Annual Report 2024

82 China Merchants China Direct Investments Limited Annual Report 2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) MATERIALITY ASSESSMENT In order to understand the needs of stakeholders and the latest sustainability trends, an ESG materiality assessment has been performed. This also ensures that our ESG report addresses the relevant and material ESG issues of the Company. We have adopted a 3-step approach when performing the materiality assessment: 1. Issue Identification Identifying the ESG related potential issues through stakeholders engagements and benchmarking with suitable peers 2. Significance Prioritisation Prioritising the ESG significance based on the feedback from stakeholders and materiality matrix 3. Verification Recognising relevant and material issues after verification by management and external consultants We utilise results from the materiality assessment to define the scope to the extent of our ESG report, which is used to identify the focus of the Company’s ESG effort, and this also allows the development of a more comprehensive, transparent and specific responses to further enhance the quality of our ESG report and meet stakeholders’ expectations. We have identified the following 13 ESG issues that are considered important by the Company and the Investment Manager. Based on the results obtained through internal and external materiality assessment in the form of questionnaire, this allows us to analyse and understand the importance of each of the ESG issues. These issues are ranked and listed below: