3) Tightened access control at entry and exit points at the offices or production plants by setting up temperature screening on employees and visitors and requiring everyone to wear a face mask, in addition to other measures required by the authorities 4) Established guidelines on how to process any employee suspected or confirmed to have COVID-19, systematically implemented isolation and quarantine, developed workforce contingency plan to prevent disruption to the company’s main operations 5) Provided the vaccines for the employees, and used the company’s establishment as a vaccination center for citizens living nearby the area of IRPC industrial manufacture 6) Developed a business continuity plan (BCP) for severe infectious disease threats, which will be continuously updated and improved. Conducted regular drills to ensure the BCP works as intended Emerging Risk IRPC has analyzed changing external factors and risk trends in various contexts that may pose threats to the company during the next 5-10 years. These risks may take the forms of political, economic, social, environmental, legal, or technological threats, etc. IRPC is well prepared to take on challenges while pursuing new opportunities as they present themselves. Risk Management Guidelines 1) Risk from a shift in consumer behavior in favor of electric vehicles, with improved technologies at lower price points, over petrol ones. Incentives offered by the government to drive electric vehicle demand will result in the company’s declining sales of oil and lubricants. The company has therefore formulated a long-term risk management plan with the strategy to gradually move away from petroleum products towards higher value-added petrochemical products. The company has conducted studies on ways to convert naphtha and aromatics, components of gasoline, into Paraxylene or other substances for higher added value. 2) Climate Change Risk: The increase in frequency and magnitude of natural disasters in recent years is linked to climate change, attributed mainly to human activities, particularly greenhouse gas emissions. At the latest summit of the United Nations Convention on Climate Change (COP26), participating countries pledged to reduce emissions, phase out coal, shift to electric vehicles to protect nature. Thailand is committed to reducing its Carbon Neutrality by 2050 and Net Zero Greenhouse Gas Emissions within 2065 or earlier. To comply with the government policy, IRPC has set up guidelines to prevent and mitigate the impact of such risks. The company has conducted studies on the application of Carbon Pricing in assessing the cost-effectiveness of future projects, putting in place measures to reduce GHG emission intensity, such as improving energy efficiency in its production processes, thereby reducing fuel combustion. The company piloted a voluntary assessment per the Carbon Footprint Organization (CFO) assessment guidelines in collaboration with the Department of Industrial Works and Thailand Greenhouse Gas Management Organization. (TGO), and projects using solar panels to generate electricity, etc. 107 Risk Management IRPC PUBLIC COMPANY LIMITED
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