Materiality Assessment

We conducted a materiality assessment in accordance with the GRI Standards to identify material issues that may affect our overall sustainability and select topics for the report. To this end, we created a pool of issues based on the results of analysis on internal and external environment with focus on international standard analysis, benchmarking of leading companies, and media research, and assessed the business impact and stakeholder interest. As a result, we selected three key issues and ten material issues. This report was prepared to share our activities and progress and maintain close communication with our stakeholders.

Materiality Assessment Process
Step 1|Create a pool of sustainability management issues
Analysis of external environment
Analysis of external environment Bench- marking
  • ESG reporting issues and trends in the oil & gas industry
    - Analysis of 9 companies (7 overseas, 2 domestic) among competitors
International standard analysis
  • Analysis of domestic and international standards covering all ESG-related issues
    - GRI Standards, DJSI, ISO 26000, UNGC, UNSDGs
  • Analysis of industrial standards in the oil and gas industry
    - SASB, IPIECA, MSCI, EcoVadis
Media research
  • Research on articles about SK innovation in 2020
    - 1,363 valid articles were analyzed out of 3,3311)
Stakeholder survey
  • Survey with external stakeholders2)
    - 114 participants
Analysis of internal environment
Analysis of internal environment Internal data review
  • Analysis of CEO's New Year's address keywords
  • Analysis of the interviews with employees in charge
Employee survey
  • Survey with employee
    - 1,302 participants
  • Step 2|Assess and prioritize
    Select 33 ESG-related issues
    Analysis of stakeholders’ interest
    • Rate the results of international standard analysis
    • Analysis of media exposure
    • Analysis of the results surveys conducted with suppliers and sustainability experts
    Analysis of impact on business
    • Rate the results of industry benchmarking
    • Analysis of CEO’s New Year’s Address keywords and internal management data
    • Applying extra points based on key issues of sustainability management and directions through interviews with people in charge
    Step 3|Select reporting issues
    Scoring materiality by issue
    Issues of public interest and oil & gas industry, Issues of internal and external stakeholders, Key reporting issues, Board review
    Issues of public interest and oil & gas industry, Issues of internal and external stakeholders, Key reporting issues, Board review
    Step 4|Discuss the direction of reporting and activities
    Select 3 key issues and 7 material issues
    Key issues 1 Promoting green business and investment
    • Framework & Frontier 1.5D response to climate change
    • Update Net Zero Roadmap
    • Just transition
    • Expanding green portfolio
    Key issues 2 Responding to climate change
    Key issues 3 Reducing wastes and supporting circular economy
    • Increasing waste recycling rate and building a circular economy
    Materiality Assessment Results

    The key ESG issues selected as a result of the materiality assessment are 'Green business and investment', 'Response to climate change' and 'Waste reduction and circular economy'. We have also added a topic, 'Upgrading Governance to the Global Level', in the Focus Area section to share the progress we have made in innovating governance since 2021. Further information about these issues can be found in the Focus Areas chapter. We also included information about our activities and progress related to seven other issues in this report and the ESG Performance Report.

    [Materiality Assessment Results]
    Rank Reporting Issues Pages GRI Standards
    ESG Report ESG Performance Report
    1 Green business and investment 16-20, 25-27, 31-33 -
    2 Response to climate change 12-17, 35-40 305-1~5
    3 Waste reduction and circular economy 22, 42-43 10, 114 306-3,5
    4 Engagement and contribution to local communities 57-58 62-74, 126-127 413-1
    5 ESG Management of suppliers 55-56 52-56, 123 308-1~2, 414-1~2
    6 Protection of employees’ human rights 66-67 14-20, 126 412-1~3
    7 Ethical management & fair trade 49-50 40-46, 122 102-16~17, 205-2~3, 206-1
    8 Occupational safety and health 44-45 33-38, 125 403-1~10
    9 Fair recruitment and compensation 25-26 401-1, 405-2
    10 Employee benefits 46-47, 64-65 29-30 401-2
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