TWSE Guidelines for the Preparation of Material Topics in Sustainability Reports

Based on Article 3 of the "Regulations Governing the Preparation and Filing of Sustainability Reports," these are official guidelines to help companies comply with GRI 3: Material Topics. They provide a framework to effectively identify and assess operational impacts on the economy, environment, and people, and to determine the material topics for disclosure.

This is a mandatory compliance process for listed companies. Improper identification of material topics can lead to sustainability reports that fail to meet regulatory requirements, affecting corporate governance evaluation scores. Furthermore, inaccurate disclosures can mislead investors (e.g., in MSCI, DJSI ratings) and customers, impacting financing conditions and supply chain orders, thus creating tangible financial risks.

• GRI 3: Material Topics: The primary reference for these guidelines, providing the framework for identifying material topics. • ISO 31000: Risk Management: The guideline's process of "identifying impacts," "assessing significance," and "prioritizing" aligns with the risk management principles of risk identification, analysis, and evaluation. • SASB Standards: The guidelines recommend referencing international standards like SASB to identify industry-relevant sustainability issues.

Winners Consulting is Taiwan's pioneering firm integrating ERM, industrial engineering, technology law, and data science. Our unique preventive law approach helps companies vertically integrate GRI materiality analysis with existing ISO management systems, corporate governance, and internal controls. This not only ensures compliance but also transforms sustainability risks into operational resilience, avoiding redundant frameworks.