Double Materiality Assessment

Overview of Double Materiality Assessment

SK ecoplant conducts a double materiality assessment annually in accordance with the GRI Standards’ principles for selecting reporting topics and evaluation methods. This is done to identify key issues from the perspective of sustainability disclosure and to incorporate them into the company’s ESG strategy as well as decision-making processes. A double materiality assessment is a process of deriving priority topics by analyzing the impact, risks, and opportunities associated with sustainability management issues, evaluating both impact and financial materiality. The impact materiality assessment analyzes the actual and potential environmental and social impacts of the company’s activities across the entire value chain, while the financial materiality assessment analyzes how risks and opportunities arising from sustainability issues affect the company’s value creation, cash flow, and access to capital.

Definition of the Double Materiality Assessment

Double Materiality Assessment Process

Double Materiality Assessment Results

Based on the double materiality assessment and analysis, three issues—Climate Change Response, Occupational Safety and Health at Worksites, and Sustainable Supply Chain—were identified as high-materiality topics in terms of their environmental, social, and financial impacts. Information regarding the management approach, goals, and performance related to these material topics is disclosed in detail in the “Material Topic” section of this report. Furthermore, SK ecoplant annually reports the results of the double materiality assessment to the Board of Directors and the Strategy and ESG Committee, while also incorporating them into the formulation of management strategies and decision-making.

2025 Double Materiality Assessment Results

Material Topics for 2025

Category		Impact		Scope of Impact			Scope of Key Stakeholders	GRI
Category		Environmental and Social	Financial	Sites	Supply Chain	Products & Services	Scope of Key Stakeholders	GRI
1	Climate Change Response						Customers, Government, Biz. Partners, Employees, Local Communities	302 305
2	Occupational Safety and Health at Worksites						Employees, Biz. Partners	403
3	Sustainable Supply Chain						Customers, Biz. Partners	308 414

Status and Plans for Addressing Material Topics

For each material topic, SK ecoplant establishes and implements systematic response strategies based on analysis results of positive and negative impacts, as well as risks and opportunities. In addition, the company continuously monitors implementation performance in relation to these strategies and manages them through medium- to long-term plans. The current status and plans for each material topic are disclosed in detail in the “Material Topic” section, which covers the key elements of governance, strategy, risk management, metrics, and targets, based on the ISSB’s (International Sustainability Standards Board) “IFRS General Requirements for Disclosure of Sustainability-related Financial Information” and “IFRS S2 Climate-Related Disclosures.”

Status and Plans for Material Topics

Material Topics	Response Strategy	Implementation Progress (2025)	Mid- to Long-Term Plans
Climate Change Response	Achieving Net Zero by 2040 Net-Zero Initiatives : Streamlining on-site operations, expanding the transition to eco-friendly vehicles and renewable energy, implementation of zero-energy buildings, etc. Supply Chain Engagement : Transition to low-carbon materials, support for subsidiaries and Biz. Partners, etc. Development of sustainable products and services	Greenhouse gas emissions intensity : Achieved 2.6 tCO₂eq per KRW 1 billion Energy intensity : Achieved 51.6 GJ per KRW 1 billion	42% reduction in Scope 1 & 2 by 2030 (compared to the base year 2021) 25% reduction in Scope 3 by 2030 (compared to the base year 2021)
Occupational Safety and Health at Worksites	Achieve the “Zero Serious Accidents” Goal Establishment of an autonomous safety management system Tailored support for on-site workers, including employees and Biz. Partners Strengthening safety management status inspection cross-checks	Fatality rate per 10,000 persons: 0% 0 serious accidents and fatalities Occupational Safety and Health Law Compliance Inspection Results: Corrective actions completed on 100% of areas requiring improvement	Achieve an LTIR of 0.414 by 2030 Achieve a fatality rate per 10,000 persons of 0.290 by 2030 Achieve zero serious accidents and zero fatalities by 2030
Sustainable Supply Chain	Sustainable Supply Chain Management Stable supply and demand management and expansion of eco-friendly product procurement Supply chain ESG risk management through ESG evaluation and Biz. Partner improvement Enhancing supply chain competitiveness by supporting shared growth and nurturing Biz. Partners	Purchased KRW 158.6 billion worth of eco-friendly products Conducted ESG evaluations of 121 Biz. Partners (80% of core Biz. Partners) Completed 100% of corrective actions on 20 Biz. Partners under priority management Achieved designation as an Honorary Excellent Company for 9 consecutive years in the Shared Growth Index evaluation	Expansion of the scope of the supply chain ESG evaluation (Targets based on core Biz. Partners: 83% in 2026, 84% in 2027)

Material Topics

Response Strategy

Implementation Progress (2025)

Mid- to Long-Term Plans

Climate Change
Response

Achieving Net Zero by 2040

Net-Zero Initiatives : Streamlining on-site operations, expanding the transition to eco-friendly vehicles and renewable energy, implementation of zero-energy buildings, etc.
Supply Chain Engagement
: Transition to low-carbon
materials, support for subsidiaries and Biz. Partners, etc.
Development of sustainable
products and services

Greenhouse gas emissions intensity
: Achieved 2.6 tCO₂eq per KRW 1 billion
Energy intensity
: Achieved 51.6 GJ per KRW 1 billion

