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Responsible Investment in ESG

SK Square expands its positive impact on society and the environment through investments for a sustainable future where we can grow together with its stakeholders.

Responsible ESG Investment Policy

SK Square has established concrete guidelines to ensure that all ESG aspects are considered in its investment decision-making process. Specifically, we are refining our new investee selection process to incorporate ESG risks and internal carbon pricing. To minimize ESG risks for our investees, we are also developing a subsidiary ESG risk management system, expanding its scope from ethics and information security to include environmental and social aspects. As an investment specialist, SK Square will continue to pursue various activities to promote and advance responsible ESG investments.

Investment Portfolio

SK Square is committed to achieving sustainable growth through future-oriented ESG investments that bring long-term value to our stakeholders. Our investment portfolio focuses on sectors with significant future potential, particularly semiconductors and ICT. We also strive to incorporate ESG aspects into our investment decisions to ensure responsible investment practices.

Build an innovative investment portfolio that contributes to the development of a future society [Semiconductor Semiconductor value chain poised to enjoy strong demand following the development of the up-to-the-minute industries.] [platform Future technologies that will enrich people’s lives through digital-driven innovations ]

Roadmap for Expanding Responsible ESG Investment

2023~2025 Advance and specify ESG criteria within ESG investment policy 2026~2028 SV Impact measurement and monitoring 2029~ Increase ESG Investment in phases

ESG Investment Process

SK Square prioritizes sustainability and future value in its investment decisions. The valuation of investment targets involves considering economic, ESG, and social aspects. This process is led by the Investment Committee, and the ESG Committee deliberates on these factors in ESG management. In accordance with SK Square's comprehensive and structured investment governance framework, final investment decisions are made after deliberation by the Board of Directors prior to the actual investment.

ESG Investment Decision-making Guidelines

SK Square is developing guidelines to incorporate ESG considerations into the investment target selection and decision-making process. This approach aims to create sustainable corporate value and innovate its investment portfolio. We will apply negative screening to investee selection to exclude industries with negative social and environmental impacts from our investment portfolio. In addition, we will use the ESG investment checklist in the investment deliberation process. Going forward, SK Square will continue to improve the ESG guidelines and expand their scope to facilitate forward-thinking, sustainable investments.

ESG Investment Decision-making Process

  1. Identify investment targets
  2. Review investment adequacy
  3. ESG investment review (if required) ← ESG Checklist ←
    • Environmental policy and framework Presence of an environmental management system for managing key environmental issues (Manufacturing) Environmental pollutant discharges and compliance
    • Respect for employee rights Presence of a human rights policy and grievance mechanism (Manufacturing) Occupational health and safety prevention and response processes in place
    • Respect for employee rights Ethical Management/internal audits to identify/manage unethical behavior by employees
  4. 최종 투자 의사결정

ESG Checklist-based Investment Execution Performance

Percentage of ESG Checklist-based Investments
Unit %
2022 0
2023 0
Category Unit 2022 2023
Percentage of ESG Checklist-based Investments % 0 0