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Materiality

BDMS annually conduct the materiality assessment to identify the key areas of focus and incorporate the results into our business priorities to ascertain the social, environmental, and governance issues that are most important to our stakeholders and, consequently, to the                long-term success of our company.

This year, as required by the latest international sustainability reporting framework, BDMS’s material sustainability topics were identified following ‘Double Materiality’ principle, which consider both impact materiality (the impact of BDMS on the economy, environment, and society) as well as financial materiality (the impact of environmental and social issues on BDMS’s financial performance and business value). This comprehensive view gave a complete understanding of the role and responsibilities of BDMS in addressing sustainability issues and contributing our long-term value creation for the environment and stakeholder groups. As a result, BDMS assigns the high executives of Corporate Sustainability Development and Innovation Management to assess primary sustainability materiality before acquiring approval from the BDMS Corporate Sustainability Development Committee.

Board responsibility in materiality assessment

BDMS Corporate Sustainability Development Committee has assigned high-level executives in Corporate Sustainability Development to annually conduct materiality assessment and report to the Board of Directors, which in charge of oversight, validates and approve of the materiality assessment result.

Materiality integration in risk management

To make the processes of risk identification and risk management more extensive, BDMS integrates the evaluation of critical materiality issues into its Enterprise Risk Management process such as service quality & patient safety, cybersecurity, occupational, health and safety, human capital development and wellbeing, energy, climate change, sale and label practice. By assessing financial materiality, BDMS has adopted financial risk criteria in determining the severity level of financial impact each materiality topics has on the Company. As a result of double materiality assessment, BDMS can cross-check the significant corporate risks and implement effective Enterprise Risk Management strategies, to the point where the resources for mitigation measures are properly allocated.

Assessment process and procedure

The sustainability materiality process and procedure are listed as follows:

1. Identification 

• Review sustainability materiality topics from the last fiscal year
• Study and compare the sustainability materiality referring to the national and global criteria such as the Global Reporting Initiative (GRI), Sustainable Development Goals (SDGs), Dow Jones Sustainability Indices, The Stock Exchange of Thailand (SET), and European Sustainability Reporting Standard (ESRS)
• Study and compare the sustainability materiality with leading peers in healthcare industry in Thailand and abroad
• Study and compare the effects on the sustainability goals in the healthcare business
• Review the sustainability materiality topics and receive feedback and opinions from the stakeholders for further process

2. Prioritization

• Identify actual and potential positive/negative impacts and risk/opportunity through engaging with relevant stakeholders and experts
• Assess the materiality of actual and potential positive/negative impacts and risk/opportunity for own operations and the (whole) value chain
• Prioritize material sustainability matters based on severity (scale of impact, scope of impact, remediability of impact) and likelihood (frequency/probability of impact)
• Develop survey/questionnaire for assessing impact materiality and financial materiality by having both internal and external stakeholders involved
• Organize the meeting for the BDMS Sustainability Development Committee about sustainability materiality in each category of stakeholders, survey data and BDMS critical topics
• Conduct online feedback surveys for internal stakeholder e.g., employee representatives, executives in each business group and stakeholder representatives
• Consolidate the results and derived into double materiality matrix

3. Verification and Credibility

• Verify and report the prioritization of sustainability materiality to the Committee for review and approval, and submit the materiality issues to the Board of Director for final revision and approval

4. Continuous Development 

Receive feedback and suggestions from stakeholders through various reporting channels for future improvement in sustainability development

Double Materiality Assessment

BDMS materiality consisted of 13 material issues. For the current period,  Sales and Labelling Practices and Access to Healthcare has been merged into Service Quality and Patient Safety and Innovation and Collaboration, respectively. Moreover, one new material issues have been added, which are Corporate Governance. As a result of the double materiality analysis, BDMS key material issues are presented in the following materiality matrix.

In 2023, the Company has assessed the key sustainability issues which can be divided into 3 categories and 13 fundamental material issues. The  impacted stakeholders from these issues include:

1) Customer and Patient 

2) Employee 

3) Doctor and Dentist 

4) Supplier 

5) Bank/Creditor 

6) Investor and Shareholder 

7) Community and Society

The details of each issue including description of risks and opportunities, financial impact, strategy and performance, and relevant framework are as follows:

	Impact and Financial Materiality
	Target and progress report on significant materiality
	Significant materiality issue impact to external stakeholders