SK Gas Selected as 'Excellent Governance Company' at 'KCGS Excellence Awards' Ceremony

Korea Corporate Governance Service (KCGS) Achieves Integrated A Grade in ESG Evaluation for 3 Consecutive Years

Son Cheol-seung, Head of Strategy Center at SK Gas, is delivering his remarks on being selected as an excellent governance company at the '2022 Korea ESG Standards Excellent Companies' awards ceremony held on the 2nd at the Korea Exchange in Yeouido, Seoul. Photo by SK Gas

[Asia Economy Reporter Donghoon Jeong] SK Gas announced on the 2nd that it was selected as an ‘Excellent Governance Company’ at the 2022 'KCGS Excellent Company Awards' hosted by the Korea Corporate Governance Service (KCGS).

The Korea Corporate Governance Service is a leading ESG (Environmental, Social, Governance) evaluation agency in Korea that has conducted corporate governance evaluations annually since 2003. Since 2011, it has assessed the sustainability management levels of listed companies in Korea through ESG evaluations that include social responsibility and environmental management. This year, based on the deliberations of the ESG Rating Committee, a total of 15 companies were selected, including 1 honorary company, 7 companies in the governance category, and 7 companies in the ESG category.

SK Gas was finally selected as an excellent company in the governance category. According to the Korea Corporate Governance Service, SK Gas was recognized for its significant contribution to investor protection and the development of the capital market by establishing and operating sound governance. SK Gas also achieved an integrated A rating for three consecutive years in the ESG evaluation by the Korea Corporate Governance Service this year, receiving A grades in Environment (E), Social (S), and Governance (G) categories.

In fact, SK Gas continuously strives to build transparent and advanced governance. SK Gas operates specialized committees under the board of directors, including the ESG Committee, Personnel Committee, Audit Committee, and Outside Director Candidate Recommendation Committee. More than half of all directors, including the chairman of the board and the chairs of the four committees, are outside directors, enabling independent board operations. Last year, SK Gas appointed its first female director since its founding, enhancing diversity. In particular, while the ESG Committee oversees mid- to long-term climate change management strategies and business activities, the Personnel Committee actively incorporates ESG performance into executive compensation plans by reviewing and evaluating them, thereby establishing governance for proactive ESG management and climate change response.

SK Gas also practices an active shareholder-friendly policy through dividend execution based on clear guidelines. As announced last year, SK Gas paid dividends totaling 45.8 billion KRW, with 5,100 KRW per share, a 28% increase compared to the previous year, earlier this year. In August, following the first half-year settlement, SK Gas maximized trust with shareholders by paying an interim dividend of 1,000 KRW per share, totaling 8.9 billion KRW, as planned.

Chulseung Son, Head of Strategy Center at SK Gas, said, “It is very meaningful that SK Gas was selected as an excellent governance company at a time when ESG management is emphasized and interest and necessity for transparent corporate governance are highlighted. We will continue to listen to the voices of various external evaluation agencies, investors, and stakeholders, and through sincere ESG management efforts, strive to become a Global Leader not only in governance but across all ESG areas.”

Meanwhile, based on the ‘ESG Master Plan’ announced last year, SK Gas is actively practicing ESG management and receiving positive evaluations for its ESG performance from domestic and international evaluation agencies. This year, SK Gas also earned an ‘AA’ rating in the MSCI (Morgan Stanley Capital International) ESG evaluation. This rating is a two-step jump from last year’s ‘BBB’ rating, placing SK Gas within the top 17% globally in the refining/marketing/storage/transportation sector and among the highest levels among domestic companies.