South Korean company SK Inc. receives ‘AAA’ ESG rating from MSCI
South Korean holding and IT services company SK Inc. has received the highest rating grade of ‘AAA’ from the global rating assessment agency MSCI and Dow Jones Sustainability Index (DJSI). The company has made remarkable progress in becoming a leader in ESG as in the previous year, the company had received a rating of ‘AA’ in the same assessment by MSCI. The company has integrated ESG into its management and overall operations process using simple methods such as investing in various technologies to drive towards net: small modular reactors, food sustainability, an increasing overall use of renewable energy, and encouraging inclusivity and diversity within the board.
When it comes to the ESG performance of its competitors, LG Chem in February 2022 declared that it will accelerate the goal of carbon-neutral growth and reach net zero by 2050. The company has selected important ESG indicators to implement ESG into corporate management, some of which are greenhouse gas emissions reduction, energy consumption reduction, water and air pollutants reduction, employee diversity, supply chain sustainability, corporate governance and the overall implementation of sustainable solutions across the value chain.
The MSCI ESG rating comes after SK Inc. has been selected for the eleventh consecutive year in the prestigious S&P Global’s DJSI World Index. The DJSI evaluated 2,555 companies on their sustainability performance and only 326 were eligible for admission to the World Index. Out of 24 prominent Korean companies, SK Inc. scored the highest and was placed at the top position in the ‘Industrial Conglomerates Industry’ category. Talking about the impressive ESG scores, Dong-ju Park, Vice President of the Portfolio Planning Office at the company, said, “At SK Inc., we are making an effort to create value for various stakeholders, an example being the recent launch of the online ESG platform from which external stakeholders can easily view our ESG management performances in a data format. SK Inc. will continue to focus on ESG-centered business model innovation and board-led corporate governance.”
Globally, companies are ramping up the implementation of ESG aspects into their business strategies to assist the transition towards sustainability. For this purpose, globally renowned ESG rating agencies have been licensed to give transparent and accurate ESG ratings to companies to benchmark their sustainability performance with industry peers.
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