Shannung Foods conducts its annual identification of material topics in accordance with the GRI 2021 "Materiality Principle." The assessment process is divided into four stages: extensive collection of ESG issue lists (including SASB Agricultural Processing Industry Standards, GRI Topic Library, and peer disclosures), stakeholder impact assessment, business impact matrix analysis, and final approval by the Sustainability Committee. This year, a total of 8 material topics were identified, covering both positive and negative impact aspects.
The eight material topics are ranked by impact as follows: (1) Food Safety and Quality Assurance, (2) Climate Change Risk and Carbon Management, (3) Agricultural Supply Chain Sustainability Management, (4) Circularity of Packaging Materials, (5) Water Resource Management, (6) Talent Development and Employee Well-being, (7) Contribution to Community Food Security, (8) Corporate Governance and Integrity Management. Among these, "Agricultural Supply Chain Sustainability Management" was listed in the top five for the first time this year, reflecting that supply chain carbon management has become the most concerned disclosure item for institutional investors.
For the eight material topics, the Company sets specific quantitative targets and tracks them quarterly. For example, the carbon management target is a 25% reduction from the baseline year by 2025 (18.3% already achieved ahead of schedule); the food safety target is zero major food safety incidents (continuously achieved); the water resource target is a further 10% reduction in water intensity by 2026; and the packaging material circularity target is to achieve 100% recyclable or reusable packaging materials by 2025.
The materiality analysis adopts a Double Materiality perspective, with the horizontal axis measuring the degree of impact of issues on corporate finance, and the vertical axis measuring the degree of impact on the environment and society. Issues scoring 3.5 points (out of 5) or higher on both dimensions are placed in the upper-right quadrant of the matrix and defined as material topics. This year's matrix analysis methodology received external review comments from the Deloitte Risk Advisory team, ensuring that the identification process meets the rigorous requirements of GRI 3 Material Topics disclosure standards.
Comprehensively upgrade the food safety management system version and strengthen the traceability mechanism to ensure consumer food safety and trust.
Address physical and transition risks brought by climate change through TCFD scenario analysis and concrete carbon reduction measures.
Strengthen carbon management and human rights due diligence in the agricultural supply chain, working with contract farmers to jointly advance towards sustainable transformation.
Promote an increase in the proportion of recyclable and reusable packaging materials, reducing single-use plastics and packaging waste.
Reduce production water intensity and enhance water resource resilience through wastewater recycling and rainwater harvesting technologies.
Invest in employee training and compensation fairness to create an attractive workplace with high retention rates.
Fulfill the company's commitment to local community food security through food banks and rural revitalization programs.
Strengthen board diversity and anti-corruption management mechanisms to implement ethical operations and transparent governance.