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Materiality Assessment

The Company conducts a sustainability materiality assessment on an annual basis.The assessment considers both internal and external factors, including stakeholder expectations,under the double materiality principle.

It covers material topics across the economic, social, and environmental dimensions that may have significant impacts on (i) the Group’s business operations and performance and (ii) stakeholders across the value chain. The results are used to inform the Group’s sustainability strategy and implementation, ensuring alignment with the business context and the Company’s enterprise risk management. Under the double materiality principle, the assessment considers:

  1. the impact of ESG issues on the Group’s business operations and financial performance; and
  2. the impact of the Group’s business activities on the economy, society, the environment, and stakeholders. Accordingly, the Company’s materiality assessment process is as follows:
Understanding the Organizational Context
The Company reviewed its organizational context, business operations, and value chain, as well as the expectations of key stakeholders. The analysis also considered the direction of relevant laws, regulations, and emerging policy trends that could affect business operations.
Identifying Actual and Potential Impacts
Through internal and external stakeholder engagement such as meetings and consultations the Company identified both actual and potential impacts of key sustainability issues on the business, stakeholders, the economy, society, the environment, and human rights.
Assessing the Significance of Impacts
Each identified impact was assessed based on its magnitude, scope, likelihood of occurrence, and the potential for irreversible consequences. This assessment helped determine the materiality of each issue.
Prioritizing Material Topics
The material topics were then prioritized using a Materiality Matrix, taking into account two dimensions Impact on stakeholders and Impact on the Company’s business operations. Each topic was classified into one of three priority levels is High, Medium, and Low.

Double Materiality Matrix

Materiality Matrix
Click to enlarge
High-Priority Issues
  • Climate Change Mitigation and Adaptation
  • Product and Service Quality
Medium-Priority Issues
  • Human Capital Development
  • Environmental Management
  • Supply Chain Management
Low-Priority Issues
  • Good Corporate Governance and Ethical Conduct
  • Occupational Health, Safety, and Workplace Environment

Based on the Group’s double materiality analysis of strategically significant topics, considering both the impact on business performance and value creation, as well as the significance of impacts on stakeholders, society, the economy, and the environment, the MGC-ASIA Group remains committed to advancing its sustainability agenda. The Group is placing increased emphasis on material impact areas in alignment with automotive and mobility industry trends and the evolving expectations of stakeholders across the value chain.

The assessment results indicate that respect for and promotion of human rights across the value chain, sustainable energy strategy, human capital development and employee well being, risk management, and occupational health and safety (OHS) are material issues from both business and stakeholder perspectives. The Company is committed to integrating these priorities into its core strategy and operations to strengthen organizational resilience, enhance competitiveness, and support sustainable long term growth.