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Disclosing ESG information transparently in accordance with international standards.

GRI Standards

General Disclosures

이 표는 GRI Standards 일반표준 공개(General Disclosures)표로 주제, Disclosure, 지속가능경영보고서 보고 페이지, 검증으로 구성되어 있습니다.
Topic Disclosure 2020 SR page Verification
Organizational Profile 102-1 Name of the Organization p.4
102-2 Activities, brands, products, and services p.5-12
102-3 Location of headquarters About this Report
102-4 Location of operators p.5
102-5 Ownership and Legal Form SK networks Business Report p.3, 50 SK magic Business Report p.44
SK rent-a-car Business Report p.25
102-6 Markets served Business Report p.32
102-7 Scale of the organization 4-5p
102-8 Information on employees and other workers Performance Data
102-9 Supply Chain p.55-56
102-10 Significant changes to the organization and its supply chain N/A**
102-11 Precautionary Principle or Approach p.66
102-12 External Initiatives p.90-93
102-13 Membership of associations p.96
102-14 Statement from Senior Decision-Maker p.2
Strategy 102-15 Key impacts, risks, and opportunities p.86-89
Ethics and integrity 102-16 Values, principles, standards and norms of behavior p.13-16, 55, 67-70
102-17 Mechanisms for advice and concerns about ethics p.67-70
Governance 102-18 Governance structure p.63-65
102-36 Process for determining remuneration SK networks Business Report p.377 SK magic Business Report p.254
SK rent-a-car Business Report p.299
Stakeholder Engagement 102-40 List of stakeholder groups p.17, 56
102-41 Collective Bargaining agreements Performance Data
102-42 Identifying and selecting stakeholders p.17
102-43 Approach to stakeholder engagement p.17
102-44 Key topics and concerns raised p.19
Reporting practice 102-45 Entities included in the consolidated financial statements SK networks Business Report p.3-4
102-46 Defining report content and topic Boundaries p.18
102-47 List of material topics p.19
102-48 Restatements of information N/A
102-49 Changes in reporting p.19
102-50 Reporting period About this Report
102-51 Date of most recent report About this Report
102-52 Reporting cycle About this Report
102-53 Contact point for questions regarding the report About this Report
102-54 Claims of reporting in accordance with the GRI Standards About this Report
102-55 GRI Content Index GRI Content Index
102-56 External assurance Third Party assurance (p.94-95)

*SK networks Business Report SK magic Business Report SK rent-a-car Business Report
**No changes were made in the supply chain during the reporting period

Topic-Specific Disclosures

이 표는 GRI Standards 특정표준 공개(Topic-Specific Disclosures)표로 주제, Disclosure, 지속가능경영보고서 보고 페이지, 검증으로 구성되어 있습니다.
Topic Disclosure 2020 SR page Verification
Topic 1: Consumption Trends & Technology Innovation
GRI 103: Management Approach 2016 103-1 Name of the Organization p.37-44, 87
103-2 Activities, brands, products, and services
103-3 Location of headquarters
Economic Performance 201-1 Direct economic value generated and distributed p.5, Performance Data
Topic 2: Domestic and Global Market Competition
GRI 103: Management Approach 2016 103-1 Name of the Organization p.37-44, 88
103-2 Activities, brands, products, and services
103-3 Location of headquarters
Economic Performance 201-1 Direct economic value generated and distributed p.5, Performance Data
Topic 3: Corruption
GRI 103: Management Approach 2016 103-1 Name of the Organization p.67-70, 88
103-2 Activities, brands, products, and services
103-3 Location of headquarters
Corruption 205-2 Communication and training about anti-corruption policies and procedures p.67-69, Performance Data
Topic 4: Eco-friendly technology and products
GRI 103: Management Approach 2016 103-1 Name of the Organization p.21-35, 89
103-2 Activities, brands, products, and services
103-3 Location of headquarters
Materials 301-2 Recycled input materials used p.26, 31
301-3 Reclaimed products and their packaging materials p.31, Performance Data
Energy 302-1 Energy consumption within the organization Performance Data
302-3 Energy intensity Performance Data
Water and Effluents 303-1 Interactions with water as a shared resource Performance Data
Emissions 305-1 Direct (Scope 1) GHG Emissions p.34, Performance Data
305-2 Energy Indirect (Scope 2) GHG Emissions p.34, Performance Data
Waste 306-3 Waste generated Performance Data
Topic 5: Customer Health and Safety
GRI 103: Management Approach 2016 103-1 Name of the Organization p.89
103-2 Activities, brands, products, and services
103-3 Location of headquarters
Customer Health and Safety 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services Performance Data
Customer Privacy 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data p.71-72
Topic 6: Compliance with Government Policies/Regulations
GRI 103: Management Approach 2016 103-1 Name of the Organization p.70, 90
103-2 Activities, brands, products, and services
103-3 Location of headquarters
Socioeconomic Compliance 419-1 Non-compliance with laws and regulations in the social and economic area p.70
Environmental Compliance 307-1 Non-compliance with environmental laws and regulations No disciplinary action or fine regarding law violations
Topic 7: ESG Risks in Supply Chain
GRI 103: Management Approach 2016 103-1 Name of the Organization p.54-56, 90
103-2 Activities, brands, products, and services
103-3 Location of headquarters
Procurement Practices 204-1 Proportion of spending on local suppliers Performance Data
Other Materiality Assessment Topics
Employment 401-1 New employee hires and employee turnover Performance Data
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees p.46, Performance Data
401-3 Parental Leave p.46, Performance Data
Occupational Health and Safety 403-9 Work-related injuries p.52-53, Performance Data
Training and Education 404-1 Average hours of training per year per employee p.49, Performance Data
Diversity and Equal Opportunity 405-1 Diversity of governance bodies and employees p.63, Performance Data
405-2 Ratio of basic salary and remuneration of women to men Performance Data
Non-discrimination 406-1 Incidents of discrimination and corrective actions taken No incidents found

