Climate Strategy
Challenges and Commitments
The intensifying impacts of climate change and greenhouse gas emissions, together with natural disasters such as drought, flooding, and monsoons, can affect GGC’s business operations and potentially lead to operational disruptions. Accordingly, GGC places importance on Climate Change Management in alignment with international goals, reaffirming its commitment to the United Nations Framework Convention on Climate Change at COP26 and COP27. GGC is committed to mitigating impacts, managing greenhouse gas emissions, enhancing energy efficiency throughout production processes, and reducing greenhouse gas emissions arising from GGC’s production activities.
Key Stakeholders
Employee
Community
Shareholder, Investor and Analyst
Government
Supplier and Business Partner
Customer
For additional information on stakeholder engagement: Stakeholder Engagement
Goals
Key Performance in 2025
Management Approach
Climate Change Management Structure
The core strategy for Climate Change Management is the establishment of a Risk Management structure comprising the Chairman, the Board of Directors, and the Chief Executive Officer. Each level has defined responsibilities as follows:
| Supervision Level | Duties and Responsibilities |
|---|---|
| Supervision Level: Chairman | Duties and Responsibilities:
Oversees strategy development, operational planning, and monitoring of risk and opportunity management related to climate change. This includes determining appropriate mitigation measures and operational frameworks for GGC, as well as preparing GGC to support the transition toward a Low Carbon Economy, which may lead to future business opportunities. |
| Supervision Level: Board | Duties and Responsibilities:
The Risk Management Committee and the Corporate Governance and Sustainability Committee monitor relevant regulations on climate change to ensure that GGC can respond effectively, including energy efficiency, adoption of alternative energy, and setting greenhouse gas emission reduction targets. |
| Supervision Level: Chief Executive Officer (CEO) | Duties and Responsibilities:
Leads the allocation of responsibilities and oversees operations to ensure alignment with GGC’s strategies, policies, and allocated budgets, while defining action plans and controlling implementation to achieve GGC’s short-term and long-term goals. |
GGC assigns the Risk Management Department to oversee risks and opportunities related to climate change, under the direction of the Executive Committee, which defines the organization’s direction and strategy. GGC discloses governance, strategy, greenhouse gas reduction targets, and risk analysis based on the Task Force on Climate-Related Financial Disclosures (TCFD) framework, assessing Physical Risks using climate scenarios (RCP 1.9, RCP 2.6, RCP 4.5, RCP 8.5), and evaluating Transition Risks encompassing regulatory changes, corporate reputation, and evolving customer expectations.
Approaches to Dealing with Climate Change GRI 201-2 (2016)
GGC has established a Net Zero greenhouse gas emissions target and developed its Climate Change strategy through a Decarbonization Pathway. The approach focuses on enhancing production efficiency (Efficiency-Driven), developing Eco-Friendly Products (Portfolio-Driven), and implementing carbon compensation measures (Compensation-Driven).
 Efficiency-Driven
|
Enhancing operational efficiency and reducing waste emissions through two key management approaches: 1.1 Low Carbon / Renewable Heat and Power
1.2 Process Efficiency Measures
|
 Portfolio Driven
|
GGC continues strengthening business growth by investing in Eco-Friendly Product portfolios, including:
|
 Compensation Driven
|
Applying nature-based carbon sequestration methods and exploring technological solutions to support GGC in achieving its targets efficiently. 3.1 Carbon Offsets
3.2 Nature-based Solution
3.3 Technology-based Solution
|
Efficiency Driven
To achieve greenhouse gas reduction targets and Net Zero in 2050 objectives, GGC implemented the following Efficiency Driven strategies:
Biogas-Based Renewable Energy Enhancement Project
GGC increased renewable energy consumption by utilizing Biogas as an alternative fuel in production processes to reduce the use of Fuel Oil—its primary fuel source for generating steam and heat in Hot Oil Boilers and Steam Boilers. The Biogas is produced from operational waste, including Glycerine Residue Sludge, Glycerine Residue (Salt), Scum Oil from wastewater treatment, Wastewater Sludge, and Sweet Water from the production of Methyl Ester and Glycerin.
This project enables GGC to reduce fuel purchase expenses and greenhouse gas emissions.
Outcomes and Benefits
- In 2025, Biogas utilization reduced Scope 1 greenhouse gas emissions by more than 23,677 tons CO2e.
- In 2025, converting production waste into Biogas instead of incineration reduced Scope 3 Category 5 emissions by more than 9,000 tons CO2e.
