SK discovery Co., Ltd
Climate Impact & Sustainability Data (2021, 2022)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:49,653 tCO2e (2021)
Scope 1 Emissions:28,494 tCO2e (2021)
Scope 2 Emissions:21,159 tCO2e (2021)
Renewable Energy Share:0.96% (2021)
Waste Generated:0.83 tons (2021)
ESG Focus Areas
- Governance
- Environmental
- Social
Environmental Achievements
- Improved recycling rates at SK chemicals' Ulsan plant from 70% to 94%
- SK chemicals' Ulsan Green Chemical plant received 'Zero Waste To Landfill (ZWTL)' Silver certification from UL Solutions.
- SK D&D aims for 100% green building certification for new commercial and residential buildings.
- Zero incidents of environmental accidents and legal risks.
Social Achievements
- Established a Happiness Management System to evaluate employee growth, satisfaction, and safety.
- Implemented social contribution programs aligned with subsidiaries' business areas.
- No discrimination in recruitment and promotions based on gender, disability, sexual orientation, age, race, place of origin, or education.
- Operates various social wellness programs for employees.
Governance Achievements
- Appointed diverse outside directors with expertise and independence.
- Established Board committees (Nomination and Compensation Committee, ESG Committee, Audit Committee).
- Implemented Board-centered management.
- Established a Code of Ethics and Ethical Management Guidelines.
- Appointed a Chief Compliance Officer.
Climate Goals & Targets
Long-term Goals:
- Net Zero emissions by 2035
Medium-term Goals:
- Achieve 50% recycled materials sales by 2025, 100% by 2030
- Achieve Net Zero by 2035
Short-term Goals:
- Reduce water consumption
- Increase recycled materials sales
Environmental Challenges
- Climate change risks (extreme weather, resource depletion)
- Water risks (physical water stress and water quality risk)
- Supply chain ESG challenges
- Human rights risks
Mitigation Strategies
- Developing and implementing environmental management strategies and objectives (reducing greenhouse gas emissions, saving and recycling water, reducing waste)
- Strengthening green supply chain capabilities through purchase agreements that assess environmental impacts
- Establishing a human rights management system and processes to prevent, mitigate, and relieve human rights infringements
- Implementing ESG risk management guidelines
Supply Chain Management
Responsible Procurement
- Purchase agreements assessing environmental impacts
- Green purchasing and partnerships
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Drought
- Floods
Transition Risks
- Changes in energy policy
Opportunities
- Development of green technologies and businesses
Reporting Standards
Frameworks Used: GRI, SASB, TCFD, UN SDGs
Certifications: UL Solutions ZWTL Silver
UN Sustainable Development Goals
- Goal 1
- Goal 3
- Goal 4
- Goal 5
- Goal 6
- Goal 7
- Goal 8
- Goal 9
- Goal 10
- Goal 11
- Goal 12
- Goal 13
- Goal 14
- Goal 15
- Goal 16
- Goal 17
Initiatives contribute to these goals through various programs and activities.
Sustainable Products & Innovation
- Eco-friendly materials
- Recycled products
Awards & Recognition
- KCGS Integrated Evaluation
- MSCI ESG Ratings
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:12,887,363 tCO2e/year (2021)
Scope 1 Emissions:28,494 tCO2e/year (2021)
Scope 2 Emissions:21,159 tCO2e/year (2021)
Scope 3 Emissions:12,837,710 tCO2e/year (2021)
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:194 tCO2e/billion KRW (Scope 3, 2021)
ESG Focus Areas
- Climate Change
Environmental Achievements
- Established Net Zero targets for Scope 1 & 2 emissions by 2030 and 2035 respectively, aligned with SBTi.
- Developed plans to achieve RE100 by 2030.
Social Achievements
- Not disclosed
Governance Achievements
- Established an ESG committee in 2021 with a focus on climate change.
- Introduced an ESG risk assessment process in 2022.
Climate Goals & Targets
Long-term Goals:
- Scope 1, 2 & 3 Net Zero by 2050
Medium-term Goals:
- Scope 1 & 2 Net Zero by 2035
Short-term Goals:
- RE100 by 2030
Environmental Challenges
- Transition risks associated with the shift away from fossil fuels (particularly for the Energy business unit).
- Physical risks from extreme weather events impacting various business units.
- Regulatory changes and market shifts related to climate change.
- EU Carbon Border Adjustment Mechanism (CBAM) impacting Materials business unit exports.
Mitigation Strategies
- Diversifying business portfolios towards low-carbon and zero-carbon energy sources (e.g., LNG, hydrogen, ammonia).
- Implementing energy efficiency measures and renewable energy adoption (RE100).
- Developing contingency plans for extreme weather events.
- Investing in climate-resilient infrastructure and technologies.
- Implementing Net Zero strategies across business units.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (e.g., typhoons, floods, heatwaves)
- Sea level rise
- Changes in precipitation patterns
Transition Risks
- Regulatory changes (e.g., carbon pricing, emissions regulations)
- Market shifts towards low-carbon alternatives
- Changes in consumer preferences
Opportunities
- Development of low-carbon and zero-carbon energy solutions
- Expansion of renewable energy business
- Growth in the circular economy
Reporting Standards
Frameworks Used: TCFD
Certifications: Null
Third-party Assurance: Third-party verification of Scope 1, 2, and 3 emissions for major subsidiaries.
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Recycled copolyester
- CR PET
- Green building materials
Awards & Recognition
- Not disclosed