ESG
Metrics
Establishing Baselines and Measuring Progress
As the saying goes,
"what gets measured gets managed."
So it’s no surprise that as interest in our environment, climate and social equity have increased, so too have the calls for greater transparency by public and private market participants.
Several SK portfolio companies report ESG metrics, but many do not. Among those that do, the information that is reported and methods of collection vary widely.
In late 2022 SK will launch an ESG metric reporting program for use by all portfolio companies. Our goal has been to create a system that reflects the issues and interests that are most relevant to our sectors of focus while prioritizing pragmatism and practicality.
SK will leverage portfolio ESG metric reporting to meet multiple objectives:
- Establish baseline performance at the facility, company, fund and portfolio level
- Help prepare portfolio companies to respond to external ESG data requests and questionnaires
- Complement the development of portfolio company sustainability materiality assessments
- Track progress through annual reporting
Rather than adopt a single external framework, SK built a bespoke approach by drawing inspiration from multiple well-established metric systems including:
Rather than adopt a single external framework, SK built a bespoke approach by drawing inspiration from multiple well-established metric systems including:
- Climate & Energy
- Air Quality
- Product Safety & Stewardship
- Circularity & Waste
- Water
- Process & Occupational Safety
- Human Capital
- Community Engagement
- Supply Chain Practices
- ESG Governance Structure
- Ethics
- Anti-Corruption