SK Telecom Co Ltd

Aligned with the company-wide environmental strategy goals, the ESG Initiative Group, as the operational body, deliberates on all matters related to the environment, energy, and greenhouse gases, including engagement activities and the overall climate strategy, to ensure consistency. The ESG Initiative Group continuously monitors climate-related risks and opportunities, reporting them to the Chief Legal Officer (CLO) immediately upon identification. The CLO assesses the impacts and materiality of climate change risks and opportunities on the company and decides whether to take further action, subsequently reporting these findings to the CEO and the ESG Committee. The CEO is informed of all significant climate change-related issues and makes the corresponding decisions. For key issues, they are presented to the ESG Committee as agenda items, where the CEO's recommendations are considered to guide the decision-making process. The ESG Committee finalizes decisions by taking into account the materiality assessment outcomes and the CEO's input. By following this process of identifying, assessing, and addressing climate change issues, SK Telecom ensures that its vision, policies, and management's direction are consistently integrated into its engagement activities and climate change strategies. Moreover, SK Telecom continuously monitors and evaluates its external participation activities to ensure alignment with its environmental commitments and global climate goals, including those outlined in the Paris Agreement. Should any misalignments arise, the ESG Initiative Group conducts a thorough review and reports its findings to the CLO, who then determines next steps. The results are subsequently reported to the CEO and the ESG Committee for further deliberation.

###### SK Telecom operates a reporting system that is oriented around the Board of Directors and management, and is aimed at systematically achieving our "2050 Net Zero" goal. Roles and responsibilities are clearly assigned to internal stakeholders under SK Telecom's climate governance systems. Key agenda items are discussed within the Board of Directors, and ESG KPIs are applied to ensure that substantial and effective efforts are made. In keeping with Korean and international trends, SK Telecom maintains proactive climate disclosure practices. We strive for sufficient and transparent communication on these efforts with our internal and external stakeholders. [...] The SK Telecom climate change response deliberation system is comprised of the Board of Directors, management, and working-level staff. Members of the organization participating in our climate change response system engage in in-depth discussions and deliberations on key climate change issues based on their professional expertise in their respective areas. The ESG Committee of the Board of Directors manages key issues related to climate change as the highest decision-making body. At the executive level, the CEO and the CLO (ESG General Manager) are responsible for managing major issues of climate change and supporting the ESG Committee decision-making. [...] The roles and responsibilities of each member of the SK Telecom organization are clearly prescribed. Potential climate risk and opportunity factors are identified through internal communication, and these factors are reviewed and reflected throughout our financial planning and environmental management strategies. [...] The ESG Committee receives reports on implementation directions and outcomes relating to key ESG-related fields, and reviews these on an as-needed basis. For agenda items relating to climate change, the committee establishes performance objectives for the organization, and monitors SK Telecom's progress on the implementation of Net Zero practices. Key climate-related agenda items for 2022 include securing overseas CERs, monitoring SK Telecom's Net Zero progress, and Net Zero planning. [...] The CEO of SK Telecom receives reports at regular intervals on key agenda items including progress on 2050 Net Zero implementation, climate risk assessments and the company's response to the same. The CEO supports the ESG Committee in discussing and making appropriate decisions with regard to core agenda items. The CLO of SK Telecom has general responsibility over ESG affairs, and manages the related businesses and organizations to ensure an effective ESG response by the company. Important risk and opportunity factors related to climate change are immediately reported to the CEO upon their identification, ensuring swift decision-making. [...] The "SK Telecom Climate Task Force" was organized in 2023. Regularly scheduled meetings are conducted among working-level staff of related departments to identify climate change-related risks and opportunities, discuss the potential financial impact of risks identified, and share input on plans to reduce and adapt to risks.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]SK Telecom joined the RE100 in 2020 and also submitted the implementation plan for the RE100 in 2021. SK Telecom's proportion of renewable energy will increase to 65 % by 2030 and 100 % by 2050. SK Telecom announced its commitment to the RE100 targets by 2050 and plans to manage its relevant activities for achievement of the targets. Also, to attain the target of 1.5 ℃ according to the Paris Agreement, the company pushes ahead with its efforts to meet net zero and got approval of the target from the SBTi as well. Net Zero serves as a crucial target for SK Telecom's company-wide environment strategies and, at the same time, is an importance promise for the future. SK Telecom's net zero target is to reduce direct/indirect emissions (Scopes 1 and 2 combined) by 47.7 % compared to the level of 2020 and to cut down on indirect emissions from its value chain (Scope 3) by 22.3 % in 2030. As a long-term target, the company plans to achieve net zero in 2050. Since emissions from electricity consumption accounts for 99 % of its total GHG emissions, the company is on the same path to achieve the RE100 target and the net zero target both.

In line with its above-mentioned environment strategy targets, ESG Management Group manages all agendas related to environment, energy and GHGs including engagement activities and company-wide climate strategies in order to keep consistency in its strategies. The ESG Management Group regularly monitors climate risks/opportunity factors and immediately reports to the CLO on such factors once it detects any. The CLO reviews the impact of the factors on the company as well as their materiality assessment results and decides whether or not to conduct decision-making on them and then makes report to the CEO and ESG Committee. The CEO, in turn, receives report on all important issues and makes a decision accordingly. Of the issues reported, core issues are submitted to the committee for discussion where the CEO suggests his/her opinion and provides support for proper decision making. The committee, then, makes a final decision based on materiality assessment results and the CEO's opinion. Overall, SK Telecom continues to maintain consistent engagement activities as well as climate strategies, by reflecting its vision, policy, and course of action and the management's opinion in the process of identifying, assessing and responding to climate issues.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes