SUSTAINABILITY

World’s most admired company, CJ Logistics is actively involved in global standard CRS and CSV activities.

Strategy & Governance

Materiality Issue

CJ Logistics reports annually on key issues impacting its business and stakeholders based on the Global Reporting Initiative (GRI) Standards, an international sustainability reporting guideline. The selection of material issues refers to the concept of Double Materiality Assessment in the EU Corporate Sustainability Reporting Standards (ESRS). This considers both the outward impact of the company's business activities on the environment and people (Impact to Stakeholders) and the inward impact on the business itself (Impact to Business).

Materiality Assessment Process
Materiality Assessment Process : 1. Analysis of internal and external environments - 2. Issue pool analysis and composition - 3. Issue description - 4. Materiality assessment and issue selection - 5. ESG Committee approval Materiality Assessment Process : 1. Analysis of internal and external environments - 2. Issue pool analysis and composition - 3. Issue description - 4. Materiality assessment and issue selection - 5. ESG Committee approval
Materiality Assessment Results

CJ Logistics establishes strategies, governance, indicators, and targets for each selected material issue according to the IFRS ISSB guidelines, and measures and manages their financial and environmental/social impacts.

A Table of Materiality Assessment Results
Category Selected Issues
Financial Impact Talent management, Safety and health, Climate change response
Environmental and Social Impact Sustainable business practices, Labor practices, Waste management
Materiality Issue Management Approach
[Sustainable Business]
  • Financial Impact

  • Social-environmental Impact

[SDG 9] 산업 혁신 및 인프라 구축 [SDG 9] 산업 혁신 및 인프라 구축
[SDG 9] INDUSTRY, INNOVATION AND INFRASTRUCTURE
Target 9-4
upgrade infrastructure and retrofit industries to make them sustainable
Target 9-5
Enhance scientific research, upgrade the technological capabilities
Governance

CJ Logistics operates the ESG Committee under the BOD to establish strategies, make decisions on sustainable business, and review and resolve sustainable business plans and performance once a year. The ESG Management Council and the Working Council are also under the ESG Committee. These councils monitor performance and implement decisions occasionally to achieve the resolved business plans and goals.

Risk Management

CJ Logistics is promoting new eco-friendly businesses to respond to the rapidly changing business environment. We are also establishing a circular logistics system that recovers waste and reproduces it as resources. Leveraging our logistics capabilities and nationwide logistics network, we handle the delivery and transportation of plastics, aluminum cans, milk cartons, and used mobile phones. Moving forward, we aim to respond proactively to fields with high potential for business expansion and contribute to the nation and society by securing leading capabilities.

Metrics & Target
Metrics & Target Table of Sustainable Business
KPI FY 2023 Targets FY 2023 performance FY 2024 Targets FY 2025 Targets FY 2030 Targets
Collection Volume of Recyclable Materials (Ton) Introduction of One-based Resource Circulation Business 8.8 100 120 250
Expansion of Liquid Hydrogen Transportation Business Acquisition of Permits for Liquid Hydrogen Transportation Business Securing Permits for Liquid Hydrogen Transport Tank Trailers/Business Additional Securing of Liquid Hydrogen Tank Trailers (more than 8 units) 16 Liquid Hydrogen Tank Trailers 40 Liquid Hydrogen Tank Trailers
Expansion of Gaseous Hydrogen Transportation Business Pursuing Participation in the Gaseous Hydrogen Transportation Market Agreement on 'Mobility Hydrogen Business' for Gaseous Hydrogen Securing New Hydrogen Markets and Expanding Hydrogen Power Generation Pursuing Investments for Business Expansion (Tube Trailer) Securing Dominant Competitiveness in the Gaseous Hydrogen Transportation Market
[Climate Change Response]
  • Financial Impact

  • Social-environmental Impact

[SDG 13] Climate Change Response [SDG 13] Climate Change Response
[SDG 13] Climate Change Response
Target 13-1
Strengthen resilience and adaptive capacity
Target 13-2
Integrate climate change measures into national policies, strategies and planning
Governance

CJ Logistics operates the ESG Committee under the Board of Directors to establish strategies and goals for climate change response. We operate a management council and a working council under the ESG Committee and report to them twice a year, respectively, or four times a year, to continue our efforts to respond to climate change. We review ESG management strategies and plans through the BOD and, under the BOD's supervision, discuss and make decisions on major issues such as climate change response and energy transition goals.

