Supply Chain Management

We create a sustainable future where people, society and the environment will coexist.

Policy

SK ecoplant has established the Supplier Code of Conduct, which reflects global guidelines such as the Universal Declaration of Human Rights, the 10 Principles of the UNGC, and the ILO Declaration on Fundamental Principles and Rights in Labor. In 2022, we built a compliance agreement system for the code of conduct, which is a mandatory process when registering and signing a contract with business partners, to strengthen suppliers’ ESG-based management frameworks. Moreover, we operate the evaluation and management system to enhance our suppliers’ actual level of ESG, going a step further than the Supplier Sustainability Management Survey, which is conducted in the annual renewal of supplier registration. We have developed an ESG rating model tailored to suppliers in cooperation with major credit rating agencies. The rating model consists of 16 environmental items, 24 social items, such as safety and human rights, and 15 governance items, such as ethical management and BOD operations. The evaluation is composed of 70% data evaluation and 30% on-site due diligence. A wide range of incentive schemes is also in operation to promote suppliers’ voluntary participation in ESG evaluations, while various support programs are also available for their work on ESG management improvements, in line with the Biz. Partners ESG Level-up Program, after the evaluation is completed.
In addition to the ESG management of our suppliers, SK ecoplant has also established regulations on responsible procurement and conflict minerals to implement ESG-based procurement. With an aim to minimize energy and resource input, GHG emissions and pollutant generation, we operate a green purchasing scheme, which promotes the purchase of eco-friendly materials and defines the discovery of eco-friendly materials and the purchasing performance as KPIs, collecting and managing green purchase data through our internal purchase system (TOMMS).
We purchased about KRW 12 billion worth of truck mixers, sanitary wares, etc. in 2021, and further plan to establish our own certification system and standards by reviewing all materials that we purchase based on their improvement potential in terms of eco-friendliness and effectiveness. Through this, we are aiming to expand the existing category of eco-friendly materials, which are currently limited to only those certified by the government. In addition, our incentive programs for suppliers that manufacture and sell eco-friendly materials will be continuously improved in a more practical and systematic manner.

Support Program for Biz. Partners’ ESG Improvement

Identify high-risk business partners and issues subject to supervision, and enhance the level of their ESG management by making requests for improvement and offering relevant support

협력사 ESG 개선 프로그램 정책 수립에 관한 이미지 입니다. 자세한 설명은 하단 내용을 참고하세요.
정책 수립

관리 영역 설정 : 3대 영역, 15개 관리 항목, 55개 세부 관리 요소 도출 (첨부1) - 외부 평가기관과 공동 개발

적용방식 : 적용대상은 1차 협력사 전체이나, 단계적으로 대상 확대 적용 (첨부2)

협력사 ESG 개선 프로그램 진단 및 평가에 관한 이미지 입니다. 자세한 설명은 하단 내용을 참고하세요.
진단 및 평가

평가 방식 : [평가 대상] 단계별 적용대상 협력사를 [평가 주기] 연 1회 [평가 방식] 제3자 전문기관 평가 실시

관리 대상 선정 : [관리 대상] 평가 결과에 따른 개선 필요 협력사 [선정 주기] 연 1회

협력사 ESG 개선 프로그램 개선/지원에 관한 이미지 입니다. 자세한 설명은 하단 내용을 참고하세요.
개선/지원

개선 요구 및 지원 : [개선요구]

  • 방식 : 개선계획 제출 요구
  • 추가 : 6개월 內
[지원]
  • 방식 : ESG 개선 지원
  • 추가 : 매년

개선 모니터링 : 개선 이행도에 대해 매년 모니터링 및 공시

Goal

To promote Biz. Partner's volunary participation on ESG evaluation, SK ecoplant is promoting supporting activities such as providing evaluation costs and additional points on Biz Partner evaluation. We are planning to increase the Biz. partner’s voluntary participation proportion of ESG evaluation. At the same time, we are setting and supporting rasing interests in environmental management, establishing human rights policy, and spreading ethical management culture as major tasks.

Performance

An annual ESG assessment is recommended for key Biz. Partners and, as a principle, we operate an assessment and management system to manage the progress of improvements by high-risk suppliers every year. In March 2021, we completed pilot testing of the ESG evaluation model on 10 suppliers. Based on the completed model, we have conducted the ESG evaluation test for about 100 partners and selected suppliers subject to ESG ratings from among those providing core construction types and items, those of top-priority construction types in terms of safety, environment and quality, and suppliers ranking highly in our evaluation ratings. The results indicate that 27% of target partners are high risk and, consequently, regular monitoring is to be offered to check improvements in order to manage ESG risks going forward.

Expected Impact of One Point Lessons

One point 코칭 기대효과 환경에 관한 이미지 입니다. 자세한 설명은 하단 내용을 참고하세요.
환경
  • As-is - 21.8 (6등급컷(30))
  • To-be(1) - 36.8 (5등급컷(40))
  • To-be(2) - 52.1 (4등급컷(50))
One point 코칭 기대효과 사회에 관한 이미지 입니다. 자세한 설명은 하단 내용을 참고하세요.
사회
  • As-is - 40.1 (5등급컷(50))
  • To-be(1) - 51.1 (4등급컷(55))
  • To-be(2) - 58.6 (4등급컷(55))
One point코칭 + 교육운영 : 환경 사회 등급 1~2단계 상향되어 5~6등급으로 개선 예상 /  전문컨설팅 : 환경 사회 등급 3~4단계 상향되어 4~5등급으로 개선 예상

* To-be (1): Policy & organization, support for educational program operations
* To-be(2) : To-be (1) + professional consulting

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