Figure 1. SK hynix received the Best ESG Bond award at the 2023 IFR Asia Awards dinner

The Inner Workings of SK hynix’s Triple-Tranche Bond

SK hynix’s triple-tranche bond was noted for being creative and offering a variety of investment options while adhering to the needs of both the issuer and investors. The bond was comprised of three segments: a USD 750 million 6.25% 3-year conventional bond, a USD 1 billion 6.375% 5-year sustainability-linked bond (SLB)¹, and a USD 750 million 10-year 6.5% green bond². The balance of the SLB and green bond in the same transaction drew particular attention for offering something unique to the market.

The SLB, which was a first for a global semiconductor memory manufacturer, has a core environmental-related KPI. By 2026, it aims for at least a 57% reduction in Scope 1 and Scope 2³ greenhouse gas (GHG) emissions intensity⁴ compared to a 2020 baseline.

¹Sustainability-linked bond (SLB): A fixed-income bond tied to predefined ESG objectives that are measured through predefined KPIs. The interest rates of the bond can vary depending on whether the issuer achieves its objectives.
²Green bond: A debt security issued by an organization to finance or refinance projects that are positive for the environment and/or the climate.
³Scope 1 and 2: Scope 1 refers to direct emissions generated in the production stage, while Scope 2 describes indirect energy-related emissions generated in the process of making electricity or steam used in the workplace.
⁴Greenhouse gas (GHG) emissions intensity: The amount of GHG released per production capacity for SK hynix’s semiconductor memory.

Meanwhile, the net proceeds from the green bond have been allocated towards the financing or refinancing of environmental projects outlined in SK hynix’s Green Financing Framework. These include sustainable water and wastewater management, energy efficiency, pollution prevention and control, and terrestrial and aquatic biodiversity conservation.

These bonds play a key role in helping SK hynix reach its sustainability goals, such as reaching net zero emissions by 2050. Its environmental commitments are further highlighted by its status as a founding member of the global Semiconductor Climate Consortium, the first consultative body which targets GHG reductions throughout the semiconductor value chain.

Green Bond Funds a More Sustainable Semiconductor Ecosystem

Figure 2. Allocation by category of the green bond’s USD 750 million proceeds

In addition to being the most popular portion of the triple tranche deal, the green bond has realized significant advancements in SK hynix’s products as well as its environmental efforts. A total of 92.8%, or USD 696 million, of the bond’s total proceeds (USD 750 million) was allocated by the third quarter of 2023, with all of the funds expected to be allocated by the end of 2023 (awaiting confirmation of fourth quarter data).

[Read the 2024 green bond annual report for more information on its impact here]

Figure 3. The green bond’s positive effect on water management from 2020 to 2023

Among the funds, USD 6.90 million was allocated to sustainable water and wastewater management. Efforts included work on a regional municipal water project, construction of a drainage reuse system for a cooling tower, and improvements on a water pollution treatment facility. As a result, the company expects to see an increase in its water reuse rate and a reduction in wastewater discharge.

Figure 4. DDR5 offers reduced power consumption compared to its predecessor

SK hynix allocated its largest portion of the green bond’s proceeds for improving energy efficiency as the company invested USD 681.16 million in realizing significant related advancements in the company’s products. These developments included its industry-leading server DRAM DDR5 achieving a 70% increase in server bandwidth compared to DDR4, while its power consumption decreased by 14.4% compared to the previous generation. The performance per watt of the company’s latest SSD product, PS1010 E3.S, also improved by 85% from the earlier generation PE8110 E1.S.

Figure 5. An ecological park near SK hynix’s Icheon main campus which uses recycled water

A further USD 750,000 was allocated to terrestrial and aquatic biodiversity conservation. These funds supported construction of a large public ecological park near SK hynix’s Icheon campus which stretches the area of nearly four American football fields. At the park, crystal-clear water comes from the campus’ wastewater treatment plant and flows into the Jukdang Stream in Icheon.

