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Company
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Safety∙Health∙Environment
SHE Performance

Safety∙Health∙Environment

We ensure happiness through SHE Management

SK innovation applies its own strict environmental standards that include managing air pollutants,
water pollutants and wastes

Climate Change Management

SK innovation has been managing greenhouse gas emissions and energy consumption based on the government's ‘management-by-objective
operation guidelines’, since the company was selected as being subject to the policy. We were also the first in Korea to adopt an internal emission
trading scheme in 2007. We further established a set of execution measures which mainly revolves around the nationwide emission trading system
that started in 2015. We are operating emission trading system operation procedures to comply with the relevant laws and regulations and to
improve per-unit greenhouse gas emissions compared to energy consumption.

In addition, we are operating GEMS (GHG & Energy Management System) which is interfaced with OIS (Operation Information System) intended for
systematic management of information such as energy consumption by production activity and greenhouse gas emissions. GEMS collects daily
information from OIS and automatically calculates greenhouse gas emission, enabling us to systematically estimate and manage emissions while
checking and efficiently responding to the annual objective achievement status.

Energy Consumption/GHG Emissions


Type	2016	2017	2018	2019	2019(Targeted)	2020(Target)
Energy Consumption(MWh)	51,104,325	52,290,305	53,877,294	45,404,321	45,391,689	44,820,475
GHG Emissions (tCO₂eq)¹⁾	12,765,304	12,884,478	12,870,112	12,518,151	12,796,308	12,392,968

¹⁾ GHG Emissions (Scope1&2)

Air Pollutants Management

We apply strict standards on air pollutant emission management to minimize the discharge of air pollutants. We continue to monitor environmental
contaminant emission status with the introduction of TMS (Tele-Metering System), a remote monitoring system, in major discharge facilities. To
ensure pleasant air quality in and around our networks, we operate odor prevention facilities and VOC channels, based on environmental issues of the
neighboring areas.

Air Pollutant Emissions Volume


Type	2016	2017	2018	2019	2019(Targeted)	2020(Target)
NOx Emissions (metric tonnes)	8,188	7,909	8,541	7,359	8,261	7,285
SOx Emissions (metric tonnes)	4,085	3,950	3,103	2,188	3,055	2,166
VOC (metric tonnes)	359	332	323	297	360	299
Dust (metric tonnes)	200	159	158	136	158	137

Waste Management

Under our waste management system, we deliver most of the collected and discharged waste to specialized waste treatment companies with proven
capabilities to have the wastes incinerated or buried. We transport waste oils, among designated wastes, to a renewable fuel plant to be used in
renewable fuel production, and extract only metal substances from wastes that contain metals for recycling. These are part of our efforts to minimize
wastes.

Waste Discharge by Type


Type	2016	2017	2018	2019	2019(Targeted)	2020(Target)
Designated Waste (metric tonnes)	42,360	50,229	59,326	67,491	63,676	66,816
General Waste (metric tonnes)	68,854	61,919	68,332	74,803	76,062	75,407

Environmental Investment

[Unit : KRW million]


Type	2016	2017	2018	2019
Total environmental investments & expenses	69,789	86,962	105,823	164,152
(Investment Plan for Existing)	(27,197)	(30,533)	(51,485)	(82,024)
Capital investments¹⁾	31,008	28,051	50,917	84,907
Operational expenses²⁾	38,771	58,911	54,906	79,182
Environmental Benefits³⁾	9,632	28,883	59,954	46,508

¹⁾ Capital investments includes expenditures related to energy saving, process improvement, product improvement, education and training costs, etc.
²⁾ Operational expenses includes expenditures related to the operation of environmental facilities, operation of resource conservation & recycling facilities, waste disposal cost, etc.
³⁾ Environmental benefits include savings and cost avoidance from by-product disposal, process improvement and water recycling, as well as from tax incentives, etc.