Materiality & Stakeholders
The Process of Materiality Analysis
According to the GRI3: Material Topics of GRI Universal Standards 2021, HIWIN has collaborated with the Value Balancing Alliance (VBA), the Harvard Business School’s “Impact-Weighted Accounts” research project, the London Benchmarking Group (LBG), and other institutions to develop methodologies for assessing economic, environmental, and social impacts. These methodologies have been used to establish a materiality analysis process based on impact. The purpose of this process is to identify the material topics for HIWIN, define the boundaries and scope for sustainability disclosure, and serve as the foundation for setting long-term sustainable goals.
Stage 1: Identify communication objects and topics
In Stage 1 of this process, the communication objects and topics for the sustainability report were identified. The AA1000 Stakeholder Engagement Standards (SES) principles of Dependence, Responsibility, Attention, Influence, and Multiple Perspectives were used as a reference. Through open discussions, the ESG committee members identified five types of stakeholders-employees, customers, suppliers / contractors, investors, and social groups - and ranked them based on their relationship with the company.
In line with the updated GRI Universal Standards 2021, as well as considering the UN Sustainable Development Goals (SDGs), international trends, and recommendations from external consultants, HIWIN has reevaluated and adjusted its ESG issues. After thorough discussions, a total of 23 ESG issues were identified as relevant to HIWIN’s operations.
Stage 2: Analysis of Material Topics
HIWIN conducts a materiality analysis for its 2022 sustainability report, examining three key areas of information: ” Stakeholder Perspectives, ” ” Operational Impact of HIWIN, ” and ” Sustainable Development Impact. ”
① Stakeholder Concerns: HIWIN has gathered the primary concerns of key stakeholders regarding the company’s sustainability initiatives. By applying the principles of interactivity, importance, and influence, we have identified the target audience for the survey, ensuring comprehensive data collection. In total, 315 valid questionnaires were obtained, comprising 214 from employees, 53 from suppliers / contractors, 9 from investors, 17 from customers, and 22 from social organizations.
② Operational Impact of HIWIN: The measurement of sustainability issues’ impact on HIWIN’s operations encompasses revenue growth, customer satisfaction, operational risk, and employee engagement. Furthermore, the significance of each sustainability issue on HIWIN’s operations is collectively determined by 37 senior executives.
③ Sustainable Development Impact: The economic, environmental, and social (human rights) impacts of sustainability issues are evaluated in this report. HIWIN employs a sustainability impact assessment methodology, taking into account factors such as positive/negative impacts, actual/potential impacts, irreversibility, and the value chain. A total of 31 executives and employees contribute to the identification of sustainability issues with significant impacts.
Based on the importance of ESG issues in three areas – “ Stakeholder Perspectives, “ “ Operational Impact of HIWIN, “ and “ Sustainable Development Impact, “ HIWIN has identified 15 ESG issues. The selection principles are as follows:
Stage 3: Identify and Disclose Material Topics
Based on the materiality analysis results, HIWIN has identified 10 ESG topics as its major issues, which have been confirmed by internal senior executives and the president. Among these, ” Innovation Management ” has been revised to ” R&D Innovation Management, ” and ” Green Products ” has been revised to ” Sustainable Products. ” ” Talent Attraction and Retention ” and ” Talent Capital Development ” have been consolidated into ” Talent Attraction and Retention, ” while ” Customer Relationship Management ” and ” Brand Management ” have been consolidated into ” Customer Relationship and Brand Management. ” Additionally, three new material topics, namely ” Strategies for Climate Change & Energy Management, ” ” Water Stewardship, ” and ” Waste Management & Recycling, ” have been added. It is important to note that topics such as ” Financial Performance, ” ” Corporate Governance, ” ” Compliance with regulations, ” and ” Risk Management ” are considered general disclosure and result-oriented, and therefore not included in the major issues. However, relevant information pertaining to these topics will still be included in the report. Furthermore, each significant ESG issue has been carefully examined to assess its impact across the upstream, company operations, and downstream boundaries of HIWIN’s value chain. In accordance with the reporting requirements of the GRI guidelines, relevant internal information, data, and management policies will be collected and disclosed.
Stakeholder Communication Channels