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Shared Growth

Shared Growth

The essence of SK bioscience’s shared growth is the ‘Pursuit of Happiness for Stakeholders,’ which is the foundation of SK Group’s management. We seek to build trust through shared growth and cooperation and pursue productivity, corporate competitiveness, and innovation by identifying suppliers as primary stakeholders.

SK bioscience practices shared growth and cooperation by protecting partners’ rights from the partner selection phase to the conclusion of transactions in order to establish a fair trade order, believing that fair trade is at the heart of the shared growth strategy. We strictly adhere to the applicable laws and regulations, such as the Monopoly Regulation and Fair Trade Act, the Act on the Regulation of Terms and Conditions, the Act on Fair Transactions in Subcontracting, and the Act on Fair Labeling and Advertisement, which were enacted to promote free and fair competition and maintain appropriate trade order.

To expand the shared growth program in the future, we would like to operate desirable contract signing guidelines for shared growth between large and small enterprises. In signing the contract, we will discuss with the other party to decide on a delivery date suitable for regular practice. If we place an urgent order by requesting a shorter delivery time than usual, we will make sure we consult with our partners beforehand. Moreover, we will systematically prohibit unfair price reductions and reasonably determine or adjust subcontracting costs using the affordable unit price calculation methods. The methods reflect rising raw material prices, exchange rate fluctuations, and inflation factors.

Sustainable Supply Chain

Believing that securing the sustainability of the supply chain is essential for complete quality management, SK bioscience pursues shared growth along with ESG risk management and competency enhancement for its business partners. ESG evaluation process will be added to the existing supply chain evaluation. Meanwhile, we will implement various programs to encourage our suppliers to initiate ESG management and create a culture of shared growth. Based on our supply chain ESG policy and management system, we will take on the leading role in establishing a sustainable Global Biopharma Ecosystem.

Supply Chain Scope and Classification

As a company that researches, develops, and produces biomedicine such as vaccines, SK bioscience has established strict standards to evaluate and register partners.

<Supply Chain Classification>

Supply Chain ESG Risk Assessment and Management

Our partner registration process includes a compulsory evaluation that encompasses credit rating evaluation, financial evaluation and third-party transaction performance via our procurement portal. Based on the results, any companies that scored above our baseline become eligible for a partnership and are given a notice in writing (including the electronic document) within 15 days in the case of final selection. A supplier can either appeal or request a reevaluation within 15 days of notice.

Every year, we evaluate our existing partners’ technology, quality, responsiveness, delivery time, cost, and finance. In addition, a comprehensive evaluation is conducted based on transaction data and data provided by them.

To manage ESG risks in the supply chain and support their ESG management capabilities, SK bioscience will work with specialized external institutions to promote processes from self-diagnosis to evaluation and improvement of partners. The supply chain ESG evaluation and management areas include ethics, anti-corruption, labor, human rights, safety & health, and the environment. We will establish an evaluation system by conducting a self-diagnosis (organized by our partners) and pilot evaluation.

<Supply Chain ESG Evaluation Process>

Based on the evaluation results, we ask partners to develop an improvement plan and monitor the implementation performance according to the plan. If the outcome of corrective actions falls short of our criteria, we will take action, for example, imposing penalties on transactions.

Managing and Supporting Business Partners

SK bioscience intends to contribute to creating a more sustainable Global Biopharma Ecosystem by not only focusing on our own ESG performance but also inducing and supporting the ESG management of our business partners.

We provide the ‘BP Ethics Pledge’ before contracting with our business partners and receive a signed copy to demand compliance with it. In 2022, we plan to adopt a supplier code of conduct and encourage them to comply with it. Consisting of areas such as ethics and anti-corruption, labor and human rights, safety & health, and the environment, it provides a comprehensive guide for suppliers to practice ESG management.

We and our partners will strive to internalize ESG management in the supply chain within the bio-ecosystem by preparing a self-contained ESG checklist, procurement code of ethics, and bidding evaluation guide.

<Supply Chain ESG Internalization Policy>

<Sustainable Supply Chain Management Framework>

Partner Communication Channels

SK bioscience maintains and develops cooperative relationships through various communication channels with purchasing partners. In 2021, we listened to the grievances of our partners and actively communicated for shared growth and cooperation. As an additional action plan, we will prepare an online suggestion box where our partners can deliver the difficulties they are facing and their opinions on system improvement. The confidentiality of the informant’s identity and the information they provide is guaranteed, and we plan to manage it so that the informant faces no retaliation or disadvantages. In addition, we plan to operate The Voice of Suppliers for secondary and tertiary partners to establish fair trade practices throughout the supply chain and ensure transparency.

SK bioscience operates reporting channels so that employees can report any unfair behavior at any time.

