SK D&D conducts an annual materiality assessment to identify key issues in corporate sustainability management and establish ESG strategies that align with the needs of our internal and external stakeholders. In 2024, SK Discovery, a group company, conducted a consolidated basis assessment that included its main member companies. SK D&D also participated in the assessment to systematically evaluate and review its sustainability issues.
The assessment methodology was based on the dual materiality concept of the European Sustainability Reporting Standards (ESRS) and the Materiality Assessment Implementation Guidance, a practice guideline from the European Financial Reporting Advisory Group (EFRAG).
Double Materiality Assessment Results
The double materiality assessment is a process for identifying a company's actual and potential impacts, risks, and opportunities related to sustainability issues, to determine material topics. ESRS requires that if the impacts, risks, and opportunities (IROs) are material in terms of impact materiality or financial materiality, the relevant information should be fully disclosed through a materiality assessment that considers the entire value chain. To meet the requirements of the ESRS, KS D&D proceeded with a four-step assessment process: (1) understanding the sustainability context, (2) identifying sustainability issues, (3) assessing impacts, risks, and opportunities, and (4) selecting and reporting material issues. First, we analyzed our organizational boundaries and value chain to set the scope of the materiality assessment, and then, based on the Topic List provided by ESRS, we collected material issues for each of our business sectors, and then derived a pool of issues by considering industry-related metrics.