- Reduced fuel purchase costs by 11 millions Baht
Minimized Steam Vacuum of RGL2
GGC implemented an energy-reduction project within its refined glycerin production process by optimizing the volume of steam used in the vacuum system without affecting operations. This initiative helps reduce operating costs and greenhouse gas emissions.
Outcomes and Benefits
- Reduced operating expenses by 2 million Baht/year
- Reduced energy consumption in refined glycerin production by 839,277 kcal/tonRGL/year
- Reduced greenhouse gas emissions from steam usage in refined glycerin production by 0.3 tons CO2e.
Additionally, GGC implemented several related greenhouse gas reduction initiatives, including the installation of energy control devices for air-conditioning systems, replacement of Steam Traps (Replacement of new type of steam traps, FA Plant Phase I), reducing emissions by more than 24 tons CO2e per year, and the optimization of the Air Blower system in the Wastewater Treatment System, reducing emissions by more than 98 tons CO2e per year
Portfolio Driven
GGC continues to advance Responsible Product Stewardship by focusing on the development of Low Carbon Products and innovative solutions that create value for GGC and its Stakeholders.
For additional information on Low Carbon Products: Product Stewardship
Compensation Driven
GGC invests in carbon sequestration and compensation initiatives for emissions that cannot be reduced through production processes. In 2025, GGC implemented greenhouse gas compensation activities and supported upstream oil palm farmers by strengthening their knowledge and understanding of carbon offsetting through oil palm cultivation. Details of the projects are provided below.
Plant & Protect (Care the wild “Plant & Protect)
GGC participated in the reforestation initiative under the Care the Wild “Plant & Protect” project, a collaboration between the public and private sectors to plant trees and promote long-term forest care. The project also builds awareness of reforestation, environmental stewardship, and community development.
GGC supported reforestation across 20 rai to enhance ecosystem health and promote ecotourism in the Sakhon Nikhom Subdistrict Community Forest, Thong Pha Phum District, Kanchanaburi Province. In 2025, the third monitoring assessment was conducted jointly by the Royal Forest Department and the community. The trees showed healthy growth with an average height of 90–101 centimeters, particularly teak, takhian, and Indian gooseberry. However, some trees had died during the past year. The community therefore plans to replant during the rainy season of 2025, using suitable seedlings and selecting species that are well adapted to the local climate and site conditions
Outcomes and Benefits
- Reduced greenhouse gas emissions by 36 tons CO2e per year
Green Heart Project
GGC participated in a tree-planting project at the Ban Noen Samre Community Forest, Ban Chang Subdistrict, Ban Chang District, Rayong Province, covering over 8 rai. This marks the fifth consecutive year since the project began in 2020 and continues to the present day. The initiative strengthens collaboration with local communities to expand green areas, conserve forest resources, and enhance biodiversity. The project aligns with GGC’s commitment to conducting business that coexists sustainably with communities and the environment.
Outcomes and Benefits
- Conserved forest resources and biodiversity
SPOPP CLIMA
GGC collaborated with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) through the Sustainable and Climate-Friendly Palm Oil Production and Procurement (SPOPP) initiative. Following the success of the program, GGC expanded its efforts to work directly with farmers by providing knowledge on greenhouse gas management in oil palm cultivation. This helps reduce carbon emissions at the upstream stage of the Supply Chain Management Process.
GGC therefore initiated the SPOPP CLIMA project, focusing on capacity-building for smallholder farmers by enabling them to use existing data to calculate the Carbon Footprint for Fresh Fruit Bunches (FFB), adopt Low Carbon plantation practices, and use the resulting emission reductions to generate Carbon Credits—creating additional income for farmers.
In 2025, the project carried out the following:
- Developed Carbon Baseline Assessment as a foundational reference for farmers to generate Carbon Credits.
- Developed a Low Carbon Oil Palm Plantation Manual for a Green Economy, which provides guidance on the project’s background, the importance of carbon management, Carbon Footprint calculation methods, Low Carbon plantation practices, reporting, and product certification. Training sessions were also conducted for interested farmers.
GGC plans to expand the SPOPP CLIMA project in phases: Phase 1: 5,000 rai, Phase 2: 10,000 – 15,000 rai and Phase 3: 30,000+ rai with the first batch of Carbon Credits is expected in 2029.
In addition, the project developed the CLIMAXPro Carbon Footprint Calculation Tool to simplify assessments for farmers and improve understanding. The tool is designed to align with RSPO standards and Carbon Footprint assessment frameworks.
