Business CJ Logistics’ pledge for sustainable growth, ESG management
2021. 06. 29

Today, we are living in an era of ESG management, where only companies that protect the environment, place importance on social values and are run transparently can achieve sustainable growth. CJ Logistics is the sole logistics company to acquire an outstanding rating in GRP, a global environmental guideline and certification, ranking first place for two consecutive years, showing strong ESG performance. Today, we will get a glimpse into what ESG means to companies and what companies worldwide are doing to get a good ESG rating, as well as what kind of management activities CJ Logistics is conducting.
 




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ESG, a new barometer in company evaluation


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ESG stands for environmental, social, and governance. It is an indicator that assesses non-financial factors such as whether a company fulfills its responsibilities to protect the environment, perform social duties, and has transparent governance in place. ESG does not only shape corporate image, but acts as the most important investment factor, wielding a powerful impact on the survival of an enterprise. Standardizing ESG evaluation criteria still has a ways to go, but corporate management standards are already being renewed.


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CJ Logistics' Sustainability Report : A cross-sectional view of the company's ESG management


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CJ Logistics has released the CJ Logistics Sustainability Report 2019-2020 which presents its ESG management performance. The report covers key issues of the company's sustainability management, such as its response to climate change, safety and health management, and activities and performance in areas the company is most competitive in.
▶ Download the report

Among them, its performance in green logistics, such as the use of electric trucks and its plastic upcycling business, stands out. This was also introduced in the UN’s International Webinar on the Sustainable Private Sector held in December of last year as an ESG best practice. The report also highlights achievements in offshore offices, including the winning of the Green Supply Chain Award 2020 in U.S. and supply of construction materials to COVID-19 quarantine wards in Wuhan, China.



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Various eco-friendly practices of CJ Logistics for a shared value

 
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CJ Logistics is involved in environment-friendly activities, considered a key element in ESG management. It has distributed 2,000 vests made from recycled plastic bottles to delivery drivers and field technicians while introducing 300 zero- carbon pallets made from recycled plastics to logistics centers. The company is also making improvements to packaging by replacing plastic cushioning materials and tape with paper. The logistics company is also planning to turn its Green Map Campaign, which creates urban forests in areas where forests are scarce, into a non-face-to-face event with citizen participation.

In early June, CJ Logistics signed the Making Jeju Clean by Eliminating the Use of Disposable Cups agreement, which aims to reduce 5 million disposable cups per year. The Ministry of Environment, Jeju Island, Korea Airports Corporation, Starbucks, SK Telecom, and Happy Connect have also signed this agreement. Starbucks stores in Jeju now use reusable cups instead of single-use cups. Reusable cups are circulated from the store to recovery machines, washing stations, and fulfillment centers, then return back to the store. Here, CJ Logistics performs the fulfillment duties necessary in this process, including the storage, collection, and delivery of cups.



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Disposable cup reuse process
1. Reusable cups are provided.
2. Cups are returned to the recovery machine.
3. Recovered cups are cleaned.
4. Cups are delivered from the fulfillment center to stores.


04
Current status of ESG management by companies in Korea and abroad


Global companies have taken preemptive measures to set up ESG governance and implemented specific actions. Apple announced the Racial Equity and Justice Initiative (REJI). Under the $100 million initiative, Apple plans to build the world’s first educational hub for historically black colleges and open the first Apple Developer Academy in Detroit, home to over 50,000 Black-owned companies.

Nestlé, a global food & beverage company, is focusing on ESG in the food industry by cutting down the sugar in its major product lines by one-third from 2000 levels. Popular brand KitKat has promised to be carbon neutral by 2025, while outdoor clothing brand Patagonia has launched eco-friendly products. In the past three years, the company has grown over 30% on average each year.



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ESG management has no borders nor industrial divisions. Companies cannot but grow into creators of sustainable values. ESG management will not only better a company, but also benefit both people and the Earth.

Image source : Nestlé (www.nestle.com) and Apple (www.apple.com)

▶ Learn more about CJ Logistics' Sustainable Management

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