Overview
We adhere to the GRI 2021 Sustainability Reporting Standards and reference the European Sustainability Reporting Standards (ESRS) published under the European Union's Corporate Sustainability Reporting Directive (CSRD), applying the principle of Double Materiality. Through a three-step process of "identification, assessment, and confirmation," we identify material topics, thereby determining the scope of disclosures in our sustainability report. This process also enables us to respond to and review the sustainability performance of Chicony. In accordance with the recommendations of IFRS S1, we will reassess our significant topics in the event of major changes or developments, including significant changes in the value chain, operational activities, or corporate structure, as well as substantial changes in exposure to sustainability-related risks and opportunities. If no such changes occur, we will evaluate annually whether any special adjustments are necessary.
1
Identification
Based on the "Chicony Sustainable Strategy Blueprint," as well as internal management goals, stakeholder communication, external sustainability regulations and standards (detailed below), legal requirements, value chain considerations, and industry characteristics, a total of 20 sustainability topics have been identified.
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International sustainability standards: GRI, SASB, TCFD, TNFD, IFRS
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International initiatives: SDGs, RBA, RE100
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International rankings: CDP, S&P Global, MSCI, Sustainalytics, FTSE4Good
2. Assessment
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(A) Impact on Chicony's Operations
Positive impacts were assessed based on "increased revenue and enhanced brand reputation," while negative impacts were assessed based on "increased costs and diminished brand reputation." A total of 13 questionnaires were distributed to key ESG members within the Group. -
(B) Impact on Sustainable Development
A comprehensive list of potential positive and negative impacts of sustainability issues on the economy, environment, and human rights was compiled. A total of 363 questionnaires were distributed among five major stakeholders, including 174 questionnaires to Chicony, 100 questionnaires to Chicony Power, and 74 questionnaires to XAVI.
3
Confirmation
To concentrate resources and more precisely address sustainability risks, we have identified ten material sustainability issues this year through analysis, representing a reduction of two material topics compared to last year. These issues were approved by the Corporate Sustainable Development Committee in May 2025 and confirmed in a report to the Board of Directors (BOD) as material topics for Chicony. This will serve as the foundation for the sustainability report and will also inform the IFRS analysis of financial impacts. Furthermore, based on the significance and strategy of these major topics, we will articulate our management policies and objectives, using this framework for long-term tracking.
- Environment: "Energy and Carbon Emission Management" increased in materiality compared to the previous year, reflecting rising expectations from stakeholders; "Climate and Nature Strategy" saw a slight decrease in materiality due to the integration of last year’s non-material topic Biodiversity; "Green and Innovative Products" rose in importance as it remains a key concern for customers.
- Social: "Career Development" was renamed to "Talent Cultivation and Development;" "Diversity and Inclusion" was renamed to "Diverse and Inclusive Workplace;" "Social Engagement" was renamed to "Government Policies and Social Engagement." "Occupational Safety and Health" and "Talent Cultivation and Development" were not designated as material topics this year.
- Governance: The concepts of "Ethical Corporate Management" and "Regulatory Compliance" have been consolidated into “Ethical Management and Compliance.” No other material topics have been altered.
20 Sustainability Issues and 10 Material Topics
Material Topic Matrix
Material Topics Corresponding Table
Contact and Whistleblowing Channels
The Company offers channels for reporting a range of issues. Any illegal activities or actions that contravene the principles of ethical corporate management may be reported either anonymously or
with identification. All related reports will be treated with strict confidentiality to prevent any unfair treatment, retaliation, or threats against the whistleblower. If a report is confirmed to be valid and meets
the criteria for reward distribution, appropriate compensation will be provided.
with identification. All related reports will be treated with strict confidentiality to prevent any unfair treatment, retaliation, or threats against the whistleblower. If a report is confirmed to be valid and meets
the criteria for reward distribution, appropriate compensation will be provided.
Grievance Channels and Handling for Various Issues
Note: The CEO Mailbox is applicable to all vendors engaged in transactions with the Company, including their directors, supervisors, shareholders, managers, employees, individuals with substantial control, and other stakeholders.
