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IRPC is committed to ensuring that the company’s sustained expansion is always accompanied by a robust risk management process that mitigates and minimizes the impact of environmental and potential risks that could damage the Company’s employees, assets, business operations, and reputation.

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Management Approach

The company places great emphasis on managing its risks to ensure clear, comprehensive, efficient, and effective organizational management. This approach integrates with other management systems across the organization, with a focus on achieving goals that align with the company’s vision and strategy. IRPC has established a Risk Management Policy that encompasses the organization’s overall risk management framework, systematically connecting with other management systems throughout the organization to ensure consistency and effectiveness in addressing risks.

The Corporate Risk Management Division is under the Corporate Planning and Sustainability Department, which is separated from all business functions and controlled by the Risk Management and Internal Control Steering Committee (RMCC) at the executive management level, and by the Risk Management Committee (RMC) at the Board level. The responsibility of Corporate Risk Management Division is to analyze, monitor, and report the progress and result of enterprise risk management (ERM).

RMCC and RMC, chaired by the President and the Chief Executive Officer and an Independent Director respectively, oversee corporate risk management to ensure its effectiveness. Corporate Risk Management reports directly to the RMCC and RMC at least quarterly at the board of director’s level. Having Corporate Risk Management within CSSP offers the benefit of effective assessment and management of risks, particularly in aligning with new strategic initiatives aimed at achieving the company’s objectives. The responsibility and framework of risk management structure are shown below:

IRPC risk management system is comprehensive and effectively implemented throughout the organization. IRPC has established and defined clearly a risk management structure with roles and responsibilities to ensure that IRPC has an internal risk control process that complies with existing regulations and effectively covers risk governance, emerging risks, and risk culture (including incentives for risk management and risk training). The roles of responsibilities of the entire parties are shown below:

Board of Directors is responsible for setting strategic directions in risk management and ensure risk management is implemented effectively by reviewing the risk management and internal control system of the company and subsidiaries on a quarterly basis.
Risk Management Committee (RMC) is responsible for defining the risk management policy, risk management plan, and risk management procedure for the entire company in compliance with corporate and strategic plans that are set by the Board of directors. In addition, the RMC is responsible for reporting on the operational status of the risk management system to the Board of directors on a regular basis. In which, the chairman of RMC is the highest-ranking person dedicated risk management person with direct operational level.
Risk Management and Internal Control Steering Committee (RMCC) is responsible for monitoring and ensuring greater efficiency in its overall risk management and internal control system.
Risk Management Team is responsible for coordinating and implementing risk management processes across the organization which include providing advice and guidance on various types of risk (including emerging risks) and supporting effective risk culture by empowering employees through incentives and training.

IRPC’s Risk Audit and Monitoring

IRPC aims to ensure that the company’s risk management is executed in line with a risk management business plan to prevent or mitigate potential impacts on businesses to manageable levels. IRPC has assigned roles and responsibilities to the Audit Committee and Office of Corporate Internal Audit to monitor and review risk management as part of the company’s internal audit system. The roles of responsibilities of the entire parties are shown below:

Audit Committee is responsible for overseeing and monitoring risk management by means of independent reviews through receiving reports on or finding on risk management from the Office of Corporate Internal Audit, to ensure that risk management is implemented according to the policy and effectively throughout the organization.
Office of Corporate Internal Audit is responsible for conducting independent audits and monitoring the effectiveness of the internal control system including risk management on an operational level. IRPC’s senior vice president officiates as IRPC’s office of Corporate Internal Audit, is the highest-ranking person who is responsible for monitoring and auditing risk management on an operational level.

In IRPC, risk management is divided into two interconnected levels: corporate and functional. The governance structure follows a top-down approach, starting from the corporate level and cascading to the functional level, as outlined below.

Scope of Risk Management at Each Level

Scope

Definition

Organizational Level

Risks to the organization arising from its mission itself, from the lack of alignment among missions, or from organizational operations that are inconsistent with the stated mission — including where the defined mission may no longer be suitable given changing trends or key factors.

