Global Harmony with people, society

Global Harmony with people, society
Samsung Electronics 2013 Sustainability Report
Sustainability Report
2013
Global
Harmony
with people,
society
& environment
추가 정보 및 관련 홈페이지
삼성전자 대표 홈페이지 http://www.samsung.com/sec
Contents
지속가능경영보고서http://www.samsung.com/sec/
aboutsamsung/Sustainability/
sustainabilityreports.html
Sustainability Overview
IR 홈페이지http://www.samsung.com/sec/
02 CEO Message
aboutsamsung/ir/newsMain.do
06 Corporate Governance
삼성 녹색경영http://www.samsung.com/sec/
08 Management Results
aboutsamsung/Sustainability/
10 Market Shares by Business Area
12 Global Network
environment.html
삼성 반도체http://www.samsung.com/sec/business/
14 Continuous Growth
semiconductor/
16 Organization of Business Areas
프린터 재활용 프로그램 http://www.samsung.com/printer/star
17 Investments & Patents
삼성 공식 블로그
http://www.samsungtomorrow.com
20 Stakeholder Engagement
삼성 페이스북http://www.facebook.com/
23 Materiality Matrix
samsungtomorrow
삼성 트위터
http://www.twitter.com/
Material
Issue
26 Creating Shared [email protected]
and Giving Back with Samsung Products
34 Social Responsibility: Making Contributions around the Globe
지속가능경영보고서
담당
42 Shared
Growth
경영지원실
글로벌협력팀
46 Human
Resources
서울시
서초구 서초대로 74길 11
48 Eco
Product
Tel•82-2-2255-7337
52 Water
Management
Email•[email protected]
54 Supplier
CSR
56 Health & Safety
Facts & Figures
62 Creation of Economic Value
68 Transparent Management
70 Talent Management
75 Social Contributions
76 Shared Growth with Suppliers
78 Green Management
Environmental Report
env02 Green Management Framework
env12 삼성전자는
Climate Change
Mitigation
도전과
혁신을 멈추지 않는 지속가능경영으로
env24 Eco-Products
글로벌 IT기업의
소명을 다하고
env38 신뢰받는
Green Operation
Sites
env49 Green Communication
더 새로운 미래를 향한 창조와 도약의 장을 열어 갑니다.
Appendices
90 An Independent Assurance Report
92 GRI Index
Inspire the World
Create the Future!
Samsung Electronics aims to create
a new future that positively impacts
the entire global community.
CEO
Message
Samsung Electronics aspires to further secure its position as
a global electronics leader through creative business strategies that inspire future innovation and create opportunity for
people around the world.
Dear Stakeholders,
Under our philosophy of ‘People First,’ Samsung continued to hire
It has been twenty years since Samsung Electronics executed a series
great people around the globe who are the best and brightest in their
of turnaround strategies that have fundamentally changed the way we
field. Samsung took a variety of measures to make itself a world-class
manage our business.
workplace. Samsung Electronics took great care to develop and foster
During the past two decades, Samsung Electronics has emerged as a
a workplace environment that assured our workers’ health and safety.
leader in the IT industry, not only in terms of global sales but also in sus-
One highlight includes a program through hospitals, through which we
tainability. This Samsung Electronics Sustainability Report for 2013 pro-
offered various physical and mental health services to our employees.
vides a comprehensive look at our efforts in environmental and social
These services include onsite stop-smoking clinics, counseling centers
responsibility, from stories on our past successes to a focused vision for
and fitness facilities.
our future.
Samsung is also committed to using our resources to help communities
The business environment in 2012 was tough for us just as it was for
in need. One of our most exemplary social contributions, the Samsung
many others. However, Samsung has been able to successfully navigate
Hope for Children program, benefits around 200,000 children and young
the challenges of 2012’s global IT marketplace and economy. This past
adults in the developing world in both education and healthcare and
year saw Samsung Electronics record its largest annual growth and oper-
we will continue to increase our role in creating better lives for children
ating profits in its corporate history, further strengthening our leadership
around the world.
