Samsung SDI Gaining Attention for ESG Management

[Asia Economy Reporter Hwang Yoon-joo] Samsung SDI, which is promoting eco-friendly businesses such as batteries for electric vehicles and ESS (Energy Storage Systems), is gaining attention for its ESG management.

According to the industry on the 24th, Samsung SDI is focusing on product quality, safety, and compliance ethics management to achieve sustainable growth. In terms of quality and safety, the company analyzes market demands and consumer needs to develop safe products for various usage environments and strives for uniform product production through manufacturing standardization and automation.

Not only domestically but also at overseas subsidiaries, Samsung SDI continuously dispatches quality management personnel and conducts step-by-step training for local staff, accelerating efforts to enhance global competitiveness through quality leveling.

Additionally, Samsung SDI participates in the international community's joint efforts for responsible mineral sourcing and joined RMI (Responsible Minerals Initiative) last year to provide diverse information. Based on this, all minerals used in Samsung SDI products are supplied from smelters certified by RMI.

Due to these efforts, Samsung SDI was the first and only domestic company to be selected for the Dow Jones Sustainability Index (DJSI) World Index in 2004, establishing itself as a pioneer in sustainable management in Korea. It received high evaluations across economic, social, and environmental sectors, including product environmental responsibility, supply chain social responsibility, ethical management, and employee safety and health, and was recognized for transparently disclosing its major activities through sustainability reports.

In November last year, Samsung SDI was included in the DJSI World Index again. Samsung SDI has been selected for the DJSI a total of 16 times, the highest record among domestic companies.

Since the outbreak of COVID-19, as market volatility has increased, investors are making so-called 'ESG investments' by considering both financial and non-financial factors through ESG to assess corporate risks and make investment decisions. Considering the tendencies of Millennials and Generation Z, who value social responsibility, ESG investment is expected to influence overall investment and transform corporate management rather than being temporary. Interest in ESG investment is growing as major asset managers such as BlackRock, the world's largest sovereign wealth fund Norway Government Pension Fund, and large pension funds like the California Public Employees' Retirement System in the U.S. adopt ESG as a core investment guideline.

A Samsung SDI official stated, "We plan to continuously review and promote ESG issues such as 'climate change response,' 'product safety,' and 'sustainable supply chain' going forward."