SK Innovation Upgraded to 'A+' in Comprehensive ESG Evaluation by Korea ESG Standards Institute

SK Innovation announced on the 30th that it received an 'A+' grade in the comprehensive ESG (Environmental, Social, and Governance) evaluation conducted by the Korea Corporate Governance Service (KCGS), a leading ESG evaluation institution in Korea.

KCGS awards the comprehensive ESG evaluation A+ grade only to companies that, according to ESG best practice standards, have thoroughly established a sustainable management system as outlined in governance, environmental, and social best practices, and have minimal risk of shareholder value damage due to non-financial risks. Among the 791 companies listed on the Korea Stock Exchange evaluated this year, only 19 companies, representing 2.4%, received the A+ grade.

KCGS uniquely establishes and announces ESG best practice standards in Korea, providing future-oriented directions for governance and social responsibility management so that domestic companies can gain trust both domestically and internationally.

SK Innovation maintained its A+ grade in the Social and Governance areas for the second consecutive year through continuous innovation in each ESG sector and also achieved an A grade in the Environmental area.

SK Innovation stated that the rise in its comprehensive ESG evaluation grade reflects the internalization efforts of ESG management within the SK Innovation group. Through its ESG report (Sustainability Management Report), SK Innovation discloses its ESG management strategy called the 'G.R.O.W.T.H system' along with annual performance, goals, and implementation plans for each mid- to long-term core task.

The G.R.O.W.T.H system is a concrete methodology for executing SK Innovation’s financial story. It incorporates SK Innovation’s core objectives, including pursuing net zero through the 'Carbon to Green' innovation strategy (Green Innovation·Road to Net Zero), strengthening safety, health, and environment (SHE) as the foundation for sustainable growth and securing stakeholder trust (Outstanding SHE Management·Winning the Trust), and the ultimate goal of stakeholder happiness (Together with Society·Happiness for all).

In particular, SK Innovation received high marks for strengthening board-centered management by securing independence and diversity in the governance area. For two consecutive years, SK Innovation’s board appointed an outside director as the chairperson and newly appointed two female outside directors, increasing the number of outside directors by one. As a result, the proportion of outside directors on the board increased from 71.4% to 75%, and the ratio of female directors rose from 14.3% to 37.5%.

Woo Sang-hoon, Head of ESG Promotion at SK Innovation, said, "Receiving the A+ grade in the comprehensive ESG evaluation is recognition from the market of SK Innovation’s continuous ESG management efforts. We will continue to internalize ESG management and transparently disclose our performance to secure trust from external stakeholders."

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