SK Innovation , a holding company of SK Group , announced that this year it will adopt an internal carbon pricing system recently approved by its board of directors, as reported by the Korea Economic Daily on November 28. The system is designed to calculate the expected carbon emission from a new project and reflect it as a cost. SK Innovation will adopt this system to decide the priority of new business projects from an environmental, social, and governance (ESG) perspective. During the review process, the firm will naturally exclude new carbon-intensive businesses. 

SK Innovation stated that it had set the internal carbon price at a reasonable level based on future carbon price scenarios predicted by global experts. For example, SK Innovation’s carbon price is set from USD40 to USD95 per ton in 2025, and from USD60 to 105 in 2027. In the long run, the price will be set at USD120 per ton in 2030 and USD200 per ton in 2040. SK Innovation’s carbon emissions stood at 129.5m tons in 2021. During the first ten months of 2022, the firm lowered its greenhouse gas emissions by over 15% YoY, owing to its Net Zero strategy. Similarly, Singapore state investor Temasek announced plans this July to raise its internal carbon price from USD42 to USD50 per ton this year, before lifting it to USD100 per ton by 2030, in an effort to halve the net carbon emissions of its portfolio from 2010 levels by 2030 and reach net-zero emissions by 2050.

Sources:

https://www.kedglobal.com/esg/newsView/ked202211280005

https://www.koreaittimes.com/news/articleView.html?idxno=117617

https://www.straitstimes.com/business/companies-markets/temasek-raises-internal-carbon-price-to-us50-this-year