Corporate Philanthropy Principles

In 2022, SK bioscience will restructure its corporate philanthropy strategy. We propose to engage in philanthropic activities in three areas: fostering global bio-talent, coexistence with local communities, and promotion of healthy life, all with the mission of ‘protecting public health through the establishment of a Global Biopharma Ecosystem.’

We will address the issue of vaccine supply inequality and prepare for the next pandemic by fostering global bio-talent. Furthermore, by identifying the needs of the local communities and cooperating with them, we will contribute to the vitalization of healthy local ecosystems. We will strengthen the social safety net, which was exposed to vulnerabilities during the COVID-19 crisis, and strive to solve social problems that vaccines cannot solve in the medical/health sector.

<Protecting Public Health through the Formation of a Global Biopharma Ecosystem>

<Corporate Philanthropy and Donation Status>

<Corporate Philanthropy and Donation Status>The cost, participants, and time of social contribution activities are indicated from 2019 to 2021.
Corporate philanthropy expense*KRW 100 million111225
Corporate philanthropic activities participationPerson978379
Corporate philanthropic activities participation time per personHour343
  • * Calculated as the total of corporate philanthropy expenses including donations, funds, and in-kind donations

Fostering Global Bio-talent

SK bioscience’s goal is to promote global public health. To that end, we support healthcare research through collaboration with various international organizations and funding. By operating scholarships and sponsoring educational courses, we foster talent in the bio/vaccine field who will work together to achieve the goals of SK bioscience.

Global Bio-talent Training Hub

SK bioscience is committed to fostering global bio-talent. In February 2022, the World Health Organization (WHO) designated Korea as a global biomanufacturing training hub to address the issue of vaccine disparities among countries. By participating as a partner institution and supporting education/site tours, SK bioscience intends to focus on developing the next generation of bio-talent.

<Basic Research and Human Resources Development>

Talent Development

SK bioscience also provides scholarships to foster talent. At Seoul National University’s Department of Life Sciences and Boseong High School, we plan on operating the Park Man-Hoon Scholarship by annually granting 10 students with KRW 5 million over a five-year period. Meanwhile, at Andong University, eight students will be promised KRW 2 million every year under the same scholarship program.

Basic Research Support

In November 2021, SK bioscience created the Park Man-Hoon Award with the International Vaccine Institute (IVI) to honor the late Vice Chairman Park Man-Hoon, who improved the company’s research capabilities to today’s level through dedication to vaccine programs and R&D. Every year, two individuals or organizations are awarded prize money(KRW 100 million each) for their contributions to vaccine discovery, development, and distribution, as well as global health improvement. In April 2022, Dr. Tore Godal, special adviser to the Coalition for Epidemic Preparedness Innovations (CEPI) received the award for his contribution to distributing vaccines to developing countries. Also, Professor Drew Weissman and Professor Katalin Kariko of the University of Pennsylvania were co-selected for contributing to the development of mRNA technology.

SK bioscience also plans to establish a system for industry-academia collaboration at Korea University Medical Center to respond to infectious diseases. Based on the agreement, we will jointly establish a domestic and overseas infectious disease monitoring system and conduct vaccine research for the next three years. In order to protect humanity from the new contagious disease crisis, our company has pledged to donate KRW 5 billion to support research expenses.

We are considering signing research agreements with multiple universities at home. Furthermore, we provided KRW 500 million to the Plato Academy and the RIGHT(Research Investment for Global Health Technology) Fund for humanities and basic research in the bio and pharmaceutical fields.

Fostering Bio-vaccine Engineering Majors

SK bioscience plans to support students majoring in bio-vaccine engineering biotechnology at Andong University as a means to foster global bio-talent. We will contribute to the development of employable skills through mentoring, education and collaborative projects, field training, curriculum collaboration, and internship experience. Ultimately, we have a goal to create a platform for cooperation with companies/research institutes, academia, and government/municipalities.

Shared Growth with the Local Communities

SK bioscience is currently engaged in philanthropic activities in order to maintain social value and coexist with the local communities. As corporate citizens, we fulfill our social responsibility by running various programs that connect the underprivileged with local social enterprises, schools, and farms.

<Shared Growth with the Local Communities>

Promoting Healthy Life

In 2022, SK bioscience plans to establish a small library in the form of a book cafe where local citizens can stop by to read, contemplate, and rest. We intend to enhance their mental health and happiness. We aim to build a cultural infrastructure and center for humanities within the local communities by strengthening them and spreading culture. Starting with Andong, Gyeongsangbuk-do, where L HOUSE is located, we plan to build a total of 20 branch offices by 2031, contributing to the improvement of the mental health of local citizens through the ‘Wisdom,Rreflection, and Humanities Program.’

Establishment of a Global Biopharma Ecosystem

SK bioscience will continue its activities to establish a Global Biopharma Ecosystem and fulfill its social responsibilities to create an environment conducive to the continuous growth of industry stakeholders.

<Global Biopharma Ecosystem Overview>