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Material Topic Analysis and Management

In order to understand the impact of sustainability issues on stakeholders, including their financial impact, as well as to review the sustainable management results, the following five steps of the Company are used to communicate with stakeholders and identify material topics, and to conduct financial impact assessments on the three major topics identified (information security, customer relations, and legal compliance), as well as the issue of climate action:

 

Material Topics
Identification of stakeholders In accordance with the five principles of Influence, Tension, Responsibility, Dependency and Diverse Perspectives defined by the AA1000 Stakeholder Engagement Standard (AA1000 SES), a questionnaire was distributed in 2023 to identify the seven key stakeholders: Customers, Employees and Unions, Government/Competent Authorities and Industry Associations, Shareholders and Investors, Suppliers, Communities/Schools and Non-profit Organizations, and Media. Considering that there was no significant change in the category of stakeholders, the 2023 questionnaire of employees were used in 2024.
Gathering of sustainability topics With reference to international sustainability standards such as GRI and TCFD, the United Nations Sustainable Development Goals (SDGs), the Company’s goals and vision, industry characteristics, material topics of Mega Holdings and benchmarking companies, sustainable development trends, and stakeholder concerns, each topic was discussed and assessed by the organizing unit of the “Sustainable Development Committee.” A total of 21 sustainability topics were compiled after consulting with external consultants.
Assess impact The Sustainable Development Committee of Mega Securities, the heads of various executive teams, branch managers, ESG-related executive employees, and the ESG-related employees of the subsidiaries Mega Futures, and Mega International Investment Services completed a sustainability issue impact assessment survey, focusing on the probability of positive and negative impacts of various sustainability topics on the economy, environment, and society, as well as the level of financial impact. 104 and 96 valid questionnaires were recovered, respectively.
  1. Negative impact:Assessed in terms of severity and likelihood. The negative human rights impact of the topic was also taken into account.
  2. Positive impact:Assessed on the scale, scope, and likelihood of impact.
  3. Financial impact:Evaluate the positive and negative impacts of each issue on the financial impact.
Survey results and major topics
  1. The questionnaire results were compiled, and the positive and negative impact scores were added and the financial impact scores were calculated. Each issue was sorted through the impact matrix according to the scores, and the threshold values of the material topics were set. The 11 sustainability topics for 2024 were selected, namely, "information security", "corporate governance and ethical management", "regulatory compliance", "risk management", "operational performance", "customer relations", "happy workplace", "talent attraction and development", "digital innovation", "responsible finance", and "inclusive finance".
  2. Considering the sustainability report to be fair and balanced, the Financial Supervisory Commission’s Green Finance Action Plan 3.0, which encourages the financial sector to conduct GHG inventory, encourages the support of green industries and sustainable development fields with funds, and encourages pathways to achieving the government’s 2050 net zero policy, "climate action" has been added to the 2024 material topics. Considering industry sustainability trends, such as the Financial Supervisory Commission’s Green Finance Action Plan 3.0, two material topics identified through questionnaires, "responsible finance" and "sustainable finance", have been judged to be quite similar in nature.
    Therefore, these two material topics have been merged and renamed "sustainable finance and responsible finance".
  3. The 12 material topics for 2024 were determined and reported to the Sustainable Development Committee and the Board of Directors after being approved by the general manager.
Disclosure Material Topics Company management then followed the relevant reporting requirements for material topics from the GRI Standards to describe the corresponding response strategies, management actions, indicators, and targets in this Report to ensure that the Report provides an appropriate and faithful representation on ESG implementation by the Company.
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Communications

In order to fulfill corporate social responsibility and demonstrate the importance of stakeholder communication, the Company has established transparent and smooth communication channels with stakeholders. We include stakeholders’ opinions in the Company’s management policies and operating activities to achieve the goal of sustainable management. We have defined major stakeholders according to the five major principles of AA1000 Stakeholder Engagement Standard (responsibility, influence, tension, diverse perspectives, and dependency). Considering that there has been little change in the types of stakeholders valued by the Company’s employees, we continued to determine the types of stakeholders as identified in the 2023 employee questionnaire in 2024. We have identified seven types of stakeholders: Customers, Employees and Unions, Government/Competent Authorities and Industry Associations, Shareholders and Investors, Suppliers, Communities/Schools and Non-profit Organizations, and Media. Mega Securities used a variety of communication channels such as our corporate website, questionnaire surveys, press releases, and in-house/Group seminars as well as this Report to understand and respond to the needs of our stakeholders. Sustained communication and engagement was utilized to create mutual benefits and trust.

 

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