To identify material issues that could affect Coway's sustainability, we conducted a double materiality assessment following the principles of GRI Standards 2021 to select reporting topics. This assessment method analyzes not only the environmental and social impacts of the company's business activities but also considers the financial impact of external environmental and social factors on the company. Coway gathered diverse perspectives through a stakeholder survey and identified material issues by integrating results from media sources, ESG evaluation indicators, and industry benchmarking analysis.
Double Materiality Analysis Overview
Double Materiality Assessment Process
Result of Double Materiality Assessment
Coway comprehensively analyzed the likelihood of sustainability issues occurring and their potential impacts, selecting 5 material issues out of a total of 20. These issues were finalized after being reported to and approved by the BOD. As a result, Coway identified 'product quality and safety' and 'eco-friendly products' as material issues for 2 consecutive years, recognizing them as major ESG issues highly relevant to its business operation. Coway intends to review material issues as key components of company-wide risk management and transparently disclose related ESC activities and their performance to stakeholders.
Environmental
- 1
Climate Change Response
- 2
Eco-friendly Products
- 3
Waste Management and Resource Circulation
- 4
Water Resources Management
- 5
Management of Hazardous Chemical Substances
- 6
Biodiversity
Social
- 7
Human Rights Management
- 8
Development and Management of Human Resources
- 9
Diversity and Inclusion
- 10
Supply Chain ESG Management
- 11
Strengthening the Expertise of Partners
- 12
Customer Satisfaction and Services
- 13
Social Contribution Activities
- 14
Safety and Health
- 15
Product Quality and Safety
- 16
Private Information and Information Security
Corporate Governance
- 17
Corporate Governance
- 18
Ethics and Compliance
- 19
Risk Management
- 20
Technological Innovation
| Rank | Issue | Page |
|---|---|---|
| 1 | Product Quality and Safety |
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| 2 | Customer Satisfaction and Service |
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| 3 | Eco-friendly Products |
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| 4 | Climate Change Response |
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| 5 | Waste Management and Resource Circulation |
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Management and Reporting of Material Issues
Coway identified the company's status and risk factors related to the five material issues selected through the double materiality assessment. The ESG Council discussed directions, policies, performance, improvement plans, and other relevant aspects to address each material issue. Subsequently, the outcomes of these discussions were reported to the ESG Committee under the Board of Directors (BOD).
| Material issues | Description of issues | Response direction | Key achievements in 2023 | Page |
|---|---|---|---|---|
| Product quality and safety |
Product Quality and Safety encompasses strategies aimed at enhancing product quality and ensuring safety through rigorous reliability, safety, and environmental verification processes, spanning from product development through disposal. Failure to ensure product quality and safety can lead to financial risks, such as product recalls and violations of environmental regulations, and negative impacts such as a drop in brand value. |
Operating Infinite Responsibility Committee ISO 9001-based quality management certification and verification Operating a daily quality data monitoring system Operating an emergency quality improvement TF Establishing the Worst Quality Accountability System Operating a quality VOC consultative organization Operating a quality expert committee Operating an internationally accredited testing laboratory and acquiring certification |
2023 National Quality Management Convention Certified as Excellent Quality Competitive Enterprise Attainment of Canadian Standards Association Electrical Safety Testing Laboratory Qualification Attainment of California Energy Commission Testing Laboratory Qualification Safety verification of 224 Coway manufactured products Acquisition of Quality/Reliability Responsible Engineer (PRE) Certification |
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| Customer satisfaction and service |
Customer satisfaction and service actively collects customer opinions and suggestions through various channels and reflects them in Coway products to provide products and services that meet customer needs. Failure to deliver products that meet customer needs can pose financial risks, including reduced customer satisfaction, diminished confidence among long-term customers, and lower revenue. |
Operating a customer-centered initial response process Operating a high-risk VOC handling process Operating a consumer compensating process Operating various customer satisfaction programs Conducting regular customer satisfaction surveys |
Certification as Korea Service Quality Excellence Company Consumer-Centric Management (CCM) Certification 2023 KNPS Award |
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| Eco-friendly products |
Low-carbon products are products that aim to minimize or eliminate negative impacts on the environment, and the demand for low-carbon products has been increasing in recent years due to changing customer awareness of the environment. Failure to adapt to these market shifts can result in a loss of customer trust and damage to the company’s reputation. |
Operating an eco-friendly product design process Product LCA Evaluation Expanding the use of recycled materials (recycled resins) Applying eco-friendly design and packaging |
Maintenance of a total of 30 Korea Eco-Labels Selection for 2023 InnoStar and GreenStar by Korea Management Certification Institute Reduction to 1/40 level compared to conventional Styrofoam through eco-friendly packaging for bidets Approved by the Ministry of Environment for Circular Assessment (5 types of bidets) |
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| Waste management and resource circulation |
Waste management and resource circulation aims to minimize the impact on the environment and human health by safely disposing of and efficiently circulating waste generated from business activities. If waste management and resource circulation are not carried out systematically, financial burden may arise due to the risk of violating relevant laws and regulations. |
Operating a resource circulation management process Establishing a circular economy system Establishing a refurbished product system |
Participation in Voluntary Agreement on Recovery and Recycling of Waste Mattresses 100% waste recycling Eco-friendly Paper Water Purifier Wins CES 2023 Innovation Award |
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| Climate change response |
Climate change response refers to strategies for mitigating and adapting to the negative impacts that businesses will experience from climate change. Without climate change response, achieving global Net-zero goals becomes unlikely, and climate risks can directly impact corporate assets, increasing the financial burden on investments. |
Promotion of RE100 conversion at major business sites Increasing productivity through process automation |
Establishment of a Scope 3 GHG emission measurement system Decision on internal carbon pricing Construction of renewable energy facilities (solar power plant No. 2) Environmental investment cost of KRW 1.2 billion |
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