SUSTAINABILITY
SUSTAINABILITY
World’s most admired company, CJ Logistics is actively involved in global standard ESG activities.
Environmental
Governance for Climate Action
An ESG Committee was established under the Board in May 2021 to enable the integrated management of diverse ESG issues including climate change and biodiversity, laying the foundation for a high-level ESG decision-making system. This was followed by the formulation of the Environmental Management Policy in 2023. The committee consists of two inside directors and three independent directors, assuming broad responsibilities for key environmental matters such as climate action and biodiversity preservation along with other ESG-related topics. The CEO plays an overarching role in regularly monitoring ESG strategies and reviewing their progress particularly in climate and biodiversity initiatives. The ESG Management Council is responsible for monitoring the implementation of climate change and biodiversity-related initiatives across units based on the relevant KPIs. It also examines outcomes from key on-site activities including carbon emission management and public-private resource circulation projects. The ESG Team under the Finance Division within the Management Support Corps handles day-to-day responsibilities for company-wide climate action. Through the ESG Working Group, the team identifies climate-related issues and formulates appropriate countermeasures. It also leads biodiversity protection efforts such as preserving ecosystems and creating habitats for native flora and fauna.
In 2025, major agendas such as carbon reduction activities, new ESG-based businesses, Resource Circulation Business, and Phase 4 Korea emissions trading scheme (K-ETS) response plans were discussed through the ESG Committee. Building on these discussions, we strengthened the practical ESG management system to establish a sustainable growth foundation and fulfill corporate social responsibility. We included "advancement of climate-related disclosure" and "establishment of response strategy for Phase 4 ('26-'30) greenhouse gas emissions Korea trading scheme (K-ETS)" in the Key Performance Indicators (KPIs)1)
of the Finance Executive (C-Level) in 2025. These KPIs are linked to performance evaluations and compensation for some C-level executives and employees in managerial positions.
In the coming years, we will define climate change and biodiversity within the integrated framework “Climate & Biodiversity.” Under the ESG Working Group, we will separately operate the Working Council for Climate Change and the Working Council for Biodiversity to ensure more specialized, issue-specific responses. This dual structure will not only enhance professional focus on each topic but also strengthen our capacity for integrated management. Building on this, we will establish an information disclosure system aligned with TCFD (Taskforce on Climate-related Financial Disclosures) and TNFD (Taskforce on Nature-related Financial Disclosures) guidelines while solidifying our organizational foundation and ensure that critical ESG issues—regardless of double materiality—are strategically prioritized and continuously addressed.
1) ESG functions have been operated under the Finance Division following the organizational restructuring in 2024, and environment-related KPIs are being applied accordingly based on the C-level ESG executive (Finance Executive).
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Climate Action Strategy
Climate-related Risks and Opportunities(Physical Risks)
Physical risks stem from changes in the climate system, including rising average temperatures, shifting precipitation patterns, more frequent extreme weather events, and sea level rise. These risks directly affect the stability of logistics infrastructure operations and disrupt supply chain connectivity. In particular, the combined occurrence of long-term climate change and short-term natural disasters has a structural impact on the entire business, leading to reduced functionality of logistics hubs, transportation delays, and facility damage.
To respond to physical climate risks efficiently, CJ Logistics has categorized its assets into transportation assets and fixed assets for type-specific analysis. Using this classification, we identified key impact factors and risk exposure elements across business units including CL, parcel services, global forwarding, and construction in a structured manner. Based on the assessments of potential financial implications associated with asset damage under various climate scenarios, we have prioritized countermeasures focused on ensuring infrastructure operational stability and securing supply chain continuity. This has enabled us to hone and refine our resilience strategies.
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Climate-related Risks and Opportunities (Transition Risks)
Climate-related transition risks arise from rapid changes such as rising average temperatures, evolving policies and laws, technological advancements, increased social awareness, and intensified market competition. In particular, globally tightened carbon regulations, growing customer demand for ESG practices, and rising expectations for sustainable logistics are exerting pressure on strategic shifts from traditional operations. In response, we evaluate the scale, likelihood, characteristics, and time horizons of these risks to assess potential financial impacts. We also identify projected climate-related threats that could affect the company’s outlook in a rational manner.
The time horizons for climate impact are defined as follows: short-term refers to within one year, mid-term is from one year to less than five years, and long-term extends beyond five years. The implications of the identified climate-related risks are outlined below.
