SK Gas Upgraded to Integrated A+ Grade in 'ESG Evaluation'

Environmental and Social Areas A+, Governance A
Pursuing ESG Management Based on Master Plan

SK Gas announced on the 1st that it has received an integrated ‘A+’ rating in the comprehensive ESG evaluation conducted by the Korea Corporate Governance Service (KCGS).

KCGS is a leading ESG evaluation agency in Korea that annually conducts a comprehensive assessment of environmental, social, and governance management for listed companies in Korea, assigning seven grades: S, A+, A, B+, B, C, and D. The A+ rating is awarded only to companies that “faithfully establish a sustainable management system based on exemplary governance, environmental, and social standards, and have significantly low risk of shareholder value impairment due to non-financial risks.” Among the 791 companies listed on the Korea Exchange subject to this year’s evaluation, 19 companies received the A+ rating, representing the top 2.4%.

SK Gas received an integrated A+ rating by achieving A+ grades in environment and social categories and an A grade in governance this year. SK Gas’s rating was upgraded one level to A+ this year, following three consecutive years of integrated A ratings from 2020 to 2022.

SK Gas received higher evaluations in environment (E), social (S), and governance (G) compared to last year. In the environmental sector, it was highly rated for transparently disclosing climate change and carbon neutrality-related risks, opportunities, and financial impacts through the TCFD report. In the social sector, efforts to strengthen responsibility for products and services and improve safety and human rights for partner companies were recognized. In governance, SK Gas was well evaluated for enhancing board disclosures, ensuring independence, and implementing interim dividends.

SK Gas Headquarters Eco Hub in Seongnam-si, Gyeonggi Province [Photo by SK Gas]

SK Gas established an ‘ESG Master Plan’ in 2021 for full-scale ESG management. The company carefully reviews its business and management from an ESG perspective through the board of directors and the ESG committee and implements accordingly. Due to these efforts, SK Gas was recognized for its ESG management performance not only by KCGS this year but also by Morgan Stanley Capital International (MSCI), where it upgraded from an AA rating last year to an AAA rating in the ESG evaluation, gaining recognition from reputable domestic and international ESG evaluation agencies.

Woo Byung-jae, head of ESG at SK Gas, said, “We are pleased to have achieved the highest level of ESG evaluation rating as a result of prioritizing and practicing ESG management throughout all business processes,” adding, “We will continue to pursue top-level ESG management based on the ESG Master Plan and establish ourselves as a leading ESG company in name and reality.”

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