Figure 6. Reduction of NOx emissions in tons at the Icheon and Cheongju fabs

Another USD 6.96 million was allocated to pollution prevention and control. The proceeds funded monitoring systems for atmospheric management, infrastructure for nitrogen oxide reduction, and a temperature reduction system in both the company’s Icheon and Cheongju fabs. Consequently, from 2020 to 2023, emissions of nitrogen oxides (NOx) were reduced by around 530 tons in these two major fabs. In addition, air pollutant analysis systems and water quality measurement systems have been installed in the fabs to monitor for environmental problems, minimize environmental harm, and make restoration efforts.

Figure 7. Financial Management Head Hyungmo Yang highlights how the bond supports SK hynix’s environmental goals

“Our triple-tranche bond offers varied investment opportunities while also supporting our sustainability efforts,” said Hyungmo Yang, head of Financial Management. “In particular, the green bond funds environmental innovations such as increased product energy efficiency, improved wastewater management, and pollution reduction. Going forward, the bond’s proceeds will continue to help us meet our environmental goals.”

The post SK hynix Wins IFR Asia Award for Innovative Sustainability Bond first appeared on SK hynix Newsroom.

“Create the highest, grandest vision possible for your life, because you become what you believe.” These words from media personality Oprah Winfrey are particularly poignant on International Women’s Day (IWD) as they highlight how belief helps women achieve success at work and beyond.

This mentality has undoubtedly played a part in the rise of female leaders across offices worldwide. At SK hynix, efforts to boost inclusion have seen the number of female executives and team leaders rise in 2022 from the previous year. To encourage the inclusion of more female workers and leaders, it is important to hear from women with values and traits that inspire those around them.

In a special interview to mark IWD 2024 on March 8, the SK hynix Newsroom asked six women from the company’s offices around the world to describe a belief that motivates them to improve themselves. From striving for the highest standards to spreading positive energy, discover the beliefs that have taken the interviewees to the next level.

What Belief Inspires You to Improve Yourself Both Inside and Outside of Work?

“Being on a team that manages the technical and quality issues of SK hynix’s flagship products including GDDR¹ and HBM² can get a bit overwhelming at times. The fact that my decisions could impact our company’s revenues or product returns keeps me on my toes. But I view such challenges as opportunities. Since setbacks are inevitable, we must focus on the next steps instead.

“Also, I was the first female and youngest expat to assume this role, which added even more pressure. It didn’t make it any easier that I had to move to the U.S. from South Korea by myself. However, I found that you often don’t realize what you’re capable of until you’re challenged. Facing challenges is a testament to one’s capabilities and a catalyst for growth. So, I always say…Just go for it!”

¹Graphics Double Data Rate (GDDR): A type of high-performance memory designed for applications with high bandwidth requirements, such as graphics processing units (GPUs).
²High Bandwidth Memory (HBM): A high-value, high-performance product that revolutionizes data processing speeds over conventional DRAMs by vertically connecting multiple DRAMs with through-silicon via (TSV) technology.

“I’m a firm believer in reaching for the highest standards of excellence in my work and beyond. To reach such levels, you need to find ways to become efficient and prevent problems from recurring. That’s why I create guidelines that track the difficulties and problems I run into when working on projects. This habit has made it easier to find solutions for issues at work.

“I also feel proud when my colleagues are able to reduce their work times and become more efficient by following my guidelines, because I know how satisfying it is to see yourself growing. I like to tell my colleagues to strive for the best standard in everything you pursue.”

“My high school basketball team was all about positive vibes, and this team culture translated into good results for us. Our positive attitude and desire to improve is summed up by the fact that we would sometimes even practice without our coach.

“Just as I did on the basketball court, I always have an upbeat attitude at work. Although everyone occasionally lets their emotions get the best of them, I’ve been fortunate to work with team members and customers who maintain their positive energy no matter what. You want to work with these kinds of people and help them in even the smallest ways. That’s why I have an optimistic approach to work as I believe spreading good energy makes all the difference.”

