Materiality

Our materiality framework encompasses a broad spectrum of Environmental, Social, and Governance (ESG) considerations. Determination of these material issues is central to our business model, ensuring that strategic goals align with internal operational capacities, business goals, and the expectations of its diverse stakeholder base.

The Company relies on a comprehensive materiality assessment that balances quantitative and qualitative factors, the importance of which is based on two core criteria: its relevance and significance to both stakeholders and the Company. Significance is rigorously evaluated by relating the probability of an event or issue occurring to the magnitude or severity of its potential impact.

The materiality process employs a multifaceted evaluation approach, assessing the following:

• Financial Significance: Impact on the Group’s financial standing is methodically assessed through quantitative metrics, encompassing revenue streams, cost structures, and capital allocation.
• Operational Impact: Key Performance Indicators (KPIs) evaluate and track operational efficiencies, and technological infrastructure requirements to gauge how specific issues will effect day-to-day operations.
• Stakeholder Relevance: Strategic planning is augmented by stakeholder mapping and synthesis of customer feedback, investor expectations, employee concerns, and public priorities.
• Climate and Sustainability related risks and opportunities: The materiality assessment also incorporates climate and sustainability related risks and opportunities that may affect our strategic priorities, operational resilience and value creation. The SLFRS S1 and S2 Disclosures chapter provides further insights into these concerns.

The materiality assessment process and outcomes are further shaped by the Company’s legal and regulatory compliance framework, which in turn is influenced by local regulations and global best practices. The Group actively tracks changes in telecommunications regulations and ensures its operations align with appropriate standards. Furthermore, SLT embeds sustainability metrics and competitive intelligence into its assessments to align its reporting and business practices with internationally recognised ESG standards and benchmarks.

The Materiality Matrix, plotted on two dimensions, maps topics based on importance to SLT-MOBITEL and importance to stakeholders. This matrix visualises the priority material concerns, which inform management focus and resource allocation.

The identification of material topics is intrinsically linked to the Group’s Enterprise Risk Management (ERM) framework, as the matters of highest stakeholder and business importance directly inform the Company’s assessment of critical risks and emerging opportunities.

Guided by global best practices and ISO 31000 standards, the ERM framework systematically categorises these dynamic material issues into strategic, external, and internal risks, and embeds risk awareness into day-to-day business operations.

This alignment is actively managed through a robust risk reporting structure, where functional groups escalate potential risks to the Risk Management Steering Committee (RMSC) for management-level analysis, with ultimate governance and oversight provided by the Board’s Audit Committee.