Sai Life Sciences Sustainability Report - 2023-24

16 Materiality at Sai Life Sciences is crucial for unlocking business success. Materiality helps us identify the issues that matter most to our business. It drives our focus on environmental, social, and governance (ESG) issues that are critical to our operations and aligned with the best interests of our stakeholders. Through our materiality assessments, conducted once every 3-5 years, we identify and prioritize the key topics that will shape our strategy and guide our efforts in creating long-term value. By concentrating on what truly matters, we ensure that our business remains resilient, responsible, and aligned with the evolving expectations of our stakeholders. How we conduct Materiality Assessment We use materiality assessment as a tool to identify and prioritise the most critical ESG issues or material topics for the organisation and its stakeholders. It involves the following steps: • We have taken the materiality topics from the materiality assessment conducted in the year 2019. We undertook a review to identify new material topics that have become relevant based on the needs of the business and increasing customer focus on ESG. • Various sources of information, such as industry standards, close look at GRI, benchmarking with peers, reference to SASB standards-health care sector specific were taken into consideration to identify and integrate new material topics. • We used a qualitative and quantitative approach for designing the materiality assessment method. • The materiality assessment was driven through a Survey Questionnaire that captured questions across the focus areas – Environment, Labour and Human Rights, Ethics and Sustainable Procurement. The Survey Questionnaire was administered across Management Team members and Functional Heads representing all cross functional departments. • The responses to the questionnaire were rated on a scale of 1- 4 wherein 4 denotes Materiality Our Sustainability Approach the highest and 1 denotes the lowest rating. • The responses of the Survey questionnaire were analysed to arrive at the list of material topics and those material topics which were rated 4 and received a 70% and above weightage were defined as high priority material topics. • The high priority material topics were further analysed through stakeholder consultation and the list of high priority material topics were finalized. • Each prioritized material topics were categorized across the focus areas • The x-axis represents the impact on our business (how important it is to the company) and the y-axis represents the impact on your stakeholders (how important it is to them). • By assessing the impact of each material topic on our business and the stakeholders, the material topics were plotted on a materiality matrix. • The issues in the top-right quadrant are the most material ones, meaning they have a high impact on both our business and our stakeholders. • The materiality matrix forms the basis to review and design the sustainability strategy, goals actions and paves the framework for our reporting. Materiality Assessment Identify Assess Prioritize Consultation Assign Significance Identify materiality topic Assess the impacts of material topics Prioritize the identified material topics Stakeholders consultation for prioritization Assign significance based on importance to business and stakeholders

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