position in the global electronics industry. In 2012, external recognition
In 2012, in order to ensure the responsible management of our supply
of our company’s value also continued to rise, as Samsung Electronics
chain, Samsung Electronics intensified the systematic scrutiny of our sup-
ranked 20th on the list of Fortune Global 500 Companies and 9th in In-
pliers in terms of labor conditions, human rights, and health and safety.
terbrand’s Best Global Brands Report. The corporate value of Samsung
In doing so, we identified key issues with which to measure our suppli-
Electronics skyrocketed all around the globe.
ers’ compliance – some of which we took immediate measures to ad-
Above all else, these successes are due to the hard work and expertise
dress.
of Samsung Electronics’ employees, whose collaborative efforts enhance
At Samsung Electronics, we view the growing imperative for eco-friend-
our company’s competitiveness and accelerate innovation. There can
liness as an opportunity for responsible business leadership. In 2009, we
also be no doubt that our company’s achievements in 2012 would have
announced two key sustainability strategies in our 2013 Eco-Manage-
been impossible without the keen interest and full support of all of our
ment Plan, namely reduction in GHG emissions and increased eco-prod-
stakeholders like you.
uct launches. In 2012, Samsung Electronics exceeded its goals in these
Let me take this opportunity, then, to extend my deepest gratitude to all
two strategies, whose work consisted of activities in three major areas:
of you for your great contributions to our company’s accomplishments in
Green Operations, Green Products, and Green Communication.
2012. I can personally assure you that Samsung Electronics will regard our
Through the release of this report, Samsung Electronics hopes to en-
success as an asset that positions us for future growth and realize our Vi-
hance communication with its stakeholders about the company’s contri-
sion 2020 plan and become a leader in corporate citizenship.
butions to the economy, society and the environment. We’d also like to
To that end, let me share with you some highlights of Samsung’s sustain-
engage in open discussions with our stakeholders about the challenges
ability efforts in 2012, specifically in terms of our contributions to both
we face while seeking ideas to address them. We firmly believe that a
society and the environment.
company can continue to grow only when it maintains its stakeholders’
full trust and collaboration.
02
2013 Sustainability Report
In order to create value for our stakeholders – including customers, share-
Oh-Hyun Kwon
holders, investors, employees, suppliers and local communities – Samsung
Vice Chairman and CEO
Electronics has expanded our commitments to social and environmental re-
Samsung Electronics Co., Ltd.
sponsibility, embedding social contributions and sustainable practices into
our core business. We are always developing new goals to further improve
upon our corporate citizenship and, in turn, helping to create a healthier
global community.
I look forward to your continued trust and support in these endeavors.
Thank you.
Samsung Electronics
03
A Global Leader in the IT Industry Committed to Making the World Smarter
Since its founding in Suwon, Korea in 1969, Samsung Electronics has grown into a global information technology leader, managing more than 200 subsidiaries around the world.
The company’s offerings include home appliances such as TVs, monitors, printers, refrigerators, and washing machines as well as key mobile telecommunications products like smartphones and tablet PCs. Samsung also continues to be a trusted provider of key electronic
components like DRAM and non-memory semiconductors.
Samsung pledges to create and deliver quality products and services that enhance convenience and foster smarter lifestyles for its customers around the world. Samsung is dedicated
to improving the global community through its constant pursuit of groundbreaking innovations and value creation.
Making
the Smart World
Sec. 01
Sustainability Overview
06 Corporate Governance
08 Management Results
10 Market Shares by Business Area
12 Global Network
14 Continuous Growth
16 Organization of Business Areas
17 Investments & Patents
20 Stakeholder Engagement
23 Materiality Matrix
Sustainability
Overview
Responsible
and Transparent
Leadership
Corporate Governance
Throughout 2012, Samsung Electronics continued to advance its practice of sustainable management
through responsible corporate governance. In addition to compliance with national and international
law, Samsung also employs a set of ethical standards and values that guide its decision making processes and work procedures. Through a corporate governance structure that centers on board of director engagement, the company works to ensure transparent, responsible business management
across all operations. Each policy and decision enacted by the board of directors seeks to maximize
corporate value and enhance shareholder rights and interests.Specifically, the Samsung board of directors is responsible for the execution of all matters as mandated by the Korean Commerce Act and
the Samsung Electronics Articles of Incorporation, including those delegated by the company’s general shareholders’ meetings. The board also makes important decisions on the company’s management policies and oversees executive work performance.
