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Environmental

Green Building and Real Estate Development

SK D&D's Guide to the Future Workplace (Office Core Value Model)

SK D&D is responding to the evolving trend where ESG values directly impact office assets by establishing a strategic direction for the development of future workspaces based on its “Office Core Value Model.” This model centers on three core pillars—Product, People, and Planet—and incorporates two connecting values: Social Responsibility and Environmental Sustainability, for a total of five key pillars.

Office Core Value Model

To internalize these five core values into projects, SK D&D has established the following four “Next Workplace Visions” and applies them in an integrated manner.

  1. ① Time + Future: Remodeling and design that connect the past and future while preserving local context
  2. ② Green Lifecycle x Solution: Reduce carbon emissions throughout the entire lifecycle, from development to operation
  3. ③ Hyper Personality: Create hyper-personalized spaces based on user characteristics and data-driven insights
  4. ④ Public = Culture: Create open communities that connect with local communities beyond physical space

Through this approach, SK D&D aims to internalize ESG throughout the entire lifecycle, from the early stages of development to operation, and achieve the integrated goals of reducing carbon emissions, recycling resources, improving user health, and coexisting with local communities.

In particular, in terms of the environment, we are implementing our long-term vision of realizing a 2050 Net-Zero City by reducing carbon emissions across the building lifecycle (LCA-based design), applying eco-friendly materials and smart systems, and introducing design standards based on domestic and international certification requirements.

Sustainable Real Estate

Real Estate Development Strategy

SK D&D is committed to minimizing environmental impact throughout the entire life cycle of real estate development. The company pursues development projects that take into account factors such as land use and accessibility, ecosystem and indoor environmental quality, energy use and environmental pollution, ease of maintenance, raw material and resource utilization, and water resource management. To enhance transparency and credibility in the environmentally friendly performance of its buildings, SK D&D aims to achieve 100% green building certification for all commercial and residential properties. This is done by acquiring third-party certifications such as Green Building Certification and Building Energy Efficiency Rating Certification. Furthermore, the company is actively engaged in green remodeling of aging buildings to improve energy efficiency, thereby contributing to the restoration of local ecosystems and the reduction of greenhouse gas emissions.

Sustainable Investment

SK D&D applies an ESG risk review process when evaluating projects and investment opportunities, with the aim of building a sustainable supply chain and minimizing the potential for ESG risks throughout the value chain. The process begins by assessing whether the target falls under investment exclusion or "sin industries" as defined by global institutional investors. Next, the project is reviewed for inclusion in domestic and international green taxonomies. Based on this, potential ESG risks are analyzed. Projects deemed to have low ESG risk—or those with established risk mitigation plans—are then brought to the Working Group Meeting, where an ESG risk review report is submitted to support the investment decision-making process. By preemptively identifying and managing ESG risks alongside financial and legal considerations, SK D&D strengthens the long-term sustainability of its investment projects.

ESG Risk Review Process

Green Building Design and Operation

SK D&D aims to strengthen environmental factors throughout the entire lifecycle of buildings—from design to operation—in response to growing consumer demand for green buildings and the broader trend toward sustainable development. From the early design phase, the company adheres to both domestic and international green building certification standards and design guidelines, with the intention of obtaining third-party certifications. This approach ensures the application of eco-friendly technologies that maximize energy efficiency and resource utilization. In addition, SK D&D prioritizes the purchase and use of environmentally certified materials to minimize the negative environmental impact of its buildings. During the operation phase, the company offers services, furniture, and spaces that meet customer needs, while also planning and running environmentally themed community programs. These initiatives aim to encourage the participation of various stakeholders and continuously improve the environmental impact of its buildings and residential environments.

Episode Yongsan 241 Case

Green Building Development Process

Environmental Impact Reduction Effort in Green Building Operation Phase

Life Cycle Assessment

Life Cycle Environmental Impact Assessment

SK D&D applies Life Cycle Assessment (LCA) when developing its rental housing brand, Episode, to measure the environmental impact throughout the entire lifecycle of the building—from material production to disposal. To minimize environmental impact, eco-friendly materials are used and high-efficiency energy systems are installed during the design and construction phases. During the operation phase, SK D&D implements environmental impact management plans at each stage, including providing services aimed at establishing an ESG ecosystem for residents.

