Sustainability Report 2019 en PDF
Sustainability Report 2019 en PDF
Sustainability Report 2019 en PDF
Reporting Period
This report illustrates our economic, social and environmental activities and achievements
between January 1st and December 31st 2018. For some of the qualitative achievements, data
to May 2019 is included. For the quantitative achievements, this report provides numerical
data for the past three years, to allow for trend analysis over time.
Reporting Scope
This report covers all of our Korean and global supply chains and worksites. Financial perfor-
mance data is based upon consolidated K-IFRS accounts. Quantitative environmental perfor-
mance of worksites is based upon data collected from 37 Korean and global production sub-
sidiaries.
Reporting Standards
This report has been prepared in accordance with the GRI Standards : Core option.
CEO Message
Samsung Electronics Co., Ltd. | Vice Chairman and CEO Kim, Ki Nam
I would like to begin by expressing my sincere appreciation in our business strategy. With safety as a top priority, we have
to our shareholders, customers, suppliers, communities, and engaged in numerous improvement activities such as “EHS
employees around the globe for your continuous support of Innovation Day”, an event held to spread a culture of safety,
Samsung Electronics. and EHS consulting for our suppliers. Through our efforts, we
will establish a “safety first” culture in which even minor safety
This year marks our 50th anniversary. Founded as a small man-
issues are not overlooked, aiming to create an accident-free
ufacturer of black-and-white TVs, Samsung Electronics has
working environment.
grown to become a major global IT company in 50 years. We
delivered record-high earnings last year despite an unfavorable Finally, aligning with our pursuit of co-prosperity with our
business environment, and have been ceaselessly working to communities, we have continued providing Win-Win funds
lay the foundation to take us through the next 50 years. for our suppliers, support for non-profit organizations, and
smart-factory projects for small and medium-sized enterprises.
We designed our Sustainability Report 2019 to both look back
In addition, we have launched a new corporate citizenship
on our activities over the past 50 years as well as offer a guide
initiative with a vision to focus on the education of future
on our direction for the next 50 years.
generations, carrying out myriad social contribution programs
In the coming years, we are well aware that we will not be eval- around the globe. We have made the pursuit of co-prosperity
uated solely based on our business performance. As such, and one of our core values, and will thus keep working with
in addition to our efforts to pursue profits and increase share- local communities, our country, and humanity to benefit all
holder value, which are fundamental purposes of businesses, stakeholders.
we will endeavor to fulfill our social responsibilities as a global
At Samsung Electronics, we follow a simple business philosophy
company.
—We will devote our human resources and technology to create
Our environmental activities have included countermeasures superior products and services, thereby contributing to a better
against climate change—including reducing our greenhouse global society. Leveraging our technology and business knowl-
gas emissions and expanding the use of renewable energy— edge, we will proactively address social and environmental
and active participation in the recycling of resources to issues and strive to become a company that can flourish along-
minimize the environmental footprint of our operation. The side our communities for more than 100 years.
impetus for the company’s environmental activities is shifting
We look forward to your continued interest and support in our
from selective spending to essential investments that create
100-year journey to create a prosperous, sustainable society.
value, and we will continue to engage in environmental
activities, believing economic development and environmental
sustainability can coexist.
Thank you.
Furthermore, we aim to take safety at our worksites and
suppliers to the world’s highest levels by internalizing a com-
mitment to environment, health, and safety (EHS) management
Samsung Electronics Sustainability Report 2019 003
Management Philosophy
At Samsung Electronics, we will devote our human resources and technology to create superior products and services, thereby contrib-
uting to a better global society. This commitment is guided by our set of values that consist of “Management Philosophy, Core Values,
and Business Principles”. To this end, we translated our five management principles into detailed action plan guidelines to establish the
Samsung Electronics Global Code of Conduct that all of our employees are guided by. To drive our sustainable growth and define our
way forward, we are guided by the following core values, which are instrumental to the way our employees conduct business.
Philosophy We will devote our human resources and technology to create superior products and services,
thereby contributing to a better global society.
We value our people We give our best We rapidly take We act in a right and We take full respon-
with a strong belief efforts with endless the initiative in ethical way in all sibilities as a good
in “A company is its passion and a executing change manners, ensuring corporate citizen in
people” philosophy challenge spirit to and innovation with fairness with honor pursuit of mutual
and providing oppor- become world best risk awareness : we and grace. prosperity with our
tunities to perform in every ways. cannot survive if we community, nation
their full potential. do not constantly and human society.
strive to innovate.
Samsung Electronics
in the World
Employees
309,630
Suppliers (First tier)
2,389
Countries
74
R&D Expenditure
19KRW trillion
Total
North America Latin America
Regional Offices 15
Regional Offices 2 Regional Offices 1
Sales Offices 52 Sales Offices 2 Sales Offices 7
Production Sites 37 Production Sites 3 Production Sites 3
R&D Centers 37 R&D Centers 5 R&D Centers 1
Design Centers 7 Design Centers 1 Design Centers 1
Others 9 Others 10
Others 68
* Regional classification is based on Samsung Electronics’ internal
management criteria
* Others : Sales Branches, Service Centers, Distribution Bases, etc.
Samsung Electronics Sustainability Report 2019 005
CIS
Regional Offices 1
Sales Offices 3
Production Sites 1
R&D Centers 2
Others 3
50 YEARS
50 Sustainability
Facts
Samsung Electronics has grown to a global IT brand
through the spirit of challenge and culture of innovation.
We have focused on sustainability throughout
our journey and wanted to highlight 50 key
sustainability achievements for our stakeholders.
Samsung Electronics Sustainability Report 2019
1
Product Stewardship
We are working to improve the energy efficiency of our products
and focus on the environmental impact of our products. In addi-
tion, we are committed to the circular economy, including by recy-
cling and reusing resources.
2
Commitment to the Environment in Our Operation
We will continue our efforts to expand the use of renewable
energy and reduce emissions to minimize the environmental
impact of our operation.
3
Enabling People
Through innovation and technology, we are providing greater
access to opportunities and improving the accessibility of the
underprivileged. In addition, we are helping local communities
through STEM education.
4 1 7
Technology for Good
2 50 6
We encourage employees to contribute to their communities by
Sustainability
solving social problems through creative solutions. Moreover, when Facts
we develop innovative products and services, we strive to protect
consumer’s personal information and privacy. 3 5
4
5
Investing in Our Employees
We support global efforts to prevent child labor and forced labor and
adhere to strict policies to advance these global efforts. We also pro-
vide an inclusive, safe and cooperative organizational culture for our
employees.
6
Sustainable Supply Chain
We pursue sustainable growth with our supply chain by effective
management and through tools that enhance the competitive-
ness of our suppliers.
7
Sustainability Foundation
We continue to strengthen our systematic sustainability manage-
ment and work with local communities as well as stakeholders
throughout the world to help do our part in advancing society.
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix
2 1 6
Product
Stewardship
3 5
4
1- Product Stewardship
01 02
Established e-waste Introduced an Eco-Design
take-back and recycling 2009-2018 process in 2004
centers in Korea in 1998 Collected e-waste
(cumulative) We have built sustainability into our product design pro-
We have taken various actions cess. Through eco-design process, we assess our products’
to collect e-waste across our energy efficiency, resource efficiency and environmental
global operation since we hazardousness.
established e-waste take-back
and recycling centers in Korea
in 1998.
3.55 Million tons 01. Target
Established an environmental
analysis lab in 2005 03. Verification
04
45 TWh saving
DDR4
=
Planting
800 Million Trees
Samsung Electronics Sustainability Report 2019
05
06
07
2 2
Commitment to
6
the Environment
in Our Operation
3 5
4
08 09
59%
A pond with purified water
2008 CO2e 2013
from wastewater treatment
facilities
11
Established our policies for biodiversity conservation
in 2010; and conducted endangered species
protection activities
We have enacted ecosystem protection activities and campaigns
to protect endangered species at each worksite in Korea since the
establishment of our policy for biodiversity conservation in 2010.
12
Number of worksites: 34
13 14
Providing bioethanol cook Approval for UN CDM Installation of solar panels at the
stoves in Kenya in 2017 Project based on high- rooftops of parking areas in Suwon
energy efficiency
refrigerators in 2013
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix
2 3 6
Enabling
People
3 5
4
3- Enabling People
15 19
Footnote:
1) Refer to page 105
16
Sponsorship for technicians since 2007 20
We have sponsored national tech contents and World Skill Olympics Developed a mobile, eye-diagnostic
for technicians. We have supported 43 national representatives and 26 device in 2018
medalists among our employees for World Skill Olympics. In addition, we
We developed a mobile, eye-diagnostic device
sponsor national representatives from Russia and Vietnam. Since 2007,
via Samsung Tomorrow Solutions - a program
around 490 Korean technicians have been hired at Samsung Electronics.
which helps address social issues through cre-
ative ideas. We have provided the devices to 40
community health centers in Vietnam, benefiting
about 28,000 patients.
17
2018 Launched Samsung Smart School in 2012
We have run Samsung Smart School programs
48 countries
as part of our corporate citizenship projects since
1,200 schools 2012. As of 2018, more than 2.7 million students
2.7M students from around 1,200 schools in 48 countries have
benefited from the programs.
18
2 4 6
Technology
for good
3 5
4
22
23
24 26
25
2 5 6
Investing in
Our Employees
3 5
4
27 28
30
29
Established a career consulting
center in 2001
Our career consulting center helps employ-
ees prepare for their future after retirement,
while also offering our retirees opportu-
nities to start anew. As of the end of 2018,
we have helped 6,187 people (out of 7,100
applicants) find new jobs.
Samsung Electronics Sustainability Report 2019
31 32
Established the Samsung Health Introduced the Samsung Culture Index (SCI)
Research Institute in 2010 We conduct a global survey of our employees annually to promote a bet-
We operate the Samsung Health Research ter understanding of diverse cultures and build a creative organizational
Institute to carry out research on the work culture. The survey assesses job satisfaction, creativity, and team trust. In
environment and new manufacturing pro- 2018, around 280,000 employees participated in the survey, and the SCI hit
cesses and materials to ensure the health of a record high.
our employees.
Employee satisfaction increasing
87
every year since the survey’s 82
74
implementation 71
66 68
65
96.4
95.0
92.3 92.0 93.1
88.4
Global SCI 82.7
satisfaction level
(score)
Global SCI
participation rate
(%) 2012 2013 2014 2015 2016 2017 2018
33 34
2 6 6
Sustainable
Supply Chain
3 5
4
36 39
0.8 KRW
Trillion
38 40
600
aging our suppliers’ work environments via
suggestions/year on-site inspections and third-party audits.
Samsung Electronics Sustainability Report 2019
41 42
80,677people
completed
Supplier
training program
43 44
2 7 6
Sustainability
Foundation
3 5
4
7- Sustainability Foundation
45 46
Released “Declaration of Customer Rights” Enacted Samsung Electronics Global Code of Conduct in 2005
in 1994 We have enacted Samsung Electronics Global Code of Conduct for all our
The “Declaration of Customer Rights” served as a employees to observe, as global corporate citizens. This “Global Code of
turning point in the protection of consumer rights. Conduct” is the guiding standard for everyone in Samsung Electronics,
Our consumer policies have focused on guarantee- outlining standards of conduct in all business activities.
ing product quality, service, and safety.
47
Established Corporate Compliance Team
in 2010
Since the establishment of the Compliance team,
the Company enhanced employees’ understand-
ing of compliance by offering regular compliance
training sessions. In addition, we are manag-
ing our compliance system effectively by offer-
ing preventive measures, close monitoring, and
post-management.
Declaration
of Customer Quality Service Safety
Rights
48
Set up the CSR (Corporate Social
Responsibility) Committee under the
Board of Directors (BOD) in 2013
We created the CSR Committee under the BOD 49 50
to fulfill our social responsibilities. In 2017, we Established principles for Separated the roles
expanded the role of the CSR Committee to include disclosure on financial of CEO and Chairman of
shareholder value enhancement, thus creating the donations in 2017 the BOD in 2018
Governance Committee.
To enhance transparency regard- We separated the roles of CEO
ing financial donations, the Com- and Chairman of the BOD to bol-
pany decided to get BoD reso- ster management transparency
Governance
CSR lution for all financial donations and the independence of the
Committee
Committee
& contributions KRW 1 billion or BOD.
2013 Enhance 2017
shareholder’s
higher. Related information is also
value disclosed.
Samsung Electronics Sustainability Report 2019
Sus
hip tain
rds abi
wa lity
t Ste Fou
duc ndat
Pro ion
1 7
Susta
the En itment to
in Ou vironment
ration
ina
ble Su
r Ope 2 50 6
Comm
pply C
SUSTAINABILITY
FACTS
in ha
s
ee
3 5
oy
En
pl
Em
ab
lin
ur
gP
nO
eo
gi
pl
tin
e
s
ve
In
Technology for Good
94% 243.1
Environmentally million tons
conscious
Products
2009 2018
220,000 tons
Footnote:
1) Based on development projects
2), 3) Accumulated from 2009
We strive to enhance product stewardship to minimize our environmental impact throughout the product life cycle from raw
materials sourcing, product design, manufacturing to use and disposal. In the product development phase, we make efforts to reduce
environmentally hazardous factors as well as to improve product energy efficiency and durability. We are fulfilling our environmental
responsibilities by seeking to minimize water consumption, and to reuse waste materials in the manufacturing processes. In the
product disposal phase, we operate e-waste take-back programs.
[Goal 12] Ensure sustainable [Goal 13] Take urgent action to [Goal 15] Protect, restore and
consumption and production combat climate change and its promote sustainable use
patterns impacts of terrestrial ecosystems,
sustainably manage forests,
combat desertification,
and halt and reverse land
degradation and halt
biodiversity loss
12.2 By 2030, achieve the sus- 13.3 Improve education, aware- 15.2 By 2020, promote the
tainable management and effi- ness-raising and human and implementation of sustainable
cient use of natural resources institutional capacity on climate management of all types of for-
change mitigation, adapta- ests, halt deforestation, restore
12.5 By 2030, substantially
tion, impact reduction and early degraded forests and substan-
reduce waste generation
warning tially increase afforestation and
through prevention, reduction,
reforestation globally
recycling and reuse
15.4 By 2030, ensure the conser-
vation of mountain ecosystems,
including their biodiversity, in
order to enhance their capacity
to provide benefits that are
essential for sustainable devel-
opment
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 024
Product Stewardship
Footnote:
1) PolyStyrene
2) PolyEthylene Terephthalate
3) Low Density PolyEthylene
Target by Year
Shift to paper or environmentally Use 100% paper packaging Shift to paper or environmentally
conscious packaging for mobile phone, materials sustainably sourced conscious packaging for products and
tablet and wearables1) paper accessories globally
Footnote:
1) For the other products, environmentally conscious packaging will be applied only to products launched in Korea
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 026
Product Stewardship
Green Management
Samsung Electronics officially announced the Environmen- We strive to minimize the negative impact on the environment
tal Declaration in 1992. In addition, we set Green Management by producing products with less resources and reducing green-
Value System in 2008 and additional goals in the form of our house gas emissions during use.
global Eco-Management 2020 plan in 2014 and are endeavor-
ing to create environmental value through numerous initiatives.
Reach 100 %
Samsung Electronics PlanetFirst Logo: sustainable sourced paper
The circular logo logo shape represents packaging by 2020¹⁾
planet earth, while the colors blue and
green symbolize permanent fertile soil
Footnotes:
and water, respectively.
1) Certified sustainable sourced paper and recycled paper (packaging,
manuals, etc.)
Samsung Electronics Sustainability Report 2019 027
Development Use
‧ Develope products that consume less energy and resources ‧ Use energy efficient products to reduce indirect GHG
‧ Design the product with repair, disassembly and recycling emissions
in mind ‧ Upgrade product performance and firmware as well as
‧ Source environmentally conscious raw materials that are provide product warranty
easy to recycle and have low toxicity Consumer
‧ Transact with suppliers certified as “Eco Partners”
Repair & Reuse
‧ Expand the use of recycled materials
‧ Expand service centers worldwide
‧ Design for product life expansion
‧ Extend product lifespan by providing remote diagnosis
and expert diagnosis services
Manufacturing
‧ Monitor and reduce energy consumption in the worksites Samsung
‧ Minimize water consumption and maximize water reuse Electronics
‧ Recycle worksite waste as resources
‧ Find alternatives for chemicals in the worksite
Eco-Design
From the product design stage, we apply our internal eco-de- process, securing the objectivity of the process. The eco-design
sign process, which incorporates environmental attributes of process begins with the environmental goal settings for each
products into product development. Since 2014, we have incor- development project, which is followed by evaluation/improve-
porated global eco-labeling requirements in the eco-design ment, and ends with final verification.
Eco-design Process
Eco-Design
01. Goal Setting 02. Evaluation and Improvement 03. Final Verification
Steps
als with low environmental impact and improve the energy effi- 2012 · Banned the use of chlorinated flame retardants in mobile
phones and MP3s
ciency of the products. · Released laptops, TVs, monitors, and home theater products
(some components) free of PVC
Footnote:
1) Global warming, acidification, eutrophication, ozone layer depletion, 2013 · Released laptops, TVs, monitors, and home theater products
formation of photochemical oxidants, human toxicity, freshwater (some components) free of phthalates or antimonides
toxicity, seawater toxicity, soil toxicity, primary energy consumption, 2015 · Banned the use of HBCD⁴⁾ and nonylphenol
water use, and waste generation
2016 · Banned the use of 4 types of phthalates for new component
(DEHP⁵⁾, BBP⁶⁾, DBP⁷⁾, DIBP⁸⁾)
Result of LCA (Global Warming Impact) of 2018 · Banned the use of 4 types of phthalates (DEHP, BBP, DBP, DIBP)
for all parts
Large-sized Flat Panel QM55N
· Plan to ban additional 8 types of phthalates (DINP⁹⁾, DIDP¹⁰⁾,
DnOP¹¹⁾, DnHP¹²⁾, DMEP¹³⁾, DIPP¹⁴⁾, nPIPP¹⁵⁾, DnPP¹⁶⁾) for all
product components by July 2019
‧ High-efficientcharger
(Charging efficiency
‧ EU Energy Label A+ ‧ Standby power below 0.005W
86% / Standby power 0.02W)
‧ Energy Saving mode ‧ Eco Saving mode
‧ Ultra Power Saving mode
‧ Screwless design ‧ 30% of recycled plastic use
‧ 20% of recycled plastic use
(productivity↑, recycle availability↑) ‧ Certification of ENERGY STAR in all
‧ Application of bio-based material
‧ Accessary bag made of 20% of sugar cane capitals and EPEAT
(use packaging materials from by-product
of sugarcane and bamboo)
‧ Eco-friendly R600a refrigerant ‧ Innovative QuickDrive™ technology; ‧ Cool from every angle
unique fabric care drum equipped with a ‧ Innovative circular design
‧ ENERGY STAR Certified
pulsator
‧ FlexZone™ Drawer ‧ Maximize energy saving
‧ Washing time can be reduced by up to (If absence, automatic OFF mode)
‧ Twin Cooling Plus™ 50%, without compromising the cleaning
performance ‧ PM1.0 air purifying
‧ Food Showcase Door with Metal Cooling
plate minimizing the loss of air ‧ Highest Energy-efficiency class in Europe ‧ Auto elevation grill
with A+++(-40%)
‧ Slim & ultra-light metal (13.9mm, 799g) ‧ World’s fastest DDR4 DRAM·the most ‧ World’s first fastest response speed SSD
‧ Eco-conscious packaging material energy-efficient enterprise server Module for super computers with extremely high
(pulp mold package) speed and minimum delay
‧ 30% improvement of system power
‧ Won government innovation awards consumption efficiency (alternate ‧ 5 times increase of system response speed
“KOREA STAR AWARDS 2018” for future high-density 4 modules of 64GB) (for AI, big data applications)
packaging ‧ World’s first 3.2Gb/s 256GB DRAM ‧ Industry’s largest system capacity with sole
development (1.2 times faster than 64GB) supplying of Dual-port 3.84TB NVMe Z-SSD
(more practical with high capacity storage
‧ System load storage 6TB solution
than single-port 800GB Z-SSD
(256GB * 24, cost effective equipment)
‧ Combines 500 of the industry’s fastest
‧ Combines 144 of world's first 10nm-class
48-layer 64Gb SLC Z-NAND
16Gb DDR4 DRAM
Samsung Electronics Sustainability Report 2019 031
Circular Economy
Our Circular Economy Principles Mid to long-term Goals for Circular Economy
Closed-loop System
We strive toward a closed-loop system as part of our circular
Reducing the use of virgin natural resources and
economy. Through various activities seen below, we have tried
raw materials by maximizing re-use of scrap mate-
rials from manufacturing stage to minimize our environmental impacts across the product life-
cycle and manage resources efficiently.
