Transition to Eco-Friendly Business Portfolio
Targeting Corporate Value of 10 Trillion Won by 2030
[Asia Economy Reporter Choi Seoyoon] SK Gas announced on the 28th that it has published its first "Task Force on Climate Related Financial Disclosures (TCFD) report."
TCFD is an international task force established in 2015 by the Financial Stability Board (FSB) of the Bank for International Settlements (BIS) at the request of the Group of Twenty (G20) to promote voluntary and consistent climate-related financial disclosures. It recommends that companies identify risks and opportunities related to climate change, incorporate them into risk management systems and strategies, quantify the expected financial impacts, and disclose them externally.
This report contains various information according to the globally trusted disclosure framework TCFD, including SK Gas's climate change response governance, greenhouse gas reduction strategies corresponding to Scope 1, 2, and 3 throughout the entire business process, and financial impact analysis.
According to the report, SK Gas has established a board-centered climate change response governance. The ESG Committee under the board oversees the company's mid- to long-term climate change management strategies and ESG management activities. The Personnel Committee also reviews and evaluates compensation plans by reflecting ESG performance in executive performance, thereby strengthening the climate change response system. An integrated enterprise-wide risk management system for climate change is also in place.
SK Gas has developed specific response strategies based on climate change scenarios and established a net zero roadmap. The mid-term strategy is "Net Zero Operation." By setting "2030 Net Zero," SK Gas has firmly committed to climate change response. To reduce Scope 1 emissions, SK Gas plans to reduce LPG usage by introducing seawater heat exchangers and electric heaters at LPG storage bases. To reduce Scope 2 emissions, it aims to lower greenhouse gases caused by electric heater power consumption through PPA procurement, achieving net zero through RE100 implementation.
The long-term strategy is "Net Zero Solution Provider." SK Gas plans to expand its low-carbon energy LNG business and transition its business portfolio to focus on zero-carbon energy such as hydrogen and ammonia. According to the financial impact analysis, SK Gas is expected to achieve a pre-tax profit of 500 billion KRW in 2026 and 1 trillion KRW in 2030 through the transition to an eco-friendly business portfolio, growing into a company with a corporate value of 10 trillion KRW.
In this report, SK Gas also specified measurable indicators for achieving net zero, such as the annual LPG portfolio ratio, renewable energy transition rate, and greenhouse gas emissions. These can be found on the SK Gas website.
An SK Gas official said, "Through this report, we objectively verified that SK Gas's 'Net Zero Solution Provider' strategy enhances corporate value while aligning with the '1.5℃ scenario' (the goal to limit the average global temperature rise to within 1.5℃ above pre-industrial levels). We will actively respond to climate change by executing strategies to accelerate carbon reduction within the company and across the value chain according to our plans."
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