Building Life Cycle

Episode Life Cycle Environmental Impact Assessment Outcomes

CategoryUnitProductionConstructionOperationDisposalTotal
Episode Sinchon CampustCO2eq/m27.82E+022.68E+019.29E+029.23E+001.75E+03
Episode Yongsan 241tCO2eq/m26.97E+022.70E+012.58E+037.84E+013.38E+03
Episode Suyu 838tCO2eq/m24.29E+025.62E+001.61E+032.82E+022.33E+03
Episode Sinchon 369tCO2eq/m26.16E+022.67E+011.01E+038.38E+001.67E+03
Episode Seocho 393tCO2eq/m24.32E+025.66E+001.43E+036.49E+011.93E+03
Episode Gangnam 262tCO2eq/m23.93E+025.67E+001.27E+031.81E+021.85E+03
  • *The building lifespan is set at 50 years in accordance with relevant guidelines.

Environmental Performance Management

SK D&D actively practices environmental management not only at its own sites but also across its investment and operational sites. The company collects and manages environmental performance data related to energy use, renewable energy, and water resources utilized in its Episode brand. Based on quantitative environmental performance, SK D&D identifies areas for improvement and develops tailored measures to reduce environmental impact according to the conditions of each site, implementing customized ESG ecosystem expansion projects for each Episode location.

2024 Environmental Performance of Episode

CategoryUnitSeongsu101Seongsu121Sinchon 369Suyu 838Seocho 393Gangnam 262Yongsan 241Guui Welltz
Total energy consumptionTJ3.94.421.151.022.029.01.225.7
Renewable energy consumptionTJ3.32.800.30.20.40.10.2
Renewable energy consumption rate%83.365.300.60.91.95.70.7
GHG emissions reduction*tCO2eq147.1136.0042.426.148.99.017.1
Water consumptionton5,3397,44730,04369,29427,08016,94257,13251,355
  • *This performance pertains to the rental housing sector among the products developed and operated by SK D&D. For Episode Seongsu 101 and 121, these sites fall within the organizational boundary and are RE100-compliant business locations. The greenhouse gas reductions include those achieved through the purchase of Renewable Energy Certificates (RECs) as well as reductions from on-site renewable energy generation used within the buildings.

Sustainable Space Design

SK D&D actively responds to increasing customer demand for sustainable lifestyles amid global climate change by incorporating various eco-friendly elements in residential and office spaces to provide an enhanced spatial experience. The company aims to obtain third-party environmental certifications for all buildings it develops, minimizing environmental impacts and enabling residents to pursue environmentally sustainable lifestyles. Additionally, SK D&D operates diverse services designed to enhance environmental awareness and promote greater social participation, encouraging customers to embrace sustainable living.

Furthermore, SK D&D prioritizes environmental and social values throughout the entire process—from space design and construction to operation and management. To provide sustainable spaces and services, the company uses eco-friendly certified materials during building development and applies green technologies that minimize environmental impacts. Shared spaces such as kitchens, living rooms, and lounges are created to offer environmentally and socially friendly residential experiences, furnished with eco-friendly furniture and equipment that are operated sustainably.

Notably, 'Episode Suyu 838' was designed in partnership with design partners to offer a sustainable lifestyle. Approximately 80% of all furniture and accessories placed in Episode Suyu 838 are made from recycled or upcycled materials such as recycled fibers and PET bottles, resulting in an estimated carbon reduction of about three tons. In addition, the project used LVT flooring certified by the U.S. Environmental Protection Agency (EPA), minimized secondary processing, and utilized finishes that are biodegradable or recyclable, reflecting a resource-circulating approach throughout the interior. All furniture and equipment in shared spaces were designed for repurposing, repair, reuse, and recycling. Moreover, a home furnishing subscription service that allows borrowing appliances and furniture was introduced to enhance the sustainability of the space.

Sustainable Design and Performance

Urban Regeneration Projects

Green Remodeling

SK D&D is undertaking green remodeling projects that convert low-efficiency, aging buildings into high-efficiency green buildings. By improving not only the interior and exterior design but also upgrading insulation, HVAC systems, and other high-efficiency equipment, the company aims to enhance living environments, reduce heating and cooling costs, and improve energy efficiency. In the mid to long term, these efforts are expected to contribute to increasing building value. Additionally, in line with the national "ZEB (Zero Energy Building) Mandatory Roadmap," SK D&D is committed to expanding zero energy buildings and proactively implementing PEB (Plus Energy Building) to lead the way in realizing environmental value through energy self-sufficiency in buildings.

