Identification of Material Issues
Process of Identification of Material Issues
Understand the organization's context
Based on the five principles of the AA1000 SES (2015 edition), TXC has identified the six stakeholder groups, including employees, customers, investors, suppliers, public interest group, and government agencies, based on the list of stakeholders from the industry; these stakeholder groups were then discussed and confirmed by the Sustainability Committee. Collect and compile sustainability issues with a total of 10 issues of concern.
Identify actual and potential impacts
In order to set an industry model and to take into account the rights and interests of various stakeholders, TXC responses, formulates and implements action plans through various communication channels in the table below. We continue to communicate the results of the communication to stakeholders, collect and identify actual and potential impacts of various issues of concern, and provide feedback so that we can achieve the goal of sustainable development.
Assessing impact significance
Based on the actual and potential impact content and feedback of each issue of concern raised by various stakeholders and assess the degree of impact. Prepare important information that are agreed upon and ranked by the Sustainability Development Committee then rank the major topics for this year, and submit it to the Board of Directors.
Prioritize the most significant impacts
To prioritize the material topics for this report, we analyzed the degree of impact on each topic based on the "severity of impact on environmental protection, social responsibility, and corporate governance" and the "likelihood of occurrence", and then ranked the topics of this year's most significant impact to determine the material topics.
Analysis of material topics
Results of Analysis of Material Topics
For material topics this year, the Sustainable Development Committee ranked each topic by the total impact score (the total score of "Impact on Environmental Protection, Social Responsibility, and Corporate Governance" and "Likelihood of Occurrence"), and ranked them in descending order, as shown in the table below. In general, a total score of 216 was used as the threshold of materiality. After discussing other factors, such as operational impacts or customer requirements, three issues were excluded (with a total score of 216 or higher), and three issues were included (with a total score of less than 216), for a total of 15 material topics.
Material Topics and Boundaries
Material Topics and Boundaries
TXC has established management policies and planned action plans for major topics. The established goals and indicators were based on past data, strategies are formed and results are tracked regularly. For other non-major topics, relevant indicators and sustainable results would be disclosed to the stakeholders in accordance with current management processes and measures.
|
Item |
Metric |
Group of stakeholders |
Impact Aspect Analysis |
Description of materiality |
||||
|---|---|---|---|---|---|---|---|---|
| TXC |
External |
|||||||
|
Customers |
Shareholders/Investor |
Suppliers |
Government entities |
|||||
|
Energy and Resource Managements |
GRI 302 |
Direct |
Business |
Indirect |
Business | Indirect |
Negative potential impacts on environment |
The Company's sustainable development mainly addresses climate change, investing resources and manpower to reduce consumption of energy and resources (such as water) and to lower greenhouse gas emissions, in order to identify climate change risks and respond to impacts. |
|
Greenhouse Gas Emissions |
GRI 305 | Direct | Business |
Indirect |
Business |
Indirect |
Negative potential impacts on environment | |
|
Waste and Hazardous Substance Management |
GRI 306 | Indirect | Business |
Indirect |
Business |
Indirect |
Negative potential impacts on environment |
|
|
Climate Change Risks and Opportunitie |
Self-defined topic, TCFD |
Direct | Direct | Direct | Business |
Indirect |
Positive potential impacts on environment |
|
|
Human Rights Assessment |
Self-defined topics, SASB employee diversity and inclusion |
Direct | Business | Business | Direct |
Indirect |
Positive potential impacts on people |
TXC is committed to the principles of following labor laws and promoting labor rights and interests and adheres to the attitude of non-discrimination and respect for employees. The Company shares its achievements through a reasonable remuneration and benefits system and a perfect talent cultivation mechanism. Employees can thus build their self-worth, look after both their careers and their lives, identify with the Company’s vision and work with the Company to facilitate its vision in order to identify and respond to impacts. |
|
Talent Cultivation |
GRI 404 | Direct | - | - | - | - |
Positive potential impacts on people |
|
|
Workplace Health and Safety |
GRI 403 | Direct | Business | Business | Business |
Indirect |
Positive actual impact on people |
TXC actively fosters workplace health and safety awareness and regularly and properly implements comprehensive assessment measures with the spirit of continuous improvement to ensure the Company’s full adoption of occupational safety and labor health strategies in order to identify and respond to impacts. |
|
Service Quality and Customer Rights |
GRI 416 | Direct | Business | Business | Business |
Indirect |
Positive actual impact on people |
TXC regards honesty as its foundation and upholds the spirit of mutual trust and a responsible and truth-seeking attitude when it comes to quality. We take every product entering the market seriously, take into account the rights and feelings of every customer, and regard them as partners, in order to identify and respond to impacts. |
|
Operating Performance |
GRI 201-1 | Direct | Business | Business | Business |
Indirect |
Positive actual impact on company |
By building a sound governance structure, TXC can identify and control various risks and actively respond to various impacts to ensure the Company's continuous operations, pursue steady growth of operating performance, and realize the expectations of all stakeholders in order to identify and respond to impacts. |
|
Corporate Governance |
Self-defined Topics |
Direct | Business | Business | Business |
Indirect |
Positive actual impact on company |
|
|
Risk Control |
Self-defined Topics |
Direct | Business | Business | Business |
Indirect |
Negative potential impacts on company |
|
|
Legal Compliance |
Self-defined Topics |
Direct | Business | Business | Business |
Indirect |
Positive actual impact on company |
TXC strictly complies with legal requirements, actively promotes the concept of ethics and integrity, and takes maintenance of corporate Cybersecurity as our responsibility in response to the impact on governance and in order to identify and respond to impacts. |
|
Ethical Corporate Management |
GRI 205 | Direct | Business | Business | Business |
Indirect |
Positive actual impact on company |
|
|
Cybersecurity |
Self-defined Topics |
Direct | Business | Business | Business |
Indirect |
Positive actual impact on company |
|
|
Innovative Technology and Services |
Self-defined Topics |
Direct | Business | Business | - | - |
Positive actual impact on company |
Through the attitude of continuous improvement and considerable refinement, and the pursuit of sustainable development of products, innovative technology and services with an open mind, TXC has shaped the brand image and management in the minds of all stakeholders in order to identify and respond to impacts. |
Note: According to GRI Standards, the descriptions of the specific issue of impact boundary and evaluation on the correlation among key stakeholders are divided into three degrees of involvement: whether it directly causes this impact, causes the relevant impact together with other group, or is corelative to this impact through its business relationship.
