We are responding speedily to climate change trends in the real estate and renewable and new energy sectors. We are establishing plans to convert our portfolio to eco-friendly, low-carbon business beyond reducing carbon emissions, striving for more fundamental changes. Not only that, we have set and implemented SBTi-based greenhouse gas reduction targets according to TCFD recommendations in order to respond to the NZE2050 global milestone.
Strategies for Climate Change
Responses against Climate Change
Scenario Analysis and Risk Management
We examine mid to long term business strategies by analyzing the global milestones for the IEA’s 1.5℃ scenario (NZE2050). In case of real-estate development business, land use and convenience, use of raw materials, indoor environment, energy efficiency, greenhouse gas emissions, and ease of maintenance are considered in order to minimize the impact on the environment throughout the life-cycle. Based on this considerations, we will secure eco-friendly certifications for all development projects.
Net Zero Roadmap
2030 Net Zero
SK D&D’s management goal in responding to climate change is to ‘create sustainable space and energy’. We have established mid-to long-term plans for Scope 1, 2 Net Zero and long term plans for Scope 3 Net Zero. We hope to develop sustainable space through strengthening of eco-friendly portfolio and active ESG management, realizing Net Zero. We will also continue our efforts to respond to climate change while communicating progress for 2030 Net Zero with external stakeholders.
2030 Net zero Roadmap
Net Zero Implementation Method
Reduction of direct and indirect emissions (RE100 & EV100)
We plan to implement strategies to reduce Scope 1 and 2 GHG emissions from real estate development and operation and renewable energy business as a mid-term strategy for net zero business sites. We plan to continue our GHG reduction strategies by reestablishing Net Zero targets and announcing RE 100 (100% conversion to renewable energy) implementation.
Reduction of other indirect emissions (ZEB & eco-friendly building development)
Reduction of Scope 3 GHG emissions is a key part of our long-term strategy for net zero GHG emissions throughout the entire value chain. SK D&D aims to minimize impact on the environment throughout the real estate development process. We plan to reduce GHG emissions along our value chain by obtaining green building certification, supplying clean energy, and strengthening GHG emission management across the entire investment and operation portfolio.
Net Zero Strategy
Green House Gas Emissions
Managing GHG Emissions
We are managing and responding to company-wide GHG emissions and energy consumption in order to understand the seriousness of the climate crisis. Although SK D&D is not included in the domestic GHG-related system, we are preemptively building and operating a company-wide GHG and energy management system in accordance with domestic GHG emission calculation and certification guidelines. In addition to GHG emissions management at business sites (Scope 1 and 2), we also manage emissions outside of business sites (Scope 3), completing third-party assurance to ensure accuracy and reliability.
* GHG target management system, emission trading system, etc.
** SK D&D does not emit hazardous chemicals, ozone depleting substances, or air pollutants due to the nature of its business.
Scope 1 & 2 GHG Emissions
2022 Scope 1 & 2 GHG Emissions
| Category | Total emissions | Scope 1 | Scope 2 |
|---|---|---|---|
| 2022 | 1,053.14 | 242.65 | 810.49 |
SK D&D Emissions and Energy Intensity
| Category | Unit | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| Scope 1 emissions | tCO₂eq. | 169.06 | 236.97 | 242.65 | |
| Scope 1 | Fixed combustion | tCO₂eq. | 11.17 | 93.09 | 115.27 |
| Mobile combustion | tCO₂eq. | 157.89 | 143.88 | 127.38 | |
| Scope 2 emissions | tCO₂eq. | 557.45 | 758.00 | 810.49 | |
| Scope 2 | Electricity | tCO₂eq. | 509.80 | 705.69 | 747.59 |
| Heat | tCO₂eq. | 47.65 | 52.31 | 62.90 | |
| Total GHG emissions | tCO₂eq. | 726.51 | 994.97 | 1,053.14 | |
| GHG emissions intensity | tCO₂eq./KRW 10 billion | 10.340 | 11.283 | 18.691 | |
- * GHG emissions data reflected SK D&D’s entire business sites and emission facilities, and third-party verification has been performed for SK D&D and each subsidiary for Scopes 1, 2, and 3.