“At our fab in Wuxi, I was nominated by my co-workers as the ‘model employee’. It was truly gratifying to know that I was picked for my work ethic and leadership as I feel tremendous satisfaction when my efforts are acknowledged by the people around me. It’s also equally significant when I get the chance to make an impact in my organization and community. So, when I was chosen to be the company’s representative at China’s National People’s Congress, promoting SK hynix’s various contributions to the public sector was at the top of my mind.

“In the process, I really wanted to address the needs and well-being of my coworkers and help solve issues we see in society as being a leader comes with the moral responsibility to look out for others.”

“I enjoy finding the optimal solution to problems as I know that my capabilities will improve as a result. When travelling with friends, I identify and resolve any issues in the itinerary, including restaurants, transport, and so on, to make our journey more comfortable. Likewise, at work I am never phased by any issues and will collaborate with my co-workers to find solutions.

“No matter how much time it takes, I’ve learned that persistent determination paves the road to solving the problem. The key is to be careful, deliberate, and show perseverance in everything you do. In the long run, it makes life easier for myself and the people around me.”

“Straight out of college, everything was new for me at work. I would just follow what my seniors were doing all the time. Taking notes from them, I gained knowledge as an engineer and the right attitude. I feel lucky to have met so many great co-workers during my time at the company.

“My parents named me ‘Hane’ which means ‘exemplary’ in Korean. They were the ones who showed me that anyone could change the world one small step at a time. Fortunately, I was lucky enough to meet other role models throughout my life who helped me get to where I’m today. So, just as my name suggests, I also want to become someone who can lead others in the right direction.”

The post Women of SK hynix Reveal Inspirational Beliefs on International Women’s Day 2024 first appeared on SK hynix Newsroom.

The post Our ESG Progress, Visualized: How SK hynix’s Sustainability Efforts Are Building a Better World first appeared on SK hynix Newsroom.

The post Our ESG Progress, Visualized: SK hynix’s Innovations for a Greener Environment first appeared on SK hynix Newsroom.

[Click here to download the report]

The SK hynix Sustainability Report 2023 evaluates and analyzes the company’s ESG management performance in line with the five pillars of its ESG strategy framework PRISM. The report provides an overview of SK hynix’s ESG-related information, including the goals for its mid- to long-term roadmap, its annual targets, and the company’s performance in achieving its 2022 targets.

Regarding goals related to PRISM’s first pillar “P (Pursue a brighter future based on our philosophy)”, the company reduced the integrated incidents rate, which represents the percentage of accidents at industrial sites, by 1.8% in 2022 compared to the previous year. Also, SK hynix recorded the value created from SV social contribution activities of KRW 250.6 billion, vastly exceeding the annual target of KRW 190.3 billion.

For the second pillar “R (Restore the environment to preserve the planet)”, the report contains data on goals related to climate action, water stewardship, and the circular economy¹. Water stewardship plays a key role in the semiconductor industry and SK hynix has been making efforts in this area by expanding water reuse infrastructure and optimizing water use. This has resulted in the company conserving 49.43 million tons of water in 2022, while its cumulative water conservation total since 2021 reached 99.23 million tons. In terms of climate action, SK hynix achieved RE100² with a 100% renewable electricity usage rate at overseas sites. Companywide, SK hynix increased its renewable electricity usage rate from 4% in 2021 to 29.6% in 2022 by actively utilizing the green premium system³. Lastly, SK hynix received the platinum Zero Waste to Landfill (ZWTL)⁴ validation, the highest level obtainable, by diverting 100% of waste away from landfill for all domestic sites.

¹ Circular economy: A model of production and consumption, where items and products are reused whenever possible rather than discarded.

² Renewable Electricity 100 (RE100): A global initiative for businesses to procure 100% of electricity via renewable electricity.

