SUSTAINABILITY

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

Strategy & Governance

Materiality Issue

Each year, CJ Logistics conducts a materiality assessment to identify and disclose key ESG issues that significantly affect both its business and stakeholders. This process complies with the double materiality approach defined by the European Sustainability Reporting Standards (ESRS) and considers both the impact of the company’s activities on the environment and society (impact materiality) as well as the financial effects of external environmental and social changes on the company’s performance (financial materiality). The results of the assessment guide our sustainability initiatives and are disclosed transparently through this report and our official website. Going forward, we will continue to incorporate the results of the materiality assessment into its ESG strategy development, company-wide risk management, and other key business strategies.

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, and seven key material topics were 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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Double Materiality Assessment Results

CJ Logistics identified the top five issues based on impact materiality and financial materiality through a comprehensive materiality assessment. From these, seven key material issues were finalized by reflecting overlapping items across the two dimensions. The final issues are; climate action, GHG emissions, customer satisfaction, labor practices, sustainable supply chain, safety and health management, and ethical management. Among these, GHG emissions, customer satisfaction, sustainable supply chain, and ethical management were newly identified in 2024.

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 a high likelihood of occurrence to manage material issues, monitors the current progress of responses and associated targets, and reports 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 2024
Environmental Climate action 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 response system for climate-related risks
  • Minimizing damages and recovery costs from climate-related disasters
  • Managed indicators to assess climate-related risks and opportunities
  • Conducted scenario analysis on climate risks
Environmental GHG emissions Opportunity Mid-term
  • Improving operational efficiency and reducing costs by adopting GHG reduction and fuel efficiency technologies
  • Generating additional revenue through carbon credit trading
  • Carbon neutrality strategy for 2050
  • Reduced carbon emissions from transportation
  • Cutting down on energy consumption in buildings and facilities
Social Customer satisfaction Risk Long-term
  • Elevating 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
  • Sharpening corporate competitiveness through supplier ESG capacity building and shared growth programs
  • Renewed CESS (Certified Excellent Shipping Company and Shipper) certificate
  • Provided supports 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 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

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