Materiality Assessment
[GRI 2-14 (2021), 3-1 (2021), 3-2 (2021), 3-3 (2021)]
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.
Process to determine Material Topics
EGCO Group is currently in the process of improving its materiality assessment accordingly to the Global Reporting Initiative 2021 (GRI Standards 2021).

EGCO Group conducts materiality review annually
* Include positive and negative impacts on the economy, environment, and people, including impacts on their human rights
1. Identification
EGCO Group reviews the context of its business activities and relationships throughout its value chain as a basis for determining material topics covering economic, social, and environmental aspects. To identify actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on human rights, across activities and business relationships, the identified material topics are aligned with international standards, country and global current situation, and sustainability trends of peer companies in energy and utility sector.
1.1 Understand EGCO’s Context
1.2 Identify Actual and Potential Impacts
2. Prioritization
EGCO Group prioritizes the significance of material topics by considering the level of actual and potential impacts affecting stakeholder positively and negatively. Negative impacts are identified through corporate risk assessment aligning with COSO Enterprise Risk Management - Integrated Framework 2017 (2017 COSO ERM). EGCO Group’s materiality assessment is conducted based on the principle of double materiality by taking in account the financial impact of key risks from enterprise risk management In addition, EGCO Group is currently in the process of integrating results from materiality assessment into the Company’s enterprise risk management process.
As part of the materiality assessment process, EGCO Group has identified 6 stakeholder groups including employees, shareholders, suppliers & business partners, customers, investors, and communities. Furthermore, to take into account the impacts of business operations on relevant stakeholder groups, including human rights impacts, EGCO Group conducts human rights risk assessment to identify vulnerable groups and individual rights across EGCO’s activities and business relationships. EGCO Group is in the process of revising its human rights risk assessment and is expected to be completed in 2023.
EGCO Group has commissioned a third-party expert to compile and analyze opinions on impacts related to material sustainability topics to ensure that the results are unbiased. The material topics are divided into 3 levels of significance as follows, High: Value Creation, Medium: Enabler, and Low: Foundation
2.1 Prioritize the Significant Impacts
2.2 Assess the Significant of the Impacts
Identify impacts on Human Rights across EGCO’s activities and business relationships
Material Topic | Issue | Vulnerable Group | Individual Human Rights* |
---|---|---|---|
Opportunities in Competition | Not observed based on Human Rights Risk Assessment | - | - |
Climate Change & GHG Emission | Community Standard of Living |
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Human Capital Development, Labor Practice & Talent Attraction | Employee Working Condition Discrimination and Harassment Freedom of Association and Collective Bargaining |
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Risk and Crisis Management | Not observed based on Human Rights Risk Assessment | - | - |
Power Generation Stability & Capability | Emplyee/Contractor Health and Safety Community Standard of Living Land Acquisition and Forced Resettlement Security Practice |
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Corporate Governance | Not observed based on Human Rights Risk Assessment | - | - |
Occupational Health & Safety | Employee/Contractor Health and Safety |
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Digital Transformation & Innovation Management | Not observed based on Human Rights Risk Assessment | - | - |
Corporate Citizenship | Community standard of living Community Health and Safety |
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Energy Management | Not observed based on Human Rights Risk Assessment | - | - |
Supply Chain Management | Contractor Working Condition Contractor Health and Safety Discrimination and Harassment Vendor Discrimination |
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Date Security & Privacy | Data Privacy |
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Water & Wastewater Management | Community Standard of Living Community Health and Safety |
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Human Rights & Due Diligence | Employee/Contractor Working condition Employee/Contractor Health and Safety Discrimination and Harassment Freedom of Association and Collective Bargaining Illegal Forms of Labours Vendor Discrimination Community Standard of Living Land Acquisition and Forced Resettlement Security Practice Data Privacy |
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Waste & Hazardous Waste Management | Community Standard of Living Community Health and Safety |
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*Reference: IFC Guide to Human Rights Impact Assessment and Management (HRIAM)
3. Validation
EGCO Group has validated the material topics and their impacts in economic, environment, social, and human rights aspects across the value chain. The validation aims to ensure that the material topics cover and are aligned with impacts created from EGCO Group’s activities as referenced in the energy and utility sector. The material topics have been endorsed by EGCO Group’s senior management.
Sustainability Material Topics
In 2022, EGCO Group identified 15 material sustainability topics. The number goes down from 16 a year earlier because climate change and GHG emission topics are merged on ground that they are in fact related in terms of management and results. Other material topics remain unchanged, but its level of significance has been adjusted in response to changing situation.
