- Publishing ‘the 2020 Sustainable Management Report’ describing ESG management activities and outcomes
- Creating KRW 315.8 billion in social values last year… “vowing to upgrade measurement metrics and setting higher standards for sustainable management”
- Announcing a direct carbon footprint reduction and business model transition plan in support of the ‘Net-Zero 2040’ manifesto
- “Will step on the gas for ESG management for higher sustainability and better happiness”

Having created social values worth KRW 315.8 billion in its business operations in 2020, SK Networks is putting more gas in support of ESG management around green initiatives, declaring a commitment to ‘Net-Zero 2040’.

SK networks announced on the 9th that the company published and posted on its website the 2020 Sustainable Management Report stating last year’s key corporate initiatives and outcomes per E (environment), S (society) and G (governance) domains.

Releasing the report for 4 consecutive years, SK Networks named the ICT recycling program of MINTIT, the EV(Electric vehicles) rental service of SK rent-a-car, and the production of eco-friendly products by SK magic as key sustainable management initiatives.

In addition, SK networks revealed that the company made social achievements worth KRW 18.3 billion through business operations (product development, production, distribution) and social contributions posting an indirect contribution of KRW 297.5 billion to the national economy through employment, dividends and tax payment. The report also described a variety of activities conducted to share happiness with stakeholders.

According to available data, MINTIT, SK networks’ representative social value creation business model, created environmental value of KRW 9.4 billion by recovering 390,000 used mobile phones in 2020 with its AI (Artificial intelligence)-enabled used phone purchasing station MINTIT ATM, extending support for ICT-disadvantaged people. SK networks also posted almost KRW 1 billion in environmental contribution by improving the efficiency of mobile phone distribution/logistics operations, and launched the Mobility Bank model to lend commercial vehicles free of charge or at insignificant fees to improve the quality of life for those working for social enterprises.

Furthermore, SpeedMate reduced 28 tons of plastic waste by changing the washer fluid feeding system and SK magic adopted more product designs using eco-friendly plastic materials to deliver more environmental values.  Walkerhill Hotel’s solar power system produces electrical power enough to light up approximately 1,200 LED lamps a day and the hotel announced a transition to green hotel in April, promoting relevant programs since then.

An official at SK networks commented, “We are boosting ESG management even in the wake of the COVID-19 pandemic by innovating business models and realigning governance structure around the BOD (Board of directors),” and added, “SK networks will upgrade measurement metrics in favor of more accurate value assessment and set a new standard for sustainable corporate management.”
 
Along with the publication of the sustainable management report, SK networks announced a plan to achieve its Net-Zero aspiration by 2040 as jointly resolved at SK group level in June to be faithful to its corporate role expected in tackling climate crises.

Net-Zero means zero-increase in atmospheric GHG(Greenhouse gases) quantities as GHG emissions equal GHG absorption.

Together with its subsidiaries including SK magic, SK rent-a-car, and others, SK networks vows to reduce GHG emissions by 25% by 2030 and reach the Net-Zero destination by 2040. To that end, the company will directly reduce carbon emissions of its own by switching to low-carbon facilities as well as decreasing GHG emissions associated with its products and services offered for end users by adapting business models.

With regard to direct in-house programs, SK networks will replace fuel for boilers installed on its properties such as office buildings, manufacturing plants with hydrogen and electricity, etc.; rely more on renewable energy sources; and reduce carbon footprints of business vehicles by joining the K-EV100 initiative. In terms of business model adaptation, SK rent-a-car plans to replace all vehicles under its fleet with green vehicles such as electric vehicles, accelerating the project to deploy the Korea’s biggest EV-exclusive complex in Jeju Island. SK magic also intends to allow eco-friendly materials to account for a greater share of its product lineup and minimize waste generation to slash carbon emissions.

An official at SK networks said, “Besides phase-specific additional plans to be developed to achieve Net-Zero status by 2040, we will factor environmental factors in all our business domains and develop service models accordingly,” and emphasized, “SK networks will become more sustainable by adding more depth to its ESG management and ever more contributory to widening the breadth of happiness for SK people and a variety of stakeholders.”

[Photo] Eco-friendly products and services named by SK networks as key pillars of sustainable management: MINTIT ATM, ICT recycling service (top left); All-Clean air purifier of SK Magic adopting green materials (top right)