³ Green premium: The additional cost for a product or service that does not emit greenhouse gases. The green premium helps to measure progress on sustainable technologies and determine which industries and manufacturing processes need to innovate to achieve net zero emissions by 2050.

⁴ Zero Waste to Landfill (ZWTL): A certification from Underwriters Laboratories (UL) that evaluates a company’s actual waste recycling rate and landfill volume based on its level of resource recycling and the final landfill volume of residuals generated during waste disposal.

In the “I (Innovate our technology for tomorrow)” pillar, SK hynix achieved significant progress in 2022. This included improving scrubber processing⁵ efficiency by 94% domestically and increasing the energy efficiency of its high-performance DRAM HBM by 1.28 times compared to the baseline year of 2020.

⁵ Scrubber processing: The process of treating waste gases generated during the semiconductor manufacturing process.

Meanwhile, in the “S (Synchronize sustainability efforts with our partners)” pillar, SK hynix achieved its annual target for investments in technological cooperation to promote shared growth as the total reached KRW 368.2 billion in 2022, while the cumulative amount stood at KRW 698.6 billion since 2021.

Regarding the final pillar “M (Motivate our people toward excellence)”, SK hynix set goals to increase diversity and develop employees’ skills. Among them, SK hynix made promising progress in female representation as the proportion of female executives reached 2.1% in 2022 from 1.9% in 2021, and the proportion of female team leaders rose to 4.2% from 3.7% over the same period.

▲ SK hynix’s Sustainability Reporting System site

In order to transparently disclose information related to sustainable management, including the company’s ESG activities, SK hynix established the Sustainability Reporting System (SRS) in November 2022. Users can also download the SK hynix Sustainability Report 2023 from the SRS website.

*Note: The reduction rate of the integrated accident rate mentioned in this article for the year 2022 has been updated (as of July 28, 2023) from our initial figure to the final figure submitted to the Ministry of Employment and Labor.

The post SK hynix’s ESG Achievements Revealed in Sustainability Report 2023 first appeared on SK hynix Newsroom.

When Mi-sook Kim first started working at SK hynix’s global HQ in South Korea over 30 years ago, she noticed that most of her female colleagues retired after getting married and having children. However, following significant cultural shifts, Mi-sook now sees an increasing number of female coworkers “putting themselves first” by focusing on their career to build a better life.

While progress has been made in improving women’s rights and opportunities in the workplace, women are still underrepresented in many professional fields, particularly tech-related sectors. Looking at the semiconductor industry, a 2022 report from Accenture for the Global Semiconductor Alliance (GSA) reveals that women represent only 20-25% of the workforce. Going up the ladder, less than 10% of leaders in the industry are women, according to a report from the same source in 2021.

At SK hynix, gender diversity is above the industry average as women accounted for over a third (37%) of its entire workforce as of 2021. In order to further encourage diversity and equality in the company, SK hynix also introduced its ESG strategy framework PRISM in 2022. One of its key goals includes increasing the gender ratio of the board to 30% by 2030.

These measures highlight the company’s focus on promoting gender equity, which is also the theme of this year’s International Women’s Day (IWD). Held on March 8^th, IWD 2023 has a message to #EmbraceEquity, a call for everyone to recognize that each person has different circumstances and highlights the need to allocate resources and create opportunities to ultimately reach equality for women.

Three Global Offices, Three Women Role Models

To mark this year’s IWD, SK hynix’s newsroom interviewed three female employees across its global offices who are making a difference in their workplaces. In addition to Kim who is a team leader in the Korean HQ’s HR Planning team, SK hynix America’s Rene Chostner is also an experienced leader who has been working in the tech sector for over 20 years. At the Chinese HQ in Wuxi, Shalan Zhou is a proud female engineer who desires to “share happiness” at work. The trio shared insights about their journeys, lessons learned, and values they have maintained throughout their careers.