Outcomes and Benefits
- Established Thailand’s first handbook and training curriculum on Low-Carbon Oil Palm Management for Green Economy, officially certified as a training program.
- 50 trainers with expertise in Low-Carbon oil palm plantation management were developed to transfer knowledge to 1,000 project participants.
- 12 demonstration plots, covering a total area of 169.62 rai, established as pilot sites to implement Low-Carbon oil palm cultivation practices
Internal Carbon Pricing
GGC has established an Internal Carbon Price (ICP) as a mechanism to reflect the cost of greenhouse gas emissions, support decision-making in operations and investments, and drive the implementation of GGC’s Decarbonization Roadmap.
The Internal Carbon Price considers two key factors: internal and external inputs. Internal factors include GGC’s carbon reduction plans and greenhouse gas inventory data. External factors include regulatory trends, policies, and carbon market information to assess potential financial impacts. In addition, the framework incorporates sustainability reporting and rating standards such as the Task Force on Climate-Related Financial Disclosures (TCFD), which emphasizes climate-related risk disclosure. This integration enhances transparency and alignment with best practices.
ICP also helps GGC prepare for future regulations, such as Carbon Tax and Emissions Trading Systems currently under consideration in Thailand. Internal Carbon Pricing therefore serves as a proactive tool enabling GGC to anticipate and adapt to new climate-related regulatory requirements.
| Application of Internal Carbon Price (ICP) and Business Benefits | |
|---|---|
| Current Business Operations |
|
| New Investments |
|
Based on the assessment, GGC applies ICP through both Shadow Pricing and Carbon Fees to support investment evaluation and decision-making. GGC set the ICP at USD 70.5 per ton of CO₂, equivalent to approximately 2,502 Thai Baht per ton of CO₂, covering Scope 1, Scope 2, and Scope 3 emissions. The ICP benchmark references domestic and international carbon market standards. GGC also reviews and updates the Internal Carbon Price annually.
Net Zero Transition Plan
GGC recognizes the government's climate change policies and strategic direction, which are aligned with the global Net Zero GHG Emissions target and the objectives of the Paris Agreement. Accordingly, GGC has established a low-carbon transition target by achieving Net Zero greenhouse gas emissions for Scope 1 and Scope 2 by 2050, while also targeting a 50% reduction in Scope 3 greenhouse gas emissions by 2050, compared with the 2021 base year.
To support the achievement of these targets, GGC has developed and continuously implemented a greenhouse gas emissions reduction roadmap covering Scope 1, Scope 2, and Scope 3 emissions. The roadmap is implemented in collaboration with suppliers, customers, business partners, industry stakeholders, and government agencies. In addition, GGC has initiated discussions with PTT Global Chemical Public Company Limited (GC) regarding additional investment planning to further support future decarbonization efforts.
| Greenhouse Gas Emissions Reduction Target | Implementation Plan |
|---|---|
| Reduce Scope 1 Greenhouse Gas Emissions | GGC has transitioned the fuel used for steam generation in the production process from fossil fuels to biogas, reducing reliance on fossil fuels and lowering greenhouse gas emissions from operations. |
| Reduce Scope 2 Greenhouse Gas Emissions |
GGC continuously implements Energy Efficiency initiatives to reduce electricity consumption across production processes while supporting electricity generated from renewable energy sources. Key initiatives include:
|
| Reduce Scope 3 Greenhouse Gas Emission |
GGC converts production waste into biogas instead of disposing of it through incineration, reducing Scope 3, Category 5 greenhouse gas emissions by more than 9,000 tonnes CO2e. In addition, GGC works to reduce greenhouse gas emissions across the value chain by engaging suppliers with high greenhouse gas emissions to promote energy efficiency, greenhouse gas data collection, and continuous knowledge sharing. GGC also collaborates with suppliers, customers, and business partners to promote compliance with the Roundtable on Sustainable Palm Oil (RSPO) standard through the SPOPP CLIMA program. |
GGC promotes stakeholder engagement throughout the value chain to facilitate the exchange of perspectives, support the development of action plans, and discuss implementation approaches that contribute to achieving the objectives of the **Transition Plan**.
