Materiality Identification and Analysis

BenQ Materials conducts a sustainability impact assessment every two years to review and identify high-impact issues that serve as the basis for formulating its sustainability strategies and action plans. For each key issue, the Company sets short-, medium-, and long-term goals to guide continuous improvement. In 2024, the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards and the European Sustainability Reporting Standards (ESRS) were officially released. Consequently, BenQ Materials has based its approach on "GRI 3: Material Topics 2021" while also considering the guidelines from IFRS and ESRS regarding sustainability impacts. Utilizing the principle of "Double Materiality," the Company incorporates sustainability impacts into both Impact Materiality and Financial Materiality. A five-stage identification process is conducted to assess the impact of BenQ Materials' operational activitieson various sustainability dimensions, including social, environmental, human, and human rights impacts (external impacts). Additionally, the financial impacts (internal impacts) resulting from external impacts require management to allocate resources. The analysis weighs both internal and external impacts to produce a sustainability impact analysis result, which is then used to prioritize material sustainability issues for reporting.

In 2025, BenQ Materials held an annual discussion about material issues. Following the Q4 ESG Committee meeting, "talent attraction and retention" was elevated from a secondary to a material topic. The other material topics remained consistent with the previous reporting year. According to the biennial sustainability impact assessment plan, the next full assessment is expected in 2026.
   

Materiality Identification and Analysis

 

 

Material Topics Identified and Disclosed

Based on the results of the 2024 impact analysis, which adopted the double materiality assessment methodology for the first time, the Company identified a total of 9 negatively material topics and 8 positively material topics. In addition, 3 negative and 4 positive topics were classified as secondary material topics for ongoing monitoring.

The 9 topics with significant negative impacts—Climate Strategy, Diversity and Inclusion, Sustainable Supply Chain, Innovation Management, Product Responsibility, Information Security, Product Safety and Marketing, Quality Management, and Business Ethics and Integrity—are prioritized for disclosure in this report, including their management approaches and implementation outcomes.

In addition, following comprehensive discussion and evaluation by the ESG Committee in 2025, Talent Attraction and Retention was included as the 10th topic, serving as a key focus for the Company’s continued enhancement of management and disclosure.

 

Mapping of Material Sustainability Topics to Reporting Standards

We reviewed the 31 GRI Sustainability Reporting Standards topic standards and aligned them with our material issues. We selected six relevant GRI topic standards and four self-defined topics. Then, we performed the mapping in accordance with the SASB industry standards for the hardware and medical equipment and supplies sector to begin preparing this report.

 

External Impact Valuation

BenQ Materials evaluates selected climate-related external impacts by applying impact valuation to greenhouse gas (GHG) emissions and avoided emissions. The assessment converts GHG outputs expressed in metric tons of CO₂ equivalent (tCO₂e) into monetary estimates of their impacts on society and the environment.

The valuation applies the Greenhouse Gas Emissions Topic Methodology developed by the International Foundation for Valuing Impacts (IFVI) in partnership with the Value Balancing Alliance (VBA). For GHG emissions occurring in 2025, BenQ Materials applies the methodology's average value factor of US$244 per metric ton CO₂e (expressed in 2023 U.S. dollars). The value factor represents the estimated societal cost associated with GHG emissions, including climate-related impacts on people and the natural environment.

Climate Strategy

In 2025, BenQ Materials implemented 13 electricity-saving projects and three natural gas-saving projects. These initiatives achieved annual reductions of 309.37 tCO₂e and 927.42 tCO₂e, respectively, resulting in total avoided GHG emissions of 1,236.79 tCO₂e.

Applying the 2025 GHG value factor of US$244/tCO₂e, the avoided emissions correspond to an estimated climate-related societal benefit of approximately US$301,777. This represents the estimated social cost of GHG emissions avoided through the Company's energy-saving initiatives.

Sustainable Supply Chain

In 2025, BenQ Materials' Scope 3 Category 1 Purchased Goods and Services emissions totaled 130,319.23 tCO₂e. These upstream emissions represent a material climate-related external impact associated with the Company's supply chain.

Applying the same 2025 GHG value factor of US$244/tCO₂e, the estimated climate-related societal cost associated with Scope 3 Category 1 emissions was approximately US$31.80 million.

Valuation Method

Climate-related societal impact = GHG emissions or avoided emissions (tCO₂e) × US$244/tCO₂e

The monetary values represent estimates of external societal and environmental impacts and should not be interpreted as regulatory carbon liabilities, carbon taxes, emissions trading prices, or BenQ Materials' internal carbon price. The assessment is intended to provide an impact-based monetary representation of selected climate-related externalities.
 

Material Issue	External Impact	2025 Output Metric	Impact Valuation	2025 Impact Metric
Climate Strategy	Reduced climate-related impacts on society and the environment	1,236.79 tCO₂e avoided	US$244/tCO₂e	US$301,777 societal benefit
Sustainable Supply Chain	Climate-related impacts from upstream purchased goods and services emissions	130,319.23 tCO₂e	US$244/tCO₂e	US$31.80 million societal cost