ESG Management of Subsidiaries

We create a sustainable future where people, society and the environment will coexist.

Policy

Demand for ESG management is increasing among various stakeholders, and the target is expanding to subsidiaries. In 2022, SK ecoplant established the ESG Council and the ESG management system based on the ESG business principles, which serve as an action standard for SK ecoplant’s employees. Based on internal standards, we are carrying out ESG management improvement measures with 8 subsidiaries in 2022. Headed by the ESG Executive Management Committee within the ESG Council, the Council operates a governance system to enhance ESG management of our subsidiaries. Through this system of governance, we are planning to establish and advance mid- to long-term ESG management goals and directions to manage ESG risks and create positive outcomes.

ESG Council

자회사 ESG 추진협의체에 관한 이미지 입니다.

Goal

Subsidiary ESG Management Goals

The ESG Council is promoting step-by-step activities to advance the ESG management system of subsidiaries with the goal of zero ESG risks in five key areas (compliance, human rights, safety and health, environment, and quality). All subsidiaries, including SK ecoplant, will enhance corporate value and secure sustainability in the long term through ESG management

ESG Council Mid/Long-term Operational Roadmap

ESG추진협의체 중장기 운영 목표 로드맵에 관한 이미지 입니다. 자세한 설명은 하단 내용을 참고하세요.
2022년 목표 - ESG 추진협의체 구축 주요추진사항
  • 자회사 ESG 수준진단(대상:TES, EMC)
  • 공시 자료 활용 수준진단
  • 23년 실사 계획 수립
  • 자회사별 ESG 개선과제 도출/실행
2023년 ~ 2024년 목표 - 자회사 ESG경영체계 구축 주요추진사항
  • 자회사별 ESG 경영 로드맵 수립
  • ESG DD 및 컨설팅 착수
  • ESG 경영 성과 외부 공개 (SK에코플랜트 및 자회사)
2025년 목표 - 자회사 ESG경영체계 고도화 주요추진사항
  • 상장회사: 외부 ESG 평가 최고 등급 획득
  • 비상장회사: 국내/외 동종업계 상장사 대비 ESG 최고 수준 확보

Performance

1. ESG Management Activities of Subsidiaries

1) ESG assessment

  • Identify and implement improvement tasks through ESG assessment of EMC and TES

2) Safety and health management

  • Evaluate the safety and health management system of subsidiaries on accident prevention and compliance with related laws
  • Continue to distribute safety and health guidelines based on findings from safety management consultancy
  • Support health management, such as strengthening the health management of workers working in high heat and providing protective equipment to prevent heat stroke

3) Greenhouse gas management

  • Set and manage reduction targets according to the SBTi reduction plan, focusing on subsidiaries subject to the greenhouse gas target management system and emission trading system
  • Implement reduction measures such as the application of CCU and CCUS technology
  • Conduct third-party verification of greenhouse gas emissions and disclose transparent data

4) Quality management

  • Eliminated a total of 168 risks in 2021 through the quality patrol of incineration subsidiaries
  • Provided customized support and inspection to eliminate the possibility of abnormal suspension of operations due to fire risks and equipment errors and failures
  • Identified and managed potential quality risks through quality management assessment and verification of fire and accident records of major facilities

5) Environment management

  • Eliminated a total of 80 risks in 2021 through environmental patrol
  • Reinforce compliance management and carry out customized, business-specific environment patrols for subsidiaries at all times and provide detailed diagnosis
  • Strengthen data-driven environmental due diligence verification such as water quality, gas density, and waste analysis
  • Plan to perform environmental management system assessment of subsidiaries and implement value enhancement tasks

6) Human rights management

  • Support establishment of a human rights management system, such as the establishment of human rights management policies of subsidiaries and drafting human rights policy declarations
  • Plan to identify areas of improvement and conduct related training based on assessment of labor law compliance.

7) Anti-corruption management

  • Support ‘Ethical Management Education’, ‘Ethical Management Practice Workshop’, and ‘Ethical Management Practice Survey
  • Support self-regulation of ethical management activities through self-cleaning system inspection one year after acquisition
  • Support establishment and operation of the Compliance Council and in-house compliance systems

2. Subsidiaries’ ESG disclosure

SK ecoplant has a total of 25 subsidiaries according to the K-IFRS consolidated financial statements (as of July 2022). EMC and TES are the only two companies disclosing ESG information among the eight subsidiaries, excluding landfill sites planned for construction and SPCs. Based on results of the ESG assessment of subsidiaries, we will enhance the ESG management and increase the proportion of subsidiaries that disclose ESG information.

SK ecoplant’s subsidiaries

SK ecoplant’s subsidiaries 테이블 (Company, Business, Location, Webpage)
Company Business Location Webpage
EMC Waste water treatment, incineration, and reclamation Korea https://www.emc-env.com/index.do
SAMKANG M&T Wind power plant sub-structure Korea https://www.sam-kang.com/kr2_en/index.php
TES E-waste recycling, ITAD, waste battery recycling business Singapore https://www.tes-amm.com
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