Materiality Process

With the emergence of the GRI 2021 standards, in FY 2021-22, we revised our materiality assessment to follow a 5-step systematic approach, aimed at identifying positive and negative impacts across all business activities, operations, and the external environment, concerning the economy, environment, and stakeholders. The findings are outlined in this report, accompanied by further elaboration on each issue and the corresponding actions taken. We shall continue to update our assessment as needed.

Our 5-step Systematic Approach

Gain a profound understanding of the company's activities, business relationships, sustainability context, laws, and regulations as well as the internal and external stakeholders.

Identify actual and potential impacts on the economy, environment, and people (including human rights) across the products (oral health), activities (manufacturing, sales, community development) and relationships (suppliers, logistics, distributors).

Evaluate the significance of identified positive and negative impacts through a risk assessment process. The actual and potential impacts undergo a quantitative and qualitative analysis where the severity and likelihood of the impact are assessed to determine significance.

Assess and prioritize the significance of identified impacts using the threshold set by the leadership team. These impacts are grouped into diverse material topics.

CPIL's ESG and CSR Committee oversees the due diligence process as well as refines and validates the final material topics.

Stakeholder Inclusiveness

We believe ensuring stakeholder inclusiveness at each step of our materiality process fosters transparency, builds trust, and enhances accountability. By actively engaging with stakeholders, we gain valuable insights, identify emerging issues, and mitigate potential risks. We have a four-step approach to ensure stakeholder inclusiveness. This approach helps us create the Materiality Matrix, providing a holistic view of what is important to us and our stakeholders.

Materiality Assessment

A deep understanding of materiality is vital to our ESG strategy and reporting. In FY 2021-22, we undertook a materiality assessment, guided by the Global Reporting Initiative (GRI) Standards to further understand stakeholder insights on the relevance of Environmental, Social and Governance (ESG) matters. We further undertook an analysis to gain insights into the profound impact as well as relationship between our ESG material topics and business risks and opportunities.

The assessment enabled us to prioritize topics that have a significant influence on our strategy, in addition to outlining the boundary of our ESG report. Business Ethics, Governance & Transparency is high on priority for us across all 3 pillars of ESG.