Kumho Tire conducts a double materiality assessment to identify key issues impacting corporate sustainability. The concept of double materiality assessment considers both the impact of issues arising from business activities on the environment and society (Outward, Impact Materiality) and the financial impact of these issues on the company (Inward, Financial Materiality). Key issues are selected by analyzing the Sustainability Accounting Standards Board (SASB) standards, GRI sector-specific standards, International Financial Reporting Standards (IFRS), EU sustainability reporting standards, MSCI guidelines, and internal and external management data. Surveys were also conducted with internal and external stakeholders.
Double Materiality Assessment Process
Results of the Double Materiality Assessment
Based on policy regulations, guidelines, industry trends, etc., Kumho Tire identified 16 key issues. The 2023 materiality assessment results highlighted ‘R&D and technological innovation,’ ‘climate change response and Net-Zero,’ ‘product quality and safety enhancement,’ ‘hazardous substances and environmental pollution management,’ and ‘energy efficiency management and renewable energy transition’ as top priority topics. The priority material issues were finalized through a board review process. The strategies, plans, activities, and outcomes related to these issues are transparently disclosed in the Sustainability Report.
2024 Topic | Impacts | Customers | Employees | Shareholders and Investors | Suppliers | Government, Local Community, NGOs | Comparison of 2023 | |
|---|---|---|---|---|---|---|---|---|
Environment and Society | Finance | |||||||
| 1 R&D and Technological Innovation | H | H | ● | ● | ● | ▲ 6 | ||
| 2 Climate Change Response & Net-Zero | H | H | ● | ● | ● | ▽ 1 | ||
| 3 Product Quality & Safety Enhancement | H | H | ● | ● | ● | - | ||
| 4 Hazardous Substances & Environmental Pollution Management | H | M | ● | ● | ● | New | ||
| 5 Energy Efficiency Management & Renewable Energy Transition | M | H | ● | ● | ▲ 5 | |||
| 6 Sustainable Supply Chain Management | M | M | ● | ▽ 4 | ||||
| 7 Development of Environmental Impact Reduction Products | M | M | ● | ● | ● | ▽ 3 | ||
| 8 Establishment of Safe Workplaces | H | M | ● | ● | - | |||
| 9 Harmonious Labor Management Culture | M | M | ● | New | ||||
| 10 ESG & Risk Management by the Board | L | M | ● | ● | ▽ 1 | |||
| 11 Resource Efficiency & Circular Economy Enhancement | M | L | ● | ● | ▽ 4 | |||
| 12 Strengthened Information Security & Privacy Management | L | L | ● | ● | New | |||
| 13 Biodiversity & Forest Protection | L | M | ● | New | ||||
| 14 Ethical Management & Compliance | L | L | ● | ● | ● | ▽ 9 | ||
| 15 Talent Acquisition & Fair Evaluation / Compensation | L | L | ● | ▽ 3 | ||||
| 16 Respect for Human Rights & Promotion of Diversity | L | L | ● | ▽ 5 | ||||
Management Approach for Key Issues
