Materiality Assessment and Target

At Mega Lifesciences, sustainability begins with understanding what matters most to our business and to the people, communities and partners connected to us. We conduct materiality assessment to identify the environmental, social and governance topics that influence MEGA’s ability to grow sustainably, while also considering the impacts that our business may have on the economy, environment and people.

This process helps us understand two important dimensions: how MEGA’s activities, products, services and business relationships may create impacts externally, and how external trends, stakeholder expectations, regulations, climate risks and market conditions may influence MEGA’s business resilience and long-term value creation.

Guided by the MEGA Way, we use the results of materiality assessment to strengthen our sustainability strategy, manage risks, improve performance and continue building a company that can live and grow beyond all of us.

Our Materiality Assessment Approach

MEGA conducts materiality assessment annually as part of our sustainability management and reporting process. The assessment is based on stakeholder engagement, business context, current realities, regulatory developments and MEGA’s environmental, social and governance footprint.

In 2025, MEGA considered feedback and inputs from key stakeholders, including shareholders, analysts, financial institutions, customers, suppliers, employees, communities, government agencies and regulators. These inputs were gathered through channels such as annual and quarterly meetings, opportunity day interactions, site visits, customer interactions, employee feedback, supplier inputs, regulatory updates, surveys and other engagement activities.

The assessment process helps MEGA to:

Identify actual and potential impacts related to our business activities and relationships;
Understand issues that may affect MEGA’s business continuity, competitiveness and stakeholder trust;
Prioritize material topics based on importance to stakeholders and importance to business;
Align sustainability priorities with risk management, business planning and operational improvements; and
Set targets and management focus areas for continuous improvement.

Materiality Matrix

MEGA’s materiality matrix reflects the relative importance of each sustainability topic to stakeholders and to the business. The results are grouped into three dimensions: Environmental, Social and Governance.

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Environmental Dimension

Dimension		Key Performance Indicators	Reporting Boundary
E1	Waste Management and Hazardous Materials	Optimization and disposal.	Thailand manufacturing
E2	Water Management	Intensity and recycling.
E3	Ground Water Utilization	Risk Assessment and analysis of ground water usage.
E4	Energy Intensity and Clean Energy Pivot	Improving Carbon footprint and reducing energy consumption.
E5	Sustainable Packaging	Recycled / Recyclable packaging and reducing wastage.
E6	Biodiversity Conservation	Study of Biodiversity and impact of Mega’s operations in sensitive areas if any.
E7	Climate Adaptation and Mitigation	Maintaining the sustainability of the business by optimizing the use of resources and considering optimizing renewable resources.

Social Dimension

Dimension		Key Performance Indicators	Reporting Boundary
S1	Availability and Affordability of Medicines	To make good quality medicines available at affordable prices.	Thailand and Rest of World
S2	Talent Attraction and Retention	Ensuring congenial workplace for attracting and retaining talent.
S3	Employee Health and Safety	Elimination or Reduction of employee injuries, fatalities and absenteeism due to workplace injuries.
S4	Human Rights	Conducting Human Rights risk assessment within the company and in Supplier workplace.
S5	Personal Data Protection	Implementation of Data Protection laws and ensuring data protection.
S6	Diversity, Equity & Inclusiveness	Ensuring that employees are treated equally and allowed fair opportunity to grow.
S7	Product Stewardship and Customer Satisfaction	Ensuring that the products and services meet customer’s expectations and feedback system is functional.

Governance Dimension

Dimension		Key Performance Indicators	Reporting Boundary
G1	Ethical Conduct	Ensuring compliance with business Ethics and Code of Conduct.	Thailand and Rest of World
G2	Anti-Corruption / Anti-Bribery	Conducting bribery / corruption risk assessment and mitigation. Driving industry excellence in this space.
G3	Intellectual Property Protection	Ensuring compliance with Intellectual Property laws and ensuring protection of Company’s intellectual property.
G4	Cyber Security	Risk Assessment and protection against cyber attacks.
G5	Supply Chain Risk Management	Ensuring compliance with supplier code of conduct and screening suppliers before onboarding.
G6	Risk & Crisis Management	Identifying and mitigating operational risks.
G7	Business Continuity Management	Ensuring that businesses continue in the event of disasters, adverse impacts having a high negative impact on business.
G8	Innovation Management	Considering the Double Materiality approach we have classified the Materiality topics.

From Assessment to Action

The results of materiality assessment are used to guide MEGA’s sustainability priorities, risk management, operational planning, stakeholder engagement and disclosure. Each material topic is managed by responsible functions and ESG dimension leaders, with oversight through MEGA’s sustainability governance structure.

MEGA also links material topics with performance monitoring and public disclosure. Environmental topics are tracked through indicators such as energy consumption, renewable energy, greenhouse gas emissions, water withdrawal, water consumption, waste generated, waste diverted from disposal and waste directed to disposal. Social topics are tracked through areas such as employee engagement, training, health and safety, human rights, diversity and customer satisfaction. Governance topics are tracked through ethics, anti-corruption, risk management, supplier governance, business continuity and cyber security processes.