Supply Chain
Supply Chain Management System
Policy
In response to stakeholder demands and changes in domestic and international supply chain regulations, SK Gas implements systematic ESG supply chain management. We have established and enforced a Code of Conduct and guidelines for our Partners, approved by top management, to foster mutual growth. ESG assessments and continuous monitoring are conducted, especially focusing on key suppliers. All Partners are required to comply with the Code of Conduct, which is stipulated in our contracts. Additionally, we have formalized a green purchasing policy to create a socially responsible purchasing environment.
Furthermore, SK Gas operates various financial and non-financial shared growth programs with our Partners, centered on three core values of shared growth.
Three Core Values of Shared Growth
Guidelines on Code of Conduct
of SK Gas Partner Companies
SK Gas Partner Code of Conduct
Three Core Values of Shared Growth
- Compliance with Fair Trade
- Strengthening Win-Win Cooperation
- Communication with Partners
Governance
SK Gas manages its supply chain through departments responsible for purchasing, technology, fair trade, and legal affairs. To ensure transparency in procurement and prevent unfair practices, an internal review committee is operated, led by the purchasing executive, for contracts exceeding 5 KRW billion for private contracts and 10 KRW billion for competitive procurement.
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- Chairperson
- Purchasing Executive
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- Members
- Purchasing Department PL
- Technology Department PL
- Fair Trade Department PL
- Legal Department PL
Supply Chain Management Strategies
Supply ESG Risk Management
SK Gas selects and manages its primary suppliers, who have the most significant impact on its business operations, as key management suppliers. Every year, we identify and address supply chain risks through ESG risk assessments in areas such as environment, safety and health, human rights, labor, ethics, and governance. For high-risk suppliers with high assessment results, we provide improvement directions and action plans through coaching, consulting, and due diligence. We also receive improvement implementation plans and monitor whether improvements are being made.
Partner ESG Risk Evaluation Process
- Selection of Key Partners
- Self-assessment using 66 Evaluation Indicators (Partners)
- Self-assessment Coaching and Consulting
- Third-party Verification
- Selection of High-risk Partners
- Coaching/Consulting for High-risk Partners
- Receipt of Improvement Plans (High-risk Partners)
- On-site Audits and Monitoring of High-risk Partners
Support Program for Supply chain partners
SK Gas defines its supply chain partners as 'extended family' and strives for shared growth. To support the stable management of its partners, we provide support for ESG risk diagnosis along with various management training programs, and also operate financial support programs such as the operation of a win-win growth fund. Above all, we operate various programs to ensure the safety of partner employees and communication channels to listen to their voices.
Contractors' Grievance Channel
SK Gas operates regular partner meetings to listen to partners' grievances and suggestions. In particular, regarding industrial safety and health issues, we present and discuss opinions through separate workplace-specific meetings to prevent safety accidents. Additionally, we operate various human rights counseling/reporting channels to prevent and remedy human rights violations of partner employees, and disclose the results of their receipt and processing.
Socially Responsible Purchasing Policy
SK Gas reflects its commitment to prioritizing the purchase of socially-oriented products (products from small and medium-sized enterprises, women-owned enterprises, businesses employing people with disabilities, and social enterprises, etc.) and eco-friendly products in its purchasing management regulations to preserve a sustainable environment and social ecosystem. We disclose our annual purchase performance through our sustainability report.