Business Unit Level

Risks to the organization or to business units arising from misalignment between the organization’s mission and the business unit’s mission, or from the lack of alignment of policies and/or strategies among business units — including the appropriateness and changes of the various factors affecting both policies and strategies.

Project Level

Risks to the organization or to business units arising from selecting projects or strategies that are unsuitable given changing trends or key factors.

Operational Level

Risks to the organization, business units, or projects/strategies arising from plans or operations that are unsuitable given changing trends or key factors.

The risk management process is implemented on a yearly cycle and consists of 7 steps: (1) Risk Communication and Consultation (2) Mission (3) Context Setting (4) Risk Assessment (5) Risk Treatment and Mitigation (6) Monitoring and Review (7) Report

IRPC determines the party responsible for conducting risk assessment and mitigation plans in an appropriate manner as well as monitor and review the results at all levels of each function, subsidiary, business unit and corporate levels.

Risks Management ProcessDownload

(1) Communication and Consultation

The organization provides risk management communication through the structure shown in Figure 2. The objectives of communication and consultation are as follows:

Build understanding and awareness of the interests of relevant stakeholders
Ensure that the mission, objectives, and strategies are appropriate to trends and key environmental factors
Support the establishment of an appropriate context
Ensure adequate risk identification
Ensure that different perspectives are considered in setting risk criteria and evaluating risk
Achieve agreement on and support risk management measures
Promote appropriate change management in the risk management process

Communication and consultation are conducted as a two-way process through plan reviews, reporting, and reviews of risk management results, including activities and training that promote risk management at both operational and management levels.

(2) Defining the Mission

Risk management must be linked with other management systems. Therefore, it is necessary to define the organization’s mission to help those responsible for risk management assess the alignment between the organization’s objectives, scope, strategies, and business goals.

This mission will then be used to guide the formulation of the organization’s strategies going forward, as shown in the example.

Mission to Shareholders

Deliver fair and sustainable returns to shareholders through reliable management of excellent business performance.

Mission to Society

Incorporate social responsibility and environmental stewardship into business operations to drive sustainable development.

Mission to Business Partners

Be the best choice for partners by offering innovative products and services.

Mission to Employees

Build a learning organization with a happy working environment while developing personnel to be dedicated and committed to the organization for professional excellence.

(3) Context Setting

Defining the context is the assessment of factors related to objectives or missions, which will be used to assess the impact and likelihood of various events. This step identifies factors that may affect the company and serves as the foundation for the subsequent risk assessment process.

Defining the context includes:

External Context: environmental factors that affect the company, such as economic conditions, political conflicts, impacts on communities and the environment, and technological changes.
- Factors that support the company’s strategies are considered Opportunities.
- Factors that obstruct the company’s strategies are considered Threats.
Internal Context: those that arise within the company, such as the company’s financial status and strategies.
- Factors that support strategies are considered Strengths.
- Factors that obstruct strategies are considered Weaknesses.

Identification of internal and external factors can be done using several tools, such as PESTEL Analysis, McKinsey 7S, SWOT Analysis, TOWS Matrix, and Five Forces Analysis. The organization has also classified internal and external factors to align with ESG principles.

Defining internal and external factors is not limited only to factors that have already occurred or those in the near term, but also includes future factors, as there may be emerging risks — for example, new national laws or future supply and demand of crude oil.

The organization should be aware of these factors to prepare in advance for their potential impact.

(4) Risk Assessment

Risk assessment consists of three main steps: (4.1) Risk Identification (4.2) Risk Analysis (4.3) Risk Evaluation. Risk assessment helps identify risks that have the potential to impact on the company’s strategies and business objectives. It also links to the process of determining risk treatment measures that can reduce risks to an acceptable level. Risk assessments are conducted at least twice a year, or more frequently as needed, to ensure appropriate and timely risk management approaches are in place.

