SK ecoplant's climate change strategies are well aligned with its business strategies. Based on our experiences in the construction industry accumulated over the years, innovative business models, and propulsive management activities, we have restructured and transitioned our business model to an environmental business to promote a circular economy, as well as to an energy business to reduce carbon emissions. SK ecoplant has included the response to climate change as a key risk assessment factor as it pushed ahead with the business model transition.
SK ecoplant has declared the “2040 Net Zero” target to respond to climate change in all business sectors and achieve company-wide carbon neutrality. This is a challenging goal, 10 years ahead of 2050 Net Zero which is the NDC goal of Korea. In addition, we will achieve our own RE100 by converting 100% of the electricity used in our business sites into renewable energy by 2040. To achieve this goal, we are plan to reduce Scope 1 & 2 emissions by 42%, having set 2021 as base year and by 2030, in compliance with the 1.5˚C scenario and for Scope 3 emissions, we plan to reduce the priority reduction target emissions (1,675,547 tCO2eq) by 25% compared to the base year in compliance with the 2˚C or less scenario. In 2022, SK ecoplant submitted the Scope 1 & 2 and, Scope 3 emission reduction targets by 2030 to Science-based Target Initiatives (SBTi), and it has proven the reliability of its Net Zero goal by getting SBTi’s approval for the GHG reduction target in February 2023 for the first time in the same industry in Korea.
We operate the Net Zero Transition Council encompassing all business sectors to pursue company-wide carbon neutrality systematically and come up with specific implementation strategies for each business sector. In addition, we manage and supervise climate change response at the level of the Board of Directors, the highest decision-making body, and include the implementation of the annual greenhouse gas (GHG) reduction target in the CEO’s KPIs to strengthen the responsibility of leadership in managing carbon neutrality. Furthermore, for specific implementation, each specific task is linked to the subordinate organization’s KPIs.
