SK ecoplant's climate change strategies are well aligned with its business strategies. Based on the many years of experience we have accumulated in the construction industry, our innovative business models, and our propulsive management activities, we have restructured and reoriented our business model toward an environmental business model to promote a circular economy, as well as to an energy business model in order to reduce our carbon emissions. SK ecoplant included the response to climate change as a key risk assessment factor while pushing ahead with the transition to a new business model.
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, ten years ahead of 2050 Net Zero, which is the NDC goal of Korea. To achieve this goal, we plan to reduce our Scope 1 & 2 emissions by 42%, having set 2021 as the base year, 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% by 2030 compared to the base year in compliance with the 2˚C or less scenario. SK ecoplant submitted its current Scope 1 & 2 emission reduction targets and its Scope 3 emission reduction targets for 2030 to Science-based Target Initiatives (SBTi), and it proved the reliability of its Net Zero goal by obtaining SBTi’s approval for the GHG reduction target in February 2023 for the first time in the same industry in Korea.
We formed the Net Zero Transition Council, encompassing all business sectors, to pursue company-wide carbon neutrality systematically and to come up with specific implementation strategies for each business sector. In addition, we manage and supervise our 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.