SK Square

Environmental
Management

SK Square has implemented various environmental management activities based on our environmental management system to actively fulfill social and environmental responsibilities such as climate change response and GHG reduction.

Environmental Management Vision and Strategy

With the environmental management goal (ESG vision) of “achievement of sustainable growth,” SK Square has established an environmental management system to contribute to the future green transition as well as the growth of corporate value.

SK Square Mission: Promote rational management and development of its investment business, to enhance public benefits, and welfare Environmental Management Goal: “Achievement of sustainable growth through value investment that considers the future” Implementation Direction: [Achievement of carbon neutrality] | [Establishment of environmental management implementation system] | [Internalization of environmental management and strengthening of execution] Implementation Tasks: [Establishment and implementation of Net Zero and RE100 plans], [Establishment of environmental management (ESG) support system for the companies invested] | [Establishment of environmental management governance system], [Organization and operation of environmental management organization] | [Establishment and expansion of environmental management guidelines], [Expansion of education and campaign to improve employees’ awareness]

Environmental Management Policy

In order to comply with environmental laws and regulations and actively practice environmental management, SK Square has established and implemented environmental management policies that allow us to closely understand environmental impact in all business activities, such as environmental management systems, business activities, environmental information disclosure, etc. Implementing environmental management policies and performance management are reviewed and approved by the ESG Committee under the BOD, and we established business systems for each responsible organization. In addition, we continuously monitor improvements in performance management to achieve the carbon neutrality target. At the same time, we also exert efforts to improve awareness among stakeholders in and outside the company by employee education and disclosure of environmental data.

1.Environmental Management System
SK Square systematically establishes and manages the entire process from setting to planning, implementing, and improving environmental management goals in order to minimize the environmental impact of business and investment activities. SK Square ensures compliance with domestic and overseas environmental laws and regulations and supports international environmental declarations and initiatives to combat climate change.
2.Coverage
Production operations and business facilities: SK Square established environmental management implementation as a key strategy to minimize negative environmental impacts such as greenhouse gases and various pollutant emissions generated throughout production operations and business facilities. In addition, we strive to ensure that the environmental management system is implemented effectively throughout business activities. Waste Management: SK Square has established management standards for storage, transportation, and disposal to minimize waste generated from business activities and to efficiently dispose of the generated waste. We also regularly manage performance through internal monitoring and external verification. Value Chain: SK Square has defined the scope of ESG responsibilities and requirements for its vendors, service providers, contracted parties, and other major business partners in accordance with the Supplier ESG Code of Conduct. Due Diligence, M&A: SK Square conducts due diligence during mergers and acquisitions to identify potential risks involved in not meeting environmental regulations or environmental management system standards. In addition, we have established and implemented a decision-making system based on own checklist.
3.Goals
In order to actively respond to climate change, SK Square declared Net-Zero 2040, and quantitatively established annual greenhouse gas reduction targets. We will strive to achieve our reduction targets and minimize negative environmental impacts by implementing various greenhouse gas emission reduction activities.
4.Governance
SK Square discusses environmental issues and makes decisions in the ESG Committee, a committee under the BOD, to promote systematic environmental management. In addition, management of environmental data such as greenhouse gas emissions and support for environmental management practices are carried out by ESG-related department, and major risks are monitored by working-level consultative body.
5.Enhancement
SK Square creates and improves environmental performance by establishing and implementing environmental goals and mid- to long-term strategies. In addition, we improve employees' awareness of environmental management through environmental campaigns and volunteer activities.
6.Environmental Information Disclosure
SK Square is improving the reliability, transparency and effectiveness of environmental management performance by transparently disclosing environmental management policies and performance to stakeholders such as customers and members in accordance with global standards.
7.Trainings
SK Square has been operating an employee awareness improvement program to improve employees’ awareness of environmental management and encourage voluntary participation.

Biodiversity & No Deforestation Commitment

SK Square is preparing and declaring Biodiversity & No Deforestation Commitment to proactively identify risks related to biodiversity and deforestation that may occur throughout the business and minimize their impact.

