Coway Sustainability

Materiality Test Process

Woongjin Coway conducted materiality test based on stakeholder interest and business impact through international standards analysis, global benchmarking, media research and stakeholder survey to select and manage material issues. Identified material issues were reported in the Woongjin Coway Trust Report. We secured objectivity of the report in compliance with the GRI Standards Guideline of GRI(Global Reporting Initiative).

Step 1. Organizing an issue pool

To identify major issues, we conducted international standards analysis, global benchmarking, internal data review, stakeholder survey and media research. With this process, 37 issues were identified.

International standards analysis & Global benchmarking

Analyzing requirements in international standards related to sustainability management and identifying issues
Analysis target: GRI Standards, ISO26000, SDGs, etc.
Analyzing major issues and activities of DJSI World companies in the same sector as global electronic companies
Researching domestic and overseas sustainability management report trends

Survey of internal and external stakeholders

Evaluation of materiality of sustainable issues and need for response, review actual/potential issues of external stakeholders
Interviewees: Employees, sales offices, suppliers, sustainability experts(April 3, 2019 to April 10, 2019)

Internal data review

Conducting total inspection for company webzines in 2018
Conducting interviews with staff members in relevant departments
Reviewing major issues in sustainability management reports of previous years
Checking internal policy documents

Media research

Analyze articles about Woongjin Coway from Jan 1 2018 to Dec 31 2018
Media target: 15 daily newspapers and economic newspapers such as Chosun, JoongAng, Dong-A, Hankyoreh, etc.

37 issues were identified in total

Step 2. Conducting materiality test

Based on the 37 identified issues, the materiality test was conducted by considering relevance to business and stakeholders in April 2019.

Business Relevance Analysis: Checking the management basis by analyzing internal data such as company newsletter

Stakeholder Impact Analysis: Conducting online and offline surveys for employees, investors, expert groups and opinion leaders for each stakeholder

Step 3. Selecting material issues

Based on the results of materiality test, we selected the most important issues for Woongjin Coway’s sustainability and reported business relevance for each issue, major activities and performance. The results of materiality test can be found in the materiality map below.

Selection of Sustainability Management Issues

Based on the results of materiality test, 12 most important issues for Woongjin Coway’s sustainability were selected.

Category	No	Material Issue	Evaluation of Impact	Target for Impact	Reporting Page
Trust Report 1	9	Securing technical competitiveness by strengthening R&D	Finance Operation Reputation	Customer, Investor	Link
	10	Development of customized products and services	Finance Operation Reputation	Customer, Investor	Link
	11	Development of innovative products by utilizing digital technology	Finance Operation Reputation	Customer, Investor	Link
Trust Report 2	7	Reinforcement of product safety and reliability	Finance Operation Reputation	Customer, Investor	Link
Trust Report 2	12	Management of hazardous chemicals	Finance Operation Reputation	Local community	Link
Trust Report 3	5	Development of eco-friendly products and services	Finance Operation Reputation	Customer, Local community	Link
Sustainability Management	2	Reinforcement of brand trust	Finance Operation Reputation	Customer, Investor	Link
	3	Management stability and sustainable growth strategies	Finance Operation Reputation	Customer, Investor	Link
	4	Horizontal and family-friendly corporate culture	Finance Operation Reputation	Customer, Local community	Link
	6	Development and maintenance of human resources	Finance Operation Reputation	Customer, Local community	Link
	8	Resource circulation and recycling	Finance Operation Reputation	Customer, Investor	Link
	1	Strategic social contribution activity	Finance Operation Reputation	Customer, Local community	Link