Stakeholder Dialogue
FENC identifies stakeholders and material topics regularly to ensure alignment with corporate management and stakeholder expectations.
Identification of Materiality
Each year, the stakeholders and material topics are identified by the executive managers and the Sustainability Implementation Committee, and the internal and external feedback is gauged through surveys to keep the sustainability management and reporting at FENC in alignment with the expectations of all stakeholders.
FENC follows the procedures for the identification of material topics in the 2021 version of the GRI Standards, developing the framework for materiality analysis based on the principles of identification, analysis and verification. In 2022, surveys were administered to internal and external recipients with a total of 423 valid surveys collected. In 2023, in light of the rapidly changing external environment and to increase stakeholder participation, another round of survey was administered to 98 stakeholders. The outcome was combined with that from the 2022 survey for analysis. External experts were consulted regarding the process and result of stakeholder and material topic identification, which were then presented to the executive managers for confirmation. The Sustainability Committee members, which consist of regular and independent Board members, gave the final approval.
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FENC renamed the sustainability issues in 2023 to provide ease for stakeholders to evaluate their positive and negative impacts on the external economy, environment and people, including human rights. By applying the principle of double materiality proposed by the European Commission, a total of 14 material topics were identified as posing significant impacts regarding corporate operation as well as the economy, environment and people, including impacts on human rights. The materiality of four topics was downgraded. They are “workplace diversity and inclusion,” “customer relations management,” “land resources management” and “stakeholder dialogue.”
Matrix of FENC Material Topics
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Positive and Negative Impact and Scope of Value Chain Impact
Referring to the material topics identified in 2022, executive managers and the Sustainability Team conducted an impact analysis to assess their positive and negative impact as well as the scope of value chain impact. Each material topic was assessed against current corporate strategies and management guidelines to measure the positive impact and likelihood of occurrence regarding the aspects of economy, environment and people, including human rights. The assumption for the assessment of the negative impact, no action, would lead to the inability to prevent or mitigate the negative impact, and was used to assess the likelihood of occurrence and severity regarding the three aspects.
Top Five Issues with Positive Impact
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Top Five Issues with Negative Impact
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A comprehensive evaluation measuring current corporate strategies and management guidelines against the impact on the above-referenced three aspects identifies “develop green products” as having the greatest positive impact, and further pursuit will augment such impact. The most significant negative impact, however, could result from inaction under “steer environmental management,” indicating the need for FENC to enhance such management efforts for mitigation.
Climate change is an issue that has become front and center in the global dialogue in recent years. The impact analysis also reflects the positive influence FENC may bring by aggressively stepping up GHG management with net zero as the end game. Conversely, the extent of negative consequences from the absence of such action will be second only to that from not steering environmental management.
Impacts of Material Topics and Value Chain Impact Assessment
Material Topics | Impacts on External Economy, Environment and People, Including Human Rights | Value Chain Impact Assessment | ||||
Suppliers | FENC | Customers | ||||
| Production Business | FERD | Foundations | ||||
Green Products | The development of green products may fulfill FENC’s green commitment to brand customers, promote economic growth and mitigate environmental impacts. | ● | ● | ● | ||
Climate Strategies and Low Carbon Transition | The inability to effectively control GHG emissions will lead to worsening climate conditions and business environments. | ● | ● | ● | ● | |
Environmental Management | Business operations may lead to air pollution, waste and impacts on biodiversity. | ● | ● | ● |
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Operational Performance and Strategies | With steady refinement of business strategies, FENC maintains the industry-leading status, drives industry evolution and promotes economic development. |
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Corporate Sustainability | By establishing a comprehensive governance framework, FENC balances the sustainable development of the environment, society and corporate governance to create values for all stakeholders. |
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Production and Product Innovation | Leveraging its R&D capabilities, FENC develops forward-looking products and transitions to smart production, operation and product services to promote industry growth. | ● | ● | ● | ||
Energy and Resource Management | Environmental impacts may be reduced by monitoring the current energy and resource usage and adopting a host of conservation measures. |
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Product Accountability and Life Cycle Assessment | Impacts on the environment and human health may be mitigated by gauging the scale and significance of potential environmental impacts with product life cycle assessments and improvements from the management and R&D perspectives. | ● | ● | |||
Risk Management | The establishment of a sound risk management mechanism may reduce the degree and likelihood of impacts from environmental and man-made factors. | ● | ● | |||
Corporate Governance | With integrity as the highest guiding principle, FENC builds a robust governance system to facilitate corporate management and maximize the interests of all shareholders. | ● | ● | |||
Occupational Safety and Health | Implementing occupational safety and health management may reduce occupational risks and improve the physical and mental health of the employees and contractors. | ● | ● | ● | ||
Sustainable Corporate Image | FENC may examine the direction of sustainable development and elevate stakeholders’ willingness to invest in the Company by participating in global sustainability ratings, forums and conferences to engage and interact with stakeholders. | ● | ● | ● |
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Sustainable Supply Chain Management | FENC ensures that goods and services provided by suppliers are in line with quality, economic, environmental and human rights requirements. | ● | ● | ● |
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Sustainable Community | With environmental protection and low-carbon operation as the goal, FENC strikes a dynamic balance between the man-made and natural environment, building a smart industrial park through advanced technologies to foster a sustainable ecosystem. |
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