Q. Can you tell us about how your career has progressed at SK hynix? What are some of your highlights while working at the company?

Currently in charge of employee compensation, personal tax withholding, and welfare support, Kim has emphasized precision in her work while handling various tasks during her three decades at SK hynix.

Kim: “I place a special focus on the practicality of each process and the elimination of as many human errors as possible. In 2015, I received the CEO’s award when I was part of a taskforce that investigated the criteria for the changed standards to employment insurance premiums. We received a total refund of 10.5 billion won (USD 8.3 million) as a result.”

At SK hynix America, Senior Director of Venture Investment Chostner and her team drive strategic investments in relevant startups in fields including memory, fabrication process, AI/ML, data centers, IoT, and mobility technologies. The team has invested nearly USD 100 million since 2016, leading to successful IPOs and M&As.

Chostner: “Our investment activities not only provide market intelligence and early access to innovative technologies for the advancement of our current products, but they also aim to distinguish potential future growth engines for SK hynix to provide optionality and speed in the face of market disruptions and paradigm shifts. The journey has been exciting and humbling as we collaborated with and supported our portfolio companies. We are striving to create more strategic value and a positive impact for both SK hynix and the startup/venture community.”

In China, Zhou and members of the Analysis Team have proved to be pivotal in the advancements of the company’s products.

Zhou: “Since joining my team 15 years ago, I analyzed an array of products including the company’s flagship DRAM products. As our team has introduced new techniques in product analysis whenever a product goes through an upgrade, our analytical skills have been enhanced tremendously which have contributed to improving the quality and yield of products.”

Q. What are some of your most important lessons on developing one’s career? And can you describe the most important values that you uphold as a worker in as few words as possible?

For Kim, her key word is “accountability.” Throughout her long career at the company, she has been known to help colleagues with tasks that are outside of her duties and has welcomed changes in her role.

Kim: “I have always had an interest in things that were even outside of my work scope, and I have always thought that I was solely responsible for the outcome of my work. Even when people would ask me about tasks that I wasn’t familiar with, I would tell them that I would check and report back to them. This naturally led me to find out about work outside of my comfort zone, and I became more open to changes.”

Chostner noted the three “A’s” that have carried her throughout her career: “Ask—for information, opportunity, support, and feedback. Assert—your ideas and opinions with confidence. Act—follow through and own your work.”

As someone who identifies herself as “cheerful” and “enthusiastic,” Zhou placed “facing difficulties with a positive attitude” as her most important lesson learned. “You have to continue learning and keep up with the pace of other members who are developing themselves,” she added.

Q. What are some things that you are doing to ensure you continue growing as an influential worker at the company? How do you think you can help or influence other female employees to reach their full potential?

Collaboration is what comes to mind for Kim.

Kim: “You don’t get promoted for just doing your job well. To become a successful leader, you need to focus on the people who are around you. To make the team perform well, you need to deal with those people, develop them, and, finally, motivate them to do a good job. So, I emphasize communication that encourages people. I also take time to share my knowledge. Every year, I set aside one-on-one time with my team members to hear about their challenges and to suggest solutions for them.”

It is her philosophy to “give out the greatest amount of encouragement and rewards” for even the “smallest of positive results.”

Chostner finds that “unconscious bias” at the workplace limits the potential of workers—whether female or male. As a leader, she wants to ensure that workers are not afraid of trying new tasks and taking on new challenges. “Knowing that unconscious bias exists is not enough. We need to look for it and commit to take steps to counteract it.”

Similarly, Zhou stresses a “happy workplace atmosphere” that can enhance cohesion in her office by also running one-on-one sessions. These happy hours with female members of the department carry the intention of “fully understanding their needs and ideas while encouraging them to actively put forward their suggestions and opinions.”

As Kim says, leaders need to “give first” to ensure “those who grow with their support become the ones who have their backs later.”

