Materiality Assessment

DEFINING CORE ISSUES BY MATERIALITY Assessment

CJ Logistics conducts a ‘materiality assessment’ that helps us to analyze and identify critical economic, environmental and social issues, which may either reflect a significant impact on the business performance or substantively influence the assessments and decisions of stakeholders.

MATERIAL Assessment RESULTS

The level of internal and external stakeholders’ interests and impact on our business were considered and ten material issues were identified as a result.

Selection of Topics to be Reported

Business Competitiveness

Secure future growth engines that can lead the paradigm of global logistics

The Fourth Industrial Revolution has created a paradigm shift in logistics. Securing smart logistics technology is essential to gaining a competitive edge and improving efficiency and customer satisfaction through the expansion of infrastructure and automated services. CJ Logistics is leading the revolution of business paradigms by building a TES-based convergence and innovation system.

CJ Logistics’ Response

TES-based Convergence Logistics Innovation System

CJ Logistics has developed a convergence logistics innovation system based on Technology (T), Engineering (E), and Systems & Solutions (S).
Based on our expertise in TES, we will lead smart logistics and secure logistics digitalization technology in response to the fast-changing market environment and hence lead paradigm shifts in the logistics industry.

R&D Projects

To develop systems and solutions that can be applied to diverse situations in the field, CJ Logistics is committed to securing cutting-edge logistics equipment and new technologies. Accordingly, from 2018 to the end of 2019, research activities were carried out in various fields, including CPG/distribution, textiles, and electronics. Moving forward, CJ Logistics will make continuous efforts in technology development to lead at the forefront of logistics innovation.

Environmental Management

Realize global top tier environmental friendly logistics

With the advent of the fourth industrial revolution, the logistics paradigm is rapidly changing. Securing smart logistics technology has become an important factor in determining a company's competitiveness, and through expanded and automated logistics infrastructure services, we can improve customer satisfaction and the efficiency of our logistics system. CJ Logistics strives to lead the evolution of the logistics business paradigm by establishing a TES-based integrated logistics innovation system.

Building an Environmental Management System

Environmental Management System

The CJ Logistics Division considers the business characteristics in providing global logistics services to conduct various strategic tasks and eliminates potential environmental risks to build a sustainable environmental management system.

The Construction Division identifies the environmental impact of the construction activities in all divisions of construction including construction, engineering, business management, and service, and conducts environmental impact evaluations and manages potential pollutants. As such, we are doing our best to deliver eco-friendly business management.
We have organized and are operating a division dedicated to environmental management to guide executives who handle environmental issues, HQ safety environment teams, and employees tasked for environmental care at each worksite. Through this division, we are systematically and preemptively integrating and managing enterprise-level environmental issues.

Environmental Management Vision and Goals

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1. Role

   • Developing an Advanced Environmental Management System
   • Respond to Climate Change
   • Minimize Environmental Risks
   • Standardized Global Environmental Management

2. Mission

   • Prior Elimination of Environmental Risks
   • Build a Sustainable Environmental Mission Management System for the Future

3. Vision

   To Achieve Top Global Level Green Management

Environmental Management System Certification

CJ Logistics focuses on maintaining and making a robust environmental management system. Since the Incheon branch has received the environmental management system certification in 1999, the Logistics Division expanded the certification scope to the entire enterprise in 2010. The Logistics Division has maintained the certification since. The E&C Division has obtained environmental management system certification and is maintaining it on the engineering, architecture, house-building, electricity, industrial/environmental facilities, and firefighting constructions and on ICT constructions.

As part of the activities to strengthen the environmental management system, we conduct internal appraisal trainings for on-site training and self-monitoring to each worksite supervisors. Through these activities, we have been strengthening the managerial capacity of relevant employees and enhancing the function of the worksite environmental management systems. By enhancing the environmental management system of the enterprise, we plan to make continuous efforts to identify potential environmental risks in advance and minimize environmental impacts.

ISO 45001 Certificate

E&C Division ISO14001 Certificate

Responding to Climate Change and Saving Energy

GHG Emissions Control System

CJ Logistics compiles the energy usage volume of the HQ and all worksites each month and automatically calculates GHG emissions to manage GHG gases in order to reach GHG emissions reduction targets. Through comprehensive analysis of the collected data, the GHG reduction target until 2021 is set and the implementation plan is established to proactively manage GHG/energy targets.

GHG Offset Activities

CJ Logistics is conducting a wide variety of activities to conserve community environments and reduce GHG emissions. To reach our goal of planting up to 240,000 trees, we have been afforesting closeddown roads and idle land on highways. From 2018 we implemented a Gangseo Hangang River Park Carbon Offset Forestation event to reduce carbon emissions with green plants. We have also introduced electricity-driven delivery tools in our businesses, such as silver delivery services, while collaborating with SMEs to develop and use eco-friendly electric carts to reduce GHG.

Energy Usage Reduction Activities

CJ Logistics’ use of energy is concentrated in logistics delivery activities and building energy usage. In order to save energy in the logistics transportation segment, we are continuously providing Eco-Driving training to improve the couriers’ driving habits and prevent them from wasting too much energy via engine idling, etc. Using the integrated logistics system, we are managing energy by increasing logistics efficiency and decreasing empty transfer rates. We are striving to cut down the energy usage in buildings as well. As part of our various energy conservation activities, we have installed and replaced lighting in buildings, including the logistics center, with high-efficiency LED lights and installed a solar energy facility on the roof of our logistics center.

Efficient Resource Management

We have devised waste management guidelines to minimize unavoidable waste, which is generated during logistics business operations, and manage them efficiently. Moreover, we have come up with internal standards to minimize environmental pollution and conserve resources and systematically manage waste generation volume. In the E&C Division, unlike ordinary resorts that depend on automatic watering, we proactively use hand watering to minimize unnecessary water usage. We have introduced low-flush toilets and water tank storage compressors to improve the efficiency of water usage.

