Process to Determine Material Topics

According to the requirements of GRI 3 - Material Topics 2021 under the GRI Universal Standards 2021, which are part of the Global Reporting Initiative (GRI) framework, Coretronic is obligated to conduct due diligence. It should disclose in the ESG report the processes through which the company identifies, prevents, mitigates, and addresses its actual and potential negative impacts on the economy, environment, and people (including human rights). Coretronic is also required to document these processes to obtain consensus and approval from relevant internal sustainability organizations within the company. This documentation will serve as the standard process for future identification of material topics.
 

2022 ESG report is written in accordance with the aforementioned GRI standards, and the content has been developed following the redefined process for identifying material topics. In contrast to the previous approach of focusing on the "level of stakeholder concern" regarding issues, the redefined process now emphasizes the "level of impact" as the principle for assessing the materiality of topics. This involves identifying the positive and negative impact levels, the scope of impact, and the likelihood of impact occurrence for each topic.
 

Boundary of the Material Topics

This report is based on the relationship corporate structure and internal supply chain depicted on pages 106-107 of the 2022 annual report. The identification of material topics was then conducted for entities that have substantial production, shareholding of 50% or more, significant impact on the company's economic, environmental, and social aspects, as well as upstream and downstream relationships with the company and control over their operations, including non-controlling and venture capital companies.

• The scope of 2022 ESG report includes Coretronic plants in Taiwan (Headquarters, Chunan Plant, Tainan Plant 1 and 2), plants in China (Kunsha plants: Coretronic Projection (Kunshan), Coretronic Optics (Kunshan); Wujiang plants: Coretronic Display (Suzhou), Coretronic Optotech (Suzhou), and Coretronic Optics (Suzhou), plants of subsidiaries in Taiwan (Optoma, Champ Vision Display, Coretronic Intelligent Cloud Service, and Coretronic Intelligent Robotics).
• In addition, regarding the identification of the scope and boundary of aspects outside the organization, we have selected stakeholder groups that are more important to and correlated with our routine operations from among nine stakeholder groups for identification. These stakeholder groups include customers, suppliers, contractors, and local communities.