EXTERNAL ENVIRONMENT AND OUTLOOK We understand and respond to micro and macro influences in local, national, regional and global environments to growour business and sustainability. This is supported by robust governance, planning and implementation systems. Leveraging these internal mechanisms gives us the foresight and confidence to continuously improve across all business spheres by responding to opportunities and managing the short, medium and long-term risks. GLOBAL ECONOMIC FACTORS Our business operations in 33 countries navigate diverse legal and regulatory frameworks and are influenced by local, national and global operational contexts. We apply an integrated risk-based approach to remain compliant and keep abreast of these influential factors. Challenges • Continuing US-China trade war tariffs • Inconsistent or unexpected changes in foreign laws, currency controls and tax regulations • Changes in international tax treaties • Plastics tax in Europe • Introductions of carbon taxes in countries where IVL operates (e.g. in the Netherlands, Canada, US) • Increased political polarization leading to restrictive legislation Opportunities • Vertical integration of the business to prevent supply chain disruptions • Developing cost-optimization strategies for improved revenue margins • Establishing a presence in more countries and build trust with local communities by investing regularly in local initiatives INCREASED MARKET COMPETITION We recognize the growing production capacities and competitive advantages of global emerging markets and maintain our competitive edge by prioritizing innovation throughout our business and closelymonitoringmarket competition in the development, production and distribution of comparable products. Challenges • Competition among large multinational companies • Competition from regional and/or specialized producers in markets • Margin pressure from, for instance, limited demand growth and overcapacity in a market Opportunities • Investments in R&D to drive product stewardship • Developing new products and portfolios for improved profit margins • Developing new technologies to address unmet sustainability needs • Innovating new products to unlock potential revenue streams in new markets CLIMATE CHANGE AND THE DEMAND FOR CIRCULARITY Climate change is rapidly influencing regulations, access to capital and consumer expectations. We believe that businesses must be responsible, ethical and efficient in their long-term responses to evolving regulatory requirements while meeting stakeholder expectations, protecting the environment and practicing sustainability. This presents a value creation opportunity to shift to a circular economy and continue significant investments in new technologies to drive operational efficiency and circular product stewardship. Challenges • Increase in carbon pricing • Increase in consumer plastics due to the COVID-19 pandemic • Lack of recycling awareness Opportunities • Increasing demand for environmentally friendly products • Being a thought leader driving the circular economy agenda • Empowering suppliers, manufacturers and retailers to adopt circularity in their business models 34 INDORAMA VENTURES PCL. VISION - TO BE A WORLD-CLASS SUSTAINABLE CHEMICAL COMPANY MAKING GREAT PRODUCTS FOR SOCIETY. Chief Strategy Officer Message Chairman of the ESG Council Message Key Achievements 2021 Home CEO Message IVL’s Sustainable Value Creation for Stakeholders
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