How to identify SCG key issues
Stakeholder Engagement
Our stakeholder groups are identified not only as those who are directly affected by the organization’s operations or communities adjacent to its operation sites, but also as those far afield who give importance to the conduct of the organization’s business. We see that stakeholders’ needs are opportunities to create shared value, as well as to support SCG business in the long term while leveraging our society to a sustainable future.
Stakeholders are those who affect and/or could be affected by SCG’s operations such as customers, employees, suppliers, surrounding communities, shareholders, government agencies, and civil society/academics.
Risk Management
SCG has put into practice an enterprise risk management framework that is based on internationally accepted standards. The importance of this activity is highlighted by its integration into SCG’s management system and its maximization of values to stakeholders through risk management.
To identify and evaluate potential risks in the organization, SCG has categorized the risks into eight categories and established the risk appetite to create a common language for everyone in the organization. We focus on both the downside impact and business opportunity of a risk event and the incorporation of risk management as part of working processes, leading ultimately to a risk culture.
From risk categories, issues for SCG have been identified in order to evaluate and prioritize for our materiality.
Materiality
SCG used a ‘materiality matrix’ to map the issues that our stakeholders are most concerned about against those that have the biggest overall impact on business. SCG then applied the materiality principle to each key issue to help identify and prioritize the most significant ones.
SCG is committed to conduct its businesses in conformance with the Sustainable Development Guidelines in line with visions, and to meet the needs of internal and external stakeholders. Therefore, SCG has collected all relevant sustainability issues, referring to SCG Sustainable Development Framework, Global Reporting Initiatives (GRI) and Dow Jones Sustainability Indices (DJSI), to assess and prioritize materiality through formal and informal processes. SCG adopts GRI-G4 Guideline as a reference to identify and manage the most significant material, sustainability issues and stakeholders in order to meet the needs of all parties appropriately.
The assessment processes of SCG sustainability issues can be divided into steps as follows;
- Collect all relevant sustainability issues to SCG, including issues raised by stakeholders from all events and channels including;
- Opinion Panels of experts from various professions
- Employee Satisfaction Survey
- Community Satisfaction Survey
- Brand Image Survey
- Complaints from stakeholders both internal and external
- Compare sustainability issues with enterprise risks, analyze and identify additional issues.
- Assess sustainability issues based on external stakeholders’ views (Y axis: Importance to stakeholders) by:
- Organize workshops with representatives from all functions, including corporate functions and business units, in order to evaluate possibility and severity of impact from the views of 11 stakeholder groups.
- Organize small group meetings with each function to review materiality of each issue, analyzed by the views of external stakeholder groups.
- Assess sustainability issues from SCG’s views (X axis: importance to SCG) by organizing workshops with representatives from functions and internal experts related to each sustainability issues to analyze and prioritize materiality from the views of SCG, covering material issues both within and outside SCG boundary.
- Plot ‘SCG Materiality Matrix’ with Importance to SCG on the X axis and Importance to Stakeholders on the Y axis, 11 sustainability issues fall into Materiality Matters area.
- Organize meeting with each functions for comments and review the materiality assessment results.
- Propose results from materiality assessment process to SCG Sustainable Development Committee for comments and approval.
Results from materiality assessment illustrate that some material issues are highly importance to both SCG and stakeholders, i.e., Occupational Health and Safety and Risk & Crisis Management. While some issues, stakeholders consider as most importance, where SCG views these issues as risks that can be managed, controlled or prevented, e.g., Air Emission. SCG emphasizes on environmental impact prevention, adopting the most advanced and effective technology to manage and prevent air pollution appropriately and in compliance with laws and regulations. Therefore, environmental impact such as Air Emission is not considered material issue to SCG.
SCG will further improve the materiality assessment approach in collecting, analyzing and prioritizing of those sustainability issues in the next year in order to reflect the most materiality issues, including more participation from stakeholders. This will lead to a better management of materiality issues. Furthermore, SCG will take such issues in consideration to develop its strategies and present these issues in the reports or media that meet the stakeholder interests.
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