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Society

We make social contributions in various fields including social enterprises,
education, regional co-growth and the environment.

“ SK considers maximizing the happiness of its stakeholders as its business value, which implies that all business activities have the ultimate aim of happiness. ”

Human Rights Commitment

Compliance with Human Rights Due Diligence

SK innovation (“SKI”) exercises its best care so that there may be no human rights violations in its conduct of business or business relations. To fulfill its social responsibilities and duties as a corporate citizen, SKI joined UNGC (United Nations Global Compact) in October 2007, a global sustainable management initiative, and proclaims its support of the 10 principles in the four sectors of human rights, labor, the environment, and anti-corruption. Thus, SKI endeavors to formulate talent recruitment and training strategies, safety, health and environment (SHE) policies, and ethics norms and thereby strictly comply with the principle of human rights protection in its business activities.

Human Rights Policy and Applicability Thereof

  • 1
    First, SKI shall respect all its employees’ dignity and value as humans in order to achieve sustainable happiness.
  • 2
    Second, SKI, shall do its best to maintain a good work environment on the basis of good morale, so that all its employees can pursue happiness.
  • 3
    Third, SKI shall support and respect the human rights protection and labor standards of labor-related international organizations such as the UN and ILO, and shall not discriminate on the basis of any grounds including gender, race, nationality, religion, or age.
  • 4
    Fourth, SKI shall comply with its human rights policies and the labor laws of the relevant country or region where it has work sites, and affirm that this policy is the basic duty of all suppliers and business partners having business relations with SKI.
  • 5
    Fifth, SKI shall designates a department in charge of human rights management and SK innovation regularly conducts human rights education for all stakeholders

Detailed Guidelines

  • Respect for
    human rights
    SKI shall respect all its employees as humans, and endeavor not to make any compromises on human rights.
  • Prohibition of
    forced labor
    SKI shall not force labor against an employee’s free will through mental or physical oppression including slavery and human trafficking. It shall not demand the transfer of government-issued IDs, passports, or labor permits as condition for employment.
  • Prohibition of
    child labor
    SKI shall not hire children or youths under 15 years of age.
  • Child
    labor
    Regarding anyone less than 18 years of age, SKI shall hire him/her in compliance with labor laws, and shall not put him/her to dangerous, hazardous work.
  • Working
    hours
    Regular working hours and overtime work shall comply with the standards prescribed by the labor laws of the relevant country or region.
  • Wages SKI shall set its employees’ wages at a level not lower than the minimum level set by the labor laws of the respective country or region.
  • Non-discrimination SKI shall not discriminate when hiring on any basis including gender, race, nationality, ethnicity, or religion, and shall not discriminate in conditions of work such as wages and promotions on the basis of the same.
  • Freedom of
    association
    SKI shall guarantee freedom of association and the right to collective bargaining under the labor laws of the relevant country or region, and shall not impose unfavorable treatment on the basis of labor union membership, activities, or organization.
  • Workplace safety
    and environment
    SKI shall endeavor to create a pleasant work environment and prevent safety accidents by complying with international standards, applicable laws, and internal regulations on the work environment.
  • Due diligence
    process for
    human rights
    protection
    SKI, for effective human rights protection, shall strive for risk prevention and human rights protection by diligently performing its human rights due diligence process.
  • Internal or external evaluation & audit → start → Result (corrections & improvement required) → Check corrections and improvement required → Request relevant department to make corrections → Relevant department’s planning for corrections, & F/up → Report completion of correctionsor plan for improvement. Internal or external evaluation & audit → Feedback for measures taken → Relevant department’s planning for corrections, & F/up.

Human Rights due Diligence Process

Human Rights Due Diligence is defined as the due diligence that a company must perform in order to identify and prevent potential adverse effects related to governance, workers, human rights, environment and bribery in operating a business. SK Innovation periodically implements the human rights due diligence process provided by the international guidelines for effective protection of human rights of employees and business partners and sincerely reports the results on this to stakeholders. Human Rights due diligence is carried out in the following order: 1) human rights impact assessment, 2) identification of impact, 3) establishment of improvement goal, 4) proceeding of processing complaints 5) monitoring, 6) external reporting and disclosure and through these, we continuously manage the human rights impact that can occur at each business site.