Biodiversity and No Deforestation Commitment

1.Environmental Management System	SK Square systematically establishes and manages the entire process from setting to planning, implementing, and improving environmental management goals in order to minimize the environmental impact of business and investment activities. SK Square ensures compliance with domestic and overseas environmental laws and regulations and supports international environmental declarations and initiatives to combat climate change.
2.Coverage	Production operations and business facilities: SK Square established environmental management implementation as a key strategy to minimize negative environmental impacts such as greenhouse gases and various pollutant emissions generated throughout production operations and business facilities. In addition, we strive to ensure that the environmental management system is implemented effectively throughout business activities. Waste Management: SK Square has established management standards for storage, transportation, and disposal to minimize waste generated from business activities and to efficiently dispose of the generated waste. We also regularly manage performance through internal monitoring and external verification. Value Chain: SK Square has defined the scope of ESG responsibilities and requirements for its vendors, service providers, contracted parties, and other major business partners in accordance with the Supplier ESG Code of Conduct. Due Diligence, M&A: SK Square conducts due diligence during mergers and acquisitions to identify potential risks involved in not meeting environmental regulations or environmental management system standards. In addition, we have established and implemented a decision-making system based on own checklist.
3.Goals	In order to actively respond to climate change, SK Square declared Net-Zero 2040, and quantitatively established annual greenhouse gas reduction targets. We will strive to achieve our reduction targets and minimize negative environmental impacts by implementing various greenhouse gas emission reduction activities.
4.Governance	SK Square discusses environmental issues and makes decisions in the ESG Committee, a committee under the BOD, to promote systematic environmental management. In addition, management of environmental data such as greenhouse gas emissions and support for environmental management practices are carried out by ESG-related department, and major risks are monitored by working-level consultative body.
5.Enhancement	SK Square creates and improves environmental performance by establishing and implementing environmental goals and mid- to long-term strategies. In addition, we improve employees' awareness of environmental management through environmental campaigns and volunteer activities.
6.Environmental Information Disclosure	SK Square is improving the reliability, transparency and effectiveness of environmental management performance by transparently disclosing environmental management policies and performance to stakeholders such as customers and members in accordance with global standards.
7.Trainings	SK Square has been operating an employee awareness improvement program to improve employees’ awareness of environmental management and encourage voluntary participation.
Biodiversity & No Deforestation Commitment	SK Square is preparing and declaring Biodiversity & No Deforestation Commitment to proactively identify risks related to biodiversity and deforestation that may occur throughout the business and minimize their impact. Biodiversity and No Deforestation Commitment

Environmental Management Governance

SK Square discusses environmental issues and makes decisions in the ESG Committee, a committee under the BOD, to promote systematic environmental management. In addition, management of environmental data such as greenhouse gas emissions and support for environmental management practices are carried out by ESG-related department, and major risks are monitored by working-level consultative body.

ESG Committee
Head of ESG (Head of Legal & Compliance)
- ESG Task Force (TF)
- Legal & Compliance (Dedicated Environmental Management Department)
- IR (Relevant Department)
- Finance (Relevant Department)
- PR (Relevant Department)
- HR (Relevant Department)
- Strategy (Relevant Department)
- Strategic Investment Center (Relevant Department)
- Information Security (Relevant Department)

Roles and Responsibilities

Category		Key Functions
Board of Directors	ESG Committee	Review of environmental management-related agenda items Suggestion of directions for environmental management Monitor and oversee environmental performance
Management	Head of ESG (Head of Legal & Compliance)	Discuss environmental risk issues Discuss and discover tasks/plans for improvement Strengthen implementation capacity of environmental initiatives Support ESG Committee decision-making
Working-Level Council	ESG Task Force (TF)	Implementation of environmental risk mitigation and remediation Environmental management system upgrade and employee training Share outcomes of environmental initiatives
Dedicated Department	Legal & Compliance	Develop and implement environmental management strategies Deliver employee training on environmental management Manage environmental data performance and communicate with external stakeholders

Category		Key Functions
Board of Directors	ESG Committee	Review of environmental management-related agenda items Suggestion of directions for environmental management Monitor and oversee environmental performance
Management	Head of ESG (Head of Legal & Compliance)	Discuss environmental risk issues Discuss and discover tasks/plans for improvement Strengthen implementation capacity of environmental initiatives Support ESG Committee decision-making
Working-Level Council	ESG Task Force (TF)	Implementation of environmental risk mitigation and remediation Environmental management system upgrade and employee training Share outcomes of environmental initiatives
Dedicated Department	Legal & Compliance	Develop and implement environmental management strategies Deliver employee training on environmental management Manage environmental data performance and communicate with external stakeholders

Compliance with Environmental Regulations

SK Square operates a proactive monitoring system to identify and respond promptly to changes in environmental policies that may impact its business operations.
By analyzing domestic and international environmental regulations and policies,
SK Square incorporates regulatory developments into its business operations and investment decision-making processes. To maintain sustainable competitiveness amid an evolving regulatory landscape, SK Square develops forward-looking compliance strategies across its operations.

