Corporate Sustainability

Materiality Analysis & Stakeholder Engagement

Materiality Analysis
 GRI 3-1, 3-2, 3-3

Based on GRI Standards’8 reporting principles and the TSRS’ double materiality principle, SYSTEX Group evaluates material topics from 2 perspectives: impact on ESG and impact on operations. Through a 4-step materiality analysis, identification, stakeholder survey, impact assessment, and review disclosures, the Chief Sustainability Officer (CSO) approved 9 material topics for disclosure.

Since 2023, SYSTEX Group has adjusted the frequency of its materiality analysis from annual to biennial, as no major business issues have significantly impacted the analysis results. If, in a non-analysis year, an operational issue arises that could alter key material topics, an additional materiality analysis will be conducted as needed. The latest materiality analysis was scheduled for late 2024.

Among the 21 sustainability topics consolidated in 2024, SYSTEX separated the previous topic “Green operation” into “Energy management and Water management” for evaluation. Given its office-based operations, water usage is only for daily needs, energy consumption is mainly for ACs, and no production processes are involved. Therefore, these 2 topics were not classified as material. Additionally, SYSTEX set a 2050 net-zero target to align with government policies, integrating it into its sustainability strategy and designating GHG management as a material topic.

For more details about human rights risk assessment, please refer to “Human Rights Protection.”
For more details about climate and nature risks, please refer to “Climate and Nature Risk.”
For more details about health risks, please refer to “Health Risk.”

Process to Determine Material Topics

1. Identification
  • Identify stakeholders

    SYSTEX identifies 6 key stakeholders based on 5 principles of the AA1000 Stakeholder Engagement Standards, including government, clients, shareholders/investors, employees, upstream original/suppliers, and media/general public.

  • Collect sustainable topics

    Based on the GRI Standards and SASB (Software & IT Services) framework, along with insights from benchmark companies and stakeholder concerns, 21 sustainability topics have been collected.

E [1] Climate change strategy
[2] GHG management		 [3] Energy management
[4] Water stewardship		 [5] Waste management
[6] Biodiversity
S [7] Talent development
[8] Talent attraction and retention		 [9] Employee healthcare
[10] DEI		 [11] Social engagement
G [12] Economic performance
[13] Corporate governance
[14] Integrity
[15] Risk management		 [16] Sustainable services
[17] Information security
[18] Supply chain sustainability		 [19] R&D, and IP management
[20] CRM
[21] Customer privacy
6
Shareholders
21
Sustainability topics
2. Stakeholder survey

Distribute questionnaires to stakeholders to assess the impact of SYSTEX’s sustainability topics on them.

3. Analyze Materiality
  • Impact on ESG

    The Sustainability Group assessed the “positive and negative impact” and “likelihood” across ESG dimensions, collecting a total of 19 responses.

  • Impact on operations

    The senior executives assessed the operational impact, collecting a total of 5 responses.

24
Impact questionnaires
4. Review disclosures

SYSTEX evaluates ESG impact, operational impact, and stakeholder concerns to develop drawing a double materiality matrix, initially identifying 7 material topics. Expert insights and internal discussions led to the inclusion of Employee healthcare and GHG management as material topics, totaling 9 material topics approved by CSO. The Sustainability Group then conducted data inventory and reporting in alignment with GRI Standards.

9
Material topics

Double Materiality Matrix and Material Topic Lists

Double Material Matrix

SYSTEX applies the double materiality principle, developing a matrix based on ESG impact, operational impact, and stakeholder concerns, with the top 1/3 of scored sustainability topics designated as material topics. Referencing SASB Standards, common industry topics and SYSTEX’s sustainability strategy blueprint, it decided to include Employee healthcare and GHG management, identifying a total of 9 material topics.

