Climate Change Response
SK Square discusses climate change response strategies with the Board of Directors and management. We manage the impact on overall management through risk and opportunity identification and response processes.
Climate Change Response
SK Square discusses climate change response strategies with the Board of Directors and management. We manage the impact on overall management through risk and opportunity identification and response processes.
Climate Change Response
Governance
Key Discussions and Roles in the Climate Change Response Governance
Climate Change Response Strategy
SK Square responds to climate change by analyzing risk and opportunity factors by period. In addition, we have established and systematically managed the climate change risk management processes.
Climate Change Risks and Opportunities
Risks
Transition risks | |
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Policy/Legal | |
Financial impact of risks and opportunities |
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Type of impact | Short/mid-term |
Response/ Action |
|
Technology | |
Financial impact of risks and opportunities |
|
Type of impact | Mid/long-term |
Response/ Action |
|
Market | |
Financial impact of risks and opportunities |
|
Type of impact | Mid/long-term |
Response/ Action |
|
Reputation | |
Financial impact of risks and opportunities |
|
Type of impact | Mid/long-term |
Response/ Action |
|
Physical risks | |
Acute | |
Financial impact of risks and opportunities |
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Type of impact | Long-term |
Response/ Action |
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Chronic | |
Financial impact of risks and opportunities |
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Type of impact | Long-term |
Response/ Action |
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Category | Financial impact of risks and opportunities | Type of impact | Response/Action | |
---|---|---|---|---|
Transition risks | Policy/Legal |
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Short/mid-term |
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Technology |
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Mid/long-term | ||
Market |
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Mid/long-term |
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Reputation |
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Mid/long-term | ||
Physical risks | Acute |
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Long-term |
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Chronic |
|
Long-term |
* In 2023, the first and third Green Premium auctions cost us KRW 5 million for 510 MWh (234 tCO2eq)
Opportunities
Resource efficiency | |
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Financial impact of risks and opportunities |
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Type of impact | Mid/long-term |
Response/ Action |
|
Products and services | |
Financial impact of risks and opportunities |
|
Type of impact | Mid/long-term |
Response/ Action |
|
Market | |
Financial impact of risks and opportunities |
|
Type of impact | Long-term |
Response/ Action |
|
Resilience | |
Financial impact of risks and opportunities |
|
Type of impact | Long-term |
Response/ Action |
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Category | Financial impact of risks and opportunities | Type of impact | Response/Action | |
---|---|---|---|---|
Opportunities | Resource efficiency |
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Mid/long-term |
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Products and services |
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Mid/long-term | ||
Market |
|
Long-term | ||
Resilience |
|
Long-term |
Risk Management Process
Integrate the climate change risk into company-wide risk management process
SK Square has established a company-wide risk management decision-making body and supporting organization to identify and proactively respond to financial and non-financial risks, and regularly conducts major agenda deliberations and risk monitoring through the Audit Committee under the BOD. In addition, climate change risk is a major non-financial risk in the environmental area, which is integrated into the company-wide risk management process to identify and manage potential financial impacts. The head of the Risk Management Council not only shares and manages company-wide risk issues, including climate change risk, by establishing countermeasures, but also supports the ESG Committee’s climate change risk monitoring and management functions to enhance risk management efficiency. In addition, climate change risk, along with other risk factors, is reflected in the annual materiality assessment process and prioritized through the priority identification process.