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Supply Chain Management

Supply Chain ESG Management System

SK Chemicals has established a collaboration ESG policy with partner companies to engage in sustainable businesses that contribute to solving social and environmental issues. The partner company ESG policy encompasses partner company ESG management policy, partner company code of conduct, supply chain ESG management roadmap, and partner company ESG evaluation timeline.

SK Chemicals Partner Company ESG System
  • Require suppliers to participate in SK chemicals’ Human Rights / Environmental / Ethical / Safety Management and Green Purchasing initiatives
  • Recommend compliance with international human rights principles such as the Universal Declaration of Human Rights and ILO Core Conventions
  • Establish supply chain ESG risk management procedures to operate sustainable businesses contributing to social and environmental problem-solving
  • Operate Supplier ESG Code of Conduct (labor, human rights, environment, ethics, safety and health)
  • Provide SK chemicals’ support programs to strengthen suppliers’ ESG management capabilities
  • Operate grievance-handling systems to ensure open communication with suppliers
Supply Chain ESG Risk Management Process

SK chemicals’ supply chain ESG risk management process consists of screening, self-assessment, third-party on-site evaluation, and improvement/support stages. Requirements from global ESG evaluation agencies specializing in supply chain due diligence are reflected to identify, prevent, and mitigate negative ESG risks across the value chain.

  • STEP 1. Risk Screening

    • Preliminary review of supply chain risks

  • STEP 2. Self-Assessment

    • Conduct online-based ESG self-evaluation

  • STEP 3. On-site Evaluation

    • Verify responses and evidence (performed by third-party evaluators)

  • STEP 4. Improvement & Support

    • Develop improvement plans for high-risk suppliers and provide implementation support
      (1:1 coaching)
Key Areas of Supply Chain ESG Risk Diagnosis

  • Environment

    • Energy, GHG emissions, waste, hazardous chemicals, pollutants, natural capital, raw materials, water resources

  • Social

    • Information security, human rights, health and safety, employment, working conditions, fair trade, conflict minerals

  • Governance

    • Information disclosure, management systems, audits, ethical management