Kim Jong-hoon, chairman of the board of directors at South Korea’s largest energy company SK Innovation, asserted that the company will continue to set a global example on governance structure.
In an interview Wednesday with the firm’s official news channel SKinno News, Kim cited the independence and expertise of the board of directors as key to innovating the company’s corporate business structure.
“The cultivation of our company value and environmental, social, and governance management must begin internally with the establishment and improvement of our governance system. This is a necessary step for receiving recognition as a prestigious company from stakeholders,” he said.
The chairman emphasized the significant role that the board plays in the process of the energy giant's ongoing transition into net-zero businesses.
He also mentioned the company’s various endeavors throughout the last 20 years since 2004 when it first instituted a management structure centered around the board.
“The board of directors has raised the percentage of independent directors to over 70 percent, and is exercising voting rights related to CEO evaluation, remuneration and succession,” he explained.
“This is unprecedented in the financial sphere of Korea.”
Regarding responsibilities, he added, “The board’s performance will determine the fulfillment of our All Time Net Zero promise.”
All Time Net Zero is SK Innovation’s pledge to offset the company’s entire 480 million-metric ton carbon footprint by its 100th anniversary in 2062. It was announced last year at the 60th anniversary ceremony.
Kim also predicted that this year would be particularly tough for the firm, but took a confident stance: “The board will work hard to get our company through any hardships that may arise with continuous reform and improvement.”