Sustainability
Sustainable Supply Chain Management
SeAH Changwon Special Steel has established the following standards to ensure its suppliers provide safe working environments, guarantee respect and dignity for workers, and operate in an eco-friendly and ethical manner.
Third-Party Code of Conduct
SeAH Changwon Special Steel has established a Third-Party Code of Conduct, reflecting SeAH Group's strong commitment to ethical and responsible practices.
SeAH Changwon Special Steel strives to become a "company that makes the world more beautiful" by adhering to this Code of Conduct in collaboration with its diverse third-party partners. This Code of Conduct has been developed with reference to the Responsible Business Alliance (RBA) Code of Conduct, and in cases where conflicts arise with local laws, the stricter standard will be prioritized.
01 Labor and Human Rights
Suppliers must respect and uphold the human rights of all individuals, including temporary workers, migrant workers, interns, and subcontracted workers. All workers must be guaranteed lawful employment and rights under local laws.
① Voluntary Employment
② Prohibition of Child Labor
③ Compliance with Working Hours
④ Wages and Benefits
⑤ Humane Treatment
⑥ Non-Discrimination
⑦ Freedom of Association
02 Safety and Health
Suppliers must recognize that the safety and health of workers are essential in all activities conducted as part of the company's operations. Additionally, they must make efforts to ensure that workers are provided with a safe and clean working environment in accordance with local laws and regulations.
① Industrial Safety
② Emergency Preparedness
③ Occupational Injury and Illness
④ Industrial Hygiene
⑤ Physically Demanding Work
⑥ Safety Management of Dangerous Machinery, Instruments and Equipment
⑦ Sanitation, Food, and Housing
⑧ Safety and Health Training
03 Environment
Suppliers must comply with environmental protection laws and regulations to manage greenhouse gases, air pollutants, waste, recycling, industrial water reuse, and chemicals. Efforts must be made to identify and minimize the environmental impact of manufacturing processes and ensure public safety, health, and resource conservation.
① Environmental Permits and Approvals
② Pollution Prevention and Resource Reduction
③ Hazardous Substances
④ Waste Management
⑤ Air Emissions Management
⑥ Material Compliance
⑦ Water Resource Management
⑧ Energy Use and Greenhouse Gas Emissions
⑨ Animal Welfare
04 Ethics and Fair Trade
Suppliers must comply with local laws and regulations, enhancing ethical standards to foster social responsibility and sustainable cooperation.
① Integrity
② Prohibition of Improper Benefits
③ Information Disclosure
④ Protection of Intellectual Property
⑤ Personal Information Protection
⑥ Fair Trade, Advertising, and Competition
⑦ Whistleblower Protection and Non-Retaliation
⑧ Responsible Materials Management
⑨ Compliance with Export Restrictions and Sanctions
⑩ Prevention of Money Laundering and Tax Evasion
⑪ Conflict of Interest Management
05 Management System
Suppliers must establish and continually improve a management system to ensure compliance with this Code of Conduct, related laws, and customer requirements, and to identify risks and opportunities related to this Code of Conduct.
① Statement of Compliance
Commitment
② Executive Duties
and Responsibilities
③ Legal and Customer
Requirements
④ Risk Management
⑤ Improvement Goals
⑥ Training
⑦ Communication
⑧ Member Feedback, Participation,
and Grievance Handling
⑨ Audits and Assessments
⑩ Corrective Action Process
⑪ Documents and Records
Purchasing Strategy
SeAH Changwon Special Steel is committed to the philosophy of win-win growth, focusing on supply chain management for mutual benefit while pursuing fair trade and socially responsible purchasing policies. In particular, amidst the rapidly changing environment, the company has strengthened its fundamental purchasing competitiveness, enhanced supply chain capabilities, and implemented a purchasing strategy that ensures supply stability through supply chain internalization and diversification. Furthermore, SeAH Changwon Special Steel has established sustainable purchasing strategy standards and developed a system to respond flexibly to external changes, continuously enhancing its purchasing response capabilities.
01
Supply Chain Management for Mutual Growth
The core of our strategy is a sustainable purchasing approach that fosters mutual growth within the supply chain. The company supports suppliers through initiatives such as win-win support measures, selecting and rewarding excellent suppliers, and holding regular face-to-face meetings. Additionally, it goes beyond standard support by offering training, joint risk response, and consulting to help its supply chain grow as a business partner.