SASB

SASB Index

The SASB (Sustainability Accounting Standards Board) Index identifies the subset of ESG issues most relevant to financial performance in each of 77 industries as initially established by the US Securities and Exchange Commission (SEC). SK networks specifically reports according to the standards of the “Multiline and Specialty Retailers & Distributors” industry where our ICT business applies.
SK networks has been disclosing information in accordance with the SASB standard in its sustainability report and website from 2021. We plan to analyze new SASB requirements every year and update the contents reflecting the results with the goal of securing channel diversity.

Sustainability Disclosure Topics

이 표는 ASB Index 표로 토픽, 공시 코드, 공시 지표, 지속가능경영보고서 보고 페이지 으로 구성되어 있습니다.
Topic Code Accounting Metric 2020 SR page
Energy Management in Retail & Distribution CG-MR-130a.1 (1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable p.75
Data Security CG-MR-230a.1 Description of approach to identifying and addressing data security risks p.71-72
CG-MR-230a.2 (1) Number of data breaches, (2) percentage involving personally identifiable information (PII), (3) number of customers affected p.72, 81
Labor Practices CG-MR-310a.2 (1) Voluntary and (2) involuntary turnover rate for in-store employees p.71-72
CG-MR-310a.3 Total amount of monetary losses as a result of legal proceedings associated with labor law violations* p.81(손실액 없었음)
Workforce Diversity & Inclusion CG-MR-330a.1 Percentage of gender and racial/ethnic group representation for (1) management and (2) all other employees** p.7 7-78
Product Sourcing, Packaging & Marketing CG-MR-410a.2 Discussion of processes to assess and manage risks and/or hazards associated with chemicals in products p.89
CG-MR-410a.3 Discussion of strategies to reduce the environmental impact of packaging/td> p.32, 89

*Establishes context and content on the nature of all adjustments made due to monetary losses
**Overall explanation on policies and programs affiliated to fostering fair and equal talent within the workplace

Accounting Metrics

이 표는 Accounting Metrics 공시 지표, 공시 코드, 보고내용으로 구성되어 있습니다.
Disclosure Index Code Report Contents
Number of Distribution Centers CG-MR-000.A 8 Distribution Centers (Seoul, Yongin, Anseong, Busan, Dajeon, Daegu, Gwangju, Iljuk)
Total area of: (1) retail space and (2) distribution centers CG-MR-000.B 45,662m2 (total floor area)

TCFD

The Financial Stability Board published the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations as corporate roles and responsibilities for climate change response are being increasingly emphasized.
SK networks is actively fulfilling the responsibility for climate change response by disclosing its climate change goals and data according to the TCFD recommendation. Moreover, we have set our future goals to establish risk analysis and management plans by 2023 and derive strategies and improvement tasks by 2025.

