Governance
Creating Future Value through Transparent Management
SK networks has classified five first-tier subsidiaries and two second-tier subsidiaries into three groups taking into consideration their listing status, equity holding ratio, and growth stage and specified ESG management visions and targets per subsidiary group. Each subsidiary will improve their ESG management standards phase-wise by defining and achieving short to mid-term targets per ESG metric.
ESG management standards & visions of first/second-tier subsidiaries
- 1. Listed/non-listed
- - For listed subsidiaries, select extensive management metrics similar to those adopted by the parent company and improve performance on a variety of ESG metrics
- 2. Equity holding ratio (80% or higher)
- - For non-listed subsidiaries in which the parent company holds 80% or more of equity, select their ESG performance to a standard similar to that of listed subsidiaries
- 3. Growth stage (in terms of time elapsed from spin-off)
- - For new subsidiaries (two years or less from spin-off), select and manage a minimum set of essential ESG metrics and then expand the scope of ESG management step by step considering their industrial characteristics/growth level
- 4. First/second-tier subsidiaries
- - Empower first-tier subsidiaries to manage and align the ESG performance of second-tier subsidiaries to their ESG vision and targets
SK networks will check the status of listed and non-listed subsidiaries (80% or more of equity & growth stage) and encourage them to achieve short to mid-term targets and publish sustainability reports to live up to a higher ESG standard, ultimately ensuring that all first/second-tier subsidiaries reach a global top-tier level in their respective industries by 2026. To empower them to go forward, SK networks makes it a policy for executives/team leaders/working-level staff members of all business units (including first/second-tier subsidiaries) to attend the monthly SV Board meeting chaired by the CEO to report and discuss ESG performance status per business unit and share lessons learned.
Roadmap
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2022-2023
- Develop an ESG management policy for first/second-tier subsidiaries (2022)
- Monitor the ESG status of major subsidiaries, specify short to mid-term targets and perform short-term tasks
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2024-25
- Monitor the ESG status of major subsidiaries regularly and have them perform mid-term tasks to bring their ESG performance up to the SKN level (2025)
- Perform short/mid/long-term tasks aligned with the ESG level of each first/second-tier subsidiary group
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2026-
- Ensure that all first/second-tier subsidiaries reach a global top-tier level (8 subsidiaries now)
- Upgrade ESG management policies (key metrics) of first/second-tier subsidiaries (e.g., selection of subsidiary-specific indicator)
Performance/Achievement
- Convened SV board meetings engaging all BUs (including subsidiaries) since 2020 to monitor and manage the ESG performance of first/second-tier subsidiaries
- SK networks and seven first/second-tier subsidiaries announced Net Zero 2040 (2021), entered EV100 (2021), joined SBTi and submitted targets (Sep., 2022)
- SK networks and SK rent-a-car publish sustainability reports
- - SK networks discloses major achievements by SK rent-a-car and SK magic in the ESG Report section of its sustainability report
- - SK rent-a-car publishes its own sustainability report to highlight ESG performance (First edition in 2022)