Risk event identification

Risk event identification is carried out by considering events that may affect the critical success factors, which are the factors essential to the organization’s ability to execute its strategies or achieve its business objectives.

In the risk event identification step, divergent thinking should be applied. In addition, the types and magnitude of potential impacts should be identified as part of the risk event identification process.

This approach helps ensure that all possible events are comprehensively considered and provides clarity in defining and communicating the events that will be used in the subsequent analysis stage.

Risk Analysis

Risk Analysis involves assessing the impacts of risk events, the likelihood of their occurrence, and the root causes of risks.

In the risk analysis step, convergent thinking should be applied to focus on evaluating and narrowing down the possibilities. The analysis can consider both the worst-case scenario and the probable case scenario.

To enable effective monitoring and reviewing of risk treatment measures, it is also necessary to define risk indicators (KRIs) that reflect the root causes of risks.

Risk Evaluation

Risk Evaluation is based on combining information from the risk analysis with the risk criteria, considering both the impact and the likelihood according to the risk assessment criteria, to determine the risk level. This involves:

Assessing the level of impact from each risk event
Assessing the level of likelihood of each risk event

And then plot the risk level on a risk matrix (risk map) to visually represent and communicate the risk level.

IRPC’s risk assessment process is based on data from risk analysis and defined risk criteria, evaluating both impact and opportunities of potential events that may affect operations. Impact is assessed across five key areas: (1) Finance and Investment, (2) Business Processes, (3) Health, Safety, and Environment, (4) Corporate Image, and (5) Stakeholders. Likelihood is also evaluated to determine overall risk levels.

Risk assessment criteria 2024Download

(5) Risk Treatment and Mitigation

Selecting types of risk treatment measures requires considering the cost-effectiveness of each measure:

If a measure is cost-effective to implement internally, it may be chosen as a risk retention (acceptance) measure.
If a measure is not cost-effective to implement internally, a risk transfer measure may be selected instead.
If a measure is still not cost-effective even after considering risk transfer, then a risk avoidance (elimination) measure should be considered — which involves modifying or discontinuing the strategy altogether to prevent the risk from occurring in the first place.

Approach

Meaning

Conditions for Consideration

Accept Risk (TAKE)

No action is taken to reduce the likelihood or impact of risk, but risk management measures must still be followed.

The risk is at a level that the organization can accept, and existing risk management measures are maintained.

Treat Risk (TREAT)

Take actions to reduce the likelihood and/or impact of the risk, which may involve improving existing risk controls and/or implementing additional risk controls.

The risk management measures are cost-effective enough to be implemented internally.

Transfer Risk (TRANSFER)

Take actions to transfer the likelihood and impact of the risk to others, such as purchasing insurance, entering hedging contracts, forward contracts for goods or currency, or outsourcing to third parties.

The risk management measures are cost-effective if the risk is transferred to other parties.

Terminate Risk (TERMINATE)

Cease any activity to eliminate the likelihood and/or impact of the risk, such as discontinuing strategies, projects, or plans.

When the risk level is unacceptable to the organization and the risk management measures are not cost-effective.

Assessing the Adequacy of Risk Treatment Measures: After selecting the type of risk treatment measures, the next step is to assess the target level of risk reduction.
The goal of risk management is to reduce the risk to an acceptable level. The remaining (residual) risk can be evaluated by considering the chosen strategies and the estimated effectiveness of the risk treatment measures.

Preparing and Implementing the Risk Treatment Plan: Implementing risk treatment measures requires preparing plans and resources, such as operational plans, contingency plans, budget plans, and assigning risk owners. Implementation should be aligned with the strategic plan, budget approvals, and performance reporting to ensure effective execution.

