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Material Aspects Identification

Since March 2015, Yuanta Financial Holdings has followed the international AA 1000 Standard and GRI G4 Guidelines as a reference for the Center for the Promotion of Corporate Social Responsibility’s procedures for the identification of material issues, and as a reference to assist members in identifying the material issues that should be disclosed in CSR reports. The process by which the Company identified material issues has included collecting, sorting, identifying, and verifying the issues, and further reviewing previous years’ reports to identify material issues to be included in the CSR Report.

Process for Identifying Material Aspects
Collecting Sustainability Issues
Ranking Material Issues
Identifying Material Aspects
 Verifying Issue Completeness
  • Collect info on risks and opportunities facing Group’s operations regarding sustainability/CSR
  • Demands from interested stakeholders
  • 45 sustainability issues
  • Establish threshold for importance and ordering method
  • Incorporate stakeholder issues & level of concern
  • Identify members of the Center for the Promotion of CSR
  • Verifying issue clarity
  • 25 material issues
  • Determine boundaries of conflicts
  • GRI G4 aspects
  • Supplementary GRI G4 FS indicators
  • 15 material aspects
  • Inspect completeness of results
  • Results verification
Inspecting Previous Year’s Report
  • Improve stakeholder inclusiveness
  • Enhance grasp of sustainability issues

Additionally, through the use of questionnaires, the Company tapped 10 members of the Center for the Promotion of CSR functional workgroups (spanning seven departments) and 22 other representatives from relevant departments or Company subsidiaries to consider the sustainability skills Yuanta requires through the perspectives of each different portfolio. From there, sustainability issues are graded from the twin perspectives of “influence on stakeholder assessments and decisions” and “significance of the organization’s economic, environmental, and social impacts,” with grades between 1 and 5 (1: none, 2: low, 3: medium, 4: high, 5: very high) assigned. Issues that score 75% or higher overall are considered material.

Following this procedure, the company identified a total of 45 sustainability issues, which were then prioritized by significance. A total of 18 issues passed the material threshold; after consulting domestic and international industry research to confirm the accuracy of the issues, another 7 issues were added, bringing the total to 25. Finally, after discussion regarding any boundary conflicts regarding the issues, a final total of 15 material aspects were identified.

In January 2016, the Company held a special Stakeholders Forum, inviting stakeholders to discuss and provide suggestions regarding the material issues from the CSR Report and Yuanta’s overall CSR structure. Representatives indicated a high degree of agreement with the identified material issues and aspects, with no major adjustments proposed. A number of ideas were offered regarding the future promotion of CSR. From the results of this forum, we found that the 25 material issues identified in March 2015 already cover the main issues of concern among stakeholders, and as such this report continues to follow these 25 issues.

In 2016, we continued to focus on these 25 material issues. Further, in accordance with the GRI Standards, through DMA discussion sessions on this year’s material issues from perspectives including stakeholder inclusiveness, sustainability context, materiality, and completeness, we reviewed the material topics in the GRI Standards and our report content, and adjusted the 25 identified material issues down to 20. These were then linked to 14 topics in the GRI Standards, primary amongst which were the two issues of “responsible lending” and “environmental risks of collateral” being linked to “products/services beneficial to the environment or society,” and the two issues of “service quality and customer satisfaction” and “customer relations management and complaints mechanism” being integrated into and explained in ordinary disclosure. Additionally, raw materials procurement and use” was deemed not to fall within the scope of our material issues.