Q. What is something that you would like to say to all your fellow female employees at SK hynix? What are some things that they should keep in mind or remember as they manage various roles in the workplace and in their homes?

Kim: “If there are any female members who are afraid to be a leader because they are not sure they can juggle work and family at the same time, I hope they start to change the things that they have control over bit by bit, get people around them on the same side, and expand their horizons to achieve growth.”

Chostner: “Just like oxygen masks on an airplane, make yourself a top priority. Let’s allocate time and energy for self-care.”

Zhou: “Women should be happy both in the workplace and in their personal life. We have many roles in our life as children, wives, parents, and colleagues among others. Balancing work and family is a lifelong homework for everyone.”

SK hynix Continues to Develop and Encourage Women

Individual prowess and effort are what led to the work accomplishments of these three women, but support from SK hynix will become a most important factor in making sure that more female talents follow in their footsteps.

Accordingly, Chostner believes that the company can provide its female workers with adequate support for career development by “recognizing and removing additional hurdles rooted in unconscious bias and establishing a clear career development track, a transparent guideline for promotion, a mentorship program for all genders, and an unconscious bias training company-wide.”

Current employee support initiatives at SK hynix include the Women in Leadership Program which provides tools and experiences for female employees to grow into role models at the company. Family-friendly programs in the form of special leaves and financial assistance for parents are also available to limit work interruptions of employees.

In addition to supporting and encouraging female employees like the three mentioned above, SK hynix strives to become a global company that values diversity, inclusivity, and equal opportunities for all employees by implementing policies and programs addressing gender inequality in the workplace.

In line with the theme of this year’s IWD, SK hynix wants its employees and stakeholders to know that it stands with its employees all across the world who #EmbraceEquity.

The post International Women’s Day Interview: How SK hynix is Cultivating the Female Leaders of Tomorrow first appeared on SK hynix Newsroom.

SK Group’s Vision of a Carbon-Free Future

Figure 1. SK hynix and seven other affiliates of SK group presented their ‘Net Zero’ aspiration under the slogan “Together in Action”.

SK companies have teamed up with 10 US-based partners to present their booth under the slogan “Together in Action,” the group’s message to turn their Net Zero aspiration into action. At CES 2022, the group committed to reduce carbon emissions by 200 million tons by 2030, or 1% of the global carbon reduction targets while maintaining its goal of achieving Net Zero by 2050.

This year, eight of SK’s affiliate companies are showcasing a total of 40 carbon reducing technologies as part of the group’s vision of a carbon-free future. SK hynix is expected to attract major tech customers and experts to its booth with its “Green Digital Solution,” the theme of its product lineup at this year’s event.

A Green Digital Solution

Figure 2. SK hynix is exhibiting a range of new and core products which offer significant performance improvements while lessening their environmental impact.

SK hynix is exhibiting a range of new and core products at this year’s CES which will offer significant improvements in performance and energy efficiency while lessening the impact on the environment. These products meet the growing needs of global tech companies which are requiring more powerful memory solutions for evolving advanced technologies such as AI, Big Data, autonomous driving, and the Metaverse.

The focal point of SK hynix’s exhibition is the PS1010 E3.S, the company’s latest enterprise solid-state drive (eSSD) which is being launched at CES 2023. The product features multiple 176-layer 4D NAND flash technology that supports PCIe 5.0 (Peripheral Component Interconnect Express) interface. The PS1010 E3.S, which includes a self-developed controller and firmware, offers increased reading and writing speed of 130% and 49%, respectively, compared to the previous generation of products. Moreover, as its performance per watt is 75% more efficient than its predecessors, it will help to reduce server operating costs and cut carbon emissions. The product is set to strengthen SK hynix’s competitiveness in the NAND sector.