E [1] Climate change strategy
[2] GHG management		 [3] Energy management
[4] Water stewardship		 [5] Waste management
[6] Biodiversity
S [7] Talent development
[8] Talent attraction and retention		 [9] Employee healthcare
[10] DEI		 [11] Social engagement
G [12] Economic performance
[13] Corporate governance
[14] Integrity
[15] Risk management		 [16] Sustainable services
[17] Information security
[18] Supply chain sustainability		 [19] R&D, and IP management
[20] CRM
[21] Customer privacy
Identifying 9 Material Topics
E [2] GHG management
S [7] Talent development
 [8] Talent attraction and retention [9] Employee healthcare
G [13] Corporate governance
[12] Economic performance
 [14] Integrity
[17] Information security
 [16] Sustainable services

Note: Employee healthcare and GHG management are specially included as material topics.

Material Topic Changes
2022 Green operation

SYSTEX separated it into Energy management and Water management for evaluation. Given its office-based operations, water usage is only for daily needs, energy consumption is mainly for ACs, and no production processes are involved. Therefore, these 2 topics were not classified as material.
2024 GHG management

SYSTEX set a 2050 net-zero target to align with government policies, integrating it into its sustainability strategy and designating GHG management as a material topic.
Material Topics and their Meanings and Impacts on the Value Chain, and related Policies, Strategies and Grievance Mechanisms

SYSTEX Group identifies 9 material topics across “governance, environment and social”, and demonstrates the meanings of these material topics to SYSTEX, management policies, grievance mechanism and direct/indirect impacts on internal stakeholders or external stakeholders along the entire value chain, and then displays the scope of impacts on these stakeholders, identifying the types of impacts that affect them.