42% reduction in Scope 1 & 2 by 2030 (compared
to the base year 2021)
25% reduction in Scope 3 by 2030 (compared to the base year 2021)

Occupational
Safety and Health at Worksites

Achieve the “Zero Serious Accidents” Goal

Establishment of an autonomous safety management system
Tailored support for on-site
workers, including employees and Biz. Partners
Strengthening safety management status inspection cross-checks

Fatality rate per 10,000 persons: 0%
0 serious accidents and fatalities
Occupational Safety and
Health Law Compliance
Inspection Results: Corrective actions completed on 100% of areas requiring
improvement

Achieve an LTIR of 0.414 by 2030
Achieve a fatality rate
per 10,000 persons of
0.290 by 2030
Achieve zero serious
accidents and zero
fatalities by 2030

Sustainable
Supply Chain

Sustainable Supply Chain Management

Stable supply and demand
management and expansion of
eco-friendly product procurement
Supply chain ESG risk management through ESG evaluation and Biz. Partner improvement
Enhancing supply chain
competitiveness by supporting
shared growth and nurturing Biz. Partners

Purchased KRW 158.6 billion worth of eco-friendly products
Conducted ESG evaluations of 121 Biz. Partners (80% of core Biz. Partners)
Completed 100% of corrective actions on 20 Biz. Partners under priority management
Achieved designation as an Honorary Excellent Company for 9 consecutive years in the Shared Growth Index evaluation

Expansion of the scope of the supply chain ESG evaluation (Targets based on core Biz. Partners: 83% in 2026, 84% in 2027)

Stakeholder Communication

SK ecoplant defines its key stakeholders—in accordance with the SK Group’s SKMS (SK Management System) management system—as shareholders and investors, employees, customers, Biz. Partners, and local communities, and strives to maximize their collective well-being. To this end, the company operates tailored communication channels for each stakeholder group and has established ESG management as a key communication theme, covering areas such as climate change response, occupational safety and health, and ethical management. Furthermore, the diverse needs of stakeholders identified during business and operational processes are incorporated into sustainable management activities. Since 2023, SK ecoplant has published a standalone Sustainable Management Report on a dedicated webpage to effectively disclose its various ESG management activities, goals, and achievements, thereby enhancing stakeholders’ access to information.

Current Status and Plans for Stakeholder Communication Channels

Category		Communication Channels	Goals and Strategies
Category		Communication Channels	Short-Term	Long-Term
Shareholders and Investors	Analyst– Investor Meetings	Effective communication and dissemination of the company’s financial story Establishing a reputation as an ESG leader, securing future demand for ESG investments	Regular communication with analysts Conducting domestic and international IR for potential investors	Analyst Report publication support Conducting IR Events for key business units
Shareholders and Investors	General Meeting of Shareholders	Strengthening shareholder rights through company- shareholder communication	Providing information on management status through the General Meeting of Shareholders	Improving shareholder friendliness through events
Employees	Internal Portal	Enhancing understanding through timely sharing of company-wide key trend and business information	Regularly publishing content for the enhancement of business understanding and activation of communication	Utilizing channel use experience analysis to identify content dissemination strategies and channel improvements
	CEO Lounge within the Internal Portal	Enhancing business understanding and trust through communication with the CEO	Immediate Delivery of CEO messages Sharing the CEO’s management philosophy and activities	Expanding communication channels between the CEO and employees
	Culture Survey (Engagement Survey)	Identifying employee needs to improve company culture	Policy, system improvement and organizational development based on employee VoC	Developing and implementing innovation in work practices and culture
	Management Development Council	Promoting advancement through mutual understanding and cooperation between management and employees	Actively implement employee feedback on policy and organizational culture through regular Empathy Meetings	Strengthening council representativeness by operating an employee- centered council and expanding continuous participation and communication
Customer	Website and Social Media	Conveying sustainable management strategies and key business portfolios’ values and performance	Official channels that present company information, such as vision, goals, and business direction, in the form of optimized content	Reinforcing continuous company brand value growth and communication
Customer	NEWSROOM	As a contents platform for ESG management and core businesses, provide differentiated information to external stakeholders such as media, investors, industry professionals	Creating and distributing content on ESG management, core business information, and knowledge Providing additional information and contents on company PR as well as press releases	Bolstering NEWSROOM’s role as a dedicated content platform for ESG management and core businesses
Biz. Partner	Eco Partners Meeting	Fostering closer relationships and mutual understanding through Annual General Meetings, Biz. Partner factory visits, Green Meetings, roundtables, and Shared Growth Day	Improving the methods and scope of participants for regular events	Strengthening the consultative body’s role as a communication channel Developing programs tailored to Biz. Partners’ needs
Biz. Partner	Eco ESG Bridge (Newsletter)	Building consensus on ESG activities by sharing ESG concepts, trends, and best practices	Newsletter promotions for Biz. Partners Providing information regarding shared growth programs	Quantitative and qualitative enhancement of content
Local Communities	Social Contribution Programs	Expanding positive impact for future generations and local communities	Conducting a multitude of social contribution activities, such as community environmental cleanup and improving living conditions	Establishing a mid- to long-term roadmap for social contribution and operation processes, in addition to managing performance