(6) Monitoring and Review

Monitoring and reviewing risk management aims to build confidence in the effectiveness and efficiency of risk treatment measures as conditions change. In evaluating and reviewing risk treatment measures, organizations can use:

Key Performance Indicators (KPIs),
Key Risk Indicators (KRIs), and possibly
Key Success Indicators (KSIs) that are suitable for the scope and context of the risks.

By assessing these indicators together, evaluators can analyze the effectiveness, efficiency, and identify gaps (gap closing) that need improvement to make the risk treatment measures more effective and efficient.

If risk treatment measures can prevent or reduce the impact of risk events, all three indicators should show results that meet the target level.
If the measures cannot prevent or reduce the impact, all three indicators should show results that are at the threshold level.

However, good indicators should be designed to start measuring from a trigger point (early warning level) to detect issues before they escalate.

IRPC regularly monitors risks related to our business operations, including strategic, operational, financial, regulatory, and environmental, social, and governance (ESG) risks, as well as emerging risks that may impact future operations.

(7) Report

Recording and reporting are essential for supporting communication and consultation throughout the risk management process. For enterprise-level risk management, the organization requires risk information to be recorded and reported in the risk register according to the risk management reporting calendar.

The company regularly reviews its risk management practices to ensure they remain effective under changing conditions. When measures are effective, indicators reflect target-level outcomes; if not, they show results near the threshold. These results are reported quarterly to the Risk Management and Internal Control Committee (RMCC) and the Risk Management Committee (RMC).

Risk Management Tools

Risk Correlation

This analysis examines the correlation between key variables that impact IRPC’s business. For example, price volatility of raw materials and products represents business risks, while foreign exchange and interest rates are considered financial risks. Historical data from the past three years have been analyzed to develop a statistical model for forecasting potential future risks.

Risk Appetite

The Risk Appetite Process at IRPC involves defining and managing the level of risk the organization is willing to take to achieve its strategic objectives. The Risk Appetite Statement, approved by the Board of Directors, sets clear tolerance limits across various risk categories, such as operational, financial, and strategic risks. These limits are implemented through metrics that guide decision-making at all levels of the organization. The risk appetite is continuously monitored and reported across functional areas, with periodic reviews to ensure alignment with changing business conditions, compliance requirements, and strategic goals. By establishing both upper and lower tolerance levels, IRPC ensures that risks are managed effectively within acceptable boundaries, fostering a strong risk culture and supporting sustainable growth.

Risk appetite expression involves defining the level of risk that the organization considers acceptable or desirable to achieve its goals and communicating this to relevant stakeholders across four key categories: strategic, operational, financial, and compliance risks.

Risk Map

The Risk Map is utilized to prioritize risk factors. Risk severity levels are determined by both likelihood and impact which are aligned with the IRPC Risk Boundary, categorized into four levels: low risk (green code), medium risk (yellow code), high risk (orange code), and extreme risk (red code). Risk factors identified as high to extreme risks will be defined as corporate level risk and appropriate actions must be implemented in accordance with the enterprise risk management process.

Sensitivity Analysis and Stress Testing

It is essential for the IRPC to establish robust internal control processes to ensure regulatory compliance and strengthen risk oversight. As part of a comprehensive risk and crisis management framework, sensitivity analysis and stress testing serve as critical tools for assessing the potential impact of adverse events. Sensitivity analysis helps evaluate how changes in key assumptions affect risk exposures, while stress testing examines the organization’s resilience under extreme but plausible scenarios.

Document download

Corporate Risk and Sensitivity Analysis 2024-2025Download

IRPC is committed to embedding risk management as an integral part of its organizational culture. This means building a shared understanding across the Board of Directors, management, and employees about the importance of applying a standardized risk management framework to support sustainable growth. The Risk Management and Internal Control Committee (RMCC), together with the Risk Management Committee (RMC), plays a key role in overseeing the implementation of this framework. These committees ensure that risk management is incorporated at every level—strategic, operational, and day-to-day—by monitoring progress, reviewing practices, and driving continuous improvement. To promote organization-wide risk awareness, IRPC communicates key risk issues through various channels, including Board and management meetings, departmental meetings, workshops, e-learning, and internal engagement programs such as ISPIRIT and IRPC DNA.

