Climate Policy Engagement Overview: SK Inc. appears to have limited engagement with climate change policy in South Korea. The company has stated top-line support for the energy transition, and appears to engage positively on renewable energy policy in South Korea. However, SK Inc has not supported the introduction of more stringent climate regulations in South Korea.

Top-line Messaging on Climate Policy: SK Inc. has expressed top-line support for the energy transition, but has not stated a clear position on the Paris Agreement or the need to limit global warming to 1.5C. In an October 2021 interview with The Hankyoreh, Senior Vice President of SK Inc. Lee Hyung-hee appeared to support an active reduction of GHG emissions, however it was unclear whether this was in line with IPCC recommendations.

Engagement with Climate-Related Regulations: SK Inc. appears to have limited engagement with climate change regulations in South Korea. SK innovation does not appear to disclose its positions toward, or engagement with, various strands of climate policy on its corporate website. In its CDP 2021 Climate Change response, the company disclosed that it supported renewable energy policy was making “policy recommendations” to the government regarding improved renewable energy regulations. As reported in the Seoul Economic Daily, SK Inc. Chairman Chey Tae-won did not support South Korea’s raised 2030 GHG emissions reduction target in October 2021, expressing “considerable concerns” about the “realistic possibility” of achieving the 40% reduction target and calling for increased government R&D funds.

Positioning on Energy Transition: SK Inc. shows broad support for the transition to a zero-carbon energy mix. At the May 2021 P4G Summit, Chairman Chey supported reduction of government fossil fuel subsidies. In March 2022, Chairman Chey stated that “energy will change from oil-centered to decarbonised”, during a visit to the Ulsan CLX site.

However, some of SK Inc.’s subsidiaries appear to take more negative positions on the energy transition. For example, in SK innovation’s Net Zero Roadmap report in July 2021, the company appeared to suggest that an urgent phaseout of fossil fuels from the energy mix was not needed, despite acknowledging the ‘limitations’ of fossil fuels. In an interview published in October 2021 on the corporate newsroom, Myeong Seong, the CEO of SK innovation’s Exploration & Production arm, appeared to state that oil and gas is ‘absolutely necessary’ while alternative energy and infrastructure is developed, without clearly commenting on the pace of transition that would align the statement with IPCC recommendations.

Industry Association Governance: SK Inc. has disclosed a list of its industry association memberships in its 2021 Sustainability Report, but with no further details of the company's role within each organization's governing bodies nor influence over their climate change policy positions. However, it did not disclose or assess its relationship with the Korea Chamber of Commerce and Industry (KCCI). SK Inc Chairman Chey Tae-won is the Chairman of the KCCI, which has actively and negatively engaged on a range of Korean climate policy including the 2030 GHG emissions reduction target, the Korea emissions trading scheme, and carbon tax and pricing mechanisms.