGC develops recommendations and improvement measures to support suppliers in continuously enhancing their operations in line with GGC’s standards.
Example of suggestions and corrective Measures or Measures to Develop the Operations of Supplier
| Environmental | Suggestions and corrective measures or measures to develop environmental management |
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| Environmental management |
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| Social | Suggestions and corrective measures or measures to develop environmental management |
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| OHS Management |
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| Human Rights |
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| Governance & Economic | Suggestions and corrective measures or measures to develop environmental management |
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| Compliance with Laws and Regulations |
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Supplier Promote and Support on Capacity Development
GGC is committed to continuously strengthening the capabilities of its Suppliers and Business Partners so that their operations are aligned with the Business Code of Conduct, the Supplier Code of Conduct, and GGC’s sustainable development goals throughout the supply chain.
Supplier Conference
GGC, together with PTT Global Chemical Public Company Limited or GC, organizes an annual Supplier Conference to provide a platform for Suppliers and Business Partners to consult, exchange views, and jointly identify solutions to emerging issues. The conference also aims to promote the implementation of ESG practices and support sustainable supply chain management by fostering strong collaboration and mutual understanding between GGC and its suppliers.
Outcomes and Benefits
- Strengthened relationships and collaboration with suppliers and business partners.
- Enhanced adoption of ESG practices throughout the supply chain.
- Supported more sustainable and efficient supply chain management.
- A total of 600 vendors participated in this meeting.
Sustainable Palm Oil Production and Procurement Project for Climate Mitigation and Adaptation (SPOPP CLIMA)
The SPOPP CLIMA project builds upon the success of smallholder farmer group certification under the Roundtable on Sustainable Palm Oil standard through the Sustainable Palm Oil Production and Procurement Project. GGC collaborates with the German International Cooperation Organization in Thailand and the Department of Agriculture, with a focus on enhancing knowledge among RSPO-certified smallholder farmers under the SPOPP project.
The project enables farmers to utilize existing data to further develop Carbon Footprint calculations for Fresh Fruit Bunch palm products and to adopt low-carbon plantation management practices. Reducing the Carbon Footprint not only helps mitigate environmental and climate impacts but also enhances the sustainability of the palm oil industry and strengthens the global image of Thai palm oil products.
Progress of the SPOPP CLIMA Project (2025)
- Development of a carbon footprint calculation tool for oil palm cultivation in alignment with TGO requirements.
- Preliminary carbon emissions assessment of smallholder farmers in the oil palm system, including data analysis; establishment of a project database system and verification of data accuracy across all six farmer groups.
- Pilot testing and training on carbon reduction approaches, including identification and selection of suitable practices for farmers.
- Development of a training curriculum on low-carbon oil palm farm management for a green economy (Low-Carbon Oil Palm Management for Green Economy) as a guideline for project farmers.
- Training of trainers (ToT) on the low-carbon oil palm management curriculum for mills and farmer group representatives to expand knowledge on low-carbon palm cultivation among project participants.
- Selection of demonstration plots to pilot low-carbon oil palm cultivation practices.
Outcomes and Benefits
- The first handbook and certified training curriculum in Thailand on Low-Carbon Oil Palm Management for a Green Economy.
- 50 trained instructors equipped with knowledge on low-carbon oil palm management, who will transfer knowledge to 1,000 project participants.
- 12 demonstration plots covering a total area of 169.62 rai to pilot low-carbon oil palm cultivation practices.
Feedstock Management
GGC has established a feedstock selection process to support effective procurement decision-making and enters into long-term contracts with reliable suppliers, particularly for key agricultural feedstocks. GGC also promotes the procurement and use of RSPO-certified feedstock. In 2025, products using RSPO-certified feedstock increased, particularly purified glycerin, with sales volume rising by 39 percent compared with 2025
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Methyl Ester (tons) | 0 | 0 | 0 | 0 |
| Fatty Alcohol (tons) | 4,280 | 5,316 | 4,004 | 5,572 |
| Purified Glycerin (tons) | 2,411 | 765 | 1,423 | 1,113 |
Crude Palm Oil (CPO) Transportation Optimization Project:
GGC has reduced feedstock transportation costs by shifting from direct road transportation to marine transportation. Under this approach, Crude Palm Oil is shipped at full vessel capacity from Surat Thani Province to GGC’s warehouse in Bang Pakong District, Chachoengsao Province, and then transported by truck to the production site. This method improves transportation efficiency and significantly reduces logistics costs.
