UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 MANAGEMENT DISCUSSION & ANALYSIS 53 52 OUR MATERIAL MATTERS OUR MATERIAL MATTERS Listening is vital as we focus our sustainability ambition on the most important current and emerging issues for our stakeholders and our business. Sustainability Pillar Material Topics Definition and Detailed Description Economic Business Ethics Conducting business ethically, by preventing abuse of entrusted power for private gain, compliant with laws and regulations, and protecting UEM Edgenta and Stakeholders’ data from cyber security breach. We incorporate business ethics in our business practices and governance structure* Innovation and Technology-based Operational Excellence Using technology to revolutionise the way work is done, enhancing efficiency and reducing costs, leading to providing customers with the most effective solutions which tend to be the most technologically advanced** Economic Development Economic value generated and distributed by UEM Edgenta and contribution to economic development in the local areas or communities where it operates. Including UEM Edgenta’s approach to remuneration or local hiring and market expansion as a subset of the broader context of sustainable business strategy Supply Chain Management UEM Edgenta’s support, including spending, for the development of local suppliers throughout its operations, such as Bumiputra vendor development, in addition to management of supply chain through fair practices Environment Climate Change & Energy Reduction in UEM Edgenta’s direct and indirect emission into the atmosphere, from reduction of greenhouse gases (“GHG”) emission and energy consumption from our operations Environmental Management Responsible environmental management in terms of handling hazardous and nonhazardous waste, use of material resources, and water consumption in UEM Edgenta’s business operations Social Occupational Health and Safety UEM Edgenta’s anticipation, recognition, evaluation and control of hazards arising in or from the workplace that could impair the health and well-being of workers, including mental health Employment Culture Employees’ fair treatment in all aspects based on merit, as well as development to support talent growth and succession planning Customer Satisfaction Provision of quality services as required by customers of UEM Edgenta, including ensuring customers’ health and safety and data privacy at all times Human Rights Assessment UEM Edgenta’s approach to monitoring and managing human rights matter across the value chain Local Community UEM Edgenta’s management of communities surrounding its operating location, via voluntary community engagement initiatives and development to create a positive social impact * Further details on how we embed business ethics in our governance structure is described in the Sustainability Statement on page 73. ** Further details on how this material matter affects our business is described in the Edgenta Digital Ecosystem Platform on pages 16 to 19. Each year, we assess the changing sustainability landscape to understand and prioritise UEM Edgenta’s material matters, to help ensure alignment of our strategy to the material matters. We use our materiality assessment to help us evolve our strategy and tailor our reporting, communications and disclosures so that it aligns with the interests and needs of our stakeholders, as well as those of the Company. Our most recent materiality assessment was conducted internally. As part of the process, key stakeholders acted as proxies for external stakeholders, due to their knowledge of and interactions with those stakeholders. It highlighted new and emerging issues, and provided a fresh check on whether we are disclosing information and being transparent in the right areas. We define material matters as either UEM Edgenta’s current or potential impact on the economic, environment, and social. OUR MATERIALITY PROCESS We identified a list of material matters, which included new issues and topics, reflecting changes to the sustainability landscape over the past year. These were then identified through research of emerging sustainability trends, macro forces, competitor practices and global standards Identification Understand the organisation’s context (activities, business relationship, sustainability context) 1 Identify actual and potential impact 2 Assess the significance of impact 3 The matrix was presented to senior management, the Board Governance and Risk Committee and the Board of Directors for validation and approval Validation Validated the results Prioritisation We assessed each matter’s significance of the impact on the business and importance to our stakeholders. • Each issue was assessed high, medium or low according to its potential to positively impact on future growth. We also considered whether the issue had been identified as a principal risk as part of our Board’s annual identification of corporate risks • Stakeholder importance and significance of impact were determined through an anonymous voting process during the workshop • Through the prioritisation exercise, 11 material matters were identified and these were then plotted on the materiality matrix Material Topic Prioritise the most significant impacts The insights gathered from our materiality assessment are helping to shape our disclosure and transparency on material matters, and inform strategic discussions. Materiality Matrix Climate Change & Energy Human Rights Assessment Occupational Health and Safety Business Ethics Innovation Customer Satisfaction Employment Culture Economic Development Supply Chain Management Environmental Management Significance of UEM Edgenta’s impact Low High Importance to Stakeholder Low High Local Community Note: Innovation = Innovation and Technology-based Operational Excellence Economic Environment Social LEGEND: High Priority Medium Priority
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