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 System

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.

SK Square Environmental Management Organization: Establishment of environmental management strategy; Environmental data performance management; Environmental management training for employees

ESG Committee

BOD: Deliberation of issues related to environmental management; Suggestion of directions for environmental management

Head of Investment Support Cente

Management: Discuss environmental risk issues; Discuss and discover tasks/plans for improvement

ESG promotion TF

Working-level Consultative Body: Implementation of environmental risk mitigation and remediation; Environmental management system upgrade and employee training

IR (Relevant department)
Finance (Relevant department)
Legal (Environmental management dedicated department)
PR (Relevant department)
HR (Relevant department)
CISO (Relevant department)

Awareness Improvement

SK Square operates education programs to raise employees’ awareness of environmental issues, which are increasingly important. These programs also boost organizational awareness of the necessity and importance of environmental management.

Number of participants in the environmental management education program
Unit	Person
2021	-
2022	87

Hours spent on the environmental management education program
Unit	Hour
2021	-
2022	55.1

Number of environmental management promotions and campaigns
Unit	Count
2021	-
2022	3

Category	Unit	2021	2022
Number of participants in the environmental management education program	Person	-	87
Hours spent on the environmental management education program	Hour	-	55.1
Number of environmental management promotions and campaigns	Count	-	3

Clean Tech
Investment

SK Square has established direct and indirect investment strategies for clean technology, and through this, SK Square is pursuing sustainable management in a variety of ways.

1. Direct Investment Strategy for Clean Tech

Discover investment projects that can reflect SK Square's identity, which has focused on semiconductor and ICT industries, and expand its investment scale (among eco-friendly business areas classified as 'eligible/aligned' in EU Taxonomy and K-Taxonomy)
Identify and implement tasks aimed at expanding eco-friendly investment for transition to a sustainable society, such as a low-carbon economy and carbon neutrality

2. Indirect Investment Strategy for Clean Tech

Encourage portfolio companies to develop and implement eco-friendly products and clean tech strategies such as building low-carbon systems and developing low-power & high-efficiency products to minimize environmental impact in various business sectors
Identify future growth engines and manage sustainability through investment in clean technology by portfolio companies

Roadmap for Expanding Clean Tech Investment

2023~2024 Increase indirect investment in clean technology(Supports portfolio companies to expand their eco-friendly technologies) 2025~2026 Increase the proportion of direct investment in clean technology(Setting the target proportion of investment by business classification) 2027~ Enhance direct and indirect clean technology investment strategies and goals(Supports portfolio companies to achieve their Net Zero targets)

Sustainability