SK D&D is establishing an environmental management system (EMS) aimed at reducing potential negative environmental impacts arising from its business activities, with a focus on expanding sustainable real estate and green buildings. We have established and disclosed an environmental management policy that aligns with our commitment and business direction to create a sustainable future where people, society, and the environment coexist harmoniously. Our environmental management policy applies to all business sites, including the headquarters and subsidiaries, and is reviewed and approved by the CEO, the highest authority in environmental management, during its formulation and revision.

SK D&D has developed and implements an environmental management system (EMS) manual and has completed achieving environmental management system certification (ISO 14001) for all operating sites that comprise headquarter and energy-related operations. Moving forward, we will continue to internally monitor environmental compliance and performance based on ISO 14001 standard requirements and environmental regulations. Through post-management audits conducted by certification bodies, we aim to ensure the appropriateness of our environmental management system operations and promote systematic environmental management.

Environmental Management System Certificate(ISO 14001)

Environmental Management Policy

SK D&D has created an environmental management organization based on the active participation of the CEO and the Board of Directors to effectively implement group-wide environmental management. As the senior environmental management executive, the CEO is responsible for expressing commitment to environmental management, approving revisions to environmental policy, and overseeing environmental management performance, thereby supporting and supervising the company’s environmental management system. The Board of Directors, through the ESG Committee, annually reviews our environmental management plans, strategies, and implementation performance, and monitors the effectiveness of corrective actions to mitigate environmental risks.

The ESG Part, the dedicated environmental management department, regularly conducts environmental regulation monitoring and environmental impact assessments to revise environmental management policies and strategies. Additionally, it sets environmental strategies and targets based on the environmental information of each business site, establishes implementation plans and improvement tasks to achieve these targets, and executes them in collaboration with related departments. Furthermore, to internalize environmental management, the ESG Part promotes trainings to raise environmental management awareness among employees, aiming to minimize the occurrence of environmental risks. Key environmental management issues, risks, and performance derived from these activities are regularly reported to the ESG Committee, supporting the decision-making of the BOD.

SK D&D assigns environmental performance-related KPIs to the CEO, executives, and each business unit manager to internalize environmental management, linking performance levels of these KPIs with compensation and incentives to improve their environmental management performance. Additionally, annual environmental management KPIs are established and implemented in alignment with group-wide goals and activities. In 2023, environmental management KPIs were set to achieve goals such as ‘implementing RE100’, ‘developing ESG building solutions’, and ‘enhancing eco-friendly power generation’, all of which were successfully achieved.

To advance our environmental management, we identify and implement initiatives across all business areas to improve environmental performance. This includes obtaining eco-friendly certifications, installing energy-efficient facilities in real estate development or conducting environmental activities in the real estate operation phase. As of April 2024, SK D&D holds a total of 36 third-party eco-friendly certifications, and aims to obtain green building certifications for all residential and commercial buildings annually.

The CEO's ESG KPIs related to the environment include the task of implementing RE100 to achieve net zero emissions. The KPIs of the Head of Frontier division, who oversees real estate development, include the task of developing ESG building solutions (Green story) that incorporate eco-friendly elements into real estate development.

SK D&D rigorously manage wastes generation not only at its headquarters but also throughout all stages from space development to operations, aiming to prevent resource waste and environmental pollution associated with real estate activities.

Waste generated at the headquarters is managed according to an internal waste management system, while operational site waste is lawfully disposed of and processed through external O&M contractors. Additionally, to encourage employee participation in waste reduction, we operate a paperless office, mandate the use of personal mugs and tumblers to reduce disposable items, and implement waste reduction campaigns.

At construction sites, we make efforts to minimize waste generation and promote strict separation and disposal of construction waste through collaboration with business partners. Furthermore, to improve waste disposal facilities at Episode building, we have analyzed the issues with existing recycling and food waste disposal areas. Based on this analysis, we are currently conducting internal renewal activities for the waste disposal areas, including improving signage readability, providing recycling guidelines, separating disposal zones, and installing new hardware. We plan to progressively expand these environmental improvement initiatives for Episode waste disposal facilities across all sites and implement waste reduction campaigns to support proper waste management and recycling by residents.

Renewal Activities for Waste Disposal Areas in Episode

Renewal Activities for Waste Disposal Areas in Episode

SK D&D has established and operates a water consumption reduction and management system at its headquarters to enhance water resource efficiency. The Eco-hub building, our headquarter, collects rainwater and groundwater from rooftops and ground for reusing it as reclaimed or landscaping water. We also reduce potable water consumption by using water-saving sanitary appliances certified with eco-label certification. Furthermore, when advancing real estate development projects, we strive to meet water consumption standards by introducing rainwater management systems to utilize rainwater and runoff groundwater, and using water-saving devices.

SK D&D conducts pre-construction environmental impact assessments when carrying out real estate development projects to proactively identify environmental impacts caused by development activities, and implements measures that exceed legal requirements to protect local community ecosystems. By identifying environmental impact factors and implementing mitigation measures to minimize adverse effects, we aim to reduce ecosystem disruption and safeguard nationally protected species and local wildlife. Furthermore, based on the results of environmental impact assessments, we promote initiatives such as creating green belts and ecological corridors near project sites to conserve ecosystems. Even after completion of construction, we are committed to implementing mid- to long-term improvement projects and monitoring post-construction impacts even after construction completed.

SK D&D has prioritized environmental management as one of its corporate challenges and selected key initiatives to practice, aiming to respond to the global climate change crisis and provide sustainable spaces to customers. We are enhancing our environmental management system without any violations of laws, by integrating compliance with environmental laws and regulations, and regularly monitoring environmental compliance levels to minimize environmental impacts throughout the building development process

SK D&D identifies and manages the legal and regulatory requirements applicable to environmental management tasks under the Environmental Management System (ISO 14001). These identified legal and compliance obligations are periodically reviewed, at least annually, and internally communicated through appropriate methods such as training to ensure understanding and compliance among relevant employees.

SK D&D is directly and indirectly reducing greenhouse gas emissions and energy consumption through environmental investments aimed at achieving net-zero and enhancing the ESG (Environmental, Social, Governance) ecosystem of Episode. Additionally, we conduct regular environmental training for all employees to reinforce the environmental management capabilities and drive force by improving employees' environmental knowledge and skills. Through the mySUNI training platform, we offer environmental education with various contents such as net-zero, hydrogen, circular economy, and renewable energy generation. In 2023, our employees participated in a total of 72 environmental education programs, enhancing understanding of climate change and environmental issues and raising awareness of environmental conservation as responsible members of society.