CJ LOGISTICS SUSTAINABILITY REPORT 2018-2019 REPORT SUSTAINABILITY LOGISTICS CJ This report is printed on FSC™(Forest Stewardship Council) Certified paper with soy ink. CJ LOGISTICS SUSTAINABILITY REPORT 2018-2019 FORWARDING & INTERNATIONAL EXPRESS STEVEDORING & TRANSPORTATION CONTRACT LOGISTICS PROJECT LOGISTICS PARCEL www.cjlogistics.com ABOUT THIS REPORT CONTENTS 04 CEO Message SUSTAINABILITY AROUND THE GLOBE 54 USA Summary BUSINESS OVERVIEW 56 China CJ Logistics publishes a sustainable management report each year to 08 CJ Management Philosophy 58 India transparently disclose its economic, social, and environmental activities 09 About Us 60 Vietnam and achievements. We plan to publish a sustainable management report every year as a communication tool for stakeholders to reflect 11 Our Business 62 Others and maintain steady growth. 18 Global Network SUSTAINABILITY MANAGEMENT Reporting Period and Scope SUSTAINABILITY ISSUES 66 Corporate Governance This is a report on the key sustainable management performance 22 Business Performance 68 Risk Management during the period between January 1, 2018 to June 30, 2019. It includes 28 Safety and Health 70 Customer Satisfaction quantitative performance data from the most recent three years or 34 Environmental Management 72 Information Security more to identify trends. Some important information include details 74 Compliance from up to the second half of 2019 to facilitate your understanding. The SUSTAINABILITY FUNDAMENTALS 76 Human Rights report covers all work sites of CJ Logistics in Korea. Some information 77 Stakeholder Engagement from overseas work sites are also included. 40 Employees 78 Materiality Assessment 45 Partners 80 UN SDGs Report Preparation Standards 48 Community This report has been prepared in accordance with the Core Option of the Global Reporting Initiative (GRI) Standards, which is a standard for international reporting of sustainable management. Please refer to the APPENDIX GRI Index on p.89 for details. 84 Financial Information 85 Sustainability Management Performance Data Report validation 88 Current Awards and Certifications The accuracy and reliability of the content and data in this report 89 GRI Index has been secured through validation by a third party independent 92 GHG Emissions Verification institution. Refer to p.93-94 for validation results. 93 Third Party Assurance 95 Award-winning Performance & Memberships Contact Information UN Global Compact This report is available to read or download on the CJ Logistics Website. If you have additional inquiries or information concerning the report, please contact us using the information below. Your opinion is always welcome. CJ Logistics Address CJ Logistics Building, 53 Sejongdaero-9-gil, Junggu, Seoul Telephone 1588-1255 E-mail [email protected] Website http://www.cjlogistics.com CJ Logistics Sustainability Report 2018-2019 Respected stakeholders, CEO Message CJ Logistics is contributing to the economic growth of Korea based on our founding principle, “Business that benefits society,” as a total logistics company that represents the Republic of Korea. At CJ Logistics, even amid the challenging business environment of protectionist trade and global economic uncertainty, we have endlessly adapted and innovated as leaders of the logistics industry. Through CSV, we are contributing to the development of our nation and society. This sustainable management report will look back on CJ Logistics’ economic, environmental, and social performance and efforts, and present a direction for sustainable development, thereby strengthening communication with our stakeholders. We are committed to seeking profits and increased shareholder value as well as to the fulfillment of our social responsibility under the three following goals. We will be a respected partner to our customers and employees. CJ Logistics is acknowledged for its management performance which is centered on “customers,” including taking the top spot for seven consecutive years as the Most Admired Company in Korea in the total logistics service segment in a survey by KMAC. Going forward, we are fully committed to strengthening business competence and competitiveness to provide the logistics services wanted by customers. We plan to secure skilled talent and develop them into core members of the logistics industry to take the lead in global logistics. In addition, we are committed to the steady improvement of the business environment based on on-site management to allow all employees to work safely and promote their health. We are committed to taking the top place among our peers by securing expertise. By changing the management paradigm, we plan to strengthen cost-leadership and secure expertise through selection and focus. We will lead the