Identification of Material Topics

Process for Identifying Material Topics

SKM adopted the latest version of the GRI guidelines and identified material topics through processes such as making changes to sustainability issues, defining impacts, assessing impacts, analyzing impacts, and ranking sustainability issues.

Steps for Identifying Material Topics Description
Changes to Sustainability Issues Based on the 22 sustainability issues from 2021 and following the recommendations of external sustainability consultants, four similar sustainability issues have been merged and two internal issues have been excluded. SKM had a total of 16 sustainability issues in 2022.
Defining Impacts Based on the potential impacts on the economy, environment, and society associated with the 16 sustainability issues, SKM has defined 10 issues with positive impacts and 10 issues with negative impacts.
Assessing Impacts SKM issued surveys to 33 units, where departments were asked to evaluate issues with positive and negative impacts independently and score issues based on impact level and likelihood.
Analyzing Impacts
  • After collecting 234 surveys on issues with positive impacts and 227 surveys on issues with negative impacts from various units, the scores provided by each unit were totaled and weighted.
  • In addition to scores provided by SKM units, we also consider factors such as human rights issues, past risk incidents, SKM workshops, and due diligence reports from interviews to generate a weighted score for issues with negative impacts
Ranking Sustainability Issues In reference to new GRI guidelines, internal assessments, and other factors listed above, SKM ranked sustainability issues in 2022 and identified eight key topics, five secondary topics, and three miscellaneous topics.

Results from Material Topic Identification

16 Sustainability Issues Positive Negative Impact Materiality in 2022* Materiality in 2021*
Talent Cultivation and Development Robust talent cultivation and development system - Key topic Key topic
Talent Attraction and Retention Attracts and retains outstanding talents - Key topic Key topic
Innovative digital services Enhances customer's digital shopping experience - Key topic Key topic
Product quality and responsibility Outstanding product quality and safety assurance Unclear labels or signs for events and ads、improper product quality management Key topic Key topic
Operational performance and innovative strategies Protects and safeguards shareholder rights - Key topic Key topic
Corporate governance and ethical management - Poor corporate governance Key topic Key topic
Information security and privacy protection - Company and customer data leaks Key topic Key topic
Customer relationship management Excellent customer relationship management Customer reports, complaints, and disputes Key topic Key topic
Fair and Healthy Workplace - Violations of workplace safety and labor rights Secondary topic Secondary topic
Social Good and Arts & Culture Promotion Promotes the arts, culture, and community development - Secondary topic Secondary topic
Risk Management - Poor risk management Secondary topic Key topic
Sustainable consumption initiatives Raising the industry's awareness of sustainability - Secondary topic Secondary topic
Waste Management Promotes the circular economy Waste pollution Secondary topic Secondary topic
Water Management - Water consumption Miscellaneous topic Secondary topic
Low-carbon Energy Management - Energy consumption & GHG emissions Miscellaneous topic Miscellaneous topic
Sustainable supply chain Shared prosperity and sustainable development with suppliers - Miscellaneous topic Secondary topic
  • Note:
    1. Changes to the naming of material topics in 2022: "Core Topics" has been renamed as "Key Topics," "Main Topics" as "Secondary Topics," and "Supplementary Topics" as "Miscellaneous Topics." These updated names are reflected in the table above.
    2. Changes to material topics this year include "Risk Management." Changes were made because we adopted a revised methodology for assessing materiality this year. "Risk Management" has relatively fewer connections with human rights risks and impacts, and there have been no relevant regulatory penalties or incidents. Therefore, "Risk Management" has been lowered in the rank of importance from 2021.
    3. Key topics, related management measures, and related GRI disclosures are disclosed in this report.