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Human Rights Management System

Human Rights Mangement Policy and System

All stakeholders deserve to be respected and have the right to happiness. SK Gas understands the diverse backgrounds of stakeholders and takes careful measures to prevent human rights violations or exclusion and discrimination in decision-making processes. By continuously communicating with stakeholders, we aim to expand diversity and inclusiveness and improve quality of life.

Policy

In 2020, SK Gas established and published a Human Rights Declaration and regulations approved by the CEO, based on international standards*. According to the declaration, SK Gas adheres to principles of human rights respect, non-discrimination, prohibition of forced and child labor, compliance with working hours and conditions, freedom of association, workplace safety, and protection of local communities' rights. We strive to protect the human rights of all stakeholders, including employees, with special attention to vulnerable groups such as non-regular workers, people with disabilities, women, and partner company workers.

  • * International standards include the Universal Declaration of Human Rights, the International Bill of Rights, the UN Guiding Principles on Business and Human Rights, core conventions of the International Labor Organization (ILO), the OECD Guidelines for Multinational Enterprises, and the UN Convention on the Rights of the Child.
Scope and Process of Human Rights Management
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Target

  • Employees
  • Partners
  • Customers/Consumers
  • Local Communities

Scope

Basic Rights
Prohibition of child labor
Prohibition of forced labor
Freedom of association and collective bargaining
Non-discrimination
Social, Environmental, and Ethical
Guarantee of industrial safety
Environmental protection
Protection of local residents
Anti-corruption
Customer benefits
Information rights

Management Process

  • Risk Management System

    • Identification and evaluation of risks
    • Prevention or mitigation
    • Execution and result tracking
    • Review and communication (disclosure)
  • Follow-up actions and remediation procedures
Human Rights Management Goals

By setting human rights impact assessments and human rights education as management indicators, SK Gas aims to internalize human rights management by 2024 and establish it by 2025.

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  • Introduction of Human Rights Management (2019 ~ 2021)

    Tasks
    Establish human rights management system
    Introduce and conduct human rights impact assessments
    Raise awareness and understanding of human rights management
  • Internalization of Human Rights Management (2022 ~ 2024)

    Tasks
    Enhance and expand human rights impact assessments
    Expand human rights education (increase hours and diversify content)
    Improve and implement systems
  • Establishment of Human Rights Management (2025 ~ )

    Tasks
    Enhance human rights management system
    Promote a culture of respect for human rights
Human Rights Education and Grievance Handling Goals
Goals for Human Rights Education and Grievance Handling (2020 ~ 2026)
Category Measurement Method Unit Performance Goals
2020 2021 2022 2023 2024 2025 2026
Expansion of Human Rights Education Human Rights Education Hours per Person Hours 1.3 3 3.5 4.2 4 4.3 4.5
Protection and Remedy of Human Rights Number of Cases Handled/Grievances Received % - (0/0) - (0/0) 100% (4/4) 100% (3/3) Maintain 100%
Human Rights Impact Assessment Roadmap
Goals for Human Rights Impact Assessment Targets and Scope (2024 ~ 2027)
Category 2024 2025 2026 2027~
Company

SK Gas

Subsidiaries

Domestic Subsidiaries (SKA)

Domestic Subsidiaries (LNG, etc.)

Overseas Subsidiaries

Discovering new businesses and ideas

Partners

Resident Partner Companies (All Sites)

Transport Partners

External Key Partners

Overseas Partners (Production/ Trading/ Transportation)

Customers

Automobile Refueling Stations

Propane Refueling Stations

Consumers

PG Vehicle Customers

Industrial/ Petrochemical LPG Customers

Local Communities

Seongnam

Pyeongtaek

Human Rights Management Governance

To ensure sustainable human rights management, the CEO establishes and revises the Human Rights Declaration and Human Rights Management Regulations, reflecting changes in the business environment.

The Human Rights Management Committee under the CEO manages and supervises the human rights risk management system, response measures for human rights issues, and the implementation of the Human Rights Declaration and regulations. The committee reviews the execution status of measures derived from human rights impact assessments.

