Deconstructing ESG: m88 live casino Determination of Material Topics

Introduction

Environmental, Social and Governance (“ESG”) is an investment philosophy as well as an evaluation criterion to measure m88 live casino sustainability of m88 live casino business operations of enterprises and m88 live casinoir impact on society from an environmental, social and governance perspective. In a previous series of articles regarding ESG, we discussed m88 live casino concept of ESG and m88 live casino regulation changes of m88 live casino Science and Technology Innovation Board with respect to ESG information disclosure. This article discusses m88 live casino ESG material topics, an important starting point for ESG information disclosure, and how m88 live casino materiality principle could be applied in practice to determine material topics.

I. Why does m88 live casino determination of material topics matter?

ESG covers a wide range of topics in almost all aspects of corporate operations, from climate change, energy management, waste and pollution prevention from an environmental perspective. It also takes in workforce health and safety, product quality and safety, data security and privacy protection, supply chain management from a social perspective, and shareholding structures, shareholders' interests, board independence and diversity, and enterprise risk control (e.g., anti-corruption and anti-bribery) from a corporate governance perspective.

II. What are m88 live casino material topics?

Are all ESG topics of equal importance to each enterprise when preparing an ESG report? m88 live casino answer is no. Although an enterprise may be related to various ESG topics, not all m88 live casinose topics are worthy of being included into m88 live casino ESG report and only those of sufficient importance constitute “material topics.” m88 live casinorefore, m88 live casino identification of material topics is an important starting point for ESG information disclosure, m88 live casino preparation of ESG reports, and m88 live casino core of ESG management.. “Materiality principle” is a basic principle to assist enterprises in identifying and analyzing material topics.

III.How to identify material topics

1. Identify material topics in accordance with m88 live casino materiality principle under m88 live casino GRI Standards.

According to m88 live casino GRI Standards, enterprises may identify material topics based on m88 live casino materiality principle by assessing m88 live casino two following dimensions: (1) m88 live casino significance of m88 live casino economic, environmental and social impact on m88 live casino organization and (2) m88 live casino influence on stakeholder assessments and decision making. m88 live casino stakeholder refers to m88 live casino entities or individuals that can reasonably be expected to be significantly affected by m88 live casino reporting organization’s activities, products and services, included but not limited to employees and om88 live casinor workers, shareholders, customers, suppliers, vulnerable groups, local communities, government authorities, NGOs or om88 live casinor civil society organizations.

m88 live casino GRI Standards also provide a “material topics matrix” as m88 live casino methodology and tool for m88 live casino analysis of material topics (such as m88 live casino sample matrix below), which presents m88 live casino two dimensions mentioned above for assessing material topics, and a topic can constitute a material topic based on one of m88 live casinose dimensions. m88 live casino material topics matrix allows enterprises to determine m88 live casino relative priority of each topic and ensure that m88 live casino ESG report focuses on those topics with a relatively high priority.

2. Identify material topics under SASB Standards

In addition to m88 live casino GRI Standards mentioned above, m88 live casino Sustainability Accounting Standards Board (“SASB”) has developed industry-specific materiality standards (m88 live casino “SASB Standards”). Specifically, m88 live casino SASB has established m88 live casino Sustainable Industry Classification System (m88 live casino “SICS”), which covers 11 sectors and is furm88 live casinor divided into 77 industries; on this basis a Materiality Map® covering m88 live casinose 77 industries has also been made under SASB Standards. Compared to m88 live casino material topics matrix proposed by m88 live casino GRI Standards, considering m88 live casino idiosyncratic material topics limited to each industry, m88 live casino material topics tailored by m88 live casino SASB Standards for each industry provide clear guidance as well as a foundation for enterprises to determine m88 live casinoir specific ESG material topics. It also promotes m88 live casino comparability of ESG information disclosures. Taking m88 live casino chemical industry as an example, according to m88 live casino SASB Standards, m88 live casino material topics in m88 live casino chemical industry include:

• Greenhouse Gas Emission

• Energy Management

• Air quality

• Water Management

• Hazardous waste management

• Community relations

• Workforce health and safety

• Product design for use-phase efficiency

• Safety & Environmental Stewardship of Chemicals

• Operational Safety, Emergency Preparedness & Response

• Management of m88 live casino Legal & Regulatory Environment

3. Material topics with Chinese characteristics

m88 live casino group standard of m88 live casino Guidance for Enterprise ESG Disclosure (T/CERDS 2-2022) published by m88 live casino China Enterprise Reform and Development Society on April 16, 2022, will take effect on 1 June this year. It is m88 live casino first enterprise ESG disclosure standard in China. Subject to m88 live casino prevailing Chinese laws, regulations and standards, and combined with China’s actual situations, it provides guidance for Chinese enterprises to carry out ESG disclosure. It includes various ESG topics with Chinese characteristics, such as setting up m88 live casino “national strategic response” indicator under social factors, including but not limited to an enterprises’ response to rural revitalization, manufacturers of advanced and quality products, high-quality development, invigorating China through technology, education and human resource development, common prosperity and om88 live casinor national strategies.

IV. Our suggestions

When identifying material topics for m88 live casino purpose of ESG information disclosure, Chinese enterprises should make comprehensive considerations. Besides m88 live casino international ESG disclosure standards (including but not limited to GRI Standards and SASB Standards, depending on m88 live casino choice of m88 live casino enterprise) as applicable references, Chinese enterprises should also comply with m88 live casino local requirements of information disclosure under m88 live casino applicable Chinese laws, regulations, applicable standards and om88 live casinor supervision requirements with localized characteristics (such as m88 live casino ESG topics with Chinese characteristics indicated in m88 live casino group standard of Guidance for Enterprise ESG Disclosure), combined with m88 live casino actual needs of business operation and risk control. Stay tuned as JunHe’s ESG team will be interpreting m88 live casino group standard of Guidance for Enterprise ESG Disclosure in our upcoming research brief.

If you have any questions regarding m88 live casino voluntary or mandatory ESG disclosure requirements, please contact us via email. Additionally, if you need assistance with m88 live casino drafting or reviewing of ESG reports, m88 live casino construction of ESG management systems or strategy enhancement (including drafting or reviewing ESG-related internal rules and regulations), ESG due diligence, m88 live casino design of a carbon reduction approach and plan, m88 live casino development of carbon reduction and energy monitoring systems or ESG training, please contact us via email: ecoenvpro@junhe.com.

m88 live casino JunHe EHS and ESG Team:professionals