■ Expanding the scope of ESG management information disclosure and enhancement of trust through strengthening internal and external verification of disclosure data
■ Preemptive application of global ESG disclosure standards
■ Separate publication of the Human Rights Report, including the results of expanded human rights inspection and the members of overseas business sites
SK Innovation has revealed its 2022 ESG Report (Sustainability Management Report) on its company website (www.skinnovation.com). Since 2020, SK Innovation has expanded and published its existing sustainability reports into ESG Reports that incorporate the requirements suggested by key investors, ESG assessment agencies, civic groups, etc. This year’s report has been enhanced in aspect of the addition of annual goals and performance, the preemptive application of global disclosure standards, and the enhancement of ESG data tracking capabilities and transparency.
SK Innovation stated, “Recently, stakeholders are demanding specific goals and achievements in ESG management,” and added, “This year’s ESG Report has significantly expanded the scope of information disclosure, including annual road maps and detailed performance by key tasks, and has further strengthened internal and external verification on disclosure data, enhancing accuracy and transparency.”
| Expanding the scope of disclosure information and reinforced verification
SK Innovation has expanded the scope of information disclosed in this year’s report. While last year’s report unveiled the ESG management strategy “G.R.O.W.T.H system*” and mid-to-long-term key tasks, this year, it has added the annual performance and goals for each task, as well as execution plans. Therefore, the report enables stakeholders to verify the degree of the company’s fulfillment in ESG management.
It is also noteworthy that the company established a “Special Page” for each G.R.O.W.T.H area that genuinely conveys specific examples of major achievements through the voices of stakeholders, such as cooperative companies, members, and business partners.
(*)SK Innovation’s “G.R.O.W.T.H” system
It is the strategy that SK Innovation has established and has been promoting as a specific implementation methodology for its Financial Story. The strategy includes achieving Net Zero through “Carbon to Green” innovation (Green Innovation, Road to Net Zero), strengthening safety/health/environment (SHE), which is the foundation of sustainable growth, and winning stakeholders’ trust (Outstanding SHE Management, Winning the Trust) and the ultimate goal of shareholders’ happiness (Together with Society, Happiness for all). These are the company’s management directions reflected as core tasks.
| Preemptive application of global disclosure standards
This report by SK Innovation has been prepared in compliance with international sustainability reporting standards, such as the revised items of “GRI 2021”, TCFD*, SASB**, and other global ESG disclosure standards. In particular, the report preemptively applied newly suggested standards of industry-specific indicators (Oil & Gas Sector) and the double materiality test. The double materiality test is a method of analyzing both the impact external factors have on a company’s financial state and the effect of the company’s business activities on the outside to identify key issues in the report.
(*) TCFD (Task Force on Climate-related Financial Disclosure): Consultative group regarding the disclosure of climate-related financial information
(**) SASB (Sustainability Accounting Standards Board): Committee for sustainability-related accounting standards
On such efforts of the company, BSI Group Korea, which assessed the ESG report, shared, “SK Innovation has faithfully reflected the reporting requirements of the GRI Oil & Gas industry standard, presenting a leading example of the sustainability reports disclosed domestically and internationally.” It also stated, “The ESG data platform that SK Innovation took the initiative and established last year has ensured the reliability of data through internal and external verification, and the transparent disclosure of data is very impressive.”
| Human Rights Report, SK Innovation’s pioneering endeavor of disclosing results of human rights inspections and D&I human rights education
Meanwhile, SK Innovation has been publishing a Human Rights Report separately alongside the ESG Report since last year. In order to strengthen human rights-related risk management, which is a growing issue that has received the limelight domestically and globally, this year’s report includes the CEO’s declaration that supports international human rights standards.
SK Innovation has supplemented its content related to human rights policies by disclosing the results of human rights inspections. Not only does it include domestic members, but also employees of partner companies and overseas business sites, as well as the results of diversity and inclusion (D&I) education conducted for domestic members.
Woo Sang-hun, Head of SK Innovation’s ESG Development Office, said, “SK Innovation will continue to transparently disclose the achievements in the company’s effort of internalizing ESG management and promotion results of its Financial Story through the ESG Report and data platform to strengthen communication with stakeholders.”
[Photos] SK Innovation members are examining the 2022 ESG Report.