Materiality analysis process

SDGs

Qisda and our Stakeholders

In order to strengthen corporate sustainability planning and implementation, Qisda engages with stakeholders regularly, integrating their concerns into its corporate sustainability policies to build transparent communication channels. By adhering four principles of inclusivity, materiality, responsiveness, and impact, Qisda follows the “AA 1000 Accountability Principles (AA 1000AP)”to identify and address sustainability issues, further enhancing transparency in disclosing sustainability information.

We also adopt the “AA 1000 Accountability Principles (AA 1000AP)” and follow the four principles – inclusivity, materiality, responsiveness, and impact – to identify and respond to sustainability information and increase the strictness of sustainability information disclosure.

The stakeholder engagement situation and key focus topics for the year 2023 at Qisda have been reported to the board of directors on March 5, 2024.

Respond to stakeholder concerns

Shareholder

Employees

Customer

Subsidiary

Affiliated company

Supplier

Investment institution

Media

Government

Communityy/NGO/NPO

Meaning	Issue of concern	Communication Channels	Frequency of engagement
Shareholder not only oversees corporate governance of Qisda, but also concerns operational performance and sustainable development.	Operational and Financial Performance	Investor conference shareholder meeting	At least once a quarter At least once a year
	Customer relationship management	shareholder meeting	Once a Quarter
	Climate Strategy	Investor conference shareholder meeting	Frequency of Engagement/Once a Year
	R&D and innovation of green products	shareholder meeting	Once a Quarter
	Waste management	Investor conference shareholder meeting ESG Report	At least once a quarter At least once a year Annual Release
	Energy management	Investor conference shareholder meeting ESG Report	At least once a quarter At least once a year Annual Release

Meaning	Issues of Concern	Communication Channels	Frequency of Engagement
Employees are not only the driving force behind Qisda's competitive advantage but also a group whose satisfaction we value.	Operational and Financial Performance	Business briefing	At least once a quarter
	Climate Strategy	ESG Report Training and Workshops Business briefing	Annual Release As needed At least once a quarter
	R&D and innovation of green products	ESG Report	Annual Release
	Talents Policy	Internal System Surveys	Once a Year
	Employees training and development	Training and Workshops New Employee Training	As needed
	Occupational Safety, Health and Management	Business briefing Internal portal Labor-Management Meetings OH&S Committee	Once a Quarter Three Times a Year Four Times a Year Four Times a Year

Meaning	Issues of Concern	Communication Channels	Frequency of Engagement
Customers are key partners in Qisda's pursuit of sustainability and innovation.	Customer relationship management	Customer satisfaction questionnaire survey Customer SER rating	Twice a Year Once a Quarter
	Climate Strategy	Investor conference ESG Report	At least once a year Annual Release
	R&D and innovation of green products	Customer Surveys	Regular
	Waste management	ESG Report Customer Audits	Annual Release As needed
	Energy management	ESG Report	Annual Release

Meaning	Issues of Concern	Communication Channels	Frequency of Engagement
Qisda is collaborating with subsidiaries towards our sustainability vision of 'Together, make the world better.	R&D and innovation of green products	Group Monthly Meetings ESG Report	Once a Month Annual Release
	Climate Strategy	Group Monthly Meetings ESG Report Risk Management Committee ESG Committee	Once a Month Annual Release Once a Quarter Once a Quarter
	Waste management	ESG Committee ESG Report Group Monthly Meetings	Once a Quarter Annual Release Once a Month
	Energy management	ESG Committee ESG Report Group Monthly Meetings	Once a Quarter Annual Release Once a Month
	Employees training and development	Training and Workshops New Employee Training	As needed
	Occupational Safety, Health and Management	Business briefing Group Monthly Meetings	Once a Quarter Once a Month

