Materiality and Stakeholder Communication
Materiality and Stakeholder Communication
Procedure of Materiality Analysis
CTCI regularly conducts materiality analysis every year based on the GRI 3: Material Topics 2021 framework of the GRI Universal Standards 2021, in addition to a mix of methodology that are used to assess the impact on the environment and the society, which are drawn from institutions such as the Value Balancing Alliance (VBA), Harvard Business School's "Impact Weighted Accounts" research program, and the London Benchmarking Group (LBG). CTCI then constructs an impact-based materiality analysis procedure for identifying major issues in CTCI, determines the boundaries and scope of sustainable information disclosure, and uses it as the basis for setting sustainable long-term goals.
Stage 1: Identify Target Audience and Issues for Communication
When determining the target audience of the sustainability report, CTCI refers to the five principles of the AA1000 Stakeholder Engagement Standards (SES): Dependence, responsibility, attention, influence, and diverse perspectives. Through open discussions, 10 types of stakeholders were identified by members of the ESG and Net Zero Committee and ranked according to their level of relationship with the Company, including investors, suppliers, contractors, customers, government, employees, media, experts and scholars, community, and partners (co-contractors).
In response to the version of the GRI 2021 general guidelines and in line with the United Nations Sustainable Development Goals, international trends, and external consultant recommendations, the Company has rediscussed and adjusted ESG issues. At last the Group collected a total of 20 issues related to the operation of CTCI. Compared to the previous year's ESG issues, CTCI changed "Climate Change and Energy Efficiency," "Resource and Waste Management," and "Social Impact" to "Climate Change and Net Zero Effectiveness," "Resource and Waste Management," and "Social Impact Enhancement." The Group also deleted "Environment Management".
Stage 2: Analyze Material Issues
CTCI conducts a materiality analysis of the 2022 sustainability report on "stakeholder attention," "CTCI operational impact," and "sustainable development impact."
● Stakeholders' Attention： CTCI collects the attention of major stakeholders to the sustainability actions promoted by CTCI, and determined the subjects of the survey on the principles of interactivity, importance, and influence. The Group's purpose is to collect representative samples. At last, CTCI collected a total of 532 valid surveys, including 332 from employees, 65 from suppliers, 51 from contractors, 2 from investors, 11 from customers, 7 from the government, 8 from scholars and experts, 9 from the media, 35 from the community, and 12 from partners (co-contractors).
● CTCI business impacts: The Group assessed the impact of sustainability issues on CTCI's operations, including revenue, customer satisfaction, operational risk, employee engagement, and brand image. The importance of each sustainability issue to CTCI's operations was determined by 29 supervisors.
● Sustainable development impacts: CTCI determined the significance of sustainability issues in terms of economic, environmental, and human (human rights) impacts. Based on the methodology of sustainability impact evaluation, 23 supervisors and employees were involved in identifying significant impacts and sustainability issues from perspectives such as positive and negative, actual and potential, irremediability, and value chain.
#[B|Stage 3: Determine Major Issues and Disclosures]
Based on the materiality analysis, 11 ESG issues have been determined by the Board of Directors as material issues for CTCI. The Group also evaluated the impact scope of each major ESG issue on the upstream, company operations, and downstream boundaries of the CTCI value chain. Based on the GRI guidelines, 13 major themes were identified (12 were GRI-related, and 1 was customized by CTCI). To meet the reporting requirements, CTCI collected and disclosed internal information, data, and management policies.
Material Issues and the CTCI Value Chain
2021 Communication with Stakeholders
