SM Publishes Second Sustainability Report... Practicing 'Transparent Board of Directors and Human Rights Management'

New Governance Committee Established This Year... Review to Enhance Shareholder Value
Women Directors Account for 40%
Focus on Human Rights Management, Environmental Management, and Healthy Corporate Culture

SM Entertainment published its sustainability management report on the 28th, detailing the ESG (Environmental, Social, and Governance) management activities and achievements from last year. The report includes key activities and outcomes of sustainability management efforts and strategies carried out from 2022 through the first half of 2023, as well as future plans. This is the second report following last year's publication.

In the governance sector, the report covers ▲enhancing sustainable shareholder value ▲transparent and professional board operations. This year, SM significantly increased the proportion of female directors, including outside directors, and formed a board with independence, expertise, and diversity. The SM board consists of a total of 10 members: 3 inside directors, 5 outside directors, and 2 other non-executive directors. Among them, the ratio of female directors reaches 40%. Additionally, an outside director was appointed as the chairperson of the board, and four committees within the board (Outside Director Nomination Committee, Governance Committee, Internal Transactions Committee, and Compensation Committee) were established to strengthen the board’s responsibility and role in sustainability management. Notably, the newly established Governance Committee under the board will review and approve mid- to long-term sustainability management policies and goals, ethical management practices, shareholder value enhancement, and shareholder return policies.

In the social sector, the report introduces efforts such as ▲creating a good working environment ▲practicing human rights management ▲safety and health management initiatives. In the environmental sector, it includes ▲preserving natural ecosystems through projects like Gwangya Forest creation ▲environmental management corporate culture ▲resource saving and waste reduction. Due to these efforts, SM joined the United Nations Global Compact sustainability initiative and obtained ISO 14001 certification, an international standard for environmental management. SM will continue to set specific goals for ESG management and steadily implement them to practice sound and transparent social values.

Jang Cheol-hyuk, CEO of SM, stated, "We will prepare for a sustainable future through new challenges and innovation," adding, "We will firmly establish ourselves as a global entertainment company that realizes the benefits of shareholders, artists, fans, and employees alike."

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