Materiality Assessment

In 2024, the Company conducted a materiality assessment of sustainability issues, taking into account the organizational context, stakeholder expectations,

as well as internal and external factors that may impact the Company's business operations. Peer sustainability issues within the industry were also reviewed. The outcomes of this assessment were used to inform the Company's sustainability policies, strategic direction, and operational planning. The Company adopted a materiality matrix approach to identify and prioritize relevant topics through a systematic process, as outlined below:

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.

The Company has prioritized the issues into three levels: high, medium, and low. The results of the sustainability materiality assessment were presented to the Corporate Governance, Risk Management, and Sustainability Development Committee for review and validation to ensure the accuracy of the prioritization and its alignment with the Company’s strategic direction, as follows:

Materiality Matrix

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High-Priority Issues with Significant Business Impact

1 Climate Change Mitigation and Adaptation
2 Good Corporate Governance and Ethical Conduct
3 Product and Service Quality

Medium-Priority Issues with Moderate Business Impact

4 Human Capital Development
5 Environmental Management
6 Supply Chain Management

Low-Priority Issues with Limited Business Impact

7 Occupational Health, Safety, and Workplace Environment