Samsung Biologics announced on the 3rd that it held the ‘2024 Supply Chain ESG Day’ on the 2nd to support ESG (Environmental, Social, and Governance) management for its suppliers. Now in its second year, the event was conducted online to allow participation from many domestic and international suppliers.
The event was attended by 130 executives and ESG personnel from 82 companies, including Merck, Cytiva, Thermo Fisher, and Sartorius. The number of companies participating this year was about three times higher than last year’s 26, partly due to the online format.
Samsung Biologics expanded the criteria for suppliers subject to ESG evaluation to encourage more companies to participate. Last year, ESG evaluations were limited to suppliers of goods, but this year, service-providing subcontractors were also included.
As the importance of ESG management grows globally, Samsung Biologics shared ESG management know-how with participating companies. It presented cases such as setting a carbon-neutral goal for 2050, conducting human rights impact assessments, and enhancing management transparency through transparent ESG information disclosure. The company also highlighted its achievements, such as becoming the first Korean company to win the ‘Terra Carta Seal’ and receiving the platinum medal, awarded to the top 1% of companies in the Ecovadis ESG assessment.
Samsung Biologics, the only CDMO (Contract Development and Manufacturing Organization) in the global sustainability transition initiative SMI led by King Charles III of the United Kingdom, chairs the supply chain carbon-neutral council. The company actively promotes raising awareness and participation in carbon-neutral activities in collaboration with global pharmaceutical companies like AstraZeneca, GSK, and Roche.
Samsung Biologics emphasized the necessity of active interest and participation from suppliers to implement sustainable management across the global value chain. To respond effectively to global regulations such as the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), European Sustainability Reporting Standards (ESRS), and International Financial Reporting Standards (IFRS), the company urged suppliers to participate in annual assessments across all ESG fields. It also encouraged the calculation of annual greenhouse gas emissions and product carbon footprints (PCF) to improve the accuracy of emission data from suppliers.
External expert lectures were held to advance the ESG management of suppliers. Experts from Ecosian, Samjong KPMG, and the Korea Productivity Center suggested ways to enhance ESG management for suppliers. The lectures introduced Life Cycle Assessment (LCA) calculation criteria and environmental data measurement standards for assessing greenhouse gases throughout the product life cycle. Methods of ESG disclosure and evaluation tailored to small- and medium-sized enterprises were also explained.
John Rim, CEO of Samsung Biologics, stated, “Samsung Biologics has been fulfilling its responsibilities in various areas for a sustainable tomorrow. We will continue to communicate with our suppliers and strengthen our position as a leading ESG company in the global bio-pharmaceutical industry.”