SK Innovation releases the “2022 Net Zero Special Report”: Determined to lead the transition to Net Zero by promoting Scope 3 carbon reduction and contribute to Avoided Emissions
2022.09.01

■ SK Innovation published “One Step Closer to Net Zero,” the second Net Zero special report, on August 31

■ “Beyond Net Zero” strategy combines the company’s contribution to global carbon reduction with its efforts to reduce Scope 1, 2, 3 emissions

■ Head of ESG Development Office, “the Report reflects the demands of major stakeholders that require companies to establish our goals scientifically and execute them systematically.”

 

SK Innovation published the “2022 Net Zero Special Report” that contains the company’s determination to reduce global carbon emissions as well as specific reduction goals for the Scope 3 emissions on the company’s website (Korean: http://skinnovation.com, English: http://eng.skinnovation.com/) on the 31st. The key strategy emphasized in this year’s special report is the “Beyond Net Zero”.

 

An SK Innovation official explained, “Last year, the company announced the Net Zero promotion plan on Scope 1, 2, and 3 greenhouse gas (GHG) emissions by releasing the first report specified in Net Zero published in Korea.” He added, “This year’s report, which is titled ‘One Step Closer to Net Zero’, comprehensively reflects SK Innovation’s accomplishments in GHG reduction for the past 2 years and its ambition to continuously pursue Net Zero targets with higher standards.”

 

The “Beyond Net Zero” strategy aims to expand the company’s contribution to global carbon reduction (Avoided Emissions) in addition to its endeavors to accomplish zero GHG emissions.

 

To execute its goal, SK Innovation has innovated its ‘Carbon to Green’ business model and portfolio strategy for the reduction of not only the GHG emissions produced from its business sites (Scope 1 and 2 emissions) but also the emissions from every step of the value chain, from raw material sourcing and transportation to sales, consumption, and disposal (Scope 3 emissions).

 

The “Net Zero Portfolio” strategy aims to promote assets increase centered on Battery/Materials businesses and Scope 3 reduction of SK Innovation and its subsidiaries. In doing so, the strategy seeks to reduce SK Innovation and the subsidiaries’ integrated Scope 3 Financial Intensity by 90%, against the 2019 baseline, by 2050. The Financial Intensity refers to the amount of Scope 3 emissions per unit of fixed assets. This goal is more ambitious than the goal of 75% reduction by 2050, set in last year’s Net Zero Special Report, and the reduction methodology has become more concrete.

 

Furthermore, through the expansion of its green products and services, SK Innovation plans to separately measure its contributions to Avoided Emissions and expand such efforts.

 

The Avoided Emissions refer to the comparative emission reductions by introducing and supplying green products and services to replace existing ones. For example, in the case of jet fuel, using Sustainable Aviation Fuel (SAF) produced from bio-based raw materials, such as Used Cooking Oil (UCO), emits significantly lower carbon compared to using the existing fuel from refineries.

 

The Avoided Emissions refer to the comparative emission reductions by introducing and supplying green products and services to replace existing ones. For example, in the case of jet fuel, using Sustainable Aviation Fuel (SAF) produced from bio-based raw materials, such as Used Cooking Oil (UCO), emits significantly lower carbon compared to using the existing fuel from refineries.

 

SK Innovation’s reduction in GHG emissions produced from the company and its subsidiaries’ value chains, in addition to the precise measurement of Avoided Emissions and the establishment of a comprehensive goal, is not only an unprecedented step among Korean companies, but also a pioneering step in a global context.

 

Combining all the efforts towards global Net Zero, SK Innovation expects to make a positive contribution to entering the stage of “Beyond Net Zero” from the early 2040s onwards, in which the company’s overall positive effect on eco-friendliness exceeds the remaining amount of GHG emissions.

 

Meanwhile, SK Innovation is striving to systematically reduce Scope 1 and 2 GHG emissions, following the reduction plan established and announced last year. As a result, the company announced that it has achieved about 1.5 million tons of GHG reduction compared to that of 2019. This reduction of more than 10% is the result of SK Innovation’s continuous and systematic effort for the GHG reduction.

 

Kwon Young-su, Head of SK Innovation’s ESG Development Office, emphasized, “The ‘Beyond Net Zero’ strategy, announced in this Net Zero Special Report, reflects the demands of our major stakeholders that require companies to establish our goals scientifically and execute them systematically.” He continued, “SK Innovation will continuously share its journey to accomplish Net Zero with external parties.”

 

Click here to download the English report.

 

[Photos]

 

(Photo 1) Cover of the “2022 Net Zero Special Report”

 

 

(Photo 2, 3) SK Innovation members introduce the “2022 Net Zero Special Report”

 

 

 

Author | SKinno News