ESG at CDF
The global environmental crisis is a challenge we are duty-bound to address. Our five sustainable management strategies represent not just a pledge but also essential goals we are committed to achieving.
Materiality
We highly value our stakeholders and ensure our sustainable management goals align with materiality assessments of their interests and concerns. We've documented the economic, environmental, social, and governance issues most pertinent to the eight major stakeholder groups we've identified. After thorough impact analysis of these issues, we've developed our corporate strategy, goals, and business plans, all transparently detailed in our CSR Report.
Stakeholder Identification
KGI Financial regularly reviews the focus of stakeholders every year to prepare the ESG Report and sustainable development plan. In 2023, KGI Financial analyzed the trend of international sustainable development according to the AA1000 Stakeholder Engagement Standard (AA1000SES), with the five principles of Responsibility, Influence, Tension, Diverse Perspectives, and Dependency, in addition to taking reference from domestic and foreign industry to review and identify KGI Financial's 8 major stakeholders (including shareholders and investors, employees, clients, community, investees, suppliers, government and competent authority, and media), and distributed questionnaires to internal and external stakeholders to gather their topics of concern and incorporate them into its sustainable development considerations.
Material Issues Identification
Step 1
Defining impact
Material Topics
19
Material Topics
KGI Financial adopts the 19 sustainability issues identified in 2022 as the basis and takes into consideration the industry material topics listed by SASB, DJSI, and other dimensions of international sustainability ratings. It also takes into consideration domestic regulations and trends, as well as the findings of internal due diligence investigations, to define 12 negative impacts and 12 positive impacts.
Step 2
Stakeholder survey
WORKING GROUPS (WGS) OFSUSTAINABILITY
6
WORKING GROUPS (WGS) OFSUSTAINABILITY
The Sustainability Committee distributed questionnaires to the eight major stakeholders through its six working groups. The identification results of the impact of sustainability issues by both internal and external stakeholders were considered when adjusting the material topics.
Stakeholders Groups
8
Stakeholders Groups
The Sustainability Committee distributed questionnaires to the eight major stakeholders through its six working groups. The identification results of the impact of sustainability issues by both internal and external stakeholders were considered when adjusting the material topics.
Step 3
Assessing impact and prioritizing materiality
Impact
24
Impact
In 2022, the 20 departments within KGI Financial assessed and calculated two axes of "degree of impact" and "likelihood of occurrence" of 24 positive/negative impacts, and also took into account both physical and potential impacts as factors to generate the negative/positive material impact issue matrix. In 2023, KGI Financial further conducted a materiality assessment of 24 positive/negative impacts by distributing questionnaires to both internal and external stakeholders.
Step 4
Prioritizing and adjustment assessment results
key topics
9
key topics
After carefully considering the positive and negative impacts of stakeholders in 2023, we have adjusted the materiality priority of sustainability issues. The 19 material issues have been categorized into three levels: key, secondary, and other topics. We have also updated the 2023 materiality matrix and the ranking of material topics.
Step 5
Reporting and disclosing content
ESG Report
1
ESG Report
The material topics result was submitted to the Sustainability Committee for review and approval in March 2024. The ESG Report is compiled based on these material topics and discloses the strategies, targets, and implementation status of the sustainable development plan, which is regularly reported to the Sustainability Committee and the Board of Directors for performance monitoring.
Material Issues Matrix
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Environmental
We have made environmental protection and sustainable development our major mission and consistently uphold our responsibility to address these issues.