Green Remodeling Implementation Plan and Expected Benefits

Green Remodeling Performance

CategoryCompletionAreaDetails
Susong SquareFeb. 201715,235 pyeong (Approx. 50,363㎡)Remodeling tailored to the customer through horizontal expansion and modernization.
Myeongdong Cheonghui BuildingJun. 20191,782 pyeong (Approx. 5,890㎡)Hotel development through remodeling a complex building in the central commercial district of Myeongdong.
31 BuildingOct. 202012,353 pyeong (Approx. 40,836㎡)Remodeling by preserving the historic value of the existing building, and modernizing it.
Myeongdong N BuildingDec. 20224,143 pyeong (Approx. 13,695㎡)Development of a landmark within the CBD areas by remodeling the SK Networks building.
Chungmuro OfficeJun. 20246,546 pyeong (Approx. 21,639㎡)Office development through expanded remodeling and change of use in the core CBD area.

Urban Renewal Projects

SK D&D is actively contributing to the restoration of urban functionality and the improvement of substandard infrastructure in deteriorated areas where aging and defective buildings are concentrated. These efforts align with the Seoul Metropolitan Government’s Urban and Residential Environment Improvement Master Plan. In this context, SK D&D has developed a prime-grade office building near City Hall Station and a business hotel in the Myeongdong area. These projects reflect comprehensive environmental considerations, including eco-friendly design standards, energy efficiency, and improved community accessibility, thereby fostering a more sustainable urban environment.

Since 2023, SK D&D has been leading the Bongnae District 3 Urban Environment Redevelopment Project near Seoul Station. The company has acquired approximately 4,592.5 square meters of land in Namdaemun-ro 5-ga, Jung-gu, where it plans to develop an office and neighborhood facility complex spanning approximately 63,268 square meters over seven basement levels and 20 above-ground floors. This project is being carried out through DDIVC No.1 REITs, a real estate investment company in which SK D&D holds a 49% stake. To ensure systematic and stable funding, the project has secured a total of KRW 155 billion through a structured financing scheme, including long-term borrowings, bridge loans, and project financing.

Even after the development phase, DDIVC No.1 REITs is working to maintain the building’s eco-friendly performance by implementing green leases that incorporate environmental goals and performance indicators into lease agreements with tenants. Asset management is entrusted to D&D Investment, a specialized asset management firm, to enhance operational expertise and long-term sustainability. Through these efforts, SK D&D aims to continuously improve environmental performance and strengthen collaboration with the local community.

Looking ahead, SK D&D plans to further expand into a variety of sustainable real estate initiatives, including mixed-use urban investments, urban regeneration projects, and environmentally friendly redevelopment of contaminated brownfield sites. Through these initiatives, SK D&D is committed to leading the way in sustainable urban development and creating long-term environmental value.

Urban Redevelopment Project Performance

CategoryCompletionAreaDetails
Seosomun OfficeJun. 201911,527 pyeong (approx. 38,105 ㎡)Prime office development as part of an urban redevelopment project in deteriorated areas near City Hall Station.
Business Hotel in JeodongAug. 20206,552 pyeong (approx. 21,659 ㎡)Business hotel development as part of an urban redevelopment project in deteriorated areas of Myeongdong.
Seoul Station Office(Under development)-Office development for local community redevelopment as part of the 2030 Seoul Urban and Residential Redevelopment Project.

Eco-Friendly Certifications

SK D&D is committed to achieving 100% Green Building Certification for all residential and commercial buildings it develops. Each year, the company establishes certification targets and consistently meets them. As of the first half of 2025, SK D&D has obtained a total of 36 Green Building Certifications, and it plans to continue incorporating ESG elements into all future development projects to further reduce the environmental impact of its buildings.

A notable example is Think Factory Dangsan, which holds a Grade 1+ Building Energy Efficiency Certification and an Excellent Grade Green Building Certification. From the design phase, the building has incorporated an energy management system, renewable energy generation facilities, and effective shading designs to deliver significant energy savings.

