Identification of Material Topics

Process for Identifying Material Topics

Shin Kong Mitsukoshi adopted the latest GRI Standards to identify material topics through a structured process involving sustainability topic refinement, impact definition, impact assessment, impact analysis, and sustainability topic prioritization.

Steps for Identifying Material Topics Description
Adjust the Lists of Sustainability Issues and Impacts Based on the sustainability issues identified in 2024, an analysis of industry peers, and recommendations from external sustainability consultants, SKM reviewed and adjusted the lists in 2025 to include 12 positive and 13 negative impacts, as follows:
  1. One positive impact, “Biodiversity and Ecosystem Conservation,” was added.
  2. Two negative impacts, “Improper Supply Chain Risk Management” and “Improper Intellectual Property Management,” were added.
  3. The names of five impacts were revised: “Enhancing Customers' Digital Shopping Experience” became “Advancing Digital Innovation to Enhance Customer Experience and Operational Efficiency”; “Raising the Industry's Awareness of Sustainability” became “Raising Sustainability Awareness to Promote Industry Development”; “Green Transportation and Logistics Management” became “Reducing the Environmental Footprint”; “Outstanding Product Quality and Safety Assurance” became “Protecting Customer Rights through Product Quality and Content”; and “Improper Product Quality Management” became “Improper Product Quality and Content Management.”
SKM also reviewed how each impact affects external parties and confirmed and revised the impact descriptions to reflect its current operations and sustainability initiatives.
Define Impacts and Design the Survey SKM designed this year's materiality survey based on the potential impacts of 18 sustainability issues on the economy, environment, and people, incorporating descriptions of 12 positive and 13 negative impacts.
Distribute the Survey and Collect Stakeholder Views To review changes in impacts each year, SKM distributed surveys on positive and negative impacts to collect the views of internal stakeholders (including HQ, 16 department stores, SKM Park, Fayaque, and Shin Kong Cinemas) and external stakeholders (including consumers, suppliers, retail counter vendors, communities and NGOs, government agencies, and the media). Respondents assessed the impact level and likelihood of each positive and negative impact, and the results were analyzed and used to calibrate the materiality of impacts for the year.
Analyze Impacts     SKM distributed and collected 1,118 materiality questionnaires from internal and external stakeholders. After considering respondents' impact and likelihood scores, SKM assessed the significance, likelihood, and other materiality scores of each positive and negative impact and analyzed the materiality rankings of the impacts and sustainability issues.
Approve and Disclose the Identification Results SKM adjusted the materiality levels of its positive and negative impacts and sustainability issues after considering the materiality rankings obtained from the questionnaires, stakeholders' perceptions of the impacts, and the current status of relevant internal policies and mechanisms. The 2025 identification results and materiality rankings comprised 7 key topics, 8 secondary topics, and 3 miscellaneous topics. The Sustainability Report provides enhanced disclosures on the management mechanisms and corresponding GRI Disclosures for the key topics.

Results from Material Topic Identification

永續議題 正面衝擊 負面衝擊 2025 重大性 * 2024 重大性 *
Risk Management - Improper Mall and Public Safety Management; Improper Risk Management Key Topic Secondary Topic
Information Security and Privacy Protection - Corporate or Customer Data Breaches Key Topic Key Topic
Product Quality & Product Content Responsibility Protecting Customer Rights through Product Quality and Content    Improper Product Quality and Content Managemen; Improper Event and Advertising Content Management Key Topic Key Topic
Fair and Healthy Workplace - Compromised Workplace Safety and Labor Rights Key Topic Secondary Topic
Corporate Governance and Ethical Management - Poor Corporate Governance Key Topic Key Topic
Customer Relationship Management Excellent Customer Relationship Management Customer Reports, Complaints, and Disputes Key Topic Key Topic
Circular Economy and Waste Management Circular Economy Promotion Waste Pollution Key Topic Key Topic
Sustainable Supply Chain Shared Prosperity and Sustainable Development with Suppliers Poor Supply Chain Risk Management Secondary Topic Miscellaneous Topic
Digital Innovation     Advancing Digital Innovation to Enhance Customer Experience and Operational Efficiency - Secondary Topic New Topic
Sustainable Consumption Initiatives Raising Sustainability Awareness to Promote Industry Development - Secondary Topic Secondary Topic
Social Good and Arts & Culture Promotion Promoting Arts, Culture, and Community Development Secondary Topic Secondary Topic
Talent Attraction and Retention     Attracting and Retaining Outstanding Talent - Secondary Topic Secondary Topic
Talent Cultivation and Development Comprehensive Talent Training and Development Mechanisms - Secondary Topic Key Topic
Operational Performance Protecting Shareholder Rights and Interests - Secondary Topic Key Topic
Low-carbon Energy Management Reducing Environmental Footprint Energy Consumption and Greenhouse Gas Emissions Miscellaneous Topic Miscellaneous Topic
Biodiversity Biodiversity and Ecosystem Conservation - Miscellaneous Topic New Topic
Water Stewardship    -   Water Consumption Miscellaneous Topic Miscellaneous Topic
  • Note：
    1. The materiality levels of the following sustainability issues changed from the previous year: “Talent Cultivation and Development,” “Talent Attraction and Retention,” and “Operating Performance” each decreased by one level, while “Fair and Healthy Workplace,” “Risk Management,” and “Sustainable Supply Chain” each increased by one level. Based on benchmark research and an assessment of SKM's operations and sustainability initiatives, two sustainability issues were added this year: “Intellectual Property Protection,” classified as a secondary topic, and “Biodiversity,” classified as a miscellaneous topic.
    2. Key topics, related management measures, and related GRI disclosures are disclosed in this report.