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Evaluation process
Sunon's Sustainable Development Committee, based on the Company's operating activities, industry type, and impact generated by the value chain, identifies sustainability topics that have a significant impact on stakeholders through stakeholder engagement and expert consultant consultation every year, in accordance with the materiality principle in the 2021 version of GRI 3. The chairman of the Sustainable Development Committee decides on the key sustainable topics for the period and reports the aforementioned material topic identification results to the Board of Directors. The detailed assessment process is as follows:
Step1
Identify key risks and opportunities
(1) Summarize industry attributes: Inventory the Company's business items, business model, product or service type, industry type, worker type, etc., and analyze all industry attributes related to the Company.
(2) Identify sustainable topics: In addition to incorporating actual major positive and negative events that have occurred in the past, the Company also considers potential risks or opportunities through stakeholder communication feedback, global norms and standards (Global Risk Report, United Nations Sustainable Development Goals, TCFD and SASB, etc.), industry norms and standards, and peer benchmarking companies, in order to fully inventory sustainable topics related to the Company. A total of 25 sustainability risks and opportunities were identified during this reporting period.
Step2
Determine material topics
(1) Stakeholder Feedback: We use questionnaires to engage with the Company's senior executives, Sustainable Development Committee, experts and external stakeholders to comprehensively evaluate the "impact degree" and "likelihood of occurrence" of each sustainability risk and opportunity. In 2023, a total of 333 questionnaires were collected; among them, 308 valid questionnaires were included in the calculation, with 26 and 282 internal and external questionnaires respectively.
(2) Assess impact degree:Assessed and calculated based on the three aspects of the severity of the event, the scope of the impact, and reversibility of negative impact.
(3) Assess likelihood of occurrence: Calculated based on the probability of the impact occurring.
(4) Rank and determine material topics: After calculating the impact degree and likelihood of occurrence of each risk and opportunity, the teams under the Sustainable Development Committee jointly set the materiality threshold scores for these two indicators, screen the material topics for the period, and report to the chairman of the Sustainable Development Committee for discussion and resolution of the material analysis results.
The threshold for impact degree and likelihood of occurrence this year is 2.8 points, so there are 8 material risks and opportunities this year, corresponding to individual ESG material topics.
Step3
Material topic information reporting
The executive secretary of the Sustainable Development Committee determines the international standards corresponding to the material topics, reviews the management policies and objectives of the material topics, collects annual data, and ensures that all important sustainability information is fully disclosed in this report to fully respond to the topics of concern to stakeholders. After the annual sustainability report is completed, the chairman of the Sustainable Development Committee reviews the report content again and finalizes it to ensure that there are no concerns about inappropriate or untrue statements in the disclosed information.
Step4
Continuous review
Regularly review the implementation of material topic policies and target achievement rate every year to optimize internal management guidelines and qualitative and quantitative targets; and compare the topic differences between the previous and current periods after the material topic identification of the next period, investigate the reasons for the differences, and report them in the report.
Note: Impact degree refers to the degree of impact of the impact event on Sunon and on stakeholders; likelihood of occurrence refers to the probability of the impact event occurring.
Significant issues corresponding to
| Impact Event (Risk/Opportunity Item) | Corresponding Material Topic | Corresponding Chapter in Report | ||
|---|---|---|---|---|
| Greenhouse gases | Greenhouse Gas Emissions | 4.3 Emission Monitoring | ||
| Energy | Energy Management | 4.2 Energy Management | ||
| Raw material usage | Raw Material Management | 4.1 Material Management | ||
| Product Quality and Safety | Product Quality and Safety | 3.2 Product Health and Safety | ||
| Economic Performance | Economic Performance | 2.3 Operational Performance | ||
| Risk response measures | Risk response measures | 2.7 Risk Management | ||
| Ethical standards | Ethical standards | 2.4.1 Ethical Management | ||
| Legal Compliance | Legal Compliance | 2.4.3 Legal Compliance | ||
Compared with the results of the previous material topic identification, this year there is a significant increase in governance topics (economic performance, risk response measures, ethical standards, legal compliance); Product quality and safety is also a new material topic this year, which was included in the material topics in 2021; As for the previous green product development, green procurement, climate change, talent recruitment and retention, career development and training, and waste, they are not included in the material topics this year, but the existing management procedures will be maintained, and the business strategies will be optimized regularly according to the actual business situation and international trends.