Identify stakeholders
After deliberating upon the experience of various departments and industry players and referencing the AA1000 Stakeholder Engagement Standards (SES), the Corporate Governance and Sustainability Committee identified six categories of stakeholders, namely shareholders, customers and trading partners, employees and labor union, suppliers and contractors, community and local groups, and central and local governments, based on five principles (i.e., dependency, responsibility, tension, influence, and diverse perspectives).
Collect and classify sustainability topics
Taking into account the context of sustainability, topics were mainly collected 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.
Conduct sustainability topic survey
We adopted the questionnaire method to conduct a survey on the topics of concern to our stakeholders and the material impact of the management team on our corporate sustainability, The results obtained from this questionnaire survey would be used as a reference for topic ranking. A total of 227 questionnaires were collected, including 209 stakeholder concern-related questionnaires and 18 impact-related questionnaires.
Identify material topics
Matrix analysis was conducted based on the scores for the level of stakeholder concern and the impact of the management team on our corporate sustainability for each topic. Upon discussion during a meeting held by the Corporate Governance and Sustainability Committee, a total of 13 material topics were identified, with their management approaches disclosed at the same time.
Formulate strategies and action plans
Our short-term (within one year), medium-term (within five years), and long-term (more than five years) strategic goals were formulated according to the results of sustainability topic analysis. Each responsible department was required to formulate action plans according to the aforesaid goals.
Conduct follow-up assessment and evaluation
Our short-, medium-, and long-term strategic goals are adjusted on a rolling basis each year. After each responsible unit reports their annual implementation outcomes to the Corporate Governance and Sustainability Committee, the outcomes will then be reported by the Corporate Governance and Sustainability Committee to the Board of Directors and included in the performance evaluation for managers. Actual performances related to the aforesaid goals have been disclosed in our previous reports.