Double and Dynamic Materiality Assessment
The assessment considers the impacts that the Group’s activities, products, services, and business relationships may have on the economy, society, the environment, people, and human rights, as well as sustainability-related risks and opportunities that may affect operations, business continuity, costs, competitiveness, market access, and stakeholder confidence.
The Group applies the Double and Dynamic Materiality approach by integrating information from the business context, value chain, enterprise risk management, stakeholder perspectives, and evolving sustainability trends. This enables the assessment results to reflect both issues that are currently significant and those that may become increasingly significant in the future.
The assessment results inform strategy formulation, the management of impacts, risks, and opportunities, the prioritization of action plans, and transparent disclosure, supporting the creation of balanced value for the country, the people, and the organization.
Double and Dynamic Materiality Assessment
Double Materiality: Assessing Significance from Two Dimensions
The Double Materiality approach enables the Group to assess sustainability material issues from two interconnected perspectives: the impacts of the business on people and the environment, and the impacts that sustainability issues may have on the business.
Impacts of the Business on People and the Environment
Impact Materiality
The Group assesses how its activities, products, services, and business relationships may create positive or negative impacts on the economy, society, the environment, people, and human rights.
The analysis covers both actual and potential impacts, direct and indirect impacts, as well as impacts connected to activities across different parts of the value chain.
Impacts of Sustainability Issues on the Business
Financial Materiality
The Group assesses how sustainability-related risks and opportunities may affect operations, costs, investments, resource availability, market access, competitiveness, value chain continuity, and long-term value creation.
Considering both dimensions enables the Group to prioritize and manage sustainability issues in a balanced manner, taking into account its responsibilities towards people, society, and the environment, together with the risks and opportunities that may affect the organization.
Dynamic Materiality: Monitoring Changes in the Significance of Issues over Time
The Group recognizes that the significance of sustainability issues is not static. It may increase, decrease, or emerge as a new issue in response to changes in laws and regulations, stakeholder and investor expectations, technology, market trends, the impacts of climate change and nature-related developments, human rights issues, and the Group’s business context.
The Group therefore applies the Dynamic Materiality approach to assess how the impacts, risks, and opportunities associated with each issue may change across three time horizons:
This approach enables the Group to identify both issues that are currently significant and those that may affect stakeholders, the value chain, risk management, and the organization’s future value creation, allowing the Group to prepare and establish appropriate management approaches.
2025 Assessment Process
In 2025, the sustainability materiality assessment was conducted through five steps to ensure that the results were evidence-based, reflected stakeholder perspectives, and could be effectively applied in decision-making.
The Group began the sustainability materiality assessment process with secondary research to review sustainability issues receiving attention from international organizations and sustainability networks, as well as relevant requirements, laws, standards, and sustainability reporting frameworks. Information from various sources was used to develop the annual sustainability issue universe, which comprised a total of 128 issues in 2025.
For each issue, the Group considered its relevance to the business context, value chain, key impacts, and connections to enterprise value in order to identify impacts, risks, and opportunities, or Impact, Risk and Opportunity (IRO). The review of the external context, sustainability trends, regulations, and stakeholder expectations also enabled the Group to consider issues whose level of significance may change in response to evolving circumstances, supporting the Dynamic Materiality assessment.
The Group assessed the relevance of each issue to its business groups by considering the extent to which each issue relates to their operations, value chains, risks, opportunities, and management capabilities. The Group also gathered input from executives across its business groups, including the Sustainability Executive Committee. Their comments and recommendations enabled the Group to assess sustainability issues more clearly from a business perspective and improve alignment with the organization’s growth direction.
The Group conducts an annual survey of all 11 stakeholder groups. In 2025, questions relating to sustainability material issues were added to gather stakeholder perspectives, expectations, and concerns regarding each issue. The information received was considered together with business information and the external context to ensure that the prioritization reflected both issues significant to the Group and those considered important by stakeholders.
Following the collection of information through secondary research, the assessment of relevance to business groups, and stakeholder engagement, the Group analyzed and scored all 128 sustainability issues against established criteria under the Double Materiality approach.
This considered both impacts on the economy, society, the environment, and stakeholders, or Impact Materiality, and the impacts that sustainability issues may have on business operations, risks, opportunities, costs, value chain continuity, and the Group’s value creation, or Financial Materiality. Charoen Pokphand Group also considered external circumstances and trends that may change the significance of each issue in the future, ensuring that prioritization reflected both current conditions and issues that may become increasingly significant under the Dynamic Materiality approach. The analysis was used to prioritize and consolidate the issues into 23 sustainability material issues before they underwent an independent external review for transparency and completeness.
The Sustainability Executive Committee is responsible for reviewing the results of the sustainability materiality assessment and the independent external review before reporting them to the Executive Committee for acknowledgement and approval prior to disclosure.
Identification of Impacts, Risks, Opportunities, and Dependencies
After compiling and developing the sustainability issue universe, the Group identified the impacts, risks, opportunities, and dependencies, or Impacts, Risks, Opportunities and Dependencies (IROs), associated with each issue.
The IRO analysis connects the universe of 128 issues with the Double and Dynamic Materiality assessment, enabling the Group to understand where each issue may arise, who or what may be affected, how the issue may affect the business, and how its level of significance may change in the future.
The analysis covers
five key dimensions:
Nature of Impacts
Assess whether impacts are actual or potential, positive or negative, direct or indirect, and the time horizon over which they may occur.
Stakeholders and Environmental Systems That May Be Affected
Includes employees, workers in the value chain, farmers, business partners, customers, consumers, communities, vulnerable groups, natural resources, and ecosystems.
Position in the Value Chain
Assess whether an issue may arise in sourcing and agriculture, the Group’s operations, transportation and distribution, the use of products and services, or within communities and environmental systems.
Pathways of Business Impact
Analyze impacts on business continuity, operational efficiency, costs, resource availability, legal compliance, market access, customer confidence, workforce readiness, and value chain resilience.
Dependencies on Resources and Relationships
Assess the factors on which the Group depends to operate and create value, such as natural capital, human capital, business partner capabilities, customer confidence, community acceptance, digital infrastructure, and governance systems.
From Assessment to Results
Through the assessment of all 128 sustainability issues, integrating information from the business context, stakeholders, the value chain, and the analysis of impacts, risks, opportunities, and dependencies, the Group prioritized and consolidated the results into 23 sustainability material issues. The results are presented through the Materiality Matrix, reflecting both the level of impact on the economy, society, the environment, human rights, and stakeholders, as well as the level of risks and opportunities that may affect the Group’s business operations and long-term value creation.
