"Considering the Creation of Social Value Outcomes"
SK Group announced on the 4th that the environmental and social business value it created last year was approximately KRW 20.5 trillion. SK Group explained that this figure proves the result of Chairman Chey Tae-won's encouragement to advance the social value measurement system and generate related achievements.
SK stated that the total social value of its major affiliates last year was KRW 20.5566 trillion, an increase of about KRW 1.6 trillion (8.6%) compared to 2021. By detailed indicators, the 'Economic Indirect Contribution Performance (E)' was KRW 20.7775 trillion. Employment was KRW 11.6 trillion, dividends KRW 4.4 trillion, and taxes KRW 4.8 trillion. Environmental Performance (E)' was -KRW 2.7598 trillion. Environmental products and services accounted for KRW 900 billion, and environmental processes -KRW 3.6 trillion. Social Performance (S)' was KRW 2.5389 trillion. Social products and services were KRW 1.1 trillion, labor KRW 600 billion, mutual growth KRW 400 billion, and social contribution KRW 400 billion.
Chairman Chey said on the 5th anniversary of social value measurement and announcement, "We need to find various ways to increase social value creation based on the monetization measurement of social value," adding, "We must find methods in innovating existing business models."
SK attributed significance to creating KRW 1.9368 trillion in the environmental and social product and service sectors. They said the average annual growth rate reached 30%. SK Innovation created social value through products such as electric vehicle batteries from its subsidiary SK On and electric vehicle battery separators from SK IE Technology. It generated KRW 93.5 billion from a greenhouse gas emission substance replacement foaming agent and KRW 6.1 billion from recycled asphalt.
The social product and service sector surpassed KRW 1 trillion for the first time last year. It increased more than fivefold from KRW 190 billion in 2018. Compared to 2021, social value in the safety sector increased by KRW 76.8 billion, and in the healthcare sector by KRW 57.3 billion. SK Telecom created KRW 76.7 billion in social value by blocking about 105,000 crime number calls last year through its voice phishing prevention service.
SK said that 'Double Bottom Line (DBL)' management, which pursues both economic and social value simultaneously, is spreading. Thirteen partners of SK Hynix attempted monetization measurement of social value performance and were estimated to have created KRW 1.4698 trillion last year.
The SK Social Progress Credit (SPC) program, led by Chairman Chey, is also expanding to local governments. Jeollanam-do and Jeju-do have signed business agreements with SK and plan to select excellent social enterprises within the local governments and provide incentive payments linked to social value creation performance.
To advance the social value measurement standard system, SK collaborates with the global monetization measurement alliance VBA (Value Balancing Alliance). The China State-owned Assets Supervision and Administration Commission also supports this effort.
SK affiliates plan to disclose social value creation performance and formulas on their company websites and sustainability management reports starting from today.
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