Recycling key metal · To identify and recycle the metals crucial
resources in terms of supply chain stability, societal/
environmental impacts
Under the principles, we engage in a variety of resource Operating recycling · To operate recycling centers and collect
re-circulation activities, and strive to achieve the mid to long- centers copper, aluminum, and plastic from used
term goals that we have set for the circular economy. home appliances
CHINA
- Take-back and
recycling system
EUROPE CANADA
VIETNAM
- Take-back and recycling system - Take-back programs in
- Voluntary take-back
in 37 countries all 10 provinces
bins at service centers
INDIA TAIWAN US
- Take-back program - Participating in national - Take-back programs in
- Free pick-up service recycling system all 50 states
KOREA
- Take-back network
(through retail logistics centers)
- Operating Asan Recycling Center COLOMBIA
- Free pick-up service AUSTRALIA PERU
REPUBLIC OF - Take-back and recycling COSTA RICA
SOUTH AFRICA JAPAN for TVs, PCs and printers BRAZIL
- Voluntary take-back - Participating in take-back and - Voluntary take-back - Voluntary take-back
bins at service centers recycling consortiums program for mobile phones programs
Copper 1,840 tons Our efforts for environmental leadership were recognized with
Plastics 7,501 tons the ʻSilver Craneʼ (Ecology) award by the Kommersant, a Rus-
sian journal.
Total 25,207 tons
1,356GWh 3.6
tCO₂e/KRW 100 million
5,011GWh 100%
Water Use Recycling of Waste
64 96%
ton/KRW 100 million
We have long engaged in various activities to reduce the environmental impact of our operation, including reductions in GHG and air
pollutant emissions as well as the expansion of our renewable energy use. Furthermore, we have also been committed to undertaking
social contribution projects related to climate change, managing the environmental impact of our suppliers, and cooperating with
local communities to protect ecosystem near our operation. We have set the targets for key performance indicators (KPIs) in four
areas—EHS (Environment, Health, and Safety) management system, GHG emissions, water resource, and waste management. We will
make the best efforts to achieve the targets by 2020.
[Goal 6] Ensure availability [Goal 7] Ensure access [Goal 13] Take urgent action
and sustainable to affordable, reliable, to combat climate change
management of water and sustainable and modern and its impacts
sanitation for all energy for all
6.3 By 2030, improve water 7.2 By 2030, increase substan- 13.1 Strengthen resilience
quality by reducing pollution, tially the share of renewable and adaptive capacity to
eliminating dumping and energy in the global energy mix climate-related hazards
minimizing release of hazard- and natural disasters in all
ous chemicals and materi- 7.3 By 2030, double the countries
als, halving the proportion global rate of improvement in
of untreated wastewater and energy efficiency
substantially increasing recy-
cling and safe reuse globally 7.a By 2030, enhance inter-
national cooperation to
facilitate access to clean
energy research and tech-
nology, including renewable
energy, energy efficiency and
advanced and cleaner fos-
sil-fuel technology, and pro-
mote investment in energy
infrastructure and clean
energy technology
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 036
Commitment to the Environment in Our Operation
02 Install solar panels and geothermal units at parking areas and on the rooftops
of domestic worksites in Suwon, Hwaseong, and Pyeongtaek by 2020
03 Encourage our 100 major suppliers to establish their own renewable energy
targets, in line with our participation in the Carbon Disclosure Project (CDP)
supply chain in 2019
Europe
China US
Korea
Mexico
India
Brazil
Samsung Electronics Sustainability Report 2019 037
Our major energy saving initiatives We plan to continue to pursue the pre-
include: 1) the optimization of air-condi- vious year’s major initiatives by includ-
tioning, refrigeration, air-compressing ing them in the list of the 100 tasks for
and pumping rates 2) blockage of leak- energy saving in 2019, and we will high-
age in clean rooms as well as reduction light the best initiatives at our annual
in outdoor air volume for pressurization Environment & Safety Innovation Day.
3) installation of an automatic cleaning
Power 18.3
Compressed air 3.8
Refrigeration 3.2
Water 2.2
Gas 1.1
Steam 1.0
Nitrogen 0.1
Others 4.6
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 038
Commitment to the Environment in Our Operation
Samsung Electronics' investment in environmental impact agement systems, GHG emissions, water resource, and waste
reduction has been a long-standing commitment. Our Global management. In addition to these goals, we have added a 2020
Environment, Health and Safety (EHS) Center and Global Cus- renewable energy pledge and thoroughly monitored them.
tomer Service (CS) Center, under the direct leadership of the
CEO, actively manage EHS issues and the environmental Our global manufacturing sites are certified by management
impacts of products, respectively. Moreover, we operate our systems based on global EHS standards. In order to retain these
Global Environment, Health and Safety (G-EHS) system to man- management systems certifications, we conduct an after-the-
age the EHS status and performances of all worksites. fact self-evaluation and a third-party renewal evaluation every
three years. As a result of conducting internal EHS audits, we
According to our mid- to long-term roadmap of green manage- identified 862 improvement tasks and achieved 97% of them in
ment, we have established four EHS key performance indicators 2018.
that we expect to achieve by 2020 in the four areas: EHS man-
Environment & Safety Discuss company-wide environmental strategy CFO 3 times a year
Committee and discuss worksite-related pending issues
Eco Council Set development goals and implementation strategies Head of the Global 2 times a year
for highly energy-efficient and environmentally conscious products CS Center
IM & CE Division Synergy Discuss workplace EHS issues, best practices, and Head of the Global 2 times a year
Committee healthcare EHS Center
DS Division EHS Committee Discuss key EHS issues CEO 6 times a year
EHS Manager Council Discuss a safety culture, regulatory compliance, Head of the Global 6 times a year
and chemicals management EHS Center
GHG Management Council Select implementation tasks to respond to climate Head of the Global 2 times a year
change and manage their progress EHS Center
Construction Safety Council Establish a strategy for site construction safety management Head of the Global 10 times a year
and discuss major issues EHS Center
Construction Safety Innovation Perform strategic tasks (design, construction method, and IoT Head of the Global 12 times a year
Research Committee technology) for accident prevention at construction sites EHS Center
Samsung Electronics Sustainability Report 2019 039
In order to effectively tackle climate change, we identify and Global EHS System on a monthly basis. In 2018, our GHG emis-
analyze major issues and risks, and then establish and imple- sions were 10.1% less than expected. For indirect GHG emissions
ment relevant strategies. The results are periodically reviewed (in Scope 3), we cooperate with suppliers, R&D institutes, and
by the relevant committees and councils. We manage GHG relevant departments to meet our reduction targets.
emissions at our all workplace (Scope 1 and 2) through the
Regulatory
Green power Sign PPAs, pursue a Green Pricing Expand renewable energy use
availability Scheme, and purchase RECs and reduce GHG emissions
Others
Survey consumers and expand the Respond preemptively to
Changing consumer
development of environmentally consumer needs for environmentally
behavior
conscious products conscious products
Footnote:
1) Clean Development Mechanism
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 040
Commitment to the Environment in Our Operation
gets, since we joined the CDP Supply Chain in April 2019. Addi-
tionally, we have been exploring ways to reduce indirect GHG Increase Reduce F-gas used
manufacturing for manufacturing
emissions from the use of our products, employee business
process 64.7%
trips, logistics, and suppliers. efficiency 1.4%
Expansion · Develop energy management systems across all Introduce Switch to LED lighting 0.1%
of energy worksites and maintain the relevant certification
energy efficient
management at (from 2013 onwards)
technologies in Increase facility efficiency 1.7%
worksites · Manage worksite specific energy costs and indicators
facilities
0.8% Others 4.2%
Reduction in
GHG emissions · Develop and launch products with high energy
in the product efficiency Increase Reduce F-gas used
use phase manufacturing for manufacturing
process 42.1%
Management
· Manage GHG emissions from logistics, business efficiency 0.1%
of Scope 3
trips and others (from 2009 onwards)
emissions
· Monitor suppliers' GHG emissions (from 2012 Expand renewable energy use
Supplier
onwards) 51%
support
· Join CDP Supply Chain
Footnote:
1) Fluorinated Gas
31,066
30,000 26,028
Household Energy Efficiency Improvement Project
25,000 23,419
Since 2016, we have promoted a “Household Energy Efficiency
21,073
Improvement Project”, providing an energy-efficient home
20,000
design with energy diagnosis and reconstruction through
15,000
improvements in insulation, boilers, windows, and home struc-
ture. In 2018, we supported 58 households in 13 cities in Gyeo-
10,000 nggi Province through the project. With this project, we aim to
save 29 tons of GHG emissions, per annum.
5,000
Water management at our worksites is an integral part of pro- Water Withdrawal by Region Unit: thousand tons
tecting the environment. Through our Water Resource 3R activ-
ities, which include reduce, reuse and recycle, as well as mon- Subsidiaries Withdrawal Discharge Notes
itoring of water discharge, we strive to achieve our target of Amount
reaching 50 tons/KRW 100 million intensity-based water con- Total 37 134,230 107,699 -
sumption. Specifically, each worksite has adopted water con-
Subsidiaries 12 92,003 76,354 Korea (7)
sumption as a core KPI and set an annual goal for effective water in water- India (2)
management. stressed Poland (1)
region¹⁾ Egypt (1)
South Africa (1)
Footnote:
Water Risk Management 1) It is calculated based on the water resource management methodology
suggested by FAO, WBCSD, and WRI.
We monitor water resource risks at our global manufacturing
sites, based on the water resource management methodology
suggested by the Food and Agricultural Organization (FAO), the
World Business Council for Sustainable Development (WBCSD),
and the World Resource Institute (WRI). In addition, we have
devised a strategy according to the CDP Water Guidelines. Out
of the regions where we operate, our risk analysis identifies 5
countries (in which 12 of our subsidiaries are based) as water-
stressed.
We recognize the importance of water resources in maintaining a sustainable society and conducting business, and
Our Belief
fulfill our social responsibility to protect these valuable resources as a global company.
We work hard to minimize We recognize the impor- We actively cooper- We disclose our water
water resource risk in tance of water resources ate with external water resource policies and
business management. as part of our resource policies. activities.
corporate culture.
We evaluate the impacts We establish the Based on domestic and We transparently disclose
of our business activities, preservation and overseas guidelines on corporate policies and
Action including production, on sustainability of water water resources, we actively activities regarding the
Guidelines water resources to resources as our corporate cooperate with local and use of water resources to
minimize risks and to culture to help our central governments of the stakeholders, including
continuously pursue employees recognize their regions where we operate, local communities.
the introduction of new responsibility for water as well as international
technology. resource management, organizations, in
and consider the impacts establishing and executing
of our operation, on local policies on water resources.
communities and the
environment with the
highest priority.
Samsung Electronics Sustainability Report 2019 043
In order to increase our water reuse, we classify water into 4 cat- We safely discharge water through our internal and external
egories–sewage, wastewater, industrial water, and ultra-pure treatment facilities. When discharged through the in-house
water–and manage them separately at each site. We manage treatment facility, we ensure safe discharge by applying stricter
the reuse rate of each category through our internal “G-EHS sys- standards than legal requirements.
62,371 63,159
Underground water 959 Reuse
Waste Management
Reducing Disposable Products
In order to minimize waste generated from production, we have (Office, Restaurant, Stores at the worksites)
developed a product design and manufacturing process that
We encourage the use of personal cups at work to reduce the use
considers resource efficiency. In addition, we have a waste con-
of disposable products. Also, we have enhanced the separate col-
trol system in place in the manufacturing process to minimize lection of waste at our worksites in Korea.
waste generation. In our employee restaurants and canteens, plastic containers
We classify waste according to the standards in each nation. We are being replaced with paper to improve resource efficiency. In
generally separate waste into general and designated waste, stores at the worksites, paper cups and straws are used instead
of plastics. These stores also provide drinks in mugs and offer
and dispose of or recycle it in accordance with prescribed laws
discounts when customers use their own tumblers. Through
and best practices. When we are unable to dispose of the gen-
the implementation of such a campaign in 2018, we reduced
erated waste in-house, we select qualified third party contrac- office-generated disposable product usage by 80 ton in 3 months.
tors to measure its weight and treat it. We monitor the amount Since 2018, we have helped our community by reusing waste milk
of waste generated and recycled at each worksite every month packs generated from our worksites. Waste milk packs are recy-
to achieve a waste recycling rate of 95%. For those worksites cled into toilet paper, which we donate to the disadvantaged in
failing to meet their targets, we develop separate management our local communities.
plans, in order to ensure that the waste is properly treated and
to improve the recycling rate.
· Operate Eco-design evaluation · Set targets in waste recycling ratio · Comply with conventions on the ·C
heck the waste processing
process · Reduce environmental risks border control of hazardous waste service providers' compliance
· Evaluate eco-friendliness during (develop and switch to low toxic · Monitor the movements routes of level through regular visits
the development phase (e.g. substances, neutralize toxic waste-carrying vehicles ·P
erform annual environmental
resource efficiency, environmental substances, etc.) assessments on processing
risks, energy efficiency) service providers (operational
competency, environmental
management, etc.)
Pollutant Management
Nitrogen Oxide (NOx) Reduction Activity
To reduce air pollutant emissions, we have introduced a Nitro-
We developed a new technology for reducing NOx, the main
gen Oxide (NOx) reduction system, a catalyst oxidation process,
cause of fine dust, and applied high-efficient facility with the aim
and a dust collector and cyclone system. We have also elimi-
of reducing environmental impact. With our boiler-reducing tech-
nated 93% of water pollutants at our worksites in Korea by opti- nology (Low NOx burner, DeNOx Facility), we were able to reduce
mizing wastewater treatment facilities. NOx emissions by approximately 90%, in terms of concentration
through the introduction of such technology. In addition, in semi-
In accordance with the Montreal Protocol, worksites in Korea
conductor manufacturing sites, we have reduced NOx emissions
use hydro chloro-fluorocarbon (HCFC)-based substances as
through the optimization of primary control equipment at the rear
refrigerants for freezers and chillers. These substances have a of the facility. By further applying the technology to rooftop preven-
relatively low ozone depletion potential. We plan to replace all tion, we expect to reduce 75% of NOx concentrations in the future.
refrigerant materials used at our worksites with those that mini- In addition to improvement activities to reduce NOx at work-
mize the impacts on the ozone layer. places, we are also making an effort to comprehensively study fine
dust problems and find technical solutions through our Fine Dust
Research Institute, which was established in January 2019.
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 046
Commitment to the Environment in Our Operation
Biodiversity
We have established a strategy and a course of action to pro- Wonchenri Stream, Hwaseong
tect biodiversity by informing our employees of the importance
· Measured by: Kyunghee University, Korea
of preserving biodiversity and reflecting it in our business plans.
· Fish: 658 individuals from 15 species were confirmed (carp
88%, mudskipper 7%)
· Ecosystem: Benthic invertebrates were confirmed (insects 69%
Conservation of Biodiversity / non-insects 31%) Dominant species: Diptera (31%)
· Ecotoxicity: No impact on the stream was observed as a result
Our Belief of measuring effluent
We recognize the importance of biodiversity. We aim to mini-
mize any negative impact on biodiversity, and fully undertake
ecosystem preservation initiatives. Osan Stream, Giheung
1. Value Recognition · Fish: 169 individuals from 12 species were confirmed (crucian
carp 31%, carp 16%)
All our employees recognize that the preservation of biodi-
versity is an important part of our green management. · Ecosystem: Benthic invertebrates were confirmed (insects 65%
/ non-insects 35%) Dominant species: Caddisfly (Cheumato-
2. Impact Assessment and Minimization psyche brevilineata Iwata, 12%)
We assess and analyze our influence on ecosystems and · Ecotoxicity: No impact on the stream was observed as a result
biodiversity along the life cycle of our products and strive to of measuring effluent
minimize any negative impacts.
