Materiality Assessment
Implementation of Double Materiality Assessment
To identify key sustainability issues, KEPCO annually conducts a materiality assessment to evaluate significant issues and ensure that they are effectively manageed and reported.
Financial Impact
Outside-in Perspective
Examines the positive and negative effects of external sustainability factors on KEPCO's financial performance and overall management.
Environmental
& Social Impact
Inside-out Perspective
Assesses the actual and potential effects of KEPCO’s business activities on the environment and society, considering both positive and negative impacts.
Double Materiality Assessment Process
Evaluates both the financial impact on the organization and the social and environmental impacts beyond the organization.
Through this process, 30 key issues were identified as significantly affecting KEPCO's ESG management. After a validity review, 14 material issues were finally selected as top priority issues.
Composition of Issue Pool
Based on international standards, industry issues, benchmarking, media analysis, and internal document reviews, KEPCO identified 30 key issues (Environmental: 7 issues; Social: 15 issues; Governance: 8 issues)
Double Materiality Anlaysis
Analyzed related news articles and benchmarked six companies in the electric and other utilities (three domestic and three international). Reviewed material issues considering the indices suggested by international standards and conducted an online stakeholder survey to gather ESG-related opinions. Selected the key material issues that significantly impact the ESG management based on the findings from the survey.
Key Issue Prioritization
Prioritized issues based on social/environmental impact and financial relevance.
The final 14 material issues were selected in October 2024 through a stakeholder survey, expert verification, and alignment with KEPCO's management strategy.
Results of Double Materiality Assessment
Financial Impact
Environmental and Social Impact
| No. | ESG Issue | Global Initiative | Level of Stakeholder Impact | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| GRI | UNGC | IFRS | Employees | Customers | Local Communities | Group Companies | Government and Related Agencies | Press and Media | ||
| 3 |
R&D on new energy technologies and clean
energy
|
● | ● | ● | ● | ◐ | ◐ | ◐ | ● | ○ |
| 7 |
Efforts to address climate change
|
● | ● | ● | ◐ | ◐ | ● | ◐ | ● | ◐ |
| 11 |
Decarbonization efforts of power generation,
transmission and sales
|
● | ● | ● | ● | ◐ | ◐ | ◐ | ◐ | ◐ |
| 12 |
Efforts to reduce pollutant emissions
|
● | ● | ● | ◐ | ○ | ● | ○ | ◐ | ◐ |
|
Importance
Relevance
●
◐
○
|
||||||||||
| No. | ESG Issue | Global Initiative | Level of Stakeholder Impact | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| GRI | UNGC | IFRS | Employees | Customers | Local Communities | Group Companies | Government and Related Agencies | Press and Media | ||
| 4 |
ESG management and support of supply chains
|
● | ● | ○ | ◐ | ○ | ◐ | ◐ | ||
| 6 |
Management of workplace safety and employee
health
|
● | ● | ● | ○ | ◐ | ● | ◐ | ◐ | |
| 10 |
Protection of health and safety
|
● | ● | ● | ○ | ○ | ◐ | ◐ | ◐ | |
| 13 |
Enhancement of employee capacity
|
● | ● | ◐ | ○ | ● | ○ | ◐ | ◐ | |
| 14 |
Diversification of electricity rates structures
|
● | ● | ● | ● | ○ | ◐ | ◐ | ◐ | |
|
Importance
Relevance
●
◐
○
|
||||||||||
| No. | ESG Issue | Global Initiative | Level of Stakeholder Impact | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| GRI | UNGC | IFRS | Employees | Customers | Local Communities | Group Companies | Government and Related Agencies | Press and Media | ||
| 2 |
Operation of transparent governance and
enhancement of expertise
|
● | ● | ◐ | ○ | ○ | ○ | ◐ | ○ | |
| 5 |
Promotion of ethical and anti-corruption
management activities
|
● | ● | ● | ○ | ○ | ● | ◐ | ◐ | |
| 9 |
Expansion of stakeholder communication and
engagement
|
● | ● | ◐ | ● | ● | ● | ◐ | ● | |
|
Importance
Relevance
●
◐
○
|
||||||||||
| No. | ESG Issue | Global Initiative | Level of Stakeholder Impact | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| GRI | UNGC | IFRS | Employees | Customers | Local Communities | Group Companies | Government and Related Agencies | Press and Media | ||
| 1 |
Creation of sustainable economic value
|
● | ● | ● | ○ | ◐ | ● | ◐ | ◐ | |
| 8 |
Provision of stable power supply
|
● | ● | ● | ● | ○ | ◐ | ◐ | ◐ | |
| 15 |
Enhancement of response capabilities to energy market fluctuations
|
● | ● | ◐ | ○ | ● | ● | ● | ● | |
|
Importance
Relevance
●
◐
○
|
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