Identification of Material Issues

Compal used The Double-Materiality Concept published by GRI in 2021 as well as the double-materiality definitions proposed by the European Financial Advisory Group (EFRATG) in 2021 and Sustainable Development Goal Disclosure in 2020 as references. Impact materiality and financial materiality were also taken into consideration.


Impact Materiality

Impact materiality reflects stakeholder perspectives on the broadest level. It must take the severity, likelihood, scale of impact and/or urgency of the organization’s own operations and its value chains into account. The scope of assessment includes the actual and potential positive/negative impacts on people and the environment.

In 2022, the extent of the positive and negative impacts on the economy, society, and people from the 15 sustainability topics as perceived by stakeholders were analyzed. The double materiality principle proposed by the EU was also employed to identify and define the topics that significantly impact on the “economy, environment, people” as “Material Topics.” A total of 8 material topics were identified after discussions with experts.

Financial Materiality

Financial materiality reflects sustainability-related financial information such as the significant sustainability-related risks and opportunities that an enterprise could reasonably expect to affect its business model, strategy, and cash flows, its access to finance, and its cost of capital over the short, medium or long term.

Compal routinely collects industry-specific sustainability topics with the potential for financial materiality through the TD IR Platform of the Taiwan Depository & Clearing Corporation (TDCC). International sustainability rankings including but not limited to S&P CSA (DJSI), CDP, FTSES, Sustainalytics, and MSCI are also used as a reference. Analyses are then conducted in-house through regular or ad hoc sustainability working meetings. A total of 8 sustainability topics (see matrix diagram on previous page) with both impact materiality and financial materiality were identified for 2022 including (1) Talent recruitment and retention, (2) Talent cultivation and training, (3) Risk management, (4) Privacy and information security, (5) Climate risks and opportunities, (6) Green products, (7) Sustainable supply chains, and (8) Business integrity and anti-corruption.  (Note: The numbering of the sustainability topics with financial materiality does not represent the absolute amount or relative size of financial impact)





Updated on September 2, 2022