Key Material Issues of the Business

Sustainability Risk Management

In today’s business environment, organizations face multifaceted sustainability challenges. If risks are not managed systematically, they may impact operational efficiency, corporate reputation, and the Company’s long-term business viability. Therefore, the Company conducts comprehensive assessments and establishes risk management approaches addressing sustainability-related impacts across all three dimensions. These consist of 12 material issues, as outlined below:

Total Risk Items

Very High Risk

High Risk

Medium Risk

E1Greenhouse Gas Management Risk

Climate change causes natural disasters to become more severe and frequent, affecting business continuity, operating costs, and infrastructure readiness, including increasing pressure from stricter environmental regulations.

E2Resource Efficiency Risk

Inefficient use of resources such as water, energy, and paper may increase operating costs, impact the environment, reduce competitiveness, and not align with stakeholder expectations on sustainability.

S1Human Capital Development Risk

Rapid technological changes may cause employee skills to become misaligned with business requirements, affecting operational efficiency and the Company's competitiveness. Continuous development of employee skills and capabilities is therefore necessary. In addition, increasing competition for highly skilled labor may affect the Company's ability to retain qualified and experienced personnel.

S2Human Rights and Fair Labor Practices Risk

Lack of proper human rights and labor management may lead to complaints, legal risks, reputational damage, and loss of stakeholder trust.

S3Occupational Health and Safety Risk

Operations both in office and on-site pose risks of accidents and illness; if not properly managed, they may impact employee health, work continuity, and costs from work stoppages or compensation.

S4Product and Service Responsibility Risk

Rapid technological advancements may render the Company’s products or services obsolete, potentially affecting product and service quality, competitiveness, customer satisfaction, customer safety, and the Company's ability to generate sustainable revenue in the future.

G1Information Security Risk

Unauthorized access or data leakage may affect stakeholder trust, business continuity, financial damage, and significant legal risks.

G2Business Innovation Risk

Failure to develop new innovations or business models in line with market changes may result in stagnant revenue, reduced competitiveness, and excessive reliance on short-term projects.

G3Governance and Compliance Risk

Changes in laws and regulations such as climate law and carbon tax may increase cost and complexity; poor governance may affect trust and corporate image.

G4Customer Relationship Management Risk

Ineffective management may reduce satisfaction, lose business opportunities, and increase contract non-renewal risk, directly impacting revenue and reputation.

G5Business Partner Risk

Workforce development through knowledge sharing and certification with partners reduces dependency risk while enhancing internal capability and long-term business opportunities.

G6Procurement Risk

Cost volatility and reliance on foreign suppliers may affect cost, delivery delays, and disruptions from geopolitical events.

Code	Key Risk	Dimension	Risk Level	Opportunity	Management Measures
Environmental
E1	Greenhouse Gas Management Risk Climate change causes natural disasters to become more severe and frequent, affecting business continuity, operating costs, and infrastructure readiness, including increasing pressure from stricter environmental regulations.	Environmental	High	Develop Green Solutions business along with adjusting working models to be environmentally friendly, which can generate increased revenue.	Set a target to reduce greenhouse gas emissions by 5% by 2029 compared to the base year 2025 Set a long-term Net Zero greenhouse gas emissions target by 2050 Promote the use of renewable energy Select suppliers with environmental policies Conduct carbon accounting (Scope 1-3)
E2	Resource Efficiency Risk Inefficient use of resources such as water, energy, and paper may increase operating costs, impact the environment, reduce competitiveness, and not align with stakeholder expectations on sustainability.	Environmental	High	Reduce operating costs concretely and support a Green Organization image.	Set a target to reduce water per employee, electricity per employee, and paper usage by 2.5% by 2029 compared to base year 2025 Increase the use of energy-saving technologies