3. Activities Seojeongri Stream, Pyeongtaek
We prioritise areas of high biodiversity value across all our
· Measured by: Pyeongtaek University
worksites. We undertake biodiversity preservation activities
· Fish: 238 individuals from 8 species (Dominant species: Crucian
that cater to local needs and challenges.
carp, subdominant species: carp)
4. Communication · Benthic invertebrates: 722 individuals from 22 species (domi-
We constantly communicate with employees, local commu- nant species: Red midge, subdominant species: Tubifex)
nities, NGOs, and other stakeholders to contribute to the
· Attached algae: Confirmed 16 genera of 40 taxa (Dominant
preservation of biodiversity in local communities. species, subdominant species: diatom)
EMPLOYEES COMMUNITY
2018 HIGHLIGHTS
[Goal 4] Ensure inclusive Goal 8] Promote sustained, [Goal 9] Build resilient [Goal 17] Strengthen the
and equitable quality inclusive and sustainable infrastructure, promote means of implementation
education and promote economic growth, full and inclusive and sustainable and revitalize the global
lifelong learning productive employment industrialization, and foster partnership for sustainable
opportunities for all and decent work for all innovation development
4.4 By 2030, substantially 8.5 By 2030, achieve full and 9.2 Promote inclusive and 17.7 Promote the
increase the number of youth productive employment and sustainable industrialization development, transfer,
and adults who have relevant decent work for all women and, by 2030, significantly dissemination and diffusion
skills, including technical and and men, including for young raise industry’s share of of environmentally sound
vocational skills, for employ- people and persons with employment and gross technologies to developing
ment, decent jobs and entre- disabilities, and equal pay for domestic product, in line countries on favourable
preneurship work of equal value with national circumstances, terms, including on
and double its share in least concessional and preferential
developed countries terms, as mutually agreed
4.B By 2020, substantially
expand globally the number 8.6 By 2020, substantially 9.C Significantly increase 17.8 Fully operationalize the
of scholarships available reduce the proportion of access to information and technology bank and science,
to developing countries, in youth not in employment, communications technology technology and innovation
particular least developed education or training and strive to provide capacity-building mechanism
countries, small island universal and affordable for least developed countries
developing States and African access to the Internet in least by 2017 and enhance the use
countries, for enrolment in higher developed countries by 2020 of enabling technology, in
education, including vocational particular information and
training and information and communications technology
communications technology,
technical, engineering and
scientific programmes, in
developed countries and other
developing countries
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 050
Enabling People
Vision Theme
To become a trusted and valued member In order to mark our 50th anniversary this
of global society, for many years, Sam- year, we have refined our corporate citi-
sung Electronics has committed itself to zenship vision and themes based on our
corporate social responsibility (CSR); and core values “People First” and “Co-pros-
has launched robust CSR initiatives. perity”, laying the foundation to carry out
corporate citizenship programs in a more
Throughout 2018, we have revisited our
systematic, and consistent manner.
citizenship direction and achievements.
We had in-depth discussions and inter- The new vision is “Enabling People”.
views with many stakeholders to obtain
This vision points to our commitment
advice and ideas necessary to refine our
to help people fulfill their true potential
future direction.
to develop a better future. In this new
vision, we will focus on “the Education of
Future Generations” as the main theme
of our corporate citizenship efforts.
Samsung Electronics Sustainability Report 2019 051
We are living in an age of ultra-connec- educational model based on our tech- We will continue to do our best to be a
tivity characterized by extraordinary nology and innovation expertise, help- responsible contributor to our society and
social and generational changes such as ing youth play major roles in our society to our communities, recognizing that
those emerging from the Fourth Indus- in the future. success is tied to sharing with those
trial Revolution. To respond to these around us.
Furthermore, we plan to strengthen our
changes, it is critical to educate and nur-
partnership with various stakeholders
ture youth with ample potential.
and closely communicate with society as
Leveraging our human resources devel- we carry out our citizenship activities.
opment experiences, we will strive to
We will continue to create a culture
develop the capabilities of young gener-
where all our employees, including top
ation. In addition, we will provide a new
management, contribute to society by
taking part in volunteering activities. We
will also expand employee volunteering
opportunities.
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 052
Enabling People
At Samsung Electronics, we believe in the promise of Science, Public school teachers and students participating in this con-
Technology Engineering and Math (STEM) to solve societal test collaborate as a team to propose an idea for local commu-
problems. Thus, we run programs called “Samsung Solve for nity improvement based on their STEM knowledge.
Tomorrow” in 14 countries around the world and a similar pro-
Samsung Electronics employees also participate in this pro-
gram in Korea called “Samsung Tomorrow Solutions.” These
gram as a skill-based mentors and project advisors. Mento-
programs allow participants to develop solutions for problems
ring and guidance from our employees is igniting a passion to
facing our communities by applying creative problem-solving
address societal issues among youth and developing a pioneer-
capabilities and knowledge on STEM. We plan to expand these
ing spirit in the participating youth.
solution contests to more countries, explore ways for collabo-
ration with our in-house venture program C-Lab(Creative Lab), Since 2010, Samsung Solve for Tomorrow has been provid-
and with external social ventures. ing thousands of students with opportunities to address social
issues while developing their leadership skills.
Samsung Solve for Tomorrow
Samsung Solve for Tomorrow aims to solve societal challenges
through creative ideas from youth using STEM.
Smart School Bus Stop Sign Samsung STEM Girls Program in China
Cars illegally passing stopped school buses often cause student To nurture the next generation of women scientists, Samsung
injuries and fatalities. After a classmate was almost hit by a car, China and China Women’s Development Foundation operate a pro-
students at Holly Grove Middle School in North Carolina, US were gram to support future talent, especially in the field of STEM. The
inspired to take action to solve this problem. They created “Smart program provides online learning, offline workshops and training
School Bus Stop Sign”. camps for girls aged from 12 to 16.
In this solution, the bus sensor is designed to alert drivers of an In 2018, a total 1,573 students from 155 schools participated in this
approaching bus before it even arrives. The students believed that program. 12 of these students who came up with multiple ideas to
this would prevent pedestrian accidents. improve living conditions in Inner Mongolia, were given the oppor-
tunity to visit the University of Cambridge in the U.K.
Accordingly, Holly Grove Middle School was named a 2019
national winner in the US. They also won an additional $10,000 for
their school. The team is now working with city officials to install
Smart School Bus Stop Signs at locations where frequent viola-
tions occur.
Students of Holly Grove Middle School Awards Certificates for Young Female Scientists
To help migrant workers understand conversational English, the The team found a way to make splints customized for each patient,
team proposed a mobile app that teaches users common work- replacing conventional splints that were costly and uncomfort-
place expressions through features such as games, vocabulary able. In order to do so, the team utilized a body scanner to tailor
cards and video lessons. splints to a patient’s body shape. They then applied 3D printing
technology to create splints with recyclable plastic materials that
Samsung Electronics selected the Alpha Lupi team as the winner
are light (250g), comfortable, and affordable.
of 2018 in the middle school category, and gave SGD 20,000 worth
of Samsung Electronics products to their school, as well as SGD As a result, the team won a prize in the 2018 Samsung Solve for
1,600 for the team. Tomorrow and received USD 12,000 worth of Samsung Electronics
products.
Samsung Tomorrow Solutions We select a contestant’s idea based on a set of criteria that exam-
Samsung Tomorrow Solutions is an annual contest held in Korea ines creativity, durability, empathy, feasibility, and social impact.
since 2013. This program is open to anyone to propose their There are two types of award categories: “idea” and “impact” cat-
own creative ideas to address social issues. Samsung Electron- egories. During the contest, the participants get a chance to
ics employees and expert mentors provide support for contest make their solutions more sophisticated. Moreover, employees
participants. As part of the program, outstanding solutions are and experts mentoring help the finalists to build prototypes of
implemented to address social issues. Participants can suggest their solutions. In addition, we help the contestants in commer-
ideas on any topic such as education, health & medical care, cializing and distributing their products by collaborating with
local communities, environment & safety. our in-house venture program C-Lab.
MAYDAY and Developer Young Shin Park Mobile Eye Disorder Diagnosis Device
Samsung Electronics Sustainability Report 2019 055
Technology Education
At Samsung Electronics, we cooperate with local governments “Samsung Software Academy for Youth (SSAFY)” in particular
and academic institutions to provide IT skills training for stu- is an academy established in Korea to strengthen the software
dents and youth and prepare them for their future. As of 2018, skills of youth who are looking for jobs. Moving forward, we will
we have executed a total of 150 programs around the world in continue offering technology education programs for youth to
places where we operate. Such endeavors have allowed Sam- assist them in developing skills needed for the Fourth Industrial
sung Electronics to transfer knowledge and enhance the skills Revolution.
of aspiring youth.
Youth Education
Due to the successful operation of the program and excellent “Happy Traveler” Application
reviews from teachers and students, our DS business signed
MOUs with local offices of education to expand the program.
In 2019, we plan to expand the program to double the number
of beneficiaries to 6,100 students from 50 schools with 1,900
employees participating as volunteer teachers. School teachers
and our DS employees have organized a task force for develop-
ing and teaching aid kits. The curriculum is composed of actual
exercises to help students understand how semiconductors
work in an interactive way. At some middle schools in Korea, the
program has now become a regular curriculum for students in
their first year of school.
Samsung Electronics Sustainability Report 2019 057
Samsung Dreamclass well as cultural activities, such as ballet and concerts. As of 2018,
As part of our goal to foster education for the future genera- Samsung Dreamclass successfully provided opportunities for
tions, we have been running Samsung Dreamclass program in 73,000 students with the support of more than 20,000 univer-
Korea since 2012. sity students.
Samsung Dreamclass is a program that offers Math and English In our seven years of operation, we have observed that this
tutoring for middle school students who come from disadvan- investment in our youth has led to the virtuous cycle of giving
taged backgrounds and have a high motivation for learning. The back. Students who once participated in our program are revis-
program also grants scholarships to university students who iting Samsung Dreamclass as university mentors. Our goal of
volunteer as a teacher. Samsung Dreamclass is to inspire students and provide greater
educational opportunities to youth from disadvanted back-
The Dreamclass started as a three-month pilot program in
grounds.
December 2011, by taking into account the opinions from com-
munity members, including students, parents, teachers and
governmental organizations. Samsung benchmarked two repu-
table education programs (Teach for America and Building Edu-
cated Leaders for Life) in the US before launching Dreamclass.
Back to Samsung Dreamclass as a mentor
The participating students have improved their English scores
by 7 points and math scores by 15 points on average. Dreamc- Noh Hye Ji participated in Samsung Dreamclass in 2012. As a
lass now has become one of Samsung's regular programs since third-year middle school student, she was in search of greater
educational opportunities and mentors who could provide her
2012. Currently, Samsung Dreamclass operates under three dif-
with guidance on post-secondary education.
ferent formats: (1) Weekday Classes, (2) Weekend Classes and
(3) Dreamclass Camp. Samsung Dreamclass offered her a chance to connect with uni-
versity student mentors and to attend various courses as well.
(1) Weekday Classes : Weekday classes offers eight hours of
When Hye Ji entered university, she was happy to return as an
math and English tutoring per week. We hold weekday classes mentor at the 2017 Winter Camp. She hopes that her own stu-
in 31 cities, including Seoul, Korea's six largest cities, and Jeju dents will one day revisit Dreamclass as mentors, just as she
Island. There are 174 middle schools participating in weekday has done.
classes.
105
65
27
● Basic Science
(180 projects) 266.2
● Material Technology
(160 projects) 218.5 666.7
● ICT (177 projects) 182
Footnotes:
1) As of December 2018
2) As of April 2019
We are committed not only to offering innovative products and services, but also to creating a social environment where entrepre-
neurship is encouraged and diverse start-ups can flourish. Furthermore, we are providing full support for the development of basic
sciences. Whilst innovative product development is important, safeguarding security and personal data is paramount, as they are crit-
ical to the human rights of consumers. We want our technology and innovation to be accessible. Thus, we provide various features in
our products that make it more accessible to all users.
At the end of 2012, we launched an in- innovative technology and design, the
house idea incubation program called FITT360 won the Innovation Award from
“C-Lab (Creative Lab)” to allow for the real- CES (Consumer Electronics Show) for the
Linkflow: ization of creative ideas by employees of two consecutive years in 2018 and 2019.
a Story of Samsung Electronics. Furthermore, in
Securing new opportunities in the mar-
2015, we started the C-Lab Spin-off pro-
C-Lab Spin-off gram to accelerate start-ups originating
ket, the company recently widened their
horizons to the B2B market and devel-
in C-Lab. The program has contributed to
oped “FITT 360 SECURITY”, a bodycam
revitalizing entrepreneurial ecosystem in
for officers and security guards, to tar-
Korea.
get security market. While existing body-
Linkflow, one of our representative start cams for police officers and security
-up cases, started as part of the C-Lab guards only allow limited views from the
project in July 2015, and it was founded front and rear directions, “FITT 360 SECU-
in November 2016 as a spin-off. The sig- RITY” provides a 360 degree view with-
nature product of Linkflow is the world’s out any blind spots. Linkflow is continu-
first 360-degree neckband wearable ously improving the device by listening
camera, “FITT 360”. With three mounted to users’ feedback.
mini-cameras, users can record with just
In 2018, Linkflow was recognized for its
one click while wearing FITT360 around
competitiveness in the global market, and
their neck. The neckband shape frees
it raised about 400 million KRW of crowd
users’ hands while makes the first per-
funding via Kickstarter and indiegogo.
son viewpoint recording possible, which
provides more realistic pictures. With its
Linkflow employees
Our Efforts
to Enhance
Accessibility
For example, we have launched the Since 2013, we have been cooperating
FlexWash washing machine to help low with international associations for peo-
vision consumers understand the pro- ple needs to increase the accessibility
cess of washing. One of our employ- features in our TVs.
ees with low vision voluntarily partici-
For instance, we develop a multi-out-
pated in the development process and
put audio feature to allow individual
installed the product in his house for
users to enjoy different volume setting
three months to try it for himself. As a
simultaneously. People who are deaf or
result, we improved accessibility fea-
hard of hearing expressed the inconve-
tures and developed new voice scenar-
nience of the sign language screen size.
ios to apply to the FlexWash.
Accordingly, we gathered their opinions
With respect to mobile products, our and developed a zoom-in feature for the
Samsung Electronics continues to “Samsung Supporters” is another acces- sign language screen allowing 200%
develop and research accessibility fea- sibility research initiative. Supporters enlargement of the screen. In recogni-
tures in our products and services with gather on a regular basis and share their tion of this effort, we received the CES
the goal of serving the needs of all users. needs when they use a smartphone Accessibility Innovation Award for four
In cooperation with Korea Blind Union, in their daily lives. These opinions are consecutive years and Inclusive Society
Korea Association of the Deaf and Korea reflected to enhance the accessibility of Award from the Royal National Institute
Association of Persons with Physical our Galaxy smartphones. of Blind People.
Disabilities, we have improved or newly For instance, people with low vision
developed the accessibility of home often encounter discomfort when using
appliances by operating an accessibility the Voice Assistant function. Users cited
advisory group consisting of seven users their discomfort when using the func-
who have low vision, are hard of hearing tion in public, even after they removed
or have physical motor limitations from the ear-phones, the voice guide would
2017 to 2018. still be activated and audible to people
around them.
Samsung Supporters Discussing
Considering such feedbacks, we improved Galaxy Functions
the function so that the sound can be
muted in situations where it should not
be audible.
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 062
Technology for Good
C-Lab Outside, a new part of the program created in 2018, was C-Lab Inside Selection Processe
developed to contribute to stimulate Korean economy and
Online Voting
create jobs. The C-Lab Outside was designed to share our exper- Idea Paper Presentation
& Offline C-Lab
tise externally and activate Korean start-up ecosystems. Proposal Review & Selection
Interview
65
100 Lululab
27 Lululab’s Lumini is an artificial intelligence-based beauty solu-
tion app that analyzes skin through a single photo shot and
0
recommends cosmetics accordingly. This AI beauty solution
2013 2014 2015 2016 2017 2018 was recognized for its usability of big data in CES (Consumer
Electronics Show) 2019 by winning the Innovation Award in
Biotechnology sector, while receiving two design awards from
Footnotes:
1) As of December 2018 the world’s top 3 renowned design awards such as iF Design
Award and Reddot Design Award.
Samsung Electronics Sustainability Report 2019 063
Relumino Ignis
Cooperation Infrastructure
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 064
Technology for Good
Digital Responsibility
Cybersecurity
Samsung Knox to safeguard election integrity
To protect consumers from cybersecurity threats, we not only
The election oversight agency of a Latin American coun-
comply with international laws and regulations, but also make try needed a mobile solution to help employees transmit
substantial investments to maintain the highest level of secu- vote counts from the country’s voting districts. The solution
rity for our products and services. included the Knox Manage mobile device management (MDM)
solution, which enables the institution to lock down devices
Samsung Knox and Knox Mobile Enrollment. The agency’s major concern was
Samsung Knox is our defense-grade security platform. Knox the security of sensitive data transmission. First, the agency
consists of a highly secure multi-layered platform built into helped raise security standards for carriers to help ensure
transparency and minimize election fraud. To protect against
Samsung Electronics devices across hardware and software,
data leakage and hacking, the agency knew it also needed to
and it ensures data protection from malware and malicious
retain maximum control over all devices distributed. Based
threats. In addition, public and private sectors, such as govern- on these requirements, Samsung solutions allowed IT admins
ments, financial institutions, and healthcare companies have to be able to restrict device usage, monitor and track devices
been leveraging our Knox platform as part of their security busi- remotely, and simplify life cycle management. With our solu-
ness solutions. tion, the agency received one-stop support when an issue was
raised in managing election data. In addition, they were able
Since 2013, we have been applying Knox to our devices such as to safeguard election integrity through the efficient and safe
mobile phones and tablets. In 2017, we found a solution to incor- management of data and devices.
porate Knox into Smart TVs and household appliances.
Knox IT solutions leverage the Knox platform, Build B2B apps on secure Samsung Knox to verify system security and safeguard
for end-to-end solutions, from configuration Electronics devices with Knox developer data of Samsung Electronics apps
and deployment, to management tools
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 066
Technology for Good
· Establish strategies and polices · Conduct audits and training on · Conduct audits and training · Make decisions on policies and
to protect privacy, develop rele- the privacy programs of busi- on privacy programs of the protection measures associated
vant processes ness divisions concerned regional offices and with privacy and personal data
· Provide legal advice and sup- · Report and follow up in a subsidiaries protection
port on privacy issues prompt manner when an issue · Report and follow up in a · Discuss measures and share
· Examine and take anticipa- arises prompt manner when an issue issues on privacy and personal
tory measures to monitor and arises data protection by products and
prevent the security issues of business div
products and services
· Provide employee training to
raise awareness
1 2 3 4
The Global Privacy Office and We monitor trends in domestic We run diverse privacy and We annually conduct data
other relevant departments and international privacy and personal data protection protection compliance audits
have established a privacy personal data protection at all programs to fulfill the on our products and services.
policy, personal data processing times and prepare response responsibility as a data controller We subsequently correct system
outsourcing guidelines, and a plans to comply with newly and processor. flaws in accordance with the
data breach response process. enacted or modified laws/ audit results.
regulations. Also, to increase
employee awareness of data
protection, we provide general
training for all employees and
specialized training relevant for
specific job characteristics.
