Stakeholder Impact In the current global landscape, the oil refinery sector faces a dual dynamic of opportunities and challenges. The resumption of growth in global economic activities has driven a surge in demand for refined oil products, providing refineries with promising opportunities. However, this demand, coupled with the imperative of increased production capacity, brings challenges in supply chain resilience and efficient operational management, prompting refineries to seek innovative solutions to meet the growing energy needs. Simultaneously, the sector must address the pressing challenge of meeting stricter environmental requirements, urging the need for sustainable product and process innovations to address negative impacts from core business activities, ranging from extraction and refining to the processing of crude oil. These activities can contribute to emissions, waste generation, and impacts within the supply chain, involving engagements with suppliers participating in unsustainable practices that worsen environmental and social challenges. IRPC is well aware of these potential impacts caused by our business and is firmly committed to proactively addressing them for a more sustainable future. Recognizing the pivotal role of innovation in addressing these opportunities and challenges, IRPC has strategically positioned innovation as the primary driver for achieving company objectives, promoting economic, environmental, and social sustainability, including respect for human rights. This strategic focus on innovation aims to create business opportunities and sustainability for the company, as well as offering solutions to meet the needs of stakeholders, improve the quality of life of the community, the betterment of the society at large and protect the environment. Management Approach To underscore our commitment to innovation excellence, IRPC places innovation management under the supervisory oversight of the Innovation Management Committee (IMC) chaired by the Executive Vice President of Commercial and Marketing. The IMC is composed of executives from the following departments: Manufacturing Operations, Strategy, Corporate Planning and Development, IRPC Innovation Center, Commercial and Marketing, and Accounting and Finance. The IMC is responsible for overseeing the company’s innovation in terms of policy, process, and resource allocation to ensure the company’s sustainable growth. IRPC Innovation Center operates under the vision of “To be the center of excellence in materials and energy solutions to expedite sustainable growth”. It focuses on research and development of innovations in advanced materials, health and life science, circular economy, future energy, and energy storage. The center’s strategy is to “Extensive collaboration (“IN/OUT”) with partnership to speed-up products commercialization”. 119 Business-Driven Sustainability 56-1 ONE REPORT 2023
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