Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Joined RE100, aiming for 100% renewable energy by 2030.
• Reduced GHG emissions from 246,868 tCO2e in 2019 to 229,031 tCO2e in 2020.
• Improved wastewater recycling by recycling cooling tower wastewater into scrubber cleaning water.
• Introduced SiO2 dust compression facilities, reducing waste by approximately 14 tons per year.
• Improved wastewater treatment system to recycle solid waste, reducing landfill by 3,822 tons annually.

Social Achievements

• Created KRW 117.6 billion in social value in 2020 (9% increase from 2019).
• Launched the Haenggarae app to encourage employee participation in social value creation.
• Established a Mutual Growth Council with core suppliers.
• Implemented various social contribution activities supporting vulnerable groups and local communities.
• Provided job experience training for local students.

Governance Achievements

• Established a transparent and independent Board of Directors.
• Introduced a Fair Trade Compliance Program (CP).
• Established a human rights policy.
• Implemented an ethical management system based on SK Management System (SKMS).
• Completed the transition to ISO 45001 certification for occupational health and safety.

Climate Goals & Targets

Environmental Challenges

• Meeting increasing customer demands for higher quality and green products.
• Managing ESG risks and improving the ESG performance of suppliers.
• Securing the safety of employees and suppliers.
• Responding to stricter regulations on climate change and occupational safety.
• Preventing information leakage and protecting industrial technology assets.

Mitigation Strategies

• Investing in R&D to develop high-performance and green materials.
• Establishing a supplier code of conduct and implementing ESG risk assessments.
• Implementing an IoT-based process access control system and wireless gas detection system.
• Developing a long-term GHG reduction roadmap and joining RE100.
• Establishing an integrated chemicals management system and strengthening information security.

Supply Chain Management

Supplier Audits: Annual and occasional assessments of suppliers, including ESG criteria.

Responsible Procurement

• Supplier Code of Conduct based on RBA Code of Conduct Version 7.0
• Fair Trade and Mutual Growth Agreement
• Prohibition of conflict minerals
• Green purchasing and social purchasing principles.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods, heavy rain, heavy snow, earthquakes

Transition Risks

• Regulatory changes, market shifts related to low-carbon economy

Opportunities

• Development of energy-efficient products and green technologies

Reporting Standards

Frameworks Used: GRI Standards Core Option, SASB Resource Transformation Sector, Chemicals Sustainability Accounting Standard, TCFD Recommendations, UNGC 10 Principles

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Korea Management Registrar (KMR)

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 16
• Goal 17

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Low GWP cleaning gases
• Ultra-high purity hydrogen fluoride

Awards & Recognition

• Excellent Disclosure Company (KOSDAQ market)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• GHG intensity reduced by 6.8% compared to 2020
• Achieved Energy Management System Certification (ISO 50001)
• WF6 Carbon footprint measurement and reduction certification
• 2030 Net Zero Commitment announced
• Became the first company in the industrial gas industry that acquired a carbon footprint ‘measurement’ and ‘reduction’ certification for tungsten hexafluoride (WF6).

Social Achievements

• 100% implementation rate of employee happiness tasks in 2021
• Launched Haenggarae (Happier Tomorrow) app, generating a total social value impact of KRW 47 million in 2021
• Implemented several improvements to welfare and benefits provision through the influencer system
• Achieved significant improvement in WLB (Work-Life Balance) with the introduction of the bi-weekly work holiday system in 2021

Governance Achievements

• Introduced a governance charter outlining commitments to responsible management and specific practices to establish a strong, transparent governance structure in 2022
• Introduced a Fair Trade Compliance Program (CP) and appointed a Fair Trade Compliance Manager in 2020
• Recognized as a CP compliant company, certified by the Fair Trade Commission in June 2020

Climate Goals & Targets

Environmental Challenges

• Tightened domestic and foreign regulations on climate change
• Increased level of demand from investors to respond to climate change
• High standard of promoted quality, eco-friendliness, and safety
• Speedy response to technology evolution by customers
• Expanded legal and social responsibility for supplier-related ESG risks
• Insufficient supply chain ESG management level and capabilities

Mitigation Strategies

• Established mid- to long-term environmental strategies and an implementation roadmap for key tasks to achieve a ‘sustainable green company created together with stakeholders.’
• Established the SHE Management Department to act as a SHE Control Center for the entire company and our subsidiaries.
• Established an ESG risk assessment system that evaluates and manages not only environment and safety but the entire spectrum of ESG – including human rights, labor, and ethical management.
• Introduced a governance charter outlining commitments to responsible management and specific practices to establish a strong, transparent governance structure in 2022
• Introduced a Fair Trade Compliance Program (CP) and appointed a Fair Trade Compliance Manager in 2020

Supply Chain Management

Supplier Audits: 25 suppliers in 2021

Responsible Procurement

• Supplier Code of Conduct
• ESG risk assessment
• Mutual Growth Council
• Mutual growth programs
• Fair trade and mutual growth agreement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water shortage

Transition Risks

• Regulatory changes
• Low-carbon technology transitions

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards (Core Option), SASB (Sustainability Accounting Standards Board), Resource Transformation Sector, Chemicals Sustainability Accounting Standard, TCFD (Task Force on Climate-related Financial Disclosures) Recommendations, UNGC (UN Global Compact) 10 Principles, UN SDGs (Sustainability Development Goals)

Certifications: ISO 50001, ISO 45001, IATF 16949

Third-party Assurance: WITH Accounting Corporation

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 16
• Goal 17

SK specialty identifies goals that are highly relevant to its business area to actively participate in the achievement of the UN SDGs.

Sustainable Products & Innovation

• Low GWP cleaning gases
• Upcycled waste resources
• Eco-friendly raw materials
• PFTPA (Perfluoro Tripropyl Mine)