Materiality Assessment

Materiality Assessments provide us with a tool to prioritize and make sense of the sustainability landscape as well as a powerful mandate to focus and act on topics that are the highest priority for the business and stakeholders.

IVL carried out a materiality assessment in accordance with the GRI Standards, together with our business strategy, and environmental and social priorities to identify and prioritize primary sustainability material topics that could impact the Company and external stakeholders. This helps us to develop risk mitigating actions and explore remedial opportunities.

By combining the significant topics that may affect us and our stakeholders, we are able to identify materiality topics. As part of the materiality assessment, we have conducted a survey covering both external stakeholders (suppliers, customers, investors, media, analysts and bankers) and internal stakeholders (across all operations, businesses, and key functions) every other year. Details of the materiality assessment are provided in the Materiality Assessment chapter in this report.

We also created a materiality matrix with key material topics, which were assessed by business leaders, plant heads, the Sustainability Steering Committee and people from various functions across the organization and our external stakeholders. Based on this assessment, senior management agreed on the material topics for our business going forward. We reviewed the GRI topics and where relevant, assigned indicators.

Materiality Matrix 2022 - 2023

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Materiality Assessment Summary 2022

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Key Material Topics

IVL Group conducted a materiality assessment to identify and reassess the key economic, environmental, social and governance topics that significantly impact our business and our stakeholders. These topics were identified through a review of relevant sustainability ratings and standards, industry trends, as well as stakeholder interests.

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IVL Material Topics	Corresponding GRI Topics	Key Stakeholders Impacted and Boundary		Ongoing IVL Commitments and Targets (2019-2025)
IVL Material Topics	Corresponding GRI Topics	Within the Organization	Outside the Organization	Ongoing IVL Commitments and Targets (2019-2025)
Compliance Management	Ethics and Integrity Management Approach Anti-corruption Anti-Competitive Behavior Socioeconomic Compliance Environmental Compliance	Manufacturing Operations (Subsidiaries, Joint Ventures including Joint Ventures with no managerial and operational control) Managements Employees	Business Partners Contractors Community Regulators, Government	Zero non-compliance Beyond all applicable environmental compliance
Business Ethics, Integrity and Transparency	Ethics and Integrity Management Approach Anti-corruption Anti-Competitive Behavior Human Rights Assessment Public Policy Child Labor	Manufacturing Operations (Subsidiaries, Joint Ventures including Joint Ventures with no managerial and operational control) Managements Employees	Business Partners Contractors Regulators, Government	Business conduct and ethics training and creating awareness to all employees Zero corruption Publicly reporting any material non-compliance
Risk and Crisis Management	Strategy Ethics and Integrity Governance Management Approach Economic Performance	Manufacturing Operations (Subsidiaries, Joint Ventures including Joint Ventures with no managerial and operational control) Managements Employees	Business Partners Contractors Community Regulators, Government	Identification and continuous monitoring of emerging risks
Corporate Governance	Governance Management Approach Anti-corruption Anti-Competitive Behavior	Manufacturing Operations (Subsidiaries, Joint Ventures including Joint Ventures with no managerial and operational control) Managements Employees	Business Partners Regulators, Government	To be globally recognized for good corporate governance standards and practices To embed an organizational culture of zero corruption, transparent business ethics and conduct, and compliance with laws and regulations Zero corruption Excellent (5 Stars) CG Rating from the Institute of Directors, Thailand
Customer Relationship Management	Economic Performance Management Approach Customer Health and Safety Marketing and Labeling Customer Privacy Socioeconomic Compliance	Management Sales and Marketing Personnel	Business Partners	Customer Satisfaction Index (CSI) and Customer Retention Rate (CRR) are better than or equal to the previous year CSI target is greater than or equal to 86% for 2021.
Supply Chain Management	Supplier Environmental Assessment Supplier Self- Assessment for Labor Practices Supplier Human Rights Self-Assessment Supplier Self-Assessment for Impacts on Society	Manufacturing Operations Employees	Business Partners Regulators, Government	100% of new raw-material suppliers and critical non-raw material suppliers assessed

IVL Material Topics	Corresponding GRI Topics	Key Stakeholders Impacted and Boundary		Ongoing IVL Commitments and Targets (2019-2025)
IVL Material Topics	Corresponding GRI Topics	Within the Organization	Outside the Organization	Ongoing IVL Commitments and Targets (2019-2025)
Climate Change	Economic Performance Management Approach Water Emissions Environmental Compliance Supplier Environmental Assessment Socioeconomic Compliance	All Managerial Control Operations Manufacturing Operations Employees	Business Partners Contractors Community Regulators, Government	10% GHG Intensity Reduction (combined Scope 1 & Scope 2) by 2025 from 2020 based year To maintain the 5% of revenue from sustainable products by 2025 To embed carbon price into business decision
Plastic Waste and Recycling	Economic Performance Organizational Profile Management Approach Materials Emissions Effluent and waste Customer Health and Safety	All Managerial Control Operations Manufacturing Operations Employees	Business Partners Contractors Community Regulators, Government	To recycle a minimum 750,000 tons of PET post-consumer materials as feedstock into our PET production by 2025 To invest 1.5 billion USD in recycling Enhancing the Circular Economy
Product Stewardship	Customer Health and Safety Emissions Management Approach	Manufacturing Operations Employees	Business Partners Contractors Regulators, Government	Product toxicity reduction Sustainable Products Classification by 2020

IVL Material Topics	Corresponding GRI Topics	Key Stakeholders Impacted and Boundary		Ongoing IVL Commitments and Targets (2019-2025)
IVL Material Topics	Corresponding GRI Topics	Within the Organization	Outside the Organization	Ongoing IVL Commitments and Targets (2019-2025)
Human Rights	Non-discrimination Freedom of Association and Collective Bargaining Human Rights Assessment Child Labor Forced or Compulsory Labor Right of Indigenous Peoples Supplier Environmental Assessment Supplier Social Assessment Security Practices Ethics and Integrity Management Approach	Employees	Business Partners Contractors Community	Compliance with the fundamental rights of the workforce, as per UN Guiding Principles and ILO standards ZERO Human Rights violations
Human Capital Development	Organizational Profile Management Approach Employment Training and Education	Managements Employees	Business Partners Contractors Community	Unlocking internal leadership potential and developing leaders who can deliver and drive the organization towards its new vision Building and shaping world-class talent systems and culture Training hours is greater than or equal to 18.58 hours per employee for 2021
Occupational Health, Safety and Well-being	Organizational Profile Management Approach Ethics and Integrity Security Practices Occupational Health and Safety Training and Education Effluents and Waste	All Managerial Control Operations Manufacturing Operations Managements Employees	Business Partners Contractors Community	Zero fatalities LTIFR < 0.5 cases per 200,000 man-hours by 2025 Zero major spills of hazardous substances

Business Overview and Value Chain

Chain IVL is one of the world’s leading petrochemicals producers. In 2022, we have 147 operating sites in 35 countries. The company’s portfolio is comprised of 3 business segments: Combined PET Business, Integrated Oxides and Derivatives Business and Fibers Business

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