The identification of Asia Cement Sustainable issues includes both internal and external.

Referring to the five-aspects specified in AA 1000 Stakeholder Engagement Standard (2015), Corporate Sustainability Committee evaluates stakeholders’ materiality to Asia Cement, including dependency, responsibility, tension, influence, and diverse perspectives. The top 5 categories of stakeholders are identified after the weighted evaluation: employees, investors/shareholders, customers, local communities and aboriginal people and partners.

Double Materiality Assessment and Confirmation of Material Topics

In accordance with the double materiality principle of the European Sustainability Reporting Standards(ESRS), the assessment considers both:Impact materiality (external perspective): evaluating how the organization’s activities impact the world; and Financial materiality (internal perspective): evaluating how sustainability-related matters impact the organization’s financial performance. For impact materiality, each topic was assessed based on its level of impact on:the economy (e.g.,revenue),the
environment,people (including human rights), and stakeholders. For financial materiality, the assessment focused on the direct financial impact that each sustainability topic may have on the organization.

Asia Cement determine material topics as those scoring 2.8 or higher in impact materiality and 2.6 or higher in financial materiality. Given that issues such as local communities, indigenous rights, incident management, biodiversity, and water and effluents were of high concern to stakeholders, they have been designated as Asia Cement’s specific topics. In 2024, the list of material topics was adjusted in accordance with GRI 14: Mining Sector Standards, and new topics were also evaluated. Based on the assessment and prioritization, Asia Cement identified a total of 15 material topics, including 6 positive topics and 9 negative topics.

Confirming And Reviewing The Completeness Of Material Topics

Corporate Sustainability Committee, supervised by the Board of Directors, is Asia Cement’s decision making center for promoting sustainable governance. General Manager acts as the Chairman of Corporate Sustainability Implementation Committee who is responsible for the approval of ESG annual plans and the supervision of ESG implementation results. He reports to Corporate Sustainability Committee and Board of Directors every six months. Through the routine team meetings and reports, all task forces in the Promotion Committee review and report the influences of various issues to the Company and the corresponding methods in order to promote and reach the vision of the Company’s sustainable goals.The report will be issued after external assurance and review by the Board of Directors.

The engagement mechanism for the status of communicating with stakeholders