Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions by 4,120 tCO2-eq in 2021 through various initiatives including a platform for oil usage management and modal shift to railway transportation.
• Generated 8,446 MWh of solar power by the end of 2021, reducing GHG emissions by 3,938 tons.
• Reduced GHG emissions by 3,947 tCO2-eq through 251 cases of modal shift to railway service in 2021.

Social Achievements

• Maintained a 91% ratio of regular permanent employees with an employee turnover rate of 3.3% at the end of 2021.
• Conducted 16 training courses for executives and employees in 2021, with an average completion rate of 95.1%.
• Achieved a 92% re-contracting rate with key shippers in 2021.
• Implemented various CSR programs through the Sebang Lee Eui-sun Foundation, spending approximately KRW 9 billion since its launch.

Governance Achievements

• Established an Internal Trading Committee in March 2022 to supervise internal trading and ensure transparency.
• Implemented a self-initiated fair trade compliance program in 2022.
• Maintained a 100% board attendance rate in 2021.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Economic uncertainty and the risk of COVID-19 resurgence.
• Need to comply with the Serious Accident Punishment Act.
• Need to enhance safety management capabilities.
• Need to secure more space at New Busan Port warehouses and yards.

Mitigation Strategies

• Implemented strategies to transform crises into opportunities.
• Strengthened internal control systems and ethics training.
• Appointed a Chief Safety Officer (CSO) and assigned safety managers at 12 corporate sites.
• Made active investments in core business lines and explored M&A deals.
• Developed a risk reporting system using QR codes.

Supply Chain Management

Responsible Procurement

• Green procurement activities for equipment, appliances, and office supplies.
• Requirements for compliance with eco-friendly practices in contracts with partner companies.

Climate-Related Risks & Opportunities

Physical Risks

• Abnormal climate phenomena (heat and cold waves, heavy snow, typhoons, etc.)

Transition Risks

• Tightening environmental regulations and demands for environmental responsibility.

Opportunities

• Development of green logistics services and renewable energy business.

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards

Certifications: ISO 14001, KOSHA-MS

Third-party Assurance: Korea Management Registrar (KMR)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 4: Quality Education
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions

Sebang contributes to these goals through eco-friendly logistics services, responsible management, strategic partnerships, and CSR activities.

Awards & Recognition

• Grand prize in Global e-Business segment (2020)
• Selected as Excellent Partner of SK Nexilis (2020)
• Grand Prize in Global Standard Management (2020)
• Enterprise with Excellent Labor-Management Culture (2020)
• Certified as Outperforming Service Quality Company in Korea (2021)

Environmental Metrics

ESG Focus Areas

• Environment & Safety
• Social
• Governance

Environmental Achievements

• 14.9% reduction of GHG emissions per unit (vs. previous year)
• GHG reduction performance: 4,670 tCO2eq
• Reduction of energy consumption: 66 TJ
• Solar power generation: 10,516 MWh
• Independent solar power generation by SOLVIC Unit No.9.

Social Achievements

• Contract renewal rate of major shippers: 95%
• Maintained certification as Outstanding Service Quality Company in Korea
• Increased safety management budget by approximately 30% compared to the previous year
• Introduced a 4-channel video recognition system for SPMT equipment and heavy equipment
• Average employee length of service: 13 years; turnover rate: 5.3%

Governance Achievements

• Introduced the CP (Compliance Program) and established a dedicated CP organization in 2022
• Established a contract management team at key business sites to verify contracts and achieve cost reduction
• Acquired the AEO AA certification in three categories
• Established the Internal Transaction Committee to eradicate unfair internal transactions

Climate Goals & Targets

Environmental Challenges

• Growing demand for stronger responses to carbon neutrality, including the EU's Carbon Border Adjustment Mechanism (CBAM)
• Need to systematize carbon data, including Scope 3 emissions information

Mitigation Strategies

• Developing and implementing carbon emission management and reduction plans, including Life Cycle Assessment (LCA)
• Systematizing carbon data, including Scope 3 emissions information
• Setting long-term goals for carbon neutrality and defining short-term response strategies

Supply Chain Management

Supplier Audits: 119 companies evaluated in 2022

Responsible Procurement

• Mandatory for partner companies to pledge to comply with the Code of Ethics
• Green purchase guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative), SASB (Sustainability Accounting Standards Board), AA1000AP

Certifications: ISO 14001, KOSHA-MS, AEO AA

Third-party Assurance: KMR (Korea Management Registrar)

UN Sustainable Development Goals

• Goal 1
• Goal 4
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 16

Sebang's eco-friendly logistics services and social contribution activities contribute to these goals

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Grand Prize at the Global e-Business Awards
• Grand Prize at the Global Standard Management Awards
• Selected as an Excellent Partner of SK Nexilis
• Grand Prize for Protecting the Socially Disadvantaged at the 1st Jeju Community Public Order Awards

Environmental Metrics

ESG Focus Areas

• Green Logistics
• Workplace health & safety management
• Establishment of fair trade
• Ethical management
• Management & reduction of greenhouse gas emissions
• Management of ESG management risks
• Management of energy consumption
• Customer satisfaction management
• Expansion of logistics infrastructure

Environmental Achievements

• 5.1% reduction of GHG emissions per unit (vs. previous year)
• 28,028 tCO2-eq total GHG emissions in 2023 (1.5% reduction compared to the previous year)
• 9,829 MWh of power supplied by operating solar power generation facilities (equivalent to reducing GHG emissions by 4,515 tCO2-eq)
• 5,184 tCO2-eq greenhouse gas emissions reduced through modal shift
• 73 TJ energy saving performance

Social Achievements

• Contract renewal rate of major shippers: 93%
• USD 123 thousand donated to local communities
• Bronze Award at the AEO Utilization Case Sharing Contest
• USD 448 thousand spent on Sebang Lee Ui Sun Foundation’s social responsibility projects
• Training aimed at enhancing service capabilities (approx. 1,300 sessions)

Governance Achievements

• Introduction of the autonomous compliance program for fair trade
• 100% BOD attendance rate
• Introduction of the CP program
• Publication of the Compliance Letter

Climate Goals & Targets

Environmental Challenges

• Ongoing global economic recession and unstable international situation

Mitigation Strategies

• Thorough preparation for the future and strengthening the competitiveness of core businesses
• Creating a transparent management environment
• Continuously securing future growth drivers
• Preparing for industrial changes (digital transformation initiatives)

Supply Chain Management

Supplier Audits: 141 companies evaluated in 2023

Responsible Procurement

• Code of Ethics for Partner Companies
• Green purchasing guidelines
• Guidelines for selecting qualified contractors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB

Certifications: ISO 14001, ISO 9001, KOSHA-MS, AEO

Third-party Assurance: KMR (Korea Management Registrar)

UN Sustainable Development Goals

• Goal 1
• Goal 4
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 16

Sebang's initiatives contribute to these goals through various social contribution programs, renewable energy projects, green logistics practices, ethical management, and compliance initiatives.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Grand Prize at the Global Standard Management Awards (2023)
• Bronze Award at the AEO Utilization Case Sharing Contest (2023)
• Excellent Service Quality Company Certification (2021-2024)