The Human Rights Management Committee Secretariat supports the management and supervision functions of the committee. The Secretariat Director oversees the overall human rights management system, while operational departments establish and manage systems to address stakeholder-specific human rights issues. Additionally, various support functions such as HR, SHE (Safety, Health, and Environment), Legal, and Audit provide practical support.

Organization Chart
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  • Board of Directors
  • ESG Committee
  • CEO
  • Human Rights Management Committee Chairperson
  • Human Rights Management Committee Secretariat
  • Stakeholder-specific Human Rights Management Oversight/Support
    Corporate Culture Director: Employees, Partners
    Sales/Marketing Director: Customers/Consumers
    External Relations Director: Local Communities
    Legal Director: Human Rights Policy, Grievance Channels
    ESG Operations Director

Human Rights Management Activities

Human Rights Impact Assessment

The human rights impact assessment identifies all negative human rights impacts that the company has on stakeholders, evaluates their severity and likelihood, and prioritizes key human rights issues to address. SK Gas conducts human rights impact assessments in accordance with international standards, such as the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises. The assessment process includes five steps: ① Planning, ② Identifying Human Rights Impacts, ③ Assessing Human Rights Impacts, ④ Developing Response Measures, and ⑤ Enhancing the Human Rights Due Diligence System. The 2024 assessment expanded its scope compared to 2023, focusing on implementing mitigation and preventive measures based on the results and establishing a roadmap for improvement. SK Gas will continue to conduct annual assessments to identify and effectively address potential human rights risks, strengthening sustainable management.

Human Rights Impact Assessment Process
  • Step 1
    Planning
     
     

    • Assessment Design and Training

      • Defining assessment scope, target, and methods
      • Identifying training targets
    • Business Environment Analysis
    • Identification of Existing Human Rights Risks
    • Selecting Human Rights Risks
  • Step 2
    Identification of Human Rights Impacts
     

    • Checklist
    • Self-assessment questionnaires
    • Surveys
    • Site visits, and focus group interviews (FGI)
    • Identifying actual/ potential human rights impacts
  • Step 3
    Human Rights Impact Assessment (HRIA)
     

    • Determining HRIA Scale
    • Severity assessment
    • Priority assessment
  • Step 4
    Response Measures
     
     

    • Mitigation/prevention response actions
    • Establishment of functional mitigation/ prevention tasks
    • Preparing HRIA Report
  • Step 5
    Enhancing the Human Rights Due Diligence System

    • Improving human rights policies
    • Developing monitoring plans
    • Developing communication plans
    • Evaluating and improving grievance handling effectiveness
Identifying and Assessing Human Rights Impacts

Since 2020, SK Gas has implemented a human rights impact assessment system, conducting assessments through external consulting to ensure transparency. The 2024 assessment included the head office, subsidiaries (SK Advanced), resident Partners at business sites, nearby charging stations, and the local community (Seongnam). The assessment identified a total of 35 human rights issues, based on international standards such as the UNGPs and OECD guidelines, evaluating them based on severity and likelihood. Thirteen issues rated at Level 4 or higher were selected as major human rights issues.

Evaluation Criteria

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  • Severity

    • Scale: The gravity of the impact on human rights
    • Scope: The number of individuals or groups affected
    • Irremediability: The likelihood of the affected parties enjoying their previous rights
  • Likelihood: Probability and frequency of occurrence

Evaluation Scale

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  • Low
  • Medium
  • High

Priority Evaluation Table

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"If the company cannot address all negative human rights impacts at once, it should start with the most severe impacts." (UNGPs, Commentary on Principle 24)

Human Rights Issues and Risk Levels by Stakeholders
Human Rights Issues Risk Levels
High Mid Low Total
Employees 1 6 2 10
Partners 1 5 12 18
Customers 0 0 4 4
Local Communities 0 0 4 4
Total 2 11 22 35
Key Human Rights Issues and Response Measures

For the 13 key human rights issues identified, response measures have been established and implemented as short, medium, and long-term tasks. Additionally, the effectiveness of these measures in addressing and preventing actual and potential risks is monitored. Of the 36 response measures for the issues identified in 2023, 29 have been completed, with the remaining 7 medium and long-term tasks targeted for completion by 2025. Progress is regularly reviewed.

