CJ物流

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 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.

Materiality Issue Management Approach

[Sustainable Business]

• Financial Impact

• Social-environmental Impact

[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

[Climate Change Response]

• Financial Impact

• Social-environmental Impact

[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

[Waste Management]

• Financial Impact

• Social-environmental Impact

[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

[Safety and Health]

• Financial Impact

• Social-environmental Impact

[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

* 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

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

* Group Definition: Core talent, leadership, job function, global, etc

[Labor Practices]

• Financial Impact

• Social-environmental Impact

[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