Material Topics

Identification and Responses to Material Topics

The THSRC Sustainability Report follows the GRI General Guidelines 2021 issued by the Global Sustainability Standards Council, and carries out a major thematic analysis based on the following steps to assess the significance of the positive and negative impacts of Material Topics in terms of economy, environment and human rights, so as to confirm the scope of the report's disclosure and review the effectiveness of sustainable business.

Process to determine material topics

Analysis Steps Description
Understand the organization's context Based on the list of sustainability issues identified in 2021, THSRC commissioned an external professional sustainability consultant to refer to the major themes of the railway transportation industry listed by the Sustainable Accounting Standards Board (SASB), the sustainability requirements of international sustainability evaluation such as the Dow Jones Sustainability Index (DJSI), domestic regulations and trends, and the major themes disclosed by international railway transportation benchmarking companies, and confirmed that these 19 sustainability issues are still in line with the industry and global sustainability trends.
Redefine and identify actual and potential impacts In response to the GRI (2021) G3 materiality topic identification revision, which emphasizes the impact of sustainability issues on the external economy, environment and society, we examined 19 topics and refocus each issue according to the potential positive and negative economic, environmental, population and social impacts. After refocusing, the list of 19 issues defined 12 positive influences and 10 negative ones, and 22 positive and negative ones were separately identified.
Assess and prioritize the most significance of the impacts ・A total of 28 units within THSRC evaluated the impact and likelihood of 22 positive and negative impacts on the two axes, assessing the actual and potential positive and negative impacts of the issue and comprehensively considering the impact and likelihood of impacts on the economy, environment and population (including human rights).
・The degree of impact takes into account the magnitude of the impact of the issue, i.e., the value chain link of the impact (e.g., whether it involves multiple value chains), the significance of the impact and whether it can be comprehensively assessed through relevant management measures such as mitigation or remediation; the likelihood of occurrence takes into account the number and frequency of relevant shocks in the past.
・After considering the magnitude of the impact and the likelihood of occurrence, the quantitative data were compiled and ranked in order of importance, divided into key issues, important issues and issues of continuing concern.
Adjust and determine material topics for reporting ・External sustainability consultants provided recommendations for adjusting the position distribution of issues make adjustments according to their recommendations.
・At the same time, the management of THSRC put forward corrective opinions on the perspective of its influence on the company's strategy and operational performance and the height of management.
・Based on the defined impacts and analysis results, a total of 13 Material Topics were selected. Among them, "key topics" and "important topics" form the scope of materiality disclosures in this report. On the other hand, items in “topics of continuous concern” are regarded as non-material topics, where in principle, these items will not be disclosed in this report. However, non-material topics which significantly impact material topics will still be properly explained and disclosed in this report.
Approval and determined material topics Submit the results of the analysis to the Corporate Governance and Nomination Committee and, ultimately, to the Board of Directors to identify the key themes of this year's Sustainability Report.

Materiality Matrix (integration of positive and negative impacts)