Samsung Biologics Publishes ESG Report... Leap Toward a Sustainable CDMO

Incheon Songdo Samsung Biologics Plant 3 (Photo by Samsung Biologics)

[Asia Economy Reporter Chunhee Lee] Samsung Biologics is taking the lead in environmental, social, and governance (ESG) management with the goal of becoming a ‘sustainable contract development and manufacturing organization (CDMO)’ company.

Samsung Biologics announced on the 11th that it has published an ESG report (formerly known as the Sustainability Management Report) summarizing the key achievements and future plans of its ESG management over the past year. This is the second report published following last year’s, containing more proactive and detailed ESG implementation goals and plans.

Under the mission of ‘Driven. For A Sustainable Life,’ Samsung Biologics has selected three core values: ▲Creating a sustainable environment (Environment) ▲Building a healthy society (Social) ▲Conducting responsible business activities (Governance), and has established detailed strategies for nine key focus areas related to these values.

Samsung Biologics' ESG Vision and Mission

First, as part of creating a sustainable environment, Samsung Biologics plans to focus on reducing greenhouse gas emissions. Following its success in reducing the greenhouse gas intensity (basic unit, the amount of consumption required to produce one product or a certain quantity) by 32.3% compared to the previous year, the company has set targets to reduce direct and indirect greenhouse gas intensity by 54.3% and value chain greenhouse gas intensity by 25.7% by 2026 compared to 2021. Furthermore, it aims to reduce greenhouse gas emissions throughout the value chain, including suppliers and logistics, while actively participating in global climate change initiatives such as RE100 (Renewable Energy 100%) and the Science Based Targets initiative (SBTi).

Samsung Biologics is participating as a representative of the CDMO industry in the UK Royal-led climate change initiative, the Sustainable Markets Initiative (SMI), exploring ways to reduce carbon emissions in the supply chain. It is also actively involved in various climate change response activities, including the global Carbon Disclosure Project (CDP) and the Financial Supervisory Service’s climate and environmental risk management model development project (Frontier 1.5D).

Samsung Biologics is also carrying out various activities to build a healthy society. Aiming for win-win management with its partners, it is strengthening ESG-related codes of conduct for suppliers and developing diagnostic indicators, while conducting ESG assessments and audits for key suppliers. Proactive measures are underway to create a safe working environment for all employees, including suppliers. In March last year, a task force to eradicate serious accidents was established, composed of heads and team leaders from 24 departments, focusing on process risk assessment, intensive management of hazardous tasks, and identification and improvement of potential risks.

Various social contribution activities are also being conducted. These include scholarships for underprivileged youth in the Incheon area, medical expense support projects for patients with intractable diseases, donations of bio raw materials and equipment, and support for youth bio academies, contributing to community development and caring for socially vulnerable groups. Additionally, starting this year, Samsung Biologics plans to actively promote social contribution programs in collaboration with Samsung affiliates, such as the ‘Dream Class’ career experience camp for middle school students from low-income families, the ‘Hope Stepping Stone’ program supporting youth aging out of institutional care to settle and become independent, support for children and youth from multicultural families, and assistance for the elderly.

In terms of governance, Samsung Biologics is striving for effective board operations to ensure responsible business activities. Last year, it established an ESG Committee to strengthen the establishment and oversight of ESG-related policies, and created an Internal Accounting Evaluation Group directly under the Audit Committee to specialize and enhance the independence of internal controls centered on the Audit Committee.

John Lim, CEO of Samsung Biologics

Since fully launching ESG management, Samsung Biologics achieved an integrated A grade in the ESG evaluation by the Korea Corporate Governance Service (KCGS) last year, becoming the first biopharmaceutical company to do so. It was also included in the Dow Jones Sustainability Index (DJSI) World, a global ESG evaluation, ranking among the top 10% of ESG management companies out of the world’s top 2,500 companies by market capitalization. Notably, applying the Total Impact Measurement and Management (TIMM) methodology, it was found that the social value (SV) created by Samsung Biologics over the past year amounted to a total of 1.6 trillion KRW.

John Rim, CEO of Samsung Biologics, said, “We hope that our proactive response to ESG will serve as a catalyst to promote and spread ESG adoption in the CDMO industry, which is still in its early stages. We will continue to innovate to protect human health, safety, and the environment, and strive to become a sustainable CDMO and a leading ESG company.”

This content was produced with the assistance of AI translation services.