ESG Management

SK E&S is making utmost efforts to increase the value of
E (Environment), S (Social), and G (Governance) to secure corporate sustainability.
ENVIRONMENT Building a differentiated green portfolio
  • Renewable energy

    Global renewable energy player
    (with 7 GW pipelines)

  • Hydrogen

    Becoming the top global hydrogen operator based on new technologies

  • Energy solutions

    Growing into a global total energy solutions provider

  • LNG Value Chain

    Producing and supplying low-carbon LNG
    and transitioning to eco-friendly business models

  • City gas

    Securing growth engines through customer networks (connecting with new businesses such as energy solutions)

SOCIAL Expanding our unique social value models
  • Customer

    Promoting “zero” product-service safety and information security issues

  • Member

    Achieving coevolution with our employees (corporate growth and employee satisfaction)

  • Business partner

    Establishing a sustainable mutual growth system (economic growth and ESG management)

  • Local community

    Realizing local regeneration and building a social safety net by expanding the social value models

GOVERNANCE Securing premium governance by
improving external reliability
  • Governance

    Establishing the management based on the board of directors by strengthening independence, professionalism, and transparency

  • Management System

    Building a management system for improving ESG value and strengthening the executive ability of new businesses (evaluation, compensation, ESG management system, etc.)

  • Stakeholder communication

    Building and operating a communication system customized for each stakeholder
    (customers, employees, investors, business partners, local communities)

Promotion of Net Zero

SK E&S plans to sincerely promote Net Zero by checking
and updating our promotion status every year.
  • What is SK E&S’s goal for reducing greenhouse gas emissions?

    SK E&S aims to achieve “2040 Net Zero,” which involves decreasing greenhouse gas emissions from Scope 1 and 2 to zero by 2040. It is not easy to realize carbon neutrality, but SK E&S will exert great effort to decrease the emissions to 55% of the BAU greenhouse gas emission standard by 2030.
    • Business As Usual (BAU): Total amount of greenhouse gases expected to be emitted if no action is taken to reduce them
    • Scope 1 :   Greenhouse gases directly emitted during business activities
    • Scope 2 :   Greenhouse gases indirectly emitted when companies purchase energy sources during business activities
  • Reduction road map (Scope 1**+2***, BAU standard*) (Unit: 10,000 t CO2e) Reduction by 7.54 million t, which is 55% of the BAU standard

What does SK E&S do to decrease greenhouse
gas emissions?

There are two ways to reduce greenhouse gas emissions: “direct reduction” that directly decreases the gases emitted from business sites and “indirect reduction” that uses the credits externally secured through various projects and efforts. SK E&S plans to prioritize the direct reduction of greenhouse gas emissions using CCUS technology, transitioning to clean fuel, and using renewable energy. In addition, we plan to reduce the emissions remaining after direct reduction by securing certified emission reduction (CER) through global CDM* projects and large-scale afforestation projects.
What does SK E&S do to decrease greenhouse gas emissions?
Reduction Plan Description Application of the major reduction plan
-Capture, transport, and store CO2 generated from a source
-Capture, transport and utilization CO2 generated from a source
Apply to CCS in an LNG plant
Apply to CCS·CCU in the blue
hydrogen production process
Fuel transition Transition to noncarbon fuel
- Fuel used in power plants and workplaces, etc.
Transit the energy of power plants
and fuel cells to hydrogen
Transit natural gas (NG) used in
workplaces to electricity
Renewable energy
-Solar PV power generation by using sites within company campuses and direct PPA
Use of solar energy generation, etc.
in city gas companies
Offset Offset greenhouse gas emissions, which are difficult to directly reduce, by securing various certified emission reductions (CERs), etc. Generate carbon credits through
global CDMs including
development of renewable energy in developing
counties and forestation projects
  • Clean Development Mechanism (CDM)
    : This system recognizes the reduction of greenhouse gas emissions by advanced nations, which includes those from projects invested in and performed in developing nations.

Corporate Governance

To realize the value it puts into the 'happiness of stakeholders' and
strengthening ESG management, SK E&S has established transparent governance
and transparent management based on the board of directors.

Board of Directors

  • Internal Director, Chairperson
    Yu Jeongjoon Vice-Chairman & CEO of SK E&S
    • Fields and Roles ESG Committee
  • Internal Director
    Choo Hyeongwook CEO & President of SK E&S
    • Fields and Roles Future Strategy Committee
  • Internal Director
    Lim Sijong Power·LNG Business
    • Fields and Roles Future Strategy Committee
  • Internal Director
    Ahn Jinsoo Head of Management Support Division
    • Fields and Roles Personnel·Compensation
  • Non-executive Director
    Kim Moohwan Head of Green Investment Center of SK Co., Ltd.
    • Fields and Roles Future Strategy Committee,
  • Outside Director
    Lee Jeongseop
    • Fields and Roles Personnel·Compensation
      Committee, ESG Committee
  • Outside Director
    Lee Byeongnam
    • Fields and Roles Future Strategy Committee,
      ESG Committee

Organizational Chart

SK E&S's BOD is the highest decision-making body at the company.
According to the company's articles of association and the regulations on operation of the BOD
there are three committees which makes the board more professional and robust governing authority.
Board of Directors
  • Future Strategy Committee
    This committee reviews and deliberates mid- and long-term corporate strategies, annual management plans, and major strategic investments, and reviews and manages key business risk factors. It convenes once every half year, and, if necessary, it can be held anytime.
  • ESG Committee
    This committee sets the direction of corporate ESG management for building and operating a sustainable management system, and deliberates ethical management or compliance management systems and activities, major SHE activities, and risk management.
    ESG Committee basically meets on a quarterly basis and can be convened when necessary.
  • Personnel·Compensation Committee
    This committee reviews and deliberates current issues on personnel affairs, which are important for corporate management. It is held twice a year, and, if necessary, it can be held anytime.

Composition Policy

  • 01 Independence Outside directors are appointed in the board of directors.
  • 02 Transparency All directors are appointed through the resolution of the general meeting of stockholders. At least one outside director is included in each committee.
  • 03 Expertise Experts with diverse experience in various fields such as energy, climate change, human rights management, and environmental management are appointed as a director.