Ethics Management < CSR

DBL

DBL is

DBL refers to SK’s management principle that strives to achieve shared growth with society by creating economic values(EV) and enhancing social values(SV) in all business activities. SK hynix has declared that the creation of our social values comes from the pursuit of employee happiness and contribution to resolving social issues. Recently, we expanded the meaning of social value to include happiness for all stakeholders. SK hynix measures social values to provide visible indications and points of reference, the areas subject to this measurement include the indirect economic contribution performance, business social performance, and social contribution performance.

DBL: EVEconomic Value; SVSocial Value

Double Bottom Line
This refers to the need to go beyond the "Single Bottom Line," Which represents the net profit positioned at the bottom of the ledgers: now, both EV and SV must be simulataneously pursued.

SV in 2019

Achlevements In Indlrect contrlbutlon to the economy

Value contributed to economy indirectly through business activities

Employment 2.8996trillion (KRW)
Dividend 684.0billion (KRW)
Tax payment 475.7billion (KRW)
4.593trillion (KRW)

Business achievements in social performance

Social value generated through productdevelopment, production, and sales

Environmental (Process) -817.7 billion (KRW)
Products/Services 11.8 billion (KRW)
Social (Labor/Shared growth) 266.0 billion (KRW)
-539.8 billion (KRW)

Achievements in social contribution

Values generated through social contributionactivities for local communities

Social contribution 25.7billion (KRW)
Volunteer work 200million (KRW)
Donation 43.4billion (KRW)
69.3billion (KRW)

EV in 2019

Revenue 26.9907trillion (KRW)

Operating profit 2.7127trillion (KRW)

net profit 2.0164trillion (KRW)

DBL HIGHLIGHTS

Customers

Research and Development: 1z Nano DRAM; 128-layerNAND; 460GB/s Data Processing HBM2E
Occurrence of process quality issue: Decreased by 19 %(Compared to 2018)
Customer Satisfaction Score: 4.43points (Out of 5 points)

Investors

Sales: 26,990.7billion (KRW)
Operating profit: 2,712.7billion (KRW)
Net profit: 2,016.4billion (KRW)
Dividend: 684billion (KRW)
Capital expenditures (Capex): 12,747billion (KRW)

Local Communities

Social Contribution Expenditure

61.4billion (KRW)

Number of ICT based social contribution beneficiaries (accumulative as of 2019)

Happy GPS 13,000people
Silver Friend 2,100people

Happiness Sharing Fund

2.88billion (KRW)

Number of Happiness Sharing Fund beneficiaries

4,553people

Tax and dues

507.7billion (KRW)

SHE

Greenhouse Gas Emissions¹⁾: Korea 4,950,738 tCO₂eq; Overseas 1,888,732 tCO₂eq
Waste: 511,216tons
Myanmar cookstove supply project: Reduced 300,000tons of Greenhouse Gas Emission
Product Carbon Footprint/Water Footprint: 1X DRAM 8Gb : 507g CO₂eq/each·9.38L H₂Oeq/each; 1X DRAM 6Gb : 405g CO₂eq/each·6.26L H₂Oeq/each
SHE Investments (Based on domestic worksites): 1,800billion (KRW)

1) Total of Scopes 1 and 2

Employees

Newly incorporated Newly incorporated
Total Number of Employees: 28,244people
Newly recruited employees (Domestic and overseas combined): 4,817people
Average compensation per person: 120million (KRW)

Suppliers

Amount of contribution to win-win growth: 268.5billion
Number of beneficiaries from Wage Sharing: 8,170people
Total Number of Suppliers: 2,878suppliers
Suppliers in the Shared Growth Partnership: 117companies
Total Purchase: 19,369.2billion (KRW)

Shared Infrastructure

Semicondutor Academy: SK hynix launched the Semiconductor Academy to develop human resources and enhance the competitiveness of suppliers, sharing our semiconductor expertise and know-how that we have accumulated over the past 37 years.

Analysis and Evaluation Support Center: SK hynix provides high-quality analysis results including analytical opinions from expert semiconductor analysts by conducting physical analysis, chemical analysis, and measurement with the newest equipment.

IPR sharing Support Center: SK hynix has established a support center that shares hands-on experience, knowledge, and expertise to protect the suppliers' intellectual property rights and make them more viable in terms of IP.

R&D Center for Joint Agenda: We have established a collaborative business model by sharing our infrastructure and creating a joint agenda based on various ideas from external institutions.

DBL Square: DBL Square is the platform that enables SK hynix to share our accumulated semiconductor knowledge and technical know-how with suppliers. It is the main communication channel for SK hynix’s DBL activities, where we gather to share ideas and resolve issues related to the creation of social values, as well as ways to strengthen the semiconductor ecosystem.

SV in Ecosystem

ECO Alliance

SK hynix jointly launched the ECO Alliance with our suppliers to resolve environmental issues within the semiconductor industry through three major tasks: establishing the environmental goals by the participating company, establishing the common environmental goal of the eco-alliance, and discovering a new eco-friendly business model.

ECO Alliance Webpage

The Exhibition of the Best Social Value Practices by Suppliers

To spread the concept of social value to our suppliers, SK hynix has been hosting “the Best Social Value Competition” among suppliers since 2020. When a supplier presents an idea on the social value creation or an exemplary case of value creation, we select the best practice and reward it with SV Points1). The discovered exemplary cases of reduced resource consumption and shared growth through reduced environmental pollution are shared with suppliers to promote greater value creation.
1) Cash points that can be used in the SV Point Mall to purchase products that have social value

SV Practices Competition

Youth Hy-Five

SK hynix operates Youth Hy-Five, an employment support program that develops tailored human resources and matches them with suppliers who need them. By matching suppliers that are experiencing difficulties in securing excellent human resources with young talents who find it difficult to enter the semiconductor industry due to a lack of information and opportunities for specialized education, we have been supporting our suppliers‘ future growth while alleviating youth unemployment.

Youth Hy-Five blog