SEOUL, May 23 (Korea Bizwire) — SK Group said Monday it generated 18.4 trillion won (US$14.5 billion) in “social value” last year, in its first disclosure of its nonfinancial performance related to environmental, social and other areas, as it accelerates its drive for sustainability.
The amount marks an increase of 7 trillion won from the previous year, SK announced, citing the result measured with its own formula developed based on various market and internationally recognized indicators related to corporate social values, SK said.
SK, the energy-to-telecom conglomerate, first introduced the social value measurement system in 2018 to gauge its contributions to the economy and society in monetary terms, in line with the new business philosophy seeking to achieve financial growth and fulfilling social responsibility at the same time.
Social value refers to the value that a company has contributed to solving or alleviating social problems, such as the COVID-19 pandemic and climate change, according to SK.
“We plan to further enhance the objectivity and transparency of the measurement system by disclosing the formula and the meaning of the results,” Lee Hyung-hee, head of the social value committee under SK’s Supex Council, the top decision-making body, said in a press conference.
SK, a firm with 186 affiliates under its wing, has been a pioneer in the implementation of environment, social and corporate governance (ESG), an approach that evaluates how much a company does to achieve social goals and sustainable growth.
SK Group has announced a plan to invest more than 100 trillion won in eco-friendly businesses, such as electric vehicle batteries and hydrogen, in efforts to diversify and expand its portfolio into green energy sectors.