Every year, KTB follows the 4 main principles of GRI Standards of stakeholder inclusiveness, sustainability context, materiality, and integrity to review its sustainability issues and carry out materiality analysis, through the 3 main steps of identification, sequence, and confirmation. Thereby, KTB reviews its sustainable development results and timely adjusts the sustainable development strategies and long-term goals. These will serve as the preparation guidelines for the Sustainability report.

Stakeholder Identification and Communication

With reference to the stakeholder identification of the companies in the same industry, KTB identifies the possible stakeholder groups. Then through the discussion on ESG Team meetings, we identify 6 types of stakeholders, taking into consideration the impact of the functions of each business on the operation of KTB, or the internal or external organizations, or individuals who are affected by KTB's operation, which are customer, employee, investor / shareholder, governmental agency, supplier, general public / social welfare organization, respectively, and report the communication condition with the stakeholders to the Sustainable Development and Nomination Committee and the Board of Directors once half a year.

Material Issue Analysis

The Company has sorted out 36 positive and negative impacts related to KTB based on stakeholder concerns, and has conducted analysis and drawn an impact significance matrix. Following discussions in the ESG Team meetings, we have identified 9 significant issues closely related to the operations of KTB's industry. Compared to 2022, one material issue - "Employee Care and Friendly Workplace" - has been removed. This decision was primarily influenced by the fact that this issue did not show significant impacts across all six categories of stakeholders in the positive and negative impact assessment. The detailed information is illustrated in the diagram below, where the blue boxes represent significant positive and negative impacts, which are actual impacts, while the others represent potential impacts. The results have been reported to the Sustainable Development and Nomination Committee and the Board of Directors.

For each material issue, we identity its impacts on KTB, and set management strategies, short-, medium-, and long-term goals, and track the execution results quarterly through the ESG team to continue to implement KTB's sustainable plans. Please refer to the following table for relevant achievements or refer to the operational approach to sustainable development strategies.