Material Topic Analysis

Taking into account the context of sustainability, we primarily collected topics based on the 34 topics listed in the GRI Standards published by the Global Reporting Initiative (GRI), along with topics in the G4 Mining and Metals Sector Supplement and SASB’s provisional standards for resource transformation industries, including the chemical industry, the MSCI petrochemical industry, and the MSCI bulk chemical industry, as well as other industry players’ own topics. In the end, a total of 32 sustainability topics were identified and used as the basis for questionnaire design. The questionnaire method was adopted to conduct a survey on the topics of concern to stakeholders and the material impact of the management team on our corporate sustainability. After performing cross-analysis on the questionnaire data, the topics were ranked according to the analysis results. Upon discussion during a meeting held by the Corporate Governance and Sustainability Committee, a total of 13 material topics were identified while a materiality matrix was drawn. Our management approaches to these topics were also disclosed at the same time. Compared to the previous year, four new material topics, namely “Energy,” “Operational Safety and Emergency Response,” “Customer Privacy and Information Security,” and “Sustainable Supply Chain Management,” were added in 2021, such that our material topics were more in line with government regulations and international sustainability trends.

Materiality Matrix

Explanation on material topics

Material topics	General topics
1Air Pollution	3Chemical Safety	27Social Engagement
2Carbon Emissions	4Ethical Corporate Management	28Market Presence
5Occupational Safety and Health	7Product Quality and Safety	29Marketing and Labeling
6Energy	13Patents	30Procurement Practices
8Legal Compliance	15Climate Change Response	31Biodiversity
9Operational Safety and Emergency Response	16Corporate Governance	32Public Policy
10Economic Performance	17Materials
11Customer Privacy and Information Security	18Alternatives to Fossil Fuels
12Waste Management	19Labor-Management Relations
14Water Resources	21Clean Technology Opportunities
20Employment	22Product Design
23Training and Education	24Taxes
25Sustainable Supply Chain Management	26Human Rights Management