Risk Management Education

Regular Education on Risk Management for Non-Executive Directors: IRPC is committed to promoting a strong risk culture across the organization, including regular risk management education for non-executive directors. To enhance the Board’s effectiveness in overseeing risk, IRPC encourages directors to participate in risk-related training regularly, at least once a year. Directors have attended programs certified by the Stock Exchange of Thailand (SET), such as the Director Accreditation Program (DAP), Director Certification Program, and training by the Thai Institute of Directors (IOD). IRPC also ensures that directors and executives are kept up to date on emerging risk issues related to changes in laws, technology, and economic conditions.
Focused training throughout the organization on risk management principles: IRPC conducts annual enterprise risk management training for all business units, focusing on risk managers, risk owners, and risk agents who act as facilitators and change agents within their units. The training aims to build awareness and embed a strong risk management culture across the organization. To further reinforce this culture, IRPC implements several initiatives, including mandatory risk training for departmental risk managers, integration of risk criteria into annual employee performance evaluations, and linking risk management performance to executives’ financial incentives. ERM Ambassadors and ERM Auditors are also appointed to monitor practices and promote the best practices among employees. In addition, IRPC conducts a Risk Control Self-Assessment for executives every two years to evaluate their risk awareness and the application of the risk management framework.

Risk Management Process Integration

Incorporating risk criteria in the product development or approval process: IRPC integrates risk considerations into every stage of product development, recognizing that taking calculated risks is essential to achieving market success. Risks are assessed and addressed early in the process to ensure cost-effective mitigation. Key market-based risks include commercial viability, customer acceptance, competitor landscape, and timing of product introduction. In addition, IRPC considers organizational risks such as liquidity, resource availability, project management capability, and the technical and logistical readiness of supply chain and manufacturing partners. Throughout development, IRPC staff are actively involved in the selection, evaluation, and engagement with these partners to ensure alignment and minimize risk exposure.
Inclusion of risk management criteria in the HR review process for employee evaluations: IRPC integrates specific risk management criteria into the HR evaluation process to ensure that employee performance reflects not only business outcomes but also risk-conscious behavior. These criteria are clearly defined and aligned with each role’s responsibilities, enabling HR to assess how well employees identify, manage, and respond to risks within their scope of work. This approach helps identify performance gaps, supports targeted development, and reinforces accountability. Risk-related performance is also tied to financial incentives, encouraging a proactive risk management mindset. Through this integration, IRPC promotes a strong risk culture across all levels of the organization.

Risk Management Metrics Link to Financial Incentives

Financial incentives which incorporate risk management metrics:

Financial incentives which incorporate risk management metrics: The management of the corporate risk profile is directly linked to the KPIs of members of the Risk Management and Internal Control Committee (RMCC) and Risk Management Committee (RMC) and is cascaded to relevant functions. Financial incentives are tied to both business and risk management performance, evaluated through KPIs, competencies, and desired behaviors via the Performance Management System (PMS).
For management level:Financial incentives are also linked to business and risk management performance through KPIs. Non-financially, the company fosters a strong risk management culture by instilling a risk-aware mindset across the workforce. Executives and staff are expected to possess a solid understanding of risk management systems relevant to their roles in achieving business objectives.

Risk Reporting and Measurement

Potential risks reporting throughout the organization:

IRPC has implemented various measures to ensure that all employees can report potential risks, including monthly risk management reporting sessions and the IRPC Corruption Mailbox (PO BOX 35) for reporting corruption risks. The company promotes safety through initiatives like the Zero Accident Campaign, Process Safety Management (PSM), and Zero Process Safety Events (PSE), raising awareness through “Lessons Learned” shared with all employees. Additionally, daily health and safety check-ins via the Line application allow for monitoring employees’ well-being across locations, with alerts when employees enter high-risk zones. To encourage reporting, employees can use the whistleblowing mechanism and other channels, ensuring easy access to the Corporate Risk Team at all levels.

