Stakeholder Involvement

SK gas pursuits stakeholder’s happiness.

As a result of materiality assessment, ‘Safety management’, ‘Response to climate change’, ‘Enhancement of business portfolio’, ‘ESG risk management’, and ‘Greenhouse gas’ are evaluated as material topics related to SK gas’ sustainable management in 2020. The result showed that the interest in corporate social responsibility is persistent and particularly ESG management has become an integral part of key management issues.

17 issues selected through the materiality evaluation were reported to the management and the BOD, and then reflected when we established our ESG management mission and strategy along with the analysis results of the ESG risks and opportunities of SWAN 2.0 mid-term business strategy. SK gas’ business model innovation and social responsibility activities in response to 17 issues according to the result of this assessment are reported in ‘Our Growth Strategy for the Future’, ‘2020 ESG Story Book’, and ‘ESG Fact Book’.

STEP 1. Identifying issues and forming an issue pool

For the purpose of comprehensive response to internal and external issues regarding sustainable management, we have formulated a GRI issue pool to take action against requirements for external information disclosure and evaluations as well as an issue pool of our own for SK gas to cope with risks and to set up the future directions. In line with Global Reporting Initiative (GRI), a global guideline for sustainable reports, we removed overlapped issues and selected 17 final issues after analyzing sustainable management standards in and outside Korea.

Analyzed subjects of sustainable management standards
GRI Standards, ISO 26000, MSCI, DJSI, CDP, TCFD, KCGS, KRX, UN SDGs, SASB 등

Analyzed subjects of SK gas’ own issue pool
Data (internal materials, business report, management strategy system, investment report, etc.) and an interview with SV TF (major issues and status of SV, SV risks)

STEP 2. Analyzing impact

We analyzed ‘influence on stakeholders’ and ‘business impact’ on SK gas with those 17 issues selected in step 1. For reviewing stakeholder impact, survey was conducted targeting our employees and external interest parties, and analysis by the SV management unit and external experts was also implemented for looking into business impact.

Breakdown of impact on stakeholders
We surveyed online internal and external interest parties to receive opinions and analyze interest levels of sustainable management topics.
· Survey period: Feb. 22, 2021-Feb. 25, 2021
· Survey target: Employees, customers, partner companies, government and public institutions, industrial circles and academia, local communities, shareholders and investors, general public, and others
· Questionnaire: Materiality of 17 sustainable management issues

Analysis of impact on business
We comprehensively reviewed the connectivity with our management strategies and financial impact in order for analyzing business impact on each issue.
· Survey period: Feb. 24, 2021-Feb. 25, 2021
· Survey target: SK gas SV Management Unit Sustainability Management TFT, ESG expert group
· Questionnaire: Connection to management strategies (from the perspective of strategy, long-term goal, management rewards) and financial impact (impact level of cost, profit, and risks)

STEP 3. Prioritizing issues

We prioritize items according to the combined results of our businesses’ strategic significance and stakeholders’ evaluation, followed by reliable verification from a third-party institute.

Prioritization
Priority of 17 issues were decided following the overall evaluation of business impact and stakeholder impact.

Third-party audit
Reporting contents were verified by the third-party institute (Korea Management Registrar), thereby securing credibility and transparency.