Material Issue Identification Approach

01 Issue Identification

CPN identifies material issues, risks, and opportunities related to sustainability by analyzing external factors such as global trends in the same or related business segment, change in consumer behavior, and trends of market competition, together with internal factors like performance, weaknesses, and strengths. Also, taken into consideration are risk indicators at corporate levels and key issues gained from stakeholders’ comments, recommendations, and key stakeholders’ engagement.

02 Evaluation

The Division of Excellence and Sustainable Development jointly evaluates material issues, risks, and opportunities with related units in small groupmeetings. This aims to consider the impacts and review importance levels from the perspectives of external stakeholders. It assesses opportunities and economic, environmental, and social impacts caused by CPN’s business, giving the score from 1 to 5. The importance of issues is considered at three levels taken from stakeholders’ perspectives.

03 Prioritization

The Risk Policy Committee, CG-SD Committee, and external experts join a workshop to verify if all material issues are included and prioritized, based on the perspectives of stakeholders and CPN executives. The material issues, risks, and opportunities, under the scope of internal and external impacts are then approved and confirmed.

04 Review and Report

Once sustainability missions and risk management are implemented, CPN monitors and analyzes the performance and gathers information from stakeholders’ comments to review the priority for CPN business and stakeholders. CPN presents the implementation progress to the CG-SD Committee and presents results from risk analysis and risk management plan to the Risk Policy Committee and the Risk Management Committee on a quarterly basis.