이 표는 Accounting Metrics 공시 지표, 공시 코드, 보고내용으로 구성되어 있습니다.
Category Recommended Disclosures Description CDP
Governance Disclose the board’s oversight of climate-related risks and opportunities In March 2021, SK networks installed the ESG Management Committee comprised of the CEO and five independent directors to actively respond to climate change and strengthen the company’s ESG management. The committee discusses in advance agendas (e.g., capital expenditure, acquisitions, and sales) for improving sustainable corporate values, such as climate change response. At the first ESG Management Committee meeting in June 2021, SK networks, together with the SK Group subsidiaries, declared Net Zero 2040 following prior deliberation and discussion. At present, the committee is discussing the development of strategies for climate change response, like those concerning the TCFD and SBTi. The committee will continue our engagement in supervising the company’s quarterly promotion status. C1.1
Describe the management’s role in assessing and managing climate-related risks and opportunities When it comes to business activities, SK networks’ CEO and management place importance on environmental issues and strive to reduce the environmental impact of business activities. Centering on SV Division, which is under the CEO’s direct supervision, we develop company-wide climate change strategies, innovate our business models, and establish an environmental management system. In addition, the CEO provides online real-time lectures targeting position holders to share the importance of climate change response and ESG with the employees, and our business divisions discuss climate-related issues and make decisions on key issues at our management meetings chaired by the CEO. C1.2
Strategy Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term SK networks continuously engages in assessing climate change risks, and no material risks have been detected so far. Among our business divisions, only Walkerhill Hotels & Resorts has been designated as a business site subject to national GHG and energy target management systems. As emissions from this business division are not high, there is no risk of being included in the emissions trading scheme within the next three years. Furthermore, the level of transition risks caused by climate change is not high across all business divisions. As for physical risks, they are at a level that business sites can preemptively cope with, and thus no damage has occurred. Our business sites are eliminating any risk factor prior to occurrences of critical impact.
SK networks prevents and manages risks based on our full-time risk response system. For preemptive response prior to detection of material risks, we formulate carbon reduction plans and strategies, such as the Net Zero 2040 declaration and joining the K-EV100 initiative. Strategic activities, as such, are identified as climate-related opportunities, and through the given opportunities, we strive to reduce GHG emissions and thus advance to become an ESG leading company.
C2.1, C2.2, C2.3, C2.4
Describe the impact of climate- related risks and opportunities on the organization’s businesses, strategy, and financial planning Following the LPG business transfer in February 2017, the petrochemical wholesale business transfer in August of the same year, and the withdrawal of the Australian coal business in October 2019, the Board of SK networks resolved to transfer the petrochemical retail business in March 2020. SK networks continues to restructure our business portfolio as part of our efforts to reduce the climate change impacts.
In 2021, SK networks and SK rent-a-car joined the K-EV100 and declared 100% conversion to pollution-free vehicles by 2030. In February of the same year, SK rent-a-car raised KRW 98 billion of funds for eco-friendly vehicle purchases through green bond issuance.
C2.5, C2.6, C3.1
Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2℃ or lower scenario Since the declaration of Net Zero 2040 in June 2021, SK networks has been considering joining the SBTi. Also, as of 2020, we have calculated the GHG emissions of our company and subsidiaries. In addition, we have set our primary reduction goal by 2030 to be 42% of 2020. This number is based on the SBTi’s absolute contraction approach to limit the average rise of global temperature to 1.5℃. We will fulfill the GHG emissions reduction target by expanding the use of renewable energy, introducing low-carbon technologies, and converting all vehicles to electric vehicles. C3.1
Risk Management Describe the organization’s processes for identifying and assessing climate-related risks In relation to domestic and international trends of climate-related policies and systems, each business division manager at the SV organization checks key issues and performance by monitoring emissions and energy consumption. In addition, ESG key indicators are collectively entered into the system monthly. By referring to TCFD recommendations, we will improve the processes of identifying and assessing financial and non-financial risks that are related to climate change in each business division. For example, we have created a process to predict and respond to risk impacts based on discussions with representatives of each business division by identifying and sharing climate-related system trends in Korea and overseas by establishing a company-wide ESG Leading Committee in August 2021. C2.2