logistics trends, which rapidly change through development and investment in the latest logistics technologies. Through meticulous analysis of the business environment and infrastructure of countries we have already entered, we will solidify our global business foundation. We will also maximize synergy among businesses by further optimizing our competence and enterprise support system. We will fulfill our corporate social responsibility based on CSV To solve various social issues in Korea and abroad, CJ Logistics is committed to proactively supporting and participating in the UN Sustainable Development Goals (SDGs) and fulfilling our social and environmental responsibilities. We will do this work based on our management philosophy of creating the best values and contributing to our national economy by delivering “ONLYONE” products and services. We plan to provide quality jobs to the vulnerable, senior citizens, and disabled persons through our Silver Delivery service, thus continuing to support their social participation and capability to earn income, and increase CSR activities where all employees participate to contribute to the community. Environmentally, we are committed to proactively responding to climate change by working on reducing greenhouse gasses (GHG) and fine dust. We are taking the lead in conserving the environment through eco-friendly activities for local communities including the creation of urban forests. At CJ Logistics, we pledge to enhance our position as a global total logistics solution provider through endless innovation and growth for another robust takeoff towards the future. We ask for your sustained interest and support as our stakeholders. “ CJ Logistics will serve Thank you. as a Global Logistics November 2019 company by generating CEO of CJ Logistics new value through Guen Hui Park endless innovation and challenges.” 04 05 BUSINESS OVERVIEW Leveraging the most comprehensive infrastructure in the nation, CJ Logistics is realizing an industry- leading logistics service. With cutting-edge TES logistics technology and an extensive global logistics network, CJ Logistics offers a peerless One-Stop logistics solution that connects the world. 08 CJ Management Philosophy 09 About Us 11 Our Business 18 Global Network CJ Logistics Sustainability Report 2018-2019 Management About Us CJ Way About CJ Logistics Philosophy CJ is committed to creating exemplary value and contributing to our global society by delivering “ONLYONE” Since its foundation in November 1930, CJ Logistics has led the growth of the logistics industry in South Korea, products and services. To this end, we focus on “First”, “Best” and “Differentiated” in our value chain and provide developing as a Global SCM Innovator with our global logistics network, business portfolio, and unique business innovative products and services for our customers. As a global lifestyle and culture company, we will continue to capabilities. In March 2018, we merged with CJ E&C to expand our business presence in the construction, improve the quality of people’s daily lives and promote our unique culture around the world. property and resort sectors. We will continue to differentiate our customer service by maximizing the synergy between our different business sectors and developing our core competencies to step up as one of the Top-Tier integrated logistics companies in the world. CJ Management Philosophy Corporate Profile (As of June 2019) MISSION Name of company CJ Logistics Co., Ltd. Presidents Park Keun-hee, Park Keun-tae, Kim Chun-hak CONTRIBUTING TO GLOBAL SOCIETY BY Date of incorporation November 15, 1930 No. of shares issued 22,812,344 PROVIDING EXEMPLARY VALUE WITH OUR Location of head office CJ Logistics B/D, 53, No. of employees 6,220 ONLYONE PRODUCTS Sejongdae-ro 9-gil, Jung-gu, Seoul (full-time staff) AND SERVICES Areas of business SCM, delivery service, E&C Sales KRW 9,219.7 billion (as of December 31, 2018) Credit rating Korea Korea Investors NICE (commercial paper) Ratings: A1 Service: A1 Rating:A1 VISION GLOBAL LIFESTYLE COMPANY INSPIRING Core Business HEALTH, HAPPINESS, Our core business areas include a contract logistics service, parcel delivery, forwarding and international express, AND CONVENIENCE stevedoring and transportation, project logistics, and E&C. We maximize value for our customers by providing customer-oriented solutions based on the expertise and know-how we have gained over the years. CORE VALUES TALENT ONLYONE SHARED GROWTH Contract Forwarding & Stevedoring & Logistics International Express Transportation EXCEPTIONAL FIRST BUILDING TALENT STRONG & BEST ECOSYSTEMS Providing a comprehensive In addition to comprehensive Optimizing our service by taking ADAPTIVE DIFFERENT SHARED VALUES logistics service by operating