Material Issues Assessment | Sustainable Shin Kong | Shin Kong Life Sustainability
Material Issues Assessment
Shin Kong Life selected the potential sustainability issues by referring to domestic and international trends, and conducted a survey to identify the material issues of the 2022 SKL CS Report based on the views of various stakeholders through the groups of the Corporate Sustainability Committee. The disclosures in this report and the future direction of our sustainability strategy are based on these material issues.
SKL's Material Issues Identification Procedure
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Collect sustainability issuesReferred to international sustainable development trends, relevant norms and standards, the latest domestic policies and regulations, as well as significant issues in the financial industry. Identified a total of 18 sustainability issues in collaboration with our parent company, SKFH, adjusting the names of 6 issues this year based on international trends and industry practices. |
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Identify communication targets and value chainConsidered the parties that might be involved, influenced, or impacted by the operational processes through internal questionnaire surveys and meetings. Identified 8 key stakeholders, including shareholders and investors, employees, policyholders, important investment and credit recipients, government agencies, community/social organizations, NGOs/NPOs, suppliers, and media. Reviewed and summarized the businesses or entities involved in the Company's operational value chain upstream and downstream. |
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Investigate stakeholders' level of concernConducted questionnaire surveys through online platforms, investor meetings, and event lectures, and analyzed the content of calls received on the 0800 hotline to gather stakeholders' level of concern regarding the 18 sustainability issues. A total of 94 external stakeholder questionnaires and 18,373 calls were collected through the 0800 customer service line. |
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Evaluate dual materiality
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Analyze operational impacts and prioritizeThe executive secretary analyzed the results of the internal and external impact assessment surveys of significant sustainability issues and prioritized them based on the level of concern from external stakeholders. Ten sustainability issues with significant impacts and high levels of attention were identified as material issues. |
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Verify material issuesThe executive secretary reported the analysis process and results of material sustainability issues for the current year to the Corporate Sustainability Committee. The President and senior executives verified the integrity of the materiality matrix. The implementation results of material issue-related initiatives were also periodically reported to the Board of Directors. |
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Verify disclosed contentsThe 10 verified material sustainability issues were disclosed in the 2022 Corporate Sustainability Report as highlights of response to stakeholders. The report included explanations of relevant impacts, management mechanisms, commitment goals, and performance related to the disclosed issues. |
Material Issue Impact Assessment
SKL 2022 Materiality Matrix
SKL conducted a quantitative analysis and ranking of the impacts of the 18 sustainability issues on its internal operations, external positive and negative impacts, and stakeholder concerns. Based on this analysis, a three-dimensional Material Issues Matrix was created. The X-axis represents the internal impacts of the issues on the Company's revenue, costs, and risks, while the Y-axis represents the impacts on the economy, environment, and people (including their human rights). The size of the Z-axis corresponds to the level of stakeholder concern for each issue. The placement of the issues on the matrix reflects their materiality, categorized as either "material issues" or "secondary issues". We focus our reporting and disclosure efforts primarily on the material issues, addressing the concerns of various stakeholders.
Environmental
Social
Governance
- The bubble size : Represents the concerned level of stakeholders.
Material Issues and Description of impact
| Material Issue | Description of impact |
|---|---|
Financial Performance |
SKL values the rights and interests of shareholders and stakeholders and develops meticulous operational strategies and directions to achieve long-term stability and profitability, bringing positive impacts to stakeholders and the financial market. |
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Corporate Governance and Ethical Management |
SKL places great emphasis on corporate governance and integrity, implementing comprehensive education and training programs and standards. By prohibiting unfair competition, insider trading, and transactions with entities involved in dishonest practices, we have established robust corporate governance and risk management mechanisms, enhancing the effectiveness of corporate governance and gaining public trust. These efforts have a positive impact on the Company's operations and business activities from an economic perspective. |
Customer Relationship Management |
SKL practices ethical management and promotes a financial-friendly environment by ensuring that all services and products comply with legal regulations. This reduces operational and penalty risks. Through satisfaction and NPS surveys, as well as providing customer communication channels, we understand customer pain points and continuously improve to enhance customer relationship management efficiency. These efforts have a positive impact on customers, human rights, and social aspects. |
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Sustainable Finance |
We continue to enhance sustainable finance policies and regulations, seek sustainable investment targets, and promote inclusive and sustainable economic growth. We support the development of sustainable industries and achieve sustainable and sound investment results. By strengthening engagement with our investees, we exert a positive influence on environmental, social, and human rights aspects. |
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Talent Recruitment and Retention |
SKL values talent recruitment to infuse new energy and vitality into the organization. We help employees develop clear career directions and achieve optimal utilization of human resources, ensuring a talent development strategy for the sustainable development of the organization. This has a positive impact on employees and social aspects, including human rights. |
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Risk Management |
For the main risks faced in insurance industry, major global political and economic issues, environmental issues, and emerging risks, we have established relevant risk management regulations and guidelines to assesse the impact of these risks. In addition, through the implementation of Business Continuity Management Systems (BCMS), we have strengthened our ability to respond to and recover from major events, safeguarding the interests of customers and all stakeholders, which has positive impacts on society and the economy. |
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Innovation and Digital Finance |
SKL prioritizes people and adopts a user-centric design approach. We continuously enhance our offerings in response to policyholder needs, societal changes, advancements in underwriting technology, and product development. We strive to provide a wide range of insurance services and digital technologies that cater to these factors. Moreover, we collaborate with government agencies, academic institutions, and social enterprises to deliver diverse digital services to the public, thereby making a positive impact on society and the economy. |
Actions for Climate Change |
While climate change may cause economic and environmental impacts to our business operations in terms of costs and revenue, it also presents opportunities for the industrial transformation. We have implemented the TCFD framework, set carbon reduction targets and implemented measures to reduce our operational carbon footprint. Furthermore, we utilize our financial resources, such as the management of carbon-intensive industries and green investments, to facilitate the transition to a low carbon economy. These efforts allow us to leverage our financial influence and contribute positively to both the environment and the economy. |
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Legal Compliance |
Build a comprehensive legal compliance management and oversight framework and review the compliance level of each department. Conduct regular training and education to enhance the legal compliance awareness of all employees, ensuring company compliance and optimizing customer service while reducing operational risks and the risk of penalties to achieve positive impact on the economy |
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Information Security |
Commit to providing customers with a sense of security and continuously promote a culture of information security, mitigating the risks of improper data usage and privacy violations, to achieve positive impact on business operations and human rights. |