Samsung Electronics Sustainability Report 2019 067
Privacy Legal Management System (PLMS) Operation Efforts for Global Regulatory Compliance
In order to comply with global regulations regarding personal To ensure that our products and services do not violate any laws
data and privacy from the development stage of products and or regulations of each country, we monitor laws and regulations
services, Samsung Electronics operates a Privacy Legal Man- on personal data protection around the world. To comply with
agement System (PLMS) in conjunction with the Product Lifecy- EU GDPR (General Data Protection Regulation) implemented
cle and R&D management system (PLM). We assess the poten- in May 2018, our worksites in the EU region have been estab-
tial risks throughout the lifecycle of products and services– from lishing relevant organizations, policies, protection procedures
planning, development, operation and to discontinuation- by while enhancing IT system that can reinforce personal data
utilizing personal data and privacy risk checklists. The check- subject’s rights as stated in regulations. In China, Brazil, and
lists are then reviewed by dedicated personnel from our legal the US, we have established dedicated departments in accor-
department. dance with the relevant laws, and have established a system
that can safely process and transfer data. We also established a
system to ensure that the personal data subject can exercise his
or her rights properly, and are reviewing relevant policies and
processes.
China
US
Footnotes:
1) Lei Geral e única de Proteção de Dados (General Data Protection Law)
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 068
Technology for Good
Accessibility
We are continuously striving to improve accessibility of our
products and services to serve the needs of our consumers. SeeColors Application
We apply “4C Accessibility Design Principles” to all our prod- We apply a SeeColors application to our TV models, which
ucts, content and services in order to carefully consider the wide checks color blindness and adjusts the screen so that those
range of users’ experience. users who have difficulty detecting colors are able to see the
colors expressed on TV properly.
To develop products and services reflecting these principles, When this set of users perform a SeeColors application, the
we have developed and distributed an Accessibility UX Design app chekcs color blindness of 10 different types. Based on the
Guideline and an Accessibility UX Design Checklist across the result, the SeeColors application adjusts the color expression of
the TV to suit the user.
company.
Design carefully and consider of Design for all equally Design that provides the same Design created jointly with
user’s point of view accessibility to all products users
Samsung Electronics Sustainability Report 2019 069
· Accessibility Shortcuts
One-touch route to an on-screen menu which allows you to view or adjust the status of the TV’s Accessibility features.
Furthermore, we will increase the importance of AI ethics We invest about 8 percent of its annual sales in R&D and are one
through various means including internal guidelines and educa- of the largest R&D spenders globally. A considerable portion of
tional programs for employees aimed at raising awareness and this investment goes into the development of new technologies
to hold ourselves to a higher standard with regards to AI ethics. like AI.
CAMBRIDGE TORONTO
· Data Analysis · Visual Understanding
· On-Device AI · Multimodal
· Visual Understanding
MOSCOW SEOUL
· Machine Learning SAMSUNG MONTREAL
· Visual Understanding RESEARCH AI CENTER
· Language Understanding,
· Head Center · Machine Learning
SILICON VALLEY NEW YORK
· AI Interaction · Robotics
Samsung Electronics Sustainability Report 2019 071
Don’t be a Cyberbully!
Samsung Kids Home on Parental Control Function
Quick Panel Samsung Electronics in Turkey is running a digital campaign to
eradicate cyberbullying among teenagers.
We posted anti-cyberbullying materials on digital screens at
Partnership with Internet Matters our service centers and retail-shops. In addition, we conducted
To improve children’s digital safety and parental access to infor- a program where our employees mentored Turkish students
mation, Samsung Electronics in UK partnered with Internet Mat- and worked to prevent of cyberbullying. While closely coop-
ters. Internet Matters is a not-for-profit organization empower- erating with governments, universities and schools, we have
ing millions of families to keep children safe online. Through the contributed to enhancing the awareness on cyberbullying by
partnership, we are ensuring that the most up-to-date and rele- implementing various online campaigns through offline edu-
vant information is provided to parents and care givers , aiming cation and digital media.
to help children use Samsung Electronics products safely. As a result, we received the MIXX Award Gold Award in Febru-
Our joint micro-site with Internet Matters features step-by- ary 2018, the Social Media Gold Awards in April 2018 and won
step advice on setting up the parental controls across Samsung the Turkey Best Social Responsibility Campaign Award in Octo-
products, including Samsung Kids Home. ber 2018.
73
70
67
65
155,505
2013 2014 2015 2016 2017 2018
2017 63%
18%
From 2017
2018 Green Line 81%
We put forward our best efforts and apply strict management standards to protect the labor and human rights of our employees and
our suppliers' employees. Moreover, we have rigorous human resources management standards in place to strengthen employee
competencies.
To create a safety culture that meets global standards, we have embedded our environment, health, and safety (EHS) management
system in our business strategy, with safety management being part of our management's performance targets. We also assess
workplace safety and offer safety training programs to our employees. In addition, we undertake various safety initiatives by
identifying safety issues and performing assessments at all our manufacturing sites.
[Goal 3] Ensure healthy [Goal 5] Achieve gender [Goal 8] Promote sustained, [Goal 10] Reduce inequality
lives and promote well- equality and empower all inclusive and sustainable within and among countries
being for all at all ages women and girls economic growth, full and
productive employment and
decent work for all
3.9 By 2030, substantially 5.1 End all forms of discrimi- 8.5 By 2030, achieve full and 10.2 By 2030, empower and
reduce the number of deaths nation against all women and productive employment and promote the social, economic
and illnesses from hazardous girls everywhere decent work for all women and and political inclusion of all,
chemicals and air, water and men, including for young people irrespective of age, sex, dis-
soil pollution and contami- 5.5 Ensure women’s full and and persons with disabilities, ability, race, ethnicity, origin,
nation effective participation and and equal pay for work of equal religion or economic or other
equal opportunities for lead- value status
ership at all levels of decision
making in political, economic 8.7 Take immediate and effec-
and public life tive measures to eradicate forced
labour, end modern slavery and
human trafficking and secure the
prohibition and elimination of
the worst forms of child labour,
including recruitment and use of
child soldiers, and by 2025 end
child labour in all its forms
At Samsung Electronics, throughout 2018 To achieve these objectives, the BSR con- Moreover, we are implementing various
and 2019, we conducted a Human Rights ducted the HRIA in line with the three systems to improve our employees’ wel-
Impact Assessment (HRIA) for Samsung main parts of the UNGPs framework - Pro- fare. To allow our employees to work in
Electronics Vietnam (SEV) in collabora- tect, Respect, and Remedy. The assess- safer conditions, we operates in-house
tion with Business for Social Responsibil- ment identified and prioritized actual and hospitals with a total of 93 hospital beds.
ity (BSR), a global non-profit organization potential adverse impacts, and proposed We are also operating 22 Mommy Room’s
specializing in human rights. measures for remedy. In addition, BSR’s for expectant mother employees and
assessment included external stakehold- in-house hopital with gynaecologists.
Assessing human rights impacts is a step
ers interviews on-site at SEV, in Vietnam,
in the due diligence process proposed Going forward, we will continue our vari-
and globally, as well as an extensive doc-
by the United Nations Guiding Principles ous activities to identify the characteris-
ument review and interview with employ-
on Business and Human Rights (UNGPs) tics that negatively affect human rights
ees and management.
to minimize human rights violations and and to develop appropriate mitigation
resolve their adverse impacts. In this To actively communicate and engage plans in order to ensure improvements
sense, we set the following goals of the with our stakeholders, we held a stake- in our worksites’ environment and the
HRIA for assessing SEV’s human rights holder engagement forum in Vietnam protection of our employees’ labor and
policy and management system: with approximately 300 stakeholders. human rights.
Under the topic of “Gender Equality and
1) identifying factors that affect human
Integration in the Digital Era”, we invited
rights; 2) making recommendations to
the Vietnam General Confederation of
mitigate risks and maximize opportu-
Labour, the International Labour Organi-
nities; and 3) improving human rights
zation (ILO), UN Women, the World Bank,
management by empowering employ-
and other non-profit organizations, to
ees and other stakeholders based on
present and held panel discussions. The
constructive dialogue.
forum enabled us to gather meaningful
perspectives from all relevant stake-
holders on how to enhance human rights
as a member of the global community
and an industry leader.
Our Efforts to
Respect Human
Rights
Samsung Electronics Sustainability Report 2019 075
Footnote:
1) Occupational Safety and Health Act in Korea
2) International Agency for Research on Cancer
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 076
Investing in Our Employees
We are carrying out various activities to protect labor and human To actively remain in investing in human capital in response
rights throughout our operation and business activities. We global environmental changes, we have developed policies and a
ensure equal opportunities for all employees and applicants with management system associated with not only labor and human
‘Guidelines on the Prevention of Harassment’. We endorse global rights but also human capital development. As part of our human
efforts to prevent child labor and forced labor. Respecting and capital investments, in addition to policies and a management
protecting human rights - the fundamental and inalienable rights system, we operate a human rights analysis system, educational
and freedoms to which all people are entitled - is at the core of programs for raising employee awareness regarding human
our labor practices. rights, diversity and inclusion initiatives, and employee compe-
tency reinforcement programs.
Policy Commitment & Management Impact/Risk Analysis & Management Grievance Mechanisms & Stakeholder
System Engagement
Policy & The Samsung Electronics' Code of Conduct We constantly identify, evaluate, and manage Our employees are very important to us and
Approach and the Business Conduct Guidelines refer- the actual and potential impacts that our busi- we strive to have an open dialogue with them
ence our commitment to respect human rights ness activities have directly and indirectly on to understand their needs and concerns.
an ethical labor practices. human rights.
We observe the Code of Conduct of RBA as a We recognize that the internal capabilities The grievance resolution channel for our
member of the Responsible Business Alliance and management processes of enterprises are employees and external stakeholders is a key
(RBA). critical to minimizing negative human rights element of Samsung Electronicsʼ human rights
impacts. activities and offers important information to
identify potential human rights impacts.
We support and strive to work in accordance We continue to make sure that adverse We systematically communicate with internal
with the United Nations Guiding Principles on impacts on human rights are dealt with prop- and external stakeholders, including employ-
Business and Human Rights. erly and make further improvements. ees, through a variety of channels.
Actions We have various internal policies and pro- We have established a system for human As a member of various industry associations,
cedures on human rights, human resources, rights impact/risk assessment and manage- we periodically engages with various compa-
labor rights, and health and safety. These ment in place, where compliance with human nies to discuss the key industry-wide human
policies and procedures are supplemented rights policy and internal management is peri- rights issues posed by external stakeholders.
by management systems and processes to odically assessed. We also take into account
ensure their effective implementation. Their external factors and conduct separate assess-
effectiveness is frequently evaluated and ments for high-risk situations.
revised according to need.
We provide training to raise awareness of We identify vulnerable groups (such appren- We operate various types of Grievance Resolu-
labor and human rights so that our policies tices and migrant workers) with whom human tion Channels for our employees and external
and procedures are thoroughly followed at rights issues may arise and pay close attention stakeholders.
each business site. to these groups.
Human Capital Policies and Management System we perform evaluations on a regular basis to identify the status
of compliance and design improvement activities of each work-
Samsung Electronics’ labor & human rights policies embrace the
place.
idea and value of international human rights principles and stan-
dards set forth in the Universal Declaration of Human Rights, the Grievance Resolution Procedure
UN Guiding Principles on Business and Human Rights (UNGPs), In accordance with the 'Effectiveness criteria of non-judicial
the guidelines from Organization for Economic Co-operation and grievance mechanisms' as implied in Clause 31 of the UN Guid-
Development for multinational corporations, the UN Convention ing Principles on Business and Human Rights, we continuously
on the Rights of the Child, the International Labour Organisation's address ways to protect the substantive and procedural rights
Declaration on Fundamental Principles and Rights at Work, and of our employees. This includes providing accurate information
the laws of the countries where we conduct our business. Addi- on the process and results of grievance management, prohib-
tionally, we abide by the Code of Conduct of the RBA. All Sam- iting disadvantaging those who submit grievances, and ban-
sung Electronics' employees must comply with diverse internal ning discrimination when dealing with grievances. Based on the
policies regarding human rights, including bans on discrimina- Grievance Resolution Guideline, the company operates four types
tion, forced labor, and child labor. To manage such compliance, of grievance-handling channels to suit characteristics of each
Samsung Electronics Sustainability Report 2019 077
site. (As of April 2019, there were 30 business sites and 308 chan- Work Council
nels) In addition, in 2018, we established an additional grievance To channel the voice of our employees, we operate work coun-
handling channel ([email protected]) to listen to vari- cils in 48 global workplaces in accordance with the country's
ous voices of stakeholders. Since 2016, through the workplace laws and regulations as well as based on each business site's
monitoring system, we have monitored and reported griev- characteristics. Our employees elect their representatives on
ances by channel, grievance handling progress and processing their own under the principle of direct, secret votes, and the rep-
results; and we manage compliance rates by channel and ana- resentatives hold discussions or meetings with on-site work-
lyze employee satisfaction and awareness as performance indi- ers more than once a week. In 2018, 1,180 discussions were
cators. In particular, our workplaces employing migrant work- held and joined by a total of 17,256 employees. Our Work Coun-
ers provide information on grievance resolution channels in cils at respective worksites host regular meetings to consult on
their native languages to enhance their accessibility. In 2018, we such wide-ranging agendas issues as wages, labor conditions,
received a total of 12,814 grievance reports, out of which 12,779 welfare, and other diverse issues related to the promotion of
reports (99.7%) were completely resolved within our grievance employee rights. The results of the consultation are disclosed
handling deadline. to our employees via bulletin boards. In 2018, a total 3,027 of
items were raised through these forums globally, out of which
Data on Grievance Submissions (2018) 2,740 items (90.5%) were resolved.
Type of Grievance No. of Grievances Unit: No. of reports Europe, North America, 12 148 20,953
Central/Latin America
Labor conditions 4,467 Total 48 778 271,874¹⁾
Risk Identification
· Share the inspection results with the worksite man-
Risk Identification Descriptions agement
System Follow-up · Establish future improvement plans and measures
Worksite Conduct a monthly assessment of compliance manage- to prevent recurrence within one week of inspection
Monitoring management and improvement activities ment · Implementing improvement tasks by organizing an
System 55 assessment items in 7 areas in 12 languages, expert Task Force such as personnel and environ-
including English, Chinese, Vietnamese, and Spanish mental safety
Worksite Risk Monthly external/internal risk assessments · Management of monthly progress of improvement
Analysis System A total of 53 indicators analysis tasks through the worksite monitoring system
- 32 internal management indicators, such
as working environment, working conditions,
workforce operation and systems Footnote:
- 21 external environmental indicators of the country
where our worksite is located 1) RBA Auditors who have completed 'RBA Labor & Ethics Lead Auditor
Training' and other global labor and human rights experts
Employee perate internal grievance resolution channels
O
Communication 2) 51 items in the fields of labor/human rights, health and safety,
Regular meetings and interviews with the executives, environment, business ethics.
managers, and employee representative bodies
3) 27 items in human rights, legal compliance, and etc., 41 items in
Networking Identify various risk factors and problems that may
communication, human resource policy, and employee representative
with External arise in global worksites through networks such as
body, and etc., 10 items in infrastructure, and 10 items classified as
Stakeholders governments, NGOs, and academia
'others'
Samsung Electronics Sustainability Report 2019 079
Through these assessments, we put forward our best efforts to that end, Samsung Electronics offices around the world have
enhance the working conditions of overseas worksites. We do designed region-specific initiatives based on their diversity
this by organizing and maintaining a variety of policies for our interest and cultural priorities in alignment with our global D&I
operation as well as enhancing grievance mechanism and busi- vision.
ness partner management standards. Moreover, we provide edu-
cations to our employees on human rights, RBA Code of Conduct, Learning & Development Structure to Foster Diversity
internal guidelines, and grievance handling procedures. & Inclusion
We have established and provided learning and development
programs to successfully cultivate and maintain diversity and
RBA On-site Audits inclusion within our corporate culture as employees are per-
forming daily tasks. In order to do so, we assess our worksitesʼ
As a member of RBA, a global coalition devoted to corporate
needs for diversity and inclusion, while encouraging our
social responsibility, Samsung Electronics is applying RBA
employees all around the globe to participate in learning and
Code of Conduct to manage the work environment of global
worksites and suppliers. RBA on-site audit is an audit process
development programs for diversity and inclusion.
designed to identify work environment-related risks and drive
improvement measurements in the areas of labor, health & Training Curriculum for Fostering Diversity & Inclusion Culture
safety, environment, business ethics, and business systems.
Type Description
STaR Session1) / HR Fair STaR Session is a comprehensive talent development process designed to support our employees in charting their career paths
with their leaders. Based on each employee's job competency modeling results, STaR Session offers a variety of development
opportunities encompassing job training and academic training programs including MBA degrees that can be customized to
each participant’s career stage and development needs.
Job Posting Our employees are provided with opportunities to move to different positions within the company through our Job Posting
program, which is available upon needs. This program follows a systematic in-house process including posting jobs, receiving
applications, screening papers, and interviewing the applicants. Over the past three years, a total of 2,120 employees were able
to move to their desired positions through the Job Posting program.
Career Consulting Center Since 2001, we have provided retirees, as well as current employees, with opportunities to start anew in order to prepare for
future career. We have supported programs such as career consulting for current employees, life designing consulting for retir-
ees, career change training and external job matching.
Among approximately 7,100 employees received the assistance; a total of 6,187 employees have been able to successfully begin
new careers since the establishment of the Center.
Life Design Training This course allows our employees to plan their future in preparation for an extended retirement age and aging society. Each year,
eligible employees are offered an opportunity to self-reflect and ponder over what they would like their life after retirement to
look like. The course aims to help employees remain productive at work while effectively dealing with the anxiety associated
with their respective life/career stages. It also represents another way that we fulfill our corporate social responsibility.
Footnote:
1) Samsung Talent Review Session
At Samsung Electronics, we conduct the survey focusing on five Number of worksites and Unit: No. of worksites /
categories-Work Smart, Think Hard, Build Trust, Leadership participants for SCI (2018) No. of participants
and Policy- which are the core elements of our 2020 vision of
Total HQ Productions Sales R&D
'Inspire the World, Create the Future'.
Numbs of 130 1 28 71 30
Since the introduction of this index in 2012, comprehensive worksites
employee satisfaction has risen every year, with the over- Participants 286,209 86,298 160,525 22,138 17,248
5 Points Average
Increased 87 90% 95 96.4
93.1
92.3 92
82
88.4
74
71
68
65
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Samsung Electronics Sustainability Report 2019 081
· Brief on situation · Organize an emer- · Analyze the cause of · Set and implement · Set plans to prevent
· Identify the type gency management the accident through recovery plans reoccurrence
and risk level of the committee an investigation · Execute business · Review the effective-
accident · Take emergency continuity plans ness of the accident
evacuation/first aid response system
action
Health Campaigns
For all employees, we have conducted several health campaigns, such
as Walking Campaign using the Samsung Health App and No Smok-
ing&Drinking.
