SK Inno Created Social Value of 2.5883 Trillion Won Last Year

Employment Performance 2.7089 Trillion
Environmental Products and Services Performance Increases for 3 Consecutive Years

SK Innovation created social value worth 2.5883 trillion KRW last year.

SK Innovation announced on the 29th that while the total social value decreased by 696.8 billion KRW compared to the previous year due to a decline in business performance last year, employment among economic indirect contribution outcomes and environmental products and services among environmental outcomes continued to increase for the third consecutive year.

By category, economic indirect contribution outcomes amounted to 3.2971 trillion KRW, social outcomes 215.9 billion KRW, and environmental outcomes decreased by 924.7 billion KRW. Social value is measured by dividing it into economic indirect contribution outcomes, which measure employment, dividends, and tax payments; environmental outcomes, which evaluate environmental impacts from production processes and environmental products and services; and social outcomes, which include social fairness (labor and win-win growth), social contribution (donations and social contribution activities), and social products and services.

SK Innovation explained that social outcomes increased by 32% compared to the previous year, partially offsetting the decrease in economic indirect contribution outcomes such as tax payments and dividends caused by the decline in business performance compared to 2022, when the company recorded its highest sales and operating profit.

Economic indirect contribution outcomes decreased compared to the previous year due to reduced dividends and tax payments linked to business performance, but employment outcomes, a detailed item, expanded for the third consecutive year. With the global business expansion of electric vehicle batteries, about 3,800 new employees were hired at domestic and overseas business sites last year, creating employment outcomes worth 2.7089 trillion KRW, an increase of 471.4 billion KRW compared to the previous year. Along with this, qualitative aspects of employment were also improved through support for enhancing employee capabilities and expanding employment of people with disabilities.

Environmental outcomes decreased compared to the previous year due to factors such as expansion and increased operation of domestic and overseas factories, but the environmental products/services sector recorded 514 billion KRW, an increase of 14.9 billion KRW from the previous year, showing a rising trend for the third consecutive year. In addition to expanding sales of existing environmental products/services such as electric vehicle batteries and recycled asphalt, three new measurement items were discovered, including the use of recycled containers for lubricant products. Through this, efforts were made to reduce negative environmental impacts such as resource consumption and environmental pollution.

Lee Chun-gil, Head of the Sustainability Management Division at SK Innovation, said, "Social value is an innovation driver for sustainable corporate growth," adding, "We will strive to continuously expand social value outcomes by providing products and services that reflect stakeholders’ needs and offering a quality employment environment."