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Focus Issues

SK bioscience conducted a Double Materiality Assessment to evaluate the impact of corporate sustainability issues on society and the environment. Additionally, the assessment aimed to evaluate the impact of external risks on the business and financial environments in which the company operates. The assessment involved a comprehensive analysis of international standards and evaluation indicators specific to the bio-industry. It also included benchmarking of companies in the same line of business, media research, and stakeholder surveys, deriving a pool of 24 issues. By analyzing the materiality and impact of these issues from both a financial perspective and a social and environmental perspective, 11 material issues were selected as priorities.

Double Materiality Assessment Process

  • Step1. Composition of a Pool of Issues

    • Composing a pool of 24 issues specific to SK bioscience based on GRI Standards 2021, global initiatives, evaluation indicators, and analysis of companies in the same line of business and global leading companies

  • Step2. Assessment & Prioritization

    Level of Social and Environmental Impact
    • Benchmarking with companies in the same line of business and golbal leading companies
    • Analyzing media related to economic, environmental, social performance, and ESG issues
    • Survey and analysis of internal and external stakeholders such as employees and external experts
    Level of Financial Impact
    • Analysis and reflection of international standard indicators such as MSCI, SASB, etc.
    • Analysis of corporate ESG strategy
    • Survey and analysis of employees in the financial field

  • Step3. Selection of Material Issues

    • Quantifying the social, environmental, and financial impact by issue. And deriving 11 issues after conducting a comprehensive assessment
    • Internal review of the 11 issues and confirmation of final material issues
    • Environment: 2 / Social: 5 / Governance: 2 / Business: 2

Double Materiality Assessment Results

이중 중요성 평가 결과표
이중중요성 평가 순위와 이슈명
Rank Area Issue
1 S Talent Acquisition
2 B Securing Mid-to-long term Growth Engine
3 S Ensuring Drug Quality and Safety
4 G Implementing Business Ethics and Compliance
5 B Fair Pricing/Enhancing Access to Vaccines
6 E Responding to Climate Change
7 S Practicing Human Rights Management
8 S Internalizing ESG Management
9 E Hazardous Chemical Waste Management
10 S Building a Sustainable Supply Chain
11 G Transparent/Responsible Management centered on the Board
12 E Minimizing Environmental Impact through SHE Management
13 G Voluntary Compliance with Fair Trade Laws and Regulations
14 S Promoting Workplace Safety & Health and Employee Health
15 S Information Security Management
16 S Expanding Community Participation
17 E Establishing a Circular Economy System
18 G Company-wide Integrated Risk Management
19 G Strengthening Stakeholder Communication and Disclosure
20 G Expanding ESG Management Activities
21 B Expanding Business-related Social Value (SV) Creation
22 B Transparent Tax Management and Payment
23 G Protecting Shareholder Rights
24 S Implementing Customer-centered Management

