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SK hynix generates W7.5tr in social impact in 2022

June 12, 2023 - 16:47 By Kim So-yeon
SK hynix's social value figures in 2022 (SK hynix)

South Korean chips giant SK hynix said Monday that the total social value generated by the company last year was 7.5 trillion won ($5.8 billion), down from the previous year by 1.9 trillion won, or 20 percent.

Social value refers to the degree to which companies have contributed to solving or alleviating social problems facing stakeholders.

Economic contributions of the company under SK Group accounted for the bulk of it positive social value at 7.7 trillion won, despite a downturn in the semiconductors industry with a 20 percent decrease in financial performance compared to the previous year.

Meanwhile, its social contribution was assessed at 841.5 billion won. The company's social performance saw a significant increase of 29 percent from the previous year, attributed to efforts in enhancing a family-friendly corporate culture while annually selecting and supporting innovative tech companies as business partners.

Regarding environmental performance, the company generated a negative impact of 1.04 trillion won – worsening by 9 percent – due to an increase in the production of semiconductors, leading to higher resource consumption and greenhouse gas emissions. However, SK hynix has put efforts to minimize negative impacts by developing energy-efficient products, investing in greenhouse gas reduction facilities and transitioning to renewable energy through the Green Premium tariff scheme.

Notably, SK hynix became the first subsidiary of SK Group to conduct a social value evaluation that includes its business partners. SK hynix led the performance evaluation of its 13 business partners, revealing that a total of 1.4 trillion won in social value was generated last year. The company plans to contribute to building a system where business partners can independently build their environmental, social and governance data management capabilities.

"We will continue to collaborate with various stakeholders and make efforts to create social value across the entire semiconductor ecosystem, aiming to exert a positive influence on our society,” said Kim Yoon-wook, SK hynix's vice president and head of sustainability management.