PAIHO ESG

Management of Material Topics

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Step1

Understand the Corporate Sustainability Roadmap

The Company conducted its materiality assessment based on the 31 topics outlined in the GRI Standards, while also taking into consideration industry-specific issues in the domestic and international textile sector, the United Nations Sustainable Development Goals (SDGs), SASB topics, the Taiwan Stock Exchange (TWSE) Industry-Specific Sustainability Disclosure Indicators, and stakeholder concerns. Ultimately, 20 key sustainability topics were identified to ensure the completeness and relevance of the report content.

Step2

Evaluate the Issues and Identify Actual/Potential Impacts

1. Identification of Actual and Potential Impacts
   In accordance with the disclosure requirements of GRI 3: Material Topics 2021, the Company’s Sustainable Development Committee functional team conducted a risk scenario analysis for various sustainability topics to identify the actual and potential impacts of each risk.
2. Stakeholder Concern Survey
   In 2024, a total of 261 questionnaires were collected. The results were used as a key parameter in the materiality assessment process.

Step3

Assess Impact Significance

Based on the average scores derived from the internal and external impact assessments of 20 sustainability issues, expert evaluations provided by sustainability consultants, and the level of stakeholder concern, the issues were ranked in descending order. A threshold was then established to determine the material sustainability topics.

Step4

Priority Reporting on High Significance Topics

Sustainability issues with a Composite Materiality Score above the average threshold were used as a reference for prioritizing reportable topics. Following a comprehensive review by the Sustainable Development Committee’s functional team, in collaboration with relevant departments and based on the Company’s actual operating context and strategic direction, five sustainability issues were identified as material topics for the reporting year. These are: Economic Performance, Innovation, Research and Technology, Sustainable Supply Chain Management, Occupational Health and Safety, and Product Health and Safety. Taiwan Paiho discloses its management approaches for each topic and continues to address stakeholder expectations through proactive management and goal setting. Compared to the previous year, there were no significant changes in the material topics.