SK Siltron Publishes Climate Change Report... "Strengthening Sustainability"

Industry First Use of S&P Global's Scenario Analysis Model
Enhancing Climate Change Resilience

2022 TCFD Report Cover. [Photo by SK Siltron]

[Asia Economy Reporter Han Yeju] SK Siltron announced on the 10th that it has published a TCFD (Task Force on Climate-related Financial Disclosures) report analyzing its domestic sites and overseas supply chains, taking into account overseas climate change risks.

SK Siltron published its first TCFD report this year. It included the results of financial impact analysis based on risk factors by applying S&P Global's scenario-based analysis model for the first time in the industry. The analysis was conducted according to scenarios presented by S&P Global, considering increased carbon costs due to strengthened carbon regulation policies and the long-term asset loss impacts that may arise from climate change. The analysis measured the impact of climate change on business activities across all SK Siltron sites, its subsidiary SK Siltron CSS in the United States, and key supply chains, based on S&P Global's scenarios.

Additionally, based on the TCFD framework, SK Siltron evaluated the short-, medium-, and long-term impacts of 40 climate change-related risks and opportunities on the company, identifying significant risk factors and major opportunities.

SK Siltron identified the major climate change risks as ▲increased carbon cost burden due to strengthened greenhouse gas regulations at business sites ▲rising raw material procurement costs due to increased carbon prices ▲rising electricity prices due to energy transition in the power sector. The key opportunities included ▲entry into the next-generation power semiconductor wafer market ▲responding to eco-friendly customer demands through low-carbon product innovation ▲cost reduction through renewable energy transition.

Based on the analysis results using the TCFD framework and S&P Global's model, SK Siltron established response strategies to overcome risk factors. The four major strategies include ▲pursuing net zero greenhouse gas emissions at business sites ▲managing carbon cost risks in key supply chains ▲innovating business site operations through renewable energy transition ▲establishing a sustainable growth foundation through low-carbon products/solutions. These strategies were incorporated into the company-wide risk management process to concretize the execution system.

An SK Siltron official stated, "We will actively promote the four key strategies for climate change response and continuously manage related key indicators," adding, "Based on the evaluation results in this TCFD report, we plan to strengthen resilience and adaptability amid uncertain climate change to solidify sustainability."

This content was produced with the assistance of AI translation services.