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Climate Change

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*

This is an SV-promoted organization image, please refer to the following for more information. This is an SV-promoted organization image, please refer to the following for more information.
BOD
  • ESG Management Committee
  • CEO
    • Management Supporting Division
      • Sustainable Management Division
      • SV Implementation Team
        • Environmental CoE
    • Company-wide ESG Implementation Committee
    • SV meet up

*as of the end of December 2024

This table provides information on climate change governance and consists of status, organization name, education target, place, purpose, and 2023 hosting status.
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
  • (Executive directors) Lee Hojeong, Choi Sunghwan
  • (Other non-executive directors) Lee Sunghyeong
  • (Independent directors) Ha Yungwon, Im Ho, Jeong Seokwoo, Lee Moonyoung, Chai Sooil
  • Examining/analyzing strategies and key issues related to environment, social values, and company governance to pre-deliberate on major decisions of the Board of 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
  • (CEO) Lee Hojeong, (COO) Choi Sunghwan
  • (SK magic CEO) Kim Wanseong, (SK rent-a-car CEO) Hwang Ilmoon, (SK networks Service CEO) Jeon Hyeongil, etc.
  • Strengthening the ability to execute ESG strategies
  • Linking business model strategies (including subsidiaries) with ESG directions
  • Inspecting and discussing ESG activities
 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 -
  • Sharing focused SV tasks and progress for each business,
  • Sharing SV/ESG trends, discussing response measures
  • Sharing progress of stakeholder accounts
 10 meetings held
Environmental CoE** Team leaders/working-level employees in charge of SV/ ESG for each business (subsidiary), SV Implementation Team -
  • Promoting Net Zero 2040(determining reduction measures), measuring and analyzing data
  • Internalizing environmental management system for each business, and securing expertise
 3 meetings held
SV Implementation Team -
  • Working-level organization for promoting Net Zero 2040
  • Participating in and operating environment-related initiatives in Korea and overseas
  • Measuring and analyzing environmental data
 -

* Based on the organizational chart of 2023
** CoE(Committee of Experts)

The Strategy∙ESG Committee Meetings

  • 2023

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This table provides information on the current status of discussions at Strategy∙ESG Committee in 2023 and consists of the rounds, date of holding, major agenda items, and details.
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
This table provides information on the current status of discussions at Strategy∙ESG Committee in 2022 and consists of the rounds, date of holding, major agenda items, and details.
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
This table provides information on the current status of discussions at Strategy∙ESG Committee in 2021 and consists of the rounds, date of holding, major agenda items, and details.
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

  • 2023

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This table provides information on the current status of discussions at the 2023 ESG Promotion Committee and consists of the rounds, the month of the event, and the main contents.
Round Month Major Agenda
1 Feb.
  • Management of Key Subsidiary ESG Indicators
2 Apr.
  • Introduction & adoption of internal carbon pricing system
3 Jun.
  • Supplier’s ESG management strategy
  • ‘22 SV measurement in monetary terms
  • Q1 Groupwide key ESG metrics
4 Aug.
  • Correlation between strategy, ESG assessment, and corporate value
  • Analysis of physical risks from climate change
5 Nov.
  • 2023 performance and outlook for key ESG indicators of the group and its subsidiaries
  • Integration of the investment process and ESG
This table provides information on the current status of discussions at the 2022 ESG Promotion Committee and consists of the rounds, the month of the event, and the main contents.
Round Month Major Agenda
1 Jan.
  • Plans to join SBTi
2 Feb.
  • Major ESG developments - 10 ESG trends in 2022 by MSCI, Blackrock’s Annual Letter, introduction of the Framework Act on Carbon Neutrality
  • Defining ESG KPIs per organization (reduction of carbon emissions)
3 Mar.
  • ESG Trends - Draft of the EU Directive on Corporate Sustainability Due Diligence, EU’s accelerated efforts to secure renewable energy, new government’s carbon neutrality policy directions
4 Apr.
  • ESG Trends - Mandatory SEC climate disclosure, draft of IFRS-ISSB sustainability disclosure standards, amendment of the EU’s Carbon Border Adjustment Mechanism (CBAM)
5 May.
  • ESG enhancement support program for partner companies
  • ESG Trends - Policy proposal for KSSB sustainability disclosure standards, alternative food which is receiving attention as the food of the future
6 Jun.
  • Progress of Walkerhill’s ESG strategic tasks (measures to reduce waste and increase recycling rate)
7 Jul.
  • ESG Signpost - Group’s key indicators, carbon emission reduction, transition to EV
  • Status of participation in Korea’s TCFD Alliance
8 Aug.
  • ESG Signpost - Group's key indicators, carbon emissions reduction, transition to EV
  • ESG Trends - Launching the Valuing Water Finances Initiative (VWFI), confederacy and alliance of global EV charging stations, Enforcement of the US IRA (Inflation Reduction Act), Alternative protein poses the best climate initiative investment opportunity
9 Sep.
  • ESG Signpost - Group’s key indexes, carbon emissions reduction, EV transition
  • Group’s key ESG indexes in 2Q
10 Oct.
  • ESG Signpost - Group’s key indexes, carbon emissions reduction, EV transition
  • Strategy to improve Group’s key ESG indexes
11 Nov.
  • ESG Signpost - Group’s key indexes, carbon emissions reduction, EV transition
  • Major ESG developments - Samsung Electronics’ entry into RE100, launch of COP27
  • Report on 2022 Group’s key ESG indexes published
  • [Expert Lecture] Changing World & Global Perspective
This table provides information on the current status of discussions at the 2022 ESG Promotion Committee and consists of the rounds, the month of the event, and the main contents.
Round Month Major Agenda
1 Aug.
  • Joining global initiatives (introduction of and discussion about joining SBTi, ZWTL, EV100 and WWF PACT)
  • Introduction of and response measures to the EU’s Carbon Border Adjustment Mechanism.
2 Sep.
  • ESG Performance Report for Q2 2021
  • Sharing of SK Networks environment consulting results

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)

This is an image of greenhouse gas emissions and Net Zero 2040 scenario. See below for more information. This is an image of greenhouse gas emissions and Net Zero 2040 scenario. See below for more information.
  • 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.

Business coverage: 8 companies (including second-tier subsidiaries)

- SK Networks, SK Networks service, SK Magic, SK Magic service, SK Rent-a-car, SK Rent-a-car service, MINTIT, cartini

Application of SBTi 1.5°C scenario criteria (annual reduction of more than 4.2%)

- 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

Greenhouse gas reduction strategies are implemented through various measures including fuel conversion, transition of business vehicles to EV, energy efficiency improvement/facility investment, use of renewable energy and new technology development.

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

This is a 2040 RE100 Roadmap image. Please refer to the following for more information. This is a 2040 RE100 Roadmap image. Please refer to the following for more information.
2040 RE100 Roadmap(Green premium, PPA, Solar power)
  • 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