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
Customers Trade partners Debtors Employees Creditors/Lenders Shareholders Government agencies/Regulators Competitors Community and Society Media and Analysts
Risk and Crisis Management
Corporate Governance
Cybersecurity and Information
Safety and Occupational Health in the Value Chain
Human Resource Management and Employee Training
Labor Operations and Practices
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 2025

Materiality Matrix
Governance and Economic
1
Risk and Crisis Management
3
Corporate Governance
7
Cybersecurity and Information
Social
2
Safety and Occupational Health in the Value Chain
4
Human Resource Management and Employee Training
5
Labor Operations and Practices
9
Community Engagement

The Board of Directors Meeting No. 1/2025 resolved to consider and approve key sustainability issues and operational targets for corporate sustainability for 2025, assigning overall responsibility to the Chief Executive Officer, while relevant business units are accountable for managing specific sub-issues to mitigate the severity, scope, and likelihood of potential impacts. The Sustainability Development Working Group and the Office of Company Secretary have been designated to monitor progress and report performance to the Executive Board and the Board of Directors on a quarterly basis