Visitors to SK hynix’s booth can also see its HBM3, the world’s best-performing DRAM developed and mass produced by the company in an industry-first. As a Gen 4 HBM (High Bandwidth Memory) product, it offers increased data processing speeds compared to existing DRAMs, while also improving power efficiency by 23% compared to HBM2. Displayed alongside the HBM3 is another leading innovation, the GDDR6-AiM. This AI accelerator offers its own computational capabilities that significantly increase certain computation speeds and reduces energy consumption by 80% compared to existing products.

Last summer, SK hynix reinforced its superiority in Compute Express Link (CXL) solutions by developing its first DDR5 DRAM-based CXL memory samples which have flexible expansions of memory capacity and performance. The company also collaborated with SK Telecom to produce its Computational Memory Solution (CMS), the industry’s first CXL memory that’s integrated with computational functions. SK hynix’s CXL portfolio, which is planned to be mass-produced later this year, can also be seen at CES.

Sustainability Initiatives

Figure 3. Visitors experienced SK hynix’s innovative technology presented under the theme of a “Green Digital Solution”.

It is clear from the SK hynix product lineup at CES 2023 that the company is focused on simultaneously pushing the limits of technology while promoting sustainability in order to solve market and environmental challenges. These products align with SK hynix’s overall ESG strategy which drive the company’s future plans.

One of the key aspects of SK hynix’s ESG initiatives is undoubtedly the PRISM framework which was unveiled last year to enhance its ESG management. Detailing SK hynix’s ESG goals, PRISM relays the message that the company will transparently communicate with stakeholders while also reflecting its goal of spreading a positive influence around the world.

As a leader in the semiconductor industry’s fight against climate change, SK hynix joined the Semiconductor Climate Consortium (SCC) as a founding member last October. The SCC is the first global consultative body formed to reduce greenhouse gas emissions throughout the semiconductor value chain. SK hynix’s efforts to tackle greenhouse gases are further exemplified by its carbon footprint certification for its eSSD and cSSD products. Issued by the U.K. climate change organization Carbon Trust last summer, the certification assesses the impact of carbon emissions throughout the entire lifecycle of a product.

Building a Greener Tomorrow

Figure 4. SK hynix is working with other SK affiliates to build a greener tomorrow.

At a time when people are concerned about the environmental impact of their products, SK hynix is responding to their needs with its range of energy-efficient, high-performance products displayed at CES 2023. SK hynix is using this opportunity to discuss with fellow industry insiders and tech consumers about key industry and environmental issues to build a greener tomorrow.

The post SK hynix Presents Its Green Digital Solution at CES 2023 first appeared on SK hynix Newsroom.

SK hynix made an announcement on the 27^th 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.

The post Improving Transparency for Global Communication: SK hynix Releases ‘Sustainability Reporting System (SRS)’ first appeared on SK hynix Newsroom.

As one of the world’s largest semiconductor manufacturers, SK hynix has always been committed to delivering innovation and excellence. At the core of our breakthrough technologies and products is a global team of employees from diverse backgrounds and cultures, each with their unique perspectives, experiences, and expertise.

To mark Global Diversity Awareness Month, which celebrates the diversity of minds and beliefs held by all cultures around the world, let’s take a look at how SK hynix is fostering a corporate culture of inclusion, and creating an environment in which every employee feels valued and respected.

Diversity Is Policy

“SK hynix strives to enhance both corporate culture and technological competitiveness, with diversity at the heart of maintaining such a talented workforce,” said Sang Kyu Shin, Head of Corporate Culture at SK hynix. “As a global company, I am convinced that securing and fostering human resources that include people from diverse backgrounds, regardless of their gender, race, education, religion and other, is a critical factor to our long-term competitiveness.”

In accordance with PRISM, SK hynix’s goals by 2030 include strengthening the diversity of governance with a gender and nationality diversity ratio to at least 30 percent, tripling the ratio of women in executive positions, ensuring at least 10 percent of team leaders are women¹, and supporting local communities by helping create 1,000 jobs for people with disabilities or low incomes².

