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Double Materiality Assessment

KEPCO conducts annual materiality assessments to analyze the significance of issues that could impact its sustainability. We intensively manage and report key factors identified through this assessment. Especially this year, we conducted a double materiality assessment based on the impact identification and evaluation method recommended by the GRI Standards (2021), an international standard for sustainability reporting. Through this double assessment, we analyzed the impact of KEPCO’s management activities on the environment and society, while also conducting a comprehensive evaluation of how external sustainabilityrelated factors might affect KEPCO’s management and financial status.
Financial Impact

Outside-in

Positive and negative impacts of external sustainability factors on KEPCO’s management and financial status

Environmental and Social Impact

Inside-out

Actual or potential positive and negative impacts of KEPCO’s management activities on the environment and society

Double Materiality Assessment Process

Considering the characteristics of the electric power industry, environmental shifts, and current challenges, we have compiled a pool of sustainability management issues highly relevant to KEPCO. From this pool, we identified five key issues, taking into account both the environmental and social impacts (Inside-out) and the financial impacts (Outside-in). The effectiveness of these key issues has been assessed through internal evaluations related to management, ESG strategies, and the results of group-wide risk assessment analysis, as well as thirdparty verification. Through this report, we aim to share with stakeholders the risks and opportunities associated with each issue, business impact and strategy, and related activities.
  • STEP 01
    Compilation of a Sustainability
    Management Issue Pool

    We employed an analytical mechanism to comprehensively examine the characteristics of the industrial group to which KEPCO belongs, recent internal and external environmental changes, management strategies, policies, and pending issues. Through this process, 21 issues were selected for inclusion in the pool, covering environment (6), societal aspects (7), and economic and governance aspects (8).

  • STEP 02
    Identification of Impact
    and Priority Evaluation

    After identifying the environmental, social, and financial impacts of each issue, we selected nine significant issues— spanning financial, environmental, and social aspects—through a comprehensive priority assessment that considered their interconnectivity.

    이해관계자별 소통 및 참여
    Financial
    impact
    (Outside-in)
    Analysis of international standards and evaluation indicators based on financial impacts (SASB, S&P Global, MSCI and KCGS) Analysis of related laws and regulations Analysis of internal strategies and policies Employee survey
    Environmental
    and social impact
    (Inside-out)
    Analysis of international standards and evaluation indicators based on environmental and social impacts (GRI, UN SDGs and UNGC) Benchmarking analysis of similar industries (seven domestic and foreign companies in the electric utility Analysis of media articles (1,050 articles Survey of external stakeholders

    < Stakeholder survey >

      • • Survey period : August 13 ~ 23, 2023
      • • Survey targets : Executives, employees, and external stakeholders
      • • Survey method : Online multiple-selection check method
      • • Results : Answers from 1,816 respondents (1,494 employees, 9 shareholders and investors, 5 partners, 291 customers, 7 academics and experts, 10 people from government, media, local governments, etc.)
  • STEP 03
    Identification of Key Issues
    and Validation

    • We reviewed whether the key issues (5) and the reporting/management issues (16) were selected according to the significance requirements of KEPCO’s sustainability management policies. We also verified their appropriateness concerning the scope, boundaries, and time frame of sustainability management.

    • The results of the double materiality assessment were reported and checked to the management and the Board of Directors (ESG Committee). The report included strategies, goals, implementation structure, major activities, and performance of the identified key issues.