ESG

Communication with Stakeholders

Interactions with Stakeholders

Six major stakeholders

Delta aims to be a global citizen committed to sustainable development and values communication with stakeholders. We deeply understand that each stakeholder has a unique and pivotal role that influences how an organization can achieve its goals. We must engage in sincere communication with stakeholders to obtain feedback and opinions, revise our sustainable development practices whenever necessary, respond to the expectations of the public, and demonstrate our social impact. We have defined six major stakeholders pursuant to the AA1000 Stakeholder Engagement Standard (AA1000 SES). They include employees, investors, media, customers, suppliers, and communities (research institutes, NPOs, communities, and other stakeholders). To ensure the establishment of effective communication with stakeholders, we target the four major goals of communication skills — to be received, to be understood, to be accepted, and to take action. These four goals help us confirm whether effective communication and engagement can be achieved and explain Delta's progress and response for sustainable management.

Materiality Assessment

Delta regularly executes materiality assessment every year to observe the changes in stakeholders' level of concern for ESG issues. We also gain insights on the impact, risks, and opportunities of sustainability trends on the Company's operations, and confirm and adjust the disclosure, action plans, and long-term goals for sustainability issues to meet stakeholders' expectations. We comply with the GRI Standards 2021 and have referenced the double materiality principle published in the European Sustainability Reporting Standards (ESRS) to establish three major analysis steps including identification, analysis, and confirmation to verify the level of concern stakeholders for sustainability issues and the impact of sustainability issues on Delta's operations. We also identify material sustainability issues based on the significant impact on the economy, environment, and people/human rights. We establish long-term targets for sustainability and adopt internal key performance indicator (KPI) verification, sustainability ratings, international trends, and comparison with competitors for regular evaluations of the execution and effectiveness. We actively disclose the progress and effectiveness of Delta's long-term sustainability goals to Delta's stakeholders.




Material Issues

Selection of 17 key sustainability issues

We focused on the 5 major factors including revenue growth, environmental sustainability, customer satisfaction, best employer, and financial impact (increased expenditures and impairment or discarding of assets) and evaluated the impact of sustainability issues on operations. A total of 97 global executives related to sustainability participated in the evaluation.

In response to the impact on the economy, environment, and people/human rights, we have adopted the methodology in GRI 3 Material Topics and added the significance assessment of "an impact on sustainable development". We used the methodology of the Value Balancing Alliance (VBA) for assessing economic, environmental, and social impact, the "Impact-Weighted Accounts" research program of Harvard Business School, and the London Benchmarking Group (LBG) Model for measuring impact to determine the importance of topics based on the significance of their impact. We defined 12 positive impacts and 5 negative impacts and determined the significance of the impact of sustainability issues.

Delta's internal ESG team, external experts, and senior executives reviewed the material issues based on the results of the survey on the level of concern, the analysis of the impact on operations, and assessment of the impact of sustainable development before confirming 17 material sustainable issues and producing the materiality matrix. Other issues were regarded as Delta's potential sustainability issues which also play critical roles in the operations of Delta. We shall continue to disclose the effectiveness of our execution in the ESG Report.