●: Direct impact  ○: Indirect impact

Material topic Meaning and impact of material topic Policy and strategy Grievance mechanism SDGs Internal Value chain External
ESG impact Operational impact SYSREX Affiliate Employee Client Supplier Public
G Corporate governance Substantial positive impact
Strong governance enhances oversight, protects shareholder rights, and improves transparency and decision-making efficiency.		 Corporate governance enhances operational stability and profitability, mitigates risks, and fosters reputation, driving positive economic impact. Ensure the Board diversity and independence through the “Rules of Election of Directors” and “Corporate Governance Best Practice Principles”. As the highest governance body, the Board of Directors oversees operations and executive performance. SDG8
SDG16		 ● ● ○ ○ ○ ○
Economic performance Substantial positive impact
Strong governance enhances oversight, protects shareholder rights, and improves transparency and decision-making efficiency.		 Corporate governance enhances operational stability and profitability, mitigates risks, and fosters reputation, driving positive economic impact. SYSTEX’s tech teams collaborate with ecosystem partners to deliver five value-added services, helping clients build innovative business models and drive exponential growth. As the highest governance body, the Board of Directors oversees operations and executive performance. SDG8 ● ● ● ● ● ○
Integrity Substantial positive impact
Adhering to business ethics ensures transparency in operations and financial disclosures, protecting stakeholder rights.		 Building partnerships grounded in ethics and integrity enhances reputation, as well as client and partner loyalty. Implement integrity management by requiring employees to sign the “Ethical Corporate Management Best Practice Principles” and complete ethical training. Suppliers must also sign the “Integrity Pledge and Declaration”. The Integrity Committee oversees related prevention measures and ensures their effective implementation. SDG8
SDG16		 ● ● ● ● ● ○
Information security Substantial positive impact, potential negative impact
Continuously strengthen security systems to prevent leaks against growing cybersecurity challenges.		 A major cybersecurity incident or data breach could disrupt operations and damage reputation and customer trust. SYSTEX establishes information security regulations, secures ISO 27001 certification, conducts crisis drills, and enhances training to strengthen security defenses. The IS Technology Department, under the Data & Info. R&D Division, oversees employee IS training, annual ISO 27001 compliance, and regular security drills. – ● ● ● ● ● ○
Sustainable services Substantial positive impact
SYSTEX leverages technology to provide sustainable solutions, helping clients implement sustainable management.		 Sustainable solutions boost revenue and enhance reputation, facilitating increased investment in R&D and talent cultivation. SYSTEX strives to be the best sustainable partner for clients, offering innovative solutions and digitalized management to support their sustainability transition. The President sets business targets and reviews performance quarterly, ensuring that each BU optimizes sustainable solutions. SDG8
 ● ● ○ ● ● ○
E GHG management Potential positive and negative impact
Enhancing energy efficiency and reducing carbon emissions mitigate environmental impact, while failure to meet targets may pose risks.		 Set a 2050 reduction pathway and implement measures to ensure achievement while enhancing reputation. SYSTEX targets ‘Net Zero by 2050,’ leveraging ISO 14001, ISO 14064-1, and ISO 50001 while implementing environmental measures. The OHS, Environment, and Energy Committee holds regular meetings to assess target achievement. SDG7
SDG12
SDG13		 ● ● ○ ○ ○ ●
S Talent development Substantial positive and negative impact
A lack of a structured talent cultivation mechanism may affect growth. SYSTEX invests in cultivating world-class software talents to enhance digital competitiveness and social impact.		 A comprehensive talent cultivation mechanism enhances career growth, expertise and retention, ensuring operational stability. SYSTEX enhances talent cultivation through “Employees Training and Development Rules,” performance evaluation, and HR investment internally, while fostering software talents across all learning age groups to expand an external talent pool. The Human Capital Center expands training resources and employee learning hours, while SYSTEX invests in IT education to cultivate world-class talents early. SDG3
SDG4
SDG5
SDG8
SDG10
SDG16
SDG17		 ● ● ● ○ ○ ●
Talent attraction and retention Substantial positive impact
A friendly workplace and supportive benefits protect employee rights, and improve retention.		 Competitive salaries and benefits attract key talent, enhance retention, and strengthen corporate stability. SYSTEX strengthens retention by recruiting talent with core capabilities, implementing the Care Mechanism for new-hires, and enhancing long-term development, benefits, and welfare programs. The Human Capital Center regularly reviews key talent and new-hire retention, tracks policy implementation, and analyzes employee departure reasons. ● ● ● ○ ○ ○
Employee healthcare Substantial positive impact
