Sustainability

Materiality Assessment

Materiality Assessment

In FY2025, we conducted a double materiality assessment at the Group level1 to identify and prioritise sustainability-related risks and opportunities, aligning with both the GRI Standards 2021 and the IFRS S1 requirements on materiality. Compared to the previous assessment we have done in 2017 and subsequent refreshment in 2022, which focused on the impact of sustainability topics on the company and its stakeholders, this year's assessment incorporated an additional financial materiality lens, considering the potential influence of sustainability-related matters on enterprise value.

1 Following a review, it was determined that the Leisure business has minimal impact on the Group's revenue and profit, and it is not significantly exposed to material sustainability risks. Consequently, its contribution was assessed as immaterial in relation to the materiality assessment of sustainability-related risks and opportunities. Accordingly, the Leisure business was excluded from the scope of the FY2025 materiality assessment.
Identify
Rate
Prioritise
Validate

Identify

The relevance of previously identified ESG topics was reviewed in light of our business operations, peer disclosures, and emerging industry trends. The list of topics was refined, and material sustainability-related risks associated with each topic were mapped.

Rate

Each topic was evaluated from two dimensions. For impact materiality, we assessed the potential impact of associated risks on six (6) key stakeholder groups (as presented on page 4), based on severity and likelihood. For financial materiality, we assessed the potential financial impact of associated risks on the Group's business, considering magnitude and likelihood. The assessment of magnitude was guided by our group-level Risk Management Policy.

Prioritise

Ratings from stakeholders were consolidated to determine the relative significance of each topic under both dimensions. Topics were then plotted in a matrix to visualise their positioning in terms of impact materiality and financial materiality.

Validate

The prioritisation outcomes were reviewed and validated by the Board of Directors and Management to ensure alignment with strategic priorities and stakeholder expectations.

Through this process, nine (9) material topics were identified for FY2025 and subsequently prioritised into Tier 1 and Tier 2 topics, as illustrated below.

Haw Par's materiality matrix