02
Socially Responsible Purchasing Policies
SeAH Changwon Special Steel is committed to socially responsible procurement practices. The company actively manages the sourcing of minerals with potential conflict risks, taking proactive measures to mitigate these risks at the origin. Furthermore, the company promotes preferential trading policies for ESG-certified or ISO-accredited suppliers to advance its socially responsible procurement policies.
03
Pursuing Ethical Management and Fair Trade
SeAH Changwon Special Steel is fully committed to fair trade, ensuring transparency and accountability in all processes from bidding to delivery and settlement, grounded in ethical management. All key partners jointly sign an ethical pledge, working together to eliminate unethical business practices.
04
Strengthening Fundamental Procurement Competitiveness
The company is strengthening its core purchasing competitiveness through strategic sourcing by leveraging data-driven price forecasting, identifying new suppliers, and jointly developing new products.
05
Ensuring Supply Chain Stability
In order to secure supply chain stability amid rapidly changing external environments, SeAH Changwon Special Steel is actively pursuing both supply chain internalization and diversification. In addition, proactive risk management is applied across the entire supply chain, covering all items, not just raw materials, to ensure smooth production processes.
06
Agile Organization for Flexible Response
The company operates flexible organizational structures, such as project TFTs and matrix organizations, alongside its traditional procurement team. This approach allows us to focus on addressing external environmental changes and resolving key issues, effectively driving our procurement strategy.
Responsible Minerals
SeAH Changwon Special Steel adheres to the principle of not using industrial minerals produced in conflict regions in its products.
None of the Nome of the products actually produced by produced by the company contain conflict minerals such as tin, tantalum, tungsten, or gold (3TG).
Definition
Responsible minerals go beyond the concept of conflict minerals, emphasizing the prevention of funding armed conflicts and the protection of human rights and the environment.
[Responsible Minerals]
Conflict Minerals (3TG): Tin (TIN), Tantalum (TANTALUM), Tungsten (TUNGSTEN), Gold (GOLD), Conflict Zones (10 countries)
Conflict Zones (10 countries): DR Congo, Congo, South Sudan, Rwanda, Burundi, Uganda, Zambia, Angola, Tanzania, Central African Republic
Additionally, the concept extends to minerals from regions where human rights violations occur.
[Relevant Regulations]
United States: Dodd-Frank Wall Street Reform and Consumer Protection Act (July 2010)
Europe: European Union Regulation on Conflict Minerals (May 2017)
[Countries covered by conflict minerals]
Policy
SeAH Changwon Special Steel has incorporated a clause prohibiting the use of illegally mined raw materials into its procurement policy, supplier code of conduct, and standard procurement contracts since 2016.
The company actively participates in CFSI (Conflict-Free Sourcing Initiative) activities, including due diligence, reporting, and discussions with smelters.
To ensure that no responsible minerals are added to its products, the company manages its processes meticulously, such as receiving declarations confirming the non-use of conflict minerals.
Process
SeAH Changwon Special Steel recognizes the severe issues of human rights violations and environmental destruction caused by mineral mining in conflict zones. To fulfill its social responsibility and comply with laws related to responsible minerals, the company continuously improves its responsible mineral management processes.
If responsible minerals such as tin or tungsten are supplied, supply chain management activities will be initiated.
-Adopting the OECD Due Diligence Framework for Responsible Supply Chains
-Conducting Due Diligence Surveys
-Verifying smelter status using the EICC Conflict Minerals Reporting Template (CMRT)
Process
SeAH Changwon Special Steel recognizes the severe issues of human rights violations and environmental destruction caused by mineral mining in conflict zones. To fulfill its social responsibility and comply with laws related to responsible minerals, the company continuously improves its responsible mineral management processes.
If responsible minerals such as tin or tungsten are supplied, supply chain management activities will be initiated.
-Adopting the OECD Due Diligence Framework for Responsible Supply Chains
-Conducting Due Diligence Surveys
-Verifying smelter status using the EICC Conflict Minerals Reporting Template (CMRT)
Future Direction
Currently, SeAH Changwon Special Steel does not use responsible minerals. However, the company plans to focus on continuous monitoring of its suppliers' mineral procurement practices and expand its no-use policy for responsible minerals to secondary suppliers, ensuring its effective establishment. Additionally, to prepare for potential controversies surrounding the minerals handled by the company in the future, SeAH Changwon Special Steel intends to establish a communication channel for stakeholders.
Mutual Growth
SeAH Changwon Special Steel strengthens the competitiveness and partnerships of its suppliers
through forward-looking mutual growth policies and support programs.
