Human Rights Due Diligence
Human Rights Due Diligence
SK D&D has established and systematically implements a human rights management system based on globally recognized human rights standards, including the Universal Declaration of Human Rights, the International Bill of Human Rights, the UN Guiding Principles on Business and Human Rights (UNGPs), the OECD Due Diligence Guidance, and the ILO Declaration on Fundamental Principles and Rights at Work.
The company proactively identifies and assesses potential human rights impacts across all aspects of its business activities—including employees, business partners, customers, and local communities. For any identified risks, SK D&D establishes and implements preventive and corrective measures, while regularly monitoring their effectiveness to ensure proper management.
In addition, SK D&D transparently discloses the results of its human rights due diligence and corresponding improvement actions to stakeholders, thereby strengthening trust and accountability. The company remains committed to continuously enhancing its human rights practices by preventing and mitigating risks through ongoing improvement efforts.
In 2024, SK D&D established a comprehensive six-step human rights due diligence process to further strengthen stakeholder engagement, assess the effectiveness of grievance mechanisms, and advance the overall substance and robustness of its human rights management practices.
Human Rights Due Diligence Process
| Step 1 | Step 2 | Step 3 | Step 4 | Step 5 | Step 6 |
|---|---|---|---|---|---|
| Identification of human rights impacts | Assessment of human rights impacts | Preparation of countermeasures | Monitoring | Communication and reporting | Evaluation of the effectiveness of grievance handling procedures |
Overview of Human Rights Impact (Risk) Assessment
SK D&D regularly conducts Human Rights Impact Assessments (HRIA) as a core element of its human rights due diligence process. These assessments are designed to identify actual or potential human rights risks arising from the company’s operations as well as those of its business partners. Identified risks are prioritized based on their severity and the breadth of their impact, and response plans are established to prevent and mitigate the most significant risks. Through these procedures, SK D&D actively pursues follow-up actions such as policy revisions and awareness-raising activities to effectively address human rights risks.
The HRIA covers both internal stakeholders—including employees at the headquarters and subsidiaries—and external stakeholders, such as workers of partner companies, local communities, and consumers. In particular, the assessment process gives special consideration to the rights of vulnerable groups, including persons with disabilities, non-regular workers, and women, while reflecting a broad range of human rights issues at the company-wide level.
In 2023, SK D&D conducted human rights impact assessments for its headquarters and subsidiaries. In 2024, the scope of assessment was expanded to include five partner companies operating within the subsidiary DDPS. These assessments are conducted on a biennial basis for the headquarters and subsidiaries, thereby strengthening systematic monitoring and enhancing the company’s capacity to manage human rights risks.
SK D&D is progressively expanding the scope of its human rights assessments. From 2024 to 2025, key business partners within the entire value chain are being incorporated, and from 2026 onward, the scope will further extend to cover new business models and additional stakeholder groups. Through these ongoing efforts, the company aims to advance its human rights risk management system and foster the internalization of a culture that respects human rights across all business activities.
Human Rights Management Mid-to-Long-Term Roadmap
Human Rights Impact (Risk) Assessment Process
Overview of the 2024 Human Rights Impact Assessment
| Period | Target | Assessment Methodology | ||
|---|---|---|---|---|
| Checklist | SAQ** | Survey/Document review | ||
| June 16 – July 4, 2024 | DDPS and DDPS in-house partners* |
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- *Conducted a Human Rights Impact Assessment (HRIA) on internal partner companies (FM companies) of DDPS, a key subsidiary of SK D&D and operator of the Episode brand.
- **Self-Assessment Questionnaire (SAQ)
- ***Workers at business sites, workers within the value chain, local community residents, and consumers
Human Rights Impact Assessment Results and Improvement Measures
The 2024 Human Rights Impact Assessment identified seven key human rights issues and eight additional related concerns within DDPS—a subsidiary of SK D&D—and its internal partner companies. In response, SK D&D and DDPS developed appropriate mitigation measures for each issue, accompanied by detailed action plans to ensure effective and practical implementation.
