SK Square

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 AI and semiconductors. 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 [AI AI infrastructure that removes bottlenecks and unlocks future growth] Semiconductor Semiconductor value chain]

Roadmap for Expanding Responsible ESG Investment

2026~2028 Strengthen monitoring of ESG investment performance 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

Investment Decisionmaking
1. Investment Committee - Conduct a comprehensive review of investment suitability from the ESG perspective
  1. Investment Target Identification
  2. Investment Suitability Review - Conduct ESG Due Diligence(ESG Checklist), Reviewing Internal Carbon Pricing
2. Board of Directors - Make investment decisions that incorporate ESG factors(Final Investment Decision)
Postinvestment Management
1. ESG Committee - Strengthen transparency through post-investment oversight of responsible ESG investment(Monitoring of Responsible ESG Investment Performance and Processes)

ESG Checklist-based Investment Execution Performance

Percentage of ESG Checklist-based Investments
Unit	%
2022	0
2023	0
2024	0

Category	Unit	2022	2023	2024
Percentage of ESG Checklist-based Investments	%	0	0	0

Sustainability