CJ Logistics Corporation

CJ Logistics aims to convert its entire fleet of courier vehicles and long-haul trucks to low-carbon fuels by 2030. This will total approximately 30,000 vehicles. In 2021, CJ Logistics strengthened this commitment by joining the South Korea Ministry of Environment’s K-EV100 initiative, which aims to transition to 100% zero-emission vehicles by 2030. The company’s level of ambition exceeds the 30% low-carbon road vehicle share required by the 1.5°C sector scenario in 2030. However, the company needs to demonstrate significant investment to achieve its goal. In 2021, the company had only converted 44 1-tonne courier vehicles to electricity and two 11-tonne freight trucks to hydrogen.

CJ Logistics has set a target to reduce emissions by 4% by 2025 across its road operation. This is inadequate to achieve its low-carbon transition. The company does not disclose the emission scopes or starting year of the target. It is unclear if it covers subcontracted transport emissions or excludes offsets. To demonstrate commitment to the low-carbon transition, the company should set short, medium and long-term targets, aligned with the level of decarbonisation required to meet its 1.5°C pathway. It should ensure that its targets cover all transport emissions, including those from subcontracted and shipping activities.

CJ Logistics does not publicly report activity data. The company reports emissions intensity as an economic metric only, rather than as the volume of CO2e per tonne-km. As a result, the company’s alignment with its 1.5°C pathway or 1.5°C carbon budget cannot be determined. CJ Logistics should disclose its activity and emissions intensity data split by transport mode and between owned and subcontracted activity. By collecting and reporting this data, the company can better understand its climate performance. This can help it to develop a more tailored and comprehensive transition plan to ensure it does not exceed its carbon budget and successfully aligns with a low-carbon economy.

CJ Logistics has developed elements of a transition plan that cover its domestic road freight and parcel delivery operations. However, the company’s subcontracted and shipping operations do not feature in its climate management disclosure. Having created an ESG committee in 2021 to manage climate strategy, the company should strengthen its climate management by including all transport operations, as well as subcontracted activity in its planning. It should also begin incentivising the management of climate change risks and opportunities throughout the company, particularly at the level of decision-makers.

CJ Logistics has no strategy or initiatives to drive emissions reduction in its supply chain. This includes transport subcontractors that undertake most of the company’s global logistics operations. However, in 2021, it started to collect scope 3 emissions from subcontracted transport. In addition, in 2022, it signed an agreement with the vehicle manufacturer, Kia, to help convert the company’s trucks to electric power. The company should aim to further develop partnerships and collaborate with vehicle manufacturers to develop low-carbon innovations. It should also begin to engage with its subcontractors to encourage them to reduce emissions.

CJ Logistics has set a target to reduce emissions by 4% by 2025. It does not disclose the target’s emissions scopes or base year. The company has not committed to any medium or long-term emission reduction targets.

CJ Logistics plans to replace or convert its delivery trucks with electric and hydrogen power by 2030. This totals approximately 30,000 vehicles.

The company has converted 44 1-tonne courier vehicles to electricity and two 11-tonne trucks to hydrogen, representing less than 0.2% of its road fleet. It has signed an agreement with the vehicle manufacturer, Kia, to help deliver its transition to low-carbon road vehicles.

CJ Logistics does not disclose sufficient activity or scope 1 and scope 3 subcontracted emissions data between 2015 to 2020 to provide a meaningful assessment of its historical emissions intensity trend.

Most of the company’s transport emissions are from subcontracted transport. Although CJ Logistics has an ambitious plan to decarbonise its owned fleet of trucks, it has not incorporated subcontracted activities into its transition planning.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

The company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in job creation. For instance, it partners with public programmes to offer jobs to the senior population. However, no evidence was found of the company committing to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company can strengthen its commitments to respecting human rights and all of the ILO fundamental rights at work. Furthermore, it can increase disclosure on its human rights due diligence process and engagement with affected stakeholders. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. While the company discloses the gender of its workforce by employee category, it can increase disclosure on additional indicators of workforce diversity. Furthermore, the company can strengthen its commitment to gender equality and women’s empowerment. Additionally, it can increase disclosure on its living wage, working hours and collective bargaining practices.

The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data of employees and customers. While the company has a policy prohibiting bribery and corruption, no relevant disclosure was found regarding anti-bribery and anti-corruption clauses in its contracts with business relationships. Furthermore, the company can strengthen disclosure regarding its global tax strategy and its approach to lobbying.