- Financial story upgrade through ESG management reinforcement… 5 consecutive years publishing the Sustainability Report since 2018.
- MINTIT contributes to the promotion of social, environmental values with 1 million used mobile phones traded a year.
Ecofriendly business model expansions in progress such as SK rent-a-car’s conversion to EV and SK magic’s Green Collection.
- “Customer and social values will be enhanced through ESG-based decision-making, and the development of new investment areas”
SK networks has created value worth more than KRW 25 billion in environmental terms last year following the continued efforts to reinforce sustainability across business areas including its affiliates and communicate with customers on ecofriendly management.
SK networks (President: Sang Kyu Park) announced that the 2021 Sustainability Report was published and released on its official website (www.sknetworks.co.kr) in which financial achievements and details of ESG (Environmental, social and governance) management can be found. This report focuses on major achievements from last year and also includes various activities that have been in progress until the first half of this year.
According to the report, social value created by SK networks in 2021 is worth a total of KRW 278.6 billion including indirect economic contribution performance such as employment, dividend payout and tax payment. In particular, value created for environmental performance amounted to KRW 25.2 billion. Despite the many social challenges including the prolonged COVID-19 pandemic, the company succeeded in raising the environmental value by 30% year-on-year.
In this regard, MINTIT collected 1 million used phones last year and created an environmental value worth KRW 22.4 billion through mobile phone recycling, which breaks down into KRW 21.2 billion for cost of materials and KRW 1.2 billion for greenhouse gas costs. MINTIT also planted 4,000 seedlings in Yeouido Saetgang Ecological Park, and has continued to cooperate with international relief NGO Save the Children for 4 years in supporting children raised by their grandparents.
SK rent-a-car, in the course of transforming into an ecofriendly mobility rental company, has increased the speed of business transformation centered around EV. In addition to a plan announced to convert the Jeju branch into the largest EV complex in the country, further plans are in place to convert all vehicles in Jeju into ecofriendly ones by 2025 and expand the EV conversion to all vehicles owned by SK rent-a-car by 2030 so as to contribute to the greenhouse gas reduction.
After launching the ecofriendly brand Green Collection in July 2021, SK magic is expanding its ecofriendly product lineup such as air and water purifiers. Ecofriendly plastic materials are used for Green Collection products, and a process is established to reuse a 100% of the products in manufacturing new products without disposing of them after the rental contract is terminated. Further efforts are also being made to build solar energy facilities by, for example, installing power generators in factories that sell more than 5,000 refurbished products and to reduce carbon emissions through e-catalogue distribution.
In the case of Walkerhill, it became the first hotel in Korea to obtain ZWTL (zero waste to landfill) certification and also obtained the eco-label certification, an official certification of ecofriendly services offered by the Korea Environmental Industry & Technology Institute under the Ministry of Environment. Also, the parts business unit has launched an ECO parts business designed to process and reprocess recyclable imported car parts so that insured customers can use them at a reasonable price.
KRW 9.8 billion value was created in terms of social performance as well, recording a 40% increase year-on-year. This is an achievement resulting from investments made in on- and off-line training to develop the capabilities of SK networks people, COVID-19 vaccination leave and medical expenses offered in support of safety and health of SK networks people and increased social contribution activities of SK networks people.
SK networks is making ESG-based global investments in many different ways in order to respond with flexibility to changes in the management environment and bring the company to a higher level. Further efforts are also being made to identify new growth opportunities in the fast-growing blockchain field. In addition, in an aim to strengthen the governance structure centered around the Board of Directors (Board), three committees (HR, ESG Management and Audit committees) are installed and in operation under the Board, making efforts to continuously improve the Board’s independence, expertise and diversity.
The company plans to build a virtuous cycle structure of business and investment to ensure sustainability and enhance customer and social values based on growth and performance.
SK networks President Sang Kyu Park emphasized that “We will reinforce our business models based on ESG management and, at the same time, continue to become a positive influence to society and create sustainable values.”
[Photo caption1] Cover of 2021 Sustainability Report published by SK networks
[Photo caption2] View of SK networks Samil Building.