Materiality Topics

The Company recognizes that identifying and managing material sustainability topics is a critical foundation for driving responsible business operations and creating long-term value. To ensure that operations in governance, social and environmental dimensions achieve sustainable development goals, respond to stakeholder expectations and are measurable, the Company regularly conducts collection, assessment, and prioritization of material topics (Materiality Assessment). Reviews and assessments are conducted every two years through the participation of relevant internal and external stakeholders to ensure appropriate and effective management of these topics. The assessment encompasses both Impact Materiality to analyze positive and negative impacts on people, the environment and society from operations throughout the value chain, and Financial Materiality to assess sustainability risks and opportunities that may affect the Company's financial performance and position

Materiality Assessment Process (GRI 3-1)

In 2025, the Company conducted the selection and assessment of material sustainability issues based on the Double Materiality concept under the Corporate Sustainability Reporting Directive (CSRD) of the European Union, which requires qualifying companies to report sustainability performance according to the new European Sustainability Reporting Standards (ESRS). The assessment also referenced GRI Standards and UN Sustainable Development Goals (UNSDGs) to ensure alignment with international sustainability reporting guidelines. The evaluation covered impacts on the economy, society, and the environment, as well as their overall significance to the business.

The materiality assessment comprises four key steps:

Understanding the Organizational Context Impact Materiality Financial Materiality Prioritizing Significant Impacts for Reporting
Defining the scope of business activities and value chain
  • Activities: Identification of core business operations and their linkages across the value chain.
  • Context: Review of industry trends, regulatory developments, ESG standards, and sustainability rating agencies such as S&P Global, EcoVadis, MSCI, and FTSE Russell.
  • Stakeholder Engagement: Identification of affected stakeholders, analysis of stakeholder interests, and annual collection of expectations and feedback through online surveys.
 Assessment of the Company’s actual and potential impacts on people, the environment, and human rights. (Inside-out)

Negative Impacts ( - )

  • Evaluation of severity based on Scale, Scope, Irremediable Character, and Likelihood.
  • Identification of actual impacts and potential future impacts.

Positive Impacts ( + )

  • Assessment of beneficial impacts using Scale, Scope, and Likelihood.
  • Identification of actual and potential positive contributions to society and the environment.
 Assessment of sustainability-related risks and opportunities that may influence business performance, development, or financial position. (Outside-in)

Risk

  • Assessment of risks that may affect financial outcomes and stakeholder confidence, including short-, medium-, and long-term impacts.
  • Use of financial data and relevant statistics to determine materiality thresholds.

Opportunity

  • Assessment of opportunities that may enhance financial performance, growth, competitive advantage, or corporate reputation, including short-, medium-, and long-term impacts.
  • Evaluation using financial indicators and business opportunity analysis to determine significance.
 Final prioritization of material topics under the Double Materiality approach for management and disclosure.
  • Consolidation of material topics from both Impact and Financial Materiality assessments.
  • Reviewed and validated by the Sustainability Development Working Committee, endorsed by the Corporate Governance and Sustainability Development Committee, and approved by the Board of Directors for disclosure.
  • Independent third-party assurance of the assessment process and outcomes.

Prioritization of Material Sustainability Issues Based on Double Materiality is as follows:

19 Material Topics and Their Significance in Each Dimension (GRI 3-2)

No. Material Topics Impact Materiality Financial Materiality Double Materiality
Corporate Governance and Economic Dimension
1 Sustainable Supply Chain Management ✔ ‒ ‒
2 Good Corporate Governance and Anti-Corruption ✔ ✔ ✔
3 Research Development and Innovation ‒ ‒ ‒
4 Risk Management and Business Continuity ‒ ‒ ‒
5 Artificial Intelligence ‒ ‒ ‒
6 Cybersecurity and Data Privacy ✔ ✔ ✔
Social Dimension
7 Occupational Health and Safety in the Workplace ✔ ‒ ‒
8 Human Rights and Non-Discrimination ✔ ✔ ✔
9 Workforce Management and Human Capital Development ‒ ‒ ‒
10 Customers Relationship ‒ ‒ ‒
11 Support and Participation with the Community ‒ ‒ ‒
12 Product Quality and Safety ✔ ‒ ‒
Environmental Dimension
13 Climate Strategy ✔ ✔ ✔
14 Energy Management ✔ ✔ ✔
15 Water and Effluent Management ‒ ✔ ‒
16 Air Quality Management ‒ ‒ ‒
17 Consideration of Ecosystems and Biodiversity ‒ ‒ ‒
18 Waste Management ‒ ‒ ‒
19 Environmental Management Systems ‒ ‒ ‒