Annual Report 2020

CAN Membership In 2020, AirAsia joined the CEO Action Network (CAN), a peer-to-peer informal network of CEOs and Board members focused on sustainability advocacy, capacity building, action and performance. The objective of CAN is for captains of industry to work towards shaping future-ready and ESG-integrated business models and ecosystems. MATERIALITY ASSESSMENT In 2019, we conducted a comprehensive materiality assessment involving in-depth stakeholder engagement and impact assessment exercises to identify the matters that are important to AirAsia as well as to our stakeholders. The assessment was based on the following three steps: We conducted an analysis of sustainability issues based on current and emerging risks & opportunities, publications associated with the airlines industry and best practices of peer companies. A total of 16 material sustainability matters were identified. We engaged with SWGC members and stakeholder groups and conducted an Impact Assessment exercise for each of the 16 material matters. Results of the assessment were plotted on a materiality matrix from low to high importance. The materiality matrix was presented to the Board for its review and validation. Identification Prioritisation Validation Having identified our material matters through this rigorous process, we review the material matters annually to assess their continued relevance. The review process in 2020 involved our internal stakeholders (Allstars and SWGC), who agreed that all the material matters are still pertinent to our operations and stakeholder value creation. However, with the breakout of the pandemic, and concerted efforts by AirAsia to ensure the safety and well-being of our guests and Allstars, Health & Safety now has greater influence on our operations. This is reflected in the shift of this material matter within the matrix, as one of the top three priorities. Management also believe that certain material matters identified are very closely linked and, for greater clarity as well as to reduce overlapping of data in reporting on these material matters, the material matters have been merged. This included merging: • “Efficiency & Reliability” into “Operational Eco-efficiency” • “Brand Management” into “Technology & Innovation” • “Risk & Crisis Management” into “Corporate Governance & Conduct” • “Attractive & Inclusive Workplace” into “Human Capital Development” • “Human Rights” and “Responsible Tourism” into “Corporate Citizenship & Philanthropy” 99 ANNUAL REPORT 2020