Message from Chairman
Over the past decade, it is fair to say that Indorama Ventures has achieved its stated vision to become a truly global chemical company. In the last two years, as the global pandemic caused unprecedented disruption all over the world, we proved the company’s resilience under the most testing conditions in our history, culminating in a record financial performance in 2021. This achievement has given us greater confidence in the value-creating potential of our integrated global model, our people, and our processes.
I am proud that throughout this period we were able to look after our people as a responsible organization that values our employees. On behalf of the Board, I express our deep condolences to the families and colleagues of those who were taken from us. Our experience of the pandemic has underscored the value of investing in our employees’ wellbeing. Our extended IVL family and their near ones battled extraordinary circumstances. Our 2021 performance is a testament to their unstinting response to the challenge. All through this difficult era, it was clear to me – as I am sure is the case for all our leaders – that it is truly our people who make the difference. I sincerely thank them all for their tireless efforts.
IVL’s strength today is a consequence of a strategy that we articulated when we listed in 2020. Already a major PET manufacturer at the time, we set out to leverage our platform to become a global chemical company. Spearheaded by the Group CEO, his senior management team and generous support of the members of the Board of Directors, our teams have employed their time well. Through a series of calculated acquisitions, including the purchase of the ‘Spindletop’ assets in 2020, IVL grew its leadership in key premium markets and formed the three distinct segments that make up our integrated petrochemical-based model today.
When the pandemic struck, we were not swayed from our task. Throughout the period, our teams were transforming IVL’s processes towards becoming a future-ready organization, including implementing a new ERP, creating six corporate Enabling Functions, and launching the Global Business Services (GBS) center in India. In 2021, we announced our acquisition of Brazil-based Oxiteno, which will further enhance our IOD segment. We also strengthened the Indorama Management Council (IMC) – our highest operational management committee – by rotating leaders and adding the segment Executive Presidents to empower more agile decision making.
Today IVL employs more than 24,000 people at 125 sites in 33 countries1. We enjoy financial strength, growing profitability, leadership in our chosen sector, a highly resilient integrated portfolio of innovative and sustainable products, and an emerging generation of international leaders with a growth mindset.
As we emerge from this remarkable period of change, it is worth reflecting on the key enablers of our success and ensure that these fundamentals continue to drive our ambition. Our innate agility, for example, is central to IVL’s storied past. As we reset our business for the next major step in our journey, we must retain what has worked so well for us for more than 30 years and, once again, rely on our agility to adapt to the new environment.
In this same spirit of agility, I am pleased to see that our management team, having so successfully guided our company to this point, is once again recalibrating our business for the post-pandemic era under a new Vision 2030 ambition. Building on our track record of profitable growth, we will leverage our financial strength, global market leadership, and the ongoing transformation of our processes to become an industry leader in sustainability.
Investing In a More Sustainable World
Guiding Vision 2030, is our new Purpose statement: Reimagining chemistry together to create a better world. As demand continues apace for plastic products that are more useful and cheaper, and which transform everyday living for billions of people, our publicly stated purpose becomes even more central to our Vision of making great and more sustainable products for society.
Our sustainability journey is not new. In 2021, IVL celebrated its tenth year of sustainability reporting through the 3Ps – People, Planet and Prosperity. During this period, we became the world’s largest producer of recycled PET for beverage bottles, increasing recycling capacity almost 100 times to 330,000 tons per year. Today, we have an ambition to recycle 50 billion PET bottles every year by 2025.
The financial sector is awarding us high marks for our achievements in lowering our impact on the environment, improving human rights, ethics and sustainable procurement, and rightly positions us as a responsible player in the global business community. In 2021, we were included among top global chemical companies in the Dow Jones Sustainability Indices (DJSI) - World, for the third consecutive year, and maintained inclusion in the DJSI - Emerging Markets in the chemicals industry for the fifth year. We also received the Stock Exchange of Thailand’s Best Sustainability award, a Platinum recognition for sustainability from EcoVadis, and achieved ChemScore top ranking among the world’s top 50 global chemical companies.
These recognitions have powerful spin-offs for our financing strategy. During the year we issued a 10 billion baht Sustainability-Linked Bond (SLB), the largest in Thailand. The instrument is linked to our targets in reducing greenhouse gas emissions, increasing PET recycling and increasing our use of renewable energy sources.
Over the past decade, we have strengthened our corporate governance processes by introducing policies and procedures and including more independent directors who guide us towards excellence in boardroom ethics and governance. In November, I was pleased to welcome the appointment of Dr. Harald Link to the Board as an independent director. We welcome his deep experience as a director and his business acumen in the field of renewable energy.
Our Corporate Governance manual, combined with extensive training, provides a strong platform for good governance practices. During the year, our Corporate Governance Report was awarded an “Excellent 5 Star” score by the Thai Institute of Directors (IOD) in conjunction with the Stock Exchange and Security Exchange Commission of Thailand. We also renewed our Private Sector Collective Action Coalition Against Corruption (CAC) certification in Thailand. We will continue to develop our standards to ensure that our anti-corruption practices are implemented in the spirit in which they were created.
Extending Our Appreciation
I would like to thank my fellow Directors for their ongoing support in helping position IVL for its continued 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 share our dreams and achievements. Finally, I would like to thank all our employees, and to wish them every success in driving our company towards achieving Vision 2030.
Sri Prakash Lohia