With the increase of environmental and social problems, sustainability has become an increasingly important issue for both consumers and businesses throughout the globe. Businesses are seeking diverse measures, ranging from ethical sourcing to eco-friendly marketing, to remain competitive in the market, while consumers, who have become more sensitive to the environmental impacts of their purchasing decisions, are choosing more eco-friendly and socially responsible goods and services.

According to a survey conducted by OpenText in 2021, nearly nine out of ten global consumers said that they prioritize buying from companies that have ethical sourcing strategies in place. Moreover, a recent report from McKinsey found that top ESG performers are not only enjoying faster growth and higher valuations, but also achieving 5 to 10 percent cost reductions.

In Korea, SK Telecom has been leading the ESG efforts by placing it at the core of its management philosophy. Believing that ESG is the best way to pursue sustainable growth for future generations, the company has incorporated ESG across all business segments, created an ESG Committee, and began measuring its contributions to the economy and society in monetary terms since 2018.

Targeted at achieving financial growth and fulfilling social responsibility at the same time, SK Telecom has been making new and innovative approaches based on its extensive ICT assets and large customer base.

Reducing carbon footprint through green ICT innovation

SK Telecom is leading the race to reduce carbon footprint through cutting-edge ICT. It is not only increasing the number of solar photovoltaic base stations but also actively applying Single RAN, a technology that enables integrated operation of 3G and LTE network equipment. With this technology, it moves closer to resolving the environmental pollution caused by the operation of telecommunication infrastructure by dramatically reducing the power usage. So far, it has earned around 10,000 tonnes of carbon credits. The company is also driving down energy consumption of its data centers with its high-performance, energy-saving AI semiconductor SAPEON.

As the first Korean company to join the Renewable Energy (RE) 100 global initiative, SK Telecom is aggressively expanding the use of new and renewable energy to achieve net zero goals by 2050. By 2030, the company plans to cut total carbon emission by almost 50 percent by 2030 compared to 2020 and get 60 percent of its electricity from renewable sources.

It is also working with diverse partners to reduce carbon generation in daily lives. In collaboration with local governments and coffee chains, it is promoting the use of multi-use cups at cafes to reduce plastic waste. Beverages in these stores are served in multi-use cups that can be later returned via smart kiosks equipped with vision AI technology. In Jeju alone, it has so far saved the use of 2.7 million single-use cups, which is equivalent to reducing 79 tonnes of CO2 emissions.

Tackling social issues with human-centered technologies

SKT is currently working to create an inclusive, barrier-free society with its AI technologies.

Many seniors living alone in Korea are now using ‘AI Care’, an AI-based senior care service, which enables them to lead safer, healthier and connected lives, while feeling less lonely and depressed. Through an AI speaker, Seniors can not only engage in emotional conversations and access useful information, but also take exercises to prevent dementia and ask for emergency assistance and care 24/7.

AI is also helping Korea to better cope with the COVID-19 pandemic. For instance, SKT’s AI-powered automated check-in call service has dramatically reduced the burden of healthcare professionals through monitoring of those under quarantine. The service also offered COVID-19 vaccine related information as well as monitoring for side-effects of the vaccine to better protect people’s health.

The company’s AI technology is also being used to improve the quality of life for people with visual impairments by allowing them to easily use diverse features of a visual assistant app with just their voice.

Embracing ESG principles for sustainable growth

Since effective corporate governance is key to achieving long-term growth of a company in an ever more competitive business landscape, SK Telecom continues to strengthen its governance by improving the composition of its Board of Directors, while strengthening both transparency and independence of the Board. Through rational and forward-looking management decisions made by the Board, the company is further enhancing corporate value and maximizing shareholder return.

By fully incorporating ESG principles and setting more ambitious sustainability goals, SK Telecom will be able to make more meaningful contributions to society, while creating long-term sustainable growth for all stakeholders.