Number of Green Building Certifications Acquired

CategoryUnit~2021202220232024
Green Building Certification (G-SEED)Cases12211
Building Energy Efficiency Rating CertificationCases15112
LEED*Cases1000
TotalCases28323
Cumulative totalCases28313336
  • *LEED (Leadership in Energy and Environmental Design): A green building certification program organized by the U.S. Green Building Council

Operation Status of Episode

Status of Green Building Certifications

Building NameCertification NameCertification DateCertification Institutions
Episode Yongsan 241Green Building Certification (General)Mar. 2024Korea Environmental Industry & Technology Institute
Building Energy Efficiency Rating (1+) – ResidentialMar. 2024Korea Institute of Green Climate Technology
Building Energy Efficiency Rating (2) – Non-ResidentialMar. 2024Korea Institute of Green Climate Technology
Gangnam Station OfficeGreen Building Certification (Excellent)Mar. 2024Korea Green Building Council
Building Energy Efficiency Rating (1+)Mar. 2024Korea Institute of Green Climate Technology
Saeng-gag Gongjang in Dangsan-DongGreen Building Certification (Excellent)Nov. 2022Korea Green Building Council
Building Energy Efficiency Rating (1+)Nov. 2022Korea Research Institute of Eco-Environmental Architecture
Episode Suyu 838Green Building Certification (Excellent)Mar. 2022Korea Productivity Center Quality Assurance
Building Energy Efficiency Rating (1+) – ResidentialNov. 2021Korea Institute of Green Climate Technology
Building Energy Efficiency Rating (1+) – Non-ResidentialNov. 2021Korea Institute of Green Climate Technology
Episode Gangnam 262Green Building Certification (Excellent)Nov. 2021Korea Green Building Council
Building Energy Efficiency Rating (1+) - ResidentialNov. 2021Korea Institute of Green Climate Technology
Building Energy Efficiency Rating (1+) – Non-ResidentialNov. 2021Korea Institute of Green Climate Technology
Episode Sinchon 369Green Building Certification (Excellent)Nov. 2021Korea Productivity Center Quality Assurance
Building Energy Efficiency Rating (1+)Nov. 2021Korea Productivity Center Quality Assurance
Episode Seocho 393Green Building Certification (Excellent)Jul. 2021Korea Green Building Council
Building Energy Efficiency Rating (1++)Jul. 2021Korea Institute of Green Climate Technology
Business Hotel in PangyoGreen Building Certification (Outstanding)Jul. 2021Korea Environmental Industry & Technology Institute
Building Energy Efficiency Rating (1+)Jul. 2021Korea Institute of Green Climate Technology
Business Hotel in Jeo-dongGreen Building Certification (Excellent)Nov. 2020Korea Environmental Industry & Technology Institute
Building Energy Efficiency Rating (1)Sep. 2020Korea Institute of Green Climate Technology
Seongsu SK V1 center (Ⅰ)Green Building Certification (Excellent)May 2020Korea Productivity Center Quality Assurance
Building Energy Efficiency Rating (1+)May 2020Korea Productivity Center Quality Assurance
Seongsu SK V1 center (Ⅱ)Green Building Certification (Excellent)May 2020Korea Productivity Center Quality Assurance
Building Energy Efficiency Rating (1+)May 2020Korea Productivity Center Quality Assurance
Seongsu Desian Plex(W)Green Building Certification (Excellent)Apr. 2020Korea Productivity Center Quality Assurance
Building Energy Efficiency Rating (1+)Mar. 2020Korea Productivity Center Quality Assurance
Seosomun OfficeLEED PlatinumDec. 2019U.S. Green Building Council
Green Building Certification (Excellent)Sep. 2019CreBiz Certification Body
Building Energy Efficiency Rating (1)Aug. 2019Korea Real Estate Board
Mullae Office SK V1 centerGreen Building Certification (Outstanding)Aug. 2019Korea Green Building Council
Building Energy Efficiency Rating (1+)Aug. 2019Korea Research Institute of Eco-Environmental Architecture
Gangnam Station BIEL 106Green Building Certification (Outstanding)Apr. 2018Korea Green Building Council
Building Energy Efficiency RatingApr. 2018Korea Institute of Green Climate Technology
Mullae-Dong OfficeGreen Building Certification (Excellent)Dec. 2017Korea Environmental Industry & Technology Institute
Building Energy Efficiency Rating (1)Nov. 2017Korea Institute of Green Climate Technology