Environmental Regulatory Compliance Status

Number of Environmental Incidents
Unit	Cases
2022	0
2023	0
2024	0

Violations of Environmental Laws
Unit	Cases
2022	0
2023	0
2024	0

Category	Unit	2022	2023	2024
Number of Environmental Incidents	Cases	0	0	0
Violations of Environmental Laws	Cases	0	0	0

Awareness Improvement

To raise environmental awareness and instill the necessity and importance of environmental management across the organization, SK Square provides a range of targeted training programs. The programs cover key topics such as climate change response, resource conservation, Net-Zero, compliance with global environmental regulations, and the latest global environmental trends, all of which are designed for practical application in the workplace. In 2024, SK Square introduced a company-wide online training course—targeting all employees from operational staff to senior executives—focused on the concept, types, and real-world examples of Greenwashing, along with recent government guideline. SK Square also conducted awareness campaigns and workshops to encourage voluntary participation and action, fostering a stronger culture of environmental responsibility across the organization.

Environmental Management Internalization Training

Number of participants in the environmental management education program
Unit	Person
2022	87
2023	85
2024	86

Total hours of environmental management training programs
Unit	Hour
2022	55.1
2023	53.8
2024	30.3

Number of environmental awareness campaigns and promotional activities
Unit	Count
2022	3
2023	3
2024	4

Category	Unit	2022	2023	2024
Number of participants in the environmental management education program	Person	87	85	86
Total hours of environmental management training programs	Hour	55.1	53.8	30.3
Number of environmental awareness campaigns and promotional activities	Count	3	3	4

Clean Tech
Investment

SK Square operates a cleantech investment strategy, established to realize a sustainable future, while practicing environmental management through various means. In particular, SK Square has focused on investments in AI and semiconductor—key sectors defined as environmentally sustainable under the EU Taxonomy and
K-Taxonomy—with the aim of continuously growing its portfolio companies in these areas and plans to further expand its investments going forward. Although SK Square does not directly develop or manufacture products, it supports its portfolio companies in minimizing their environmental impact. Specifically, SK Square encourages the establishment and implementation of strategies centered on eco-friendly technologies, including the adoption of low-carbon manufacturing systems and the development of low-power, high-efficiency products.

Strategies for Investment in Clean Tech

Direct Investment Strategy
Continuously explore new business opportunities in eco-friendly technologies focused on AI and semiconductors, and strategically expand investment areas based on green taxonomy frameworks (EU Taxonomy, K-Taxonomy) that align with SK Square's investment direction. Identify and implement specific action items that can enhance both the profitability and sustainability of its green portfolio through proactive investment in key technologies that can lead the low-carbon transition and building internal capabilities.

Direct Investment Strategy

Continuously explore new business opportunities in eco-friendly technologies focused on AI and semiconductors, and strategically expand investment areas based on green taxonomy frameworks (EU Taxonomy, K-Taxonomy) that align with SK Square's investment direction.
Identify and implement specific action items that can enhance both the profitability and sustainability of its green portfolio through proactive investment in key technologies that can lead the low-carbon transition and building internal capabilities.

Indirect Investment Strategy
Support portfolio companies in establishing and implementing strategies for developing eco-friendly technologies and products to reduce environmental impacts, such as building low-carbon manufacturing systems and developing low-power, high-efficiency products. dentify future growth drivers and enhance sustainability through Clean Tech investments of portfolio companies.

Direct Investment Strategy

Continuously explore new business opportunities in eco-friendly technologies focused on AI and semiconductors, and strategically expand investment areas based on green taxonomy frameworks (EU Taxonomy, K-Taxonomy) that align with SK Square's investment direction.
Identify and implement specific action items that can enhance both the profitability and sustainability of its green portfolio through proactive investment in key technologies that can lead the low-carbon transition and building internal capabilities.

Indirect Investment Strategy

Support portfolio companies in establishing and implementing strategies for developing eco-friendly technologies and products to reduce environmental impacts, such as building low-carbon manufacturing systems and developing low-power, high-efficiency products.
Identify future growth drivers and enhance sustainability through Clean Tech investments of portfolio companies.

Roadmap for Expanding Clean Tech Investment

2023~2025 Increase indirect investment in clean technology(Supports portfolio companies to expand their eco-friendly technologies) 2026~2028 Increase the proportion of direct investment in clean technology 2029~ Enhance direct and indirect clean technology investment strategies and goals(Supports portfolio companies to achieve their Net Zero targets)

Sustainability