Materiality Assessment

 

In accordance with the principles of the Global Reporting Initiative (GRI), the global sustainability disclosure guidelines, we conduct an annual materiality assessment. This year we created a pool of material issues based on the concept of double materiality which considers the impact of a company's business operations on key stakeholders, environment and society (impact materiality) from an inside-out perspective, and the financial impact and risks that external factors may have on a company’s business operations (financial materiality) from an outside-in perspective.

 

In 2022, ‘Human Rights, Safety & Health’ emerged as key issues due to the implementation of the 'Serious Accidents Punishment Act', but in 2023, 'Product Safety & Customer Relationship Management', 'Packaging Material Management & Contribution to Circular Economy', and 'Responsible sourcing, Sustainable Agriculture & Fisheries' were selected as the three key issues due to climate change and sustainable food industry responsibilities. One of the previous year's material issues, “Product Sustainability,” was assessed as one of the issues that is not one of the top three material issues, but is still material to Pulmuone. 

The results of this double materiality assessment were reported to the ESG Committee of the Board of Directors on June 20, 2024, and can be found in Pulmuone's 2024 Semi-Annual Report.

 

1. Double Materiality Assessment Process

 

[Summary of Double Materiality Assessment Process]

 

2. Result of Double Materiality Analysis

 

[Assessment Metrics]

 

[Result Analysis]

 

[Key Issues Identified]

 

[Material Issues for Stakeholders]

 

3. Materiality Assessment integrated in Pulmuone’s ERM process
 

We apply a comprehensive risk management system throughout the entire company. Both financial and non-financial risks, including all actual/potential risks identified through double materiality assessment, are assessed once a year in accordance with the Corporate Risk Management Regulations to re-assess the level (Low, Middle, High) of each risk, and changes are reflected accordingly.

 

In addition to the periodic assessment, each affiliate re-examines its pool of risks every year and conducts a comprehensive renewal on the zero base every 3 years to update the basis of risk assessment according to the current situation. The results of these assessments and renewals are reported to the Risk Management Committee, and through this process, we are able to methodically manage various risks that could threaten our sustainable management.

 

[Pulmuone's Risk Management Process]