Star Exchange

Issue Identification Methodology

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Stakeholder Identification

As HDRE progresses steadily towards its anticipated public listing, the Company is gradually refining its policies related to corporate governance, sustainable development, ethical business practices, and risk management. Alongside business growth, the company steadily enhances its corporate governance performance, fosters the co-prosperity of sustainability in ecology and the environment, and creates opportunities and benefits through risk management.

Five Key Evaluation Aspects (Image)

The starting point for stakeholder identification is the individuals and entities encountered through the daily business operations of HDRE’s various departments. By analyzing numerous stakeholders, the Company identifies those with the greatest influence on HDRE. Based on the international AA1000 Stakeholder Engagement Standard (AA1000 SES), HDRE evaluates stakeholders across five dimensions: dependency, responsibility, tension, influence, and communication frequency, identifying eight major stakeholder groups. These groups are ranked according to the significance of their relationship with HDRE, with employees ranked first, followed by suppliers, customers, government agencies, shareholders/investors, communities/nonprofit organizations/non-governmental organizations, industry unions/associations, and the media.

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Identify Communication Targets | A total of eight categories of stakeholders were identified.
We used the five principles of the AA1000 SES Stakeholder Engagement Standard as our criteria for identification, defining "internal and external groups or individuals that influence or are influenced by the Company." Based on this, stakeholder questionnaires were distributed to department heads for completion.
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Collecting ESG Issues | 24 Sustainability Issues Assessed for Impact
We used the five principles of the AA1000 SES Stakeholder Engagement Standard as our criteria for identification, defining "internal and external groups or individuals that influence or are influenced by the Company." Based on this, stakeholder questionnaires were distributed to department heads for completion.
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Assessing Stakeholder Concerns | 186 Valid Questionnaires
The 24 identified issues were compiled into a stakeholder survey, and a "Stakeholders Issues of Concern Assessment Questionnaire" was distributed to stakeholders. Additionally, an "Impact Issue Assessment Questionnaire" was distributed to senior executives within the Company. A total of 186 valid questionnaires were collected, including 165 concern assessment questionnaires and 21 impact assessment questionnaires.
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Confirming Material Issues | Identification of 10 Key Material Issues
Based on the degree of stakeholder concern and the level of impact on the Company’s operations, we analyzed whether each sustainability issue qualifies as material and plotted it on a materiality matrix. Ultimately, 10 key material issues were selected for disclosure in the management guidelines within each chapter of the report.
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