Materiality Analysis & Stakeholder Engagement

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

Based on the 8 reporting principles of GRI Standards, SYSTEX conducts the process of “Materiality Analysis” and collects the sustainability status to compile sustainability report and disclose its sustainable performance. After analyzing leading companies and industry-related issues, SYSTEX has compiled 20 sustainability topics and conducted a survey determined stakeholder concerns for sustainability topics. The Sustainability Group assessed impacts and probabilities, and made rankings with external experts. Finally, the CSO approved 9 material topics.

2022’s 20 sustainability topics were updated with “Intellectual Property Management” merging with “Innovation and R&D” into “Innovation, R&D and IP. Management,” “Diversity and Equality” and “Non-discrimination” into “Diversity, Equality, and Inclusion.” Human rights are now in GRI general disclosures, evaluating impacts and probabilities, and drawing a human rights risk matrix to minimize impacts. Compared with the previous year’s topics, “Sustainable Products and Services” and “Information Security” were promoted to the top 2 and newly included as the material topics; “Regulatory Compliance” was excluded because internal training and management reduced negative impacts.

For more details about human rights risk assessment, please refer to “Human Rights Protection

Process to Determine Material Topics

1. Identify Material Topics

According to AA1000 SES, SYSTEX identifies 7 types of stakeholders. Following GRI standards, SASB – Software & IT Services and integrating the concerns of benchmark enterprises and stakeholders, SYSTEX has summarized 20 Sustainability Topics, which were divided into 3 aspects: economy, environment, and human capital/society.

Sustainability Topics
2. Assess Importance of Stakeholders

SYSTEX sends materiality questionnaires to its executive-level and stakeholder representatives to understand the concerns of stakeholders on each sustainability topic.

Stakeholder Questionnaires
3. Analyze Materiality

The Sustainability Group assessed “positive/negative impact” and “probability” of each sustainability topic, collected 10 economic, 7 environmental, and 7 social questionnaires with a total of 24 questionnaires, and drew the materiality matrix.

Impact Questionnaires
4. Review Disclosures

Consider concerns of stakeholders and external experts, and rank sustainability topics according to the “positive/negative impact” and “probability.” Finally, the CSO approved 9 material topics. The Sustainability Group will then refer to the GRI and list the corresponding indicators for data inventory.

Material Topics

Materiality Matrix and Topics

List of Sustainability Topics
Positive and Negative Impact Matrix

Reference to the “GRI 3: Material Topics 2021”, SYSTEX assessed the positive/negative impacts and possibilities of each topic. Among them, “Social Engagement,” “Sustainable Products and Services” and “Economic Performance” are topics with high positive impact, while “Sustainable Products and Services” and “Talent Development” are topics with high negative impact.

Topics with High Positive Impact

  • Adhering to the spirit of Tech for Good in “Social Engagement,” SYSTEX uses cores to cultivate 3,000+ world-class software talents for Taiwan.
  • “Sustainable Products and Services” helps clients realize Net-Zero and reduce costs, thereby increasing E- and G- positive impacts.
  • “Economic Performance” enables revenue growth, supporting more sustainable budgets, thereby bringing E-, S- and G- positive impacts.

Topics with High Negative Impact

  • “Sustainable Products and Services”: Due to the intense competition in the sustainable services market, missed market opportunities will have negative economic impacts, so that SYSTEX provides comprehensively sustainable solutions.
  • “Talent Development”: Neglecting market trends and employee needs leads to negative impacts, so that SYSTEX continuously meets employees’ needs for career development and transparent promotion channels.
Ranking Material Topics

Changes in Material Topics

Materiality of sustainability issues were ranked by impact, probability, and stakeholder concerns. 9 with above-average scores were chosen as material topics for the year. 2 material topics, “Sustainable Products and Services” and “Information Security” this year address the urgency for sustainable transition, customer privacy, and trade secret protection. “Regulatory Compliance” did not make the cut due to lower impact but will still be monitored for compliance with economic, social, and environmental requirements.

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.

Goals for Material Topics
Stakeholder Engagement and Communication Channels
 GRI 2-25, 2-29
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.

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