Information and recommendations obtained through stakeholder engagement are incorporated into the review and enhancement of GGC's strategies, implementation plans, and related measures to ensure alignment with stakeholder expectations, as well as relevant risks and opportunities. This approach also supports an effective and sustainable transition toward a low-carbon business.
| Stakeholder | Stakeholder Engagement |
|---|---|
| Stakeholders in the Value Chain |
As a subsidiary of PTT Global Chemical Public Company Limited (GC) and the PTT Group, GGC actively participates in knowledge sharing and monitors the progress of studies on Carbon Capture, Utilization and Storage (CCUS) technology. CCUS is recognized as one of the key technologies for reducing greenhouse gas emissions from hard-to-abate sectors by capturing and preventing carbon dioxide emissions from being released into the atmosphere, thereby supporting the long-term achievement of Net Zero. In 2025, the PTT Group signed a memorandum of understanding with PTT Group companies to conduct a feasibility study on the application of CCUS technology. The study covers technical feasibility, costs, economic viability, and the potential application of the technology across industrial sectors. Participation in this initiative enables GGC to gain technical knowledge, technology development insights, and practical experience in greenhouse gas emissions reduction, which support strategic planning for the transition to a low-carbon business and future decarbonization initiatives. |
| Trade Associations |
The Company is a member of the Renewable Energy Industry Club of the Federation of Thai Industries (RE-FTI), enabling it to actively monitor developments in the renewable energy sector and support Thailand's energy transition. In 2025, as a member of RE-FTI, the Company participated in the ASAFA Innovation and Policy Summit (IPS) Thailand 2025 and engaged in discussions with government agencies, private sector organizations, and industry experts to support the development and adoption of Sustainable Aviation Fuel (SAF), a key solution for reducing greenhouse gas emissions from the aviation sector. Through these engagements, the Company also monitored policy developments, technological advancements, and investment approaches that facilitate the wider deployment of SAF and other clean energy solutions, while fostering cross-sector collaboration to accelerate the transition toward an environmentally sustainable aviation industry and energy system in line with international sustainability trends and standards. The Company's participation provided valuable insights into emerging technologies, government policies, and industry best practices, particularly in relation to the development and deployment of Sustainable Aviation Fuel (SAF), which has been identified as one of the Company's strategic initiatives to support the transition to a low-carbon economy. The knowledge and information gained are being utilized to assess opportunities for product development, investment, and the application of SAF-related technologies, as well as other renewable energy solutions. These efforts support the reduction of greenhouse gas emissions, enhance energy efficiency, and advance the implementation of the Company's Transition Plan, while strengthening collaboration with industry partners to accelerate the transition toward a sustainable low-carbon economy and business. |
| Government |
To strengthen preparedness for climate-related policies and regulatory developments, GGC participates in meetings and consultations with government agencies, climate organizations, and civil society organizations, including the Thailand Carbon Neutral Network (TCNN) under the Thailand Greenhouse Gas Management Organization (Public Organization). These engagements facilitate information exchange, regulatory monitoring, and preparedness for future climate mechanisms, including the Emissions Trading System (ETS), carbon pricing, and climate-related regulations. In addition, GGC continues to collaborate with the TCNN network and participates in the Climate Action Leading Organization (CALO) Phase 2 program to support the establishment of corporate Net Zero GHG Emissions targets and further strengthen climate change management practices in alignment with Thailand's national climate objectives. |
GGC has assessed the social impacts associated with the implementation of its Transition Plan toward a low-carbon society, taking into consideration customer needs, industry trends, and government policy directions that increasingly support Sustainable Products and clean energy, including Sustainable Aviation Fuel (SAF) produced from Refined Used Cooking Oil (RUCO).
GGC is committed to advancing Sustainable Products and clean energy solutions, including the production of Sustainable Aviation Fuel (SAF) and High Value Products (HVP) derived from Refined Used Cooking Oil (RUCO). The implementation of these initiatives requires modifications to production processes and plant equipment to accommodate used cooking oil as a production feedstock. Accordingly, GGC has established plans to enhance employees' knowledge and capabilities to ensure safe and efficient operations under the new production processes.
GGC also recognizes significant opportunities to support Thailand's energy transition through its capability to supply Low Carbon Products and sustainable feedstocks that can reliably meet growing market demand. This capability represents one of GGC's key strengths in supporting the growth of the low-carbon economy through sustainable collaboration with stakeholders across the value chain.
Greenhouse Gas Emission performance data
| Unit | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| GHG emission Scope 1 | Tons CO2e | 29,817 | 28,449 | 25,544 | 9,773 |
| GHG emission Scope 2 | Tons CO2e | 67,954 | 73,708 | 67,994 | 62,321 |
| GHG emission Scope 3 | Tons CO2e | 536,161 | 576,262 | 554,774 | 496,223 |
For additional information on greenhouse gas emissions: Performance Data 2025