Risk Management

Recognizing the need to manage climate change's risks and financial impacts, CJ Logistics is joining the international community's goal of net-zero emissions by 2050. To respond to the GHG emissions generated due to the nature of our logistics business, we have established a GHG reduction roadmap to reduce GHG emissions gradually. CJ Logistics is also building a low-carbon logistics system and innovating in transportation, logistics, and facilities to prepare for transition risks. To prepare for physical risks, we reinforce our physical risk response system by introducing an EHS system and implementing quick follow-up measures when risks occur.

Metrics & Target
Metrics & Target Table of Climate Change Response
KPI FY 2023 Targets FY 2023 performance FY 2024 Targets FY 2025 Targets
GHG emission reduction(Base 2021) (%) 1% 0.5% 6% 37%
Installation of solar power facilities Introduction review Approval for 2024 project 542t 3,252t (Cumulative)
Implementation of energy efficiency equipment Introduction review Approval for 2024 project 603t 3,618t (Cumulative)
Transition to eco-friendly vehicles 19.8% 10.7% 40% 100%
Carbon offset projects (emissions trading) Business review Approval for 2024 project 1,620t 9,720t(Cumulative)
[Waste Management]
  • Financial Impact

  • Social-environmental Impact

[SDG 12] RESPONSIBLE CONSUMPTION [SDG 12] RESPONSIBLE CONSUMPTION
[SDG 12] RESPONSIBLE CONSUMPTION
Target 12-5
substantially reduce waste generation through prevention, reduction, recycling and reuse
Target 12-C
Elimination of a waste-centered production culture
Governance

CJ Logistics selects waste managers for each center to ensure proper waste management. We strive to ensure systematic management by supporting the adoption of a waste management system, risk management by guiding policy responses and improvement measures, and advice on measures and legal processing for the selected managers. In addition, we operate a working council twice a year (June and December) to review and communicate strategies and goals for environmental management and waste management. Major waste-related issues are presented to the ESG Committee every year for reports and resolutions.

Risk Management

CJ Logistics has acquired the international standard ISO14001 certification for all domestic business sites to realize sustainable development by considering the environment at all stages of business activities. Furthermore, we are digitalizing the entire waste management process to accurately measure waste output and prevent the unnecessary use of new resources. From a resource circulation perspective, we are leading the way in achieving zero waste by establishing a system to collect, compress, and recycle waste generated at logistics centers, such as stretch film.

Metrics & Target
Metrics & Target Table of Waste Management
KPI FY 2023 Targets FY 2023 performance FY 2024 Targets FY 2025 Targets
Introduction and Operation of Waste Resource Circulation System(Closed Loop) Introduction and Pilot Operation of Waste Resource Circulation System Pilot Operation of Closed Loop Activities Targeting Three Logistics Centers Conducting Circulation Activities for One Type of Waste Conducting Circulation Activities for Two Types of Waste
Obtaining Circulated Resource Quality Certification Reviewing the Introduction of Certification Identifying Centers Eligible for Certification Obtaining and Maintaining Certification for One Center Reviewing and Expanding the Scope of Additional Certifiable Centers
[Safety and Health]
  • Financial Impact

  • Social-environmental Impact

[SDG 3] GOOD HEALTH AND WELL-BEING [SDG 3] GOOD HEALTH AND WELL-BEING
[SDG 3] GOOD HEALTH AND WELL-BEING
Target 3-9
reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination
Target 3-D
Improvement of early warning systems for occupational health and safety risks
Governance

CJ Logistics establishes a safety and health plan every year through a reporting and approval process by the BOD to ensure systematic safety management. We operate safety and health organizations in each of our major business sectors, logistics and construction, and practice safety and health management according to each business's characteristics. The safety and health management system in the logistics division is centered on the Safety Management Office, which is directly under the CEO, while in the construction division, the Safety Management Department is in charge of safety and health. The Logistics Division holds monthly safety management activity days where all employees participate to focus on the safety and health management system at business sites and share major safety issues and accident cases. In addition, we enhance safety communication by answering on-site inquiries and requests from those in charge of the safety and health organization and those in charge of business sites. CJ Logistics aims to actively communicate with stakeholders who may be directly affected by safety and health issues.

Risk Management

CJ Logistics conducts annual risk assessments to identify safety risks at workplaces in advance and prevent damages. In addition, we have established and revised safety and health policies and basic safety rules with increasingly stringent safety laws and regulations to ensure that safety inspections are conducted in vulnerable areas. In particular, the 'Advance Safety Evaluation System' is applied to construction sites over a certain size, and the establishment and implementation of safety plans are mandatory from the design stage and are checked regularly. CJ Logistics strives to minimize blind spots in safety management.

