Delta conducts a systematic materiality analysis every year to gain insights into the impact, risks, and opportunities brought by sustainability trends on the Company's operations. We confirm and adjust disclosures, action plans, and long-term goals on sustainability issues, and respond to stakeholder expectations. The analysis framework complies with the GRI Standards 2021 and references the concept of double materiality in the European Sustainability Reporting Standards (ESRS) published by the European Union’s Corporate Sustainability Reporting Directive (CSRD). In 2024, a new methodology was adopted with reference to the CSRD to formulate risk and opportunity events relevant to Delta. Managers and employees across departments were invited to participate and assess the possible financial impact of each event on Delta’s operations. The analysis results were then integrated into the materiality assessment process. The overall materiality analysis process includes three major steps: “identification”, “analysis”, and “confirmation”. We comprehensively evaluate the importance of sustainability issues from a multi-dimensional perspective, including the impact of sustainability issues on Delta’s finances and significant impacts from the perspectives of economy, environment, and human rights. Delta establishes long-term targets for sustainability according to these and adopts internal key performance indicator (KPI) verification, sustainability ratings, international trend analysis, and comparison with competitors for regular evaluations of execution and effectiveness. We actively disclose the progress of Delta’s sustainability strategies and long-term sustainability goals to Delta’s stakeholders.
51 Delta risk and opportunity events were formulated from the ESG perspective with reference to the concepts of Impact, Risk, and Opportunity in CSRD. Representatives of Delta’s sustainability projects were invited to participate in the assessment, analyzing the possibilities, frequency, and financial impact of past and future events. Among these, the financial impact assessment covers 7 major aspects, including “capital expenditure”, “asset value”, “liability”, “direct operating costs”, “indirect operating costs”, “revenue”, and “fundraising/financing”.
This year, we followed the methodology in GRI 3: Material Topics and added impact measurement based on the methodology developed by the Value Balancing Alliance (VBA) for assessing economic, environmental, and social impact. Combined with methodologies of the Impact-Weighted Accounts Project of Harvard Business School and the impact management framework of the London Benchmarking Group, these helped us develop a systematic assessment mechanism for impact significance. 12 positive and 5 negative impacts were defined based on the relevance to Delta’s operations, and 100 managers and employees were especially invited to participate in the process. We identified 12 external sustainability impacts that may be directly or indirectly caused by Delta from various aspects, such as probability, severity, and scope of impact in the future.
Based on both results of the financial impact assessment and sustainable development impact assessment, we combined the long-term goals of sustainability issues with stakeholders’ level of concern for such. After confirmation by the internal sustainability taskforce, external experts, and senior executives, we finally established 14 material issues and created a materiality matrix and ranking list. 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 on these issues in the ESG Report.