Climate Change Governance System
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).
March 2021, the Strategy∙ESG 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 Strategy∙ESG Committee since May 2022.
* The committee was initially named the ESG Management Committee when established in 2021 but was renamed the Strategy and ESG Committee in August 2024.
Climate Change Governance*
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BOD
- ESG Management Committee
- CEO
- Management Supporting Division
- Sustainable Management Division
- SV Implementation Team
- Environmental CoE
- Company-wide ESG Implementation Committee
- SV meet up
- Management Supporting Division
*as of the end of December 2024
Status | Name of organization | Composition* | Members | Roles | 2023 meeting status |
---|---|---|---|---|---|
Subcommittee of the Board of Directors | Strategy∙ESG Committee | Members of the Board of Directors - 2 executive directors, 1 other non-executive director, 5 independent directors |
|
|
8 meetings held |
Corporate Management Council | Company-wide ESG Implementation Committee | CEO, Chief Operation Officer(COO), Chief Sustainability Officer(CSO), Chief Financial Officer(CFO), Head of Planning Division, Head of Finance Division, Head of HR Division, Head of Audit Division, Head of Social Value Division (Secretary), CEOs of subsidiaries and BU Leader |
|
|
5 meetings held |
Working-level Staff | SV Meetup | CEO, Chief Sustainability Officer(CSO), Social Value Division, executives/team leaders/working level employees in charge of SV/ESG for each business (subsidiary), members of Strategy Planning Team, SV Implementation Team | - |
|
10 meetings held |
Environmental CoE** | Team leaders/working-level employees in charge of SV/ ESG for each business (subsidiary), SV Implementation Team | - |
|
3 meetings held | |
SV Implementation Team | - |
|
- |
* Based on the organizational chart of 2023
** CoE(Committee of Experts)
The Strategy∙ESG Committee Meetings
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2023
close
Round | Date | Agenda Items | Description |
---|---|---|---|
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.) | ||
8 | Dec. 11 | Participation in the capital increase of SK Electlink, etc. | Contribution to greenhouse gas reduction through the expansion of EV charging infrastructure |
Round | Date | Agenda Items | Description |
---|---|---|---|
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 |
---|---|---|---|
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. |
The Company-wide ESG Implementation Committee Meetings
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2023
close
Round | Month | Major Agenda |
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1 | Feb. |
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2 | Apr. |
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3 | Jun. |
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4 | Aug. |
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5 | Nov. |
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Round | Month | Major Agenda |
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1 | Jan. |
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2 | Feb. |
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3 | Mar. |
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4 | Apr. |
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5 | May. |
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6 | Jun. |
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7 | Jul. |
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8 | Aug. |
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9 | Sep. |
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10 | Oct. |
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11 | Nov. |
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Round | Month | Major Agenda |
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1 | Aug. |
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2 | Sep. |
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Net Zero 2040
After the Net Zero 2040 declaration in June 2021, SK Networks joined SBTi in September 2022 and submitted our goals. We received approval for our short-term goals and Net Zero goals through verification in August 2023. SK Networks respond to climate change and resolve environmental issues.
Scenario of GHG* Emissions and Net Zero 2040
Reduction Pathway**
(Unit: 1000 tCO2eq)
- 2021 - 45.6
- 2022 - 45.6 / 42.1***
- 2023 - 43.7 / 41.5***
- 2024 - 43.2
- 2025 - 41.3
- 2031 - 24.5(Up 46.2% Compared to 2021)
- 2035 - 13.6
- 2040 - 2.5(Up 95% Compared to 2021)
* Based on a total of 8 companies including SK Networks and subsidiaries/grandson companies
** Scope 1, 2 emissions (excluding Scope 3), Performance
*** in 2021/2022/2023 are market-based emissions.
- 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 received approval for our short-term goals and Net Zero goals
Plan for Renewable Energy Transition
With the goal of achieving 100% renewable energy transition by 2040 along with carbon neutrality, we set up a mid- to long-term roadmap based on green premium* purchases, PPAs**, and solar energy use. As of 2023, SK Networks is implementing the plan for transition to renewable energy through activities such as use of self-generating energy using solar power facilities installed in major business sites, green premium purchases
2040 RE100 Roadmap
- 2022(performance) - 10%
- 2025 - 23%
- 2030 - 41%
- 2035 - 77%
- 2040 - 100%
*A system in which a company pays additional costs to purchase electricity produced from renewable energy
** PPA (Power Purchase Agreement) : A contract in which a company signs a long∙term contract with a renewable energy power plant to purchase a certain amount of electricity