To address workplace stress and sedentary health risks, we improve healthcare programs to promote a balance between employee mental and physical well-being.		 Promoting employee well-being boosts satisfaction, retention, and talent attraction, strengthening corporate sustainability. Employ full-time health managers, establish a health management center, and innovate the Health UP! App to support employee well-being. The health manager reviews the employee’s medical report each year and offers consultation. ● ● ○ ○ ○ ○
Goals for Material Topics
Material Tops 2024 Goal 2024 Performance Status Short-term goal Mid-term goal Long-term goal
2025 2027 2030
G Corporate governance
  • Corporate Governance Evaluations: 6%-20%
  • No major violations occurred.
  • Corporate Governance Evaluations: 6%-20%
  • No major violations occurred.
 Achieved
  • Corporate Governance Evaluations: 6%-20%
  • No major violations occurred.
  • Corporate Governance Evaluations: 6%-20%
  • No major violations occurred.
  • Corporate Governance Evaluations: Top 5%
  • No major violations occurred.
Economic performance
  • Positive operating profit
  • Positive operating profit with 10.7% annual growth
 Achieved
  • Positive operating profit
  • Positive operating profit
  • Positive operating profit
Integrity
  • Integrity advocacy rate: 99%
  • Vendor Integrity Pledge and Declaration signing rate: 96%
  • Supplier CSR Code of Conduct signing rate: 96%
  • Supplier CSR Self-Assessment response rate: 65%
  • Suppliers Security & Privacy Survey response rate: 65%
  • Integrity advocacy rate: 99.5%
  • Vendor Integrity Pledge and Declaration signing rate > 99%
  • Supplier CSR Code of Conduct signing rate > 99%
  • Supplier CSR Self-Assessment response rate: 65.6%
  • Suppliers Security & Privacy Survey response rate: 66.8%
 Achieved
  • Integrity advocacy rate: 99%
  • Vendor Integrity Pledge and Declaration signing rate: 99%
  • Supplier CSR Code of Conduct signing rate: 99%
  • Supplier CSR Self-Assessment response rate: 66%
  • Suppliers Security & Privacy Survey response rate: 66%
  • Integrity advocacy rate: 99%
  • Vendor Integrity Pledge and Declaration signing rate: 99%
  • Supplier CSR Code of Conduct signing rate: 99%
  • Supplier CSR Self-Assessment response rate: 67%
  • Suppliers Security & Privacy Survey response rate: 67%
  • Integrity advocacy rate: 99%
  • Vendor Integrity Pledge and Declaration signing rate: 99%
  • Supplier CSR Code of Conduct signing rate: 99%
  • Supplier CSR Self-Assessment response rate: 70%
  • Suppliers Security & Privacy Survey response rate: 70%
Information security
  • Maintain ISO 27001.
  • No data leaks reported.
  • Maintain ISO 27001.
  • No data leaks reported.
 Achieved
  • Conduct ISO 27001 annually
  • No data leakage incident
  • Conduct ISO 27001 annually
  • No data leakage incident
  • Maintain ISO 27001.
  • No data leaks reported.
Sustainable services
  • Number of sustainable solutions: 50
  • Number of sustainable solutions: 50
 Achieved
  • New solutions: 4 E-solutions
  • New solutions: 4 E-solutions, 1 S-solution, 1 G-solution
  • New solutions: 4 E-solutions, 2 S-solutions, 1 G-solution
E GHG management
  • Annual reduction: electricity intensity by 5%
  • GHG Emission decreased by 3% annually
  • Renewable energy share: 4%
  • Maintain E-ISO certifications: ISO 14064-1, ISO 14001, ISO 50001
  • Annual reduction: electricity intensity by 6.4%
  • GHG Emission decreased by 6.0% 
  • Renewable energy share: 4.6%
  • Maintain E-ISO certifications: ISO 14064-1, ISO 14001, ISO 50001
 Achieved
  • Annual reduction: electricity intensity by 5%
  • GHG Emission decreased by 3% annually
  • Renewable energy share: 9%
  • Maintain E-ISO certifications: ISO 14064-1, ISO 14001, ISO 50001
  • Annual reduction: electricity intensity by 5%
  • GHG Emission decreased by 3% annually
  • Renewable energy share: 14%
  • Maintain E-ISO certifications: ISO 14064-1, ISO 14001, ISO 50001
  • Annual reduction: electricity intensity by 5%
  • GHG Emission decreased by 3% annually
  • Renewable energy share: 20%
  • Maintain E-ISO certifications: ISO 14064-1, ISO 14001, ISO 50001
S Talent development
  • Average training hours: 30 hours
  • YTP junior-high team: 60
  • Average training hours: 35.4 hours
  • YTP junior-high team: 68
 Achieved
  • Average training hours: 30 hours
  • YTP launch new contest format
  • Average training hours: 30 hours
  • YTP participants: 900
  • Average training hours: 30 hours
  • YTP participants: 1,000
Talent attraction and retention
  • Key talents retention rate: 95%
  • New-hire retention rate: 80%
  • Key talents retention rate: 95.6%
  • New-hire retention rate: 80.2%
 Achieved
  • Key talents retention rate: 95%
  • New-hire retention rate: 81%
  • Key talents retention rate: 95%
  • New-hire retention rate: 83%
  • Key talents retention rate: 95%
  • New-hire retention rate: 85%
Employee health
  • Maintain ISO 45001.
  • High-risk cases care rate: 100%
  • Employee health examination rate: 75%
  • Maintain ISO 45001.
  • High-risk cases care rate: 100%
  • Employee health examination rate: 71.1% (Ongoing)
 Achieved
  • Maintain ISO 45001.
  • High-risk cases care rate: 100%
  • Employee health examination rate: 75%
  • Maintain ISO 45001.
  • Employee health promotion expenditure: NT$4M
  • Employee health examination rate: 75%
  • Maintain ISO 45001.
  • Employee health promotion expenditure: NT$5M
  • Statutory employee health examination rate: 100%
Stakeholder Engagement and Communication Channels
 GRI 2-25, 2-29