Material Issue Management

인재 확보 및 전문가 육성, 중장기 성장동력 확보, 의약 품질 및 안전성 보장, 윤리/준법 경영 이행, 공정한 가격 책정/백신 접근성 강화 의 관리체계, 전략 및 리스크관리, 활동 및 성과 표
Material Issue Governance Strategy & Risk Management Activity & Performance
Talent Acquisition
  • Operating HR systems that help secure global bio experts and grow employee capabilities
  • Operating a global recruitment program to secure talent with global competencies and core experience
  • Fostering next-generation talent through education/on-site visit support as part of the Global Training Hub for Biomanufacturing(GTH-B)
  • Encouraging employees to set their own goals by conducting KPI-based performance evaluations
  • Improving work performance and strengthening employee motivation by establishing a regular performance management system
  • Fostering bio talent through the Park Man-Hoon Scholarship
  • Providing vaccine manufacturing process training to 26 trainees of GTH-B
  • Establishing the Park Man-Hoon Award with the International Vaccine Institute (IVI) (awarded once in 2022 and twice in 2023)
Securing Mid-tolong term Growth Engine
  • Operating a dedicated division for innovative R&D of vaccines and biopharmaceuticals and improving vaccine manufacturing technology
  • Establishing SKBS 3.0 strategy to respond to the endemic phase of COVID-19 and the next pandemic, expanding new bio businesses such as CGT, and building global partnerships as future growth engines
  • Increasing investment in R&D and production infrastructure, and expanding and strengthening vaccine portfolio through input of human resources
  • Expanded the vaccine pipeline to include 14 vaccines, including next-gen pneumococcal and RSV vaccines
  • Supporting about 200 billion won for R&D projects from CEPI, BMGF, etc.
  • C(D)MO contracts with AstraZeneca/Novavax for producing their Covid-19 vaccines
Ensuring Drug Quality and Safety
  • Acquisition of K-GMP and EU-GMP certifications (drug manufacturing & quality control standards) to ensure the quality of pharmaceuticals
  • Operating a GMP-qualified quality assurance system
  • Operating the quality control process to ensure quality across the entire value chain
  • Protecting the safety and rights of clinical trial participants by operating Data Safety Monitoring Boards(DSMBs)
  • Verifying the reliability, effectiveness, etc. of clinical studies and complying with ethical principles and domestic and international regulations by organizing independent clinical audits
  • Ensuring quality with K-GMP and EU-GMP certification
  • Operating a Quality Management System(QMS) and establishing a QMS policy
  • Conducting regular training to strengthen GMP capabilities
  • Conducting 64 quality inspections for clients, suppliers, and health authorities
Implementing Business Ethics and Compliance
  • Operating Compliance Team(Ethics Management Team)
  • Chief Compliance Officer of the CP Team overseeing the entire process
  • Taking disciplinary action for irrational and unfair behaviors within the company through the Ethics Reporting System
  • Linking with the voluntary compliance program for fair trade to manage compliance risks
  • Encouraging voluntary compliance of employees by operating a Compliance Officer System
  • Enhancing transparency in corporate management through an Internal Accounting Control System(IACS) in accordance with the External Audit Act
  • Completing 99% of employee’s training for practicing the Code of Ethics
  • 100% of ethics-related reports processed
  • Revision of the Practice Guidelines for the Code of Ethics
  • 0 compliance-related legal violations
Fair Pricing/ Enhancing Access to Vaccines
  • Operating ESG team to plan social philanthropic programs for medical support
  • Establishment of pricing and marketing strategies by the Office of Marketing & Sales
  • Reducing price barriers for consumers through fair pricing of vaccines and pharmaceuticals
  • Expanding industry-related corporate philanthropic activities for medically underserved populations
  • Analyzing global status to establish fair pricing policies
  • Planning corporate philanthropic activities to strengthen access to healthcare
Responding to Climate Change
  • ESG committee and CEO-led council to make decisions on climate change response strategies and activities
  • Establish a mid- to long-term climate change roadmap in accordance with SBTi
  • Identification and impact assessment of potential climate change risks in consideration of timeframe(short/medium/long term), financial impact, and materiality
  • Disclosure of strategies and activities related to climate change response through publication of TCFD report
  • Calculating and managing Scope 3 GHG emissions
Practicing Human Rights Management
  • Promoting effective human rights management through the operation of the Human Rights Management Committee and the Division in charge of human rights management
  • Minimizing the risk of human rights violations through the grievance process such as online human rights violation grievance channels
  • Conducting human rights impact assessments to identify actual and potential human rights issues and derive countermeasures/improvement tasks by issue
  • Revising Human Rights Management Declaration
  • Conducting surveys for human rights impact assessment for 244 employees at the headquarters and Andong L HOUSE
  • 100% of employees completing sexual harassment prevention and disability awareness training
Internalizing ESG Management
  • Establishing an ESG management implementation structure such as the ESG Committee under the Board and the ESG working-level council
  • Setting mid-to-long-term directions and goals for ESG management
  • Aligning business strategies to create new ESG opportunities and implementing company-wide ESG management through non-financial risk management
  • Creating KRW 172.1 billion in Social Value(SV) through SK DBL
  • Achieving 100% attendance rate of ESG Committee
Hazardous Chemical Waste Management
  • Establishing a chemical inventory to systematically manage hazardous chemicals
  • Conducting preliminary hazard reviews before introducing new chemicals
  • Implementing computerized management of Material Safety Data Sheets(MSDS) for new chemicals by applying the SHE IT system
  • Developing & implementing a plan to conduct a risk assessment of chemicals handled at sites
  • Conducting training on chemical MSDS
Building a Sustainable Supply Chain
  • Establishment of a supply chain management system to strengthen supply chain ESG capabilities
  • Analyzing ESG self-assessment results of suppliers to identify risks, taking corrective actions, and deriving improvement tasks
  • Strengthening a support system for mutual growth by providing capacitybuilding support, training programs, and communication channels for suppliers
  • Reducing the burden of ESG assessment on suppliers
  • Introduction of ‘Click ESG’, a supply chain ESG assessment platform
  • Conducting supply chain risk assessments for 46 suppliers
  • Derived improvement measures for 21 suppliers
  • Distributed the Supply Chain ESG Support Guidebook
Transparent/ Responsible Management centered on the Board
  • Realizing transparent management through the appointment of board members who comply with the principles of independence, expertise, and diversity
  • Promoting board-centered management through the establishment of five committees under the Board and fulfilling the responsible role of the Board of Directors
  • Conducting the regular Board self-evaluations to enhance governance credibility and transparently disclosing the evaluation results
  • Conducting objective evaluations of outside directors once a year
  • Received Grade A rating on ESG Evaluation for governance from the Korea Institute of Corporate Governance & Sustainability
  • 15 Board meetings held