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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 2015 2016 2017 2018
Energy Consumption (MWh) 51,409,175 51,104,325 52,290,305 53,877,294
GHG Emissions (tCO2eq)1) 13,020,677 12,765,304 12,884,478 12,870,112

1) GHG Emissions (Scope1&2)

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 2015 2016 2017 2018
NOx Emissions
(metric tonnes)
8,546 8,188 7,909 8,541
SOx Emissions
(metric tonnes)
3,911 4,085 3,950 3103
VOC
(metric tonnes)
385 359 332 323

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 2015 2016 2017 2018
Designated Waste
(metric tonnes)
44386 42,360 50,224 59,322
General Waste
(metric tonnes)
53,825 68,854 61,778 68,220

Environmental Investment

[Unit : KRW million]

Environmental investments table
Type 2015 2016 2017 2018
Total environmental
investments & expenses
37,451.2 40,608.1 78,541.8 76,375.1
Capital investments1) 2,280.5 1,837.4 19,630.8 21,468.7
Operational expenses2) 35,170.7 38,770.7 58,911.0 54,906.4
Environmental Benefits3) 11,620.6 9,632.5 28,882.7 59,953.9

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