Meaning	Issues of Concern	Communication Channels	Frequency of engagement
Affiliated companies are integral to driving Qisda's operational performance and sustainability.	Customer relationship management	Customer satisfaction questionnaire survey	Twice a Year
	R&D and innovation of green products	ESG Report shareholder meeting	Annual Release At least once a year
	Waste management	ESG Report shareholder meeting	Annual Release At least once a year
	Employees training and development	ESG Report	Annual Release
	Occupational Safety, Health and Management	shareholder meeting	At least once a Year

Meaning	Issues of Concern	Communication Channels	Frequency of engagement
Qisda’s key partners in sustainable operations due to our responsibility in building a sustainable supply chain .	Sustainable supply chain management	Supplier Audit Suppliers meeting	Once a Year
	Climate Strategy	ESG Report	Annual Release
	R&D and innovation of green products	Supplier Surveys ESG Report	Regular Annual Release
	Waste management	ESG Report	Annual Release
	Energy management	Suppliers meeting	Once a Year

Meaning	Issues of Concern	Communication Channels	Frequency of engagement
Investment institutions are concerned with Qisda's operational performance and sustainable development status.	Operational and Financial Performance	Investor conference shareholder meeting	At least once a quarter At least once a a year

Meaning	Issues of Concern	Communication Channels	Frequency of engagement
Media is a good communication bridge between Qisda and external stakeholders, allowing them to access the latest company news.	Climate Strategy	ESG Report shareholder meeting Investor conference	Annual Release Once a Quarter At least once a quarter
	R&D and innovation of green products	ESG Report	Annual Release
	Waste management	ESG Report Media Press Releases	Annual Release As needed

Meaning	Issues of Concern	Communication Channels	Frequency of engagement
Qisda complies with laws and regulations, enhancing operational transparency.	Climate Strategy	ESG Report shareholder meeting Investor conference	Annual Release Once a Quarter At least once a quarter
	R&D and innovation of green products	ESG Report	Annual Release
	Waste management	ESG Report Government Inspections	Annual Release As needed
	Energy management	ESG Report Media Press Releases	Annual Release AS needed
	Occupational Safety, Health and Management	Labor Inspection Units	As needed

Meaning	Issues of Concern	Communication Channels	Frequency of engagement
Qisda’s operations have the most direct impact on local communities.		Volunteer Services Project Collaborations and Visits	As needed

Action and goal

Operational and Financial Performance

Customer relationship management

Sustainable supply chain management

Climate Strategy

R&D and innovation of green products

Waste management

Energy management

Talents Policy

Employees training and development

Occupational Safety, Health and Management

Policy	Commitment	Project/Action	Performance Indicator	Goal			Connected SDGs
Policy	Commitment	Project/Action	Performance Indicator	Short-term	Medium-term	Long-term	Connected SDGs
Optimizing the operation of the business, accelerating the expansion of the medical business and development of the smart solutions, and creating strategies for networking communication business.	Create Value	Laying foundation for ESG, expanding high profit margin businesses, exerting influence as the Grand Fleet	Profit from high-value added business	2025: grow incrementally	2027: Achieve over 50% of profit	2030: Continuously create long-term value	8

Policy	Commitment	Project/Action	Performance Indicator	Goal			Connected SDGs
Policy	Commitment	Project/Action	Performance Indicator	Short-term	Medium-term	Long-term	Connected SDGs
Understanding customers' needs and expectations to the Company, and creating improvement plans and providing better services based on the results of customer feedback and satisfaction surveys.	Fully comply with customer requirements and deliver a quality services	Establishing corrective actions through customer feedback and satisfaction to improve the quality of products and services	Customer satisfaction score	2025: 93	2030: 95	2040: 95	8

Policy	Commitment	Project/Action	Performance Indicator	Goal			Connected SDGs
Policy	Commitment	Project/Action	Performance Indicator	Short-term	Medium-term	Long-term	Connected SDGs
Requiring suppliers to comply with local laws and regulations, and social standards, create environmental protection programs, and conduct regular investigation and audits.	Improve values in the sustainable supply chain	Establishing suppliers dynamic management system, sustainable suppliers management regulations, suppliers periodic education and training	Supplier carbon reduction	2025: Suppliers reduce carbon emissions by 3%	2030: Suppliers reduce carbon emissions by 30%	2040: Continuously manage supplier carbon reduction	8;12;13;15

