• Won A+ in the Total Rating of Environmental, Social, and Governance
• Governance Enhancement Initiatives Resulted in the Increase of the Rating from A to A+ in the Governance Area

SK chemicals has won the A+ rating in the comprehensive ESG (Environmental, Social, and Governance) evaluation for the third consecutive year.

SK chemicals (CEO & President Ahn Jae-hyun) announced on November 4th that it received a total rating of A+ in the 2024 ESG evaluation conducted by the Korea Institute of Corporate Governance and Sustainability (KCGS).

This achievement marks the company's third consecutive total A+ rating since its initial A+ achievement in the 2022 KCGS evaluation. Only three companies in Korea, including SK chemicals, have achieved the A+ rating for three consecutive years in the KCGS evaluation. Among these, SK chemicals stands as the sole representative from the chemical, pharmaceutical, and biotechnology sectors.

KCGS, Korea's premier ESG evaluation institution, comprehensively assesses the sustainability management of domestic listed companies using a seven-tier rating system: S (Excellent), A+ (Very Good), A (Good), B+ (Above Average), B (Average), C (Below Average), and D (Poor). To date, no company has achieved the highest S rating. This year, only 20 companies—representing the top 2.5% of 794 companies listed in the securities market among 1,066 companies evaluated—received a total A+ rating.

By specific areas, SK chemicals has elevated its governance rating from A to A+, achieving the A+ rating across all three areas: △environmental, △social, and △governance.

The company attributes this improvement in governance rating to its continuous efforts to enhance corporate governance through transparent management of the board of directors. This year's notable advancement was the appointment of a female outside director, reinforcing the board's diversity.

The evaluation also recognized SK chemicals' environmental and social initiatives, including its commitment to reducing greenhouse gas emissions with being the first Korean chemical company to acquire Science Based Targets initiative (SBTi) approval for its 2032 short-term greenhouse gas reduction target and the systematic human rights impact assessments against its employees, partners, and local communities which examined the status of human rights management and identified challenges.

SK chemicals has outlined plans to strengthen its sustainable management system further by advancing ESG practices across all sectors—environmental, social, and governance.

Kim Kee-dong, Head of Management Support Division at SK chemicals, remarked, "Our company-wide commitment to ESG management has again produced significant results this year. We will continue our efforts to become a leading sustainable enterprise, delivering enhanced environmental and social value through ESG-driven management practices and decision-making."

[Photo caption] SK chemicals won the total A+ rating in the 2024 ESG Rating by the Korea Institute of Corporate Governance and Sustainability. The image shows the ECO Lab at SK chemicals headquarters.