pany, Samsung has established committees under the BOD in
The BOD is composed of four executive directors and a five-
accordance with pertinent laws. The BOD refers certain mat-
person independent director majority, an arrangement de-
ters to the committees to be reviewed by members with in-
signed to both guarantee the board’s independence and
depth experience and extensive expertise in the related fields.
establish a transparent decision-making process with inputs
At present, six committees are in operation: Management
from a broad spectrum of outside experts. In accordance with
Committee, Audit Committee, Independent Director Recom-
the Articles of Incorporation, the Independent Directors Rec-
mendation Committee, Related Party Transactions Commit-
ommendation Committee initially selects candidates from
tee, Compensation Committee, and the newly-formed Corpo-
among a pool of professional experts with in-depth knowl-
rate Social Responsibility (CSR) Committee.
edge and experience in a variety of areas including business
The Related Party Transactions Committee helps boost the
management, economy, accounting, law, and technology.
transparency of corporate management through the Fair
The independent directors meet separately from the BOD’s
Trade Autonomous Compliance System. The Audit Commit-
executive directors in order to promote a free exchange of
tee, comprised of three independent directors, supervises and
ideas on all aspects of the company’s management. All direc-
supports management through a process of checks and bal-
tors are prohibited from engaging in business activities within
ances to maximize corporate value.
the same industry without the approval of the board. This ar-
* For further details about the committees and meeting agenda items,
rangement is to prevent conflicts of interest as specified in the
please visit DART (Data Analysis, Retrieval and Transfer System) at
Korean Commerce Act and the Samsung Electronics Articles
http://dart.fss.or.kr
in which many experts from a variety of fields take part. The
Samsung has chartered the CSR Committee within its BOD in
broaden Samsung’s social contribution programs through col-
order to ensure legal compliance around ethical issues, over-
laboration with external organizations. The committee will
see the company’s contributions to promoting public welfare,
also ensure that the company promotes a culture of shared
and guide initiatives that satisfy ambitious corporate citizen-
growth among the partners with whom it does business.
pendent directors. It has set up a subordinate research group
Major BOD Agenda Items in 2012
6
Committees
•Management
Committee
Date
Each year the BOD and its committees conduct self-evaluations of their annual activities and participation rates. For rea-
total of 11 BOD meetings. The three-year average director at-
sons of independence, their compensation includes only the
tendance rate (2010-2012) for BOD meetings stands at 94%.
basic salary and business travel expenses.
Decision
Approved
4/4
02/20/2012
Six agenda items including approval of LCD business spin-off
Approved
4/4
03/16/2012
Three agenda items including the appointment of the representative
director and the assignment of director duties
Approved
3/4
04/02/2012
Four agenda items including the report on and announcement of
completion of the LCD business spin-off
Approved
4/4
04/27/2012
Five agenda items including approval of the 44th 1Q12 financial
statements and quarterly report
Approved
4/4
•Related Party
Transactions Committee
06/08/2012
Appointment of the representative director and the assignment of
director duties
Approved
4/4
•Compensation
Committee
06/25/2012
Three agenda items including approval of the CEO’s concurrent position
as a director of Samsung Display
Approved
4/4
07/27/2012
Two agenda items including approval of the 44th 1H12 financial
statements, business report, and interim dividends
Approved
4/4
09/13/2012
Two agenda items including the decision on the merger with SEHF Korea
Approved
4/4
10/26/2012
Five agenda items including approval of the 44th 3Q12 financial
statements and quarterly report
Approved
3/4
12/03/2012
Three agenda items including the report on and announcement of
conclusion of the merger with SEHF Korea
Approved
3/4
•CSR Committee
Evaluation and Compensation
In 2012, Samsung Electronics addressed 47 agenda items at a
Decision
Three agenda items including 43rd financial statements and quarterly
report
•Audit Committee
•Independent Director
Recommendation
Committee
Agenda Items
01/27/2012
of Incorporation.
