Supply Chain
Supply Chain Management System
Policy
SK Gas is implementing systematic ESG supply chain management to meet stakeholders’ demands for sustainable management and to respond to changes in domestic and international supply chain regulations. To this end, we have established a Supplier Code of Conduct and associated guidelines, as well as Supply Chain ESG Management Guidelines approved by the CEO, in order to pursue mutual growth with our partners. We conduct ESG assessments focusing on key suppliers and carry out continuous monitoring.
All suppliers with whom we do business are required to comply with the requirements of the Supplier Code of Conduct, and this obligation is explicitly stated in our contracts. In addition, by establishing and operating eco-friendly procurement guidelines, we foster a procurement environment that takes social value into account.
Furthermore, based on the three core values of shared growth, SK Gas practices collaborative management by operating various financial and non-financial support programs aimed at the sustainable growth of our suppliers.
Three Core Values of Shared Growth
- 공정거래 준수
- 상생협력 강화
- 협력사 소통
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.