Materiality Assessment

Materiality Assessment

In 2024, the Company enhanced its process for evaluating key sustainability issues to be more clearly defined, based on the Materiality Assessment guidelines of the Global Reporting Initiative (GRI) standard. This globally recognized sustainability reporting framework provides clear and tangible indicators. The assessment includes analysis of positive and negative impacts arising from or potentially arising from business operations on stakeholders. It evaluates the severity, scope, and likelihood of these impacts across environmental, social, governance, and economic dimensions in order to establish preventive, mitigative, and remedial measures. The assessment also considers governance, environmental, and social issues that various stakeholder groups expect or are concerned about. The results of the sustainability materiality assessment are reviewed annually by the Sustainability Development Working Group, the Executive Board, and the Board of Directors.

Steps for Assessing Key Material Sustainability Issues

1
Identifying Sustainability Topics
Consider various factors relevant to the Company’s business operations through brainstorming, management surveys across business units, stakeholder expectations and interests gathered from stakeholder engagement, and comparison with the master list of topics derived from legal requirements, key topics from similar industries, national and global sustainability trends, and international concerns.
2
Identifying Impacts on the Company
Assess the severity, scope, and likelihood of occurrence for each sustainability issue.
3
Identify issues that stakeholders care about
Define the impact scope on stakeholders for each issue, evaluate the level of stakeholder expectations, and determine which issues stakeholders are most concerned about.

Stakeholder Engagement

Key Sustainability Issues Scope of Impact on Stakeholders
Employees Shareholders Customers Trade Partners Creditors / Lenders Debtors Government Agencies / Regulators Media and Analysts Community and Society Competitors
Corporate Governance
Cybersecurity and Information Security
Risk and Crisis Management
Human Resource Management and Employee Training
Labor Operations and Practices
Safety and Occupational Health in the Value Chain
Community Engagement
Coping with Climate Change
Efficient Resource Management
4
Prioritizing Key Sustainability Issues
Use quantitative data from the Company’s impact assessments and stakeholder expectations – both internal and external – to classify sustainability topics into three levels: high, medium, and low. Then, use a Materiality Matrix where the vertical axis (Y) represents the level of stakeholder expectations, and the horizontal axis (X) represents the significance of the impact on the company to prioritize sustainability issues.

Materiality Matrix 2024

Materiality Matrix
Governance and Economic
1
Corporate Governance
2
Cybersecurity and Information Security
3
Risk and Crisis Management
Social
4
Human Resource Management and Employee Training
5
Labor Operations and Practices
6
Safety and Occupational Health in the Value Chain
10
Community Engagement

The Company determines the operating guideline that is consistent with significant and urgent issues. The Board of Directors' Meeting No. 1/2024 resolved to consider and approve the following key issues and corporate sustainability performance targets for 2024:

1
Good corporate governance and creating sustainability in business operations as well as develop innovation, new products and services.
2
Risk management in accordance with the established risk management framework through monitoring and reporting results according to the risk management structure.
3
Labor rights operations and practices according to human rights principles and employee potential development as well as creating replacement personnel according to the succession plan. to achieve the organization's goals.
4
Environmental management, reduce resource use and adapt to cope with climate change.

This is done by assigning the Sustainability Development Working Group and the Office of Company Secretary as the main responsible unit continuing to collaborate with business units and related parties.