SK Hynix Conducts ESG Online Self-Assessment for First-Tier Suppliers

[Asia Economy Reporter Jeong Hyunjin] SK Hynix announced on the 24th that it conducted an online self-assessment of supply chain ESG (Environmental, Social, and Governance) for its first-tier suppliers as part of sustainable supply chain management.

SK Hynix explained that it carried out this assessment by enhancing its ESG evaluation system last year to identify potential risk factors in the ESG areas within the supply chain and to support suppliers in improving their ESG management capabilities. The main evaluation categories were four areas based on the SK Hynix Supplier Code of Conduct: labor and human rights, safety and health, environment, and ethics. The evaluation process proceeded through stages of preliminary status check, supplier self-assessment, on-site evaluation, and utilization of results.

The assessment was conducted from July to September last year using an online self-assessment system, with approximately 89% of all first-tier suppliers participating. SK Hynix classified suppliers whose self-assessment results were in the bottom 10% or those related to major ESG issues as high-risk groups and has been conducting on-site evaluations for these suppliers since last month. Afterwards, the company plans to deliver analysis reports for each supplier, select key improvement tasks, and support monitoring.

In addition, SK Hynix stated that it plans to continuously expand the scope of on-site evaluations and post-support targets to mitigate ESG risks within the supply chain and help suppliers strengthen their ESG management capabilities.

Lee Bangsil, Vice President in charge of ESG Strategy at SK Hynix, said, "Managing ESG risks within the supply chain is not optional but essential," adding, "We will continue to advance the ESG evaluation system and strengthen supply chain sustainability through regular assessments in the future."