The BOD and Committees
CSR Committee recognizes a growing opportunity to further
ship goals. The CSR Committee is composed entirely of inde-
Committee Status
Board of Directors (BOD) Composition
Introduction of the Corporate Social Responsibility
(CSR) Committee
For swift and efficient decision-making throughout the com-
Board of Directors (BOD)
Board of Directors
Board of Directors
(Independent Direnctors 5)
9
Total
4
5
Vice Chairman & CEO
Oh-Hyun Kwon
Vice Chairman & CEO, Head
of Device Solutions, Samsung
Electronics
06
2013 Sustainability Report
President & CEO
Bu-Geun Yoon
President of CE, Samsung
Electronics
President & CEO
Jong-Gyun Shin
President of IM, Samsung
Electronics
President & CFO
Sang-Hun Lee
President of Corporate Management Office, Samsung
Electronics
Independent Director
In-Ho Lee
Former President & CEO,
Shinhan Bank
Independent Director
Han-Joong Kim
President & Chairman, CHA
Strategy Committee
Independent Director
Gwang-Su Song
Advisor,
Kim & Chang Law Office
Independent Director
Byeong-Gi Lee
Professor of Electronic
Engineering, Seoul National
University
Independent Director
Eun-Mi Kim
Dean, Graduate School of
International Studies, Ewha
Women’s University
Samsung Electronics
07
Sustainability
Overview
200 Trillion KRW
Annual Revenue
2012 Revenue
201
KRW
trillion
2012 Profit
29
KRW
trillion
Management Results
A testament to its competitiveness and continued success on a global scale, Samsung Electronics
became No.1 IT company in 2012 with annual revenue exceeding KRW 200 trillion. Independent of
its current success, Samsung remains commited to future innovations and improvements in areas
such as sustainable management, economic value creation, and capacity to expand into new business areas.
A Record in the Global Electronic Industry
sents a 139.4% increase over 2011 and an operating profit
Global circumstances in 2012 posed a set of unique chal-
rate of 18%, largely due to Samsung mobile phones’ new
lenges for Samsung Electronics. The global economic re-
position as global market share leader.
cession triggered by a worldwide debt crisis decreased
The consumer electronics sector recorded an operating
consumer confidence almost universally, negatively af-
profit of KRW 2.3 trillion, a remarkable 82.54% increase
fecting the economic performance of many companies
over 2011 numbers. Samsung’s success in the consumer
and countries alike. The difficulties presented by the
electronics space is largely due to the strong sales of
economic landscape compounded challenges within the
its TVs and displays, which ranked number one in sales
always-competitive IT industry.
across the world for the seventh straight year in 2012.
Nevertheless, Samsung Electronics achieved annual sales
Despite delays in the recovery of the global memory chip
of KRW 201 trillion and annual operating profits of KRW
market, Samsung’s components sector recorded operat-
29 trillion in 2012, a record in the electronics industry
ing profits of KRW 4.17 trillion in 2012 due to the steady
across the world.
growth of its System LSI (Logic) business.
Samsung Electronics achieved a landmark KRW 100 tril-
The display panel division recorded operating profits of
lion in sales in 2009. In 2012, just four years later, it has
KRW 3.21 trillion in 2012, largely due to increased sales in
doubled its annual sales record. Compared to the figures
emerging markets.
posted in 2011 (KRW 165 trillion in sales and KRW 15.6 tril-
Economic Value Distributed to Stakeholders
Total Economic Value Distributed to Stakeholders of Samsung Electronics:
187.2
T(KRW)
from a 2011 baseline
22
% increase
Shareholders and creditors
1.8 trillion
KRW
Combined total of KRW 599 billion for shareholders and an
interest expenditure of KRW 827 billion for creditors
The Government
7 trillion
KRW
Combined total of income tax expenditures, corporate tax,
and dues
Suppliers
138.7 trillion
KRW
In 2012, the Company distributed a total of
lion in operating profits), Samsung achieved increases of
A Global Workplace
21.85% and 85.4%, respectively, in 2012.
Keeping pace with increased globalization, Samsung
KRW 187.2 trillion (i.e. a 22% rise over 2011) in
Electronics is continually evolving to create a workplace
economic value to stakeholders.