Measures allowing continuous improvement in risk management practices:

IRPC ensures continuous improvement in risk management through structured feedback processes that involve employees at all levels. Feedback, suggestions, and comments from the Board of Directors or executives regarding risks raised during reporting sessions are communicated to risk managers, risk owners, and relevant parties. Additionally, IRPC has implemented a “Functional Risk Criteria Review Process,” which encourages employees to engage in assessing risk tolerance and behaviors, fostering active participation in improving risk management practices across the organization.

Measuring Risk Culture Effectiveness:

IRPC has developed the “I-Risk Program,” a Performance and Risk Management platform designed to support the risk management process, particularly when handling large-scale data. The platform summarizes data in a way that encourages transparency and quick response behaviors, which are crucial to building a strong risk culture. The I-Risk application enables risk owners to identify risk events, implement treatments, and regularly report to executives. The program features a dashboard that displays real-time risk statuses, providing continuous surveillance and monitoring of risk management efforts. All users can access updated information on risk factors, which is regularly refreshed during quarterly meetings.

IRPC has assessed evolving external factors and emerging risk trends that could impact on the Company over the next 3-5 years, including political, economic, social, environmental, legal, and technological risks. In response, the Company is proactively preparing to address these challenges while seeking opportunities to adapt its business strategies in alignment with the shifting business landscape of the future.

(1) Geopolitical Risks, Economic Restructuring Risk, and Trade Policy Risk

Description Cause and Consequence:

Geopolitical conflicts between major powers are increasingly intensifying, which may significantly affect international trade and investment. The conflicts include:

The conflict between the United States and China, leading to a technological and supply chain divide, resulting in the formation of new alliances and changes in trade routes, particularly in sectors related to advanced technology and security. The competition for control over critical technologies has led to restrictions on access to technology and knowledge transfer between countries.
The prolonged and potentially escalating conflict between Israel and Palestine, as well as tensions with Muslim countries in the Middle East pose a significant risk. As the Middle East remains a crucial global crude oil supplier, Such tensions could have significant economic implications.

These factors are driving changes in the global economic structure, leading to adjustments in supply chains. Countries are increasingly prioritizing self-sufficiency, particularly in industries critical to economic security, such as energy, food, and technology. This shift has resulted in the relocation of production bases and the restructuring of international trade networks.

Moreover, trade barriers and export restrictions are expected to tighten, especially through non-tariff measures such as environmental regulations, carbon emission controls, and labor requirements. This necessitates business adaptation and additional investments to meet the changing regulatory landscape.

Category of Risk:

Geopolitical

Impact

High

Opportunity:

High

Timeline:

To occur within 1 year

Business Impact:

Rising crude oil costs due to the Company’s dependence on imported crude oil, as the availability of sourcing options may become more restricted or increasingly volatile.
The transportation cost increases due to ongoing conflicts and the distribution of goods from China to various regions worldwide.
The decrease in price competitiveness due to the surplus of Chinese products within the domestic market, and the geographical conflict creating barriers to exports to the U.S., leading to more Chinese products flowing into Southeast Asian countries, affecting
medium and small businesses that are customers of the Company, forcing them to close.
Selling petrochemical products becomes more challenging due to the potential increase in tariffs, and other countries that are less affected or not affected by the Tariff hikes may have a better competitive edge.

Selling petrochemical products becomes more challenging due to the potential increase in tariffs. Countries that are not affected or are less impacted by these tariff increases may have a stronger competitive advantage.

Risk Mitigation

To monitor the situation, and to analyze circumstances by managing risks from price volatility using derivative tools and ensuring inventory management is at an appropriate level.
To expand exports and build stronger alliances with partners, with a focus on countries that are not affected by geopolitical sensitivities.
To develop specialty products with unique characteristics that meet the specific needs of customers, to reduce competition from commodity products.
To seek opportunities in new markets within regions with high economic growth rates and demand for quality products.

