Samsung Biologics announced on the 30th that it has published the 2024 ESG Report, which contains last year's ESG (Environmental, Social, and Governance) management performance and sustainability management status.
This report, published for the fourth time this year, was prepared with efforts to reflect global ESG disclosure trends such as the Global Reporting Initiative (GRI) standards, European Sustainability Reporting Standards (ESRS), and International Financial Reporting Standards (IFRS) requirements. In particular, this year's report expanded the newly introduced dual materiality assessment from last year. The dual materiality assessment evaluates both the impact a company has on society and the environment and the financial impact of sustainability management on the company. Samsung Biologics explained that it enhanced the completeness and accuracy of the assessment by adding global new ESG disclosure indicators, customer requirements, global ESG evaluation indicators, and regulatory authority status to this year's report.
Samsung Biologics detailed the environmental achievements and goals, including the top-priority issue derived from the assessment, 'carbon neutrality (net zero),' in the report. First, it disclosed achievements and future goals for building a sustainable low-carbon eco-friendly workplace. In 2023, Samsung Biologics recorded a renewable energy (RE) 100 achievement rate of 24.8% compared to business-as-usual (BAU) operations. BAU is an estimate of total greenhouse gas emissions expected without artificial measures to reduce greenhouse gases. Additionally, Samsung Biologics plans to reduce greenhouse gas emissions by 32% at workplaces and 36% across the entire supply chain by 2030, and to achieve a 20% water recycling and reuse rate.
Samsung Biologics also revealed new strategies and tasks to respond to natural capital (TNFD) disclosures. TNFD is defined as living nature, water, soil, minerals, etc. Biodiversity destruction means nature cannot provide ecosystem services, leading to the collapse of nature, making it an important sustainability issue. Samsung Biologics established key tasks and strategies for natural-related areas based on TNFD, including water resources, waste, pollutants, and biodiversity.
Samsung Biologics is also conducting various activities to build a safe and sustainable society. It has established a roadmap including mid- to long-term safety and health management goals and execution tasks by 2030 to ensure that employees and partner company staff can work in a safe and healthy environment.
To manage a sustainable supply chain, Samsung Biologics has established and operates a partner management and operation system. To increase partners' understanding of ESG management, the number of partners participating in ESG evaluations expanded approximately 3.7 times from 46 companies in 2022 to 171 companies last year. An ESG improvement campaign is also underway, sharing evaluation results with partners to help them identify potential risks and derive and implement improvement tasks.
Samsung Biologics is strengthening ESG management for responsible business activities and focusing on enhancing board independence and transparency. It added sustainability management risk areas to existing financial, business, and operational risk areas to advance company-wide internal and external risk management capabilities. Among the seven board members, four are outside directors, constituting a majority, and an appointed lead outside director system was introduced to strengthen independence from management.
John Rim, CEO of Samsung Biologics, said, “Through this report, we were able to further strengthen our position as a leading ESG company in the biopharmaceutical industry. Based on steady and transparent ESG management, we will build a foundation to create a sustainable bio-industry ecosystem and realize a better life for humanity.”
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