Materiality Assessment

Process for determining material assessment ^{(GRI 2-14, GRI 3-1)}

The Company has established a process to analyze and assess material sustainability topics to ensure alignment with its business operations, stakeholder expectations, and potential impacts that may affect the Company’s long-term value. This process covers activities across the entire value chain, taking into account the Company’s business objectives and strategic direction, as well as key trends and relevant internal and external factors that may influence both positive and negative impacts on the Company’s operations.

The assessment of material sustainability topics is conducted in accordance with the Global Reporting Initiative Standards (GRI Standards). In addition, the Company considers the alignment of these topics with the United Nations Sustainable Development Goals (SDGs) and applies the concept of Double Materiality (and the principle of double materiality). The process consists of the following steps:

Identification of sustainability topics

The Company identifies sustainability topics that have actual and potential impacts on its operations, covering both opportunities (positive impacts) and risks (negative impacts), as well as short-term and long-term impacts. This is conducted through the review of relevant data, statistics, complaints, and factual information from both internal and external sources, together with input from stakeholders.

Assessment of the significance of impacts

The assessment of impact materiality is conducted through the collection of data and input from stakeholders, including key stakeholder groups identified by the Company as well as individuals with a strong understanding of the Company’s business and operating context. This process involves interviews, stakeholder engagement sessions, and internal data analysis. The Company considers both positive and negative impacts in order to appropriately prioritize material topics and to support the development of management strategies aligned with sustainable development goals, while creating long-term shared value with stakeholders.

The value chain mapping and related stakeholders are presented in the section “Stakeholder Engagement”

Prioritization of material topics

The Company prioritizes material sustainability topics by establishing scoring criteria and categorizing each topic into four levels: Very High, High, Medium, and Low significance. These prioritization results serve as a guideline for managing sustainability issues. The overall process is analyzed by relevant internal functions, which also review the consistency and appropriateness of the prioritization outcomes.

Review and validation

The results of the materiality assessment are reviewed and approved by the Company’s senior management before being presented to the Board of Directors for consideration and guidance on future directions. The Company utilizes the assessment outcomes and identifies material topics as a framework for defining its ESG strategy and direction, as well as supporting business decision-making. This ensures that the Company’s sustainability management is conducted effectively and aligned with its long-term sustainable growth objectives.