Materiality Assessment
Sikarin Public Company Limited places great importance on materiality assessment as a critical foundation of its sustainability strategy. This process enables the identification and prioritization of environmental, social, and governance (ESG) issues that impact the company and its stakeholders. By focusing resources on areas that can generate the most positive outcomes, the company ensures effective and efficient progress toward its sustainability goals.
Double Materiality Approach
The company's materiality assessment incorporates a double materiality approach, which involves analyzing sustainability issues from two perspectives
Impact Materiality
Assessing the effects of the company’s operations on external factors such as the environment, society, and the broader economic system.
Financial Materiality
Evaluating the impact of external sustainability-related factors on the company’s financial performance and operational stability.
This dual perspective allows the company to address both the outward impacts of its operations and the risks and opportunities arising from external factors. This approach ensures the development of strategies that align with global sustainability trends and stakeholder expectations.
Materiality Assessment Process
The company’s materiality assessment process adheres to international standards such as the GRI Standards, AA1000 Stakeholder Engagement Standard, and IFRS. It involves the following key steps:
1. Preliminary Research
The company gathers insights from various sources, including market trends, global sustainability developments, stakeholder expectations, and relevant frameworks, to identify critical current and emerging issues.
2. Internal Stakeholder Engagement
Findings from the research are presented to the Board of Directors, the Sustainability Committee, and relevant departments to gather feedback and ensure alignment with the company’s strategic goals.
3. External Stakeholder Engagement
External stakeholders, such as patients, customers, regulators, investors, and communities, are engaged through surveys and discussions to integrate their perspectives into the assessment process.
4. Review and Approval
The final assessment results are reviewed by the Sustainability Committee and submitted to the Board of Directors for approval. This ensures that prioritized issues align with the company’s long-term strategic objectives.
Materiality Matrix
Based on the materiality assessment conducted in line with international standards, Sikarin Public Company Limited has analyzed the materiality matrix as follows
Based on the materiality assessment, Sikarin Public Company Limited has identified the following issues as critical to both its business operations and stakeholders. These issues reflect the significant impact of the company's activities on environmental, social, and governance (ESG) dimensions, as well as the influence of external factors on the organization's financial performance and stability.
Climate Change
The company develops proactive strategies to address the impacts of climate change, such as managing energy use during extreme weather and enhancing infrastructure resilience to ensure continued operations and medical services.
Data Security
Recognizing the importance of safeguarding patient data, the company implements advanced cybersecurity measures to mitigate risks and build long-term trust.
Energy Management
The company prioritizes energy efficiency to reduce greenhouse gas emissions, align with sustainability goals, and achieve long-term cost savings.
Waste and Hazardous Materials Management
With awareness of the environmental and community impacts of medical waste, the company implements appropriate waste management measures to minimize risks and maintain stakeholder confidence.
Water Management
Sustainable water management practices are employed to prevent water scarcity issues that may affect medical operations, such as the sterilization of medical tools, while promoting resource conservation.
Corporate Governance
Transparency and ethical operations are emphasized to foster stakeholder trust and minimize compliance-related risks.
Business Ethics
The company’s commitment to ethical business practices enhances long-term credibility and strengthens relationships with partners and communities.
Labor Practices
Fair labor standards and employee well-being are promoted to boost motivation and create a supportive working environment that drives productivity.
Supply Chain Management
The company ensures sustainability in its supply chain by supporting ethically sourced materials and reducing environmental impacts associated with production processes.
Occupational Health and Safety
Rigorous health and safety standards are upheld to protect employees and service users, reducing the risk of incidents and reinforcing confidence in its facilities.
Patient Safety
Maintaining the highest standards of patient safety in all aspects of service delivery enhances care quality and strengthens the company’s reputation for excellence in healthcare.
Advancing Sustainability Through Materiality Assessment
The results of the materiality assessment are integral to shaping the sustainability strategy of Sikarin Public Company Limited. These results guide the company in achieving its organizational goals while meeting stakeholder expectations through the following actions:
Enhancing Risk Management
Identifying and prioritizing material issues helps in proactively managing potential risks, ensuring business resilience, regulatory compliance, and long-term sustainability.
Strategic Planning
Materiality results inform the development of sustainability goals that address the most impactful issues.
Resource Allocation
Investments are directed toward priority areas such as reducing greenhouse gas emissions, enhancing data security, and improving patient care.
Organizational Development
Insights from the assessment are used to improve processes, such as increasing energy efficiency and optimizing waste management.
Performance Measurement
Key performance indicators (KPIs) based on material issues enable effective tracking of progress.
Stakeholder Relationships
Addressing material issues strengthens trust and fosters long-term collaboration with stakeholders.
By integrating materiality assessment results into its sustainability strategy, Sikarin Public Company Limited is committed to driving positive change and building a resilient and sustainable healthcare system for the benefit of society and the environment in the future.