Over the years, leading CDMO Samsung Biologics has undertaken a concentrated effort to define what ESG and sustainability mean not just for the company itself, but also for the industry as a whole. . In its first annual report, released midway in 2021, it outlined a number of core activities to transition to renewable energy and decarbonize its operations
ESG stands for environmental, social, and governance and describes a set of standards that a company chooses to meet for the quality of its product, its effect on the environment, and its effect on other people. Investors and companies alike have taken great strides to become socially and environmentally conscious in this day and age. These standards require a business to perform as a steward of nature in an environmentally conscious way. Furthermore, social criteria look at the way the company handles relationships with employees, suppliers, customers, and communities where it operates. Employees should be comfortable, happy, and well-provided for by the company that employs them. They should also feel free to speak up if something is wrong. The community served by the company should feel safe and receive quality service from the company.
The last form of social consciousness that plays a role in ESG is governance, or how a company deals with leaders, investors, audits, shareholders, controls, and other aspects of the executive function of a company.
Profit and growth make a company successful, but the real challenge comes later when a company must prove to its consumers, partners, and the world that it is valuable to every aspect of human life. C-suite executives and board members are asked to show the social value of their company to those who play an active role in keeping it alive. In a world where social consciousness is important to the progress of humanity, ESG is indispensable. Samsung Biologics has introduced plans to expand its environmental investments in response to climate change, focus on reducing energy consumption, and participate in the Carbon Disclosure Project.
“We published this first sustainability report to achieve aforementioned goals. Thus,
we plan to share our wills for a new challenge toward sustainability, and we will strive
to create a better management environment with the stakeholders. We ask for your
continued interest in our efforts to perform sustainability,” said CEO John Rim in the introduction of the first-ever annual sustainability report released by Samsung Biologics.
The report highlighted several steps taken by the company in the year 2020, including:
- Its continuous efforts to create a safe environment for its employees. These efforts include an ‘ISO 22301’ certification for all of its facilities and plants. This certification ensures that the buildings meet the standards for fire safety and fire codes.
- Its certification from the Ministry of Gender Equality and Family as a family-friendly company, as well as its emphasis on a high percentage of female workforce.
- Helping society throughout the COVID-19 pandemic by producing masks and offering them for free to local residents in Incheonin 2020, when medical masks were hard to find for everyone.
- Its focus on the environment, particularly the establishment of an eco-friendly management system and the implementation of eco-friendly activities. Furthermore, the company sought to strengthen employees’ environmental and safety capabilities.
“Samsung Biologics has pursued its mission to create a better world with high-quality biopharmaceuticals by creating a global logistics supply chain and expanded social responsibilities as a global company, while building a basis for sustainability,” said CEO John Rim in the report.
Frontier 1.5D Project
In 2021, Samsung Biologics continued to strive for more commitment to ESG. This included their participation in the Frontier 1.5D Project. Frontier 1.5D was an initiative started by the Korean Financial Supervisory Service, the government’s top financial regulator. Other businesses and schools joined the initiative, including KB Financial Group, SK Innovation, CJ CheilJedang, and the British Embassy to Korea.
Different representatives promised to follow through to ensure that the climate temperature does not rise by 1.5 degrees Celsius above pre-industrial level. Samsung Biologics agreed to closely monitor, identify, and provide data for each of its biopharmaceutical manufacturing plants through its Carbon Disclosure Project (CDP) initiative with Science-Based Targets (SBT). These actions will help both the company and the initiative determine risks and opportunities to improve based on climate change standards, as well as the financial impact implementing new strategies would have on business.
John Rim, CEO of Samsung Biologics, said, “Alongside our core mission to bring a healthier and sustainable future for humanity, Samsung Biologics will support the development of mid to long-term climate change strategies and action plans as part of our decarbonization efforts to achieve a net-zero future.”