Materiality

Materiality Assessment

In 2022, the Company changed its materiality determination methodology in reference to GRI Universal Standards 2021 GRI 3: Material Topics 2021 in consideration with the Double Materiality and Multi-stakeholder Approach. This is to provide an overview of the operation, including both financial and non-financial impacts on stakeholders, society, and the environment (Outward Impact) and on the business itself (Inward Impact).

The Company has conducted both negative and positive impact identification and identified its actual and potential impacts on the economy, environment, people and society, including impacts on their human rights, across the organization’s activities and business relationships, such as its suppliers and contractors, throughout the value chain. The impact assessment included both actual and potential impacts, and assessed the importance of the impacts by referencing the OECD Due Diligence Guidance for Responsible Business Conduct. AMATA executives, experts in each field from the relevant departments within the organization, together with external sustainability consultants, assessed the significance of the impacts by considering their severity, scope, likelihood, and irremediable character, with information gathered from affected stakeholders.

The Company grouped significant impacts into environmental, social, and governance topics (ESG topics). Additionally, the Company considered further topics arising from stakeholder engagement and external factors that may affect the Company either positively or negatively such as global and regional changes, sustainability trends and directions, materiality of peers in the same industry, topics prescribed in industry standards and sustainability assessments, and issues of global concern.

Materiality Determination Process

The Company incorporated the identified sustainability topics into the materiality prioritization process, referring to the Double Materiality concept and principles of the European Financial Reporting Advisory Group (EFRAG) . The sustainability topics were prioritized by the level of significance of their impact on the economy, environment, people and society, including impacts on human rights or Impact materiality, and the level of significance of the impact of such topics on the Company’s financial performance and long-term value creation, including risks and business opportunities, or Financial-related Sustainability Materiality. Material sustainability topics were determined and presented their significance in the Materiality Matrix, as follows:

Vertical axis (Y Axis): represents the level of significance of ESG impacts on AMATA (Inward impact)
Horizontal axis (X Axis): represents the level of significance of AMATA’s impacts on people and planet (Outward impact)
Bubble size: represents the importance of ESG topics to AMATA’s stakeholders

Materiality Matrix

In 2022, the Company had a total of 19 material topics and categorized the material topics into 3 levels according to the significance of their impacts on the Company and its stakeholders, namely, critical-impact material topics, high-impact material topics, and moderate-impact material topics, with a total of 12, 6, and 1 topic, respectively. From 17 topics in 2021, the number of critical-impact materials topics has been reduced. The 2021 topic of water management has been categorized into two material topics, namely “Industrial water and effluent” and “Catchment protection and rehabilitation”; some topics in 2021 have been renamed for better understanding. There was also new topic this year, which was “Traffic management and road safety”. This year, the human rights impact on stakeholders were taken into consideration in all environmental, social, and corporate governance topics, and it was found that all topics had an impact on the stakeholders’ human rights. As a result, the Company did not classify human rights as a separate topic like it did last year.