Human Rights Issues Response Measures Target Completion Time
Prevention of Workplace Bullying and Sexual Harassment
  • Develop policies to protect whistleblowers or victims from retaliation and secondary harm
  • Conduct detailed training on the types of secondary harm and preventive measures
  • 4Q 2024 (Short-term)
Respect for Privacy and CCTV Use
  • Consult the Happiness Committee when installing new CCTVs
  • Inform employees and resident Partners about CCTV installation standards and locations
  • 4Q 2024 (Short-term)
Enhance Human Rights Education and Grievance Procedures in the Supply Chain
  • Provide human rights management education to employees of internal Partners, transport companies, and charging stations
  • Distribute educational materials and information on grievance channels to internal Partners, transport companies, and charging stations
  • 4Q 2024 (Short-term)
Human Rights Protection Activities and Goals
Preventive Management of Human Rights Risks

Through human rights impact assessments, SK Gas continuously supplements its human rights management system while managing and improving potential human rights risks in three major areas: ① Prevention of Sexual Harassment ② Prevention of Workplace Bullying ③ Respect for the Rights of Disabled Persons. To address these risks, vulnerable groups are identified, and continuous human rights education is conducted alongside institutional improvements. Regular human rights awareness programs and education are also provided to enhance awareness among organizational members.

Preventive Management of Human Rights Risks: Category, Group, and Action Plan
Category Group Action Plan
Prevention of Sexual Harassment All Employees
  • Conduct sexual harassment prevention education and ethical management training annually
  • Operate policies and channels for protection and grievance handling of victims and whistleblowers with separate channels for male and female contacts (since 2021)
Prevention of Workplace Bullying All Employees
  • Provide case-based education for workplace bullying prevention, with separate and expanded courses (until 2021)
  • Operate policies and channels for protection and grievance handling of victims and whistleblowers
Anti-discrimination / Protection of Rights of Disabled Persons Employees with Disabilities
  • Conduct annual disability awareness education
  • Expand the hiring of employees with disabilities
  • * Human rights grievance channels include integrated reporting channels for issues such as sexual harassment prevention and workplace bullying (since 2021).
Education Time, Participation Rate, and Conduct of Training (2021-2023)
Category Unit 2021 2022 2023
Average Training Time per Person Hours 3.5 3.5 5.0
Participation Rate % 100 100 100
Conduct of Sexual Harassment Prevention and Workplace Bullying Prevention Training Conducted Yes Yes Yes
  • * Standards include sexual harassment prevention and workplace bullying prevention training.
Human Rights Grievance Counseling Channels

SK Gas operates various channels to resolve human rights-related grievances of its employees and stakeholders. Reports are reviewed by the responsible organization according to the whistleblower protection and grievance handling procedures, and the results are communicated to the whistleblower. In January 2024, SK Gas launched an external human rights grievance reporting channel, Communication Hotline , to enhance the protection of whistleblower information and ensure transparency and independence in the handling process.

Human rights grievance counseling and reporting channels for each stakeholder
Human Rights Grievance Channels by Stakeholder
Stakeholder Channel
Employees SK Ethics Management Report, SK Gas Website 1:1 Customer Inquiry Center, Communication Hotline, Integrated Workplace Bullying/Sexual Harassment Reporting Center
Partners SK Ethics Management Report, SK Gas Website 1:1 Customer Inquiry Center, Communication Hotline
Community SK Ethics Management Report, SK Gas Website 1:1 Customer Inquiry Center, Communication Hotline
Customers/Consumers SK Ethics Management Report, SK Gas Website 1:1 Customer Inquiry Center, Communication Hotline, the Happy LPG Membership Customer Center
Grievance Reception and Handling Status
Grievance Reception and Handling Status
Stakeholder Received Resolved Dismissed In Progress
Employees 3 3 0 0
Partners 0 0 0 0
Customers 0 0 0 0
Local Communities 0 0 0 0
Subsidiaries 0 0 0 0
Diversity Policies and Status
Policy

Based on its human rights management policy, SK Gas protects the rights of employees and respects diversity by preventing discrimination in employment, promotion, compensation, and working conditions based on origin, race, gender, disability, religion, age, political opinion, and other factors. To maintain this commitment, SK Gas conducts annual discrimination prevention education, including disability awareness training, and expands the hiring of female leaders and employees with disabilities.