EGCO Group conducts materiality assessment annually with consideration to related internal and external operations, including potential impacts they can have on the Company, stakeholders, society, and the environment, as well as the relevant topics regarding stakeholders’ expectations. The materiality topics assessed covers the aspect of economic, social, and environment (ESG). The identified materiality issues will be determining EGCO Group’s business direction and use as a framework for the development of One Report on the topics related to sustainability development.
EGCO Group’s process of materiality topics identification is in accordance with the Global Reporting Initiative Standards (GRI Standards) comprises of 4 steps, namely Identification, Prioritization, Validation, and Review. The materiality assessment is conducted annually for business continuity with up-to-date materiality topics.
EGCO Group assesses the material issues in economic, social, and environmental aspects that may positively or negatively impact the Company, as well as the COVID-19 pandemic. The assessment is conducted with consideration to internal and external risk factors, alignment with the international standards, the national and international trends in sustainability, and peer companies in the power and infrastructure sector.
EGCO Group ranks material issues by 2 factors: 1) the interest or expectation of internal and external stakeholders and 2) the alignment with international standards and probability on a national and international level. The topics are then ranked by their impacts on the ESG and develop into a Materiality Matrix based on their importance.
Selected external stakeholders help validate the correctness of the materiality matrix after the prioritization process. The validated materiality issues are then reported to the Executives, who will review them with consideration to the Company’s strategies and goals before approving the materiality matrix for public disclosures. After the approval, material issues are organized with respect to their context in alignment with the GRI (Global Reporting Initiative Standards) and the UN’s SDGs. The scope of reporting on each topic is then established.
EGCO Group develops a report and review its content integrity, double-checked by the board and external organization. An independent organization will audit the materiality assessment, stakeholder engagement, and data analysis processes before public disclosure to ensure the report is factual, transparent, and sufficient, in alignment with the reporting standards.