MATERIALITY |

Focusing on What Truly Matters

At Happiest Minds, we believe that our sustained business performance and reputation are closely linked to the value we create, not only for our shareholders, but also for our Happiest Minds, customers, communities, and the environment. As we advance on our sustainability journey, it becomes increasingly important to clearly understand and act upon the ESG (Environmental, Social, and Governance) topics that are most relevant to our business and stakeholders.

To achieve this, we conduct a structured and inclusive materiality assessment, which enables us to identify, evaluate, and prioritize key sustainability issues that can significantly impact our ability to create long-term value. The assessment is anchored in international frameworks and considers inputs from both internal and external stakeholders.

Our Materiality Assessment Process

Issue Identification: We begin by scanning internal operations, industry trends, global reporting standards (such as GRI, SASB, BRSR), and stakeholder feedback to identify a comprehensive list of potential material topics.
Stakeholder Engagement: We engage with key stakeholder groups including members, investors, customers, regulatory bodies, and community partners to understand their expectations and concerns regarding sustainability
Prioritization and Evaluation: Identified topics are assessed based on two key dimensions: their potential impact on our business and their importance to stakeholders. This helps us determine which issues require focused attention and action.
Classification into Risks and Opportunities: Each material issue is categorized as either a risk or an opportunity:
- Risks are evaluated for their severity, and mitigation strategies are designed to manage or minimize adverse impacts
- Opportunities are leveraged through targeted initiatives that drive innovation, resilience, and shared value creation
Integration into Strategy: The results of the assessment inform our ESG strategy, risk management framework, and decision-making processes across all levels of the organization.

This process is reviewed and updated periodically to reflect changing business priorities, emerging risks, and evolving stakeholder expectations. By doing so, we ensure that sustainability is not a parallel initiative but an integral part of our business growth strategy.