In selecting candidates for specific jobs, SK hynix focuses on the competencies and expertise that are required for the role. As of 2022, at least 94.5 percent of people are hired for permanent positions, providing a stable and secure environment in which people can work.

Empowering Women

SK hynix is committed to gender equality. It’s no secret that, historically, semiconductor companies worldwide have been characterized by a lack of gender diversity. According to a study by GSA and Accenture, women represent 10-25 percent of the entire semiconductor workforce, with the majority of companies still having less than 1 percent of women in director roles. As an industry leader, SK hynix recognizes the importance of addressing this issue head on and setting a standard. In doing so, it is breaking down barriers and redefining workplace culture and attitudes both in Korea, where the company is headquartered, and throughout operations worldwide.

At SK hynix, 26.3 percent of managers³ are female⁴, and the company is making every effort to increase this ratio. This includes through the Women in Leadership Program (WLP), which supports and encourages the growth of female employees across the SK Group. The training program includes meetings with female executives from SK Group companies, who serve as positive role models for the participants to grow within the company. Furthermore, the company is preparing to sign the Women’s Empowerment Principles (WEPs) CEO Statement of Support to demonstrate its commitment to empowering women, from nurturing female leaders to eliminating gender discrimination in the workplace.

SK hynix is also launching initiatives aimed at helping families balance work and life. This includes a three-month leave for taking care of children entering elementary school, extending shortened working hours during pregnancy, and implementing infertility treatment benefits and leave policies.

Recognizing Junior Talent

When a person leaves their job within several years of joining a company, the Korean job market often requires that they start over as a new recruit. SK hynix believes such practices have no place in the modern workplace. The Junior Talent program⁵, introduced in 2021, recognizes the experience that people have accrued even if their work history is only a few years, and supports them in their new jobs accordingly. The company organizes large-scale job fairs three times a year to promote the Junior Talent program.

In October 2021, SK Group signed a partnership with the Korean government to participate in the Youth Hope ON project. The project aims to create 32,000 jobs for young people from various backgrounds. SK hynix is committed to fostering semiconductor talent, recruiting young people from underprivileged communities and nurturing the innovative young entrepreneurs of tomorrow.

Underrepresented Communities Matter

SK hynix takes great pride in its commitment to ensuring the inclusion of underrepresented groups within its global operation, which includes a non-discriminatory recruitment process. Every effort is made to accommodate employees’ personal needs so that they can perform to their full potential.

As part of ongoing efforts to recruit people from all backgrounds, SK hynix aims to create 1,000 jobs by 2030 for people with disabilities or from low-income households to support local communities⁶.

The company takes things a step further with its Happymore subsidiary⁷. Happymore is a workshop for people with disabilities established in 2016, where employees make and clean smocks used in semiconductor cleanrooms. As of 2021, 405 persons with disabilities worked as full-time employees, making this the nation’s largest operation of its kind. Happymore also runs diverse programs to support and motivate workers so they can continue to grow into independent professions. Thanks for these efforts, Happymore was selected as an Exemplary Workplace by the Korean government in 2021.

Dedicated To Becoming a Global Top-tier Company

Based on the PRISM framework, in 2021, SK hynix achieved 11 percent women representation on its Board of Directors, created 918 jobs for people with disabilities and low-income households⁸, and generated KRW 120.3 billion in social contribution value. These are just some of the ways in which SK hynix is improving the company, and will strive to achieve even greater targets in 2022 and beyond.

SK hynix remains committed to bringing the best people on board without discrimination, and bringing the best out of them. As proud as the company is of its progress and success, SK hynix does not want to stop here and will continue on its journey to become a global top-tier company that sets the standard in the industry, and leads the way.

^1~2Figures from domestic sites

³Manager positions at SK hynix include Director (excluding Executive Director), Professional Leader (PL), Independent Part Leader, Field Manager, and Line Leader.

^4~8Figures from domestic sites

The post Diversity Drives Innovation at SK hynix first appeared on SK hynix Newsroom.