In 2024, we identified new climate-related risk and opportunity factors considering business model and value chain of real estate enterprises, to enhance our expertise in real estate business after the equity spin-off. The climate-related risk and opportunity pool was derived as a long list based on concepts presented by global initiatives such as TCFD (Task Force on Climate-related Financial Disclosures) and CDP (Carbon Disclosure Project). Additionally, we conducted peer group benchmarking and analysis of SASB (Sustainability Accounting Standards Board) Standards, confirming specialized risks and opportunities tailored to SK D&D and our subsidiaries, D&D Investment (DDI) and D&D Property Solutions (DDPS).

In the risk and opportunity factors pool, physical risks were recognized based on measurability through risk analysis tools and severity of financial impact as a criterion. Transition risks and opportunities were derived by evaluating the likelihood and severity of financial impacts through interviews with internal and external stakeholders. We have reviewed our response strategies for the identified key climate risks and opportunities, and aim to complete quantitative financial impact assessments for each factor based on scenario analysis by the end of the year.

Based on the results of ongoing financial impact assessment, we will formulate and implement enhanced strategies across short, medium, and long-term perspectives and conduct regular performance monitoring and reporting to strengthen the group-wide climate change response efforts.

SK D&D has identified risks and opportunities through an analysis of the IEA's 1.5°C scenario (NZE2050) global milestones, and has formulated a mid- to long-term business strategy in response. In the real estate development business, we aim to minimize environmental impact across the entire life cycle by considering factors such as land use and convenience, raw material usage, indoor environment, energy efficiency, greenhouse gas emissions, and maintenance ease. Based on these considerations, we seek to obtain eco-friendly certifications for all development projects. In the real estate operations business, we strive to reduce environmental impact during the usage phase by providing services that encourage customers to participate in eco-friendly and greenhouse gas reduction activities.

Furthermore, SK D&D has established the '2030 Net Zero Roadmap' to actively participate in the response to the global climate change crisis. We plan to achieve net-zero by reducing Scope 1 and 2 emissions through implementing RE100 (Renewable Electricity 100%) and EV100 (Electric Vehicle 100%) by 2030, and by reducing Scope 3 emissions through managing GHG emissions throughout the entire process of real estate development and operation by 2050.

SK D&D aims to reduce Scope 1 and 2 emissions from its real estate development and operation sectors as part of its mid- and long-term strategy to achieve Net Zero at its business sites. In 2023, we implemented RE100, which entails sourcing 100% of our electricity consumption from renewable energy. By 2030, we plan to convert 100% of our corporate vehicles to electric vehicles under the EV100 initiative, further achieving additional emission reductions. Any remaining emissions are planned to be reduced through carbon offset projects, based on the government's hydrogen supply roadmaps and policies.

In the long term, SK D&D is committed to achieving not only Net Zero within our organizational boundaries for Scope 1 and 2 but also long-term carbon reduction across the entire value chain. To this end, we are expanding development and investment in high-efficiency energy buildings and zero-emission buildings (ZEBs). We are also working towards obtaining 100% green building certification for commercial and residential spaces and providing sustainable space solutions. Additionally, we are strengthening the management of greenhouse gas emissions across the entire supply chain, including our investment and operating portfolio and suppliers, and implementing joint reduction efforts with our business partners.

Our greenhouse gas emissions and energy consumption data reflect all our business sites and emission facilities (100%)* and third-party verification has been conducted for Scope 1, 2, and 3 emissions for SK D&D and our subsidiaries (DDI, DDPS).

Since SK D&D has completed the spin-off of its renewable energy division on March 4, 2024, SK eternix Co., Ltd., the new entity, is now operating in the green energy development and power generation business. Detailed activities and achievements related to these businesses are disclosed on the SK eternix’s website.

SK Eternix Webpage