SK Corp. Publishes Three ESG Reports... Strengthening Management of Invested Companies

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SK Inc. announced on the 31st that it has released an ESG management report including its investment companies.

SK Inc. stated on the 31st that it has published three types of ESG reports reflecting its ESG management system: ▲Sustainability Management Report ▲Climate Change Response Report (TCFD) containing climate change risk management and strategies ▲Special Report introducing investment strategies and directions from an ESG perspective.

An SK Inc. official explained, "This move is to strengthen communication with key stakeholders such as the market ahead of the global trend toward mandatory ESG disclosures." Although ESG disclosure is still voluntary, mandatory ESG disclosure is being promoted mainly in the US and Europe, and it is expected to be gradually mandated in Korea as well.

In the Sustainability Management Report, SK Inc. introduced ESG performance along with investment status and directions by sector, and SK Inc. C&C, the SI (IT System Integration) business division, shared its mid- to long-term strategy to become the No. 1 digital ITS partner in Korea.

Compared to last year's Sustainability Management Report, which included four companies?SK Innovation, SK Telecom, SK Networks, and SKC?this year, SK Biopharm, SK IE Technology, and SK Square were added, allowing information on seven major subsidiaries to be viewed at once.

Information on the seven subsidiaries will also be reflected on the ESG online platform that SK Inc. launched last year as the first group holding company. This platform visually implements key ESG data to enhance accessibility, and SK Inc. plans to complete it as a group-level ESG platform.

Cover of SK Inc. Sustainability Management Report 2023 [Image source=SK Inc.]

The Climate Change Response Report introduced the financial impact of climate change on SK Inc.'s investment portfolio and SK Inc. C&C, along with scenario-based response strategies. The Special Report presented the ESG management system and strategic directions across the entire portfolio from the investment review stage to the exit stage, enabling external stakeholders to more easily understand the company's growth direction.

Park Dong-joo, Head of SK Inc.'s Portfolio Planning Office, said, "We will make further efforts to reflect the diverse voices of various stakeholders and be recognized as a model case of ESG not only domestically but also by global standards."

Last year, SK Inc. received the highest rating of AAA from the global ESG rating agency Morgan Stanley Capital International (MSCI). It was included in the Dow Jones Sustainability Index (DJSI) World Index for the 11th consecutive year. It also received an A+ rating for three consecutive years from the Korea ESG Standards Institute.

SK Inc., which annually measures and announces the social value it creates in monetary terms, stated through the Sustainability Management Report that it generated social values of KRW 1.4894 trillion, KRW 94.1 billion, and KRW 79.7 billion in 2022 in the three areas of economic indirect contribution, environmental performance, and social performance, respectively.

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