Due diligence process for human rights protection/

 *The corresponding human right due diligence is planned and implemented based on the opinions of officers, employees and external experts.
 *The corresponding human rights due diligence is for all officers and employees of SK Innovation and members of the key partner companies.
 *Actively protect to ensure that no disadvantage occurs to anyone through the corresponding human right due diligence

1. Implementing human rights impact assessment

SK Innovation is conducting a company-wide human rights due diligence based on the basic human rights declaration. It is the principle to form a self-assessment checklist for human rights impacts by referring to internal management indicators such as working environment, working conditions, manpower management and systems, and global guidelines, and conduct online survey once per year to all members. Our company select key partner companies in accordance with our company’s purchasing guidelines, and conduct human rights due diligence to the partner companies and recommend all partner companies to carry out human rights due diligence on their own. The corresponding inspection checklist shall be prepared in Korean and English by considering diversity, and if there is a request from members, the company provides it in the corresponding language.


Employees table
Category 1) Regular evaluation 2) Temporary evaluation
Time Every year(recommended) Occurrence of major risk factors and change in external environment
In charge Sustainability Planning Management & Human Resources Strategy Team
Scope of Due Diligence SK innovation & all of its affiliates, SK innovation’s Top-Tier Supply Chainm
Self- assessment Conduct online self-diagnosis for all members based on the check list The checklist consists of 20 to 30 items and it is necessary to additionally add and develop periodically
On-site check Conduct on-site inspection related to major risk factors (one-on-one meetings with employees) Conduct on-site due diligence on site infrastructure, sampling investigation of major partners

2. Identification of Impact

SK Innovation selects and manages potential human rights risk based on the human rights impact assessment conducted. SK Innovation identifies human rights risks that are directly or indirectly related to our business activities in accordance with the process, determine the relative importance of risks, control the assessed risks by implementing physical control and regularly(1 to 2 times per year) checks on the status of standard compliance. Potential human rights issues derived from the major international guidelines include: 1) working conditions; 2) discrimination in doing work; 3) discrimination in employment; 4) recognition of freedom of association and collective bargaining rights; 5) prohibition of forced labor;5) guarantee of occupational safety 7) Supply network impact, and 8) environmental impact.


1)Risk classification criteria

“Frequency of risk occurrence” x “risk level assessment according to risk severity level”

Due diligence process for human rights protection/

Risk / (Category) / (high) / (medium) / (low)
Risk severity/ Grave risk / Significant risk / Minimal risk
Frequency of occurrence of risk / frequent occurrence, 10 times or more per year /more than usual occurrence, less than 6 times per year Occurs insignificantly, less than twice a year

*The frequency of occurrence is difficult to quantify, so opinions from the risk evaluator and the whole department are collected and the grade is selected


2) Risk management standard

High (Terminate or Transfer): Establish emergency measures and taking corrective actions
Medium (Terminate, Transfer or Treat): Establishment of corrective action plan and managerial measures and countermeasures Low (Treat or Tolerate): Monitor to ensure the management state is maintained


*Conduct risk management according to 4T below depending on the risk severity
① Terminate (Remove the risk factor)
② Transfer (Substitution and transfer of risk factor)
③ Treat (Risk factor management)
④ Tolerate (Risk factor observation, and education)

3. Establish improvement plan (Corrective action plan)

SK Innovation categorizes the result of human rights due diligence by issue. In addition, SK Innovation has established improvement goals depending on issues, and systematically carried out implementation plans for achieving the goals, and detailed practice plan and conducted periodic reviews.


Due diligence process for human rights protection/

1) Linking improvement goals with KPIs when risk is found
2) Operating improvement TFT when needed

Proceeding with reported complaints
Processing complaint Flow-(Identification procedures)

Due diligence process for human rights protection/

Review the corrective action and provide feedback on the corrective action status (completed/insufficient/delayed).

4. Grievance channels

SK Innovation operates grievance channels such as hotline, online, and offline according to the characteristics of each business site based on the global standard grievance procedure. In addition, SK Innovation traces the complaint type, process progress status, and processing results, and has defined the processing period compliance rate and the satisfaction rate of officers and employees by channel in order to manage them.


Employees table
Stakeholder Key communication channels
Members SK Ethics Management Report Website, inter-company Intranet, Harmonia
Customers SK Ethics Management Report Website, Customer happiness center (call center), SK Innovation website
Local Community SK Ethics Management Report Website, Various local group meetings, local residents autonomous committees around the business site
Partner companies SK Ethics Management Report Website, Regular council of partner companies, meeting of CEOs of partner companies

5. Monitoring Results

SK Innovation is actively monitoring human rights risks through corrective actions based on the improvement goals. All human rights risks and corrective actions are regularly reported to management and relevant departments, and SK Innovation is conducting training for officers and employees and establishing countermeasures to prevent such risks from recurring.

6. Disclosing stakeholders

SK Innovation discloses the relevant human rights policies and human rights due diligence results transparently through the Sustainability Report and the SK Innovation website.

Result of Audit

SK innovation Human Right Due Diligence Report