ESG System

SK Rent-a-Car conducts double materiality assessments to prevent management risks and discover new opportunities

ESG 추진체계 메인 비주얼 PC 이미지

ESG 추진체계 메인 비주얼 모바일 이미지

For a closer examination of ESG issues that we should pay attention to, SK Rent-a-Car carried out double materiality assessments to analyze comprehensively the impact of our business performance on society and the environment.

Stakeholder Engagement

SK Rent-a-Car works forming a consensus and receiving feedback on sustainable management issues with/from stakeholder groups directly/indirectly associated with all areas of business activities through various communication channels. We have been actively accepting them in our activities.


Stakeholders	Major areas of interest	Communication channels
Customers	Product quality and service safety, customer privacy protection, and customer satisfaction	Company website, official blog, social media channels, customer center, and customer satisfaction survey
Shareholders and investors	Transparent disclosure, sound governance, Ethical Management and Compliance, and introduction of eco-friendly products and services	Shareholders’ meetings, annual investor relations(IR) activities, and disclosure materials (Business, audit, corporate governance, sustainability, and annual reports)
Employees	Employees’ work-life balance, diversity and inclusion, talent development, fair recruitment, human rights management, and sound governance	Internal portal, employee survey, grievance handling channel, labor-management council, internal education/workshop, and anonymous bulletin board
Business partners	Mutual growth with business partners, human rights management, and support for social enterprises	Purchase information system and Procurement Council meetings
Local communities	Eco-friendly products and services, climate action, contribution to local communities, waste management and recycling expansion	Social contribution activities, partnership with local communities, and disclosure materials(Sustainability report)
Press/media	Transparent disclosure, climate action, Ethical Management and Compliance	Company website and media reports
Government	Ethical Management and Compliance, human rights management, job creation and job security, and expansion of renewable energy	Company website and disclosure materials (Business, audit, corporate governance, sustainability, and annual reports)

Materiality Analysis

SK Rent-a-Car has been conducting double materiality assessment, which is a comprehensive analysis on the impact of business performance on society and the environment. Double materiality assessment is a methodology that captures the two-way street of impact of sustainability relevant to environmental/social factors on corporate financing and corporate business activities on society, environment and people.

Materiality Analysis Procedure

Step 1

Preparing material topic “Long-List”

Methodology : Data Analysis (Qualitative)
Selected 30 topics through list-up and grouping based on global disclosure initiatives such as ESRS, GRI, SASB

Step 2

Deriving material topic “Short-List”

Methodology : Impact mapping(quantitative)
Calculate scores by topic by analyzing foundational data
- ESG evaluation and disclosure criteria
- Benchmarking within the industry
- Analysis of CEO messages, Board of Directors, and ESG Committee agenda
- Media analysis
Derive Short-List based on top topics

Step 3

Conducting the double materiality analysis

Analyze the business activities, direct results, and social/ environmental impacts for each topic by interviewing relevant departments
Conduct materiality analysis for each Impact by stakeholder survey consisting of employees and external experts(April 3rd to April 5th, 2023)
Analyze financial impacts(April 2023)

Step 4

Selecting the material topic

Select the top 5 material topic based on the ranking of impact analysis results

Step 5

Reviewing the material topic

Report the results to the Board of Directors
Conduct the Board of Directors's review of the methodology and results

2022 Topic Short-list

Materiality Analysis Results

Material Topic	Impact Materiality				Financial Materiality	Double Materiality	A+MAZE Strategy
Material Topic	Environmental · Social Impact	Impact Attribute	Impact Materiality Level	UN SDGs	Financial Materiality Level	Double Materiality Level	A+MAZE Strategy
Environmental Climate change responses and mitigation	Responding to the climate change by direct · indirect GHG emission reduction	Positive/ Actual	level1 level2 level3		level1	level1 level2 level3	Z
Environmental Climate change responses and mitigation	Legal sanctions and deterioration of international reputation due to strengthened regulatory oversight	Negative/ Potential	level1 level2		level1 level2 level3	level1 level2 level3	Z
Environmental Introduction of eco-friendly products and services	Establishing eco-friendly mobility ecosystem in Korea through expanding the number of EVs and the EV charging infrastructure	Positive/ Potential	level1 level2 level3		level1 level2	level1 level2 level3	Z
	Minimizing the environmental impact and improving air quality during vehicle operation	Positive/ Actual	level1 level2 level3		level1 level2
	Contributing to resource efficiency by reducing the use of paper during rental periods	Positive/ Actual	level1 level2		level1
Social Product quality and service safety	Enhancing service quality and customer value through Voice of Customer(VOC) response and activities improving customer convenience	Positive/ Potential	level1 level2		level1 level2 level3	level1 level2	A
Social Product quality and service safety	Contributing to the establishment of a safe driving culture throughout the society and reducing accident rates	Positive/ Potential	level1 level2		level1	level1 level2	A
Governance Business innovation and securing new growth drivers	Improving service qualities by business innovation and introduction of new technologies	Positive/ Actual	level1 level2 level3		level1 level2	level1 level2	A
	Reducing transition risks through the exploration of new business opportunities and the acquisition of relevant capabilities	Positive/ Potential	level1 level2		level1 level2
	Risk of job changes and attrition among offline sales personnel and other employees	Negative/ Potential	level1		level1
Governance Sound governance	Promoting strategic decision-making and sustainable business activities through effective corporate governance	Positive/ Potential	level1 level2		level1 level2	level1	E
Governance Sound governance	Realizing shareholder value through the protection of shareholder rights and active communication	Positive/ Potential	level1 level2		level1	level1	E

