SK Chemicals Receives A+ Grade in ESG Evaluation from Korea ESG Standards Institute

One Step Up Compared to Last Year's Grade A

SK Chemicals Pangyo Headquarters exterior. Photo by SK Chemicals

[Asia Economy Reporter Choi Seoyoon] SK Chemicals received the highest grade of A+ from a domestic ESG evaluation institution.

SK Chemicals announced on the 7th that it obtained the highest grade A+, one step higher than last year, in the 2022 ESG evaluation and grading results for listed companies announced by the Korea Corporate Governance Service (KCGS).

The Korea Corporate Governance Service is a representative institution conducting ESG evaluations in Korea, evaluating the ESG management level of listed companies and unlisted financial companies annually and publishing the grades.

While many companies saw their grades decline due to the stricter evaluation model revised this year, SK Chemicals achieved an A+ grade, one step higher than last year. The A+ grade corresponds to the top 0.5% among 1,033 evaluated companies, indicating recognition of SK Chemicals' sustainable management.

In particular, the environmental sector, which received an A grade last year, rose one step to A+, leading the overall grade increase. The establishment of a 2040 Carbon Neutral (Net Zero) strategy and the publication of the first TCFD (Task Force on Climate-related Financial Disclosures) report, among other climate change strategies, received positive evaluations.

Additionally, the eco-transition of products to recycled and bio-based materials, the hydrogen conversion of fuels used in factories, and the installation of solar power generation, transforming the overall business environment into an eco-friendly business, were also highly evaluated.

Furthermore, efforts such as strengthening board-centered management and assigning ESG tasks to CEO and executive performance indicators resulted in achieving A+ and A in the social (S) and governance (G) sectors, respectively, the same as last year.

SK Chemicals plans to further advance ESG management for sustainable growth.

Based on the carbon neutrality strategy established this year, the company aims to join and receive approval from the Science Based Targets initiative (SBTi) next year. In addition, it will actively engage in activities to strengthen ESG management, such as establishing and implementing a human rights management system and enhancing the board's risk management role.

Jaehyun Ahn, CEO of SK Chemicals, said, “The reason SK Chemicals was able to receive the highest ESG evaluation grade of A+ is the result of the combined efforts of our members,” and added, “We will do our best to maintain the highest level of ESG management going forward.”