Chang Hwa Bank|Corporate Social Responsibility-Material Topics Analysis

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Stakeholder Engagement & Material Topics Analysis

In order to promote the Bank's core concept of sustainable development, the Bank actively established a smooth and diversified communication channel, engaged all parties to understand and respond to the expectations of various stakeholders, and refined the Bank's operation management measures and engagement process through the engagement results, so as to facilitate sustainable operation and development.
The Bank ceaselessly maintains good communication with stakeholders, conducts identification of stakeholders, analysis and identification of material topics every year, and the materiality assessment process and identification results of major topics are verified by a third-party independent assurance provider. The communication with various stakeholders, and identification results, targets and implementation of major topics are reported to the Board of Directors every year.

Through a questionnaire, the business management units of the Bank followed the five major aspects of the AA1000 Stakeholder Engagement Standard: impact, attention, responsibility, dependence, and diverse perspectives to identify communities which have material connections and impact with the Bank. In 2023, the results of stakeholder identification were divided into seven categories of competent authorities, customers, employees, investors, media, suppliers, community and non-profit organizations (NPOs)/non-governmental organizations (NGOs).
Referring to the relevant guidelines on material topic of GRI 2021, the Bank reviewed its own operational activities, the context of sustainable development, future work plans, value chain relationship and the opinions of stakeholders, such as stakeholders' questionnaires, customer/employee satisfaction surveys, questions from shareholder meetings and investor conference, opinion exchange channels, attributes of customer complaints, etc., and referred to international sustainable development trends and standards (such as SDGs), industry focus orientation, etc., to extensively collect sustainable topics that may be involved in the Bank's operations in multiple ways, aggregating a total of 23 topics.

The Material of External Impact on Society and Environment

The Bank reviewed and updated the "Degree of Impact" and "Probability" based on the identification results of material topics in the previous fiscal year (2022), using the information and data of multiple due diligence indicators and re-ranked the material of the topics based on the actual or potential, qualitative or quantitative, financial or non-financial, positive and negative impacts on society and environment that may be caused during the operation, and assign the weight on "Degree of Impact" of human rights impact, taking into account practical operation and engagement with various stakeholders (including customer and employee questionnaires and various communication channels), reasonableness of results, and opinions from external professional consultants to complete the significance identification.

Matrix of Impact on Society and Environment (Negative and Positive)

The Material of Internal Impact on the Business

In addition to emphasizing the sustainable impact on society and the environment, we continuously enhance the resilience of our operations towards sustainable development by linking issues with sustainable impact to potential operational impacts and risks. By considering 16 types of operational risks through risk appetite, we assess the impact of sustainability themes on financial-related risks such as capital, revenue and profitability, market strategy, personnel and organization, and reputation. We conduct financial materiality analyses of operational impacts, incorporate the identification results into overall risk monitoring and management, and timely establish and adjust daily business decision-making processes.

Double Materiality

The following chart shows the Bank's 2023 double materiality matrix based on the "Operating Impact" (X-axis) and "Sustainability Impact" (Y-axis):

The Topics of Double Materiality and the Countermeasures