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Physical Risk Countermeasures for Climate Adaptation
To assess alignment with the 1.5°C goal of the Paris Agreement, CJ Logistics quantitatively analyzes the potential damage to physical assets from various types of natural disasters under both 2°C warming scenario (RCP2.6) and 4°C warming scenario (RCP8.5), based on the Representative Concentration Pathways (RCPs)* presented in the IPCC Fifth Assessment Report (AR5). The assessment horizon is divided into short-term (up to 3 years), medium-term (up to 5 years), and long-term (beyond 10 years) periods. The analysis covers climate-related hazards such as floods, heatwaves, wildfires, and cold waves. Based on the results, the Company estimates the costs of preventive measures and facility reinforcement required to mitigate potential impacts; thus indirectly quantifying the associated financial implications.1)
The results of the scenario analysis have been incorporated into our risk countermeasures and infrastructure investment strategies across business units. This integration has helped minimize the risks of operational disruptions and enabled structural refinement, thereby enhancing overall resilience. To prepare for growing climate system volatility, we are strengthening our integrated climate risk management system and proactively addressing physical risks; thus laying the foundation for a sustainable logistics network.
1) CJ Logistics has quantitatively assessed major climate-related physical risks and transition risks based on the 2023 data and disclosed them externally. Building on these analysis results, we are establishing and implementing medium- to long-term response strategies.
With regard to physical risks, acute flooding is estimated to result in financial losses ranging from 846.3 billion won to 888.1 billion won due to damage to logistics centers, vehicles, and cargo as well as operational disruptions and resulting revenue loss. Acute fires are expected to cause approximately 696.5 billion won in financial impact due to facility damage, increased recovery costs, and transportation delays. Additionally, chronic heat waves are estimated to cause financial losses ranging from 879.9 billion won to 1,035.7 billion won due to facility and vehicle breakdowns and operational disruptions. Chronic cold waves are estimated to result in approximately 363.3 billion won to 479.2 billion won in financial impact due to facility freezing, logistics delays, and cargo damage.
With regard to transition risks, Korea emissions trading scheme (K-ETS) compliance costs are pegged at approximately 536.2 billion won from 2022 to 2050 based on a carbon price of 100,000 won/tCO₂. Renewable Energy Certificate (REC) conversion costs resulting from expanded renewable energy use are estimated at approximately 17.3 billion won from 2030 to 2050, based on approximately 1.42 million tCO₂.
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Carbon Neutral Logistics Transition Strategy for Climate Action
Amid intensifying global discussions to achieve the 1.5°C climate target, CJ Logistics has been setting a strategic response system based on science-based transition scenarios to address growing uncertainty and volatility across carbon regulations, green technology development, market demand shifts, and rising societal expectations. In particular, we reference internationally recognized 1.5°C scenarios, such as the IEA Net Zero 2050 and IPCC SSP1-1.9 to identify both transition risks and emerging opportunities that may affect our logistics infrastructure and transport business models, followed by integrating these insights into our overarching business strategies. With the objective of achieving our long-term goal of carbon neutrality, we are implementing a three-phase strategy that spans our entire logistics value chain; the introduction of low-emission vehicles, the construction of energy-efficient logistics infrastructure, and the global expansion of low-carbon logistics services. Financial impacts of transition risks are currently considered indirectly, with plans to conduct quantitative analysis in the future. Taking into account the asset structure and risk exposure of each business, we are building a structured GHG mitigation strategy that manages both transport and fixed assets in an integrated manner. Through this, we are laying a foundation for enterprise-wide carbon neutrality
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Risk Management
CJ Logistics operates a systematic process for identifying, assessing, prioritizing, and monitoring climate-related risks and opportunities to systematically manage the impact of climate uncertainty across our business. This process is integrated into our enterprise risk management (ERM) framework and serves as a core foundation for sustainable business operations.
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Metrics and Targets
GHG Emissions Performance
CJ Logistics' greenhouse gas emissions target for 2025 was 213,830 tCO₂eq, with actual emissions amounting to 239,997 tCO₂eq. Scope 2 emissions totaled 128,494 tCO₂eq, accounting for 54% of the Company's total greenhouse gas emissions. These emissions primarily consist of indirect emissions from purchased electricity used at business sites and buildings, categorized into emissions associated with fixed assets and transportation-related operations. Although mobile asset electricity consumption resulting from the conversion of logistics transportation vehicles into electric vehicles increased by more than tenfold compared to the baseline year, overall Scope 1 emissions decreased by approximately 6% to 111,523 tCO₂eq emissions in 2025 compared to the baseline year.