Metrics & Target
Metrics & Target Table of Safety and Health
KPI FY 2023 Targets FY 2023 performance FY 2024 Targets FY 2025 Targets
LTIFR * 0.93 0.59 0.53 0.41
Improvement Rate of Hazardous Risk Factors * 100% 100% 100% 100%
Risk of Personal Injury - 286.2 258.3 199.9

* LTIFR(Lost Time Injury Frequency Rate) = LTIFR=(Number of lost time injuries / (Total working hours) * 1,000,000

* Improvement Rate of Hazardous Risk Factors=(Completed Improvement Actions / Identified Non-conformities) x 100

[Talent Management]
  • Financial Impact

  • Social-environmental Impact

[SDG 10] REDUCED INEQUALITIES [SDG 10] REDUCED INEQUALITIES
[SDG 10] REDUCED INEQUALITIES
Target 10-1
achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average
Target 10-3
equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard
Governance

CJ Logistics has established an HR Planning Team, HR Operations Team, Talent and Culture Team, Labor-Management Cooperation Team, and various HR organizations for each division under the C-Level Chief HR Officer. These teams are dedicated to securing and retaining excellent talent. They handle tasks such as organizational restructuring, recruitment, workforce management, training, organizational culture, and labor-management cooperation. Major issues are regularly reported to and decided upon by the management. Additionally, CJ Logistics participates in regular meetings organized by the CJ Group's HR Support Office to share information and learn from other affiliates.

Risk Management

CJ Logistics promotes diversity and inclusion in the organization and encourages talent management that provides all employees equal opportunities and fair treatment. To recruit, secure, and retain talented employees, we conduct fair and open recruitment, enhance employee learning opportunities, and create a great corporate culture in which to work. In addition, to innovate our corporate culture, we regularly diagnose our organizational culture and strive to make practical improvements.

Metrics & Target
Metrics & Target Tabel of Talent Management
KPI FY 2023 Targets FY 2023 performance FY 2024 Targets FY 2025 Targets
Number of beneficiaries of the talent development specialized education program 4,886 4,760 4,790 5,154
Percentage of women in office positions at the managerial level and above 26.0% 31.8% 31.9% 34.3%
[Labor Practices]
  • Financial Impact

  • Social-environmental Impact

[SDG 17] PARTNERSHIPS FOR THE GOALS [SDG 17] PARTNERSHIPS FOR THE GOALS
[SDG 17] PARTNERSHIPS FOR THE GOALS
Target 17-6
Enhancing knowledge sharing and collaboration
Target 17-16
Strengthening global cooperation for sustainable development
Governance

CJ Logistics recognizes the risks associated with labor issues such as strikes, slowdowns, and labor-management conflicts, and manages these risks systematically through a risk response organization centered around the head of the business division and the business planning department under the CEO. A crisis response task force has been established, consisting of the CEO, the Management Support Office, the Strategic Support Office, the Legal/CR Office, and the HR Support Office, to actively respond to labor-management risks.

Risk Management

CJ Logistics ensures all employees can join labor unions and holds quarterly labor-management meetings to promote cooperation and welfare. We comply with basic labor-related laws and regulations, provide continuous leadership training, and establish a culture of fair performance evaluation and compensation for all employees. We are also responding to major social issues, such as conflicts with courier unions, and enhancing our win-win cooperation system with suppliers by improving the on-site environment and strengthening the communication system. In this way, we are creating a safe and fair logistics company.

Metrics & Target
Metrics & Target Table of Labor Practices
KPI FY 2023 Targets FY 2023 performance FY 2024 Targets FY 2025 Targets
Collective Wage Agreement 62 years Continuous Period Without Labor Disputes
23years Continuous Period Without Strikes
62 years Continuous Period Without Labor Disputes
23years Continuous Period Without Strikes
64 years Continuous Period Without Labor Disputes
25years Continuous Period Without Strikes
69 years Continuous Period Without Labor Disputes
20years Continuous Period Without Strikes
Percentage of Welfare Benefits Received by Partner Courier Workers 100% 100% 100% 100%
Implementation of Agreements from the Social Consensus Organization on Measures to Prevent Overwork of Courier Workers Implementation Completed Implementation Completed Implementation Completed Implementation Completed
Regular Meetings with the Association of Agency Representatives to Strengthen Communication with Partners 6 Times a Year 10 Times a Year 12 Times a Year Over 12 Times a Year

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