Eight affiliates in SK Group joining “RE100” for the first time in Korea

SK hynix to meet the required massive power demand with environment-friendly energy

Planning to achieve 100% by 2050, affiliates dealing in petrochemicals and gas to expand use of renewable energy, too
Accelerating “ESG Drive” as the mainstay of corporate management reciprocating the Green New Deal policy of the government

Eight affiliates in the SK Group, including SK hynix and SK telecom, have decided to use 100% renewable energy such as wind power and solar power for their electric power needs by 2050. Even semiconductor plants that require massive power supply will switch to renewable energy according to the ambitious plan.

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The policy of ”100% use of renewable energy” reflects SK Chairman Chey Tae-won’s determination to make environmental, social, and corporate governance (ESG) the mainstay of corporate management.

FIRST KOREAN COMPANIES TO JOIN RE100

SK Group announced on Nov. 1 that eight companies in the Group—SK Holdings, SK telecom, SK hynix, SKC, SK siltron, SK materials, SK broadband, and SK IE Technology—are submitting applications on Nov. 2 to join RE100, a global coalition of multinational companies committed to transitioning to using 100% renewable energy such as solar and wind power for their operations by 2050. RE100, or Renewable Energy 100%, was established in 2014 as a campaign encouraging companies to transition to using 100% renewable energy. Companies that consume over 100GWh annually are the targets of the campaign. As of early November, 264 companies around the world have joined RE100, including Google, Apple, General Motors, and Ikea.
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Once the application is approved, companies need to submit an execution plan within 1 year of joining, and they will be subject to annual inspections. A company can keep its membership only if it is able to increase the portion of renewable energy in phases to 60% by 2030 and 90% by 2040.

SK plans to increase its renewable energy consumption in stages through KEPCO’s green pricing, third-party power purchase agreement, and stake investments in renewable energy power projects. Investment in power generation with renewable energy can be regarded as use of renewable energy.

Other SK affiliates dealing in petrochemicals and gas, such as SK innovation Co., SK E&S Co., and SK gas, will set up their own goals in line with RE100 standards to expand their use of renewable energy.

SK plans to secure credibility as a company committed to ESG practices on a global level through its RE100 membership. Chairman Chey has repeatedly emphasized ESG as a key area to revolutionize the group’s businesses.

SK Group plans to support actively the Green New Deal policy, the growth strategy being implemented by the Korean government. The Ministry of Trade, Industry, and Energy held a Green New Deal policy meeting in early September and encouraged Korean companies to join RE100.  
SK Group’s participation in RE100 is expected to prompt other Korean companies to take part in the initiative.

According to some analysts, being a member of RE100 will contribute to enhancing export competitiveness especially since the global business culture has stepped up eco-friendly practices including the consideration of the European Union (EU) to impose a carbon border tax.  “As a domestic company that is highly dependent on trade, we should introduce eco-friendly measures, such as those stipulated by RE100, to boost export competitiveness,” an SK source said.

​Reporter Kyung-min Kang at kkm1026@hankyung.com