Sustainable Supply chain
Sustainable Supply chain
Supply chain
Management Policy
Hanwha Ocean has established the Supply Chain ESG Management Policy with CEO approval to promote co-prosperity and sustainable growth with stakeholders within the supply chain. This policy applies to all domestic suppliers directly contracted with Hanwha Ocean who have agreed to the Supplier ESG Code of Conduct, and requires compliance throughout the downstream supply chain. We identify and manage key suppliers and priority management suppliers based on their importance, incorporating ESG management diagnosis and the Code of Conduct into regular supplier evaluations and new supplier contracts to proactively prevent supply chain risks and promote suppliers’ participation in ESG management.
Supply Chain
Management
Strategy
Hanwha Ocean aims to strengthen suppliers’ competitiveness and co-prosperity management for sustainable supply chain management. To this end, we actively encourage suppliers’ participation in ESG activities. Our goal is to achieve a 100% ESG evaluation rate for major tier-1 suppliers by 2030.
Conflict Minerals
Policy
Hanwha Ocean recognizes human rights violations and environmental destruction caused by mineral mining in conflict and high-risk areas as critical issues. Accordingly, we have established a Conflict Minerals policy based on relevant laws, the Dodd-Frank Wall Street Reform and Consumer Protection Act’s conflict minerals provisions, OECD due diligence guidelines, and other international standards to practice responsible management. We have established a system to avoid using conflict minerals such as tin, tantalum, tungsten, and gold illegally mined in ten African countries, and we require all suppliers to comply with codes of conduct based on OECD due diligence guidelines.
Supplier Safety and
Health
Risk
Evaluation
Hanwha Ocean conducts pre-contract safety and health eligibility reviews through evaluations of industrial accident prevention capabilities and technologies when contracting with internal and external suppliers. We periodically assess supplier safety and health levels to internally diagnose safety awareness and understand the field conditions. Evaluations are based on HSE management performance, safety diagnostics by specialized institutions for suppliers, and other factors. Suppliers with low grade receive safety consulting, focused safety diagnostics, and practical guidance to strengthen their autonomous safety capabilities. We invest approximately KRW 500 million annually to enhance supplier’s safety and health capabilities by contracting with specialized diagnostic institutions designated by the Ministry of Employment and Labor as safety management experts. These institutions reside on-site and provide safety diagnostic consulting for in-house suppliers.