Samsung Biologics Achieves 'A Grade' in Comprehensive ESG Evaluation

Medicine bottles are displayed at the Samsung Biologics exhibition hall, a biopharmaceutical manufacturing company in Yeonsu-gu, Incheon.
[Image source=Yonhap News]

[Asia Economy Reporter Chunhee Lee] Samsung Biologics announced on the 1st that it received an overall 'A grade' in the '2021 Listed Companies ESG (Environment, Social, Governance) Evaluation and Rating Announcement' published by the Korea Corporate Governance Service (KCGS), achieving an A grade or higher in all categories and becoming the first biopharmaceutical company to receive a comprehensive A grade.

The ESG evaluation by the Korea Corporate Governance Service is an ESG assessment index targeting 765 listed companies in Korea. In this year's evaluation, Samsung Biologics received an A+ in the social responsibility management category and an A grade in the environmental management and governance categories, resulting in an integrated A grade, an improvement from last year's B+.

First, in the environmental category, Samsung Biologics introduced global standard energy management systems (ISO 50001) and occupational health and safety management systems (ISO 45001) aiming to achieve the highest level in the biopharmaceutical industry. Within its business sites, energy was conserved through measures such as replacing LED lighting and introducing electric vehicles. Externally, the company participated in the global Carbon Disclosure Project (CDP) and the Financial Supervisory Service's climate environment risk management model development project, 'Frontier-1.5D.' The new factory currently under construction plans to install solar power generators and apply eco-friendly refrigerants to establish a resource-circulating business site.

In the social category, Samsung Biologics has conducted various social contribution activities promoting coexistence with local communities, including diverse industry-academia cooperation and scholarship mentoring to strengthen youth education, as well as medical and childcare support for underprivileged groups. Additionally, to localize raw and subsidiary materials, the company established technological cooperation with domestic small and medium-sized enterprises and built a supply chain management process. It also introduced a code of conduct for partners to encourage ESG practices among its suppliers.

In the governance category, Samsung Biologics separated the roles of the chairman of the board and the CEO and established an ESG committee under the board to enhance governance transparency. The ESG committee is composed of verified outside directors from various fields such as management, economics, biotechnology, law, and systems, performing functions related to the establishment and supervision of ESG policies. The company also operates a dedicated internal accounting department and a business continuity management system (BCMS) to protect the assets of the company and customers and to supply biopharmaceuticals to patients stably.

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