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Environment (SHE)

Minimizing of greenhouse gases and pollutants to preserve the global environment

“ SK Innovation applies its own strict environmental standards that include managing air pollutants,
water pollutants and wastes ”

Climate Change Management

SK innovation has been managing greenhouse gas emissions and energy consumption based on the government's ‘management-by-objective operation guidelines’, since the company was selected as being subject to the policy. We were also the first in Korea to adopt an internal emission trading scheme in 2007. We further established a set of execution measures which mainly revolves around the nationwide emission trading system that started in 2015. We are operating emission trading system operation procedures to comply with the relevant laws and regulations and to improve per-unit greenhouse gas emissions compared to energy consumption.

In addition, we are operating GEMS (GHG & Energy Management System) which is interfaced with OIS (Operation Information System) intended for systematic management of information such as energy consumption by production activity and greenhouse gas emissions. GEMS collects daily information from OIS and automatically calculates greenhouse gas emission, enabling us to systematically estimate and manage emissions while checking and efficiently responding to the annual objective achievement status.

Energy Consumption/GHG Emissions

Energy Consumption/GHG Emissions table
Type Pollutant 2015 2016 2017
Energy Consumption (MWh) Petroleumㆍchemical and lubricant business sector1) 50,749,501 49,200,966 51,675,143
R&Dㆍlogistics and other business sector2) 1,049,949 992,839 1,088,633
Total 51,799,450 50,193,805 52,763,776
GHG Emissions (tCO2eq) Petroleumㆍchemical and lubricant business sector 12,742,702 12,550,646 12,708,356
R&Dㆍlogistics and other business sector 291,274 293,185 194,851
Total 13,033,976 12,843,831 12,903,207

1) Petroleum, chemical and lubricant business sector:SK energy(Ulsan), SK global chemical(Ulsan), SK lubricants(Ulsan), SK Incheon petrochem(Incheon)
2)R&D, logistics and other business sector: Seorin Building (Seoul), Battery production line (Seosan), Battery and circuit materials production line (Jeungpyeong, Cheongju), Institute of Technology Innovation (Daedeok R&D Park), Logistics Center

Air Pollutants Management

We apply strict standards on air pollutant emission management to minimize the discharge of air pollutants. We continue to monitor environmental contaminant emission status with the introduction of TMS (Tele-Metering System), a remote monitoring system, in major discharge facilities. To ensure pleasant air quality in and around our networks, we operate odor prevention facilities and VOC channels, based on environmental issues of the neighboring areas.

Air Pollutant Emissions Volume

Type Pollutant 2015 2016 2017
NOx Emissions
(metric tonnes)
Petroleumㆍchemical and lubricant business sector 8,546 8,188 7,908
R&Dㆍlogistics and other business sector 0 0 1
Total 8,546 8,188 7,909
SOx Emissions
(metric tonnes)
Petroleumㆍchemical and lubricant business sector 3,911 4,085 3,950
R&Dㆍlogistics and other business sector 0 0 0
Total 3,911 4,085 3,950
(metric tonnes)
Petroleumㆍchemical and lubricant business sector 385 359 332
R&Dㆍlogistics and other business sector 0 0 0
Total 385 359 332

Waste Management

Under our waste management system, we deliver most of the collected and discharged waste to specialized waste treatment companies with proven capabilities to have the wastes incinerated or buried. We transport waste oils, among designated wastes, to a renewable fuel plant to be used in renewable fuel production, and extract only metal substances from wastes that contain metals for recycling. These are part of our efforts to minimize wastes.

Waste Discharge by Type

Waste Discharge
Type Pollutant 2015 2016 2017
Designated Waste
(metric tonnes)
Petroleumㆍchemical and lubricant business sector 33,338 29,835 38,818
R&Dㆍlogistics and other business sector 11,045 12,525 11,405
Total 44,383 42,360 50,224
General Waste
(metric tonnes)
Petroleumㆍchemical and lubricant business sector 51,323 66,186 59,174
R&Dㆍlogistics and other business sector 2,502 2,668 2,605
Total 53,825 68,854 61,778

Environmental Investment

[Unit : KRW million]

Environmental investments table
Type 2014 2015 2016 2017
Total environmental
investments & expenses
56,877.7 37,451.2 40,608.1 78,541.8
Capital investments1) 20,708.2 2,280.5 1,837.4 19,630.8
Operational expenses2) 36,169.5 35,170.7 38,770.7 58,911.0
Environmental Benefits3) 21,051.0 11,620.6 9,632.5 28,882.7

1) Capital investments includes expenditures related to energy saving, process improvement, product improvement, education and training costs, etc.
2) Operational expenses includes expenditures related to the operation of environmental facilities, operation of resource conservation & recycling facilities, waste disposal cost, etc.
3) Environmental benefits include savings and cost avoidance from by-product disposal, process improvement and water recycling, as well as from tax incentives, etc.

Environmental Impact Assessment

Environmental Impact Assessment Results of SKIPC Upgrading Project