Material Topics

Following the AA1000 Stakeholder Engagement Standard and the GRI Standards, Farglory Life has identified our key stakeholders. This year, the results remain consistent with the nine stakeholder groups identified last year: Shareholders/investors; employees; policyholders; government agencies; distribution channels; suppliers/contractors; communities/schools; media; and non-profit organizations.

Farglory Life reviewed the material topics from the previous year; taking into consideration the 2024 sustainability development trends, the focus areas of domestic and international peers and regulatory authorities, as well as the latest legal and regulatory requirements, we collected sustainability topics. Ultimately, aligned with Farglory Life's short- and medium-term ESG goals, the Sustainability Development Team jointly consolidated 18 sustainability topics.

The Sustainability Development Team distributed the Sustainability Topic Impact Assessment Questionnaire to department heads, asking them to evaluate the positive and negative impacts of the aforementioned 18 sustainability topics on the economy, environment, and society (including human rights), and to assign scores. A total of 24 valid questionnaires were collected.

Through the 2024 Farglory Life Stakeholder Sustainability Topic Concern Survey Questionnaire, the level of concern among nine categories of stakeholders regarding the 18 sustainability topics was assessed. We collected 482 valid questionnaires.

In 2024, analysis of the financial materiality of sustainability topics was newly added. The Sustainability Development Team distributed the Sustainability Topic Financial Materiality Assessment Questionnaire, asking department heads to assess the financial impact of each topic on corporate operations and assign scores to the 18 sustainability topics, serving as a reference for determining material topics.

Each sustainability topic is assessed for the significance of its actual and potential positive and negative impacts. The significance is rated based on the topic's Degree of Impact and Likelihood of Occurrence. The Degree of Impact considers the scale, scope, reversibility, and whether the impact involves human rights. The total score for each topic is the sum of its positive and negative impact scores and is ranked accordingly based on the overall impact score.

By clarifying the actual and potential positive and negative impact scenarios of each sustainability topic, stakeholders are invited to assess their level of concern. The topics are then ranked in accordance with the concern scores.

Each sustainability topic is evaluated based on its potential risks and opportunities related to the Company's financial performance, and ranked in accordance with its impact significance score.

Based on the analysis of the degree of impact on the economy, environment, and society (including human rights), as well as the level of stakeholder concern, an impact matrix was drawn up. With reference to the financial materiality assessment results, expert discussions were held to identify highly impactful issues. We ultimately identified 12 material topics.

The 12 material topics confirmed through discussions by the Sustainability Development Team, President, and Chairman will serve as the basis for disclosure and key focus areas for the 2024 Sustainability Report. These topics are also aligned with the United Nations Sustainable Development Goals (SDGs) and integrated into Fglife's strategic blueprint as the priority consideration and focus for internal sustainability goals.