(2) Global Treaty on Plastic Risk and Extended Producer Responsibility Policy

Description Cause and Consequence:

The Global Treaty on Plastic, an international agreement to address the global plastic pollution crisis, aims to reduce plastic pollution to zero by 2040. This treaty will be a legally binding agreement between nations. The drafting of an action plan to achieve this goal, referred to as the System Change Scenario, has begun. The plan sets a target to reduce plastic waste discharged into the environment by 80% by 2040 through significant changes, including: 1. Reuse 2. Recycling 3. Shifting direction and diversifying risks 4. Managing plastic waste that cannot be reused or recycled. The treaty is still under development and is in the process of reaching a consensus on common goals.

The draft of the treaty is expected to cover various issues related to plastic pollution, including:

Reducing plastic production and consumption
Promoting the use of recycled plastics and sustainability
Improving waste management systems to prevent plastic leakage into the environment and clean up existing plastic pollution

Additionally, there is a policy on Extended Producer Responsibility (EPR), which focuses on encouraging producers to extend their responsibility for products throughout their entire lifecycle. This aims to address plastic waste generation and pollution from raw materials used in the production of various types of plastics. This may be established as the EPR Packaging Act in the future.

Category of Risk:

Environmental

Impact

High

Opportunity:

High

Timeline:

To occur within 3-5 years

Business Impact:

The Global Treaty on Plastic may impact on the volume of plastic usage, which is a core product of the Company, due to changing consumer behaviors that reduce the use of single-use plastics and increase the use of recycled plastics. Additionally, product requirements and trade regulations established to meet the treaty’s goals may become trade conditions that affect the Company’s sales and performance in the future, as well as its image as a plastic pellet manufacturer, especially if there is insufficient management or response planning.
The Extended Producer Responsibility (EPR) policy may impact production costs through expenses for designing environmentally friendly products, investing in systems, and managing plastic recycling. The growing demand for recycled products and potential fines could arise if EPR becomes a policy and the Company fails to comply fully with legal requirements.

Risk Mitigation

To develop the Company’s strategy to integrate sustainable development with business operations, covering the 3Cs: Circular Economy, Climate Change, and Creating Shared Value.
To invest in projects that recycle post-consumer plastic packaging for reuse through Purification Recycling technology.
To establish an efficient waste collection system and implement source separation to provide raw materials for recycling factories.
To improve manufacturing processes to reduce or eliminate the use of single-use plastics, with a focus on recycling and to incorporate circular economy principles into manufacturing processes, focusing on reuse and the creation of low-carbon products.
To communicate and raise awareness among plastic users to ensure proper understanding and manage plastic waste appropriately to prevent misconceptions that may negatively impact the reputation and image of the Company as a plastic pellet manufacturer.
To build collaboration with stakeholders, including plastic processors, consumers, the government, and industry groups, to drive and prepare for the implementation of the EPR policy.

(3) Climate Change-Related Act and Agreement

Description Cause and Consequence:

As Thailand has announced its goal to achieve carbon neutrality by 2050 and reach net-zero greenhouse gas emissions by 2065, the mechanism to achieve these targets will be enforced through the Climate Change Act, which is expected to be implemented by 2027. The Act mandates businesses to annually assess their Carbon Footprint for Organization (CFO) and outlines carbon pricing mechanisms such as the Emissions Trading System (ETS) and Carbon Tax. These require operators to pay taxes based on the greenhouse gas emissions from their production processes. Additionally, carbon credit trading allows businesses to buy or sell greenhouse gas reductions or sequestration.

Moreover, the export of products to European and U.S. markets will be affected by the introduction of carbon price adjustments and/or carbon taxes at the border (Carbon Border Adjustment Mechanism: CBAM), which will likely increase the costs of exporting plastic pellets and petroleum products to these regions in the future.

