Materiality Assessment
Materiality Assessment Process
1. Understand the Organization’s Context
The Company reviews the organization’s context throughout the entire value chain, from upstream activities to downstream. This includes relationships and business linkages, sustainability contexts related to internal and external factors, as well as the needs, expectations, and concerns of stakeholders involved in the Company’s operations. It also takes into consideration global trends and directions in the same industry sector to determine sustainability topics, which are categorized into 3 areas:
3 Main Areas
Economic and good governance
Social
Environmental
2. Identify Actual and Potential Impacts
This step involves identifying both actual and potential impacts of sustainability issues, both positive and negative, that may occur in the economic, social, and environmental spheres. These impacts are considered across all business activities in the value chain through a process of stakeholder engagement with both internal and external parties.
3. Assess the Significant of the Impacts
The significance of the impacts is assessed and prioritized by scoring based on the severity of the impact and the likelihood of occurrence. This includes the size, scope, and potential response capacity to mitigate the impact, both from the perspective of stakeholders and the business itself.
4. Prioritize the Most Significant Impacts for Reporting
This step involves prioritizing the impacts according to their significance, ensuring that all significant issues are thoroughly reviewed for accuracy and completeness. These issues are then presented to a working group for organizational development towards sustainability. After passing the review, the issues are submitted to the Good Corporate Governance and Sustainable Development Committee, and the Board of Directors for approval. A sustainability action plan is developed, along with an organizational risk management plan, which is approved by senior management. The CEO serves as the chairperson to approve the actions to meet stakeholder expectations and ensure continuous development.
Materiality Matrix
The Company has been reviewed and evaluated a sustainable key issue in every year. In 2024, it was found that there were 13 significant sustainability issues divided into a highly significant 4 issues, high significant 4 issues, medium significant 2 issues, and low significant 3 issue as the following:
We care Business
We care People
We care Social
Material Issues
Highly Significant (VH)
- 3 Sustainable Supply Chain Management
- 8 Employee Attraction and Retention
- 9 Products and Services Responsibility
- 13 Climate Change Adaptation
High Significant (H)
- 2 Crisis and Risk Management
- 4 Innovation Development
- 5 Occupational Health and Safety
- 7 Holistic Employee Development
Medium Significant (M)
- 1 Good Corporate Governance and Business Ethics
- 10 Value Creation for Society
Low Significant (L)
- 6 Labor and Human Rights Management
- 11 Waste Management in Production Processes
- 12 Biodiversity