We conducted a materiality assessment to identify important sustainability issues.

We will conduct annual materiality assessments to replace, remove, and/or add issues. We identified 13 common likely material topics based on comparison with the GRI Sector Standards (G11, G12, G13) as of November 2022. Our main business area, shipping industry, is not directly applicable to G11(Oil and Gas), G12(Coal), G13(Agriculture, Aquaculture and Fishing). However, common material topics in other industries are likely to considered as important elements in the upcoming shipping sector standards. Thus, we paired the common likely material topics to each of the top nine material topics for which we will take extra prudence in management. Related information is included on the material topic management pages. The process and results of the materiality assessment will be disclosed in our annual ESG reports in a transparent manner.

Materiality Assessment Process

To identify core issues related to sustainable management and incorporate them in this report, we conducted the materiality assessment in the following four steps based on the GRI Standards reporting guidelines.

• step 01

  Issue identification and pooling

  Sustainable management issue pooling

  ① Global initiatives and standards analysis (GRI, ISO 26000, UN SDGs, DJSI, KCGS, SASB, TCFD, K-ESG, Ecovadis)
  ② Pan Ocean’s standing and internal inputs

• step 02

  Internal/external environment analysis

  Media analysis

  · Analyze media reports related to Pan Ocean
  · Period: 2019.01.01-2022.06.30
  · 263 valid articles out of 1,424

  Benchmarking

  · Analysis of local and international sustainable management leaders

• step 03

  Collecting opinions from stakeholders

  Stakeholder survey

  · Survey of internal and external stakeholders on Pan Ocean’s sustainable management
  · Period: 2022.08.11-08.29
  · Method: Online survey

  Application of Pan Ocean’s mid to long-term strategic directions

• step 04

  Decisions on directions of reporting

  ① Identify core reporting issues based on the assessment results
  ② Include sustainable management activities and response measures for nine core issues

Materiality Assessment Results

Based on the results of the materiality assessment, we selected top nine priorities as the material topics to report. This report contains details on our management activities and responses for each of the topics.