Materiality analysis process

Materiality analysis process
SDGs
  • 8

Qisda and the Stakeholders

In order to better make plans and decisions regarding corporate sustainable development, Qisda engages in timely communication with stakeholders and incorporates material topics of stakeholders’ concern into the corporate ESG policies.

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.

Materiality analysis process

StageSteps and ProcessResult
I: Identification

Step 1: Communication partner

The 9 stakeholder groups, including employees, investors, customers, suppliers, business partners, subsidiaries, affiliated companies, academic institutions, and others, are the primary stakeholders of Qisda that are identified through the AA1000 Stakeholder Engagement Standard. We communicate our practices for achieving corporate sustainability to these primary stakeholders.

9 types of primary stakeholders

Step 2: Sustainability issues

To thoroughly gather sustainability issues related to Qisda, we collected 21 issues based on domestic and international sustainability norms/standards, sustainability initiatives, feedback from internal and external stakeholders, corporate management strategies, and feedback from internal executives.

21 sustainability issues
II: Analysis

Step 3: Investigation of degrees of concern

Online questionnaires were used to investigate the degrees of concern that primary stakeholders have on various sustainable issues. We received a total of 239 valid questionnaires, including employees (206 copies), investors (2 copies), customers (3 copies), and suppliers (18 copies) , partners (4 copies), subsidiaries (1 copy), affiliated companies (2 copies), academic institutions (2 copies), and others (3 copies).

239 valid questionnaires

Step 4: Analysis of impact on operations

Seven members of the sustainability team and supervisors participated in assessing the impact of sustainability issues on the Group's operations based on four main factors, including revenue growth, employee loyalty, customer satisfaction, and operational risk

7 senior managers

Step 5: Impact on sustainable development and operations

According to the Value Balance Alliance (VBA), Harvard Business School's "Impact-Weighted Accounts" research program, and the London Benchmarking Group (LBG), we defined 12 positive impacts and 7 negative impacts to assess the significance of sustainability issues on impacts.

19 impacts

Step 6: Validation of material issues

Based on the survey of the degree of concern, the analysis result of the operational impact, and the approval of the internal ESG office and external experts, 10 material issues were validated and prioritized.

10 material sustainability issues
III: Validation

Step 7: Review of disclosure contents

10 material sustainability issues were identified corresponding to 17 specific topics in GRI (16 GRI topics and 1 Qisda-defined topic), and based on this to draw the information disclosure boundary of Qisda's value chain (supply chain management, operations, products, society) as the basis for reporting.

17 GRI topics

Step 8: Formulation of long-term sustainability goals

To ensure that all of Qisda's sustainability initiatives can meet stakeholder expectations, we have formulated 10 long-term sustainability goals based on material issues. Moreover, we used them as a reference for internal review of performance achievements. 

10 long-term sustainability goals

Qisda's Material Issues

ESG Material IssuePrioritizationDegree of primary stakeholders’ concernImpact on Organizational OperationsImpact on Sustainable Development
Operational and financial performance

1

***

*

***

R&D and innovation of green products

2

*

**

***

Sustainable supply chain management

3

*

***

**

Talent policy

4

***

*

**

Climate strategy

5

*

**

**

Occupational health and safety

6

***

*

*

Employee training and development

7

**

*

*

Energy management

8

*

 

***

Customer relationship management

9

 

*

***

Waste management

10

 

 

**

 

Changes in material issues

Compared to the previous reporting period (2022), we added 1 material issue (both positive and negative). No new material issues were added to the environmental aspect; ‘employee wages and benefits’ was removed from the social aspect and occupational health and safety was added; ‘operational and financial performance’ was added to the economic aspect.

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