SK D&D has established and operates a win-win growth management system to strengthen mutual growth and win-win cooperation with its business partners. The Legal/SCM Part, as the lead organization, overseas and manages the entire supply chain encompassing the business value chain, striving to build a sustainable supply chain through collaboration with operational and specialized departments based on procurement types. We also strengthen partnerships with our business partners through a transparent and fair transaction system, and operates programs that are focused on improving and supporting ESG management among partners to enhance the global competitiveness of excellent business partners. Moving forward, we aim to expand our business partners support programs to seek long-term win-win partnerships and create synergies for sustainable future growth.

SK D&D has established and publicly disclosed its 8Supplier (Business Partner) Code of Conduct9 to manage a sustainable supply chain and build an ecosystem that fosters win-win cooperation. The Code includes compliance guidelines for various categories such as environmental, safety and health, business ethics, human rights, labor, and management systems, enabling business partners to internalize and implement ESG management while adhering to laws and regulations applicable to their business activities.

SK D&D requires all new and existing business partners to affirm that they will comply with the Supplier Code of Conduct upon contract signing. We assess their compliance status item by item to pursue win-win growth, encouraging them to develop alongside SK D&D as socially responsible companies. Furthermore, to strengthen ongoing partnerships with outstanding suppliers and foster healthy relationships while identifying unqualified suppliers, we evaluate partners not only on their compliance with contractual obligations but also on their ethical conduct.

Supplier Code of Conduct

SK D&D incorporates ESG-related factors—such as unethical conduct and violations of industrial safety and health regulations—into its criteria for selecting and managing business partners, systematically evaluating their level of social responsibility and sustainability risk. For new business partners, SK D&D conducts a preliminary evaluation of social responsibility and sustainability risks prior to contract signing. For existing partners, the company performs an annual contract performance evaluation to continuously monitor sustainability risk. Through this management system, all business partners working with SK D&D meet the company’s rigorous evaluation standards. In doing so, SK D&D seeks to enhance sustainability across the entire supply chain and establish a collaborative framework for mutual growth.

To ensure fair and transparent contracting practices, SK D&D operates separate processes for competitive bidding and negotiated (single-source) contracts. In the procurement process, the company maintains a clear separation of duties between the requesting department—which initiates orders, manages bidding, and submits procurement requests—and the dedicated procurement team, which reviews quotations and finalizes contracts. This segregation of roles ensures fairness in procurement decisions and strengthens compliance risk management throughout the process.

For negotiated contracts, SK D&D has established a rigorous review mechanism to address potential risks in the transaction process. The Legal/SCM Part reviews a formal single-source contract evaluation form, and all such contracts must be reviewed and approved by an internal deliberation committee. This committee—comprising a chairperson, standing members, and non-standing members appointed by the head of procurement—evaluates the appropriateness of vendor selection and pricing. Their assessments are directly reflected in the final contract terms. Looking ahead, SK D&D remains committed to fostering a fair and transparent trading environment by clearly defining standards and procedures, while cultivating a mutually beneficial partnership ecosystem with its business partners.

SK D&D conducts regular contract performance evaluations of its business partners to improve supply chain management practices and comply with SK Group’s compliance standards. These evaluations cover sustainability-related criteria such as unethical conduct and the implementation of safety incident prevention measures. Through this evaluation process, the company strives to maintain a sound and responsible pool of partners.