SK Square

Win-win Management

SK Square strives to enhance the ESG capabilities within the value chain based on a cooperative relationship with our business partners. We have policies and procedures for the sustainable “Win-Win management”.

Supplier Management Policy

In accordance with the sustainability terms of ESG, SK Square has established a supplier management policy. In order to expand ESG management and strengthen the executive capacity of suppliers, we have established and shared the Supplier Code of Conduct.

Bidding Policy
Supplier selection principles, bidding process, detailed guidelines, etc.
General Principles for Purchasing
Compliance with corporate social responsibilities such as shared growth and labor, human rights, anti-corruption, and the environment
Supplier ESG Code of Conduct
Guidelines for business partners’ social responsibility and ethical business management

Supplier ESG Code of Conduct

Bidding Policy	Supplier selection principles, bidding process, detailed guidelines, etc.
General Principles for Purchasing	Compliance with corporate social responsibilities such as shared growth and labor, human rights, anti-corruption, and the environment
Supplier ESG Code of Conduct	Guidelines for business partners’ social responsibility and ethical business management Supplier ESG Code of Conduct

Supplier

ESG Management

SK Square operates an ESG risk management process to systematically manage the sustainability of suppliers. We conduct preliminary screening for all suppliers (new / existing) every year based on the “Supplier ESG Code of Conduct”.

Supplier ESG Risk Management Process

Registration
Pre-screening
Result review
Monitoring

Status quo of Supplier ESG Risk Management (Pre-screening process)

Total number of newly registered suppliers
Unit	Company
2022	61
2023	48

Number of screening sessions
Unit	Company
2022	61
2023	48

Percentage of high-risk suppliers
Unit	%
2022	0
2023	0

Percentage of pre-screening completed
Unit	%
2022	100
2023	100

Category	Unit	2022	2023
Total number of newly registered suppliers	Company	61	48
Number of screening sessions	Company	61	48
Percentage of high-risk suppliers	%	0	0
Percentage of pre-screening completed	%	100	100

Shared Growth Principles

SK Square promotes sustainable growth with its suppliers through a trading culture based on fairness and trust. SK Square aims for shared growth based on three principles.

Shared Growth Principles: Observance of the Fair Trade Commission’s recommendations to establish a fair trade culture: usage of the Open4U system(SK Square purchasing portal) - Continuous efforts to maintain the fair selection of business partners, promotion of their rights and interests, and the enhancement of our internal self-regulation activities standards; Promotion of the win-win culture by expanding programs and systems related to shared growth; Enhancement of the suppliers’ competitiveness via mutual collaboration and systematic support

Go to Open4U, the SK Square purchasing / shared growth portal

Shared
Growth Support
Program

SK Square's shared growth program is centered on management support, investment support, and the opening of communication channels. Knowing that the competitiveness of our partners is also the biggest competitiveness of SK Square, we will always seek ways to promote mutual growth.

Information on SK Square Shared Growth Program

Program	Overview
Partner communication channel and regular off-line meetings	Seeking shared growth by opening regular meetings and communication channels
Early payment	Payment within 30 days to alleviate the burden on suppliers’ cash liquidity

Program	Overview
Partner communication channel and regular off-line meetings	Seeking shared growth by opening regular meetings and communication channels
Early payment	Payment within 30 days to alleviate the burden on suppliers’ cash liquidity

Communication and Supporting programs for Win-Win growth

SK Square will implement communication and supporting programs for Win-Win growth with its suppliers. In accordance with the Fair Trade Commission’s recommendations, we further aim the establish fairness and transparency in the trading culture for our direct suppliers, by 2023.

Number of supplier meeting sessions
Unit	Session
2022	-
2023	1

Total amount of early payment for supplier goods
Unit	KRW 1 million
2022	37,576
2023	34,169

Category	Unit	2022	2023
Number of supplier meeting sessions	Session	-	1
Total amount of early payment for supplier goods	KRW 1 million	37,576	34,169

Sustainability