Further details of the level of significance and impacts for EGCO Group’s 2022 material topics are as follows:
High: Value Creation
Material topics that create value and have high impacts on EGCO Group’s stakeholders and businesses.
Medium: Enabler
Material topics that create value and have high impacts on EGCO Group’s stakeholders and businesses.
Low: Foundation
Material topics that form the foundation of management and have low impacts on EGCO Group’s stakeholders and businesses.
Material Topic | EGCO | Stakeholders | Impact Level |
---|---|---|---|
Opportunities in Competition | 0.76 | 0.71 | High: Value Creation |
Climate Change & GHG Emission | 0.60 | 0.72 | High: Value Creation |
Human Capital Development, Labor Practice & Talent Attraction | 0.73 | 0.49 | High: Value Creation |
Risk and Crisis Management | 0.19 | 0.57 | Medium: Enabler |
Power Generation Stability & Capability | 0.51 | 0.45 | High: Value Creation |
Corporate Governance | 0.35 | 0.47 | Medium: Enabler |
Occupational Health & Safety | 0.36 | 0.37 | Medium: Enabler |
Digital Transformation & Innovation Management | 0.44 | 0.41 | Medium: Enabler |
Corporate Citizenship | 0.28 | 0.37 | Medium: Enabler |
Energy Management | 0.28 | 0.30 | Medium: Enabler |
Supply Chain Management | 0.19 | 0.38 | Medium: Enabler |
Data Security & Privacy | 0.16 | 0.25 | Low: Foundation |
Water & Wastewater Management | 0.19 | 0.15 | Low: Foundation |
Human Rights & Due Diligence | 0.09 | 0.24 | Low: Foundation |
Waste & Hazardous Waste Management | 0.12 | 0.13 | Low: Foundation |
4. Review
In developing and preparing this report, EGCO Group has reviewed the completeness and accuracy of contents, cross-checked by its Board of Directors as well as an external organization. An independent external organization has audited the process of materiality assessment, stakeholder engagement, and performance data to ensure the report is factual, transparent, accurate, and in alignment with the reporting standards.
Impact Level | Disclosure |
---|---|
High: Value Creation |
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Medium: Enabler |
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Low: Foundation |
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List of Material Topics
- Economic resilience, development, & growth, financial value creation
- Opportunity in low carbon energy
- Capital and investment
- Business model resilience
- ESG Investing
- Operations
- Products/Services
(One Report - Investment Risk)
High
- Financial impact level: Medium
- Debt to EBITDA
- EGCO Interest Coverage Ratio
- Variance of EGCO’s D/E
- EGCO’s Share Price per Book Value
- Investor
- Customer
- Shareholder
- Supplier & Business Partner
- Employee
GRI 201: Economic Performance (2016): 201-1
For more information, please see Climate Strategy and Opportunities in Competition Overview
One Report: Opportunities in Competition
- Electricity generation
- Ensuring the quality, security & continuity of the electricity
- Strengthening transmission and distribution
- Operational excellence
- Power Generation Impact Valuation
- Operations
- Products/Services
- Supply Chain
(One Report - Power Plant Efficiency Risk)
High
- Financial impact level: High
- Effect to Earning Loss of EGCO
- Effect to Earning Loss of each individual project
- Latest cost overrun amount
- Investor
- Community
- Customer
- Employee
GRI 2: General Disclosures (2021)
For more information, please see Power Generation Stability & Capability Overview
One Report: Power Generation Stability & Capability
- Innovation business environment, inclusive digital solution, digitalization, innovation and technology
- Digital inequality
- Improving business resilience through technology
- Connectivity, Digitization
- Operations
- Products/Services
(Emering Risk 2022)
Medium
-
- Community
- Supplier & Business Partner
- Shareholder
- Employee
GRI 2: General Disclosures (2021)
For more information, please see Digital Transformation & Innovation Management Overview
- Code of conduct, Business ethic & integrity
- Anti-corruption
- Whistleblowing
- Operations
- Supply Chain
Medium
-
- Investor
- Supplier & Business Partner
- Shareholder
- Employee
GRI 2: General Disclosures (2021)
GRI 205: Anti-corruption (2016): 205-2 205-3
GRI 206: Anti-competitive behavior (2016): 206-1
For more information, please see Corporate Governance Overview
- Security & quality of supply
- Sustainable & resilience supply chain
- Redesign value chain for more sustainable goods
- Management of business partner
- Supply Chain
(One Report - Products and Services Procurement Procedure Risk)
Medium
- Financial impact level: High