Category of Risk:

Environmental

Impact

High

Opportunity:

High

Timeline:

To occur within 3-5 years

Business Impact:

Increased operational costs from carbon footprint assessments, the emissions trading system, and carbon tax systems.
The Company must invest in new technologies and processes to reduce greenhouse gas emissions, which may raise production costs, and prepare to comply with Thailand’s Climate Change Act and international trade regulations.
Pressure to reduce fossil fuel use and transition to renewable energy sources may lead to reduced demand for the Company’s products and could affect its image and stakeholder confidence as a producer of fossil fuels.

Risk Mitigation

To set the Company’s strategy to integrate sustainable development with business operations, covering the 3Cs: Circular Economy, Climate Change, and Creating Shared Value.
To monitor and prepare for compliance with environmental regulations, such as conducting Carbon Footprint Product (CFP), Carbon Footprint Organization (CFO), and developing annual plans to reduce GHG emissions, aiming to lower them below the baseline to be set through ETS and Carbon Tax.
To invest in renewable energy projects, such as Solar Farms, and initiatives that help reduce greenhouse gas emissions, such as reforestation projects.

IRPC places strong emphasis on managing potential risks and uncertainties through the implementation of a Business Continuity Management (BCM) system and a comprehensive Business Continuity Plan (BCP) aligned with ISO 22301 standards, certified under polyolefin products since 2022.

The system addresses various risk scenarios, including major accidents, structural collapse, chemical spills, droughts, terrorism, protests, material shortages, cyberattacks, machinery breakdowns, and epidemics. Regular Business Impact Assessments and Risk Assessments are conducted to ensure that the BCP remains up to date and responsive to evolving risks.

This demonstrates the Company’s preparedness to respond to situations that may cause business disruptions. The system covers potential risks including:

1. Major accidents risk such as fires

2. Structural collapse risk

3. Chemical spill risk

4. Drought risk

5. Terrorism risk

6. Protest risk

7. Material shortage risk

8. Cyber-attack risk

9. Machinery breakdown risk

10. Epidemic risk

In response to the potential risk events mentioned above, IRPC will regularly conduct Business Impact Assessments and Risk Assessments for each scenario to define and update the Business Continuity Plan, ensuring rapid and appropriate prevention and response measures are in place.

To maintain preparedness, IRPC conducts regular tests and BCP drills through simulated scenarios to evaluate the effectiveness of the plan and the team’s crisis management capabilities. These drills are carried out under the Crisis Management and Business Continuity Center structure, with the involvement of top executives, ensuring coordinated and timely responses.

Risk & Crisis Management

Scope of Risk Management at Each Level

Scope

Definition

Organizational Level

Business Unit Level

Project Level

Operational Level

(1) Communication and Consultation

(2) Defining the Mission

Mission to Shareholders

Mission to Society

Mission to Business Partners

Mission to Employees

(3) Context Setting

(4) Risk Assessment

(5) Risk Treatment and Mitigation

Approach

Meaning

Conditions for Consideration

Accept Risk (TAKE)

Treat Risk (TREAT)

Transfer Risk (TRANSFER)

Terminate Risk (TERMINATE)

(6) Monitoring and Review

(7) Report

Risk Management Tools

Document download

(1) Geopolitical Risks, Economic Restructuring Risk, and Trade Policy Risk

Description Cause and Consequence:

Category of Risk:

Impact

Opportunity:

Timeline:

Business Impact:

Risk Mitigation

(2) Global Treaty on Plastic Risk and Extended Producer Responsibility Policy

Description Cause and Consequence:

Category of Risk:

Impact

Opportunity:

Timeline:

Business Impact:

Risk Mitigation

(3) Climate Change-Related Act and Agreement

Description Cause and Consequence:

Category of Risk:

Impact

Opportunity:

Timeline:

Business Impact:

Risk Mitigation