To implement its carbon neutrality strategy and provide low-carbon logistics services, CJ Logistics continues to review the conversion of logistics transportation vehicles into electric vehicles and various low-carbon logistics operation methods. Additionally, the company plans to continue pursuing efforts to reduce greenhouse gas emissions from electricity consumption through the expanded adoption of renewable energy sources, such as solar power.
GHG Emissions Compared to Base Year
(Unit: tCO2eq)
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1) Due to rounding down at the facility level, the sum of Scope emissions may differ slightly from the total GHG emissions
GHG intensity
We have executed our carbon neutrality strategy, delivering sustainable low-carbon logistics services in alignment with our three key directions and seven strategic themes. As a core performance indicator, we track our GHG emissions intensity relative to economic value to monitor our climate action and low-carbon transition progress across our domestic logistics, construction, and resort operations. In 2025, our GHG emissions per unit of revenue declined by approximately 3.5% compared to the base year. However, the current emissions performance indicates the need for further reduction efforts to achieve the Carbon Neutral 2030 target of reducing greenhouse gas emissions by 37% from the 2021 baseline. We continue to implement and manage our national carbon neutrality goals while expanding the scope of our global carbon neutrality strategy to support the global transition to low-carbon logistics services. In particular, we aim to extend our strategy to key international sites such as those in India, and enhance the sophistication of our Scope 3 emissions calculation.
(Unit: tCO2eq / KRW 100 million)
| Category | 2021 | 2025 |
|---|---|---|
| GHG emissions intensity (Scope 1+2) | 2.02 | 1.95 |
| GHG emissions intensity (Scope 1) | 1.05 | 0.91 |
| GHG emissions intensity (Scope 2) | 0.97 | 1.05 |
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Application of Scope 3 – Category 4 Calculation Methodology
CJ Logistics comprehensively reviews both the characteristics of the logistics industry and the requirements of the GHG Protocol and classifies emissions generated from the operation of its third-party transportation network as Scope 3 – Category 4 (Upstream Transportation and Distribution) accordingly. The Company provides logistics services to customers by utilizing external transportation resources, including contracted carriers, agency partners, and independent drivers. Emissions from owned and leased vehicles are accounted for under Scope 1, whereas emissions arising from outsourced and subcontracted transportation networks are calculated and managed under Scope 3 – Category 4.
Scope 3 – Category 4 emissions are estimated using a factor-based methodology derived from publicly available statistics, taking vehicle type, fuel type, and operating characteristics into account. Going forward, the Company plans to enhance the accuracy of its emissions accounting methodology further by incorporating actual vehicle mileage data and fuel consumption data.
Scope 3 Category Management Scope
CJ Logistics conducts materiality assessments for all Scope 3 categories, taking relevance, emission impact, and data availability into account. Based on these assessments, the company has defined Categories 1, 3, and 4 as its primary management scope. Additionally, for categories with low emission impact within the business and those with limited direct relevance to its business model, CJ Logistics reviews materiality and establishes the appropriate management scope accordingly.
Scope 3 emissions for the base year(2021)
(Unit: tCO2eq)
Scope 3 Emissions in 2025
(Unit: tCO2eq)
GHG Emissions Calculation for Domestic and Overseas Subsidiaries
CJ Logistics expanded the scope of its greenhouse gas emissions calculation beyond its domestic operations on a standalone basis to include its consolidated subsidiaries, and conducted a pilot calculation using FY2025 data.
In accordance with the operational control approach, we established our organizational boundary and greenhouse gas inventory, and calculated Scope 1 and Scope 2 greenhouse gas emissions for approximately 160 domestic and overseas sites* within the organizational boundary. As a result, total Scope 1 and Scope 2 greenhouse gas emissions for FY2025 were calculated at 382,967 tCO₂eq.
These greenhouse gas emissions figures represent the results of a pilot calculation and have not been subject to third-party assurance. The figures may be subject to change as data is supplemented and calculation methodologies are further refined. Going forward, CJ Logistics will continue to enhance the scope and methodologies of its emissions calculations and progressively pursue third-party assurance to improve the reliability and accuracy of its greenhouse gas emissions data.
* Individual sites within each legal entity, including warehouses, terminals, and offices; based on 60 legal entities included within the organizational boundary.
