We consider matters to be material if they have the potential to substantially affect our ability to implement our strategy as a state-owned company and fulfil our commitment to creating and sustaining value for our stakeholders over the short-, medium- and long-term.
How we determine materiality
Our material matters, which include risks and opportunities, are derived through an integrated assessment process conducted by our executives and approved by the Board within the context of our overarching governance framework and operating model. This process is depicted below, followed by a more detailed discussion on each stage of the process.
Identify relevant internal and external matters
We assess local and global business conditions that have the potential to affect our business negatively or positively. This includes regular reviews of global megatrends, aviation-specific trends and high-impact events.
We identify our stakeholders, review and analyse their concerns and needs in relation to our operating context, and engage with them. This process enables us to develop and sustain positive, value-creating relationships with our stakeholders.
Risks and opportunities:
A comprehensive risk analysis of our business informs our assessment of materiality and strategic decisions.
Assess material matters
Significance of material matters on external and internal stakeholders
We classify our material matters by assessing the relevant internal and external risks and opportunities identified according to the significance to internal and external stakeholders.
Materiality prioritisation process
Material matters are prioritised according to the magnitude of the effect on the Group’s strategy, governance, performance and prospects. We place emphasis on these material matters, with a focus on our strategic response, importance to stakeholders, the risks and opportunities, and the outcomes and trade-offs. The below matrix ranks material matters in terms of the level of significance, determined by their likelihood and magnitude, in relation to internal and external stakeholders.
This year, we have strengthened the report’s connectivity by integrating our prioritised material matter disclosures within the respective performance review sections.