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Our ESG Approach

Materiality Assessment

SK Chemicals conducts an annual Materiality Assessment and publishes a Sustainability Management Report based on the results. The assessment, grounded in the participation of internal and external stakeholders, focuses on comprehensive risk perspectives such as social, environmental, governance, and ethics.

Materiality Assessment Process

  • STEP 1
    Building an Issues Pool through Internal/External Environmental Analysis

    • Constructing ESG Issues Pool (25 issues)
    • Utilizing international standards, evaluation indicators, and media analysis

  • STEP 2
    Identifying the Actual and Potential Impact of Issues

    • Identifying issues currently and potentially impacting the company
    • Considering future events that may have important results despite uncertainty (GRI, IFRS)

  • STEP 3
    Materiality Assessment / Application of Dual Materiality

    • Financial Materiality
    • Evaluating the materiality of 25 issues from the perspectives of Environmental & Social Materiality

  • STEP 4
    Prioritization

    • Selecting significant issues based on the top 10 issues among all

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
    • Analysis of internal and external disclosures of global leading groups and similar industries (10 companies)
    • 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

2022 Sustainability Report