GS Caltex Expands Supply Chain ESG to Subsidiaries and Partner Companies

ESG Evaluation Conducted for 331 Key Partner Companies

Huh Se-hong, CEO of GS Caltex

[Asia Economy Reporter Oh Hyung-gil] GS Caltex announced on the 30th that it will strengthen supply chain ESG (Environmental, Social, Governance) management targeting its partners, subsidiaries, and overseas affiliates to build a sustainable supply chain.

The company plans to expand the supply chain ESG evaluation over four months targeting 331 key partners, allowing partners to review policies, implementation, and compliance overall. The evaluation questions are composed of four areas reflecting domestic and international ESG trends: human rights and labor, safety and health, environment, and ethics and management systems.

Since his inauguration in 2019, GS Caltex CEO Heo Se-hong has accelerated ESG management through a vision statement aiming to become "the most respected energy and chemical company based on the industry's best competitiveness."

Accordingly, GS Caltex established a partner code of conduct in 2018 and conducted a pilot supply chain ESG evaluation. The target expanded from 107 companies in 2020, 316 companies in 2021, to 331 companies this year. Prior to this partner ESG level evaluation, last month, the company checked the ESG status of subsidiaries and overseas affiliates to strengthen the supply chain management system.

Additionally, ESG education will be conducted early next month for participating partners. The program consists of content necessary for partner management, such as ESG concepts, latest trends, and response measures. It is a course to understand the essence of ESG and develop core competencies. Partners will receive diagnostic result reports on risk factors and improvement items for each ESG category, enabling them to accurately identify ESG risks and improve their ESG level through improvement efforts.

GS Caltex also plans to provide ESG management consulting by visiting selected partners based on diagnostic results together with an expert advisory group.

A GS Caltex official said, "As the importance of systematic supply chain management is gradually increasing, practicing ESG management together with partners is an essential element for sustainable growth," adding, "We will continuously support partners with ESG information and consulting to enhance corporate competitiveness and achieve win-win management together with partners."