Stakeholder Communication
Materiality Analysis Process
3 Key Points of Material Topic Identification
01 Optimize evaluation indicators
Assess the materiality of topics based on the ‘degree of impact’ and define the method for calculating the impact index.
02 Focus on key stakeholders
Select key stakeholders closely related to Phihong to participate in the survey, enhancing the materiality of the identification results.
03 Incorporate into industry standards
Incorporate sustainability issues from industry
standards into the identification process and review
material topics according to these standards.
STEP 1: Identify Organizational Context and Stakeholder
Collect organizational context
Source of topics: Sustainability standards and regulations (GRI, SASB, RBA, TCFD, CDP, etc.), United Nations Sustainable Development Goals (SDGs), and stakeholder concerns. These are consolidated into 17 main topics to investigate stakeholder concerns.
Identify stakeholders (inclusiveness)
Based on the principles of “dependence, responsibility, influence, diverse perspectives, and tension”, define 7 major categories of stakeholders, and identify key stakeholders closely related to or having significant impact on Phihong as the primary communication Targets.
STEP 2. Impact Analysis
Evaluate the impact (materiality) of the 17 topics
Evaluate the impact of sustainability topics on the group’s operations, with a total of 32 sustainability team members and supervisors participating.
Outside-in
Assess the impact and likelihood of sustainability
topics on the external economy, society, and human rights.
Inside-out
Feedback
・Impact Level
・Potential Issues
Stakeholder Concerns Survey
529 valid questionnaires from key stakeholders Including employees (270), investors (39), non-profit organizations (6), customers (25), suppliers (165), and the community (24)
STEP 3. Establish and disclose material topics
Establish 11 material topics
Consolidate the perspectives of the sustainability team and external stakeholders, review the identification results of material topics, and confirm compliance with sustainability context and integrity disclosure requirements, and then submit for board approval.
Respond to stakeholders (responsiveness, impact)
Adhere to integrity, accuracy, and comparability in disclosure information to enhance the quality of reporting.
STEP 4. Regularly review and continuously improve
Establish management policies and goals for highly material topics, and review them monthly.
Conduct a materiality identification process annually to assess the impact severity of topics.