SK chemicals CO., LTD.
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:236K tCO2eq
ESG Focus Areas
- Climate change
- Circular economy
- Human rights
- Supply chain ESG
- Safety
- Board diversity
- Ethical management
Environmental Achievements
- Reduced GHG emission by 12% in 2023 (236K tCO2eq)
- Achieved 97% wastewater recycling rate
- Achieved Zero Waste to Landfill (ZWTL) Gold level
- Reduced Solvent Naphtha usage by 37% from 2021
- Products’ LCA performance share (91%, based on 2023 revenue)
- Introduced renewable energy at Cheongju plant and secured VPPA for Ulsan plant
Social Achievements
- Expanded local community employees’ participation to volunteering (2023 participants: 996)
- Achieved Zero Lost-Time Injuries Rate (LTIR) in all business sites
- Expanded and improved the supply chain ESG assessment
- Implemented human rights impact assessment (for employees in HQ, Ulsan plant) and mitigation action
Governance Achievements
- Received SBTi near-term target approval
- Disclosed the Board Skills Matrix (BSM) on the website
- ISO 37001 (Anti-corruption), ISO 27001 (Information security) certified
- MSCI rating upgraded from A to AA
Climate Goals & Targets
Long-term Goals:
- Achieve Scope 1&2 Net Zero by 2040
- Achieve Scope 3 Net Zero by 2050
- Replace the harmful substance, Solvent Naphtha 100% by 2050
Medium-term Goals:
- Expand green material sales ratio to 80% by 2030, 90% by 2040
- Achieve 100% Renewable Energy by 2032
- Reduce GHG emission more than 50% by 2032 vs. the base year (2021)
Short-term Goals:
- Reduce water consumption by 1.5% annually at Ulsan plant
- Maintain ZWTL Gold level
- Reduce hazardous chemicals usage (Solvent Naphtha) by 60% of 2021 level
Environmental Challenges
- Supply chain disruptions due to geopolitical risks and climate events
- Increased costs associated with climate change response and transition to renewable energy
- Intensifying competition for securing recycled materials
- Securing stable supply of recycled raw materials
Mitigation Strategies
- Developing alternative sourcing strategies and strengthening partnerships with suppliers
- Implementing Net Zero strategy and expanding renewable energy usage
- Establishing SK Shantou to secure production capacity for circular recycled materials
- Investing in eco-friendly technologies and product development
Supply Chain Management
Supplier Audits: 150 suppliers screened and evaluated in 2023, including biodiversity items
Responsible Procurement
- ESG Code of Conduct
- ESG screening of suppliers
- Support for supplier ESG improvement
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Rising average temperatures
Transition Risks
- Tighter regulations on fossil fuel use
- Rising electricity prices
- Tighter plastics regulations
Opportunities
- Reduced operating costs through energy efficiency
- Reduced carbon costs through renewable energy
- Increased sales of low-carbon products
Reporting Standards
Frameworks Used: GRI Standards (2021), SASB, TCFD, UNGC
Certifications: ISO 14001, ISO 27001, ISO 37001, ZWTL Gold
Third-party Assurance: BSI Group Korea
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
Initiatives contribute to these goals through renewable energy adoption, waste reduction, and GHG emission reduction
Sustainable Products & Innovation
- ECOTRIA CR
- SKYPET CR
- ECOTRION
- ECOZEN
Awards & Recognition
- CDP Climate Change Response and Water Management Awards
- MSCI ESG rating AA
- KCGS rating A+