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Supply Chain Management

SK Materials has strived for a true mutual growth with its suppliers and operated an initial assessment and regular assessments on the five sectors of suppliers’ management, technologies, quality, environment and safety. Through the assessment, SK Materials aims to manage ESG risks and improve ESG implementation level of its suppliers.

Mutual Growth Council

SK materials Inc. set up a process that reflects the needs of its partners in the operation of the shared growth program and has operated a shared growth consultation system since its establishment in 2020 to expand communication with its partners.

SK materials, 동반성장 협의회, 협력사 및 2차 협력사

SK materials operates 3 subcommittees (management support, SHE, and quality) for the systematic operation of the shared growth program and plans to establish an ECO subcommittee and focus on ESG risk improvement activities of its partners. In order to develop systematic and constructive shared growth activities, decisions related to the shared growth council are made through a CEO-led meeting.

SK Materials conducts various support programs for suppliers including management supports, analysis supports, and SHE Risk Check, and listens to the needs of suppliers through the mutual growth meetings. In 2021, we carried out the mutual growth programs for 31 member companies of the council (28 companies in 2020), and expanded its culture and benefits to 20 of Tier 2 suppliers by offering education opportunities and promoted signing a fair trade and mutual growth agreement. We will continue to build and strengthen a cooperative relationship with suppliers, improving the ESG level of the entire value chain.

Mutual Growth Council
    2021 Expanding Mutual Growth system  
  • Reorganizing sub-committee programs aligned with ESG factors
    (ECO, Quality / Analysis, Human Rights / Labor, etc.)
  • Active communication with suppliers to raise ESG awareness
    2023 Improving competency of value chain in each ESG factor
  • Developing programs including online trainings, seminars, consulting and ESG cooperation tasks
    2025 Maximizing the results of the mutual growth throughout the value chain
  • Monitoring achievement of each area and improving data including environment and safety indicators

Supplier ESG Management System

Supplier Code of Conduct

SK Materials established a supplier code of conduct in December 2020 to create a sustainable industrial ecosystem. The Code of Conduct is based on the Code of Conduct Version 7.0 of the Responsible Business Alliance (RBA), and all core suppliers have agreed to comply with the code.

  • Human Rights and Labor

  • Health and Safety

  • Environment

  • Ethical Management

  • Management System

Supplier ESG Risk Management

SK Materials has established an ESG risk assessment system for its suppliers based on the Supplier Code of Conduct, and evaluated the overall ESG implementation not only in the environmental and safety areas but also human rights, labor, and ethical management. After the assessment, we will classify high-risk suppliers and provide them with ESG improvement programs in each area as well as performance measurement, and monitor their improvement through the Mutual Growth program. In 2021, ESG risk assessment was introduced to 25 suppliers, and will be expanded to major suppliers (over 70% of them) and new suppliers by 2023. SK Materials will put much effort to improve ESG management of the entire value chain through evaluating and monitoring ESG risks of all suppliers in 2025.

Fair Procurement

  • Fair Procurement of Raw and Subsidiary Materials

    Prohibiting the use of conflict minerals

    SK Materials specifies and complies with fair procurement principles in the procurement regulations with its suppliers, to prevent environmental and social problems that may occur in the supply chain of the procurement of raw and subsidiary materials.

  • Expansion of Social Purchasing

    Green purchasing Purchasing products and services from social enterprises

    SK Materials established the social purchasing principle in the purchasing regulation to fulfill our social responsibility in the purchasing process and therefore realize social value.