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Kannan Ramaswamy / Courtesy of SK Innovation |
A green transformation initiative led by SK Innovation, an energy affiliate of SK Group, has a "very high potential for eventual success," a global expert on energy and corporate governance in emerging markets, said Monday.
Kannan Ramaswamy, chair professor at the Thunderbird School of Management at Arizona State University, made the assessment in an op-ed posted on the SK affiliate's website, holding the Korean firm's carbon reduction plan in high regard.
"In the midst of such uncertainty, SK Group is one of the few that has stepped up its commitment with a clear sense of purpose and clarity," he said.
The comment followed SK Group Chairman Chey Tae-won's plan announced in 2021 targeting a 200 million ton reduction in carbon emissions by 2030, which roughly accounts for 1 percent of total global carbon reduction goals, and that the group would reach net-zero by 2050.
Although other CEOs have made similar promises, Ramaswamy said, SK Group enjoys some distinct advantages that increase the probability of its green transformation strategy succeeding.
The advantages span a wide spectrum, he said, ranging from the clarity of strategy and purpose, a carefully crafted plan of execution that calls for a well-thought-out series of resource deployments in support of the strategy. Also included are a willingness to explore game-changing technologies with an open mind through collaborative partnerships and an entrepreneurial management team that has infused the company with a "can-do" attitude that makes a big difference.
"I am persuaded to believe that the green transformation strategy has a very high potential for eventual success due to a mixture of clarity of purpose and vision, a well-reasoned plan of execution and the intangible advantage of culture and management systems," the professor said.
Ramaswamy cautioned that there will be skeptics, as evidenced in a BBC interview where Chey was asked if the green anchoring and transformation strategies could be seen as greenwashing, which refers to a company purporting to be environmentally friendly for marketing purposes, but does not achieve tangible results.
The question was reflective of the history of broken promises by some of the world's largest oil and gas companies. However, Chey's answer in his view stated the reality more clearly.
"Chey essentially retorted that even fossil fuel companies can change and that the results will be the evidence of their commitment," he said. "Contrary to accusations of greenwashing that has plagued other oil and gas companies in the past, SK seems to have embarked on clearly visible, deep and lasting changes suggesting that it is addressing the concerns of climate change in a more fundamental manner compared to some of its peers."
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