Management of Material Issues

Management of Material Issues

Through stakeholder engagement, Daxin collects sustainability topics of concern to its stakeholders. The Sustainable Development Committee applies materiality principles to identify, prioritize, and analyze sustainability issues, evaluating their impacts on economic, environmental, and social dimensions through structured discussions. Material topics are determined accordingly, with corresponding management approaches and strategies developed. The Committee reports implementation progress to the Board of Directors at least once annually.

Materiality Assessment Process

Step 1

Understand the organization’s context

Identifying stakeholders

In alignment with the AA1000 Stakeholder Engagement Standard and GRI Standards, Daxin identified 6 primary stakeholder groups: customers, employees, suppliers and contractors, shareholders and investors, government authorities, and academics and research institutions.

Sustainability Trends and Issue Identification

Sustainability topics were gathered by referencing global initiatives (SDGs, TCFD, SASB), industry standards, peer benchmarks, and annual sustainability objectives, combined with internal and external stakeholder feedback, resulting in 23 topics for evaluation.

  • 6 Stakeholder Groups
  • 23 Topics

Step 2

Identify actual and potential impacts

Stakeholder Concerns 

To assess stakeholder concerns across sustainability topics, Daxin conducted a questionnaire survey, receiving responses from 336 stakeholders: 20 customers, 246 employees, 40 suppliers/contractors, 5 shareholders/investors, 8 government authorities, and 17 academics and research institutions.

Impact on Operations

32 senior management representatives participated in scoring the impact of each topic on company operations based on the Company's development vision and business objectives.

  • 336 Stakeholders
  • 32 Senior Managers

Step 3

Assess the significance of the impacts

Impact Analysis

Survey results and internal discussion outcomes were synthesized to analyze the actual and potential positive and negative impacts of each sustainability topic across economic, environmental, and social dimensions.

Define Material Issues

The Sustainable Development Committee convened cross-functional project meetings to assess the materiality of sustainability topics, confirm 8 material topics, and discuss corresponding management strategies for integration into daily operations.

  • 8 Material Topics

Step 4

Disclosures on material topics

Information Compilation and Public Disclosure

Material topics were analyzed across the value chain — covering upstream procurement, Daxin's operations, and downstream customer use. Relevant disclosures were reviewed by the Sustainable Development Committee Chair, approved by the Board of Directors, and published on the Market Observation Post System and the official Daxin website.

  • Officially published 
    on the
    Daxin website

For more information, please refer to Daxin Materials' 2025 Sustainability Report: Material Topic Analysis