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.

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.

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.

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.

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.

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.