SK bioscience said Friday that it earned an A grade in the 2023 Environmental, Social and Governance (ESG) assessment by Morgan Stanley Capital International (MSCI).

The company added that it has the highest rating in the Korean biotechnology industry, following a BBB rating last year, as the company has improved its ESG management since earning a B rating in the first report in 2021.

Since 1999, MSCI has evaluated 10 categories and 35 key environmental, societal, and governance issues for publicly traded companies worldwide and released them annually.

According to the MSCI report, SK bioscience received high scores in human resource development, healthcare access, toxic substance and waste management, and governance.

The company explained that in the “S (social)” category, SK bioscience has established a system to identify and systematically manage risks by conducting a third-party human rights impact assessment to strengthen human rights management.

In the “E (environment)” category, SK bioscience improved the level of hazardous substance emissions and waste management by acquiring ISO 14001 (Environmental Management System) certification for Andong L-HOUSE, it added.

In the “G (governance)” category, SK bioscience secured the independence and expertise of the board of directors chairman and CEO and appointed experts with diverse experience in the industry as outside directors.

Besides, the company reflected the CEO's ESG performance in key performance indicators (KPIs) and included it in the compensation system, establishing and implementing a systematic strategy for enhancing ESG management.

SK bioscience added that it plans to expand the scope of human rights impact assessment and supply chain ESG management support, proactively prepare disclosures to the Korea Sustainability Standards Board (KSSB), and further strengthen climate change response activities.

"We are pleased that our year-long efforts for sustainable growth have won international recognition," CEO Ahn Jae-yong said. "We will continue striving to achieve our core mission of improving global public health and grow with our stakeholders."

Last October, SK bioscience also received an overall A grade, the level of an ESG leader, for the second consecutive year in the “2023 Publication of ESG Evaluation and Ratings of Listed Companies” released by the Korea Institute of Corporate Governance and Sustainability (KCGS).”