'Petrochemical companies need to go green to survive'

Kim Jun, president and CEO at SK Innovation, talks about how important it is for the company to go green. / Courtesy of SK Innovation

By Kim Hyun-bin

Kim Jun, president and CEO of SK Innovation, says the company's direction for future growth needs to focus on going green ― although it might be difficult especially for a petrochemical company.

The CEO and his stakeholder's main concerns are how to put the eco-friendly aspect into “the growth vision of SK Innovation.”

“Going green isn't an idea that suddenly popped up yesterday. SK Innovation has been considering this issue for quite some time. Reintroducing this issue right now serves a different purpose than it did previously. It is not an issue that we can worry about in the distant future, and we simply can't put it off any longer,” Kim said.

He pointed out that if there are no significant changes, the accelerated rate of climate change will force a rapid transition to green energy sources to the point where existing energy and chemical companies will lose value, which threatens their very survival.

“SK Innovation has sought and found a solution for survival and growth, and that is Green Balance 2030. Green balance means to mitigate the adverse impacts of management activities on the environment and produce a more positive impact as a way to create a balance between the two,” he said. “We aim to achieve this balance by 2030. This demonstrates the fact that without fearing or attempting to avoid the green issue, we will turn it into a momentum for innovation.”

The CEO says it is near-impossible to completely change the features of the petrochemical business overnight and needs to be taken a step at a time. First is to increase the portion of the company's investment portfolio dedicated to the company's green businesses such as its electric car batteries and materials.

“We are also aiming to gain a stronger foothold in the United States, China and Europe, and become one of the world's top 3 companies in the field of electric vehicle batteries and the world's top company in materials,” he said. “Not only that, we will set up an eco-friendly battery value chain, taking into consideration not only battery production but also repair, rental, reuse and recycling, to grow as an e-mobility solution provider.”

SK Innovation has been working to develop eco-friendly products as well as improving the production processes.

“Technology is being discovered to address environmental issues by applying eco-friendly processes, innovatively reducing CO2 emissions, implementing water treatment and so on,” he said.

“An eco-friendly ecosystem befitting the vision of Green Balance 2030 is being created together with customers. Good examples of what has been achieved thus far include the development of eco-friendly packaging materials, recyclable asphalt, ultra-lightweight materials for improving mileage and a high-performance eco-friendly lubricant.”