- Effect to Earning Loss of EGCO
- Effect to Earning Loss of each Construction Project
- Customer
- Supplier & Business Partner
- Shareholder
- Employee
GRI 308: Supplier Environmental Assessment (2016): 308-1
GRI 414: Supplier Social Assessment (2016): 414-1, 414-2
For more information, please see Supply Chain Management Overview
- Systemic risk management
- Critical incident risk management
- Business continuity management
- Effect from COVID-19
- Operations
- Products/Services
- Supply Chain
(One Report - Accidents, Resistance, Sabotage, and Natural Disasters Risks)
Medium
- Financial impact level: Medium
- Fund from Operation (FFO) to Debt (%)
- Debt to EBITDA
- Investor
- Community
- Customer
- Supplier & Business Partner
- Employee
GRI 2: General Disclosures (2021)
For more information, please see Risk and Crisis Management Overview
- Cybersecurity
- Privacy protection, information/data security
- Operations
- Products/Services
- Supply Chain
(Emerging Risk 2022)
Low
- Financial impact level: Medium
- Revised IT Master Plan Budget
- Community
- Employee
GRI 418: Customer Privacy (2016): 418-1*
For more information, please see Privacy Protection and Cybersecurity Overview
* External assurance
- Climate action, policy, strategy, natural climate solution
- Long-term climate adaptation, clean energy future
- Operational eco-efficiency, pollution management, biodiversity, forest restoration
- Long-term commitments to climate change and GHG reduction, Scope 3 emission reduction
- Climate Impact Valuation
- Operations
- Products/Services
- Supply Chain
(Emering Risk 2022)
High
- Financial impact level: Medium
- Effect to Earning Loss of EGCO
- Effect to Business Interruption
- Investor
- Community
- Supplier & Business Partner
- Shareholder
- Employee
GRI 305: Emission (2016): 305-1*, 305-2*, 305-3*, 305-7*
For more information, please see Climate Strategy and Opportunities in Competition Overview
One Report: Climate Change
- Energy efficiency in eco-production process
- Energy system structure, energy access, energy intensity
- Transmission and distribution
- Decarbonization of energy mix
- Operations
- Products/Services
- Supply Chain
Medium
-
- Investor
- Supplier & Business Partner
GRI 302: Energy (2016): 302-1*, 302-3*
For more information, please see Energy Efficiency Management
- Water-related risks, water availability, water stewardship
- Operations
- Products/Services
- Supply Chain
(One Report - Raw Water Shortage Risk)
Low
-
GRI 303: Water and effluents (2018): 303-3*, 303-4*, 303-5*
For more information, please see Sustainable Water
- Circular economy, reuse and recycling materials
- Waste & hazardous material management
- Operations
- Products/Services
Low
-
- Investor
GRI 306: Waste (2020): 306-3*, 306-4*, 306-5*
GRI 306 Effluents and Waste (2016): 306-3*
For more information, please see Waste & Hazardous Waste Management
* External assurance
- Future of work e.g. workforce management, people analytics
- Human capital participation
- People management and motivation, workforce development & well-being, Employee stewardship, workforce stability, Labor Practice Indicator
- Talent attraction and retention
- Diversity & equal opportunity
- Wage & benefit
- Operations
- Products/Services
(One Report - Human Resources Risk)
High
-
- Employee
GRI 404: Training and Education 2016: 404-1
GRI 405: Diversity and Equal Opportunity 2016: 405-2*
For more information, please see Our Employees Overview
One Report: Human Capital
- Infectious disease
- Workplace health and safety
- Promoting well-being in workplace
- Safety management for employees
- Operations
- Products/Services
- Supply Chain
(One Report - Safety, Health, Environmental, and Social Risks that Must Comply with International Standards)
Medium
-
- Employee
- Supplier & Business Partner
- Community
GRI 403: Occupational Health and Safety (2018): 403-9*
For more information, please see Occupational Health & Safety Overview
- Social cohesion and engagement
- Corporate citizenship and philanthropy
- Social license to operate
- Creating social value
- Community engagement and involvement
- Impact on local community
- Operations
- Products/Services
Medium
-
- Community
- Customer
- Supplier & Business Partner
GRI 413: Local Communities (2016): 413-1
For more information, please see Corporate Citizenship Overview
One Report: Corporate Social Responsibility
- Protecting fundamental rights
- Human rights respect and promotion
- Human rights risk assessment (including supply chain)
- Operations
- Products/Services
- Supply Chain
Low
-
- Employee
GRI 2: General Disclosures (2021)
For more information, please see Human Rights Overview
* External assurance