Zhen Ding Tech. Group

Zhen Ding uses meetings held by ESG Execution Committee to discuss and identify stakeholder groups that interact closely with the company and generate significant economic, environmental, and social impact on the company. We identified six major stakeholder groups for Zhen Ding based on dependency, responsibility, influence, diverse perspectives, focus, and the company’s actual operations. The major stakeholders are employees, customers, suppliers, investors, government, and society (note: “society” is a combination of “public associations and industrial management centers”, “non-governmental and non-profit organizations”, “media”, and “academic institutions and research institutes” into a single stakeholder group). We identified and confirmed 13 material topics of concern to stakeholders through the following five steps:

• 01
  STEP 1: Identify Relevant Topics

  With the assistance of external experts and following discussions internally, we followed global sustainability standards and guidelines (GRI guidelines, RBA, SDGs, SASB, TCFD, UN Global Compact) and referenced sustainability assessment organizations (CDP, Global S&P Corporate Sustainability Assessment CSA, Corporate Governance Assessment), respond to stakeholder expectations, and consider the overall operating environment and risks, industry characteristics, and other development strategies. We have produced a list of 24 topics comprising four major aspects of governance, environment, society, and products.

• 02
  STEP 2: Identify Topics of Interest to Stakeholders

  We gathered department representatives who interact directly with each stakeholder group and conducted questionnaire survey internally to assess the level of concern that the stakeholders have over each topic. 762 valid questionnaires were collected (including: 498 from employees, 54 from customers, 148 from suppliers, 6 from investors, 12 from government, and 44 from society.

• 03
  STEP 3: Analyze the Degree of Economic, Environmental, and Social Impact

  We gathered internal personnel responsible for sustainability management corresponding to each stakeholder group and discussed with external experts to analyze the degree of impact that each topic has on the company and the company has on each topic

• 04
  STEP 4: Prioritize and Identify Material Topics

  Questionnaires were analyzed to determine the level of concern that the stakeholders have over each topic and internally evaluate the degree of impact each topic has on/is affected by economic, environmental, social, and product aspects. Subsequently, weighted arithmetic mean was used to calculate the weight score of each topic and draw up a matrix diagram. After the materiality analysis of the topics, applicable departments were asked to verify their completeness, and 13 material topics were identified and confirmed. Subsequently, the scope, boundary and collection period for each material topic were further assessed to present relevant information and performance data.

• 05
  STEP 5: Review and Audit

  The ESG Execution Committee meets regularly to review and oversee the Company's sustainability plans and environmental, social and governance management performance to ensure that the information is not inappropriately or improperly presented. The Committee reports annually to the Board of Directors (the 2022 report is due on May 30, 2023) to confirm the communication with stakeholders. In addition to understanding the company’s progress in sustainable management, any deficiencies are also reviewed and included in the company’s annual management targets, in order to formulate management strategies for each department