SK Hynix's 2020 Social Value (SV) performance showed that while the company's economic contribution increased due to improved semiconductor market conditions, the environmental sector deteriorated as greenhouse gas emissions increased.

SK Hynix announced its 2020 Social Value (SV) creation results on the 10th.

Since 2019, major SK affiliates have been quantifying and announcing the social value created in the previous year in three areas: 'indirect economic contribution,' 'business social performance,' and 'social contribution social performance.'

SK Hynix announced on this day that its 'indirect economic contribution performance,' including taxes, employment, and dividends, was 5.3737 trillion won; its 'business social performance' in the social (labor/shared growth) and environment sectors was -596.9 billion won; and its 'social contribution performance,' including donations and social contribution activities, was 110.6 billion won.

As the semiconductor industry conditions improved starting last year, the amount of social value created increased by 32% (1.3143 trillion won) compared to the previous year in terms of indirect economic contribution.

On the other hand, the negative impact on business social performance increased by 11% (57.1 billion won) compared to the previous year due to environmental impacts such as greenhouse gas emissions. Social contribution social performance increased by 41.3 billion won due to intensive support for overcoming COVID-19.

Looking at each sector in detail, the company stated that it achieved significant results in indirect economic contribution across all areas of taxation, employment, and dividends.

First, performance in the tax sector increased significantly by 211% compared to the previous year. In addition, regarding the employment of vulnerable groups, SK Hynix achieved its target for the mandatory employment rate for people with disabilities last year (3.1% of total employees for private companies with 50 or more permanent employees). Dividend performance also increased by 17% compared to the previous year. SK Hynix anticipates that its indirect contribution to the economy will continue to grow as the semiconductor market gains momentum this year.

Business social performance in the environmental sector incurred 944.8 billion won in negative costs, an increase of 127.2 billion won compared to 2019. This is a result of the characteristics of the manufacturing industry, which uses large amounts of water and electricity and emits greenhouse gases during the semiconductor production process.

An SK Hynix official stated, “As a result of company-wide efforts such as resource recycling, greenhouse gas emissions per unit of production have decreased compared to before,” adding, “However, the company feels apologetic to stakeholders regarding the fact that absolute emissions have increased.”

He went on to promise, “We will focus on reducing the total amount of greenhouse gas emissions by making multifaceted efforts, such as developing environmental technologies, to mitigate adverse environmental impacts.”

However, SK Hynix partially offset the negative impact in the environmental sector by recording 322.4 billion won in the 'social' sector, a 21% increase from the previous year, and 25.5 billion won in the 'product/service' sector, a 116% increase.

In this regard, the company has strengthened support for partner companies by operating the 'Technology Innovation Enterprise Program' and the 'Analysis/Measurement Support Center' to increase the localization rate of materials, parts, and equipment.

In addition, sales of low-power products, such as SSDs that drastically reduce carbon dioxide emissions, have expanded.

Social contribution performance recorded 110.6 billion won, a 60% increase compared to the previous year. Last year, SK Hynix worked to overcome COVID-19 by participating in the 'Thanks to You Challenge' to encourage medical staff and supporting smart devices necessary for home education for low-income children to build a social safety net.

Going forward, SK Hynix plans to concentrate its entire corporate capabilities on implementing 'SV 2030,' a mid-to-long-term plan for creating social value announced last January. Through this, the company aims to achieve key goals such as carbon neutrality, revitalization of the semiconductor ecosystem, establishment of a social safety net, and the establishment of a corporate culture based on diversity and inclusion.

In particular, SK Hynix, the first in the memory semiconductor industry to join RE100, has decided to accelerate improvements in the environmental sector, including minimizing greenhouse gas emissions, reducing waste, and expanding water resource recycling. Along with this, the company stated that it will strive to expand eco-friendly technologies by continuing its efforts to replace existing HDDs with low-power SSDs.

SK Hynix Vice President Kim Yun-wook (Head of Sustainable Management) said, “We have been enhancing the objectivity and reliability of our measurement while announcing our social value performance for the past three years,” adding, “Going forward, we will seek ways to contribute to humanity and society by strengthening ESG management and expanding the scale of social value creation.”