Describe the organization’s processes for managing climate- related risks In 2019, our branches suffered typhoon and flood damages, and the SHE organization identified the status of branches across the country. As for the car rental business, efforts were made to minimize damage, such as sending text messages directing customers to avoid parking in low-lying areas. The frequency of typhoons and flood occurrences has been increasing over the last five years due to climate change, and this can be a risk to our car rental business. Accordingly, we have internal guidelines to monitor meteorological trends and provide climate-related information to customers, ranging from heatwaves at temperatures over a set level to the number of days of a typhoon or heavy rain to help them reduce damages. C2.2
Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management SK networks develops company-wide climate change strategies centering on the SV Division, an executive-level organization under the CEO’s direct supervision, and innovating our business models and improving the management system based on the strategies. We are establishing a process through which the SV Division reports climate-related issues, strategy development, and other operations directly to the CEO each month to ensure organic and swift communication. In addition, climate- related progress along with the business model strategies are shared with our executives monthly through a company-wide executive consultative body.
We also undergo business restructuring as part of our efforts to pursue eco-friendliness throughout the organization. As we are engaged in a number of businesses, such as ICT marketing, car maintenance, distribution of vehicle components (SpeedMate), Walkerhill, trading, home appliances (SK magic), and car rental (SK rent-a-car), we have designated organizations in charge of climate change response in each business division, and they are operating the SV Board, a consultative body of all business divisions chaired by the CEO, once a month. The CEO as the final decision-maker, makes decisions on business restructuring and other activities according to the climate change strategies, and the key issues are discussed by the Board. The joint declaration of SK rent-a-car and SK networks to join the K-EV100 in March 2021 was also carried out through the same process.
C2.2
Metrics and Targets Disclose the metrics used by the organization to assess climate- related risks and opportunities in line with its strategy and risk management process In addition to SK Group’s ESG key indicators, SK networks is in the midst of developing mid-to-long-term 2030 environmental goals. In terms of GHG emissions, water consumption, waste discharge, and air pollutant emissions, we will attain the 2030 environmental goals and tasks according to the characteristics of each business division and thus manage goals fulfillment. C4.1
Disclose Scope 1, Scope 2, and Scope 3 greenhouse gas (GHG) emissions and related risks In 2020, SK networks expanded the scope of the organizational boundary for the estimation of GHG emissions to include subsidiaries and sub-subsidiaries in Korea. Total emissions are as follows:
이 표는 Scope1, 2 및 Scope3 온실가스 배출량 및 관련 위험 공개표로, 구분, Scope 1, Scope 2, Scope 3으로 구성되어 있습니다.
Category Scope 1 Scope 2 Scope 3
tCO2eq 16,346 34,852 581,558
이 표는 Scope1, 2 및 Scope3 온실가스 배출량 및 관련 위험 공개표로, 구분, Scope 1, Scope 2, Scope 3으로 구성되어 있습니다.
Purchased goods and services Upstream transportation and distribution Business travel Down-stream transportation and distributio Use of sold products Franchises
28 7,476 17,354 11,170 542,326 3,205

※ Boundary Organizations: SK networks, SK magic, SK rent-a-car, SK networks Service, MINTIT, SK magic, SK rent-a-car

C6.1, C6.3, C6.5
Describe the targets used by the organization to manage climate- related risks and opportunities and performance To achieve Net Zero 2040, SK networks has established GHG emissions reduction targets and actively reviews a plan to join the SBTi. We examine GHG emissions reduction plans that befit the characteristics of each business division, will establish detailed tasks an overall roadmap, and will regularly disclose the status of our climate change response and performance to stakeholders. C4.1

K-EV100

In March 2021, SK networks joined the K-EV100 Project(corporate commitment for a phased transition to zero-emission vehicles) together with its subsidiary SK rent-a-car and declared the conversion of all (100%)company-owned cars to eco-friendly cars by 2030.

EV100

As of October, 2021, SK network signed up the global greenhouse gas reduction initiative EV100, switching all corporate transportation fleets of its 7 affiliated entities including subsidiaries to ecofriendly mobility solutions.

CLIMATE GROUP EV100

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ZWTL

As of November, 2021, SK networks had its Walkerhill Hotel & Resort ZWTL (Zero Waste to Landfill)-certified by global safety certification agency UL for the first time among Korean hotels.

UL VALIDATED

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