SKC Upgraded to 'A+' in Integrated ESG Evaluation by KCGS

Top 1.8% Achieves Highest Grade

SKC announced on the 27th that it has achieved an integrated ‘A+ (Plus)’ rating, one level higher than the previous year, in the ‘2023 ESG Management Evaluation’ released by the Korea Corporate Governance Service (KCGS).

The Korea Corporate Governance Service conducts a comprehensive evaluation of environmental, social, and governance-related management for listed companies in Korea every year, rating them across seven grades: S, A+, A, B+, B, C, and D. This year, 1,049 listed companies were evaluated, and only 19 companies, including SKC, received the A+ rating, representing the top 1.8%. The S grade has never been awarded.

This excellent evaluation grade was achieved as a result of SKC’s continuous efforts to innovate in the areas of environment, society, and governance amid rapid business model innovation, in line with its vision as a ‘Global ESG Material Solutions Company.’ With this top rating, SKC has secured a firm ESG leadership position within its industry and enhanced investor trust.

In detail, SKC improved its environmental rating by two levels from the previous year to A+, while maintaining A+ and A ratings in the social and governance categories, respectively.

Park Won-cheol, CEO of SKC [Photo by SKC]

SKC has increased its credibility by specifically disclosing environmental goals and achievements such as greenhouse gas net zero (carbon neutrality) and plastic net zero. In addition, following SK Nexilis in 2021, SK PIC Global obtained the ‘Zero Waste to Landfill (ZWTL)’ certification last year, strengthening its eco-friendly management. To promote coexistence with local communities where its production plants are located, SKC is enhancing safety and environmental facilities, establishing human rights management goals to improve employee rights, and carrying out various activities to foster mutual growth with diverse stakeholders.

Since declaring governance innovation beyond global standards in 2021, SKC has worked to expand board independence and diversity by appointing an outside director as chairperson, increasing the proportion of female directors, and introducing the Board Skills Matrix (BSM). By conducting regular board evaluations and disclosing evaluation methods, SKC has enhanced the board’s expertise and internal and external independence. Furthermore, through continuous establishment of an ethical management system, SKC obtained the international standard certification for anti-corruption management system, ‘ISO 37001,’ in March this year.

Choi Gap-ryong, Head of SKC’s ESG Promotion Division, said, “The acquisition of the KCGS A+ rating is a recognition of the results of our sustained efforts in sustainable management.” He added, “We will continue to build a company that grows by gaining stakeholders’ trust through transparent ESG management activities and ESG-based business model innovation.”