Management Approach

Climate change mitigation and adaptation
More
Governance

Establishment of system to respond to the climate change

Management/Supervision

Deliberation and resolution of agenda associated with climate change related risk and opportunity by the Board of Directors

Leading organization

ESG Team

Related organization

GHG Management : All business locations

Strategy & Policy

Establishment of Roadmap for Net Zero
Risk Management
- Implement integrated risk management related to climate change and preventive measures for physical hazards
- Continuously monitor climate-related risks and opportunities of short, medium, and long-term
- Support the establishment of an emergency response system for natural disasters and accidents in all business locations
- Incorporate climate-related risks and opportunities as deliberation agenda for investment decisions(e.g., Jeju EV Park)
Metrics & Targets

Metrics

GHG Emissions(Incorporate GHG emission reduction target within the management’s KPIs)

Targets

Exceeded a 8% reduction compared to the 2022 reduction target of 3,543 tCO₂eq

Goals

Achieve Net Zero
Introduction of eco-friendly products and services
More
Governance

Expanding the engagement of relevant organizations for the expansion of eco-friendly products and services

Management/Supervision

The BOD and CEO establish and review the overall direction and performance of eco-friendly mobility initiatives

Leading organization

ESG Team

Related organization

Strategy & Policy

Lead the eco-friendly mobility ecosystem in accordance with the environmental management policy
Risk Management
- Monitor and manage the status of eco-friendly vehicle ownership
- Verify GHG reduction from EVs for monitoring the effectiveness of eco-friendly products and services
- Analyze needs and pain points related to EV usage and develop convenient services
Metrics & Targets
Metrics

EV conversion rate

Targets

Purchased 7,000 zero-emission vehicles in 2022(including 1,000 EVs in Jeju)

Cumulative EV conversion rate of 6.5% in 2022(2022 roadmap target 5%)

Goals

100% conversion to EVs for all operational vehicles in Jeju by 2025

Achieve EV100 by 2030(25% by 2025, 70% by 2028)
Product quality and service safety
More
Governance

Securing dedicated team to enhance customer value

Management/Supervision

BOD and CEO

Leading organization

Operate the Secretariat for enhancing customer value

Council

Operate Customer Protection Organization and Customer Value(CV) Council within the CX Innovation Office

Strategy & Policy

Promoting customer protection system centering around five areas by establishment of a Customer Protection Charter
Risk Management
- Introduce a “CV Officer” system to effectively respond to VOC, identify major issues, and implement improvement tasks
- Analyze customer satisfaction to reflect it in quantitative/qualitative improvement of all products and services
Metrics & Targets
Metrics

Customer satisfaction

Targets

93.6% customer satisfaction in 2022

Goals

Achieve 94.0% customer satisfaction by 2023

Achieve 95.5% customer satisfaction by 2025
Business innovation and securing new growth drivers
More
Governance
Establishment of relevant organizations to leap to platform business through EV transition
Management/Supervision

BOD and CEO

Leading organization

EV infrastructure development : EV Infra Development Division, EV Business Division

EV data analysis : Smartlink Business Unit, Data Science Team
Strategy & Policy

Expanding business models centering around “Digital Transformation” and “Service Platformization”

Risk Management

Reduce the business risk associated with the transformation into the mobility platform through the exploration of new business opportunities and the acquisition of relevant capabilities
Metrics & Targets
Metrics

No. of EV Link subscribers

EV Link charging coverage

Targets

Reached 1,520 subscribers in 2022

Reached 31% of coverage in 2022

Goals

Expand services and increased the user base of a new BM platform
Sound governance
More
Governance

Establishment of organizational structure for efficient Board of Directors operations

Management/Supervision

Make decisions and oversee key management matters in the BOD

Leading organization

Perform integrated risk management, the composition and operation of the BOD in the BOD Secretariat

Strategy & Policy

Enhancing a sound and transparent governance
Risk Management
- Build a transparent and clear decisionmaking system to address internal issues
Metrics & Targets

Metrics and Targets

Disclosure of Board of Directors activities through corporate website and electronic disclosure system

Goals

Establish and disclose a BOD evaluation system

go top