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 allow us to identify key issues requiring the Group's focus, and take proactive steps to collaborate with stakeholders in advancing sustainable development.

Social, economic, and environmental trends are closely monitored, with regular evaluations of material sustainability issues incorporated into the Group’s risk management framework. This vigilance empowers us to adapt policies effectively in response to challenges. This year, we engaged with internal and external stakeholders using various approaches, including questionnaire surveys and focus group interviews. Employing a double materiality assessment framework, we analysed how our operations impact economic, environmental, social, and governance factors, as well as how these issues correlate with our financial performance. From this assessment, we identified and prioritised material issues accordingly.

The specific steps of the evaluation process materiality were as follows:

1. Identification of Materiality

Engaged with relevant departments within the Group to identify and categorise stakeholder group
Reviewed ESG issues previously highlighted by stakeholders
Referenced international standards and ESG criteria set by rating agencies
Conducted peer benchmarking
Compiled a list of 26 ESG issues

2. Stakeholders Engagement

Collected assessment feedback from various categories of stakeholders through questionnaire surveys and focus group interviews
Stakeholders evaluated the significance of ESG issues based on two dimensions: “Impact Materiality” and “Financial Materiality”

3. Double Materiality Assessment

Compiled, calculated, and statisticised stakeholder assessment results to complete the “Double Materiality Matrix”, hence identifying the most material ESG issues
The Board ESG Committee conducted final discussions to determine the priority of the Group’s material ESG issues

4. Response to Material Issues

Developed a future ESG work plan, addressed stakeholders’ concerns, and clearly defined the key focus areas for this year’s ESG report disclosures with reference to the results of the Double Materiality Assessment

2024 Double Materiality Matrix

The “Double Materiality Matrix” displays the relative ranking of 26 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, 19 core issues were identified as the most material.

Towngas’ “Double Materiality Matrix” 2024

Towards Carbon Neutral – Composing a New Chapter in Green Initiatives

1 Air Emissions
2 Biodiversity and Resource Use*
3 Energy Efficiency*
4 Waste Management
5 Water and Wastewater
6 Climate Adaptation, Resilience and Transition*
7 Low-carbon Business Opportunities and Investment*
8 Greenhouse Gas Emissions*

Stakeholders Partnership – Enhancing Value Chain Resilience

9 Customer Experience*
10 Supply Security and Reliable Production and Distribution*
11 Innovation*
12 Customer Health and Safety*
13 Responsible Supply Chain Management*

Resilient Governance – Foundation for Collaborative Development

14 Business Integrity and Compliance*
15 Corporate Governance*
16 Data Privacy and Cybersecurity
17 ESG Strategy*
18 Tax*
19 Economic Impact*

People-Centric – Co-Creating a Sustainable Future

20 Energy Affordability*
21 Asset Integrity and Crisis Management*
22 Employee Engagement and Development*
23 Human Rights Management
24 Inclusion and Diversity
25 Occupational Health and Safety*
26 Community Relations