CJ Logistics

Climate change response strategy framework and governance

We have developed strategies to address climate change within our business operations. By transitioning transportation modes, which are the primary source of our emissions, and leveraging TES technology, we aim to establish optimized routes for transportation and enhance fuel efficiency.
Our ongoing efforts to reduce emissions include phasing in renewable energy at logistics centers and implementing building energy efficiency programs. The ESG Committee under the Board of Directors deliberates on climate risk management and strategies, while the ESG Management Council, composed of corporate-wide management, monitors performance.
In 2023, we convened six working-level meetings to discuss GHG emissions and stay abreast of trends in reduction initiatives. Notably, the 2022 ESG results and the 2023 ESG plans were approved by the ESG Committee under the Board of Directors on March 10, 2023. Additionally, on December 14, the committee reported on carbon emissions from our operations and the outcomes of resource cycling projects.

[Climate change response management Framework]

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RISK MANAGEMENT STRATEGY

The climate risks that a company may face can be divided between social and transitional risks, such as those stemming from new climate policies and regulations as well as technological innovations for lowering carbon emissions, etc., and physical risks, involving the physical impacts that climate change exerts. At CJ Logistics, we categorize and identify these risks in detail, analyzing their likely effects on the company as part of developing our response strategy.
Determined to make climate risk management an essential part of all its value chains, CJ Logistics strives to reduce greenhouse gas emissions and to promote resource circulation in all areas and stages of its operations, from increasing the energy efficiency of its vehicles and buildings to acquiring more eco-friendly vehicles and to innovating parcel boxes so as to minimize waste. The company continues to monitor and manage these risks with a view toward identifying improvements to be made and optimal courses of action to be taken.

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GHG Emissions Management System

In 2023, carbon emissions from CJ Logistics' domestic operations amounted to 227,533 tCO2eq. As a logistics company, the primary source of emissions is power consumption in buildings such as logistics centers (Scope 2). Additionally, there are Scope 1 emissions from the use of trucks and other vehicles for transportation.
In 2023, our total indirect (Scope 4) emissions, which include emissions from purchased goods and services, capital goods, fuel and energy-related activities, transportation and delivery, waste, and domestic and overseas business trips, were 460,654 tCO2eq.

(Unit: tCO2eq, tCO2eq/0.1 bil. Won)

* There may be a difference with the total of Scope 1 + Scope 2 due to rounding to the nearest unit

* Intensity : based on local sales revenue and emission

Mid-to-long-term Emission Reduction Target and Means

CJ Logistics is targeting 37% reduction in carbon emissions, which is equivalent to approximately 83,000tCO2eq in 2030, in order to achieve carbon neutrality by 2050.
The Company plans to reduce GHG emissions by driving transportation efficiency of highly emitting vehicles and switching to eco-friendly transportation vehicles. Energy efficiency in buildings, solar panel manufacturing facilities to produce more renewable energy, certificates and purchase of green pricing will also be introduced to cut back on emissions.

(Unit: tCO2eq)

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Carbon emission reduction activities

Energy efficiency

We provide efficient transportation routes and operation methods by analyzing big data to save energy in terms of logistics and delivery. In addition, we introduced a transport recovery algorithm to shorten the total travel distance and minimize the proportion of vehicles operating in empty vehicles to contribute to fuel efficiency and carbon emission reduction and promote Eco Driving education to improve driving habits that consume excessive energy such as engine idling to carry out energy management activities. In addition, CJ Logistics is promoting various reduction activities, such as installing and replacing indoor lighting in distribution centers with high-efficiency LED lighting devices and installing solar energy generation facilities on the roof of the distribution center to reduce energy consumption in buildings.

Utilization of renewable energy

As the transition to a low-carbon economic system is accelerating worldwide, the use of renewable energy sources is expanding to respond to climate change and reduce environmental footprint. CJ Gemadept, a Vietnamese logistics subsidiary, has installed 10,880 solar modules on the roof of a refrigeration logistics center located in the Mekong Delta on an area of 25,000 square meters. They are producing 7,066MWh of renewable energy per year, aiming to reduce carbon dioxide by 4,840 tons per year by reducing electricity costs by about 25% every year. CJ Logistics will continue to strengthen eco-friendly and renewable energy logistics, and as a global leading logistics company, it will strive to fulfill its social responsibilities and practice sustainable management.

Water and Wastewater Management

Recognizing the seriousness of the water shortage and the importance of resource conservation, we are managing water consumption and wastewater discharge at all business sites by establishing water usage targets and monitoring the performance. Our logistics business sites do not use water other than household water, but in the case of Haesley and Jeju Nine Bridges Golf Clubs, they introduced service facilities, showers, low-flow toilets, and water tank storage compressors that have been certified for water conservation to minimize the use of water resources. In addition, in order to eliminate the discharge of water pollutants that have an impact on the environment, Jeju Nine Bridges is contributing to reduction of water pollution and energy by using a membrane-integrated advanced wastewater treatment method to simultaneously remove organic materials, nitrogen, and phosphorus with low power consumption.

Efforts to Reduce air Pollutants

Logistics company should make efforts to reduce air pollutant due to the cargo vehicles. Ministry of Environment announced that truck emit 6 times fine particulate than passenger cars. Especially old truck that grade 5 in exhaust emission emit 10 ~ 22 times more than recent truck. As a result, public-private partnership become more important to clean air environment. CJ Logistics signed a ‘Business agreement to reduce fine particulate from trucks’ with the Metropolitan Air Environment Agency to reduce fine dust emissions from trucks. Through this agreement, we are working on a low-pollution measures against trucks that we owned by the company or those entering the company regularly such as scrap car removal about old trucks, attachment of emission reduction device and follow-up management. Also, we are actively promoting wheel washing , car washing and eco-friendly driving to reduce scattering dust occurrence against entering vehicles. To reduce these emissions, CJ Logistics will intensively manage aging trucks to minimize the environmental impact of vehicles and reduce fine particulate.