Total operating expenses
Employees
Global IT Leader
for diverse populations around the world. At present, the
Samsung Electronics reaffirmed its position as a market
company employs 240,000 individuals in 217 countries
leader by recording a 14.4% operating profit rate in 2012,
throughout the world. Employees work in a wide variety
one of the highest rates in the global IT industry.
of workplaces including 40 production subsidiaries, 51
KRW
The IT & Mobile Communications sector in particular
sales subsidiaries, and 34 research centers.
Combined total of wages, retirement allowances, and benefits
achieved considerable growth in 2012 by posting annual
16.9 trillion
operating profits of KRW 19.44 trillion. This figure repre-
Local Community
Samsung Electronics Revenue/Operating Profits Trends
Revenue
KRW
Operating Profits
KRW
34.2T
7.4T
KRW
80.6T
KRW
165T
201T
245.4 billion
KRW
Combined total of social contribution expenses, including
donations made for the development of local communities.
29T
Re-investment (surplus)
15.6T
22.6 trillion
7.5T
KRW
Retained earnings for future investment
2000
08
2013 Sustainability Report
2005
2011
2012
Samsung Electronics
09
Sustainability
Overview
Leading the
Global Market
with Cuttingedge Technology
& Quality
Products
Market Shares by Business Area
Leading the Global Market with Cutting-edge Technology & Quality Products Samsung Electronics
sold more than 406 million mobile phones in 2012, securing a position as the global market leader
Semiconductors•System LSI
Refrigerators
with an overall share of 23.4%. Samsung also maintained its global market leader positions in other
key product areas, including TVs, monitors, semiconductors and digital appliances. And will con-
4.9%
tinue to lead the global market with cutting-edge technologies and quality products.
2.4%
2010
● Samsung
9.1%
9.6%
3.3%
10.3%
3rd
3rd
2011
2012
2010
2011
17.6%
17.2%
2012
● 2nd company
Samsung’s Market
Shares
by Product
Mobile Phone Total
1
Smartphones
27.0%
25.1%
33.3%
20.6%
19.9%
21.2%
2011
2nd
8.0%
19.0%
2012
2010
2011
TVs
8.8%
20.2%
21.7%
24.3%
Printers
9.2%
9.7%
2nd
2nd
2012
2010
2011
2012
Notebook PCs
15.1%
15.3%
2010
2011
2012
12.7%
12.6%
12.0%
Cameras
1
14.5%
14.5%
2nd
19.4%
LCD Monitors
1
Washing Machines
1
21.2%
2010
30.4%
5.0%
6.3%
6.9%
4th
7th
15.8%
16.0%
14.0%
2010
2011
2012
LED Monitors
12.7%
12.6%
2nd
2010
13.0%
2nd
2011
2012
35.7%
35.4%
2010
2011
2012
2010
2011
2012
Semiconductors•Memory
1
23.3%
19.0%
16.8%
21.1%
12.1%
1
34.3%
15.4%
15.8%
16.6%
2nd
2nd
2010
10
2013 Sustainability Report
2011
2012
2010
2011
2012
Samsung Electronics
11
Global Network
Sustainability
Overview
One Company
Fueled by Global
Diversity
Samsung Electronics began doing business in Korea in 1969. Forty-three years later, Samsung has
expanded into 200 countries. Samsung attributes much of its success to its global network of employees, whose creativity and innovation are engines for growth. The diversity of perspective and
expertise present at each of Samsung’s nine regional headquarters ensures independent strategic
development and solutions that can be applied both locally and around the world.
Efficient Resource Allocation and Localization Strategies
Samsung’s business operations include 217 locations around the world, including centers of production, sales, design,
and research. In order to effectively manage its diverse global portfolio, Samsung Electronics maintains 15 regional
headquarters around the world (including its corporate headquarters in Korea). Leadership at Samsung takes care to
equip each regional business segment with considerable resources and autonomy. This commitment to each region
in which the company operates provides opportunity to develop unique localization strategies and creative global
execution.
