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Sustainability

SK Square aims to become a sustainable investment company based on ESG management.

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

  • SK Square reviews and approves company-wide climate change countermeasures and strategic directions through the ESG Committee under the BOD.
  • The ESG Committee manages and oversees the performance of the company’s response to environmental issues, which includes its climate change strategies.
  • The ESG committee is held regularly. It has an efficient climate change response process, including deliberation of climate change-related agendas that have been proposed through discussions with the management and the working-level consultative body.
  • In order to respond to climate change in a practical and effective way, SK Square evaluates the management's performance by environmental factors, including climate change strategy.

Climate Change Response Process

  • Manager
  • ESG Working-level Consultative Body
  • Management (Executive in Charge)
  • ESG Committee

The BOD Discussions on Climate Change Response

Net-Zero 2040

  • 2040 Carbon Neutral Implementation Plan

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.

Strategy (climate change risks /
opportunities and business impacts)

Risks
Physical risks Transitional risks
Short-term (until 2024)
  • Increased costs from damage to worksites due to extreme weather conditions such as heat waves, fires, floods, and water shortages
  • Increased additional costs due to the purchase of electric vehicles and renewable energy
  • When there is negative feedback from various stakeholders on the response to climate change, the corporate value (stock price) declines, and the response cost increases
Mid-to-long-term (2025-2040)
  • Cost keeps increasing due to the transition to renewable energy purchases
  • Tightening of domestic and foreign eco-friendly regulations
  • The cost of environmental management support and upgrading for investment portfolios increases
Opportunities
  • Corporate value and profits increase with customer trust reinforced by participation in global initiatives
  • Investment profit increases by securing an eco-friendly business portfolio and increasing its value
Category Short-term (until 2024) Mid-to-long-term (2025-2040)
Risks Physical risks
  • Increased costs from damage to worksites due to extreme weather conditions such as heat waves, fires, floods, and water shortages
Transitional risks
  • Increased additional costs due to the purchase of electric vehicles and renewable energy
  • When there is negative feedback from various stakeholders on the response to climate change, the corporate value (stock price) declines, and the response cost increases
  • Cost keeps increasing due to the transition to renewable energy purchases
  • Tightening of domestic and foreign eco-friendly regulations
  • The cost of environmental management support and upgrading for investment portfolios increases
Opportunities
  • Corporate value and profits increase with customer trust reinforced by participation in global initiatives
  • Investment profit increases by securing an eco-friendly business portfolio and increasing its value

Risk Management (company-wide risk identification and management process)

  1. Identify
    • Identify climate impact risks / opportunities
    • Classified by risk area
  2. Evaluate
    • Business impact and financial assessment
    • Assessing the impact of risk management aspects
  3. Manage
    • Establishment, implementation, management, and supervision of measures to respond to climate change
    • Monitoring risk factors