Mediation and Compensation on Occupational Disease party compensation committee, Samsung committed to starting
the compensation process in 2018 and continuing it until 2028. In
In November 2018, Samsung Electronics accepted a settlement addition, Samsung expressed its regret to the aggrieved employ-
plan recommended by the Mediation Committee, a third party ees and families for not having responded in a timelier manner
committee formed to oversee the mediation process to resolve and has pledged KRW 50 billion to the Korea Occupational Safety
claims regarding health issues of employees of Samsung’s semi- and Health Agency for research in improving the health of workers
conductor production lines. in the electronics industry.
The Mediation Committee was launched in December 2014, and Although it is very difficult to establish the causal relationship
with the proposal of the Family Committee, former Supreme Court between the workplace environment and the contracted illnesses,
Justice and lawyer Ji-Hyung Kim (who specializes in labor law) Samsung has unconditionally accepted the resolution from the
became the head of the Mediation Committee. Since then, the Mediation Committee because it was willing to do what was best
Mediation Committee has led the mediation among stakeholders. for alleviating the pain of the grieving families.
In accordance with the Mediation Committee’s compensation Samsung will continue its efforts to provide a safe and healthy
guidelines and details to be set forth and operated by a third- workplace.
Samsung Electronics Sustainability Report 2019 085
Preliminary Warehouse
Use (inventory
Chemical Purchase registration Disposal
management)
Evaluation (place of usage)
Footnote:
1)Preliminary review: Performed based on Material Safety Data Sheet (MSDS), chemical warranty letters, and letters of confirmation (LOC)
2018 HIGHLIGHTS
Funding Support
100%
Footnote:
1) Responsible Minerals Assurance Process
We firmly embrace the philosophy of fairness, openness and co-prosperity with about 2,400 first-tier suppliers worldwide. Moreover,
to establish a sustainable business ecosystem, we strive to strengthen the competitiveness of our supply chain as well as to require
them complying with global laws and regulations and fulfilling social responsibilities.
Our Knowledge
Sharing with SMEs -
Building Smart
Factory
Biz. Ecosystem
Supply Chain Competitiveness
Samsung
Electronics
Key Suppliers provide programs for mutual growth. Also, since 2011, we are
For our first-tier suppliers, we designate those with high trans- encouraging our first-tier suppliers to sign a fair trade agree-
action volume and business importance as key suppliers in ment with second-tier suppliers, which we annually sign with
order to identify opportunities and effectively focus on moni- our first-tier suppliers. Starting from 2018, we are encouraging
toring and managing the supply chain. We give key suppliers a fair trade agreement with second-tier suppliers, between our
second- and third-tier suppliers so that our culture of fair trade
extensive support, including a priority for contract renewals,
and mutual growth is expanded to lower-tier suppliers.
more transaction allocations, a capacity building program and
on-site services to improve their work environment. In 2018, the
key suppliers accounted for nearly 34% of our supply chain, with
Comprehensive Supplier Evaluation
purchases from them representing approximately 92% of our We perform a comprehensive annual supplier evaluation to
total procurement spend. In particular, we designate suppliers, assess the competitive edge of suppliers and to control sus-
who have a large impact on our supply chain from managing tainability issues by using eight evaluation criteria–Technol-
multiple lower-tier companies, as priority suppliers and man- ogy, Quality, Responsiveness, Delivery, Cost, EHS (Environment,
age compliance. Health & Safety), Finance, and Law. Among these, three criteria
(Finance, EHS, and Law) are utilized for the analysis of suppli-
We also designate our second-tier suppliers who supply to our
er-related sustainability issues linked to economic, environ-
key first-tier suppliers and have large transaction volumes for
mental and social compliance. We use various methods to eval-
Samsung Electronics as our key second-tier suppliers. This is
uate suppliers, including transaction data, on-site inspection
done in order to manage the potential risks on working environ-
results, and data uploaded by suppliers. As the evaluation pro-
ment such as the use chemicals of concern in the manufactur-
cess is conducted on an ongoing basis throughout the year, all
ing process.
suppliers can check and monitor their performance in real-time,
Lower-tier Supply Chain Management through the integrated procurement system. In 2018, we evalu-
Our supplier management approach extends to second-tier ated 91% of our total suppliers, with those registered less than
suppliers based in Korea in order to strengthen our compet- one year excluded.
itive advantage along the entire supply chain. To manage sec-
High Performers
ond-tier suppliers, we clearly define first-tier suppliers’ respon-
The results of our comprehensive supplier evaluation are used
sibilities regarding the working conditions within sub-suppliers.
in all supplier management processes. As such, raising the pro-
We encourage our suppliers to engage in responsible corporate
portion of high performers (rated as “excellent” or “good” ), is a
activities described in our Supplier Code of Conduct and ensure
key performance indicator in our supply chain management in
compliance among their sub-contractors.
terms of securing sustainable competitive edge of suppliers.
Contracts Between First- and Second-tier Suppliers : First-tier The proportion of suppliers rated as high performers in 2018
suppliers are required to sign a standard contract form with stood at 64%. In the 2018 evaluation, we strengthened our eval-
second-tier suppliers that are engaged in the production of the uation standards related to environment, health and safety,
items supplied to Samsung Electronics. It includes the same process failure, and payments between suppliers in order to
level of compliance that we ask of our first-tier suppliers. boost sustainability by expanding the social responsibilities of
Worksite Environment, Health and Safety : We hold our first- the supply chain. We aim to maintain the percentage of high
tier suppliers accountable for building and supporting a safe performers at above 60%.
work environment at second- and/or lower-tier suppliers and High performers are granted incentives, including the pref-
reflect on outcomes in evaluating their performance. For items erential transaction allocations for the following year and an
with high environment, health and safety concerns (e.g. chemi- opportunity to join capability building initiatives, while under-
cal substances), we have developed and distributed a safe man- performers are required to take corrective measures and are
agement guidance to our first-tier suppliers, which assists them subject to penalties, including reductions on transaction vol-
in examining the environmental, health and safety performance ume and restrictions on additional transactions. In addition,
of second-tier and lower tier suppliers. as part of incentives for our suppliers, we hold an annual event
Promotion of Fair Trade Policy : We support wide-ranging pro- Partner Collaboration Day and award prizes for best innovation
grams to promote a fair trade between first- and second-tier practices.
suppliers. With the help of Hyeopseonghoe, a council made up
of our first-tier suppliers, and a Council of Trustees (consisting
of second-tier suppliers), we establish a culture of fair trade and
Samsung Electronics Sustainability Report 2019 093
Managing Suppliers with High-Risk in Sustainability Law (Social) : We conduct on-site audits of our suppliers to
We concentrate on managing our supply chain by identifying sup- check their compliance with mandatory RBA items. Based on
pliers who require additional due diligence based on our compre- the on-site audits, suppliers who need to correct for actions are
hensive supplier evaluation and on-site audit, which include Eco- required to put in measures for improvement.
nomic, Social and EHS topics. To this end, we visit such suppliers EHS (Environment, Health and Safety) : Suppliers who use
on a regular basis to provide them with consulting services and chemicals of concern in manufacturing processes are classified
improve their work processes. In 2018, the proportion of high-risk for further due diligence. We send our EHS experts to support
suppliers remained flat year-on-year, at 2.7%. their activities for improvement.
Finance : Based on business information and data from a credit
rating agency, we monitor suppliers’ financial information on a
quarterly basis. Regarding the suppliers found to have low credit
rating, we take proactive measures to prevent business risk.
1 2 3 4
Footnote:
1) Post management for each rating:
① Excellent: Give preference in allocating volume for the following year
② Underperforming: Request improvement measures
③ Poor: Reduction in transaction volume and restriction of additional transactions
Category Item
Business Technology ‧ Eight items, including the ownership of technology patents and R&D investment
Competitiveness Quality ‧ Five items, including failure rates and quality management system
Responsiveness ‧ Six items, including engagement in our policies and the use of conflict minerals
Delivery ‧ Six items, including on time delivery and RTP¹⁾ response rates
Cost ‧ Five items, including increases in transaction value and competitive edge in terms of cost
Sustainability EHS ‧ Five items, including workplace safety and international certification
Issue Finance ‧ Three items, including credit rating and debt ratio
Law (Social) ‧ Five items, including labor/human rights in the workplace and anti-corruption
Footnote:
1) Return to Purchasing order
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 094
Sustainable Supply Chain
As a global corporate citizen, we seek co-prosperity with com- to enhancing competitiveness in our supply chain. In addition,
munities, countries, and humanity as a whole. To this end, we we have been expanding our partner collaboration programs
are committed to bolstering mutual trust with our first-, sec- to include SMEs that we have no business relationship with to
ond-, and third-tier suppliers via support and cooperation, and strengthen a corporate ecosystem in the community.
‧ Win-Win funds (KRW 1.4 trillion), Payment support funds 1st- /2nd- /3rd
Funding
(KRW 800 billion scale 1)) -tier suppliers
Footnote:
1) Payment support funds target first- and second-tier suppliers
Improvements to EHS
In 2014, we established a dedicated organization to support sup-
pliers’ environmental safety management. The organization pro- Sales Channel Support
vides various programs including promotion of EHS Modeling In addition to support for manufacturing and production innova-
suppliers, environmental safety consultancy, and improvement tion, we help identify sales channels for our suppliers and SMEs
activities for suppliers that handle chemicals of concern. In 2018, with whom we have no business transactions. Leveraging Sam-
we provided environmental safety consulting to 628 suppliers. sung Electronics’ global brand awareness, network and market-
For 22 first-tier and 33 second- and third-tier suppliers that use ing knowledge, we provide support such as PR activities, market-
chemicals of concern in their worksites, we provided 28 environ- ing campaigns in international media, and information session for
mental safety experts. These consulting services improved their companies who want to launch their products in online retailers.
level of environmental safety. In addition, out of the suppliers In addition, we hold a Smart Biz Expo, offering sales and invest-
for whom we provided environmental safety consulting in 2017, ment opportunities for approximately 100 companies.
we selected 44 first-tier and 120 second- and third-tier suppliers
to improving their current condition of worksites.
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 096
Sustainable Supply Chain
1 2 3
‧ Annual self-assessment of all first-tier ‧ Conduct on-site audits on “priority ‧ An RBA-certified third-party external
suppliers using 85 RBA-based criteria suppliers” selected according to audit firm randomly selects suppliers
location, transaction volume, past and performs initial audits based on
track records on compliance and the RBA criteria (306 suppliers on a
self-assessment outcomes to identify cumulative basis since 2013)
improvement tasks. (Conduct on-site
‧ Conduct unannounced audits since
audits on 407 suppliers in 2018)
2015 in which specific schedules are not
‧ On-site audits led by RBA-certified provided in advance to prevent any kind
auditors and performed by dedicated of preliminary preparation prior to the
team, an independent auditor separate inspection and to ensure more accurate
from the procurement organization verification
within Samsung Electronics
‧ For the tasks that can be immediately
‧ Interview suppliers’ employees for the completed, instant actions are taken on
square root quantity of total employees the site. Typically, tasks are completed
for each supplier when conducting audits within 30 days of registration. Closure
audits are conducted to verify the results
of improvement tasks (193 suppliers on
a cumulative basis since 2013)
Samsung Electronics Sustainability Report 2019 097
fied for further attention are required to back up their data. In some Responsible Minerals
cases, we provide on-site support for suppliers who need improve- Responsible minerals are defined as minerals that are mined under
ment at their request. Through these activities, we help our suppli- vulnerable conditions with potential human rights violations or
ers to review and improve their conflict minerals management pol- environmental destruction. For cobalt, we have been reviewing our
icies/organization and information management systems so that use of the mineral according to OECD Due Diligence Guidance and
they can strengthen their ability to manage conflict minerals and will further monitor status based on the RMI Cobalt Reporting Tem-
enhance their due diligence system. plate. As such, we have been investigating smelters regarding the
child labor in Democratic Republic of the Congo. We will continue
Improvement Plans for Risk to set clear guidelines for our suppliers and raise their awareness
We have required all of our suppliers to ban the use of conflict
about responsible sourcing of minerals through educational train-
minerals, while urging them to switch to smelters certified by
ing. We are always seeking ways to work together with other global
the RMAP. Transaction of materials that use minerals supplied by
companies and are listening to the opinions of our stakeholders,
non-RMAP-certified smelter is blocked by our G-SRM. In addition,
including through our engagement with RMI. Furthermore, we par-
we established a VOC channel for our suppliers in order to provide
ticipate in a variety of global initiatives such as the European Part-
sufficient support to our suppliers and operated a real-time support
nership for Responsible Minerals and with partner groups.
system. In addition, we always verify the origin of minerals and the
use of conflict minerals based on smelter information submitted by
each supplier. We then re-check whether smelters using minerals of Industry Cooperation for Sustainable Cobalt Mining -
uncertain origins or without a RMAP certification use conflict miner- “Cobalt for Development”
als, and recommend they seek to obtain a RMAP certification.
In order to address issues of human rights violations and envi-
Switching to RMAP-certified Smelters : ronmental degradation that arise from mining cobalt in the
Democratic Republic of the Congo, Samsung Electronics started
All of our suppliers, as of 2018, do business only with RMAP-certi-
Cobalt for Development, a joint pilot project financed by Sam-
fied smelters for all conflict minerals.
sung SDI, BMW Group, BASF, and Samsung Electronics, which
Recommending Smelters to Obtain RMAP Certification : is implemented by GIZ (German development corporation). The
project aims to improve not only the labor conditions of artis-
We have urged all smelters to obtain RMAP certification as a mem-
anal cobalt mining operation in that pilot mine, but also the
ber of the RMI. For Korean smelters, we are making a recommen- living environment near a selected cobalt mine. To this end, in
dation for RMAP certification in cooperation with the Korea Urban addition to risks assessment for the environment, health and
Mining Association. safety, and expanding use of personal protective equipment, we
plan to support financial literacy training, farming & entrepre-
Conflict Minerals neurship training, and to improve access to education. Once the
We require our suppliers to partner with RMAP- certified smelters project is proven effective, this could be applied to other legal
by blocking transactions with uncertified smelters via our IT sys- artisanal mines in the short term and address structural chal-
tem. This has resulted in the 100% participation of smelters we do lenges in the long term.
business with in the RMAP certification.
* Smelter List
Sustainability
Foundation
Materiality Assessment 102
Materiality Assessment
We conduct a materiality assessment on an annual basis to issues through internal discussions with relevant departments
reflect the topics we believe are of the greatest interest to our and consultation with experts. The material issues were prior-
stakeholders and our businesses. We use the outcomes of this itized according to economic/social/environmental matters of
assessment to identify material issues and disclose relevant interest to stakeholders, as well as the business impacts of the
data in our sustainability reports. We created a pool of issues issues (in terms of revenue, costs, and reputation). The findings
based on media reports, business conditions, global standards from the materiality assessment were reviewed and finalized by
and initiatives on sustainability management, and expert opin- the Corporate Sustainability Management Office and top man-
ions. Out of the pool of issues, 25 were selected as material agement.
1 2 3
Created a pool of material issues Social impact analysis Internal & External Expert Review
ㆍCreated a pool of issues from 6,294 ㆍAssessed economic/social/ ㆍThe findings of the assessment
media articles related to Samsung environmental matters of interest were reviewed by the Corporate
Electronics, peer benchmarking (85 to stakeholders, including Sustainability Management Office
and top management.
issues), and major industry issues customers, shareholders, investors,
(UN SDGs, TCFD, GRI, SASB). employees, suppliers, local ㆍExternal Expert Review
communities, NGOs, governments,
Select Material Issues and media.
ㆍSelected 25 material issues
through internal discussions Business impact analysis
with relevant departments and ㆍAssessed the impacts of material
consultation with experts on issues on our revenue, costs, and
sustainability management. reputation.
Samsung Electronics Sustainability Report 2019 103
5
Responsible Technology Use
4.5
Human Resource Labor Practices and
Product Stewardship Development and Welfare Human Rights
Supply Chain Sustainability Support
4
0.5
0
3.3 3.5 3.7 3.9 4.1 4.3 4.5 4.7 4.9
Business Impact
Key Stakeholders
Customers ㆍ
Product/service quality ㆍ
Customer satisfaction surveys ㆍ
Strengthen the quality and safety management system
ㆍSafe product use conducted by external organizations ㆍ
Provide product information by launching
ㆍCorrect product information ㆍ
Call centers, service centers country-specific websites
ㆍTransparent communication ㆍ
Prosumer programs ㆍ
Gather and address the voice of customers
ㆍ
Samsung Electronics Newsroom ㆍ
Identify and consult on customer reputations through
ㆍ
Samsung Semicon Story the Reputation Institute (Europe/Central and Latin
ㆍ
YoungSamsung Community America)
Shareholders ㆍ
Economic outcomes ㆍ
Investor Relations meetings ㆍ
Stable profit generation
& Investors ㆍ
Risk management ㆍ
General shareholder meetings ㆍ
Strengthen shareholder return policy
ㆍ
Information sharing ㆍ
One-on-one meetings ㆍ
Set up the Governance Committee under the BOD
ㆍ
Sustainability Issues ㆍ
Analyst Day ㆍ
Reinforce transparency in operating external sponsorships
(environmental, social and ㆍ
Samsung Electronics’ Corporate Films ㆍ
Host the Investors Forum
governance) YouTube URL: https://www.youtube.com/ - Attended by key institutional investors, analysts,
samsungelectronics and IT industry experts in domestic and global sites
Employees ㆍ
Workplace health and safety ㆍ
Work Council ㆍ
Manage work environment
ㆍ
Diversity and equal opportunity ㆍ
Counseling centers ㆍ
Build a creative organizational culture
ㆍ
Training and career development ㆍ
Satisfaction surveys ㆍ
Announce the three years Diversity & Inclusion Plan
ㆍ
Employment and benefits ㆍ
Samsung LiVE (North America)
ㆍ
Labor relations ㆍ
Newsletters ㆍ
Operate a customized career life cycle program
ㆍ
Reporting systems (compliance, ethics) ㆍ
Host business briefings
Suppliers ㆍ
Fair trade ㆍ
Hotline, Cyber Shinmungo ㆍ
Promote fair trade and shared growth
ㆍ
Shared growth ㆍ
Supplier meetings, Partner ㆍ
Assist suppliers with their innovation initiatives
ㆍ
Employees’ human rights protection Collaboration Day ㆍ
Host the Tech Trans Fair
ㆍ
Supplier assessment of their ㆍ
Shared Growth Academy ㆍ
Operate supplier support fund
impact on society ㆍ
Management counseling group for ㆍ
Ensure responsible management of the supplier work
suppliers environment
Local ㆍ
Local recruitment, local economy ㆍ
Local volunteer centers ㆍ
Support local SMEs through the Smart Factory
Communities revitalization, and other indirect ㆍ
Local community council program
economic effects ㆍ
Samsung Nanum Village ㆍ
Preserve the ecosystem of streams in the vicinity of
ㆍ
Local environmental protection ㆍ
Local Community Blog our worksites
ㆍ
Donation, volunteering, and other (Suwon, Gumi, and Gwangju sites) ㆍ
Implement educational and recruitment corporate
social-giving initiatives ㆍ
Yongin·Hwaseong community Blog citizenship programs
(http://www.sotongsamsung.com/) ㆍ
Operate employee volunteer groups
ㆍ
Social responsibility for local ㆍ
Business networking events ㆍ
Gather feedback from global and local NGOs
communities and the environment ㆍ
Open and transparent engagement ㆍ
Engage in the work of RBA (Responsible Business
NGOs, CSR ㆍ
Contribution to the UN SDGs with NGOs Alliance) and GeSI (Global e-Sustainability Initiative)
Councils, ㆍ
Transparent and prompt ㆍ
Develop human rights policies in cooperation with
Specialized information disclosure BSR (Business for Social Responsibility)
Institutions
ㆍ
Participate in multi-stakeholder engagements such
as the European Partnership for Responsible Minerals
and in industry initiatives such as the Responsible
Minerals Initiative
Media ㆍ
Transparent and prompt ㆍ
Press releases ㆍ
Support news coverage
information disclosure ㆍ
Communication team by HQs/entities ㆍ
Host Media Day
ㆍ
Samsung Electronics Newsroom
Samsung Electronics Sustainability Report 2019 105
We strive to create not only an economic value but also social for a given year. For 2018, our financial value was approximately
and environmental values through sustainable management, KRW 44.3 Trillion, and our True Value, which includes socio-eco-
contributing to the global humanity. As these social and envi- nomic and environmental values, amounted to nearly KRW 54.5
ronmental values are hard to quantify, we have taken a qualita- Trillion, approximately 23% higher than the financial value and
tive approach in setting our sustainability management goals. 11% higher than the 2017 True Value.
