Stakeholder Engagement & Materiality Process

Sustainability Management Approach Our Progress Stakeholder Engagement & Materiality Process Way Forward

STAKEHOLDER ENGAGEMENT & MATERIALITY PROCESS

STAKEHOLDER ENGAGEMENT

Engaging our stakeholders proactively will help us to stay ahead and better prepared to deal with the risks in the long run and ensure the Company’s sustainable development. Therefore, we engage with them in a regular manner through different methods and channels to understand their concern, expectations and priorities. These engagement activities are based on the guidelines of the GRI materiality process.

Our Stakeholders

We tailor-made the appropriate engagement methods for all internal and external stakeholders, and actively communicate with them to collect their feedback.

SHAREHOLDERS

Meetings
Interviews
Business reports
Sustainability reports

CUSTOMERS

Sales meetings
Interviews
Customer relations management activities
Sustainability reports

EMPLOYEES

Staff activities
Monthly meetings
Management workshops
Interviews
Online survey
Training and development program
Sustainability reports

BUSINESS PARTNERS

Meetings
Interviews
Industry conferences
Online survey
Partnering program
Sustainability reports

SUPPLIERS

Meetings
Supplier audits
Management workshops
Online survey
Contracts and agreements
Sustainability reports

COMMUNITIES

Community group discussion
Corporate responsibility initiatives
Company website
Complaint hotline
Sustainability reports

NGO & INSTITUTIONS

Sustainability workshops
Interviews
CSR activities
Environmental Impact Assessment
Sustainability reports

AUTHORITIES

Interviews
Industry conferences and seminars
Audits
Regulatory compliance reports
Sustainability reports

Our Engagement Process

The stakeholder engagement process is not confined solely to ESG issues, as the exercise is crucial to the Company’s business and operation. As different stakeholder groups have different interests and perspectives, an all-rounded stakeholder engagement unveils the key issues affecting the Company’s longterm development. When the most material aspects were identified, they will be consolidated into different pillars of our Ambitions 2030 and thereby the stakeholder engagement informs business strategy. The material issues reviewed and confirmed by our management will be assessed and addressed with the support from our governance committees, the business units, employees and other key stakeholders. These actions will be integrated to become part of the Company’s daily operation.

MAJOR FEEDBACK RECEIVED

Sustainability Priorities

Stakeholders considered the sustainability priorities we identified in last reporting are still valid and agreed with the strategic actions we determined under the Ambitions 2030.

Climate Change Threat

All stakeholders recognized the increasing climate change threat and suggested Alliance to accelerate our climate actions.

Low Carbon Solutions

Developers are looking for more low carbon construction materials. They understood the application of recycled materials such as GGBS can reduce the embodied carbon of concrete. They also considered the cost for using low carbon materials vs the green value that may be generated from low carbon products. For contractors, they welcome more green solutions on products and logistics offered by Alliance, so that their carbon footprint from building materials can be reduced and they can support their customers’ green building rating.

Legal Compliance

Stakeholders from government department appreciated Alliance takes up advocacy role in the industry to promote good environmental practices and suggested that operators in the polluting industries like concrete should go beyond legal compliance and emphasized the importance of obtaining “social license”.

Waste Reduction and Recycling

Waste reduction is one of Hong Kong’s top environmental issues, stakeholders suggested Alliance to look into opportunities from wasted materials recycling. Contractors are happy to have concrete product options made with recycled aggregates.

Health, Safety and Environment (HSE) Performance

Application of new technologies for improving HSE performance was supported by stakeholders. Some stakeholders even consider it a solution for tackling the difficulties in employing labors.

Impact to the Community

Most of our stakeholders consider maintaining a high level of truck cleanliness and road safety of Alliance’s truck fleet are essential to building a harmonious community and improving Alliance’s brand image. These HSE actions will reduce the negative impact to the community.

Digitalization and Transparency

Digitalization transformation was widely discussed with different stakeholders. They considered it a “must have” for all organizations in all sectors. The contractors appreciate Alliance’s proactive moves to promote E-Docket customer app and look forward to fully digitalized ordering and delivery processes, e.g online ordering and GPS truck tracking. These will help enhancing Alliance’s operational transparency.

MATERIALITY PROCESS

Based on the past stakeholder engagement process, we have consolidated all related sustainability items under the 4 aspects of Environment, Social, Governance and Economic. These aspects can echo with our Ambitions 2030 plan. After identifying the most material issues from the latest stakeholder engagement, we can determine plans and actions for addressing them in each Ambitions 2030 strategic focus.

• Materiality Matrix

The materiality matrix set out below reflects the results of the stakeholder engagement and materiality review for the reporting period.

Other less material issues are:

Biodiversity and habitat conservation
Community engagement
Corporate social responsibilities
Diversity and equality

Employee development
Human rights
New industry trend management

Responsible sourcing
Transparency in sustainability
Use of new & renewable energy

Sustainability Management Approach

Our Progress

Way Forward