SK D&D is committed to minimizing the potential negative environmental impacts of its business activities by establishing an environmental management system aimed at promoting sustainable real estate development and expanding green buildings. In line with our commitment to creating a sustainable future where people, society, and the environment coexist in harmony, we have established and disclosed an Environmental Management Policy that reflects both our corporate values and strategic direction.

SK D&D’s Environmental Management Policy applies to all business sites, including the headquarters and subsidiaries. It is periodically reviewed and revised under the review and approval of the CEO, who holds ultimate responsibility for environmental management. To promote systematic environmental management, SK D&D has developed and implemented an Environmental Management System (EMS) Manual. We conduct internal reviews of environmental compliance and performance to ensure systematic environmental management and continuous improvement of our environmental initiatives.

To effectively implement environmental management at the enterprise level, SK D&D has established a dedicated organizational structure driven by the active involvement of the CEO and the Board of Directors. As the ultimate authority for environmental management, the CEO oversees the company’s Environmental Management System by expressing a firm commitment to environmental responsibility, approving environmental policies, and supervising performance outcomes. The Board of Directors, through the ESG Committee, conducts an in-depth annual review of SK D&D’s environmental management plans, implementation strategies, and performance. The Committee also monitors the performance and effectiveness of corrective actions taken to mitigate environmental risks.

The ESG Part, which serves as the dedicated environmental management department, regularly monitors environmental regulations and conducts environmental impact assessments. Based on these activities, it revises the company’s environmental policies and guidelines. Drawing from environmental data collected across business sites, the department sets strategic objectives, action plans, and improvement tasks, collaborating closely with relevant departments to implement initiatives and improvements. To promote the internalization of environmental management practices, SK D&D conducts training programs to raise awareness among employees, thereby minimizing the risk of environmental incidents. Key environmental issues, risks, and performance outcomes identified through these efforts are regularly reported to the ESG Committee to support the Board’s decision-making process.

To embed environmental management into the core of its business, SK D&D assigns KPIs related to environmental performance to the CEO, executives, and heads of each business division. These KPIs are linked to the company’s compensation and incentive systems, driving continuous improvement in environmental outcomes. In addition, company-wide environmental KPIs are established annually, aligned with overall business objectives and key initiatives, and implemented through a structured process.

In 2024, SK D&D set environmental KPIs with the goal of "establishing a foundational system to respond to mandatory sustainability disclosures," specifically through the development of a climate change response framework based on consolidated accounting standards. All associated tasks were successfully completed. To further enhance its environmental management, SK D&D consistently identifies and implements initiatives to improve environmental performance across all business areas—from acquiring eco-friendly certifications during real estate development to promoting environmentally conscious practices during operations. Particularly in office development, SK D&D is responding to evolving demands for future workspaces by applying ESG-focused design and operational strategies, aiming to deliver environmental sustainability and create positive value for both tenant companies and end-users through eco-efficient work environments.

SK D&D is also expanding the number of projects that obtain green building certifications, with the goal of certifying all residential and commercial buildings it develops. Among ESG KPIs assigned to the CEO, tasks include implementing RE100 as part of the company’s Net Zero commitment. For the Head of the Frontier Division, responsible for real estate development, ESG-related KPIs include developing sustainable office designs that integrate eco-friendly features.

SK D&D rigorously manages waste generated not only at its headquarters but throughout all stages of space development and operation. This commitment aims to prevent resource waste and environmental pollution caused by real estate business activities.

Waste generated at the headquarters is managed according to an internal waste management system, while waste from business sites is legally disposed of and treated through external O&M service providers. To encourage employee participation in waste reduction, SK D&D operates a paperless office environment, mandates the use of personal mugs and tumblers to reduce single-use items, and conducts waste reduction campaigns.

At construction sites, SK D&D collaborates closely with business partners to minimize waste generation and promote strict separation and disposal of construction waste. Furthermore, to improve waste disposal facilities at the rental housing “Episode,” the company analyzed existing issues related to recycling stations and food waste disposal areas. Based on these findings, SK D&D is currently renovating the internal waste treatment facilities by enhancing readability, providing recycling guides, separating disposal zones, and installing hardware. Moving forward, SK D&D plans to progressively expand environmental improvement activities at the Episode recycling stations and implement waste reduction campaigns to support tenants in proper waste management and recycling.

Improvement of Recycling Station Environment at Episode

Improvement of Recycling Station Environment at Episode

SK D&D has established and operates a water usage reduction and management system at its headquarters to improve water use efficiency. At the Eco-hub building on the headquarters site, rainwater and groundwater collected from the rooftop and grounds are recycled as treated reclaimed water and irrigation water. Additionally, water consumption is reduced through the use of water-saving sanitary fixtures certified with an environmental label. In real estate development projects, SK D&D implements rainwater management systems to efficiently utilize rainwater and discharged groundwater. The company continuously strives to minimize water usage throughout its operations.

SK D&D conducts environmental impact assessments prior to construction activities in its real estate development projects to identify potential environmental effects in advance. The company implements measures that exceed legal and regulatory requirements to mitigate these impacts. To protect local ecosystems, SK D&D identifies key environmental impact factors and establishes and executes mitigation plans to safeguard nationally protected species and regionally protected wildlife, thereby minimizing ecosystem disruption. Based on the results of environmental impact assessments, SK D&D promotes the creation of green corridors and ecological passages near project sites to preserve nearby ecosystems. Furthermore, the company carries out mid- to long-term improvement tasks post-construction and continuously monitors residual environmental impacts.

SK D&D has established environmental management as a core company-wide priority to address the global climate crisis and to provide sustainable spaces for its customers. The company systematically implements key environmental initiatives and ensures comprehensive management of compliance with relevant laws and regulations throughout all phases of building development to minimize potential environmental impacts.

By regularly auditing its environmental compliance levels, SK D&D continuously strengthens its environmental management system without violations of environmental laws. Additionally, based on the environmental management manual, SK D&D identifies applicable laws and requirements related to its environmental activities and systematically manages its compliance obligations.

SK D&D actively contributes to reducing greenhouse gas emissions and energy consumption both directly and indirectly through its Net Zero initiatives and environmental investments in rental housing projects such as ‘Episode.’ To enhance employees’ environmental knowledge and capabilities and strengthen the momentum for environmental management, SK D&D conducts regular environmental training for all staff members.

Through the mySUNI education platform, SK D&D offers a variety of environmental courses on topics such as Net Zero, hydrogen, circular economy, and renewable energy generation. The company actively encourages employee participation in these programs to raise awareness of climate change and environmental issues while fostering a strong sense of social responsibility toward environmental protection.