Since 2016, in order to improve data reliability, we have mea-
As the currently available value indicators are not enough to
sured the outcome of our social and environmental value cre-
estimate the value of all sustainable management activities, we
ation activities using KPMG’s “True Value” methodology, which
have been steadily monitoring research on value measurement
provides a proven approach in the quantification of social and
methodologies to expand the number of value indicators. In
environmental indicators.
2018, we reviewed additional indicators by benchmarking social
Total value, which is expressed in positive or negative numbers, value estimation firms. We will continue to conduct research to
points to the sum of social value that we increased or decreased add more indicators to our 2019 measurement.
* Footnotes:
1) The above benefits and costs are adjusted in consideration of price fluctuations; Based on the USD/KRW rate of 1,114 and EUR/KRW rate of 1,274 as of
December 31st of 2018.
2) G.Psacharopoulos and H.A. Patrinos, Returns to investment in education: a further update (2004)
3) BCG, The cement sector: a strategic contributor to Europe’s future
4) G. Hutton, Global costs and benefits of drinking-water supply and sanitation interventions to reach the MDG target and universal coverage (2012)
5) EPA, Technical update of the social cost of carbon for regulatory impact analysis (2013)
6) EEA, Revealing the cost of air pollution from industrial facilities in Europe (2011)
7) TruCost PLC, Natural capital at risk: the top 100 externalities of business (2013)
8) A. Rabl, J. V. Spadaro and A. Zoughaib, Environmental impacts and costs of solid waste: a comparison of landfill and incineration (2009)
833,900 46,451
10,741,967 2018
-715,558 -4,118 54,498,385
-745,482 -3,632 2016
44,344,857 25,988,765
2017
49,158,411
Financial Investor Supplier Local community GHG Atmospheric Aquatic Environmental True
Value Value support development emissions environmental environmental impact of waste Value
impact impact
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 106
UN SDGs
At its 2015 General Assembly, the UN adopted the Sustainable Development Goals (SDGs) to establish a sustainable society across the
world. While the Millennium Development Goals (MDGs) established in 2000 focused on underdeveloped countries, the SDGs are uni-
versal goals for all countries, including developed nations. To achieve the SDGs, civil society and private-sector companies, as well as
governments and experts, need to be proactively involved.
1 NO POVERTY 2 ZERO HUNGER 3 GOOD HEALTH 4 QUALITY EDUCATION 5 GENDER EQUALITY 6 CLEAN WATER
End poverty in all its End hunger, Improve AND WELL-BEING Ensure quality Achieve gender equality AND SANITATION
forms everywhere food security, and Ensure healthy lives education and promote and empower all Ensure availability
promote sustainable and promote well-being life-long learning women and girls and sustainable
agriculture for all at all ages opportunities for all management of water
and sanitation for all
7 AFFORDABLE AND 8 DECENT WORK AND 9 INDUSTRY, 10 REDUCED 11 SUSTAINBLE CITIES 12 RESPONSIBLE
CLEAN ENERGY ECONOMIC GROWTH INNOVATION AND INEQUALITIES AND COMMUNITIES CONSUMPTION AND
Ensure access to Promote sustainable INFRASTRUCTURE Reduce inequality Make cities and human PRODUCTION
sustainable energy economic growth, Build resilient within and among settlements inclusive, Ensure sustainable
for all full employment and infrastructure, countries safe, resilient, and consumption and
decent work for all promote sustainable sustainable production patterns
industrialization
13 CLIMATE ACTION 14 LIFE BELOW WATER 15 LIFE ON LAND 16 PEACE, JUSTICE AND 17 PARTNERSHIPS FOR
Take urgent action to Protect and sustainably Protect the ecosystem STRONG INSTITUTIONS THE GOALS
combat climate change use the oceans, seas, and preserve Establish a fair justice Strengthen the means
and its impacts and marine resources blodiversity (forests, system for all of implementation
deserts, land, etc.) and revitailze the
global partnership for
sustainable development
We are committed to minimizing health and environmental impacts related to · EHS Innovation Day
the use of chemicals of concern. In addition, we strive to create an environment · Consultancy on improving suppliers’
where our employees can work without concerns over their health and safety environmental safety
in the manufacturing processes.
We run customized education programs to promote the development of local · Samsung Dream Class
communities, while providing a variety of support (via our employees and · Samsung Software Academy For Youth
technology) to enable local residents and communities to build capabilities · Samsung Solve for Tomorrow
necessary to plan for a better future.
We have a firm belief that ensuring equal opportunities is key to economic growth, · Samsung STEM Girls Program
political stability, and social change. We endeavor to find new ways to help women · Female leadership programs
globe and prepare youth for the future.
We make an efficient use of water through the 3Rs (Reduce, Reuse and Recycle). · World Water Day
In wastewater treatment, we apply an in-house standard which is stricter than · Participation in CDP Water
legal requirements, minimizing the impact on water resources.
We are fully aware of our responsibility to expand our renewable energy use to · Our renewable energy use in 2018: 1,356GWh
tackle global climate change. As such, we strive to expand the use of renewable
energy at our worksites via the installation of solar panels and geothermal units,
we have signed Power Purchasing Agreements, and have pursued Green Pricing.
We are committed to pursing innovation and new growth drivers to share related · Vietnamese consultant training program
technology with our society. As such, we run programs and systems to build · C-Lab (Creative Lab)
an innovative culture and expand investments in R&Ds and productivity growth.
We strive to improve the accessibility of our IT devices and technology to allow · Accessibility design principles (4Cs)
all consumers to benefit equally from cutting-edge technology. · Home appliance accessibility advisory group
We offer equal opportunities to all employees and applicants. In addition, · Global diversity initiatives
we do not tolerate any kinds of discrimination in our HR management on the
grounds of nationality, race, gender, age, religion, marital status, sexual orientation,
social status, pregnancy, physical disabilities, military service, genetic information,
or political propensity.
We have five circular economy principles—the expansion of the use of recycled · Galaxy Upcycling
materials, product durability improvement, compact product packaging, · Re+ program
reduction in the use of virgin natural resources, and the extension of product
life span/use. We will continue to strive to minimize our environmental footprint
through the recycling and reuse of resources.
We have prioritized climate change issues according to the degree of their · Development of energy –efficient products
importance and impact, devising a strategy to respond to them. Furthermore, · Participation in CDP Climate Change
we have invested in facilities to reduce GHG emissions; “optimize our operation”.
We are committed to minimizing the impact of our operation on biodiversity. · Stream ecosystem protection activities
In particular, we have consistently undertaken ecosystem protection activities,
including the identification of endangered species near our worksites and protection
of their habitats.
We run local programs to address a variety of social issues (related to education, · Partnership on AI
healthcare, employment, and environment) by sharing our advanced technology · “Cobalt for Development” Project in DRC
and cooperating with stakeholders.
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 108
Corporate Governance
We believe that corporate governance is key to sustainable Independence and Transparency of the Board
business operation. Based on this belief we make a consci-
The Board should be able to make independent judgments and
entious effort to embrace core values such as independence,
decisions. Directors should be appointed through a transparent
transparency, expertise and diversity. In addition, we are well
procedure. To enhance the independence of our Board, we made
aware that stakeholder engagement adds substantial value to
sure that Independent Directors constitute a majority and sep-
our efforts with respect to our sustainable growth, and we will
arated the roles of Chief Executive Officer and Chairman of the
expand our communication with diverse stakeholders.
Board. The Chairman widely listens to the opinions and acts as a
mediator between the Executive and Independent Directors; and
Board Composition
does not serve on any Committee, including the management
In accordance with Article 24 of the Articles of Incorporation, Committee to wholly preserve an objective point of view.
Samsung Electronics’ Board shall have at least three but no
Aside from meetings with the Company’s management, ses-
more than fourteen Directors. The decision for having more than
sions only attended by Independent Directors are arranged
three Directors complies with Article 383 of the Commercial Act
to facilitate a candid exchange of opinions on important mat-
in South Korea, while we believed that the maximum number of
ters, including ways to enhance shareholder value. A Director is
Directors should not exceed fourteen considering company size,
appointed by a resolution of a general meeting of shareholders,
meeting operation and the efficiency of decision making.
in accordance with Article 382 of the Commercial Act. Executive
As a result, the current Board consists of eleven Directors, six Director candidates are nominated by the Board and Indepen-
of whom are Independent Directors. Thus, the current compo- dent Directors are elected from candidates recommended by
sition complies with Article 542-8 of the Commercial Act, which the Independent Director Recommendation Committee, accord-
states that a company shall have at least three Independent ing to Article 542-8 of the Commercial Act.
Directors and that Independent Directors shall constitute a
The Independent Director Recommendation Committee is a com-
majority of the Board.
mittee under the Board who, after in-depth reviews, recommends
As of April 2019, our Board composition is as follows. Independent Director candidates to be presented at a general
meeting of shareholders. The Committee consists entirely of
Independent Directors. This meets requirements of Article 542-8
of the Commercial Act, which states that Independent Directors
must constitute a majority to ensure the Committee’s indepen-
dence and transparency and that it duly recommends candidates.
Name Title Management Audit Independent Director Related Party Compensation Governance
Committee Committee Recommendation Transactions Committee Committee
Committee Committee
Expertise and Diversity of the Board a meeting of the Board shall be convened by the Chairman of
the Board, and the Chairman shall give notice to each Director
In a rapidly changing business environment, Director exper-
of the date, time, place, and meeting agenda at least 24 hours
tise is essential as the Board is constantly required to make
prior to the meeting. Directors may request the Chairman to
strategic decisions. The Company’s three main businesses—
convene a Board meeting when deemed necessary in the per-
the Device Solutions (DS), Consumer Electronics (CE), and IT &
formance of duties; and they shall explain the agenda and rea-
Mobile Communications (IM) divisions—are directed by lead-
sons for such action to the Chairman. If the Chairman rejects a
ing professionals in the relevant field who practice responsible
meeting request without a valid reason, the Director who made
management as chief executive officers and also participate on
the request may convene a meeting directly.
the Board. In addition, the Board needs diverse perspectives in
order to make good decisions. Independent Directors leverage In accordance with Article 31 of the Articles of Incorporation and
their expertise and skills in myriad fields, including finance, law, Article 9 of the Regulations of the Board of Directors, the pres-
engineering, IT, public administration, and ESG to contribute to ence of a majority of all Directors shall constitute a quorum for
the Board’s informed and objective decision-making process. a meeting of the Board and the resolutions of the Board shall
be adopted by a majority of the votes of the Directors attending
As of the reporting date, we enhanced Board diversity and
the meeting. In accordance with Article 391 of the Commercial
expertise by increasing the ratio of female Directors, and also
Act, the Board may adopt a resolution without all or some of the
increasing the ratio of financial experts in the Audit Committee.
Directors being present at the meeting in person if they are pres-
ent by means of a remote communications system that enables
Board Operation
the simultaneous transmission and receipt of the voice of the
The Board holds seven to eight regular meetings per year for Directors. In such cases, the relevant Directors shall be deemed
matters such as approving quarterly financial statements as being directly present at the meeting. According to Article 9
and convening the AGM (Annual General Meeting). A special of the Regulations of the Board of Directors, voting rights of a
or extraordinary meeting can be called when deemed neces- Director who has a special interest in the agenda item shall be
sary. In accordance with Article 30 of the Articles of Incorpora- limited in order to eliminate the possibility of conflict of interest.
tion and Article 8 of the Regulations of the Board of Directors,
· Directors are prohibited from engaging in business activities in the same industry without the
BOD’s approval
· Those who are full-time employees, affiliated to the Company’s largest shareholder or
to the Company itself, or recently worked at the Company within the past two years are prohibited
Independence from serving as Independent Directors
· The Chairman of the Board is appointed by the Directors through a Board resolution in accordance
with the Articles of Incorporation and the Regulations of the BOD
· Directors are not allowed to exercise their voting rights regarding agenda items in which they have
special interest
· Independent Director candidates are nominated based on their expertise or experience in areas
such as business administration, economics, accounting, law, and relevant technologies
Expertise and · Independent Directors are provided with regular internal training via visits to domestic/overseas
business sites and through briefings on the Company’s operational status
Diversity
· Multiple factors – religion, race, gender, hometown, expertise – are taken into account during the
selection process, and discrimination based on such factors is prohibited when nominating director
candidates
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 110
Board Committees
The Board has established six committees in accordance with Each agenda approved by the Board’s Committees is provided to
Article 28-2 of the Articles of Incorporation and Article 11-2 of all Directors and if deemed necessary, each Director may call for
the Regulations of the Board of Directors, and has delegated cer- a meeting of the Board to put the resolutions approved by the
tain responsibilities to the committees to ensure efficient opera- Committee forward for a vote at a meeting of the Board. How-
tion of the Board. Excluding the Management Committee, which ever, agendas approved by the Audit Committee are excluded to
consists of three Executive Directors to make efficient decisions ensure the Audit Committee’s independence. Information about
about business matters, we increased independence across the committees as of the reporting date is listed below.
the board by forming all committees entirely with Independent
Directors. Each Committee stipulates its organization, operation,
and authority in accordance with the Regulations of the Commit-
tees established under Board resolutions.
Independent Director
Management Committee Audit Committee
Recommendation Committee
- Make resolutions on matters concerning the - Review and audit matters concerning - Recommend Independent Director
Company’s business, finance and matters management of the Company, including candidates after assessing their
delegated by the Board oversight of the Company’s financial status independence, diversity, and ability
- Consists of three Independent Directors - Consists of three Independent Directors
- Voluntarily comply with fair transaction - Ensure objectivity and transparency of - Promote the Company’s corporate social
regulations to enhance corporate the decision making process for Director responsibility and act to enhance
transparency compensation shareholder value
- Consists of three Independent Directors - Consists of three Independent Directors - Consists of six Independent Directors
Samsung Electronics Sustainability Report 2019 111
Risk Management
As a global leader in the IT industry, we identify both external Our Response to Risks
and internal risk factors causing business uncertainty, including
We set up systematic risk responding system for each business
sustainability risks such as human rights risks or environmental
division. We report identified risk factors to top management
risks, and we respond to this uncertainty to strengthen our sus-
to respond to the risk factors in an efficient, effective manner.
tainable competitiveness in the market. In line with top man-
Three business divisions—DS, IM, and CE—and the Corporate
agement’s commitment to risk management, we established a
Management Office, which are key organizations in business
systemized risk response policy and process for each business
operation, are responsible for managing financial risks such as
division.
markets, liquidity and credit. Through the Management Com-
mittee (consisting of CEOs) and the Risk Council (led by CFO),
Monitoring and Sensing Global Issues
non-financial risks including the corporate sustainability issue
We seek advice on a variety of risk factors through our network are also reviewed. In his role as a Chief Risk Officer for the entire
with professional consulting firms, government, academia and company, the CFO leads the Risk Council which brings together
NGOs to identify risks in economic, social, regulatory, and envi- the heads of various departments, including Legal, Human
ronmental aspects associated with key global issues. Resources, Communications, Public Affairs, Global Environ-
ment, Health and Safety Center, Partner Collaboration Center,
and Global Product Quality Innovation, allowing them to collec-
tively discuss and manage risks, including sustainability risks, in
a holistic way across departments and functions.
Governance
Board of Directors
Committee
CSR Risk
Risk Council Management Council
Regional Office/ Management support- Compliance risk Functional unit- Region-specific risk
Subsidiary related risk management management specific risk management management
Compliance ment system. We strive to minimize the risks that could arise
from unlawful business practices, and we operate compliance
We take compliance with integrity and regard laws and regula-
programs to reinforce our responsibility for matters such as anti-
tions as one of our top priorities. To fulfill our responsibility as
trust, anti-corruption, labor & human rights, health and safety,
a global player, we endeavor to promote ethical business prac-
and environment issues.
tices. Also, we carefully observe law and regulation of all coun-
tries we operate and strive to endeavor all illegal or wrongful The Compliance Program Management System (CPMS), an IT
acts in order to sustain our business in lawful and ethical manner. system developed to manage compliance-related risks, provides
our area-specific policies, and the details of regional consumer
Compliance Management
protection issue monitoring. We also operate a help desk under
We operate the Corporate Compliance Team and Global Privacy
the CPMS to provide advice on work-related inquiries and sup-
Office within our Corporate Legal Office which is under the direct
port when they are encountering difficulties with determining
control of the CEO. Furthermore, we assist our top management’s
illegalities solely based on our guidelines. Our whistle-blowing
decision making process through our compliance-related com-
system for employees, operating within the CPMS, thoroughly
mittees and the Privacy Steering Committee. Each business divi-
guarantees confidentiality and protects whistle-blowers from
sion and overseas regional offices also have their own organiza-
any disadvantages due to reporting.
tions responsible for compliance and privacy at the local level.
In order to resolve and remediate key issues in the areas of labor
Compliance Management System
relations and human rights (e.g., involving child labor, migrant
To embed compliance—a fundamental element of responsible
workers, conflict minerals, privacy, and personal data), we man-
business conduct— within our organizational culture, we con-
age risks and develop improvement measures throughout the
tinuously take measures to enhance our compliance manage-
supply chain with all the related teams in charge.