Outcomes and Benefits
- From January to November 2025, GGC transported 68,767 tons of CPO type A by vessel, representing 75% of spot purchases and 70% of contract purchases.
- Reduced CPO transportation costs effectively.
- Improved logistics management efficiency and reduced environmental impacts by lowering road transportation use.
Logistics and Warehouse Management
GGC places strong emphasis on efficient logistics and warehouse management. By analyzing and planning transportation costs, GGC is able to reduce operating costs while simultaneously lowering greenhouse gas emissions. In 2025, GGC implemented projects to improve logistics from Suppliers and Business Partners to GGC plants and to optimize raw material storage management, as detailed below.
Reduce Backhaul Transportation of Methanol-B100
GGC enhanced inter-plant transportation management to address backhaul cost inefficiencies arising from transporting methanol from the BTF warehouse in Map Ta Phut to the GGC2 plant and transporting B100 from the GGC2 plant to the GGC1 plant, which previously resulted in empty return trips. GGC studied the use of a single truck to transport both methanol and B100, reducing empty trips, improving transportation efficiency, and lowering logistics costs.
Outcomes and Benefits
- Reduced transportation costs.
- Reduced greenhouse gas emissions, supporting environmental sustainability goals.
Reduce Rental External Warehouse Cost
In 2025, GGC reduced costs associated with external warehouse activities by lowering the volume of rented warehouse space, decreasing the number of truck movements to external warehouses, and reducing handling activities at third-party storage locations. These measures improved inventory management efficiency and reduced overall operating costs.
Outcomes and Benefits
- Reduced operating expenses.
- Improved inventory and logistics management efficiency.
- Reduced resource use and costs associated with storage and transportation activities.
Customer Engagement
GGC strengthens and maintains strong relationships with Customers to build confidence and respond to Customer Satisfaction. GGC has established a customer complaint channel through the customer relationship management system, which gathers feedback and complaints from Customers and uses the information to define appropriate and effective response plans. In addition, GGC analyses Customer needs to formulate business development directions and future marketing strategies.
Customer Satisfaction Survey
GGC conducts an annual Customer Satisfaction Survey to measure operational success and reflect GGC’s effectiveness in responding to Customer needs. The assessment applies the Customer eQTM Index, a globally recognized tool and criteria used to evaluate organizational management systems, with the objective of improving processes, outcomes, and organizational perspectives.
Customer Satisfaction Measurement Factors
Product- Product quality
- Consistency of product quality
- Ability to meet customer requirements
Delivery- On-time delivery
- Delivery speed
- Safe delivery
- Quantity and quality of delivered products that meet customer requirements
Communication and Public Relations- Organizing activities such as conferences and knowledge-sharing seminars
- Customer appreciation events
- Appropriate promotional programs
Operations- Product quality
- Consistency of product quality
- Ability to meet customer requirements
Sales- Convenience of contact and ability to resolve issues effectively and promptly
- Fast and accurate coordination
As mentioned above, GGC conducts Customer Satisfaction Surveys every two years. In 2025, the percentage of satisfied Customers and the Customer Satisfaction Score were 99% และ 96% respectively, surpassing the established.
| 2022 | 2023 | 2024 | 2025 | Target 2025 | |
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| Percentage of satisfied Customers (%) | 96 | 96 | 99 | 99 | 97 |
| Customer Satisfaction (%) | 95 | 95 | 96 | 96 | 95 |
For additional information on Customer Satisfaction levels, please see Performance Data 2025
In 2025, GGC categorized performance evaluation results into Success Factors and Areas for Improvement as follows:
 Success Factors
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Communication and Building Strong Customer Relationships
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 Areas for Improvement
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Product Quality and Availability, On-time Delivery, and Delivery Status Communication
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