Policy	Commitment	Project/Action	Performance Indicator	Goal			Connected SDGs
Policy	Commitment	Project/Action	Performance Indicator	Short-term	Medium-term	Long-term	Connected SDGs
Setting carbon reduction and net zero goals and turning these goals into action. ; Strengthening the corporate climate resilience	Apply life cycle thinking to examine carbon emissions through all lifecycle stages and explore opportunities for reduction	Continuously applying TCFD framework to deepen climate risk management	Absolute reduction: Scope 1, 2, and 3 GHG emissions	reduce emissions by 16.8% by 2025 (compares to 2021)	reduce emissions by 42% by 2030 (compared to 2021)	reach carbon neutrality by 2040	7;13

Policy	Commitment	Project/Action	Performance Indicator	Goal			Connected SDGs
Policy	Commitment	Project/Action	Performance Indicator	Short-term	Medium-term	Long-term	Connected SDGs
Applying energy-saving, volume reduction, and carbon reduction strategies to design and develop products and services	Design products with 3Rs (Reduce, Reuse, and Recycle); Reduce waste related to operation and improve recycling and reusing waste	Introduced ISO 14006 and IEC 62430 management systems	Improve energy efficiency	Improve energy efficiency by 4% by 2025	Improve energy efficiency by 14% by 2025	Improve energy efficiency by 20% by 2040	12;13

Policy	Commitment	Project/Action	Performance Indicator	Goal			Connected SDGs
Policy	Commitment	Project/Action	Performance Indicator	Short-term	Medium-term	Long-term	Connected SDGs
Striving to prevent pollution, minimize waste, and reduce GHG emissions	Increase the percentage of products and packaging materials used in the 3R practice, starting from source design; reduce the amount of operating waste and increase the reuse and recovery rate.	Courses related to green products; Transforming waste into valuable resources, converting plastic waste to fuel	Proportion of recyclable waste	2025: reach 92.5%	2030: reach 95%	2040: become a Zero-Waste factory	9;12

Policy	Commitment	Project/Action	Performance Indicator	Goal	Connected SDGs
Striving to enhance energy efficiency, and reduce GHG emissions	Improve energy use efficiency Increase use of renewable energy	Utilizing high efficiency equipment to continuously improve energy performance and efficiency; Introducing the concept and methods of carbon reduction to the employees and suppliers to avoid waste; Continuously purchasing renewable energy and establishing renewable power generation system to reach 100% renewable energy; Adding carbon offset projects and setting internal carbon pricing	Renewable energy consumption Absolute reduction	2025: 32% use of renewable energy; Save energy by 1% a year	2030: 60% use of renewable energy; Continuously save energy by 1% a year	2040: 100% use of renewable energy	7

Policy

Commitment

Project/Action

Performance Indicator

Goal

Connected SDGs

Short-term

Medium-term

Long-term

Striving to enhance energy efficiency, and reduce GHG emissions

Improve energy use efficiency
Increase use of renewable energy

Utilizing high efficiency equipment to continuously improve energy performance and efficiency;
Introducing the concept and methods of carbon reduction to the employees and suppliers to avoid waste;
Continuously purchasing renewable energy and establishing renewable power generation system to reach 100% renewable energy;
Adding carbon offset projects and setting internal carbon pricing

Renewable energy consumption
Absolute reduction

2025:

32% use of renewable energy;
Save energy by 1% a year

2030:

60% use of renewable energy;
Continuously save energy by 1% a year

2040:
100% use of renewable energy

Policy	Commitment	Project/Action	Performance Indicator	Goal			Connected SDGs
Policy	Commitment	Project/Action	Performance Indicator	Short-term	Medium-term	Long-term	Connected SDGs
Building quality work environments and diverse channels for career development to attract and retain exceptional talents.	Provide quality work environments and good remuneration packages.	Implementing assessment of human rights due diligence risk	Completion rate of checklist of human rights risk diligence	cover by 81.5% by 2025	cover by 90% by 2030	cover by 93% by 2040	8

