Materiality

Study and analyze the Company’s sustainability context by considering both internal and external factors. This includes monitoring global and regional trends, industry sustainability developments, material issues identified by peer organizations within the same sector, as well as relevant sustainability standards, assessment frameworks, and global concerns. This holistic approach enables the Company to systematically identify potential risks, opportunities, and impacts arising from its business operations.

Collect and identify sustainability topics through an analysis of the perspectives, expectations, interests, and concerns of all stakeholder groups across the value chain, both internal and external. This process also incorporates an assessment of global and industry trends, historical events, current and emerging risk factors that may create impacts or opportunities for business, as well as human rights considerations. The collected information is analyzed to determine sustainability topics that may generate positive or negative impacts on the organization. These issues are subsequently categorized into Environmental, Social, and Economic & Governance dimensions.

Identified and categorized sustainability topics are subjected to a formal assessment and prioritization process, guided by the principles of the GRI Universal Standards. The Company also applies the concepts of Double Materiality and a Multi-Stakeholder Approach to ensure a comprehensive evaluation of impacts. This includes consideration of positive and negative impacts of the Company’s operations on stakeholders, society, and the environment (outward impacts); and the potential financial and strategic implications of sustainability issues on the Company’s long-term value creation and business performance (inward impacts).

The assessment process is conducted through interviews and online surveys administered to selected external stakeholders using purposive sampling, as well as online surveys for internal stakeholders. The feedback obtained is analyzed quantitatively, with each issue evaluated based on the severity and likelihood of its potential impacts on both the Company and its stakeholders. The results are then plotted in a Materiality Matrix, where:

• The Y-axis represents the significance of environmental, social, and governance (ESG) impacts on stakeholders; and
• The X-axis represents the significance of ESG impacts on the Company’s business operations.

Based on this assessment, sustainability topics are classified into three levels of materiality:

• Very Critical: issues that have significant impacts on the Company’s sustainability performance and strategic objectives.
• Moderately Critical: issues that require appropriate management but are not considered critical.
• Less Critical: issues with limited impact that can be managed within normal business operations.

The results of the materiality assessment and prioritization are presented to the Chief Executive Officer for review to ensure alignment with the Company’s business context, strategic direction, and long-term objectives.

The Nomination, Compensation, Corporate Governance and Sustainability Committee is responsible for reviewing and endorsing the Company’s material sustainability topics, prior to submission to the Board of Directors for approval.