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Material Topics

Based on the five-step identification process, 22 topics concerning sustainability were selected in 2018 (the number of topics remained the same as last year). With surveys through the online questionnaires and physical seminar, the level of influence of the topics on stakeholders' assessment and decision-making (Y-axis) and the degree of impact (bubble size) of TWM on the society in each topic considered by external stakeholders were understood. In addition, the CSR Committee confirmed the importance of each topic to the Company's operations (X-axis) and the impact of the Company on the society (bubble size) via resolution. Finally, we identified the Company's key topics based on the scores on the X-axis, Y-axis, and the bubble size for each topic.

Based on the results of the material topic matrix, we further identified the most important topics for the Company. We gave priority to the topics that were more important to the Company's operations, concerned stakeholders more, and in which the Company had high impact on ESG, including green application and circular economy, network quality and coverage, digital inclusion and social innovation, climate change mitigation and adaptation, information security and privacy protection, and technology innovation and application. Among them, corporate governance and operating performance is a common topic for disclosure. Thus, the Company did not include it in the key topics. We also consider the topics that the Company would manage internally in an autonomous manner. The Company confirmed that it should invest in long-term sustainable management with its supply chain, so supply chain management was included in the key topics. There are a total of seven key topics for the Company in 2018, please refer to the diagram below.