Social
S1	Human Capital Development Risk Rapid technological changes may cause employee skills to become misaligned with business requirements, affecting operational efficiency and the Company's competitiveness. Continuous development of employee skills and capabilities is therefore necessary. In addition, increasing competition for highly skilled labor may affect the Company's ability to retain qualified and experienced personnel.	Social	Very High	Reskill & Upskill programs, capability development with partners, develop 5G/IoT/AI skills, and specialized expertise development.	Set a target of at least 8 training hours per person per year Set a target to increase human capital productivity by 20% by 2029 compared to base year 2025 Set voluntary turnover rate not exceeding 10% Set employee engagement score above 80%
S2	Human Rights and Fair Labor Practices Risk Lack of proper human rights and labor management may lead to complaints, legal risks, reputational damage, and loss of stakeholder trust.	Social	High	Reduce legal and reputational risks while increasing stakeholder confidence.	Set a target of zero human rights complaints Establish human rights and labor policies covering employees and suppliers Communicate policies and complaint channels to employees thoroughly Conduct Human Rights Due Diligence Provide employee training Establish measures aligned with standards in case of complaints
S3	Occupational Health and Safety Risk Operations both in office and on-site pose risks of accidents and illness; if not properly managed, they may impact employee health, work continuity, and costs from work stoppages or compensation.	Social	Very High	Maintain occupational health and safety (OHS) quality under ISO 45001:2018 and keep zero workplace accident statistics.	Set Lost Time Injury Rate (LTIR) to zero Promote safety awareness through training Provide appropriate safety equipment Conduct regular workplace safety inspections Provide accident insurance
S4	Product Responsibility Risk Rapid technological advancements may render the Company’s products or services obsolete, potentially affecting product and service quality, competitiveness, customer satisfaction, customer safety, and the Company's ability to generate sustainable revenue in the future.	Social	Medium	Develop new services aligned with Global Megatrends and differentiate from competitors.	Regularly monitor technology megatrends and customer needs. Listen to customer feedback for the continuous development of products and services. Develop quality testing processes to ensure reliability, safety, and efficiency.

Governance and Economic
G1	Information Security Risk Unauthorized access or data leakage may affect stakeholder trust, business continuity, financial damage, and significant legal risks.	Governance and Economic	Very High	Expand digital infrastructure business to support long-term digital economy growth.	Achieve ISO/IEC 27001:2022 certification Raise employee awareness Monitor and report regularly Apply technologies to manage information security
G2	Business Innovation Risk Failure to develop new innovations or business models in line with market changes may result in stagnant revenue, reduced competitiveness, and excessive reliance on short-term projects.	Governance and Economic	High	Expand digital infrastructure and Smart Solutions to increase revenue diversification and stable recurring income.	Set target recurring revenue ≥40% by 2029 Develop subscription or managed services Expand Smart Solutions Diversify income sources
G3	Governance and Compliance Risk Changes in laws and regulations such as climate law and carbon tax may increase cost and complexity; poor governance may affect trust and corporate image.	Governance and Economic	High	Prepare for operations that create competitive advantage and increase stakeholder confidence.	Achieve 5-star CGR rating by 2028 Monitor regulatory changes Establish sustainability committee Provide whistleblowing channels Annual employee training
G4	Customer Relationship Management Risk Ineffective management may reduce satisfaction, lose business opportunities, and increase contract non-renewal risk, directly impacting revenue and reputation.	Governance and Economic	Very High	Build customer trust and increase revenue from existing customers.	Set customer satisfaction target above 80% Implement CRM system Improve products/services based on feedback
G5	Business Partner Risk Workforce development through knowledge sharing and certification with partners reduces dependency risk while enhancing internal capability and long-term business opportunities.	Governance and Economic	High	Enhance workforce capabilities and strengthen strategic partnerships.	Support employee certifications Leverage knowledge for business development
G6	Procurement Risk Cost volatility and reliance on foreign suppliers may affect cost, delivery delays, and disruptions from geopolitical events.	Governance and Economic	Medium	Diversification of supplier bases across different regions to reduce geopolitical risks and maintain anti-corruption standards, thereby promoting long-term credibility and transparency.	Risk-controlled contracts Diversify suppliers Maintain buffer stock Increase local sourcing Improve procurement systems