Sustainable Management

Materiality and Stakeholder Communication

Procedure of Materiality Analysis

CTCI regularly conducts a materiality survey and systematic analysis on a yearly basis. In accordance with the framework of GRI 3: Material Topics 2021 in the GRI Universal Standards 2021 and incorporating the concept of double materiality set forth in the European Sustainability Reporting Standards (ESRS), CTCI has established an integrated assessment process covering both "impact materiality" and "financial materiality". With respect to impact materiality, CTCI has adopted international methodologies such as Value Balancing Alliance (VBA), Harvard Business School's Impact-Weighted Accounts Initiative, and Business for Societal Impact Framework (B4SI) and identified positive and negative external impacts in economic, environmental and human (human rights) dimensions in consideration of its business model and operational characteristics. Furthermore, through monetized and non-monetized assessments, CTCI has established a systematic assessment process. With respect to financial materiality, CTCI focuses on the level of impact of ESG topics on corporate operations and financial performance, integrates the results of IFRS S1 and IFRS S2 analyses, and conducts comprehensive assessments on diverse dimensions such as revenue, costs, capital expenditure, and risk exposure, to strengthen the financial relevance of material topics and enhance their value in supporting decision-making.
　
The materiality analysis process and results for 2025 were verified by SGS Taiwan in accordance with the AA1000 Assurance Standards v3 under Type 2, High Assurance Level.
　

Phase 1: Identification of Stakeholders and Topics

In accordance with the five core principles of the AA1000 Stakeholder Engagement Standard, CTCI has prioritized stakeholders based on their dependency, accountability, level of concern, influence, and diversity of perspectives and other relevant aspects, and identified six stakeholder groups, including shareholders/investors, suppliers/contractors/partners, customers, employees, media, and communities/government/experts/academic and professional associations as the basis for material topic assessment and stakeholder engagement. In response to evolving global and local sustainability trends, CTCI has established a dynamic topic identification process. The Company refers to international frameworks and assessment standards annually, including GRI Standards, SDGs, SASB, TCFD, and TNFD, as well as key topics identified by investment institutions and ESG rating agencies (including S&P Global ESG, MSCI ESG Ratings, and CDP), and continues to review and optimize its sustainability topics. In 2025, CTCI identified a total of 19 ESG topics as the basis for the materiality survey.
　
　

Phase 2: Materiality Survey and Analysis

CTCI takes into account "Stakeholder Concern Level," "Organizational Operation Impact," "Assessment of the IFRS Sustainability Disclosure Standards," and "Sustainable Development Impact" and lays a foundation for the analysis of material topics based on the results of the materiality assessment survey.
　

Financial Materiality

• Organizational Operation Impact: It measures the impact of sustainability topics on CTCI's operations, including revenue, customer satisfaction, operational risks, employee cohesion, and brand image. 27 senior management members jointly evaluated and determined the sustainability topics and judged the significance of each topic on CTCI's operations. The evaluation results indicated that "Corporate Governance and Integrity Management," "Risk and Crisis Management," "Net-Zero EPC and Green Engineering" and "Talent Attraction, Development, Engagement, and Retention" had a significant impact on CTCI's internal operations.
• Assessment of the IFRS Sustainability Disclosure Standards: It measures the positive and negative financial impacts of sustainability-related risks and opportunities on the Company. The assessment identified that topics such as "Corporate Governance and Integrity Management," "Innovative Technologies and Services," "Customer Service and Management," "Climate Strategies and Net-Zero Performance," "Net-Zero EPC and Green Engineering," "Waste Management," "Talent Attraction, Development, Engagement, and Retention," and "Safe and Healthy Workplace" had a significant impact on the Company's financial performance.

Impact Materiality

• Stakeholder Concern Level: With reference to the five core principles of the AA1000 Stakeholder Engagement Standard, CTCI defined six　major stakeholder groups and invited them to participate in the questionnaire survey. A total of 679 valid questionnaires were collected,　including 6 from shareholders/investors, 205 from　suppliers/contractors/partners, 9 from customers, 390 from employees, 12 from media, and 57 from communities/government/experts/academic and professio　nal associations. The survey results indicated that the top 5 topics highly　concerned by most stakeholders were “Corporate Governance and Integrity Management,” “Risk and Crisis Management,” “Safe and Healthy Workplace,” “Customer Service and Management,” “Information Security and Privacy Protection,” and “Net-Zero EPC and Green Engineering.”
• Sustainable Development Impact: CTCI adopts a hybrid assessment approach combining monetized and non-monetized methods. For the non-monetized method, CTCI integrates methodologies developed by the Value Balancing Alliance (VBA), Harvard Business School's Impact-Weighted Accounts Initiative, and Business for Societal Impact Framework (B4SI), and 28 department representatives and supervisors responsible for ESG affairs and projects identified items with significant impact as well as affected sustainability topics from the perspectives of economic, environmental, and human (human rights) impact. The assessment identified 12 significant impacts for CTCI, including 5 economic impacts, 4 environmental impacts, and 3 human (human rights) impacts; for the monetized evaluation, CTCI regularly conducts impact valuation and adopts a perspective of profit and loss to measure positive (benefits) and negative (costs) impacts directly or indirectly brought to human well-being, society and economy due to value chain activities. The assessment results indicated that topics such as "Net-Zero EPC and Green Engineering," "Innovative Technologies and Services," "Corporate Governance and Integrity Management," and "Sustainable Supply Chain Management" had a significant impact on CTCI's internal operations.

Phase 3: Screening and Confirmation of Material Topics

Based on the results of the Phase 2 assessment, and taking into account CTCI’s long-term sustainability goals and ESG issues linked to executive compensation, the findings were further reviewed with internal and external experts and submitted to the Group’s Sustainability and Net Zero Improvement Meeting. The Group Chairman subsequently confirmed 11 material topics, which were then reviewed and approved by the Board of Directors.
 

Phase 4: Boundary of Material Topics

After confirming the 11 material topics, CTCI identified a total of 16 topics, among which 13 were GRI Topic Standards and 3 were CTCI's self-defined topics. In accordance with the reporting requirements of the applicable standards, the Company collects and discloses internal information, data and management approaches, and reviews the scope of impact of material topics in CTCI's value chain one by one, including the impact on boundaries such as upstream procurement phase, the planning, design, construction and operation of CTCI, use by downstream customers, and society. The material topics identified by CTCI are included in the risk assessment work launched by the Risk Control Office every six months. Through risk identification, analysis and assessment as well as subsequent risk mitigation, control and monitoring, the Company implements the Enterprise Risk Management (ERM). 
　

Stakeholder Communication Channels