SK Innovation’s green transformation strategy receives praise

SK Innovation’s green transformation strategy receives praise

Conducted a comparative analysis on green transformation strategies between global petrochemical companies

  • By ICN Bureau | November 13, 2023

SK Innovation announced that Professor Kannan Ramaswamy of the Thunderbird School of Global Management at Arizona State University gave a presentation on a global peer group comparative analysis case study and shared the research results via video conference at the SK Seorin Building. This study is SK Innovation’s second intensive study following last year with more in-depth results.

Professor Ramaswamy analyzed the green transformation strategy promoted by SK Innovation and generated different advantages through comparison with similar companies. He concluded that the promoted strategy has three intangible values, a consistent and clear business strategy, excellent corporate culture, and a two-track innovation strategy. He also noted that the strategy has a high probability of success with the company’s entrepreneurial spirit.

Professor Ramaswamy said, “SK Innovation is one of the companies that is firmly pursuing large-scale changes toward an eco-friendly energy future. The willpower to implement this is reflected throughout the company, including its company-wide vision and business strategy.”

Global petrochemical companies with similar business structures, history, and business goals as SK Innovation were selected as the companies to be evaluated for comparison, and the level of implementation was analyzed on two axes: concentration of eco-friendly strategies and portfolio diversity.

Professor Ramaswamy cited that the clear future-oriented business vision that SK Innovation has maintained since its beginning along with the consistent leadership of the management team that implements this as SK Innovation’s distinguishing features. He highly evaluated these features as a major contributing factor to SK Innovation’s performance in a rapidly changing environment.

Professor Ramaswamy said, “Despite the company’s identity as a petrochemical company, it announced a bold vision to reduce its carbon footprint in 2030 and achieve net-zero by 2050.” He added, “Within just a few years, SK Innovation showcased clear business results in the eco-friendly field, demonstrating a true corporate innovation.”

He recognized SK Innovation as a company that achieves both technological scalability and economic feasibility without being complacent. He explained that SK Innovation’s pursuance of a two-track strategy that strengthens the efficiency of existing businesses and expands new businesses based on its diversified portfolio. He added that this is due to the fact that the company continues to explore the difficult tasks of securing sustainable profitability for fuel-based businesses and discovering future business options.

He stated, “A rapid business model transition is taking place in all SK Innovation affiliated business areas, such as SK On and SK IE Technology’s business expansion into mobility and SK Geo Centric securing chemical recycling technology.”

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