SK Gas Achieved Social Value Creation Performance of '298.8 Billion KRW' Last Year

Economic Indirect Contribution Performance Increased by 15% Compared to the Previous Year

SK Gas has set a new record for social value (SV) creation based on strong business performance.

Graphic of SK Gas's social value creation performance last year. Data provided by SK Gas

On the 13th, SK Gas announced that last year it created a total social value of 298.8 billion KRW, including ▲economic indirect contribution performance of 255.7 billion KRW ▲environmental performance of 11.4 billion KRW ▲social performance of 31.7 billion KRW. This figure represents an 18% increase compared to the previous year’s 252.4 billion KRW and is the highest level since measurement began in 2018.

The 'economic indirect contribution performance' led the creation of social value with increases in employment, dividends, and tax payments. As SK Gas expands its LNG (liquefied natural gas)/LPG (liquefied petroleum gas) business as a bridge fuel in the transition to decarbonized energy to become a 'Net Zero Solution Provider,' employment numbers increased, resulting in a 16% (13.8 billion KRW) growth in employment performance. Additionally, dividends increased by 27% (12.6 billion KRW) through a shareholder-friendly dividend policy proportional to business growth, and tax payments rose by 9% (7.9 billion KRW) compared to the previous year due to increased pre-tax profits.

'Social performance' showed significant growth, recording 31.7 billion KRW, a 66% (12.6 billion KRW) increase from the previous year. The growth in the 'social contribution' and 'mutual growth' sectors were major factors in this increase. Social contribution grew by 144% (5.9 billion KRW) as a result of active support projects for vulnerable groups, ecological protection projects, and nearly tripled volunteer activities by employees compared to the previous year. Efforts in the mutual growth sector, such as interest-free financial support for business partners and shortening payment periods for delivery payments, contributed to a 43% (3.9 billion KRW) increase, also playing a role in the growth of social performance.

'Environmental performance' slightly decreased by 4% compared to the previous year, recording 11.4 billion KRW. While the environmental (process) area improved by 7% year-on-year thanks to reduced greenhouse gas emissions, the overall environmental performance declined due to a reduction in LPG vehicles, which led to decreased air pollutant reduction achievements from LPG fuel use.

Woo Byung-jae, SK Gas’s ESG Officer, stated, “SK Gas is drawing a blueprint and executing it step-by-step so that new business models such as LNG and hydrogen can simultaneously address social issues like climate change and pursue economic value. Based on the LNG business, which will begin commercial operation next year, we will accelerate the creation of social value.”

Meanwhile, social value is a business model innovation direction that SK Group is focusing on. Each affiliate measures social value (SV) alongside economic value (EV) such as operating profit annually and establishes and implements strategies to strengthen it, making 'DBL' (Double Bottom Line) a key management indicator. Since the first measurement announcement in 2019, this marks the fifth year.

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