Transparent communication is becoming an essential element of ESG management. In order to meet the growing demands for ESG, SK hynix provides objective data through transparent management.
SK hynix made an announcement on the 27th that it established an Sustainability Reporting System, ‘SRS’, that comprehensively discloses ESG-related data to strengthen communication with various stakeholders—global customers, investors, SK hynix members, and the public.
In response to stakeholders’ demand for accurate, reliable data as well as demand for ESG public disclosure—expected to be made a requirement—SK hynix has established SRS to provide digitized, visualized data for better information delivery. Essentially, SRS has been established to better communicate SK hynix’s ESG management with the outside world. This article examines SRS in depth and explores the messages it holds.
What is SRS (Sustainability Reporting System)?
SRS is a system designed to publicly disclose ESG strategies, goals, activities, achievements, and policies. Recently, ESG has been in the spotlight as ESG management has risen in importance and ESG public disclosure has been en route to becoming a requirement. Consequently, in response to customers’ and investors’ growing interest in ESG, SRS was established to systemically manage and transparently disclose ESG data. On SRS, over 500 entries of ESG management data can be found. ESG here stands for Environmental, Social, and Governance. Detailed information regarding SRS can be found in the following SRS website: (https://sustainability.skhynix.com/).
SRS, what are the characteristics?
On SRS, information is organized according to PRISM1—SK hynix’s ESG strategic framework. [Related Article: SK hynix Takes a Fresh Look at ESG Through PRISM Framework] Various ESG information—direction of SK hynix’s ESG management, specific goals, and achievement rates— is neatly arranged following the PRISM framework.
1PRISM: A system containing mid- to long-term strategic directions and value propositions. ▲Pursue: Pursue a brighter future based on our philosophy ▲Restore: Restore the environment to preserve the planet ▲Innovate: Innovate our technology for tomorrow ▲Synchronize: Synchronize sustainability efforts with our partners ▲Motivate: Motivate our people toward excellence, PRISM is a five-letter abbreviation derived from the first letter of each word.
Additionally, SRS is designed to be user-friendly. Through responsive web features and infographics, it offers optimal user experience; visualizations and motion effects allow users to quickly go through massive amount of data without exhaustion. It also includes various filters and export features that enable users to filter and save relevant data.
Benefits to be derived from SRS?
SRS provides ESG data, which have been accumulating for over 4 years. The introduction of the SRS has a significant meaning in that it compiled ESG activities and data in one place to improve stakeholders’ access to various information. With SRS, customers, investors, and rating agencies can quickly retrieve relevant data from the website. Moreover, with SRS, SK hynix will be able to effectively respond to ESG public disclosure requirement that may be institutionalized in the future.
Introduction to SRS categories and SRS Guide
SRS comprises the following menus: ▲PRISM, ▲Goals, ▲Our Stories, and ▲Data Center. PRISM menu provides detailed information about PRISM—SK hynix’s ESG strategy framework.
PRISM embodies five messages, each letter representing each message. P (Pursue) represents its value to society, governance, and safety & health at work. R (Restore) comprises climate action, water stewardship, and circular economy. I (Innovate) symbolizes green technology, whereas S (Synchronize) represents shared growth. Lastly, M (Motivate) accounts for inclusive workplace and empowering people. In summary, Goals menu showcases following information: goals to be achieved by 2030 for each pillar of PRISM, goals to be pursued in the present, and goals achieved so far. In particular, progresses are provided in pentagon-shaped chart that symbolizes PRISM, allowing intuitive understanding of ESG achievements.
Our Stories menu highlights ESG stories collected from SK hynix members. Stories are categorized to each pillar of PRISM, and clicking an activity opens a page in SK hynix Newsroom. Under Our Stories menu, quotes by SK hynix members who have taken ESG management to heart can also be found.
Data Center menu, the core of SRS, provides ESG data in flexible, convenient ways. Users can select one of ESG tabs—E (Environment), S (Social), and G (Governance)—or one of PRISM tabs to find relevant data. In addition, the menu offers various filters—specific categories, regions, and periods—which allow users to search information that best suits their needs. Also, every data is visualized through charts and graphs, enabling users to quickly catch the trend of data at a glance.
