SUSTAINABILITY

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

Strategy & Governance

Materiality Issue

CJ Logistics' materiality assessment adheres to the Double Materiality standard presented in the European Sustainability Reporting Standards (ESRS). We identify material issues by considering both the impact of the company's business activities on the environment and society (Impact Materiality) and the financial implications of external environmental changes (Financial Materiality). After reviewing the validity of the previous year's materiality assessment results, CJ Logistics determined that there were no meaningful changes in the business structure and key stakeholder environment; thus deciding to maintain the previously identified material issues.
Accordingly, this report consistently manages and discloses sustainability management activities and performance based on the previous year's material issues. The company transparently discloses sustainability management activities and performance related to identified issues through this report and its official website, and plans to continue incorporating the materiality assessment results into major management decisions such as ESG strategy development and company-wide risk management.

Double Materiality Assessment

Through an in-depth analysis of internal and external factors including global standards, benchmarking studies, and media research, we compiled a pool of 37 potential ESG issues. Each issue was assessed in terms of its environmental, social, and financial impact, with six key material topics finalized following a review by the Board of Directors.

CJ Logistics established its double materiality assessment methodology and identified a pool of 37 ESG issues through both internal and external environmental analyses, including benchmarking, international standards review, and media research. Subsequently, the company evaluated the environmental, social, and financial impacts of each issue through indicator analysis, stakeholder surveys, ESG performance assessments, ESG reputation risk analysis, and in-depth interviews with employees. The final material issues were confirmed following a review by the Board of Directors.
CJ Logistics established its double materiality assessment methodology and identified a pool of 37 ESG issues through both internal and external environmental analyses, including benchmarking, international standards review, and media research. Subsequently, the company evaluated the environmental, social, and financial impacts of each issue through indicator analysis, stakeholder surveys, ESG performance assessments, ESG reputation risk analysis, and in-depth interviews with employees. The final material issues were confirmed following a review by the Board of Directors.

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CJ Logistics established its double materiality assessment methodology and identified a pool of 37 ESG issues through both internal and external environmental analyses, including benchmarking, international standards review, and media research. Subsequently, the company evaluated the environmental, social, and financial impacts of each issue through indicator analysis, stakeholder surveys, ESG performance assessments, ESG reputation risk analysis, and in-depth interviews with employees. The final material issues were confirmed following a review by the Board of Directors.

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Materiality Assessment Results

CJ Logistics conducted a comprehensive materiality assessment considering both Impact Materiality and Financial Materiality to identify key issues. By integrating similar and overlapping items, the company finalized a total of six material issues. The final identified material issues are: climate action, customer satisfaction, labor practices, sustainable supply chain, safety and health management, and ethical management. In particular, the previously separate issues of "climate action" and "GHG emissions" were consolidated into "climate action" in consideration of their high interconnectedness. This integrated concept now encompasses scenario analysis-based risk management, GHG emissions management and reduction, energy efficiency improvement, and renewable energy adoption.

Through the materiality assessment, CJ Logistics identified the top five issues each from the environmental & social impact axis and the financial impact axis. After consolidating overlapping topics, a total of seven key material issues were selected. These are: climate change response, greenhouse gas emissions, customer satisfaction, labor practices, supply chain sustainability, health & safety management, and ethical management. Among them, four issues—greenhouse gas emissions, customer satisfaction, supply chain sustainability, and ethical management—were newly identified compared to the previous year.
Through the materiality assessment, CJ Logistics identified the top five issues each from the environmental & social impact axis and the financial impact axis. After consolidating overlapping topics, a total of seven key material issues were selected. These are: climate change response, greenhouse gas emissions, customer satisfaction, labor practices, supply chain sustainability, health & safety management, and ethical management. Among them, four issues—greenhouse gas emissions, customer satisfaction, supply chain sustainability, and ethical management—were newly identified compared to the previous year.

You can zoom in or out of an image with two fingers.

Through the materiality assessment, CJ Logistics identified the top five issues each from the environmental & social impact axis and the financial impact axis. After consolidating overlapping topics, a total of seven key material issues were selected. These are: climate change response, greenhouse gas emissions, customer satisfaction, labor practices, supply chain sustainability, health & safety management, and ethical management. Among them, four issues—greenhouse gas emissions, customer satisfaction, supply chain sustainability, and ethical management—were newly identified compared to the previous year.

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Material Issue Management

CJ Logistics identifies key potential impacts with high likelihood of occurrence to manage material issues, monitors the current progress of responses and associated targets, and reports the relevant matters to the Board through the ESG Committee.

A Table of Material Issue Management
Area Material issue Risks and opportunities Time horizons Key impacts by issue Our responses in 2025
Environmental Climate action1) Opportunity Mid-term
  • Expanding eco-friendly logistics businesses to step up supply chain influence and lay the foundation for market entry
  • Setting up a proactive reponse system for climate-related risks
  • Minimizing damages and recovery costs from climate-related disasters
  • Improving operational efficiency and reducing costs by adopting GHG reduction and fuel efficiency technologies
  • Generating additional revenue through carbon credit trading
  • Managed indicators to assess climate-related risks and opportunities
  • Conducted scenario analysis on climate risks
  • Carbon neutrality strategy for 2050
  • Reduced carbon emissions from transportation
  • Cutting down energy consumption in buildings and facilities
Social Customer satisfaction Risk Long-term
  • Enhancing service quality and increasing R&D investment to meet the needs of customers
  • Risk of decreased customer satisfaction and potential decline in sales if expectations are not met
  • Conducted internal and external evaluations of customer service quality
  • Provided services to enhance customer convenience
  • Carried out initiatives to improve customer satisfaction
  • Operated VOC (Voice of Customer) channels
Social Labor practices Risk Mid-term
  • Potential financial losses due to labor disputes or strikes disrupting contract fulfillment
  • Deteriorated corporate image from increased negative media exposure
  • Operated the Labor-Management Council
  • Implemented the social agreement to prevent overwork among parcel delivery personnel
  • Respected workers' right to suspend work and gathered employee feedback
Social Sustainable supply chain Opportunity Mid-term
  • Securing global competitive edge by building a sustainable supply chain
  • Honing corporate competitiveness through supplier ESG capacity building and shared growth programs
  • Renewed the CESS (Certified Excellent Shipping Company and Shipper) certificate
  • Provided support to nurture startups
  • Fostered a win-win ecosystem for shared growth
Social Safety and health management Opportunity Short-term
  • Improving employee satisfaction and job performance by setting up the safety and health management system
  • Realizing shared growth by strengthening safety and health management for partners including parcel agencies and delivery personnel
  • Performed safety inspections and emergency response drills
  • Respected workers' right to suspend work and listened to employee feedback
  • Operated a proposal system to identify potential hazards
  • Provided safety training for employees and conducted emergency response drills
Governance Ethical management Opportunity Mid-term
  • Creating a fair business environment and securing new partnerships through internal monitoring systems and anti-corruption policies
  • Saving on operational and legal costs by preventing ethical risks
  • Offered compliance training
  • Operated the Compliance Coordinator system
  • Operated the Integrated CJ Group Reporting System
  • Followed procedures for handling ethical violations

1) The previously separate issues of "climate action(TCFD)" and "energy and GHG emissions" were consolidated into "climate action" in consideration of their high interconnectedness

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