Managing Business for a Sustainable Earth
SK Networks has tweaked its business portfolio oriented towards reducing its impact on climate change with the board of directors decisions to transfer its LPG business (2017), petroleum product wholesale business (2017) and petroleum product retail business (March 2020), and withdrawal from the Australian coal business (2019). In March 2021, the ESG Management Committee composed of the CEO and five outside directors was newly launched so as to actively respond to environment-related issues including climate change, and all board of directors members have been participating in the ESG Management Committee since May 2022.
Preliminary deliberation of major decisions by reviewing and analzing strategies and matters related to environmental and social values and governance
Working-level organization for Net Zero 2040, which participates in global environment-related initiatives and measures and analyzes environmental data
Strengthening the execution of ESG strategies, aligning business model strategies with ESG directions, and internalizing ESG management through the inspection and discussion of ESG management activities
Sharing the key SV promotion tasks and the progress of each business, discussing SV/ESG trends and response methods
Promoting Net Zero 2040 (determing reduction methods), measureing and analyzing environmental data, internalizing the environmental system for each business, and securing expertise
In recognition of sustainability issues including climate change as important decision-making matters, SK Networks established the ESG Management Committee in March 2021 to facilitate decision-making over an integrated perspective. Later on, a process was set up so that matters reviewed in advance by the ESG Management Committee were subject to the final decision of the board of directors.
The ESG Management Committee deliberated and discussed issues relating to climate change two times in total in 2023.
Round | Date | Agenda Items | Description |
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1 | Mar. 9 | Approval of 2023 management plan | Strengthening drive for Net Zero 2040 (approving SBTi targets, etc.) |
6 | Sep. 18 | Reporting of ‘2022 Sustainability Report’ publication | Critical issues, ESG best cases per business line, better response to global climate disclosure requirements, etc. |
Key ESG Metrics of the Group in Q2, ‘23 | Net Zero implementation status (Reduction records in Q1 and Q2, ‘23, Scope 3 emission in ‘22, etc.) |
Round | Date | Agenda Items | Description |
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2 | Mar. 8 | Approval of the 2022 management plan | Enhancement of Net Zero 2040 execution, participation in SBTi, etc. |
3 | Apr. 28 | Development of 2022 CEO KPI | Reflection of greenhouse gas emissions and key ESG indicators |
4 | Aug. 19 | Approval of investment in the EV charging business | Contribution to greenhouse gas reduction by expanding EV charging infrastructure |
Round | Date | Agenda Items | Description |
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1 | Jun. 18 | Workshop on SK Networks’ past, present and value-up directions | Net Zero 2040 promotion (agenda) |
3 | Jul. 29 | In-kind contribution to MINTIT Biz | Expansion of environmental value creation by building a circular economy. |
Since August 2021, SK Networks has been running the company-wide ESG Promotion Committee attended by key executives including the CEO. In addition to the commission’s eight members, representatives and business unit heads of SK Networks subsidiaries also participate in the committee’s meetings to discuss issues and trends related to climate change, follow up on risks and opportunities and response measures.
The Company-wide ESG Promotion Committee deliberated and discussed issues relating to climate change four times in Q3, 2023.
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SV Manager develops enterprise climate change response strategies and work on business model innovation and management system upgrade in conformance to such strategies. SV Manager also analyzes and evaluates risks and opportunities associated with climate change, reporting to the management leadership including the CEO on issues and strategies related to climate change and other achievements.
Furthermore, SV Manager has operated the ‘SV meet up,’ a body of enterprise consultation on ESG issues, since 2020, organizing the Environmental CoE (Committee of Experts) in 2022 to accelerate carbon emission reduction efforts in line with the Net Zero 2040 declaration, bolster environmental management initiatives and foster in-house environmental experts. The 2023 Environmental CoE studied and discussed Scope 3 estimation, the TNFD (Taskforce on Nature-related Financial Disclosures), and the K-Taxonomy. The SV Meet up nurtures environmental competence by communicating Net Zero 2040 implementation status per business line and business model improvement/innovation cases informed by major climate-related risks and opportunities.
After the Net Zero 2040 declaration in June 2021, SK Networks joined SBTi in September 2022 seeking to respond to climate change and resolve environmental issues.
SK Networks, SK Networks service, SK Magic, SK Magic service, SK Rent-a-car, SK Rent-a-car service, MINTIT, cartini
Base year: 2021
Annual reduction of 4.2% during 2022-2031, and annual reduction of 6.4% during 2032-2040.
SK Networks joined SBTi in September 2022, and Near term targets and Net Zero targets have been submitted that are pending verification.
(tCO2eq) | 2023. 1Q | 2023. 2Q | 2023. 3Q | 2023. 3Q Total | |
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Scope 1 | 3,816 | 2,417 | 2,236 | 8,469 | |
Scope 2 | Region Based | 7,874 | 7,395 | 9,285 | 24,554 |
Market Based | 7,455 | 6,970 | 8,695 | 23,120 | |
Scope 1&2 | Region Based | 11,690 | 9,812 | 11,521 | 33,023 |
Market Based | 11,271 | 9,387 | 10,931 | 31,589 |
※ Green Premium & REC-reflecting Emission
In 2023, we planned to save about 691 tons of greenhouse gas emission by shifting commercial fleets to electric vehicles (EVs), replacing outdated facilities and raising energy consumption efficiency and another 2,742 tons by adopting RE100-compliant measures. Until Q3, 2023, a total of 2,559 tons were reduced, including 51 tons from EV fleet transition, 2,508 tons from RE100 compliance (1,074 tons from in-house power generation, 73 tons from exhaustion of REC in possession, and 1,361 tons from green premium). In so doing, greenhouse gas emission in terms of market-based emission was reduced to about 70% of 2023 emission target (73% on the basis of local target).
To achieve Net Zero 2040, GHG emissions are measured monthly, and reduction measures are inspected to enhance execution. The Corporate ESG Promotion Committee and Environment CoE & SV Meet-up are in place to share the achievements with the management.
With the goal of a 100% transition to renewable energy by 2040, SK Networks has established a mid to long-term roadmap based on REC purchases, third-party PPAs, and solar energy use.
(MWh) | 2023. 1Q | 2023. 2Q | 2023. 3Q | 2023. 3Q Total |
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In-house generation (solar power) |
681 | 918 | 739 | 2,338 |
Green premium | 895 | 895 | 1,172 | 2,962 |
REC | 16 | 31 | 112 | 159 |
Total consumption | 1,592 | 1,844 | 2,023 | 5,459 |
※ 2023 share of renewable energy: 9.8% (RE100 estimation standard: renewable energy use/ total electricity use)
'21 |
'22
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'23 | '24 | '25 | '26 | '27 | '28 | '29 | '30 | ||||
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2.2% | 5.0% | 9.6% | 16.3% | 24.9% | 36.8% | 53.0% | 70.3% | 84.9% | 100% |
※ Base : K-EV100
SK Networks members* are raising their awareness of the importance of the environment though mySUNI, a SK Group’s training platform, where various subjects are covered including ESG, carbon neutrality, resource circulation and hydrogen energy. These sessions are further connected to in-depth learning about eco-friendly business models.
As of 2021, each member completed 9.2 hours of environmental training
All employees completed 9.2 hours of eco-friendly training per person in 2021 and 5.8 hours per person in 2022.
* includes contract workers and excludes Walkerhill members