The past decade has been exciting to say the least – notably that Indorama Ventures Limited has become a global leader in most of its businesses. This has been achieved as a consequence of a well-articulated strategy spearheaded by the Group CEO, his senior management team and generous support of the members of the Board of Directors. As a result, IVL has a track record of profitable growth, a global manufacturing footprint with a diversified chemicals portfolio, a strong balance sheet and customer satisfaction that is constantly on the rise. What is immensely satisfying is the passion and drive of employees, all of whom are equally aligned in the goal of making IVL a truly world class chemical company.
As an organization that is continually looking to stay relevant and focused on its sustainable future, I want to share with you our goals and aspirations for the future.
From a financial point of view, 2019 has been a challenging year for the petrochemicals industry as a whole and for IVL as well. That said, what gives me great satisfaction are the many achievements of our teams.
Having established the building blocks and created a strong foundation, IVL is embarking on its next journey in this new decade – a journey that promises to usher in a new era of growth and value creation.
Creating an Enabling Framework
Having completed the strategy of consolidation in the Combined PET and high-value Fibers portfolio, IVL embarked on developing its high-growth Integrated Oxides and Derivatives portfolio. The completion of the ethane cracker re-commissioning project and the experience gained in the EO-EG business created a strong framework for the acquisition of selected assets from Huntsman Corporation. This acquisition, the largest in the history of the Company, comes with best-in-class manufacturing assets in the USA, India and Australia and a fantastic team of over 1,000 well-trained employees.
Business expansions also necessitate developing organizational capabilities and at the top of the list of priorities is strengthening our intellectual capital.
I am glad that at the Annual General Meeting of 2019, shareholders approved the appointment of two new members to the Board of Directors of Indorama Ventures Public Company Limited.
Mr. Tevin Vongvanich joined the Board as an Independent Director and is a graduate in Chemical Engineering with over 30 years of management experience in the integrated energy and chemicals industry. Mr. Vongvanich is also a member of the Sustainability and Risk Management Committee at IVL. Mr. Yashovardhan Lohia joined the Board as an Executive Director. After completing a decade in leadership roles, he was appointed as IVL’s Chief Recycling Officer and is also a member of its Sustainability and Risk Management Committee
Mr. Yashovardhan Lohia joined the Board as an Executive Director. After completing a decade in leadership roles, he was appointed as IVL’s Chief Recycling Officer and is also a member of its Sustainability and Risk Management Committee.
Proud of our Progress
On the sustainability front, IVL is raising the bar and increasingly being recognized as the gold standard in the industry. In its most recent update, FTSE Russell ranked IVL number one among all global chemical companies on its ESG score. We were ranked second amongst top global chemical companies in the Dow Jones Sustainability Index and for the third consecutive year, maintained inclusion in the DJSI - Emerging Markets. IVL achieved the highest score amongst companies in the Stock Exchange of Thailand main index SET50 and in the GICS100 Chemical Companies on Bloomberg ESG assessment. These ratings reflect our performances in lowering the Company’s impact on the environment, improvements in labor and human rights, ethics and 14 Indorama Ventures Public Company Limited sustainable procurement and rightly position us as a responsible player in the global business community.
We continue to refresh our business model through global scale, integration and diversification into high value-added products, with a focus on creating long-term value and maximizing total shareholder return.
Ongoing Focus on Governance
IVL continues to strive towards strong ethics and corporate governance, and the Board has been a key catalyst in all that we have accomplished.
The Company’s effort to maintain the highest level of transparency and corporate governance were duly recognized by the Thailand Institute of Directors in conjunction with the Stock Exchange and Security Exchange Commission of Thailand. In 2019 IVL continued on its track and was awarded an “Excellent - 5 Star” rating for its Corporate Governance Report for the seventh consecutive year.
All Corporate Governance related policies and code of conduct were reviewed and updated to the corporate governance manual in order to provide clear. The manual was translated in to 20 international languages, uploaded on the IVL website and widely distributed to all IVL entities globally during the year. To ensure wide dissemination and understanding, a Corporate Governance policy awareness campaign was undertaken in the form of in-room training and tele-conferencing.
IVL’s Whistleblower Policy was made General Data Protection Regulation (GDPR) compliant to enhance protection of personal information. In order to improve governance and good business practice, an online option for whistleblower reporting was introduced.
We have long recognized the importance of diversity and inclusion echoed in IVL’s values. Our commitment to bringing together people of diverse backgrounds, cultures and nationalities helps drive our business globally.
Extending Our Appreciation
I would like to thank my fellow Directors for their ongoing support in helping position IVL for its long-term success. I would like to also thank the management team for their leadership, as well as each member of the IVL family and our stakeholders, who have shared our dreams and achievements and accompanied our journey to the top.
Sri Prakash Lohia