Materiality Assessment

1. Understand the Organization’s Context

The Company has comprehensively reviewed its organizational context across the entire value chain, from upstream activities including the exploration of investment opportunities and the development of energy, electrical system, and infrastructure projects; midstream activities including contractor procurement and management, equipment manufacturing and installation, as well as project construction; to downstream activities including system operation, maintenance, customer services, and the management of supply chains and related business partners. The review covers:

• Internal Factors: Derived from the business context, such as growth strategies, investment portfolios, personnel competencies, corporate governance discipline and organizational culture.
• External Factors: Such as clean energy trends, national energy policies, the transition toward renewable energy, digital technology and smart grids and environmental laws and regulations. This includes national and international sustainability standards such as CGR, SET ESG Rating, FTSE Russell ESG Scores, Corporate Sustainability Assessment (CSA), Global Reporting Initiative (GRI) Standards and International Financial Reporting Standards (IFRS), as well as climate change and natural disaster risks.

At the same time, the Company gathered key issues from the perspective of stakeholders, including issues of interest and stakeholder expectations, through communication, surveys, and engagement with all stakeholder groups. These include employees, suppliers, customers, competitors, shareholders and investors, the public sector, business partners, as well as communities and society. All information was then analyzed to identify and categorize sustainability issues that are aligned with the Company’s business direction and long-term growth objectives across 3 dimensions:

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 across all business activities in the value chain and at all operational sites, including activities by contractors, service providers, and joint venture partners. The impact identification covers:

• Economic performance and competitiveness
• Quality and stability of the electrical system
• Society, community, and human rights
• Occupational health, safety, and working conditions
• Environment and climate change

This process is conducted alongside a review of historical events, enterprise and project-level risk assessments, stakeholder feedback, and legal requirements/international standards to ensure the identified impacts are comprehensive, systematic, and aligned with the Company’s business nature.

3. Assess the Significant of the Impacts

The significance of the impacts is assessed and prioritized based on the Double Materiality principle, considering 2 dimensions:

• Impact Materiality (significance to stakeholders, society, and the environment). This dimension evaluates the severity of impacts based on the scale of impact, scope of impact, and irremediability, as well as the likelihood of the impact occurring. The assessment considers potential effects on stakeholders, society, and the environment.
• Financial Materiality (significance to the Company’s business performance and enterprise value). This dimension evaluates the financial implications of impacts on the Company, including potential effects on revenue, costs, and project return on investment (ROI) (scale), as well as impacts on operational performance, including competitiveness, business continuity, risk exposure, corporate reputation, and stakeholder confidence (scope). The likelihood of such impacts is also considered. Quantitative data is applied in accordance with the Company’s Enterprise Risk Management (ERM) framework.