Annual Report 2020

China Merchants China Direct Investments Limited Annual Report 2020 70 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) MATERIALITY ASSESSMENT To keep pace with latest sustainability trends and ensure that this ESG report addresses the relevant and material ESG issues of the Company, the ESG Taskforce has conducted an ESG materiality assessment. Our materiality assessment consists of the following three processes: 3. Verification ‧ Identifying potential issues through stakeholders engagements and benchmarking with suitable peers ‧ Prioritising the ESG significance based on the feedback from stakerholders ‧ Affirming the relevant and material issues after verification by management and external consultants 1. Issue Identification 2. Significance Prioritisatioin We leverage the materiality assessment results to define the scope and the extent of our ESG report, and identify focusing areas of our ESG effort, so that we can devise more comprehensive, transparent and specific responses to enhance the quality of our ESG report and meet stakeholders’ expectations. We have identified the following ESG issues, which are determined to be material to the Company and the Investment Manager, to be covered in this ESG report: Focusing areas Material ESG issues Environmental Protection ‧ Waste Management ‧ Energy Consumption ‧ Environmental Impact Management Social Responsibility ‧ Labour Practices ‧ Health and Occupational Safety ‧ Employees’ Development and Training ‧ Prevention of Child and Forced Labour ‧ Supply Chain Management ‧ Responsible Investment ‧ Anti-corruption ‧ Community Programmes