Materiality Assessment
Materiality Assessment Process
The Materiality Assessment serves as a mechanism to identify and evaluate economic, social, and environmental factors that impact BAM operations. This is achieved by studying national and international sustainability principles, guidelines, and standards, alongside the expectations and concerns of relevant stakeholders. In 2025, the Company identified its material topics by adopting the Global Reporting Initiative (GRI) framework and relevant SASB indicators. The assessment evaluates business impacts across five key dimensions: Economic, Governance, Environmental, Social, and Human Rights.
Key Steps in Materiality Assessment Process
Understand the Organization’s Context
BAM reviewed the material sustainability topics from 2024 along with current internal and external data relevant to its business context. The process includes an analysis of the corporate vision, mission, policies, business relationships, Sustainable Development Goals (SDGs), and industry trends at both national and international levels. Additionally, the Company integrates insights regarding the expectations, concerns, and impacts identified by key stakeholder groups. This comprehensive review led to the identification of 2025 Material Sustainability Topics relating to the Company’s context across Economic, Governance, Environmental, Social, and Human Rights dimensions.
Identification of Actual and Potential Impacts
BAM identifies and evaluates significant impacts arising from business operations on all stakeholder groups through a structured prioritization process. This involves identifying both actual and potential impacts, encompassing both positive and negative effects. These impacts are assessed across the dimensions of the Economy, Environment, Society, and Human Rights throughout the entire value chain. By conducting comprehensive due diligence, the Company has established a set of Material Topics that cover five core dimensions: Economic, Governance, Environmental, Social, and Human Rights.
Assessment of the Significance of Impacts
BAM assesses the significance of sustainability topics by entering identified actual and potential impacts into a prioritization process. This process utilizes the Double Materiality approach to determine the material topics most relevant to the organization’s context, based on both impact materiality and financial materiality criteria.
Prioritizing the Most Significant Impacts for Reporting
BAM presents the identified sustainability topics to senior management for review and verification of completeness. This ensures that the material topics remain aligned with the business context, the impacts generated by business processes throughout the value chain, and the concerns of all stakeholder groups. In 2025, Senior Management approved 16 material sustainability topics (Material Topics) for the Company. These topics cover the dimensions of the Economy, Governance, Environment, Society, and Human Rights. Furthermore, these topics were presented to and formally approved by the Board of Directors, with details as follows:
Key Issues Analysis Table
Summary of Material Sustainability and BAM Impact
Economic and Governance Dimension
Environmental Dimension
Social Dimension
Human Rights Dimension
Economic and Governance Dimension
Social Dimension
Environmental Dimension
Human Rights Dimension
The 2025 Material Topics are derived from a materiality assessment process based on the principle of Impact Materiality. This report marks the fourth edition produced to disclose the sustainability performance of BAM for the 2025 reporting cycle. BAM utilizes these high-priority material topics as the primary framework for defining and developing the corporate sustainability strategy. This approach ensures the driving of balanced growth and long-term sustainability.
BAM has conducted an assessment of actual and potential impacts, including both positive and negative effects. These impacts cover the dimensions of Economy, Governance, Environment, Society, and Human Rights, affecting both the Company and stakeholders throughout the value chain.
Economic and Governance Dimension
Material Sustainability Issue
Material Sustainability Issue
Access to Products and Services and Financial Literacy
Business
BAM prioritizes promoting access to products and services and providing financial literacy to customers. The Company is committed to developing diverse service channels to ensure comprehensive and fair access, coupled with providing accurate and sufficient for customer decision-making, in alignment with the needs and financial situations of each individual.
Stakeholder
BAM continuously promotes access to products and services and debt restructuring processes to enhance customers’ ability to conveniently and inclusively access its services and debt rehabilitation processes. Simultaneously, BAM seeks to enhance customers’ financial literacy and understanding, thereby contributing to the mitigation of persistent debt issues and supporting long-term economic stability.
Environmental Dimension
Material Sustainability Issue
Material Sustainability Issue
Circular Economy
Business
BAM manages its assets and operations with a focus on resource efficiency, waste reduction, and creating new value from existing assets. This approach enhances business returns while simultaneously promoting economic, social, and environmental sustainability.
Stakeholder
The circular economy allows all BAM stakeholder groups to benefit together, creating shared value and promoting long-term sustainability.
Social Dimension
Material Sustainability Issue
Material Sustainability Issue
Succession Planning, Talent Attraction, Retention, and Development
Business
Effective human resource management empowers personnel to perform their duties efficiently and enhances their capabilities, thereby supporting organizational growth and the achievement of business objectives and goals. Recognizing this importance, BAM is committed to continuously improving and developing its management processes.
Stakeholder
Should BAM effectively manage its human resources, employees will enhance their capabilities and grow in tandem with the organization. Furthermore, the Company promotes collaborative engagement in socially beneficial activities, cultivating a spirit of giving among employees.
Human Rights Dimension
Material Sustainability Issue
Material Sustainability Issue
Data Privacy and Cybersecurity
Business
Should BAM effectively manage cybersecurity and data privacy, it will build customer confidence in using the Company's services, create competitive advantage, and drive sustainable business growth. Conversely, should cybersecurity and data privacy systems prove ineffective, it may expose the business to risks that could ultimately impact the Company's financial position and operational performance, as well as pose reputational risks that erode stakeholder confidence and trust.
Stakeholder
Cyber threats remain a critical risk that the Company prioritizes, particularly as business operations increasingly involve external connections with business partners and service providers. Should cybersecurity and data privacy systems prove inadequate, this may result in personal data breaches, compromised data security, cyberattacks, and data theft.