HLC conducts its materiality analysis in accordance with the GRI Standards 2021, the AA1000 Stakeholder Engagement Standard (SES), and the AA1000 Accountability Principles Standard (APS) to identify HLC’s material sustainability topics. The Company also establishes management approaches and develops medium- and long-term targets as the basis for promoting sustainability. Through the material sustainability topic assessment process, the Company seeks to build internal consensus. Stakeholder Engagement HLC identifies six main categories of stakeholders using the five principles (Dependency, Responsibility, Influence, Diverse Perspectives, Tension) of the AA1000SES. HLC considers issues of concern to stakeholders and comprehensive engagement to understand the issues and various stakeholders’ needs, to facilitate effective communication through diverse channels. The Company has established a “Stakeholder Section” on its corporate website, providing diverse communication and feedback channels for stakeholders, including employees, shareholders, customers, suppliers, government agencies, and the general public. Relevant feedback and complaints are handled, responded to, and tracked by the responsible units to ensure the effective operation of the communication mechanism. In accordance with the AA1000 Stakeholder Engagement Standard (SES) and the management spirit of GRI Material Topics, the Company regularly conducts stakeholder engagement and material topic identification. Through questionnaire surveys, internal and external feedback collection, and management discussions, the Company identifies material sustainability issues relevant to its operations and assesses their impacts on the economic, environmental, and social (including human rights) dimensions. The results of stakeholder engagement, material topic identification, and risk assessments are submitted to the Sustainable Development Committee and the Board of Directors for review, serving as crucial decision-making bases for corporate governance, risk management, and sustainability strategies. Furthermore, through mechanisms such as shareholder meetings, institutional investor conferences, and the Sustainable Development Committee, the Board of Directors stays informed of stakeholder concerns and the Company’s responses, continuously overseeing the management performance of key sustainability topics.
Process for Determining Material Topics HLC follows the principles of materiality set out in GRI 3: Material Topics 2021 to collect, consolidate, and define the content and scope of its material topics, taking into account impacts on the economy, environment, and people, including human rights. Through the GRI 3 “Process for Determining Material Topics” (which includes continuous identification and assessment of impacts, and determining material topics for reporting), we identify issues with a significant impact on HLC. These are then discussed internally by representatives from operational management units, who then set short-, medium-, and long-term sustainability targets. Relevant actions are subsequently integrated into our operational activities. Sustainability Topic Analysis Process Materiality Matrix