Labor
Intellectual
Anti- Consumer Relations Environment Sub-
Anti-trust Property Privacy Trade
corruption Protection & Human & Safety contracting
Rights
Rights
Footnote:
1) Subject of online training changes each year
Samsung Electronics Sustainability Report 2019 115
Ethics Management
Reports by type & number of reports per year ● Consumer Complaints ● Corruption-Related ● Others
18% 16%
20% 48%
52%
2016 42% 2017 2018
42%
30%
32%
Number of reports: 628 Number of reports: 608 Number of reports: 375
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 116
01 02 03
We comply with the laws and regulations of the As we conduct a variety of business The employees in charge of tax
countries in which we do business and fulfill our activities in several countries, we strive to management at each subsidiary are
responsibilities for transparent tax filing and payments. prevent tax risks by identifying legal and required to comply with laws and
regulatory differences in each country, and regulations in accordance with our
To this end, we maintain an open and transparent
engage only in the transactions that are tax policies and perform their tasks
relationship with the tax authorities of each country and
appropriate in terms of relevant laws, under the principle of maintaining a
provide relevant factual evidence and supporting
regulations and practices. transparent relationship with the tax
documents upon request.
authorities.
Thorough analysis of Review of local and Scenarios of profits and Possibilities and Countermeasures
specific factual grounds international tax costs depending as many existence of to risks
regulations and practices plans as possible potential risks
Samsung Electronics Sustainability Report 2019 117
Product Repair
Host · Service Rating Institute Host · JAKOSC OBSLUGI Host · Call Center Week
· Handelblatt (newspaper) (Polish rating agency) (CCW, the world’s
· Awarded Gwiazda Jakosci Obsługi largest customer service
· Mannheim (university)
2018 (“STAR QUALITY SERVICE” consortium)
Award by Customer)
Evalu- · A review panel conducts interviews, Evalu- · Selected as the No.1 based on a cus- Sam- · Awarded for customized online
ation surveys, and on-site visits, as well as ation tomer satisfaction assessment across sung training content for customer service
examines service processes 33 industries (involving 80,000 representatives (CSRs) by customer
consumers) group and product, separate training
programs between entry-level and
Sam- · Awarded three times Sam- · Ranked 1st for five consecutive years experienced CSRs, and a training certi-
sung (2015, 2017, 2018) sung (2014-18) in the electronics fication system
(home appliances/TV) category
Host · Emotion Banking (consulting firm) Host · Servicevalue (research firm) German · Ranking second in smartphone
· Die Presse (newspaper) · Goethe University Fairness services (out of 18 firms)
Award
Sam- · Selected as one of Excellence Group Evalu- · Based on a survey on customer Service · Ranked 1st in electronics;
sung firms (the only manufacturing firm ation satisfaction for 401 companies Champion Gold Award in home appliances
included in the group); also chosen as in major industries Award
Innovation of the Year
Sam- · Ranked 1st with a score of 81.7 in the
※ Awarded for two consecutive years
following 2017 sung electronics category
Evalu- · Based on mystery shopping (80%) Evalu- · Based on the results of 225 cases
ation and a service satisfaction survey (20%) ation of mystery shopping (140 calls, 50
e-mails, 15 web postings, 10 SNS com-
ments, 10 chats)
Sam- · Won best customer service awards Sam- · Ranked 1st in IM, VD, and DA
sung for mobile phones, TV, and home sung (awarded for two consecutive years
appliances following 2017)
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 120
1st place award 1st place award 1st place award 1st place award
TV, refrigerator, washing machine, TV, refrigerator, drum washing TV, refrigerator, washing machine, Computer and mobile phone
air conditioner, kimchi refrigerator, machine, air conditioner, kimchi vacuum cleaner, kimchi refrigerator, after-sales services
smartphone, PC refrigerator, smartphone, tablet, PC air purifier, air conditioner, smart-
phone, PC
*Korean Customer *Korean Standard *Global Customer Satisfaction *Korean Standard Service
Satisfaction Index Quality Excellence Index Competency Index Quality Index
US UK Germany France
36 products ranked 1st 10 products ranked 1st 10 products ranked 1st 7 products ranked 1st
as of the end of 2018 as of the end of 2018 as of the end of 2018 as of the end of 2018
5 for TVs, 4 for AVs, 3 for TVs, 1 for Blue-ray, 3 for TVs, 1 for soundbar, 2 for TV, 3 for smartphones,
3 for smartphones, 1 for HTS, 1 for soundbar, 3 for for smartphones, 1 for tablet, 1 for home appliances
1 for tablet, 1 for NPC, 2 for smartphones, 1 for tablet, 3 for tablets,
1 for fitness tracker, and 1 for home appliance and 1 for home appliance
2 for home appliances
Samsung Electronics Sustainability Report 2019 121
Performance Summary
Economic Performance
2016 2017 2018 Unit
Key Financial Performance * Based on the consolidated financial statement
Sales 201.9 239.6 243.8 KRW trillion
Operating profit 29.2 53.6 58.9 KRW trillion
Net income 22.7 42.2 44.3 KRW trillion
Footnote:
1) Changed the data from 2016 and 2017 according to excluding health & 4) Dividends paid
medical equipment business from CE business division 5) Interest expenses paid
2) Cost of all products and services purchased by Samsung Electronics for 6) Sum of salaries, severance payments, and welfare benefits included in
its business operation the cost of sales, R&D costs and SG&A costs
3) Sum of all social contributions made through donations and other 7) Sum of consolidated income taxes, other taxes, and dues calculated on
expense accounts an accrued basis
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 122
External Contributions¹⁾
Management plans for the Social KRW 12.21 billion · The Social Contribution Fund consists of voluntary The Board approved
Contribution Fund for 2018 contributions of employees and matching funds raised by this action at the
SEC. SEC plans to contribute KRW 12.21 billion in matching meeting held on
funds in 2018. January 31, 2018.
· The contribution will be used for domestic and
overseas volunteer programs as well as and local social
contribution activities.
Samsung Dream Scholarship KRW 1.12 billion · The contribution was made to support education of
Foundation lowincome high school students.
Chungnam Samsung Academy KRW 2.742 billion · The contribution was made to improve education of the The Board approved
region. this action at the
meeting held on
February
Donation of Electronics to celebrate Approximately KRW · Electronics were donated to about 1,500 social welfare The Board approved
Samsung’s 80th anniversary 7.5 bilion centers to celebrate the 80th anniversary of Samsung. this action at the
meeting held on March
23, 2018.
Samsung Welfare Foundation KRW 19.5 billion · The contribution was made to support education of The Board approved
lowincome middle school students. this action at the
meeting held on April
26, 2018.
Samsung Life Public Welfare KRW 41.5 billion · The contribution was made to support the Samsung
Foundation Medical Center.
Ho-Am Foundation KRW 4.0 billion · The contribution was made to support the Foundation’s
activities such as the Ho-Am Award.
Sungkyunkwan University KRW 15.0 billion · The contribution was made to support Samsung
Scholarship.
Smart Factory KRW 60 billion · The contribution was made to support small- and The Board approved
mid-sized enterprises strengthen manufacturing this action at the
competitiveness, foster talent, and achieve sustainable meeting held on July
growth. 31, 2018.
Samsung Software Academy KRW 499.6 billion · The contribution was made to provide quality software The Board approved
For Youth education and support job seekers foster capabilities this action at the
expected by companies. (Date: Dec 2018–Jun 2024) meeting held on
October 31, 2018.
2019 Annual Fundraising KRW 25.2 billion ·The contribution was made to fulfil corporate social The Board approved
responsibilities and help the marginalized. this action at the
meeting held on
Performance incentive to secondary Approximately KRW · The contribution was provided to 89 suppliers of the DS
November 30, 2018.
suppliers of the DS division 4.32 billion division to improve safety accident prevention, boost
productivity, and enable co-growth with suppliers.
Footnote:
1) External contributions are based on the resolution of Board
Samsung Electronics Sustainability Report 2019 123
Footnote:
1) Total hours of domestic and global sites employee volunteer work hours / 4) Including those working flexible work hours and other positions
total employees 5) Including the Vice President at global worksites
2) As of the end of the year, excluding supplier employees stationed in 6) Ratio of employees who resigned against the average No. of employees
Samsung Electronics, those who are taking leave, interns, and those during the concerned fiscal year
who are taking full-time degree courses 7) Scope of data collection: Domestic employees
3) South Korea: Classified according to the law, Overseas: Contractor + 8) Based on the total number of global employees
apprentice
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 124
Footnote:
1) Including the Vice President at global worksites 8) On an accumulated basis between 2001 and 2018
2) Based on online/offline training, including redundancy 9) As of 2018, including 3rd tier suppliers
3) Based on online/offline training 10) Supported a total of 224 suppliers in 2018, Correction of numerical
4) Scope of data collection: Employees in South Korea errors in 2016 and 2017
5) Total training expenditure ÷ total No. of employees in South Korea 11) Based on the total number of global employees
6) Total training expenditure ÷ consolidated sales 12) No. of beneficiaries in 2018 didn't included in 2018 performance.
7) Total training expenses ÷ labor expenses That's because the program in 2018 ended in May 2019
Samsung Electronics Sustainability Report 2019 125
Compliance Management
Employees who received compliance 210,229 260,032 214,450 No. of persons
training⁷⁾ ⁸⁾
Reports of the violation of business 628 608 375 No. of occasions
integrity⁹⁾
Reports of corruption 18 16 20 %
Reports of consumer complaints 52 42 32 %
Other 31 42 48 %
Employees who received anti-corruption 313,590 317,965 303,445 No. of persons
training¹⁰⁾
Footnote:
1) Accumulated since 2013 6) (No. of injured workers ÷ No. of workers) x 100
2) All suppliers excluding those registered less than one years ago (annual 7) Scope of data collection: Employees in South Korea
registration) are subject to evaluations conducted in eight categories 8) Including redundancy
3) Demand that suppliers comply with ISO 14001 or other corresponding 9) Based on the data collected from the Samsung Electronics business
standards in the standard contract form integrity website (sec-audit.com)
4) Based on all domestic employees and employees at the overseas 10) Based on the total number of global employees
manufacturing subsidiaries 11) Among all CS staff
5) (No. of injuries ÷ No. of annual work hours) x 1,000,000
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 126
Environment
Pollution Prevention 100 100 99 %
Hazardous substance management 100 94 98 %
Wastewater/solid waste management 100 98 100 %
Air pollution 100 100 91 %
Restriction of product materials 100 100 99 %
Ethics
Business Integrity 100 100 100 %
No improper advantage 100 100 99 %
Disclosure of information 100 100 99 %
Intellectual property 100 100 100 %
Protection of identity 100 100 100 %
Protection of personal information 100 100 99 %
Non-retaliation 100 100 100 %
Management System
Company Commitment 100 100 100 %
Management responsibility 100 98 100 %
Risk assessment 100 88 92 %
Training 100 100 96 %
Communication 100 100 100 %
Employee feedback 100 100 98 %
Corrective action 100 96 98 %
Management of Business 100 100 96 %
Improvement Goal
Footnote:
1) Figures that reflect the improvements made
Samsung Electronics Sustainability Report 2019 127
Product Stewardship
Development of eco-friendly products¹⁾ 86 94 94 %
Recycling
Recycling of packaging materials⁵⁾ 7,911 9,619 13,934 Ton
Recycling of products⁵⁾ 82,867 92,195 95,856 Ton
Large appliance⁶⁾ 69,905 79,999 83,344 Ton
IT equipment⁶⁾ 7,217 5,831 5,008 Ton
Medium appliance⁶⁾ 2,597 2,421 3,464 Ton
Small appliance⁶⁾ 3,148 3,944 4,041 Ton
Conversion into resources⁵⁾ 71,528 79,579 82,739 Ton
Scrap metal 33,597 37,379 38,863 Ton
Nonferrous metal 12,456 13,858 14,408 Ton
Synthetic resin 20,286 22,569 23,466 Ton
Glass 1,482 1,648 1,714 Ton
Other 3,707 4,125 4,289 Ton
Consumption of recycled plastics 30,849 35,268 39,226 Ton
Adoption of recycled plastics 5 6 6.7 %
Operational Impact
Environment and safety Investment 9,334 9,513 9,167 KRW 100 million
Violation of environmental regulations 0 0 0 No. of violations
Footnote:
1) Product development projects rated Good Eco-Product or above 5) Scope of data collection: South Korea
2) Scope of data collection: Seven major product categories (mobile 6) Reclassified according to “Act for Resource Recycling of Electrical/
phones, notebooks, TVs, monitors, refrigerators, washers, and air Electronic Products and Automobiles” in South Korea
conditioners)
3) Accumulated since 2009
4) Average annual energy consumption against the average annual energy
consumption in 2008
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 128
Climate Stewardship
Use of renewable energy 181.77 228.54 1,356.47 GWh
GHG emissions generated in the workplace 1⁾ 11,600 13,585 15,173 1,000tCO2e
Scope 1 2⁾ 2,554 3,668 4,855 1,000tCO2e
Scope 2 3) 9,046 9,917 10,318 1,000tCO2e
CO2 9,909 10,889 11,439 1,000tCO2e
CH4 2 2 2 1,000tCO2e
N2 O 264 343 322 1,000tCO2e
HFCs 218 327 505 1,000tCO2e
PFCs 1,115 1,847 2,737 1,000tCO2e
SF6 92 177 168 1,000tCO2e
GHG emissions intensity 4) 3.0 3.3 3.6 tCO2e/KRW 100 million
Scope 3 emissions
Emissions from suppliers 5) 6,326 7,038 7,952 1,000tCO2e
Emissions from logistics 7,562 7,625 7,846 1,000tCO2e
Emissions from business trips 6) 87 119 110 1,000tCO2e
Energy consumption in the workplace 21,073 23,419 26,028 GWh
Power 16,587 18,450 20,558 GWh
Others 4,486 4,970 5,470 GWh
Energy consumption intensity 4⁾ 5 5.7 6.2 MWh/KRW 100 million
Pollutant Management
Emission of air pollutants 2,062 1,311 1,060 Ton
NOx 635 685 616 Ton
SOx 196 69 55 Ton
Dust 1,197 509 281 Ton
NH3 27 38 95 Ton
HF 7 10 13 Ton
VOC emissions 2) 131 166 211 Ton
Discharge of water pollutants 3,055 3,190 3,797 Ton
COD 1,639 1,771 2,407 Ton
BOD 520 521 392 Ton
SS 598 497 649 Ton
F 253 386 337 Ton
Heavy metal 45 15 12 Ton
Consumption of ozone-depleting 5 3 2 Ton
substances (CFC-eq)3)
Workplace Chemicals Management 4⁾ Consumption of chemicals 3) 321 364 417 1,000 ton
Leakage of major harmful 0 0 0 No. of occasions
substances
Footnote:
1) Based on the calculation criteria adopted by the country of respective worksites
2) Correction of the calculation error in 2017 emissions
3) Scope of Data collection: Worksites in South Korea
4) Scope of data collection: changed the data from 2016 and 2017 due to reclassified
according to PRTR (Pollutant Release and Transfer Registers) as of 2018
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 130
Investing in Our Employees
APPENDIX
Inherent limitations
Non-financial performance information is subject to more inherent limitations than financial information, given the characteristics of the
subject matter and the methods used for determining such information. Qualitative interpretations of relevance, materiality and the accuracy
of data are subject to individual assumptions and judgments.
A limited assurance engagement is less in scope than a reasonable assurance engagement under ISAE 3000. Consequently, the nature, timing
and extent of procedures for gathering sufficient, appropriate evidence are deliberately limited relative to a reasonable assurance engagement.
In particular:
‧ We did not attend any stakeholder-engaged activities. Therefore our conclusion is based on our discussions with the management and
the staff of the Company, and our review of sampled documents provided to us by the Company.
‧ The scope of our work was restricted to 2018 performance only, as set out in the scope and subject matter section above. Information
related to the year ended December 31, 2017 and earlier periods have not been subject to assurance by us.
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 132
Conclusion
Based on the results of the assurance work performed, our conclusion is as follows
Nothing has come to our attention that causes us to believe that the Sustainability Data for the year ended December 31, 2018 is not fairly
stated, in all material respects, in accordance with the Company’s internal reporting principles set out on GRI Standard with Core option.
Recommendations
As a result of our work, we have provided the following recommendations to the management.
‧ The value system of Samsung Electronics “Management Philosophy, Core Values, and Business Principles” expresses the company’s
willingness to fulfill its social responsibility. To ensure the effective implementation of this management philosophy, the Governance
Committee within the company’s board of directors has been in operation since 2017. It is expected that the committee will act as the
top decision making body in relation to CSR in order to protect the rights and interests of both the shareholders as well as various
stakeholders, and play a pivotal role in ensuring transparent communication. This can increase the credibility of Samsung Electronics’
sustainable growth from stakeholders.
‧ Samsung Electronics discloses the outcome of its sustainable management into six different categories, also known as the six sus-
tainability pillars, which comprises of Product Stewardship, Commitment to the Environment in Our Operation, Enabling People,
Technology for Good, Investing in Our Employees and Sustainable Supply Chain. In the future, it is recommended that the more mate-
rialized company-wide sustainability management strategy is reflected in the direction of the six pillars. Moreover, inclusion of Sam-
sung Electronics’ distinctive strategic approach and results of the analysis of the potential risks identified during the process, which is
not a declarative or rhetorical approach will enhance the sincerity of the company’s sustainability management promotion from the
stakeholders.
‧ Samsung Electronics is a global company that builds networks and conducts business around the world. The report includes the goals,
achievement and activities of some overseas subsidiaries. It is recommended that the scope of collection and reporting of the rele-
vant data to be expanded to all global operation sites in order to help stakeholders understand the overall level of the company’s sus-
tainability. In addition, efforts should be made to enhance transparency in the information collected on sustainability management.
Through this process, Samsung Electronics can communicate to the stakeholders more transparently about the company’s systematic
and exemplary management of sustainability issue.
Samil PricewaterhouseCoopers
Jae-Heum Park, Partner
Seoul, Korea
June 14, 2019
Samsung Electronics Sustainability Report 2019 133
Introduction
Korean Foundation for Quality (hereinafter “KFQ”) has been engaged by Samsung Electronics Co., Ltd. (hereinafter the “Company”) to inde-
pendently verify its 2018 Greenhouse Gas Emission Report of domestic corporations and 28 overseas subsidiaries.
It is the responsibility of the Company to compile the Greenhouse Gas Emission Report according to the “Guidelines for GHG emission report-
ing and certification of GHG emission trading scheme (Notification No. 2018-78 of Ministry of Trade, Industry and Energy)”, “GHG Protocol
Scope 2 Guidance” and “ISO 14064-1:2006” and KFQ has responsibility to conduct verification based on “ISO 14064-3:2006” to provide verifica-
tion opinion on compliance of the Report against verification criteria.