- * Intensity is calculated based on sales from the current year.
SK D&D Energy Consumption and Intensity
| Category | Unit | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| Electricity | TJ | 10.50 | 14.75 | 15.62 |
| Heat | TJ | 1.37 | 1.45 | 1.70 |
| Fossil fuels | TJ | 2.59 | 3.96 | 4.15 |
| Total energy consumption | TJ | 14.45 | 20.16 | 21.47 |
| Energy intensity | TJ/KRW 10 billion | 0.206 | 0.229 | 0.381 |
- * GHG emissions and energy consumption data reflect all of SK D&D’s business sites and emission facilities. (100%) - Headquarters, Gasiri Wind Power Plant, Suncheon Solar Power Plant, Smart Work Centers, Episode Seongsu 121 * The intensity is calculated based on the operating revenue from last year
Scope 3 GHG Emissions
| Category | Unit | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| Category 3 Energy | tCO₂eq. | 54.19 | 75.64 | 80.50 |
| Category 6 Business trips | tCO₂eq. | - | 26.23 | 51.88 |
| Category 7 Commuting | tCO₂eq. | - | 194.79 | 276.74 |
| Category 8 Upstream leased assets | tCO₂eq. | - | 194.72 | 194.65 |
| Category 13 Downstream leased assets | tCO₂eq. | 7,933.35 | 8,373.50 | 8,378.02 |
| Category 15 Investment | tCO₂eq. | 41.49 | 4,257.57 | 16,426.76 |
| Total | tCO₂eq. | 8,029.03 | 13,122.47 | 25,408.55 |
- * Calculated from 2021 for Categories 6 and 7
Subsidiary (DDI, DDPS) GHG Emissions
| Category | Unit | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| DDPS | tCO₂eq. | 3.93 | 3.35 | 115.98 |
| DDI | tCO₂eq. | 34.96 | 29.78 | 42.12 |
- * Established DDPS through the merger of DDLS, which was physically separated from SK D&D, and DDPM, an existing subsidiary. (Sep. 2022)
Subsidiary (DDI, DDPS) Scope 3 Emissions
| Category | Unit | DDPS | DDI |
|---|---|---|---|
| Category 3 Energy | tCO₂eq. | 8.10 | 2.93 |
| Category 6 Business trip | tCO₂eq. | 26.39 | 5.94 |
| Category 15 Investment | tCO₂eq. | 33.49 | 18.36 |
| Total | tCO₂eq. | 67.97 | 27.24 |
Subsidiary (DDI, DDPS) Energy Consumption
| Category | Unit | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| DDPS | TJ | 0.08 | 0.07 | 2.31 |
| DDI | TJ | 0.72 | 0.62 | 0.84 |
- * Established DDPS through the merger of DDLS, which was physically separated from SK D&D, and DDPM, an existing subsidiary. (Sep. 2022)
Scope of GHG management
GHG Emissions Mitigation
Eco Hub, where our company headquarters is located, is equipped with a geothermal system, a solar power system, and Smart Glass and other energy consumption reduction systems in order to mitigate environmental impacts and conserve energy in the operation and maintenance phases. Furthermore, our subsidiaries and rental houses we construct also use renewable energy and are equipped with high efficiency energy facilities to mitigate GHG emissions.
GHG Emissions and Energy Consumption Reduction
GHG Emissions and Energy Consumption Reduction
| Category | Unit | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| Renewable energy consumption | MWh | 311.35 | 450.62 | 667.27 |
| GHG emission reduction | tCO₂eq. | 144.87 | 209.67 | 310.48 |
| Energy consumption reduction | TJ | 2.99 | 4.33 | 6.41 |