SM Entertainment (hereinafter SM) published its fourth sustainability management report on the 27th. This report comprehensively includes key achievements for 2024 across Environment, Social, and Governance, as well as the ESG-based management strategy system.
In the environmental sector, activities were introduced such as ▲ calculation of greenhouse gas emissions for record production and concert venues to manage and reduce greenhouse gases continuously, ▲ creation of the second phase of the Wilderness Forest for biodiversity conservation, ▲ production of albums and merchandise using eco-friendly materials, and ▲ exhibition of upcycled artist costumes.
In particular, the second phase of the Wilderness Forest, created in 2024 in the southern area of the Children's Garden in Seoul Forest, covers approximately 485m2 and includes 58 species of shrubs and flowers, such as rare plants, protected wild plants of Seoul, and climate change bioindicator species. It also provides resting spaces for citizens with benches and other amenities.
In the social sector, activities included ▲ efforts to enhance content and service quality, such as the 30th anniversary performance of SM and the production of a guidebook to improve accessibility for people with disabilities, ▲ conducting human rights impact assessments with external experts for stakeholders including employees, trainees, and the supply chain, ▲ establishment of a 'Technology Information Committee' directly under the CEO to strengthen information security and protection, ▲ implementation of risk assessments related to health and safety, and safety management activities at concert venues and pop-up stores, and ▲ publication of a white paper on the 10th anniversary of the SMile social contribution program.
Notably, 2024 marks the 10th anniversary of SM's social contribution brand SMile, which launched and began full-scale social contribution activities. The report details specific achievements such as the SMile Music Festival, which supports youth music training and joint performances in Korea, the SMile for U campaign in collaboration with the Korean Committee for UNICEF to support integrated music education for children in Asia, and the SMile Volunteer Group, which artists and employees voluntarily participate in.
Additionally, SM plans to burn a total of 477,274 shares of its own stock in two rounds (February and August) in 2024, realizing a shareholder return policy worth approximately 35.7 billion won. In February 2025, it will also burn 458,937 shares (worth 40.3 billion won), continuing its active shareholder return policy. In the governance sector, activities include ▲ strengthening the independence and transparency of the board of directors, ▲ responding to over 190,000 reports and related complaints received by 'Wilderness 119' to protect artists' intellectual property rights, and ▲ operating a risk management council to establish an advanced governance structure and enhance compliance and ethical management.
As a result of efforts to strengthen ESG management across various fields, SM received the Chairman's Award from the Korean Chamber of Commerce and Industry at the 31st Corporate Innovation Awards in December 2024.
Co-CEOs Jang Cheol-hyuk and Tak Young-jun stated, “This year, marking our 30th anniversary, SM has declared a new slogan, ‘THE CULTURE, THE FUTURE,’ and aims to lead the future of K-Pop based on the cultural heritage we have built, becoming a company that is part of many people's daily lives and memories. We will continue to strive to be a pioneer that first considers and acts on the social responsibility and sustainability of K-Pop.”
Meanwhile, this report from SM was prepared in compliance with the international sustainability reporting standard 'GRI Standards 2021', the 10 principles of the UN Global Compact, and the guidelines presented by the UN Sustainable Development Goals (UN SDGs).
[Ji Seung-hoon, Star Today Reporter]
