SK Inc

Through the Board of Directors, SK Inc. reviews the strategic directions and implementation plans for environmental management. Under the management and supervision of the Board of Directors, the CEOs of the Business and Investment Divisions discuss/decide goals and outcomes of climate change responses and energy-saving. [...] With a resolution of the Board of Directors in March 2021, SK Inc. formed the ESG Committee under the Board of Directors, comprised of five independent directors and one internal director (CEO of SK Inc.), to strengthen ESG management. The ESG Committee decides mid- and long-term strategies for climate change response, environmental business investments, and primary issues. [...] In 2021, the ESG Committee discussed and approved various environment-related agendas, such as the promotion of Net Zero 2040, investment in the turquoise hydrogen business, securement of shares of EV battery material manufacturers, investment in private renewable energy generation at data centers, and formation of a business portfolio throughout the entire hydrogen market value chain."
"In November 2020, SK Telecom developed an integrated compliance program and promotion framework for the ICT Family, reflecting the compliance capabilities and business characteristics of the 23 companies within the ICT Family to increase the efficiency of integrated responses to the changing business environment. While sharing guidelines on individual tasks to ensure compliance at each company within the family, each company also established and executed effective annual tasks according to their circumstances. These tasks were reflected in the KPIs of each company and the appraisal system for executives. Through this program, SK Telecom enhanced the compliance awareness and capabilities of the ICT Family, encouraging the execution of – and cooperation on – tasks customized to the conditions of each company.

Through the ESG Committee under the board of directors, SK Inc. is responsible for determining how to respond to climate change, reviewing mid- to long-term strategies, approving major tasks, and managing and supervising implementation. The CFO oversees the organization that manages the financial impact of climate change on investment assets. [...] The ESG Committee receives reports on ESG and climate risk assessments from investment companies twice a year and holds decision-making authority on key matters.

SK Inc. operates a system to evaluate and manage the alignment of its association memberships with the company's growth, sustainability, business ethics, fair trade, and compliance with the Paris Agreement. The company provides a Membership Management Process Guide to its employees. Activities such as joining, withdrawing from, and making expenditures on annual fees and donations to associations require the cooperation and approval of the External Communication Officer, who reports directly to the CEO. This officer monitors and assesses the appropriateness and value of various memberships, supports decision-making, and ensures that the association's public policy participation aligns with both the goals of the Paris Agreement and the company's objectives. Furthermore, to address any discrepancies between the association's stance on climate change and that of the company, SK Inc. undertakes the following actions in all jurisdictions where we have operations: - Public statements on discrepancies between the company's stance and that of the associations - Discussions on modifying the association's stance - Non-renewal or withdrawal from memberships - Exploration and joining of alternative associations

- The ESG Committee, in 2021, discussed and approved various important matters related to long-term climate change response, such as driving the Net Zero 2040 initiative, investing in green hydrogen businesses, securing stakes in electric vehicle battery material manufacturers, investing in self-generated renewable energy facilities for data centers, and building a business portfolio across the entire value chain in the hydrogen market. Additionally, in accordance with the Portfolio ESG Management Framework established in 2022, the ESG Committee receives reports on ESG and climate risk assessments from investment companies twice a year and holds decision-making authority on key matters. [...] **ESG Committee** Composition Members Details Installation Purpose Kim, Seon Hee (Chairman) - Driving the company's mid- to long-term sustainable growth The ESG Committee has the right and role to hold meetings as needed 5 Independent Yeom, Jae Ho - Review and management/supervision of mid- to long-term strategies, annual management plans and major activities Directors Kim, Byoung Ho - Prior review/determination of individual investment agenda Lee, Chan Keun (major capital expenditures, acquisitions, sales, etc.) Pak, Hyun Ju - Monitoring and supervising ESG management performance (major capital expenditures, acquisitions, sales, etc.) 1 Executive - Managing/supervising climate change issues Lee, Sung Hyung Director [...] **Major Resolutions on Climate Change & Environment in 2022 (Regular ESG Committee) agenda)** Opening Director Agenda Details Schedule Attendance Rate Reviewing the achievement of greenhouse gas emissions KPI Performance Check 22.11.24 100% reduction goals toward Net Zero Establishing a full portfolio ESG management framework Portfolio ESG Integrated for the entire investment process, including climate risk financial 22.11.24 100% Management impact management measures Company M Considering additional investment into companies 22.07.19 100% Investment Review with key technologies of alternative foods Company Y Considering management right acquisition to foster 22.04.21 100% Investment Review silicon carbide business, a key component of electric vehicles

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]We attend corporate meetings organized by the Corporate Renewable Energy Foundation to monitor local and international RE100 institutions and policy issues and follow-up on the feasibility of our climate change response strategy and the probability of legal 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's ESG, Legal, Corporate and Public Relationship (CPR), HR, and purchasing organizations operate a process to identify, prevent, and evaluate environmental issues such as policies and laws in advance under the company-wide integrated risk management system.
∙ In addition, the CEOs and CSOs (Chief of Sustainability) of SK group members regularly participate in the Social Value Committee and the Environmental Business Committee, and discuss common issues and solutions at the group level related to government policies, such as renewable energy procurement, carbon credits, and greenhouse gas reduction measures.

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]∙ As part of our integrated risk management system, SK Inc. identifies environmental policy and related legal risks and conducts regular legal compliance and environmental risk assessments. The CEOs and CSOs (chief sustainability officers) of SK Group companies actively participate in the Social Value (SV) Committee, Environmental Business Committee, and Communication Committee to address common issues and find solutions related to government policies, including renewable energy procurement, carbon emissions allowances, and greenhouse gas reduction measures.

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