In order to fulfill the demand for quality manufacturing services, CDMOs like Samsung Biologics have been able to develop better, more sustainable business methods. Many high-profile customers like Moderna and GSK have kept Samsung Biologics busy, but the company has also realized that by integrating sustainable materials and practices, it can increase the quality of its work. After all, work accomplished with a low greenhouse gas emission and small carbon footprint has high value. An all-encompassing strategy has proven to be the most effective for this CDMO, which recently had a good third quarter in 2021.
In its annual report, Samsung Biologics declared that the company planned to operate in an ecologically sustainable manner. An energy management ISO accreditation was recently obtained by the firm. In a statement on its website, the company pledged, “Samsung Biologics will do its best to prevent environmental accidents and lead a sustainable future by reducing environmental pollution and prioritizing environmental values.”
Furthermore, Samsung Biologics displayed its commitment through the release of its first annual ESG report in the summer of 2021. John Rim, CEO of Samsung Biologics, said, “The publication of our annual sustainability report showcases our aims to accelerate innovation and contribute to building a healthier future for all stakeholders. As we have always been since our founding in 2011, Samsung Biologics will continue to carry out its social accountability – creating a safer and healthier culture, reducing its environmental footprint, and increasing reporting transparency on ESG initiatives.”
These efforts to increase sustainability apply to the new fourth plant in Songdo as well. The plant has several environmentally-friendly features, including access to a renewable energy system, a reusable water treatment system, and reduction of NOx emission by installing an Ultra Low-NOx Burner.
Recognition from Dow-Jones
In November, Samsung Biologics was added to the Dow Jones Sustainability World Index (DJSI) along with a handful of other Korean companies. On average, companies in the DJSI had a score of 76.5, while the companies added, including Samsung Biologics, showed a marked improvement in sustainability practices. Being added to this list was no small feat: out of 2,544 companies that were evaluated, only 12.7 percent, or 322 companies, made it into the index.
Samsung Biologics formed an Environmental, Social, and Governance Committee (ESG Committee) in February 2021 to develop and oversee its management policies.
The committee is composed of four independent directors that have competence in the domains of management, economics, biotechnology, law, and information and communication technologies.
Samsung Biologics’ ESG report focused on the company’s environmental trends and practices from January 2020 to December 2020. Investors are often looking for organizations that share their own set of values, which is particularly important in an era when experts say that corporations do not always adhere to the most environmentally friendly methods.
Corporate social responsibility (CSR)-conscious businesses that monitor and reduce their energy consumption, waste, pollution, reliance on natural resources, as well as avoid inhumane treatment of animals, are the best investments for young investors who may not feel comfortable associating with a company which simply ignores the climate crisis.
Participation in the Carbon Disclosure Project
Samsung Biologics took its initiatives to participate in ESG on a broader scale. The company joined an international focus meant to keep the world’s temperature from rising by 1.5 degrees celsius. The Korean Financial Supervisory Service, the country’s primary financial regulatory agency, initiated the Frontier 1.5D program. Other corporations and educational institutions, including the KB Financial Group, SK Innovation, CJ CheilJedang, and the British Embassy in Korea, have joined the project.
“We are proud and honored to be a part of the vital Frontier 1.5D initiative to ultimately redefine energy efficiency and reusable energy through the reduction of GHG emissions,” said John Rim, CEO of Samsung Biologics. “Alongside our core mission to bring a healthier and sustainable future for humanity, Samsung Biologics will support the development of mid to long-term climate change strategies and action plans as part of our decarbonization efforts to achieve a net-zero future.”
Through its Carbon Disclosure Project (CDP) effort with Science-Based Targets (SBT), Samsung Biologics has pledged to rigorously monitor, identify, and share data for each of its biopharmaceutical production sites. These actions will assist both the company and the initiative in identifying risks and opportunities for improvement in accordance with climate change standards, as well as the financial impact that implementing new strategies would have on the company’s operations and financial performance in general.