SK Group pledges $85 bn to reduce carbon emission by 200 mn by 2030

[Photo provided by SK Group]

South Korea’s third-largest conglomerate SK Group will spend over 100 trillion won ($85 billion) to reduce carbon emission by 200 million tons by 2030, according to its chairman Chey Tae-won.

“SK Group should aim to contribute 1 percent to meet global carbon elimination goal of 21 billion by 2030,” Chey told employees in his closing address to 2021 CEO Seminar at SKMS Research Institute in Icheon, Gyeonggi Province, on Friday.

The group’s seminar is held in October annually where the chairman presents key management agenda. This year’s theme focused on environmental, social, and governance (ESG) management that focuses on carbon emission reduction.

The event was attended by about 30 executives including Chey Jae-won, senior vice chairman at SK Holdings and Chey Chang-won, vice chairman of SK Discovery Co.

SK Group that has mainly engaged in refinery and petrochemical industry has emitted accumulated 450 million tons of carbon dioxide and therefore make extra effort, Chey argued.

“For leadership in carbon-free environment in the future, the group would have to reach zero carbon footprint by 2035,”- he said.

The conglomerate will aim to reduce 5,000 tons of carbon emissions by improving processing efficiency in existing businesses and purchasing renewable energy while the remaining 150 million tons by investing over 100 trillion won ($84.9 billion) in green projects and supply chain in electric vehicle battery and hydrogen sectors.

The CEOs of SK Group affiliates vowed to go aggressive in promoting direct investment to reduce carbon emissions before 2050 and expand renewable energy and replace old facilities.

SK Innovation and SK Geocentric have been accelerating transition to battery and environmentally-friend plastic from traditional petrochemicals, the official said. “SK Group is expected to speed up promotion of carbon neutrality and related projects even more next year.”

Cho Dae-sik, chairman of SK Supex Council, also said during the opening speech on Wednesday that achieving “net zero” emissions was pivotal in SK’s survival and future growth.

Chey also heralded sustainable change and innovation in social responsibility and management structure. The chairman proposed growth based on the aim of creating over 30 trillion won in social value by 2030. He also called on for board-driven management to enhance transparency.

Chey is expected to meet with Korean Prime Minister Kim Boo-kyum on Monday and discuss group outline on youth jobs. He heads to the United States this week for business discussions.

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