ViTrox conducts materiality analysis annually to track trends and changes in ESG topics, collecting stakeholders’ expectations and feedback through diverse communication channels to identify material issues. Based on the materiality analysis outcomes, we realign sustainability targets and strategies for planning and reallocating resources into ViTrox’s material matters.
Our method takes into account stakeholder concerns, operational impact and the broader implications on the economy, environment and people. To facilitate this process, we have implemented a 4-stage materiality analysis.
The illustration below summarises our materiality analysis process:
| Identification of Sustainability Matters |
|
- Identify, gather and consolidate the relevant inputs from discussions and interviews with our internal stakeholders, such as employees and representatives of different functional departments who frequently engage with the external stakeholders
- Benchmark best practices from industry peers, taking notes of changes since the last materiality analysis
- Research sustainability trends and review global initiatives and frameworks to produce an initial list of potential sustainability topics
|
|
| Categorisation and Prioritisation of Sustainability Matters |
|
- Assess the materiality level of each sustainability issue by different managers of business units
- List out stakeholders relevant to the Group, assess the impact of each ESG topic on the Group’s operations and the degree of influence from the stakeholders’ decision-making process and their expectations
- Apply the concept of double materiality by considering factors impacting the operation of the Company, such as “revenue/ cost”, “reputation/legal compliance”, “customer satisfaction” and “employee engagement”; assess the impact on sustainable development, considering “economic impact”, “environmental impact” and “people impact”
- Prioritise the importance of each sustainability issue based on 2 key criteria: external stakeholders’ concerns and the impact on the economy, environment, people and operations
- Identify ESG topics to our business by analysing internal documents and processes, peer reviews and Risk and Opportunity (“R&O”) register on ESG matters
- Review the R&O periodically as part of our risk assessment to ensure our sustainability practice addresses our key ESG concerns
- To secure the R&O register to comply with legislative requirements and industry best practices while addressing stakeholders’ interests
|
|
| Review and Validation |
|
Review existing Group policies, related compliance requirements, R&O registers and examine sustainability trends in the industry sector and the reporting practices of peer companies |
|
| Endorsement |
|
ESC reviews and the Board approves the materiality analysis |
Through our materiality assessment process, we identified 15 material matters as illustrated in the materiality matrix below.
Materiality Matrix
Notes:-
- 1 Stakeholders scored differently in their degree of concern and influence for each issue. (10 points = highly concerned, 8 points = concerned, 6 points = somewhat concerned, 4 points = mildly concerned, 2 points = not concerned)
- 2 ViTrox ESG representatives score for impact on economy, environment, people and ViTrox’s operations.(10 points = highly impacted, 8 points = impacted, 6 points = moderately impacted, 4 points = not much impacted, 2 points = not impacted)
- 3 Impact factors include “revenue/cost”, “reputation/legal compliance”, “customer satisfaction”, “employee engagement”, “economic impact”, “environmental impact” and “people impact”.
Explanation of differences from the 2022 Materiality Matrix:-
- To ensure the utmost objectivity in our results, ESC took responsibility for relooking into the impact assessment. At the same time, the main concerns of the international ESG rating agencies regarding the semiconductor industry and our sustainability strategy were included for discussion and consideration. As such, there are differences between the 2023 and 2022 results.
- Compared to last year, “Environmental Conservation and Preservation” has surged in position within the materiality matrix. Conversely, the significance of “Corporate Governance and Ethical Practices” has experienced a decline. Additionally, the impact of “Employee Well-being” on the economy, environment, people and operations has witnessed a notable increase compared to the preceding assessment period.
We categorised our sustainability matters according to the ESG pillars as follows:-
| Our Environmental Endeavour |
|
Our Social Involvement |
|
Our Governance Management |
| Material Topics |
- Climate Change and Energy Management
- Environmental Conservation and Preservation
|
|
- Employee Well-being
- Human Rights
- Talent Attraction and Retention
- Talent Development
- Workplace Health and Safety
|
|
- Corporate Governance and Ethical Practices
- Economic Performance
- Innovation and Product Excellence
- Supply Chain Management
|
| Secondary Topics |
- Waste Management
- Water Management
|
|
- Community Engagement
- Diversity and Inclusion
|
|
|
Learn More
