Materiality Assessments
MediaTek identify material issues by latest GRI Universal Standards 2021 and AA 1000 Account Ability Principle Standard, including the principles of materiality, inclusiveness, responsiveness, and impact, to identify material issues. We further assessed the impact of each material issues on the economy, environment, and human rights. These materiality is the basis for planning our sustainable development strategies, responses to stakeholders, as well as the basis for information disclosures.
▌Identify Stakeholders
Via assessment of the connection and extent of influence between various stakeholders and MediaTek according to the five principles of AA 1000 Stakeholder Engagement Standard (SES), namely Dependency, Responsibility, Influence, Diverse perspective, and Tension, the company has identified six major stakeholders as communication targets: Customer, Industry/Government/Academic/Research body, Employees, Shareholders and Investors, Suppliers, and Social public/Media.
▌Analytical Flow for Materiality
| Benchmark analysis | Since 2018, we uphold sustainability trends that are similar to our industry peers. Information collected through major sustainability rating institutes, like DJSI, Sustainalytics, CSR Hub, showed a continuation of trend among international peers. (see p.14 of our 2018 CSR Report) |
| Issue identification | We established 24 issues based on the results of our benchmark analysis and ESG issues of concern to stakeholders, with the addition of Information Security this year. |
| Sequence of material issues | The company has put in order material issues, according to frequent
communications between staffers of various units with customers, shareholders, and employees and
domestic and overseas statistics and surveys, in both qualitative and quantitative terms, in the four
major categories. A Material Issue Survey with internal and external stakeholders (2019, 2020, 2022) B Global Employee Survey (2016, 2019, 2021) C Brand Survey (2018, 2019) D Perception Survey of opinion leaders nad the public (2017, 2020, 2022) The aforementioned surveys have been undertaken once every two to three years. We carefully inspect our findings and compare previous accomplishments with new materiality base on the results of these surveys. Multi-channel communication is built into the framework of MediaTek's daily operations to actively respond to our stakeholders. Please see Stakeholder Engagement for more information. |
| Establishment of material issues | Based on results of aforementioned communications and surveys, various working groups of the ESG Committee looked into fundamental reasons and planned corresponding improvement measures, which were finalized by ESG Committee Chair, also CEO, in a meeting in the first half of the year. Via such procedure to respond to stakeholders’ concern, the company makes minor adjustment of material issues annually, according to extent of concern and the effect on operation, and modify sustainability-related projects accordingly. |
▌Assessing and Ranking the Impact of Material Issues
After material issues are finalized, each working group of the Sustainability Committee would evaluate the impact of 11 major issues on the economy, environment and people/human rights, including positive/negative impact and actual/potential likelihood. Impact is then ranked based on the results of evaluation, while the responding measures, short-, mid- and long-term goals, annual results and management guidelines are presented in the report, in accordance with the requirements of GRI 3-3 Management of material topics.
▌Impact Assessment
The materials issues are scored from low, moderate to high based on their impact on the economy, environment, people/human rights. Likelihood of occurrence is categorized into low, moderate, high and existing The results of assessment and summary done by each working group are as follows
▌Impact Quantifying and Ranking
To eectively manage material issues, the ESG Committee employs a quantification methodology. The process begins with a consultation with the management team to gain insights and perspectives. Following this, each material issue is evaluated for its potential positive and negative impact on economic, environmental, and social aspects. These impacts are quantified on a scale of 1 to 3, with 1 representing low impact, 2 moderate, and 3 high. Finally, the scores for each aspect are summed to generate a total impact score for each material issue. This approach allows for a comprehensive understanding of the potential eects of each issue.
