Double Materiality Assessment

  The Company identified the topics material to sustainability that may significantly impact the business operations, stakeholders, and long-term value creation. The process is aligned with the Global Reporting Initiative’s GRI 3: Material Topics standards and the double materiality approach, to cover both impact and business dimensions.

Scope of Materiality Assessment

The assessment process covers the operations of RATCH as the holding company, subsidiaries, and activities under the Company’s control or with significant influence at home and abroad. It takes into account impacts that may arise in the value chain, upstream to downstream.

Impact Assessment Methodology

The results of stakeholder engagement assessment are brought into the impact assessment process as shown below:

Prioritization and Examination of Material Issues

The Company prioritizes material issues in line with the impact materiality under GRI 3: Material Topics 2021 standards, to ensure the specified issues reflect significant impacts of the Company Group’s business operations on the economy, the environment, and society.

Impact-based Assessment Criteria

Each material issue is assessed according to:

Scoring and Threshold

The Company specifies the scoring system to support systematic exercise of discretion. The scores range from 1 to 5 for each criterion and material issues are prioritized accordingly to the total scores. Issues with high severity and/or scores in “High” level are identified as the organization’s material issues. The threshold is determined after the Management’s consideration and approval, for the alignment with the enterprise risk assessment criteria and the business context. Aside from the scoring mechanism, the Company deploys professional discretion in the consideration, taking into account the context of the electricity and energy industry, regulatory trends and stakeholder expectations.

Alignment of Stakeholder Engagement Process with Enterprise Risk Management

The scores are considered along with the issues coming from the stakeholder engagement process, the results of enterprise risk management (ERM) and operating results concerning greenhouse gas emissions, safety statistics and community complaints. The integration of information from various sources ensures the specified material topics reflect the dimensions of impacts and the Company Group’s strategic risks.