Materiality Assessment

Materiality Assessment


Materiality Assessment

To understand the connection between issues of concern to stakeholders and the Company’s long-termvalues, we identify material issues in accordance with GRI reporting standards. We also established related performance indicators to manage the material economic, environmental, and social issues we identified and included them into work items of SKFH for the current year to manage corporate sustainability.


Collect Sustainability Issues

Referred to international sustainable development trends, material issues in domestic and international financial and insurance industries, and the latest regulations and guidelines. Compiled 18 sustainability themes related to SKFH based on SKFH’s strategic development directions.


Identify Stakeholders

Distributed questionnaires internally to identify individuals or groups who are or may be affected by the Company's economic activities. Identified eight major stakeholders: shareholders and investors, employees, customers, government agencies, suppliers, media, communities and community organizations, non-profit/non-governmental organizations.


Survey Stakeholders' Level of Concern

Conducted online surveys to gather stakeholder's; level of concern about SKFH's sustainability issues. A total of 94 questionnaires were collected.

Analyzed 18,373 records of calls to SKL's 24/7 customer service to summarize the issues of concern to customers and potential customers and categorized the levels of concern based on the frequency of incoming calls.


Evaluate the Impact of Sustainability Issues on Operations

Distributed operational impact assessment questionnaires to executives and employees of SKFH and subsidiaries. Evaluated the impact of various sustainability issues on the Company's revenue, costs, and risks. A total of 673 questionnaires were collected.


Analyze External Impacts of Sustainability Issues

Introduced impact assessment tools and invited the Executive Secretariat of the Corporate Sustainability Committee of SKFH and subsidiaries to jointly assess the linkage between economic, environmental, and societal impacts (including human rights) and the Company's sustainability issues. SKFH conducted positive and negative impact assessments for each impact event and defined the value chain stage where the impact occurred.


Prioritize Material Issues

Integrated the impacts of sustainability issues on business operations and on external economy, environment, and people, and took into account the level of concern from external stakeholders to prioritize material issues.


Verify the Prioritization of Material Issues

Presented the prioritization of material issues to the management committee of SKFH for discussion and decision-making on the prioritization by senior executives .


Impact Assessment Process 

In assessing the impacts on the economy, environment, and society, SKFH adopts methodologies developed by the Value Balancing Alliance (VBA) and Harvard Business School's "Impact-Weighted Accounts." These approaches enable a quantitative analysis of the economic, environmental, and social dimensions based on impact and the identification of SKFH's material issues. By applying these international standards and guidelines, SKFH identifies 18 positive and negative impacts, comprising 6 economic, 4 environmental, and 8 related to human rights. Through the evaluation conducted by 20 employees, considering the severity, scope of influence, irreversibility, and likelihood of occurrence for actual and potential impacts, 11 significant impacts and sustainability issues were identified. In addition, SKFH also adopted a monetized impact assessment approach to identify material issues with impact valuation. The monetized analysis of impact valuation suggests that "Sustainable Finance," "Talent Recruitment and Retention," "Business Performance," "Supplier Sustainability Management," and "Talent Cultivation and Development" are the most significant issues. They primarily generate positive impacts, including increased industry value propelled by investments and procurement, as well as external workers' income in the industry chain. The negative impacts mainly arise from environmental externalities of the supply chain. For details, please refer to 1.3 Sustainability Impact Valuation.

Materiality Matrix

In order to gain a clearer understanding of the internal and external impacts of each sustainability issue, we have also utilized a bubble chart as a visual tool. The internal impact is represented on the X-axis, the external impact is on the Y-axis, and the size of the bubbles reflects the level of stakeholder concern. By analyzing the distribution of sustainability issues on the matrix coordinates and the size of the bubbles, we can comprehend the degree of impact and level of concern for each sustainability issue.