In 2018, a total of 63 tons of muddy water were filtered and reused to reduce the amount of water used for recycling. We will continue to make efforts to compressors to all golf courses in operation to the prevention and environmental pollution of resources through the establishment and spread of an efficient resource management system.

Safety and Health

Establishment of Safety & Health System

Safety and Health System

CJ Logistics operates a safety management system based on its mid/long-term safety management plans along with the ‘Safety Management Team’, which is the CJ Group’s safety management overseer.
The logistics segment is standardizing the enterprise’s SHE for systematic management to prevent safety and health issues that may occur in the process of business operations and conducting continuous worksite safety environment diagnosis. The construction segment is making efforts to establish an upbeat and healthy safety-first culture by establishing an autonomous safety and health management system.

CJ Logistics is reflecting opinions on each business segment including the establishment of a prevention plan, selection of safety and health training items, and monitoring and improvements in the work environment through the operation of an enterprise “safety management working-level committee.” In addition, a separate safety manager is designated in the Line organization in each worksite to make efforts for worksite safety management. In 2018, we established a safe delivery environment team to raise the level of safety and health management in the courier segment.

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Establishing a Site-Centered Safety Management System

Risk Management

• Managing and Improving Key Risks

  • Company-wide Risk Assessment and Improvement
  • Improvement, Investment Process Improvement

• Establishing Monitoring System

  • Safety Management Activities & Key Indicator Management

• SDR Implementation

  • secure work environment for employees at the design stage : Operating facilities, safety facilities, etc.

• Low Carbon Green Logistics Activities and Reducing GHG Emissions

  • Undertaking Green Logistics Activities
  • Energy conservation to reduce greenhouse gases : Achievement of government-set objectives

Autonomous Safety Systems

• Strengthening organizational safety management

• Re-establishing worksite safety officer R&R

  • Worker ➡ Supervisor Role Strengthening
  • Middle manager ➡ Management Supervisor Role Strengthening
  • ※ Strengthening the selection of workplace health and safety officers

• Reinforcing the education of a safety management mindset

  • Improving the health and safety education of all employees
  • Improving the collective education of management supervisors

Central Control Tower

• Reforming practical standards for safety management

  • Reforming all practical standards relating to SHE
  • Strengthening operations in accordance with practical standards ➡ Checks and improvements through auditing

• Implementation of company-wide audits

  • Establishment of Audit/reward implementation guidelines
  • Implementation of company-wide audits and regular reports
  • Rewarding outstanding businesses

• Establishment of a health management system

  • Establishment of a health management operating process : Re-establishment of R&R for all staff
  • Implementation of medical examinations and management of the sick

Safety Management System Certification

As a preventative method to remove safety risks that may occur in businesses operations, the Logistics Division is establishing and implementing risk evaluation and prior safety evaluation guidelines. We renewed the OHSAS 18001 system certification in 2017. By preparing and distributing the English version along with the safety management system manual, procedural sheets and guideline revisions, we have enhanced the safety management competency of our global worksites.

Likewise, the E&C Division manages safety and health management at a level higher than the legal requirements for OHSAS 18001 certification. We are also periodically planning and operating risk analysis and prevention programs and making efforts to establish and internalize autonomous safety and health management systems. In 2018, the International Organization for Standardization replaced the existing OHSA S18001 international standard for health and safety risk management and prevention with ISO 45001, an international standard for health and safety systems. CJ Logistics was certified for switching from OHSAS 18001 to ISO 45001.

CJ Logistics ISO 14001 Certificate

Standardizing the SHE Pre-Questionnaire

To achieve global standards of safety management and systematic external communication, the logistics division of CJ Logistics has strengthened its field safety response capabilities using ISO 45001, an international standard, as a basis to standardize its SHE Pre-Questionnaire. The questionnaire consists of 11 items, including safety policy, health management, safety monitoring, risk assessment, and emergency response systems, and will continue to be updated in accordance with stakeholders' needs - such as external safety assessment standards and client companies.

Worksite Cleaning Day

The E&C Division conducts a weekly worksite cleaning day to organize the site and eliminate safety risk factors. Through this activity, we seek to create safer work environments, prevent accidents, and promote a culture of on-site safety establishment.

Safety and Health Management in Partner Companies

Building Transportation Management System for Harmful Chemical Substances

To prevent accidents that may arise in the transportation of harmful chemical substances by partner companies, CJ Logistics has built a harmful chemical substance system in collaboration with partner companies, external professional institutes, and professional consultation firms. Beginning with the “Safety Partnership Among Partners” work agreement in 2016, we built a management system to transport harmful chemical substances by partner companies. Through this collaboration, we have developed and published the partner companies’ safe transportation management manuals and solutions, thereby allowing them to strengthen their own safety management competencies. In addition, we plan to eventually share this relevant system with all partner companies.

Harmful Chemical Substance Transportation Management System

Supporting the Health and Safety Capabilities of Partner Companies

The logistics division of CJ Logistics provides special training to employees of our partner companies, with the aim of preventing industrial accidents. To ensure safety, industrial, firefighting and traffic safety training is conducted for all employees at all of our partner company sites. Through diverse activities and initiatives, we will continue to strive towards creating a safer working environment.

Manage Global Safety and Health

CJ Logistics’ Logistics division strives to minimize the rate of accidents by proactively identifying and responding to safety and health risks that arise from its global expansion. To this end, the company works with the group's safety management team to conduct safety diagnoses of its workplaces in each country. The potential risks and improvement measures derived from the diagnoses are shared with our operations in each country, including Korea, so that improvements can be made. Moving forwards, we will continue to help improve safety standards in our global workplaces.