CORPORATE SUSTAINABILITY GOVERNANCE
SUSTAINABILITY COMMITMENT AND ORGANIZATIONAL OPERATIONS
EGAT Sustainability Governance Organizational Chart
To enhance sustainable development management, EGAT established a dedicated unit for promoting sustainable development in November 2023, namely the Sustainability Committee, as one of its functional committees. This committee is responsible for reviewing and overseeing the formulation of sustainable development policies, strategies, objectives, or management guidelines, as well as supervising specific implementation plans. The Sustainability Committee is convened by the Chairman of the Board, with three independent directors and the President serving as committee members. The committee has set up an executive team, which in turn has four issue focus groups based on the four major identified issues: Environmental Protection, Social Prosperity, Corporate Governance, and Product and Service. The Executive Team, led by the President as the chief executive, consists of the heads from various departments. It aims to effectively integrate resources and implement the Company's sustainable strategies, jointly promoting environmental protection, social participation, corporate governance, and achieving sustainable development and net-zero goals. The principles for appointing members to the Executive Team mainly consider whether their capabilities can effectively integrate resources and implement the company's sustainable strategies. Executive team members are required to participate in various discussions and educational training sessions intermittently to continuously enhance relevant capabilities.
In 2023, the Sustainability Committee held one meeting to formulate the “2024 Sustainable Development Work Plan”, “Policy of Sustainable Development”, and “Policies and Procedures of Risk Management”. The “2024 Sustainable Development Working Plan” has been reported to the Board of Directors. Going forward, issues related to sustainable development, progress and outcomes of risk management strategies, and strategic objectives will be regularly reported to the Board of Directors.
EGAT plans to incorporate the “Procedures for the Preparation and Verification of Sustainability Reports” into its internal control system in 2024 to ensure the accuracy and completeness of sustainability reports.
IDENTIFICATION OF MATERIAL ISSUES AND STAKEHOLDER COMMUNICATION
EGAT follows the latest edition of the GRI Sustainability Guidelines, domestic and international sustainability trends, and the development of benchmark aviation sector enterprises in identifying major sustainability issues and stakeholder concerns. The Executive Team collects professional insights on the positive and negative impacts of sustainability issues in economic, environmental, and social aspects, including human rights, as well as the level of concern from seven categories of external stakeholders. These factors are considered in assessing the impacts of sustainability issues on EGAT and external economic, environmental, and social aspects. After identification and assessment, EGAT prioritizes the top 10 material topics for 2023. In the future, EGAT will annually identify material topics based on the context of materiality, stakeholder inclusiveness, sustainability context, and completeness. These material topics will be integrated into Enterprise Risk Management (ERM) to more effectively and precisely manage organizational risks and plan short, medium, and long-term sustainable development strategies.
STEP 1 IDENTIFICATION
7 CATEGORIES OF STAKEHOLDERS
Adopting the AA1000SES: 2015 (AccountAbility 1000 Stakeholder Engagement Standard: 2015), stakeholders are categorized based on the five major principles of dependency, responsibility, influence, diversity of perspectives, and tension of concerns, and further defined into 7 major categories: Government/ Competent Authorities, Investors/Shareholders, Employees, Customers, Suppliers, Community (including NGOs/NPOs, and Academic Institutions).
15 SUSTAINABILITY ISSUES
| Environmental | Social | Governance | Products and Services |
|---|---|---|---|
| Climate change governance | Compensation, employee welfare, and labor-management communication | Business integrity and ethics | Product safety and quality |
| Energy and greenhouse gas/carbon emission management | Occupational safety and health management | Sustainable supply chain management | Customer rights and service quality |
| Pollution prevention management | Employee diversity and workplace inclusion | Operational performance | Low-carbon manufacturing and sustainable products |
| Talent development and cultivation | Risk management | ||
| Community engagement and social welfare |
STEP 2 ASSESSMENT
78 QUESTIONNAIRES ON POSITIVE AND NEGATIVE IMPACTS
EGAT’s management and Executive Team quantitatively assess the probability and magnitude of positive and negative impacts of sustainability issues on the economy, environment, and people (including human rights) to evaluate the associated impacts.
260 QUESTIONNAIRES ON STAKEHOLDER CONCERNS
Stakeholders from the 7 categories rate their level of concern regarding the issues on a scale of 1-5, providing insight into the concerns of each stakeholder category. 260 questionnaires were collected, including 187 from employees, 18 from suppliers, 15 from investors/shareholders, 15 from academic institutions, 12 from customers, 7 from communities (including NGOs/NPOs), and 6 from government/competent authorities. Based on statistical analysis, the top 5 major topics of concern for external stakeholders, ranked by score, are product safety and quality, occupational health and safety management, customer rights and service quality, operational performance, and risk management
STEP 3 PRIORITIZATION
The questionnaires on positive and negative impacts are prioritized based on importance, and the results of the stakeholder concern questionnaires are considered to identify 10 sustainability issues as material topics for the current year.
STEP 4 REVIEW
The results of the major themes are reviewed and approved by the Company’s highest sustainability governance body ─ the Board of Directors. Management policies for each major sustainability topic are established, and the statuses of action plans and goals are periodically reviewed.
STAKEHOLDER COMMUNICATION
SHORT, MEDIUM, AND LONG-TERM GOALS AND ACTION PLANS
Since 2023, EGAT has set short (1-3 years) and medium to long-term (over 3 years) goals and tracked management to develop and continuously improve its sustainability blueprint in response to identified material issues.
