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Our ESG Approach

Materiality Assessment

SK chemicals conducts a materiality assessment annually and publishes its sustainability report based on the results. The assessment is carried out with participation from internal and external stakeholders and is conducted from a comprehensive risk perspective that includes social, environmental, governance, and ethical aspects. To secure reliability and independence, both the materiality assessment procedure and outcomes undergo annual review by the Board of Directors and third-party assurance.

Materiality Assessment Process

  • STEP 1
    Establish Issue Pool

    • Build an issue pool by reviewing business strategy, internal and external environmental factors, value chain analysis, media analysis, and other relevant sources.

  • STEP 2
    Identify Impacts, Risks, and Opportunities

    • Identify pathways through which ESG-related impacts, risks, and opportunities may occur

  • STEP 3
    Assess Impacts, Risks, and Opportunities

    • Evaluate the materiality of issues from the perspectives of environmental and social impact, as well as financial risks and opportunities.

  • STEP 4
    Select Material ESG Topics by Priority

    • Based on a defined threshold, select top-priority issues as material topics.

Dual Materiality

  • Financial Materiality

    International Standard Analysis
    • Applying criteria from major investment institution indicators such as DJSI, MSCI, CDP
    • Reviewing the utility and impact of investment institutions such as TCFD, SASB, reflecting IFRS, CSRD, S&P Global criteria
    Corporate Strategy
    • Reviewing strategies for the Green Chemicals and Life Science businesses
      - Applying Product Stewardship such as Green Portfolio and Product Safety
    • Considering business portfolios that align with climate change strategies and RE100
    Media Research
    • Analysis of articles exposing financial impacts among media issues
      - Analysis of factors that could have financial implications on SK Chemical due to ESG issues.
    • Applying financial impact to media issues affecting shareholders, investors, etc.
    Stakeholder Participation
    • Evaluating importance of issues in the E/S/G areas, weighted by financial impact
    • Reflecting expectations/concerns of stakeholders (shareholders, etc.) regarding non-financial activities
    • Analyzing seriousness of negative impacts, positive impacts, and financial impacts

  • Environmental & Social Materiality

    International Standard Analysis
    • Analysis of indicators from GRI Standards, ISO 26000, UN SDGs from the perspective of Environmental & Social Materiality
    • Responding to external stakeholder disclosure requirements from governments, civic organizations, etc.
    Benchmarking
    • Conduct analysis of internal and external disclosure materials of leading global companies and 10 peer companies in the same industry.
    • Comprehensive analysis reflecting industry initiatives, industry trends, etc.
    Media Research
    • Analysis of issues exposed in the media among E/S/G activities
      - Analysis of articles on how SK Chemical is affected by environmental and social issues.
    • Analysis of the impact of environmental/social issues on corporate reputation, branding, and social value
    Stakeholder Participation
    • Reflecting stakeholder interest from the perspective of current/future impact and negative/positive impact
    • Checking stakeholder expectations/concerns regarding business activities related to E/S/G issues

Dual Materiality Assessment Results

The results of the double materiality assessment can be found in the Sustainability Report for the corresponding year.

2022 Sustainability Report