Materiality Assessments

One of the most important roles of a holding company is to recognize and review key ESG issues in business areas. As a first step, we identify ESG materiality factors by business areas and make decisions by considering those factors throughout our businesses.

Materiality factors that stem from environmental and social issues provide both risk and opportunity for the company while also having an impact on the business environment and society. We are actively preventing such risks as we explore opportunities to create value.

ESG Materiality Factors by Business

GRI 102-44

SASB EM-RM-530a.1

	Environment	Social	Governance
SK Chemicals	Promoting carbon neutrality to mitigate climate change Developing green technologies and expanding investments Developing eco-friendly materials and bio-solutions Achieving zero waste Building a water shortage risk response system and conserving water resources Promoting biodiversity and environmental protection activities	Prohibiting abuses of power for self-interest and implementing anti-corruption measures Reducing hazardous chemical emissions Ensuring equal opportunities and respect for all employees Improving ecological and social impact via evaluation of the entire product process and communicating its results Improving employee development system	Considering ESG management priorities when making business and investment decisions Enhancing Board expertise, independence and diversity Reporting ESG management policies, performance and goals through the Board and discussing future directions for its development Reorganizing Board structure and operational policies Enhancing transparency in disclosing ESG management information and expanding communications
SK Gas	Diversifying the green business portfolio Building a zero carbon (hydrogen/ammonia) business model Strengthening the low carbon (LPG/LNG) business model Investing in green technology Reducing greenhouse gas emissions Addressing climate change Saving and recycling water Protecting ecosystems and endangered animals and plants Managing and reducing wastes	Managing supply chain Employing and developing talent Securing occupational health and safety measures Emphasizing non-discrimination and equal opportunity Assessing human rights impact Contributing to the community	Implementing integrated ESG risk management Strengthening ethics and integrity Enhancing transparency in governance Improving economic performance
SK D&D	Addressing climate change with energy reduction Diversifying renewable energy business models Managing water resources Protecting biodiversity	Strengthening workplace health and safety management Acquiring talent and developing employees Building a sustainable supply chain Engaging in and contributing to the community Operating employee satisfaction management Supporting employee happiness Promoting fair trade and shared growth Enhancing information security	Upgrading the risk management system Securing new growth engines Strengthening Board-centered management Conducting compliance and ethical management Diversifying stakeholder communications
SK Bioscience	Minimizing environmental impact Addressing climate change	Enhancing product safety and quality Acquiring and nurturing talent Creating social value through business Expanding human rights management Expanding social contribution activities and community engagement	Securing future growth engines Upgrading compliance and ethical management Strengthening Board-centered management Internalizing ESG management

Our subsidiaries communicate transparently with their stakeholders by disclosing activities and performance of key ESG issues in each sustainability report. In addition, the subsidiaries report outcomes of each company’s ESG materiality factors to management and the Board of Directors to help inform decisions that reflect financial factors and ESG risks and opportunities.