ESG Challenges and Response Strategies in Aerospace Supply Chain : Focusing on Aerospace Component Manufacturers

[Purpose] In the context of the mandatory requirement on ESG disclosure for companies, there is an expansion of ESG disclosure participation among leading global aerospace industry companies and the importance of ESG supply chains is being emphasized. This study aims to provide a strategic improvement in response to ESG supply chain in the aerospace industry by analyzing the current level of ESG supply chains, focusing on small and medium-sized enterprises(SMEs) manufacturing the aerospace components. [Methodology] The study assesses the level of ESG compliance within the aerospace supply chain by examining the current state of ESG among the SMEs and identifies the weak elements for improvement. The study explores internal improvement strategies and external support measures to enhance ESG supply chain within the domestic aerospace industry. [Findings] The study concluded that the awareness and preparation level for ESG supply chains in the aerospace industry are at an early stage. Environment(E) was found to be the most lacking, followed by Governance(G) and Social(S). Consequently, it was determined that prioritizing (E) is required by establishing strategies to prepare ESG supply chain. Due to the limitations of SMEs in terms of the financial and human resources, the concrete external support from the industry and government authorities are strongly needed. [Implications] This study provides a leading research foundation for the sustainable aerospace industry supply chain and the aerospace component manufacturers by emphasizing the necessity of ESG supply chain preparations with specific improvement measures. It also provides insights into the necessity of ESG supply chain system and strategic directions for internal and external stakeholders in the aerospace industry.