Each measure is designed to proactively prevent human rights violations and to enable prompt response in case of occurrence. Clear implementation levels and target completion timelines have been set, and the necessary infrastructure and organizational capabilities have been secured to facilitate a phased and systematic execution. To address any challenges that may arise during the implementation process, designated teams have been assigned to continuously monitor progress and apply improvements as needed.
SK D&D and DDPS are committed to faithfully implementing the identified improvement measures based on the assessment results. They will ensure ongoing monitoring and transparently disclose the progress to stakeholders. In addition, regular re-assessments will be conducted to promptly identify emerging human rights risks and to develop timely corrective actions, reinforcing the company’s commitment to respecting and promoting human rights throughout its operations.
2024 Human Rights Impact Assessment Results
| Key human rights issues (Impacts) | Related stakeholders | Corrective Actions |
|---|---|---|
| Management of Human Rights Policy within the Supply Chain | Workers for SK D&D and DDPS partner companies |
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| Management of Human Rights Risks within the Supply Chain |
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| Employment Security for Supply Chain Workers |
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| Working Hours and Rest Breaks for Supply Chain Workers |
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| Living Wages for Supply Chain Workers |
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| Health and Safety for Supply Chain Workers |
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| Privacy for Supply Chain Workers |
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Effectiveness Evaluation of the Grievance Mechanism
SK D&D operates a grievance mechanism that allows all stakeholders of the headquarters and subsidiaries to report cases of human rights violations. In 2024, the effectiveness of this grievance mechanism was evaluated based on the eight criteria outlined in Article 31 of the UN Guiding Principles on Business and Human Rights (UNGPs). Based on the evaluation results, improvement tasks were identified and are being implemented through the revision of relevant internal regulations and processes.
Human Rights Management System
Human Rights Policy
SK D&D recognizes the respect and protection of human rights as a core corporate responsibility. The company supports and complies with both domestic and international human rights standards and principles, including the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, and the Core Conventions of the International Labour Organization (ILO).
To protect and promote the human rights of various stakeholders—including employees, customers, local communities, the environment, and shareholders—SK D&D revised its Human Rights Management Declaration in 2024. The updated declaration is transparently disclosed both internally and externally, including through the company’s official website. It applies to all members of SK D&D and its domestic and international affiliates. Business partners are also encouraged to understand and uphold the company’s principles on respecting human rights.
To systematically manage and prevent human rights risks, SK D&D has established and operates a Human Rights Due Diligence Process, which is regularly implemented. This process is explicitly outlined in the 2025 revised Human Rights Management Declaration. The declaration is developed and amended through consultation with relevant departments, reporting to senior management, and final approval by the Chief Executive Officer (CEO).
Human Rights Management Governance
SK D&D has established and operates a human rights governance structure based on a reporting system to the Board of Directors to ensure the systematic implementation of human rights management. The operational framework consists of the ESG Part and the People & Culture (P&C) Part, with collaboration from the Internal Control Part when necessary.
The ESG Part is responsible for establishing the company-wide human rights management framework, regularly reviewing and updating the human rights policy, conducting human rights impact assessments across the entire value chain, and identifying human rights risks and corresponding improvement tasks.
The P&C Part implements improvement measures based on the results of human rights impact assessments, provides feedback during policy revisions, and conducts human rights training for employees, including programs on sexual harassment prevention and workplace bullying. Additionally, in collaboration with the Internal Control Part under the SK Autonomous Responsible Management System, it enforces grievance procedures to protect victims and provide remedies.
The implementation plans and outcomes of human rights management activities from each operational unit are reported to the ESG Committee. The ESG Committee monitors key human rights risks, evaluates the implementation of improvement measures, and oversees the overall performance of human rights management across the organization.
Human Rights Management Structure