• Carbon neutrality / Establishment of eco-friendly circular economy ecosystem / New drug development cooperation roadmap
• Creating social value by subdividing performance and management goals into four areas

SK chemicals announced on the 23rd that it published its 12th sustainability report containing the performance of ESG (Environmental, Social, Governance) management last year.

SK chemicals (CEO Jeon Kwang-hyeon) has published a report on sustainability management performance for the past 12 consecutive years (starting in 2010) to actively communicate the company’s commitment.

This report greatly expands and reorganizes the disclosure items in accordance with the Global Guidelines for Global Reporting Initiative (GRI) for corporate sustainability reports. In particular, the detailed roadmap contains performance and future plans related to ▲the 2040 Net Zero Roadmap, ▲ the Establishment of an eco-friendly PET circular economy ecosystem, and ▲ Good Health & Well Being, which are consistent with the company’s strategic direction of its Financial Story released in March.

According to the report, its chemical business sector will reduce 50% of the projected greenhouse gas in 2030 by converting its product portfolio to low-carbon green materials and the business model to green energy, respectively, and the company aims to reduce its total amount of 1.37 million tons of greenhouse gases expected in 2040 to net zero. In addition, the company plans to use 10% of the 400,000 tons of waste PET bottles generated annually in Korea in 2025 and 20% in 2030 as raw materials for chemical recycling through its eco-friendly PET circular environment business model, which is a first in Korea. In the life science field, the company will continue to advance the specialty drug business for treating conditions of the musculoskeletal system and nervous system, which it currently dominates, while expanding its business scope to the entire biotechnology field through partnerships through Open Innovation and AI technology.

In addition, this report introduces the governance system that must be in place to create both economic and social values, and the results of the selection of important issues derived from materiality assessment, and discloses the sustainability management performance and goals in the social value sector in four categories: environment, product responsibility, labor/human rights, and shared growth.

SK chemicals generated KRW 669.5 billion in social value last year. This is an increase of 114% from the previous year’s KRW 312.3 billion. Indirect economic value, including tax payments and dividends, was KRW 496.7 billion, environmental performance was KRW 11.8 billion, and social performance was KRW 161 billion. The company’s social value has risen sharply due to the increase in tax payment due to the dividend increase and the IPO of SK bioscience and the increase in sales of products with social value. In addition, since this year, the company’s social value measurement indicators have been disclosed on the website, and efforts are being made to improve measurement transparency.

“We plan to systematically carry out ESG management, which is a hot topic in global management recently, and achieve a Financial Story through activities that increase sustainability,” said Kim Cheol-jin, head of SK chemicals Business Support Division.

Meanwhile, the ESG Committee has improved the ESG management system one step further by enacting a human rights management declaration for the continuous pursuit of happiness for members and stakeholders and establishing biodiversity policies.


# Photo Description: The cover of the sustainability report. The establishment of an eco-friendly circular economy is expressed as a circular loop image.