Policy	Commitment	Project/Action	Performance Indicator	Goal			Connected SDGs
Policy	Commitment	Project/Action	Performance Indicator	Short-term	Medium-term	Long-term	Connected SDGs
Completing the educational training system in accordance with the Company’s strategic development and business goals; improving the overall competitive edge of the organization and creating more competitive advantages.	Build a complete educational training and development system to provide an environment for diverse learning and development, further attract and retain exceptional talents.	Establishing learning blueprints for the four schools; Holding learning development courses based on the training need of a year	Education and training: the effect of Continuous Improvement Program on revenue	represent 1% of revenue by 2025	represent 1% of revenue by 2030	represent 1% of revenue by 2040	4;8

Policy	Commitment	Project/Action	Performance Indicator	Goal			Connected SDGs
Policy	Commitment	Project/Action	Performance Indicator	Short-term	Medium-term	Long-term	Connected SDGs
Protecting our employees, providing them with complete management system and regulations for health and safety.	continuously manage safety, sanitation, and health in the work environment and create improvement plans	ISO 45001 effective operation, risk assessment, change management, safety culture, safety proposal, joint inspection by supervisors	Zero occupational disease; FR/SR is superior to standards announced by public sector	By 2025: 0 occupational disease, 0 fire, FR<0.1, SR<4.7	By 2030: 0 occupational disease, 0 fire, FR<0.0.08, SR<3.8	By 2040: 0 occupational disease, 0 fire, FR=0, SR=0	3;8;10

Impact assessment

Material Topic	Impact
Material Topic	Positive	Negative
Operational and Financial Performance	Enhance financial returns to investors, increase tax payment, and create upstream output values.	-
Customer relationship management	Fully understand customer requirements to improve the quality of products and services, further facilitate the improvement of the Company’s reputation, and increase market share/revenue.	It may result in a declining customer loyalty and satisfaction as well as some negative impacts on our business and goodwill, even brings lawsuits. It could represent a reputational damage to the Company, causes customer chum, and causes a declining market share and revenue.
Sustainable supply chain management	Disseminate information about the social responsibility to suppliers, enhance the quality of work and life for employees and the sustainable operation goal, control performance periodically, disseminate the spirit of RBA to whole network of suppliers for enabling the operation of the supply chain in line with local laws and regulations and pushing the Company to meet the international trend and goals regarding work environment.	Supply chain can't move with the times for transition, resulting in the lack of friendly work environments for the employees and violation of local laws and policies. The Company suffering reputational damage internationally.
Climate Strategy	-	Confronting the risks and challenges posed by climate change, we may suffer the significant impacts and consequences on operation caused by failure of climate change mitigation.
R&D and innovation of green products	Being eager to conduct climate change mitigation, apply green design thinking to the stage of design, create product values for customers, contribute to the goal of zero carbon emissions	Overtime work of personnel related to R&D, patent, forward-looking development, and human resources; an increase in price may result in a financial burden of customers; hard to recruit R&D talents and unable to create product with more competitive advantages.
Waste management	-	Ineffective waste management results in increased cost of revenue and directs stakeholders'' attention to it.
Energy management	-	An increase in electricity consumption and energy use intensity results in a increase in production cost and a decline in profits, directing stakeholders' attention to it. ; potential carbon fee and carbon tax collection in various countries results in an increase in cost of revenue.
Talents Policy	provide employment opportunities for talents to work their magic, and further increase local employment rate.	-
Employees training and development	Corporate operation/direct impact. Help employees to develop their competency and gain more competitive advantages.	-
Occupational Safety, Health and Management	Company operations/A good work environment enables talents to work without worries and protect physical and mental health of employees.	Company operations/investments ;accidents cause reputational damage and business losses to the Company.

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