SK Chemicals Advances One Level in MSCI ESG Rating... "Achieves AA Grade"

4 Consecutive Years of MSCI Rating Upgrades

SK Chemicals was selected as a member for the first time in the S&P Global Sustainability Yearbook 2024, announced by S&P Global last February. Photo by SK Chemicals

SK Chemicals has received consecutive positive evaluations from global rating agencies. In particular, its MSCI rating has shown a continuous upward trend.

On the 11th, SK Chemicals announced that it had achieved a comprehensive AA rating, one step higher than last year, in the 2023 ESG (Environmental, Social, and Governance) evaluation conducted by Morgan Stanley Capital International (MSCI).

Since 1999, MSCI has annually assessed key ESG issues for publicly listed companies worldwide, assigning ratings on a seven-level scale from CCC to AAA. The AA rating, along with the highest AAA rating, is referred to as the leader group, and only about the top 10% of global chemical companies achieve an AA rating.

Since receiving a BB rating in its first evaluation in 2020, SK Chemicals has improved its rating by one level each year?BBB in 2021 and A in 2022?recognizing its sustained ESG activities and achievements over several years.

According to the latest MSCI evaluation, SK Chemicals expanded its environmental management system to cover 92% of its business sites by obtaining ISO14001 certification at its Andong and Cheongju plants. Improvements in various pollution management indicators, such as waste recycling rates and emissions of air pollutants, also contributed to the positive assessment.

Furthermore, the company’s establishment and continuous implementation of greenhouse gas reduction targets and hazardous substance substitution plans through 2025 played a significant role in being recognized as a global ESG leader in the industry.

SK Chemicals has also been included in the DJSI Korea index for three consecutive years. The DJSI is a sustainability evaluation and investment index that comprehensively considers both economic performance and ESG achievements, published annually by S&P Global, a global financial information provider.

Notably, SK Chemicals received the highest score among domestic chemical companies and was selected as a member of the S&P Global Sustainability Yearbook 2024 for the first time, as announced by S&P Global on February 7.

Going forward, SK Chemicals plans to actively pursue management activities that incorporate non-financial factors such as environment, society, and governance, which have a significant impact on corporate value and sustainable growth potential.

Jae-Hyun Ahn, CEO of SK Chemicals, stated, "Our bold restructuring of the business portfolio to address the social issue of plastic waste and our continuous efforts to reduce carbon emissions have led to these ESG evaluation results. We will strive further to achieve meaningful outcomes across all areas of environment, society, and governance through ESG-centered management activities and decision-making."

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