SYSTES’s 2024 stakeholder communication status was reported to the Board on December 17, 2024.

Stakeholder Meanings of stakeholder Topic Frequency and channel Our response (2024)
Employee Employees are the key partners and the foundation of enterprise sustainability.
  • Talent attraction and retention
  • Human rights protection
  • Occupational health and safety
  • [Annual] Business meeting, technical meeting
  • [Quarterly] Labor-management meeting
  • [Monthly] Compliance announcement, sales meetings
  • [Irregularly] Internal announcement, dedicated mailbox, meetings, trainings
  • Average training hours: 35.4 hours (+3.2%); Human rights case advocacies: 16,715 participants; Human rights trainings: 8,144 participants and 16,567 hours.
  • Rewarded 2024 National Talent Development Award – Outstanding Case Award and 2024 Work-Life Balance Award – Employee Care Award.
  • 2024 maternity subsidies form SYSTEX Baby Happy Growth Funds program and Welfare Committee: NT$4.04 million.
  • 2024 health promotion expenditure: NT$12.96 million.
Client SYSTEX aims to improve quality and create exponential growth for clients.
  • Customer privacy
  • Data security
  • Customer service
  • [Irregularly] Dedicated visits and email, customers’ supplier audit, tele-contacts
  • Conduct regular information security drills to prevent data leaks.
  • Completed 88 customer on-site audits and 968 supplier sustainability audit questionnaires.
  • Conducted cybersecurity advocacy and test, totaling 7,876 participants.
  • 2024 Customer satisfaction survey – overall service: 8.93 points (+3.1%).
Shareholder / investor Investors drive SYSTEX’s steady growth. SYSTEX maximizes investor benefits and ensures financial transparency.
  • Economic performance
  • Anti-corruption
  • [Annually] AGM, annual report, sustainability report, TCFD report
  • [Quarterly] Meetings of the Board and committees, investor conferences, financial reports
  • [Monthly] Performance announcement, MOPS
  • [Irregularly] Material info., communication meetings for investors
  • Annual, quarterly, and monthly financial statement announcements and operating results.
  • Rewarded 11th Corporate Governance Evaluations: 6%-20% of listed companies.
  • Self-organized and invited investor conferences: 2 online, 2 in-person.
  • Maintain 50 sustainable solutions.
  • Published 45 material information announcements in both Chinese and English.
  • In-person, online and telephone meetings: 52 investment firms with 68 participants.
Upstream original / supplier Value chain collaboration expands markets and enhances shared benefits.
  • Customer privacy
  • Data security
  • Supplier sustainability management
  • [Irregularly] Meetings, emails, upstream original or supplier visits
  • Participated in 19 audits, 22 compliance training sessions, and 68 market trend seminars.
  • Cumulative total: 3,016 suppliers signed the Vendor Integrity Pledge and Declaration.
  • Cumulative total: 2,210 suppliers signed the Supplier CSR Code of Conduct.”
  • Supplier CSR Self-Assessment response: 830; Suppliers Information Security & Personal Privacy Survey response: 846.
  • Held 1 online supplier network meeting with 132 companies and 169 participants.
Government Regulatory compliance drives job creation and tax revenue.
  • Regulatory compliance
  • Taxation governance
  • [Annually] Governmental evaluation
  • [Irregularly] Official document, meetings, emails, public info., conference, seminars
  • No major regulatory violations, no confirmed customer privacy breaches, and no integrity-related incidents.
  • Annual income tax paid: NT$364 million.
  • Annual government subsidies received: NT$26,864.9 thousand.

Media / Public

 Media facilitates communication and strengthens the brand image.
  • Social engagement
  • [Irregularly] Press releases, media interviews, press conferences
  • 599 women participated in the YTP over the past 5 years.
  • Rewarded 2024 Excellence in CSR Award – No.14 and 2024 Corporate Health Responsibility (CHR) – Golden Award (1st Prize) in the Service Industry of Large Enterprise Category.
  • Cumulatively sponsored for the PaGamO Program: NT$4 million.
  • Cumulatively contributed to the IMV technology innovation competition: NT$4 million.
Stakeholder Questionnaire

In order to understand your expectation for the sustainable development of SYSTEX Group, please click the following link to fill in the questionnaire. Thank you.

Stakeholder Questionnaire　
Stakeholder Questionnaire　
Stakeholder Questionnaire　

If you have any questions related to the sustainable development of SYSTEX Group, please write an email to csr@systex.com, we will reply to you as soon as possible.