Data Center menu provides ESG data that meet the global public disclosure standards. Global Standards, which is on the left, shows data organized as suggested by SASB2 and TCFD3 standards.
2SASB: Sustainability Accounting Standards Board. Announced SASB Standards in 2018 to present sustainability reporting standards for 77 detailed industries.
3TCFD: Task Force on Climate-related Financial Disclosures. Formed in 2015 by the G20 Financial Stability Board to demand voluntary and consistent climate-related disclosure. Announced 2017 ‘TCFD information disclosure recommendation’ so that the company can analyze climate change-related risks and opportunities and reflect them in their management strategies.
Lastly, Reports & Policies of Data Center provides various reports, policies, and guidelines. Annual Sustainability Report, as well as other special reports, such as TCFD Report and Human Rights Report are provided. SK hynix provides its policies on management, governance, human rights, SHE (Safety, Health, Environment), and supply chain in detail. Despite the sheer volume of information, information is neatly categorized and can be retrieved without difficulty. Each report is provided in Korean, English, and Chinese, illustrating SK hynix’s efforts to ensure global stakeholders’ easy access to information.
[MINI INTERVIEW] Story of SRS by SK hynix
Eun Hye Kwak (Technical Leader at ESG Engagement) and Hye Seong Cheon (Technical Leader at Management System PI), heads of SRS project who are currently in charge of internal and external communications of SK hynix’s ESG management activities were interviewed to learn more about the past and the future of SRS.
How did SRS come to be?
Eun Hye Kwak Stakeholders (investors, customers, and rating agencies) are demanding businesses’ transparent, reliable data disclosure. Consequently, SRS was envisioned to provide accurate data through an advanced system designed to collect internal data efficiently.
Hye Seong Cheon SRS epitomizes efforts to transform data into assets and establish a system for systemic data management. SRS was created to preemptively respond to 2025 ESG public disclosure requirement and to provide ESG data to stakeholders at all times in the environment that maximizes their convenience.
How data on SRS can be utilized?
Eun Hye Kwak SK hynix’s policies on Environment, Social, and Governance as well as its policies, activities and achievements can be found on SRS. In particular, responsive web and visualized data (charts/graphs) enable quick data search and analyses. SRS also allows users to select and download specific pages of the Sustainability Report, through which features reports can be reorganized and accessed.
Any difficulties encountered while developing the system?
Hye Seong Cheon Of recent, various ESG systems are being released to support ESG management. In order to provide optimal solution that best suits SK hynix, however, it was essential to first establish a system that best addresses SK hynix’s needs. Though there were many trial and errors, as a team, we were able to successfully release SRS by redefining ESG indices, standardizing operation processes, and establishing a data verification system.
With SRS, what would be the future like?
Eun Hye Kwak So far, ESG activities were reported only once a year through the Sustainability Report. From now on, information will be available on the webpage at all times, ensuring reliable information delivery to stakeholders. This in turn will not only build stakeholders’ trust but also help SK hynix prepare for 2025, the year in which ESG public disclosure would be made a requirement.
Hye Seong Cheon Internally, systemization will improve work performance and strengthen data monitoring and simulation. Data accumulated through such process could also help ESG related decision-making.
What would be the future of SRS?
Eun Hye Kwak As ESG management continues to garner global attention, ESG disclosure is also gathering more attention. As if to prove this, from 2025, publication of Sustainability Report, which is currently optional, will be changed to mandatory disclosure for KOSPI-listed companies of a certain size. Consequently, it is expected that demands for accurate, reliable data will be on the rise. In order to respond to the growing demand in a timely manner, SRS will not cease to transform.
Hye Seong Cheon SRS, established this year, delineates the first step towards IT-based ESG management. In the future, SRS will be transformed into an advanced ESG platform equipped with features specifically designed to help achieve goals for 2025 and 2030. Based on such mid- to long-term roadmap, collaboration with relevant departments will continue on.
