SK Chemicals Achieves Comprehensive 'A' Grade in MSCI ESG Evaluation, Up One Level

Top 13% in the Global Chemical Industry
Annual Grade Improvement Since 2020

[Asia Economy Reporter Choi Seoyoon] SK Chemicals announced on the 30th that it received a comprehensive 'A' grade, one level higher than the previous year, in the 2022 ESG (Environmental, Social, and Governance) evaluation conducted by Morgan Stanley Capital International (MSCI). Globally, companies that can achieve an A grade are within the top 13%.

Since its first evaluation in 2020, SK Chemicals has raised its grade by one level each year, gaining recognition for its eco-friendly initiatives. In this evaluation, SK Chemicals publicly disclosed a concrete net-zero roadmap to reduce greenhouse gas emissions in the environmental sector and continued activities to improve air, water, and waste management, such as obtaining Zero Waste to Landfill (ZWTL) certification, which contributed to the favorable assessment. In the governance sector, efforts to continuously strengthen the independence of the board by expanding the number of outside directors with expertise were acknowledged.

With this grade upgrade, it is expected that value investments in SK Chemicals will increase as many global institutions are actively expanding ESG investments.

Cover of SK Chemicals Climate Change Response Report
Photo by SK Chemicals

The MSCI ESG evaluation grade is used to determine the inclusion of over 1,500 stocks and bonds in MSCI's ESG indices. According to the Principles for Responsible Investment (PRI), a global responsible investment organization, as of 2020, 3,038 institutions participate in PRI by incorporating ESG factors into their investments, with total assets under management reaching approximately $103 trillion (about 12,700 trillion KRW). Global ESG bonds have also grown rapidly since 2014, reaching about $500 billion (approximately 620 trillion KRW) as of 2020, showing explosive growth in capital market ESG investments.

SK Chemicals plans to continue management activities that actively reflect non-financial factors such as environment, society, and governance, which have a significant impact on corporate value and sustainable growth potential.

Jaehyun Ahn, CEO of SK Chemicals, said, “We are pleased that our efforts for eco-friendly management have been recognized by global evaluation agencies, with the MSCI grade rising again this year following last year.” He added, “We will continue activities to strengthen ESG management this year as well.”

Meanwhile, SK Chemicals previously received the highest grade of A+ in the 2022 ESG evaluation and rating results for listed companies announced by the Korea Corporate Governance Service (KCGS). The A+ grade was awarded to only five companies, representing the top 0.5% among 1,033 evaluated companies. This is also a case where SK Chemicals, as a domestic chemical and pharmaceutical company, has been recognized at the highest level for ESG management.