Climate Change Data

SK innovation

Climate Impact & Sustainability Data (2021)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:11,210,482 tCO2eq (Scope 1 & 2)
Scope 1 Emissions:9,008,825 tCO2eq
Scope 2 Emissions:2,201,669 tCO2eq
Scope 3 Emissions:118,347,000 tCO2eq
Renewable Energy Share:Not disclosed
Total Energy Consumption:44,244,570 MWh
Water Consumption:43,131,027 tons
Waste Generated:118,192 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Reducing Environmental Impact
  • Human Rights Management
  • Human Resource Management
  • Happiness Management
  • Safety, Health and Environmental Management
  • Ethical Management
  • Supply Chain ESG
  • Social Contribution
  • Customer Satisfaction Management

Environmental Achievements

  • Reduced total energy consumption by approximately 7% compared to 2020, saving KRW 2.3 billion.
  • Signed voluntary agreements to reduce air pollutant emissions in Ulsan.
  • Implemented various wastewater reclamation measures to reduce water consumption.
  • Systemically managed waste generation through a self-developed waste management system.
  • Restored 170 ha of mangrove forests in Vietnam since 2018.
  • Renewed ISO 14001 environmental management system certification.

Social Achievements

  • Conducted human rights impact assessment (self-analysis and on-site due diligence) annually.
  • Implemented various programs to improve corporate culture and employee welfare.
  • Introduced a leave system to encourage employees to take long breaks.
  • Operated Harmonia Counseling and Coaching Center to support employees’ mental health.
  • Supported female-friendly corporate culture and promoted female employment and career development.
  • Established standard workplaces for the disabled.

Governance Achievements

  • Established the Audit Office directly under the Audit Committee.
  • Introduced CPs (Compliance Programs) to support fair trade.
  • Appointed a CCO (Chief Compliance Officer) to operate CPs.
  • Strengthened internal regulations and policies on fair trade.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions for Scope 1 & 2 in energy/chemical business by 2050 and battery/material business by 2035.
  • Reduce Scope 3 emissions by 90% based on integrated financial intensity by 2050.
  • Reduce Scope 3 emissions by 70% on an absolute basis by 2050 in the energy/chemical business.
Medium-term Goals:
  • Reduce Scope 3 emissions by 75% based on financial intensity compared to 2019 by 2030.
  • Reduce Scope 3 emissions by 25% compared to 2019 in absolute quantity by 2030.
Short-term Goals:
  • Reduce Scope 1 & 2 emissions by 25% (energy/chemical) and 42% (battery/material) compared to 2019 by 2025.

Environmental Challenges

  • Supply chain disruptions due to COVID-19.
  • Growing global demand for corporate social responsibility for human rights protection.
  • Growing concern for environmental impact and human rights violations in the mining industries.
  • Increased shareholder activism and NGO activities.
  • Strengthening of mandatory disclosures on non-financial ESG information.
  • Extreme weather conditions.
Mitigation Strategies
  • Expanded human rights management to encompass global business sites.
  • Developed a self-analysis survey for overseas employees.
  • Introduced mental health support programs.
  • Enhanced supplier management protocols and enforceability of supplier assessments.
  • Introduced in-depth ESG evaluation and due diligence through a third-party specialized agency.
  • Developed and implemented a Net Zero Roadmap.
  • Incorporated climate change issues into the company-wide emergency response system.

Supply Chain Management

Supplier Audits: 81% of suppliers signed the ESG Code of Conduct in 2021; in-depth ESG evaluation of 204 core suppliers.

Responsible Procurement
  • ESG Code of Conduct for Suppliers
  • Code of Ethical Purchase
  • Guidelines for Bid Assessment
  • General Principles of Purchase

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Carbon neutrality and increase in NDC
  • Ban on sales of ICE vehicles
  • Increase in investment in recycling technologies
  • Increase in investment in CCS technologies
  • Depreciation of carbon assets
  • Increase in energy costs due to external factors like RE100
  • Strengthening of mandatory disclosures on non-financial ESG information
Opportunities
  • Expansion of CCS markets
  • Expansion of waste battery markets
  • Expansion of recycling technology markets
  • Expansion of low carbon technologies
  • Expansion of ESS markets
  • Expansion of EV markets
  • Policies on promoting green product purchase
  • Increase in corporate value by achieving reduction targets
  • Increase in reduction options due to carbon offset
  • Appreciation of green assets

Reporting Standards

Frameworks Used: UNGC, UNGP, TCFD, SASB

Certifications: ISO 14001, ISO 45001

Third-party Assurance: LRQA (Lloyd’s Register Quality Assurance)

UN Sustainable Development Goals

  • Goal 2
  • Goal 7
  • Goal 8
  • Goal 12
  • Goal 13
  • Goal 14
  • Goal 15
  • Goal 16

Initiatives contribute to these goals through environmental protection, support for socioeconomically disadvantaged groups, and contribution to local communities.

Sustainable Products & Innovation

  • Eco-friendly asphalt
  • Eco-friendly lube base oil
  • Lightweight materials for vehicles
  • Batteries/materials for electric vehicles
  • Packaging products with improved recyclability

Awards & Recognition

  • Achievement Award from Tra Vinh Province, Vietnam
  • Ranked 1st in KCSI, K-BPI, NBCI, and KS-PBI for multiple years