CLC's senior management and the sustainability committee Taskforce annually identify stakeholders and material issues, following GRI Standards (2021) and the EU Double Materiality principle to determine issues with significant impacts on both CLC and external economic, environmental, and social factors. Stakeholder scoring references the AA1000 Stakeholder Engagement Standard 2015, applying the principles of dependency, responsibility, tension/concern, influence, and diverse perspectives. The Taskforce conducts interviews with the Chairperson, President, and management, and completes stakeholder identification questionnaires to identify six main stakeholder groups: employees, customers, shareholders/investors/financial institutions, suppliers/contractors, government/industry associations, and society (media, neighboring communities, non-profit organizations, academic institutions). CLC engages these stakeholders through multiple channels, both regularly and as needed, to gather expectations and inform sustainability issue and impact assessments. The 2024 materiality identification process, analysis, and results are as follows:

CLC collected stakeholder and expert feedback, reviewed and adjusted stakeholder categories and concerns, and in 2024 issued a material issue identification questionnaire to internal and external stakeholders to evaluate 20 sustainability topics. Topics with significant impact on both CLC and the economy, environment, or people were defined as material issues. The Sustainability Task Force consolidated these into 12 and developed a materiality matrix. The sustainability team and external consultants identified positive and negative impact events for these material issues across economic, environmental, and social (including human rights) dimensions. Senior management and the Sustainability Taskforces assessed the scale, scope, impact, and likelihood of each event, considering financial or operational benefits for positive impacts and potential financial loss or operational disruption for negative impacts. The sustainability team integrated stakeholder input, company policy, and consultant advice to focus on 6 material issues: climate change action, energy management, waste resource utilization, sustainable products and development, supply chain management, and talent cultivation and development. The material issues identification and impact analysis results were submitted to the Board of Directors for approval.



CLC 2024 Material Issues Assessment: Major Positive and Negative Impacts

For material issues with significant positive or negative impacts, CLC establishes management policies, formulates action strategies, sets quantitative indicators, and regularly tracks results. Other material issues are disclosed to stakeholders through existing management processes and relevant indicators to facilitate understanding of CLC's overall sustainability performance.

CLC addressed material issues of 6 key stakeholders in this report and disclosed relevant information through the official website and multiple platforms to facilitate stakeholder engagement.