Double Materiality Assessment

Beyond continuously strengthening relationships with stakeholders and creating long-term value for them, we also engage through diverse communication channels to gain a deeper understanding of their needs and expectations. This allows us to identify key issues requiring the Group's focus, and take proactive steps to collaborate with stakeholders in advancing sustainable development.

In response to the expectations of our stakeholders, we closely monitor evolving social, economic, and environmental landscapes, and regularly review opportunities and risks associated with sustainable development. Through the Board ESG Committee, the Group regularly reports material ESG concerns and risks to the highest governance body (the Board), in order to ensure that ESG factors are fully incorporated in its operational strategies and critical decisions. This year, we continued to adopt the double materiality assessment framework, while adjusting certain assessment methods and processes based on the Group’s operational development and governance needs. This enabled us to focus more on the most material issues and strengthen their connection to actual operations and financial performance. The process of the double materiality assessment this year is as follows:

1. Identification of Material Issues

Reviewed the framework of material issues by referencing major international ESG rating standards and industry benchmarks
Reclassified the original 26 material issues into 24 issues as the basis for this year’s assessment upon comprehensive assessment

2. Stakeholder Communication

Conducted interviews with senior management of the Group to review material issues, and performed indepth analysis with reference to major industry trends
Prioritised material issues based on two dimensions: “Impact Materiality” and “Financial Materiality”

3. Double Materiality Assessment

Consolidated feedback, conducted scoring and analysis exercise to complete the “Double Materiality Matrix”
The Board ESG Committee conducted final discussions to determine the Group’s material issues and their priorities

4. Response to Material Issues

Planned future ESG work priorities based on the results of the double materiality assessment
Addressed stakeholders’ concerns, and identified them as the key focus areas for this year’s ESG report disclosures

2025 Double Materiality Matrix

The "Double Materiality Matrix" displays the relative ranking of 24 material issues based on their impact on enterprise value (X-axis) and their impact on the economy, society, and the environment (Y-axis). Among these, 12 core issues were identified as the most material issues.

Operational Resilience - Ensuring Stability and Reliability at All Times

1    Supply Security and Reliable Production and Distribution*
2    Asset Integrity and Crisis Management*
3    Corporate Governance
4    Business Integrity and Compliance*
5    Data Privacy and Cyber Security*
6    Economic Impact
7    Innovation

Towards Carbon Neutrality - Advancing the Transition to a Low-Carbon Energy Future

8    Climate Adaptation and Resilience*
9    Low-Carbon Business Opportunities and Investment*
10    Greenhouse Gas Emissions*

Environmental Stewardship - Upholding Environmental Responsibility and Harmony with Nature

11    Energy Efficiency*
12    Water and Wastewater
13    Waste Management
14    Nature and Biodiversity
15    Air Emissions

People-Centric - Empowering People to Build a Sustainable Future

16    Employee Engagement and Development*
17    Human Rights Management
18    Inclusion and Diversity
19    Occupational Health, Safety and Well-Being*
20    Customer Health and Safety
21    Community Contribution