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SK Group creates W20.5tr in social impact in 2022

June 4, 2023 - 15:16 By Kim So-yeon
SK Group Chairman Chey Tae-won (SK Group)

SK Group announced Sunday that the total social value generated by its key affiliates last year was 20.5 trillion won ($15.6 billion), up 1.6 trillion won or 8.6 percent from the previous year.

Social value refers to the degree to which companies have contributed to solving or alleviating social problems facing stakeholders.

The nation’s second-largest conglomerate has unveiled the value of its social impact every year since 2018.

Economic contribution, consisting of employment, dividends and tax payments, made up the largest share at 20.7 trillion won in value last year. Meanwhile, social contribution -- consisting of products, services, labor and shared growth with suppliers -- made up 2.5 trillion won in value.

When it comes to environmental contribution, the group gave 900 billion won to environmental products and services, but generated 3.6 trillion won worth of negative impact largely due to its operation of petrochemical plants.

SK noted that the group has set up an evaluation system to assess the progress of socially responsible management across its affiliates under the leadership of SK Group Chairman Chey Tae-won.

For instance, SK Innovation’s “Carbon to Green” strategy helps its key affiliates SK On, the electric vehicle battery maker, and SK IE Technology, the battery separator maker, launch eco-friendly products.

The petrochemicals unit is also seeking to nurture a new business model for recycling used chemical materials like plastics, battery metals and lubricants.

When it comes to social value, the figure exceeded 1 trillion won for the first time last year, more than five-fold growth from 2018. In particular, progress in the safety and welfare sectors was more apparent, generating 76.8 billion won and 57.3 billion won, respectively.

“We are finding new business models while seeking ways to tackle or alleviate social problems together with stakeholder groups,” an SK official said. “Social impact is being integrated into business models of all affiliates.”