Doosan Strengthens Support for Small and Medium Suppliers Facing Challenges in ESG Management

MOU for Joint Response to ESG Supply Chain between Jungjingong and SMEs

Doosan Corporation is taking steps to support the strengthening of ESG competitiveness for small and medium-sized partner companies.

Doosan Corporation announced on the 2nd that it signed a Memorandum of Understanding (MOU) with the Small and Medium Business Corporation (SBC) at Doosan Tower in Jung-gu, Seoul, to jointly respond to ESG supply chain issues for small and medium enterprises.

As the introduction of the European Union (EU) Supply Chain Due Diligence Act and the legislation of ESG-related matters domestically and internationally are being promoted, the need for corporate ESG management is increasing. However, small and medium partner companies are facing difficulties due to human and material limitations.

The Supply Chain Due Diligence Act, officially called the "Corporate Sustainability Supply Chain Due Diligence Guidelines," requires companies above a certain size to identify potential negative impacts on human rights and the environment throughout their entire supply chain and to implement appropriate response measures such as prevention, mitigation, and elimination.

This agreement was prepared to support small and medium partner companies in proactively responding to ESG overall. Both parties agreed to cooperate in creating an ESG ecosystem for small and medium partner companies by ▲ providing free ESG and carbon neutrality diagnosis ▲ offering follow-up support to outstanding partner companies ▲ fostering specialized personnel in ESG and carbon neutrality.

Doosan Corporation plans to conduct self-diagnostic evaluations for 173 small and medium partner companies this year and provide in-depth diagnosis and carbon neutrality level assessments by the end of the year. Based on these results, follow-up support to enhance ESG capabilities of small and medium partner companies will be promoted starting next year.

A Doosan Corporation official stated, "As the importance of ESG management and carbon neutrality grows globally, the ESG capabilities of partner companies have a greater impact on Doosan Corporation’s business," adding, "We will continue to provide ongoing support to strengthen the ESG competitiveness of small and medium partner companies and prepare various win-win cooperation measures."

Doosan Corporation is carrying out various activities to strengthen partner companies’ competitiveness, including support for building smart factories, online education support, and efforts to close gaps. Over the past five years from 2019 to this year, approximately 3.3 billion KRW has been invested to establish production management systems (MES), product lifecycle management systems (PLM), and support efficient production process management for a total of 29 partner companies.