Samsung C&T Declares 'Coal Phase-Out', Halts New Coal Projects... Shifts to Eco-Friendly Management

[Asia Economy Reporter Suyeon Woo] On the 27th, the board of directors of Samsung C&T declared a 'coal phase-out management' policy, announcing the complete suspension of new investments, construction, and trading business related to coal, and the gradual withdrawal from existing businesses as projects are completed or contracts expire.

Samsung C&T's Governance Committee, composed entirely of outside directors, comprehensively reviewed various factors such as intergovernmental relations, trust from customers and partners, and construction technology regarding participation in the Vietnam Bungang 2 coal-fired power project on the 23rd of last month, and provided an opinion on business participation. On the 23rd of this month, the committee also held in-depth discussions on company-wide coal phase-out measures.

Based on the Governance Committee's discussions, Samsung C&T's board decided on the 'coal phase-out policy' to fully suspend new coal-related businesses in order to join global efforts to respond to climate change risks and establish an eco-friendly management stance.

In the construction sector, the company plans to apply environmental standards stricter than international norms in the ongoing construction of the Gangneung Anin thermal power plant and the newly participating Vietnam Bungang 2 coal-fired power plant. From this day forward, Samsung C&T declared that it will not participate in any coal-fired power-related business in any form, including investment and construction.

The trading division will continue to provide stable services for existing coal trading contracts but will gradually withdraw from related businesses as existing contracts expire.

Going forward, Samsung C&T plans to continuously expand its eco-friendly business portfolio focusing on its core businesses such as LNG combined power and storage facilities, and renewable energy (wind/solar).

With this coal phase-out declaration, Samsung C&T aims to contribute to the transition to a low-carbon society by reducing greenhouse gas emissions, enhance resource use efficiency to establish a circular economy system, and strengthen its eco-friendly management stance by discovering and expanding eco-friendly products and services.

Samsung C&T will continue to actively communicate with various stakeholders and make every effort to establish itself as a company that creates sustainable value.

Meanwhile, Samsung C&T announced its third-quarter results for this year, with quarterly sales of 7.85 trillion KRW and operating profit of 216 billion KRW. Sales increased by 1.5%, and operating profit remained at the same level as the previous year. A Samsung C&T official explained, "Despite the overall market contraction caused by the novel coronavirus disease (COVID-19), we were able to maintain the same level of profit as last year due to the recovery of the Chinese economy, which expanded raw material demand in the trading division, and increased factory operating rates in the bio division."