Material Issues

E.SUN identify material issues by latest GRI Universal Standards 2021 and AA 1000 Account Ability Principle Standard, including the principles of materiality, inclusiveness, responsiveness, and impact, to identify material issues. We further assessed the impact of each material issues on the economy, environment, and human rights. These materiality is the basis for planning our sustainable development strategy, and also the basis for information disclosures.

■ Implementation Steps

1. Confirming Organizational Connections

Determine organizational connections based on E.SUN's operating scope and business scope.

2. Focus on sustainability issues

21 sustainability issues

Referencing international sustainability standards and guidelines (GRI Standards, SASB, SDGs, GRI Financial Services Sector Supplement, ISO 26000, TCFD), sustainability investment ratings (DJSI, CDP, MSCI), domestic and foreign financial industry cases, and stakeholder communication processes, the office of CSO has compiled and listed 21 sustainability issues.

3. Identify stakeholders

7 major stakeholder groups

Following the five dimensions of the AA1000SES Stakeholder Engagement Principle (AA1000 Stakeholder Engagement Standard): influence, attention, responsibility, dependency, and diversity, 18 internal units were sent stakeholder identification questionnaires. The results were compiled and approved by the office of CSO, and classified into 7 stakeholder groups: employees, customers, shareholders/investors, government agencies, media (including rating agencies), communities (surrounding communities, public welfare and environmental partners), and suppliers.

4. Analyze operational impact

The 'Sustainability Issue Impact Assessment Form' was sent to the 18 units (same as the stakeholder identification units), asking each unit to evaluate the 21 sustainability issues based on the six dimensions (increasing revenue, reducing costs, improving customer satisfaction, enhancing brand image, reducing operational risks, and stimulating innovation opportunities). The evaluation results serve as a reference for the impact level of the issues.

5. Analyze economic, environmental, and social impacts

The 'Economic, Environmental, and Social Impact Assessment Form' was sent to the relevant units for the 21 sustainability issues, asking them to evaluate the positive or negative impacts on the economy, environment, and people caused or received by E.SUN's business activities/products/services, etc. The evaluation results were compiled by the office of CSO.

6. Assessing impact significance

The office of CSO comprehensively considers the results of Step 4 operational impacts and Step 5 economic, environmental, and social impacts, setting impact significance thresholds.

7. Confirming material Issues

13 material Issues 11 GRI themes

Based on the impact significance thresholds, the office of CSO has identified 13 material Issues for 2022 from 21 sus-tainable issues, which have been reported to the Sustainable Development Committee and the Board of Directors.

Disclosure in the report: In accordance with GRI reporting requirements, this report explains the rationale, short-medium-long term goals, results, and management approaches for material Issues. The 13 material Issues for 2022 cover 11 GRI themes, including 9 GRI standard themes, 1 general disclosure themes, and 1 GRI G4 financial industry sup-plementary indicator consideration aspect and 1 customized theme.