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.

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”

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.

Proceeding with reported complaints

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.