Verification Scope
In this verification, domestic corporations and 28 overseas subsidiaries under operational control of Samsung Electronics Co., Ltd., and
reported emission is including Scope 1 and Scope 2 emission.
Verification Opinion
Through the verification process according to the “ISO 14064-3:2006”, KFQ could obtain reasonable basis to express following conclusion on
the Greenhouse Gas Emission Report.
1) 2018 Samsung Electronics Co., Ltd., Greenhouse Gas Emission Report was prepared against “Samsung Electronics Co., Ltd., Green-
house Gas Inventory Guideline” developed based on the “Guidelines for GHG emission reporting and certification of GHG emission
trading scheme”, “GHG Protocol Scope 2 Guidance” and “ISO 14064-1:2006”.
2) As a result of materiality assessment on 2018 domestic Greenhouse Gas Emission, material discrepancy is less than the criteria of
2.0% for the organization which emits more than 5,000,000 tCO₂eq/year in accordance with the requirements of the “Guidelines of
verification for Greenhouse gas emission trading scheme”.
3) For the 28 overseas subsidiaries, document review was conducted for entire 28 subsidiaries and sampling on-site assessment was
conducted for 4 subsidiaries, 2 in the US, 1 in Thailand and 1 in Malaysia, as well as Company self-assessment. The result of material
discrepancy is less than 2.0%.
4) As reported Greenhouse Gas Emission purchased electricity, process emission by fluorinated gas use and LNG consumption take
more than 99% of total emission. Activity data of these emission sources were checked through the objective evidence provided by
supplier therefore KFQ could confirm that these activity data is valid itself.
5) However, verification opinion regarding to the relevant error caused by emission reduction efficiency of emission reduction tech-
nologies in process emission which affect Greenhouse Gas Emission was not considered. It is because of the efficiency has to
be assessed and confirmed by the Government or related specialized agency but it was developed by Company according to
the Company own methodology.
For the overseas subsidiaries, each national net caloric value and electricity emission factor were preferentially used but net caloric
value and electricity emission factor were adopted from IPCC Guidelines or Korean Energy Law Enforcement Regulation and IEA sta-
tistics respectively in case of nonexistence of it. Therefore, it is necessary to re-calculate Greenhouse Gas Emission in any change of
these parameters or factors.
6) Except unconsidered emission source in the “Samsung Electronics Co., Ltd., Greenhouse Gas Inventory Guideline”, material error,
omission or insignificant issues was not found in 2018 Samsung Electronics Co., Ltd., Greenhouse Gas Emission Report.
2018 Samsung Electronics Co., Ltd., Greenhouse Gas Emission unit: kiloton CO₂ eq
TCFD Index
From 2019, Samsung Electronics starts to disclose climate-related financial information according to TCFD (Task Force on Climate-related
Financial Disclosures) recommendations. We strongly believe engaging in TCFD would enhance our responsibility towards investors,
lenders, insurers, and other stakeholders.
· Governance : Disclose the organization’s governance around climate-related risks and opportunities.
a) Describe the board’s oversight of 2018 CDP Climate Change The board oversees climate change-related issues through its
climate-related risks and opportunities. survey response: CC1.1a, CC1.1b regular meetings. Global EHS Center under CFO and Global
CS Center are responsible for identifying and reporting cli-
mate change-related report agendas. Examples of quarterly
agenda include the status of eco-friendly product certifica-
tion, greenhouse gas emissions and energy usage.
b) Describe management’s role in assessing 2018 CDP Climate Change Our Global Environment, Health and Safety (EHS) Center, under
and managing climate-related risks and survey response: CC1.2a the direct leadership of the CEO, actively manages EHS includ-
opportunities. ing climate change.
The CFO serves as the Chief Risk Officer (CRO) and operates
the Risk Council with the heads of various functions includ-
ing Global Environment, Health & Safety Center, Public Affairs,
etc. CFO also leads Environment and Safety committee 3 times
a year, deliberated on green management and GHG issues.
· Strategy : Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial
planning where such information is material.
a) Describe the climate-related risks and 2018 CDP Climate Change In short-term, pricing of GHG emissions (carbon tax and/or
opportunities the organization has survey response: GHG emissions trading scheme), severity of extreme weather
identified over the short, medium, CC2.2c, CC2.3a, CC2.4a, CC3.1c events and changing customer behavior are identified as
and long term. potential risks whereas new products or services development
via R&D and innovation is considered an opportunity. In mid-
term, shift in consumer preferences and participation in carbon
market are identified as opportunities.
Lastly, as set out in our Eco-Management 2020 strategy, effec-
tive mitigation of GHG emissions and strategic approach for
emissions trading scheme are considered the salient issues
in long term.
b) Describe the impact of climate-related risks 2018 CDP Climate Change Within the business, the climate-related risks and opportuni-
and opportunities on the organization’s survey response: CC2.5, CC2.6 ties have impacted on our products and services, supply chain,
businesses, strategy, and financial planning. adaptation and mitigation activities, investment in R&D, and
other operation. In products and services, for instance, we have
been accelerating development of energy-efficient products.
Within our seven product categories of refrigerator, wash-
ing machine, TV, monitor, laptop, and mobile phone, energy
efficient products now account for about half of total revenues
in 2017.
c) Describe the resilience of the organization’s 2018 CDP Climate Change Samsung Electronics established a strategy to effectively
strategy, taking into consideration different survey response: CC3.1c, CC3.1d reduce GHG emission while considering 2⁰C scenario. We are
climate-related scenarios, including a 2°C reviewing the company-wise strategy by using RCP 2.6 sce-
or lower scenario. nario and Energy Technology Perspectives (ETP) 2016 data of
International Energy Agency (IEA). In order to reduce Scope 3
emissions, we will continuously cooperate with our suppliers.
Samsung Electronics Sustainability Report 2019 135
· Risk Management : Disclose how the organization identifies, assesses, and manages climate-related risks.
a) Describe the organization’s processes for 2018 CDP Climate Change The CFO serves as the Chief Risk Officer (CRO) and operates the
identifying and assessing climate-related survey response: CC1.2a, CC2.2b Risk Council in collaboration with the heads of various func-
risks. tions including Global Environment and Health and Safety Cen-
ter. The CFO leads Environment and Safety Committee (three
times a year) to review and monitor any important climate-re-
lated risks. For urgent issues on climate change, such risks are
reported to CEO and the responsible executives. We also have
bi-monthly climate change report to share any important cli-
mate change issues with relevant executives and personnel.
b) Describe the organization’s processes for 2018 CDP Climate Change Samsung Electronics regularly monitors/reviews risks iden-
managing climate-related risks. survey response: CC2.2d tified and global offices are required to report to Global EHS
center about EHS, energy, GHG, renewable-related issues.
These issues are checked via regular conference call meetings.
Risks are reported to Environment and Safety Committee or
GHG Council and decisions are made/passed on to the related
departments. The production site’s Infra or EHS departments
will carry out risk management procedures according to the
council’s decision.
c) Describe how processes for identifying, 2018 CDP Climate Change Climate-related risks are integrated into multi-disciplinary
assessing, and managing climate-related survey response: CC2.2 company-wide risk identification, assessment, and manage-
risks are integrated into the organization’s ment processes.
overall risk management.
· Metrics and Targets : Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such
information is material.
a) Disclose the metrics used by the 2018 CDP Climate Change To measure and manage climate change risk and opportunities,
organization to assess climate related survey response CC11.3 we used a number of indicators including GHG emissions, inten-
risks and opportunities in line with its sity-based GHG emissions (normalized by sales), energy con-
strategy and risk management process. sumption and saving.
Moreover, our Global EHS Center, which makes decisions on
climate change issues, uses internal carbon prices as decision
indicators for investment in energy facilities, energy generation
projects, settlement of in-house carbon credits, and renewable
energy project.
For instance, using internal carbon price led to a shorter pay-
back period and corresponding investment decision when
reviewing economics of solar PV project in our Suwon operation
site.
b) Disclose Scope 1, Scope 2, and, if 2019 Sustainability Report: Scope 1: 4,855 Kton CO₂e
appropriate, Scope 3 greenhouse gas page. 128 Scope 2: 10,318 Kton CO₂e
(GHG) emissions, and the related risks. Scope 31): 15,908 Kton CO₂e
c) Describe the targets used by the 2018 CDP climate Change We have set intensity-based GHG emissions reduction target –
organization to manage climate-related survey response : C4 70% reduction by 2020 to 1.55 tCO₂e/KRW 100 million from 5.17
risks and opportunities and performance tCO₂e/KRW 100 million in 2008. Our GHG emissions intensity in
against targets. 2018 was 3.59 tCO₂e/KRW 100 million, 9.45% higher than 2017.
Footnote:
1)Scope 3 includes emission from suppliers, logistics, and business trips
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 136
General Disclosures
Organizational 102-1 Name of the organization ● 1
Profile 102-2 Activities, brands, products, and services ○ Refer to the company
website
102-3 Location of headquarters ● 1
102-4 Location of operations ● 4-5
102-5 Ownership and legal form ○ Refer to the business
report
102-6 Markets served ● 4-5
102-7 Scale of the organization ● 121, 123
102-8 Information on employees and other workers ● 123-124
102-9 Supply chain ● 4-5, 90-92
102-10 Significant changes to the organization and its supply chain ○ Refer to the business
report
102-11 Precautionary Principle or approach ● 111-112
102-12 External initiatives ● 76
102-13 Membership of associations ● 104
Strategy 102-14 Statement from senior decision-maker ● 2
102-15 Key impacts, risks, and opportunities ● 102-103
Ethics and 102-16 Values, principles, standards, and norms of behavior ○ Refer to the company
Integrity website
102-17 Mechanisms for advice and concerns about ethics ● 115
Governance 102-18 Governance structure ● 108-110
102-19 Delegating authority ○
102-20 Executive-level responsibility for economic, environmental, and social topics ● 108-110
102-21 Consulting stakeholders on economic, environmental, and social topics ● 104
102-22 Composition of the highest governance body and its committees ● 108-110
102-23 Chair of the highest governance body ● 108
102-24 Nominating and selecting the highest governance body ● 108-110
102-25 Conflicts of interest ○
102-26 Role of highest governance body in setting purpose, values, and strategy ● 108-110
102-27 Collective knowledge of highest governance body ● 108-110
102-28 Evaluating the highest governance body’s performance ○
102-29 Identifying and managing economic, environmental, and social impacts ○
102-30 Effectiveness of risk management processes ● 111-112
102-31 Review of economic, environmental, and social topics ● 108-110
102-32 Highest governance body’s role in sustainability reporting ● 108-110
102-33 Communicating critical concerns ● 108-110
102-34 Nature and total number of critical concerns ● 108-110
102-35 Remuneration policies ○
102-36 Process for determining remuneration ○
102-37 Stakeholders’ involvement in remuneration ○
102-38 Annual total compensation ratio ○
102-39 Percentage increase in annual total compensation ratio ○
Stakeholder 102-40 List of stakeholder groups ● 104
engagement 102-41 Collective bargaining agreements ● 77
102-42 Identifying and selecting stakeholders ● 102-103
102-43 Approach to stakeholder engagement ● 104
102-44 Key topics and concerns raised ● 104
Reporting 102-45 Entities included in the consolidated financial statements ○ Refer to the business
Practice report
102-46 Defining report content and topic Boundaries ● 102-103
102-47 List of material topics ● 103
102-48 Restatements of information ● 121-129
Samsung Electronics Sustainability Report 2019 137
General Disclosures
Reporting 102-49 Changes in reporting ● No signficant changes
Practice during reporting period
102-50 Reporting period ● 1
102-51 Date of most recent report ● 1
102-52 Reporting cycle ● 1
102-53 Contact point for questions regarding the report ● 1
102-54 Claims of reporting in accordance with the GRI Standards ● 1
102-55 GRI content index ● 136-139
102-56 External assurance ● 131-132
Management Approach
103-1 Explanation of the material topic and its Boundary ● 102-103
103-2 The management approach and its components ○
103-3 Evaluation of the management approach ○
Economic
Economic 201 Management Approach ● 105
Performance 201-1 Direct economic value generated and distributed ● 121
201-2 Financial implications and other risks and opportunities due to climate change ● 134-135
201-3 Defined benefit plan obligations and other retirement plans ○ Refer to the business
report
201-4 Financial assistance received from government ○
Market Presence 202 Management Approach ○
202-1 Ratios of standard entry level wage by gender compared to local minimum wage ○
202-2 Proportion of senior management hired from the local community ○
Indirect Economic 203 Management Approach ● 48-49
Impacts 203-1 Infrastructure investments and services supported ● 50-57
203-2 Significant indirect economic impacts ● 105
Procurement 204 Management Approach ● 86-87
Practices 204-1 Proportion of spending on local suppliers ○
Anti-Corruption 205 Management Approach ● 113-115
205-1 Operations assessed for risks related to corruption ● 113-115
205-2 Communication and training about anti-corruption policies and procedures ● 113-115
205-3 Confirmed incidents of corruption and actions taken ● 113-115
Anti-Competitive 206 Management Approach ● 113-115
Behavior 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices ○
Environmental
Materials 301 Management Approach ● 22-23
301-1 Materials used by weight or volume ○
301-2 Recycled input materials used ● 22, 33, 127
301-3 Reclaimed products and their packaging materials ● 22
Energy 302 Management Approach ● 41, 128
302-1 Energy consumption within the organization ● 41-128
302-2 Energy consumption outside of the organization ○
302-3 Energy intensity ● 128
302-4 Reduction of energy consumption ● 41
302-5 Reductions in energy requirements of products and services ● 127
Water 303 Management Approach ● 34-35
303-1 Water withdrawal by source ● 43, 128
303-2 Water sources significantly affected by withdrawal of water ● 42
303-3 Water recycled and reused ● 43, 128
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 138
Environmental
Biodiversity 304 Management Approach ● 34-35
304-1 Operational sites owned, leased, managed in, or adjacent to, protected ● 46
areas and areas of high biodiversity value outside protected areas
304-2 Significant impacts of activities, products, and services on biodiversity ● 46
304-3 Habitats protected or restored ● 46
304-4 IUCN Red List species and national conservation list species with habitats in ● 46
areas affected by operations
Emissions 305 Management Approach ● 34-35
305-1 Direct (Scope 1) GHG emissions ● 128
305-2 Energy indirect (Scope 2) GHG emissions ● 128
305-3 Other indirect (Scope 3) GHG emissions ● 128
305-4 GHG emissions intensity ● 128
305-5 Reduction of GHG emissions ● 40
305-6 Emissions of ozone-depleting substances (ODS) ● 129
305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions ● 129
Effluents and 306 Management Approach ● 34-35
Waste 306-1 Water discharge by quality and destination ● 128
306-2 Waste by type and disposal method ● 129
306-3 Significant spills ● No significant spills
during reporting period
Social
Employment 401 Management Approach ● 72-73
401-1 New employee hires and employee turnover ● 123
401-2 Benefits provided to full-time employees that are not provided to ○
temporary or part-time employees
401-3 Parental leave ● 123
Labor/ 402 Management Approach ● 76
Management 402-1 Minimum notice periods regarding operational changes ○
Relations
Occupational 403 Management Approach ● 81
Health and Safety 403-1 Workers representation in formal joint management–worker health and ● 77
safety committees
403-2 Types of injury and rates of injury, occupational diseases, lost days, and ● 125
absenteeism, and number of work-related fatalities
403-3 Workers with high incidence or high risk of diseases related to their occupation ○
403-4 Health and safety topics covered in formal agreements with trade unions ○
Training and 404 Management Approach ● 72-73
Education 404-1 Average hours of training per year per employee ● 124
404-2 Programs for upgrading employee skills and transition assistance programs ● 80
404-3 Percentage of employees receiving regular performance and career ● 123
development reviews
Samsung Electronics Sustainability Report 2019 139
Social
Diversity 405 Management Approach ● 79
and Equal 405-1 Diversity of governance bodies and employees ● 124
Opportunity 405-2 Ratio of basic salary and remuneration of women to men ● We do not discriminate on
any basis in all processes
including promotion,
compensation and
disciplinary measures
Non- 406 Management Approach ● 72-73
Discrimination 406-1 Incidents of discrimination and corrective actions taken ● 77
Freedom of 407 Management Approach ○
Association and 407-1 Operations and suppliers in which the right to freedom of association and ○
Collective Bargaining collective bargaining may be at risk
Child Labor 408 Management Approach ● 72-73
408-1 Operations and suppliers at significant risk for incidents of child labor ● 78
Forced or 409 Management Approach ● 72-73
Compulsory Labor 409-1 Operations and suppliers at significant risk for incidents of forced or ● 78
compulsory labor
Security Practices 410 Management Approach ○
410-1 Security personnel trained in human rights policies or procedures ○
Rights of 411 Management Approach ○
Indigenous Peoples 411-1 Incidents of violations involving rights of indigenous peoples ○
Human Rights 412 Management Approach ● 72-73
Assessment 412-1 Operations that have been subject to human rights reviews or impact assessments ● 74, 78
412-2 Employee training on human rights policies or procedures ● 74
412-3 Significant investment agreements and contracts that include human ○
rights clauses or that underwent human rights screening
Local 413 Management Approach ● 48-49
Communities 413-1 Operations with local community engagement, impact assessments, and ● 48-57
development programs
413-2 Operations with significant actual and potential negative impacts on local ○
communities
Supplier Social 414 Management Approach ● 86-87
Assessment 414-1 New suppliers that were screened using social criteria ● 125
414-2 Negative social impacts in the supply chain and actions taken ● 126
Public Policy 415 Management Approach ● 113-115
415-1 Political contributions ● Code of Conduct
prohibits contribution to
political parties
Customer Health 416 Management Approach ○
and Safety 416-1 Assessment of the health and safety impacts of product and service categories ○
416-2 Incidents of non-compliance concerning the health and safety impacts of ○ Refer to the business
products and services report
Marketing and 417 Management Approach ● 29
Labeling 417-1 Requirements for product and service information and labeling ● 29
417-2 Incidents of non-compliance concerning product and service information ○
and labeling
417-3 Incidents of non-compliance concerning marketing communications ○ Refer to the business
report
Customer Privacy 418 Management Approach ● 66-67
418-1 Substantiated complaints concerning breaches of customer privacy and ● No violations during
losses of customer data reporting period
Socioeconomic 419 Management Approach ● 113-115
Compliance 419-1 Non-compliance with laws and regulations in the social and economic area ○ Refer to the business
report
Overview Highlight Sustainability Pillars Sustainability Foundation Appendix 140
Samsung Electronics Sustainability Report 2019 141
A SUSTAINABLE FUTURE
Samsung Electronics
Sustainability Report 2019