We regularly engage both external and internal stakeholders to collect feedback on material ESG issues and impacts of our initiatives to evaluate the effectiveness of our current ESG strategy. This helps us to identify risks and opportunities and improve our ESG performance by responding to stakeholders’ feedback and expectation.
Double Materiality Assessment
To ensure our ESG Report aligns with global reporting best practice and addresses issues that reflect the significant impact on the economy, environment and society and on Towngas’ enterprise value, we conducted a comprehensive double materiality assessment this year. This approach helps us to recognise that risks and opportunities which are significant from both a financial and non-financial standpoint, hence, supporting in the development of our ESG strategy and targets.
We communicated with stakeholders through online surveys, focus group discussion and interviews to gain an in-depth understanding of their concerns and interest on Towngas’ potential material issues. The exercise included internal and external participants from diverse fields, including employees, suppliers, academics, local community, NGOs and professional bodies.
To ensure open and fair discussions, the dialogues were facilitated by an independent third-party consultant.
We adopted the internationally recommended three-step process of Identification, Prioritisation and Validation for the double materiality assessment.
1. Identification
- Reviewed and adopted ESG issues from previous stakeholder engagement exercises
- Conducted peer benchmarking and made reference to megatrends, international reporting standards (including the disclosure topics in the Sustainability Accounting Standards Board Standards) and ESG ratings requirements
- Conducted online surveys, focus group discussion and interviews with external and internal stakeholders in Hong Kong and the Chinese mainland
- Updated to 27 issues base on evaluation of potential and actual impacts of the material issues
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2. Prioritisation
- Stakeholders’ feedback was considered from two aspects:
- Financial materiality: reflecting the views of Towngas’ management level on the positive and negative impacts on Towngas’ enterprise value
- Impact materiality: reflecting the concerns of diverse stakeholders who believe the selected ESG issues may contribute significant positive and negative impacts on the economy, environment and society
- A revised materiality matrix was developed based on the most impactful issues on society and environment and Towngas’ enterprise value
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3. Validation
- The prioritised list of material issues was presented to the ESG Committee for discussion and validation
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2023 Double Materiality Matrix
The double materiality matrix below summarises the relative importance of the 27 material issues by their impact on economy, environment and society (Y-axis), and impact on Towngas’ enterprise value (X-axis). 13 of them were prioritised as most material issues.
Energising the Ecosystem
1 Air emissions
2 Nature and Biodiversity
3 Energy
4 Materials
5 Waste
6 Water and effluents
Neutralising our Footprint
7 Climate resilience
8 Fossil fuel alternatives (for customers)
9 Greenhouse gas emissions
Engaging with Society
10 Community engagement
11 Customer relationship
12 Supply security and reliable production
Revitalising our Strengths
13 Business integrity and compliance
14 Corporate governance
15 Data privacy and cyber security
16 ESG strategy
17 Tax
Greening the Future
18 Economic impact
19 Innovation
Young-at-heart with Resilience
20 Asset integrity and crisis management
21 Customer health and safety
22 Employee engagement and development
23 Freedom of association and collective bargaining
24 Human rights management
25 Inclusion and diversity
26 Occupational health and safety
27 Supply chain management