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  4. Responding to Climate Change

ESG Management

Environmental

Climate Change Response Policy

To respond to climate change, SK ecoengineering implements activities to reduce its carbon emissions based on the capabilities it has accumulated in the plant construction industry as well as its proactive business initiatives. The annual GHG reduction target is incorporated into the CEO's Key Performance Index (KPI) to raise the accountability of the leadership level for carbon-neutral management. Detailed tasks are then tied to the KPIs of individual subordinate organizations to ensure effective implementation.

GHG Reduction Targets

We analyze the sources of GHG emissions from all our sites, including the headquarters, for the purpose of reducing GHG emissions. Using the GHG emissions generated by domestic plants in 2022 as a basis, we set the 3% reduction target for 2023, and monitor the GHG emissions on a monthly basis to accomplish the reduction target.

In-house Activities for GHG Reduction

SK ecoengineering's employees have been participating in the Employee Carbon Reduction Program since 2022 as a way to internalize ESG management. The program, which features low-carbon meals, a lights-out campaign, and the use of mugs and tumblers, resulted in an average carbon reduction of 14.76 kgCO2eq per employee in 2022, exceeding the target by 123%. Out of a total of 1,447 SK ecoengineering members (as of 2022), 91% participated, collectively achieving a carbon reduction of 21tCO2eq. Employees can earn points for each activity they participate in through a carbon reduction evaluation, and can donate these points to Solar Cows, a project to install solar charging stations for children's education in Africa. In 2022, contributions from the Employee Carbon Reduction Program totaled around KRW 32 million.

Net Zero Roadmap 2040 Net Zero

SK ecoengineering has declared the “2040 Net Zero” target to respond to climate change in all business sectors and achieve company-wide carbon neutrality.
To achieve this goal, wean to reduce our estimated emissions based on sales by 0.75% to 2.0% by 2025, 4.7% annually from 2026 to 2030, and 7.5% annually from 2031.

6000 5000 4000 3000 2000 1000 0 2023(Base year) 2026 2030 2035 2040 Unit : tCO 2 eq Scope1 reduction Scope2 reduction Target emissions Estimated emissions Net Zero
2040 Net Zero's table(This table consist of Category(Emissions, Reduction), 2023, 2026, 2030, 2035, 2040)
Category 2023 2026 2030 2035 2040
Emissions Estimated emissions 5,334 4,090 5,011 5,011 5,011
Target emissions 5,334 3,816 3,733 1,867 0
Scope1 646 340 141 141 -
Scope2 4,688 3,475 3,593 1,726 -
Reduction Total reduction 274 1,278 3,144 5,011
Scope1 150 461 461 601
Introduction of electric vehicles 52 158 158 158
Hydrogenation of construction equipment - - - 141
Electrification of project sites 99 303 303 303
Scope2 124 817 2,684 4,410
Green price purchases 138 862 2,729 4,455
Increase in electricity consumption due to replacing with electric vehicles -14 -45 -45 -45