■ Total social value return in 2022 recorded KRW 3,038,300 million, an increase of KRW 1,687,500 million compared to the previous year
■ The achievement led by the innovation of the Green Portfolio and the 14% reduction of carbon emissions in 3 years
On June 7, SK Innovation announced that it created 3.0383 billion KRW of social value by 2022, an increase of 125% (1.687.5 billion KRW) compared to the previous year.
Social value is measured through multiple categories, including: environmental performance that assesses the production processes of products and services related to resource consumption and environmental pollution; indirect economic contribution performance that measures employment, dividends and tax payments; and Social Performance which measures the social values created in areas such as work, shared growth, social contribution, donation and volunteering activities.
Delving into last year’s performance by sector, SK Innovation’s environmental performance reached its highest level since the start of social value measurement in 2018. It created a social value of minus KRW 851.9 billion , an improvement of 11% (KRW 107.8 billion) compared. compared to the previous year, thanks to the innovation of the Green Portfolio focused on electric vehicle (EV) batteries and battery materials and the reduction of greenhouse gases for three consecutive years. Indirect economic contribution performance reached KRW 3,726,800 million, an increase of 74% over the previous year (KRW 1,587,600 million). In terms of social performance,” it recorded KRW 163.4 billion, a decrease of 5% from the previous year (KRW 7.9 billion). In particular, this is the first time that SK Innovation’s social value performance is measured by including overseas companies in the US, China, Europe, etc., of which the total corporate value recorded 527.7 billion KRW in total.
◆ The continuous expansion of the Green Portfolio led to a 14% reduction in carbon emissions in 3 years
SK Innovation significantly improved its environmental performance by expanding its environment-related products and services for social value creation, including electric vehicle batteries, battery materials and recycled asphalt. The social value created by products and services related to the environment increased last year by 61% compared to the previous year. In addition to expanding existing core products and services, SK Innovation is also preparing for new business models by realizing a circular economy, such as plastic recycling, battery metal recycling (BMR) and recycling of lubricant waste.
The company also achieved remarkable success in reducing carbon emissions. Led by the Net Zero Council, it took forward “Operation Green” and achieved a reduction of more than 14% compared to the 2019 carbon emission baseline (12.43 million tons). Green Operation optimizes facility operations with carbon emissions in mind, prioritizes the introduction of low-carbon raw materials reflecting carbon value, and reduces carbon emissions from energy and chemical companies.
◆ New measurement of global performance and the expansion of the ESG ecosystem, including green startups
Indirect economic contribution performance increased by KRW 1,587,600 million compared to 2021, when the company began to include measuring the social values of overseas business locations in North America, Europe, China, etc. SK Innovation predicts that the performance of indirect economic contribution around 2030 will be more than double that of 2022 if the number of new employees continues to increase in line with the expansion of overseas business locations, especially batteries of electric vehicles and battery materials companies.
In terms of Social Performance, the company generated tangible results, such as strengthening mutual growth with partner companies and fostering green startups. SK Innovation has developed a business model to build a resource circulation ecosystem in plastic waste recycling technology and recycled asphalt through partnerships with small and medium enterprises. In addition, the company also discovered and fostered startups that possess environmental technologies through a program called EGG (SK + Green Startup) in collaboration with the Korean government, large corporations and venture capital for 2 consecutive years. Last year, SK Innovation nurtured a total of 45 green startups since 2019 and plans to foster 100 by 2025.
SK Innovation Vice President and CEO Kim Jun said, “We will win the trust of the market and stakeholders by continuously demonstrating our social value creation and ESG performance.” “We will accelerate the executive capacity of our ‘Carbon to Green’ financial strategy for this purpose,” he added.
[Photo]
Kim Jun, Vice President and CEO of SK Innovation, introduced SK Innovation’s green portfolio management with its drive to innovate business models during his keynote at the SK Innovation Global Forum held in San Jose, California, USA on June 2022.
