Sustainable supply chain management
Laws and regulations on labor standards, safety, and environment have been strengthened, while stakeholders demand for sustainable supply chain as a result of unethical issues such as forced labor and child labor that occur across the business supply chain as well as safety and environmental accidents. To manage business risks and fulfill social responsibility across the overall value chain, Amorepacific Group strives to enhance the sustainability of its strategic partners. To this end, the Group established sustainable management guidelines for partners to assess sustainable management and offers improvement measures and support to partners with inadequacy.
Sustainable Management Guidelines for Amorepacific Group Partners
Sustainable Management guidelines for Amorepacific Group’s business partners are required by Amorepacific Group’s business partners to build a safe working environment for Amorepacific Group partners and respect their workers and fulfill their responsibilities for eco-friendly and ethical business management. This guideline defines the requirements that companies are responsible for for all Amorepacific Group partners.
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Sustainable Management Assessment of Partners
Partner Selection Policy
Amorepacific Group conducts business transactions only with those that satisfy our minimum sustainability requirements at the point of business contract. The Group conducts sustainability assessment of all new partners, reviewing compliance with legal requirements regarding quality, product safety, labor standards, safety and health, and environment, by which the Group decides whether to enter a contract. In addition, Amorepacific Group requires all partners to comply with Amorepacific Group’s Code of Ethics and Partner Sustainability Guidelines, when signing contracts.
Sustainable Management Assessment of Partners
Amorepacific Group has established, and requires all partners to comply with, the Partner Sustainable Management Guidelines, which set out 36 items on human rights and labor, health and safety, environmental protection, ethical management, and other areas that need to be considered in order to fulfill social responsibilities. The group also prepared a manual on how to practice the guidelines, disclosing it to all partners.
Amorepacific Group, especially, conducts annual sustainability assessment of key partners and partners with certain transaction volume, and reflects the results in partner assessment. Based on the assessment results, the Group offers incentives such as giving priority in receiving support for shared growth programs or in allocating quantity of goods supplied. It requests improvements to any partner with severe social or environmental risks identified and continues to monitor and review the results and progress of improvement measures.
| Category | 2020 ~ 2022 |
|---|---|
| Share of new partners that have received sustainability assessment (%) | 100 |
| Share of significant suppliers that have received sustainability assessment through third party more than once in recent 3 years (%) | 100 |