H/Q
6
5
・ Others
1
・ Staff
90,702
Surrey
・ Production
the CIS
Beijing
1
・ Sales
3
・ Research
3
・ Others
6
・ Staff
3,956
・ Production
Europe
3
・ Sales
16
・ Research
5
・ Others
12
・ Staff
11,362
Moscow
・ Production
・ Research
China
Korea
13
・ Sales
2
・ Research
7
・ Others
10
・ Staff
45,660
・ Production
New Delhi
Dubai
Japan
The Middle East
・ Production
・ Sales
・ Research
・ Others
・ Staff
1
7
2
8
1,529
・ Sales
・ Research
・ Others
・ Staff
・ Sales
Japan
・ Sales
・ Research
・ Others
2
1
5
4
15,066
・ Staff
1
2
2
906
Singapore
・ Sales
・ Others
Johannesburg
・ Staff
・ Others
・ Staff
・ Others
・ Staff
6
8
12
41,358
2
3
3
11
9,387
Global Bases of Samsung Electronics 33
51
37
No. of Employees
Korea
Asia
90,702
57,330
Research
Sales (38.5%)
Total
217
Revenue(Trillion KRW)
(24.3%)
17% 16%
14%
16%
% of Total Revenue
81
17%
18%
Sao Paulo
AISA
○ Revenue and number of employees in Africa is included in Asia
Production Africa
・ Sales
・ Research
Southeast Asia
・ Production
North America
・ Production
Southwest Asia
・ Production
New Jersey
○ Revenue and number of employees in CIS in included in Europe
15
3
7
635
○ Revenue and number of employees in South America
is included in America Others
25.9 26.5
29.2
24.9 28.8
2010
2012
2010
36.1
Latin America
・ Production
2011
Regional HQ
2011 2012
・ Sales
・ Research
・ Others
Korea
90,702
Revenue(Trillion KRW)
14%
16%
17%
18%
Americas
15,318
(19.4%)
(24.3%)
17% 16%
Europe
45,660
57,330
(38.5%)
No. of Employees
China
Asia
24,694
(6.5%)
16%
14%
14%
・ Staff
(10.5%)
23%
24%
29%
29%
43.5 47.5
58.2
2010
2012
28%
3
7
1
8
15,307
25%
% of Total Revenue
AISA
○ Revenue and number of employees in Africa is included in Asia
○ Revenue and number of employees in CIS in included in Europe
○ Revenue and number of employees in South America
is included in America
12
25.9 26.5
29.2
24.9 28.8
36.1
2010
2012
2010
2012
2011
2013 Sustainability Report
2011
23.4 23.1
28.2
2010
2012
2011
36.0 39.1
2010
2011
49.5
2012
2011
Samsung Electronics
China
45,660
Europe
15,318
Americas
24,694
13
Continuous Growth
Sustainability
Overview
Creating a New
Future to Bring
Positive Impact to
the Entire Global
Community
Samsung’s Vision 2020 mantra, “Inspire the World, Create the Future,” guides its efforts to create
new value through technology optimization, growth engine development, and sustainable management as well as to bring harmony of its stakeholders around the world.
Brand Value
No.9
Among Interbrand’s
top 100
Global Companies
Vision 2020
stakeholders around the world.
The overarching vision that guides Samsung Electronics’
Samsung expanded its Medical Equipment Team in 2012,
Vision 2020 framework is “Inspire the World, Create the
leading to the development of the company’s new Medi-
Future.” This vision expresses the company’s commit-
cal Equipment Division. Backed by a strategic vision and
ment to creating a new future that positively impacts the
commitment to social responsibility, the company will
entire global community through innovations in tech-
continue to introduce innovation and creative solutions
nology, products, and solutions while maximizing value
to the global Medical Equipment marketplace.
creation for its customers, employees, and society as a
Samsung invests significantly in research and develop-
whole.
ment, both in its traditional areas of excellence and in
Samsung Electronics has set goals to achieve annual
new areas for potential growth. The company recognizes
sales of USD 400 billion in 2020, placing its overall brand
the important pattern between investment in research
value among the global top 5. Three key strategic pil-
and development and meaningful business outcomes.
lars inform Samsung’s strategy to accomplish this goal,
In 2012 alone, new product and service innovations con-
namely: ‘Creativity,’ ‘Partnership’ and ‘Great People.’
tributed to annual sales of KRW 201 trillion and operat-
Samsung is committed to operational excellence and in-
ing profits of KRW 29 trillion. The company also received
novation within its established business areas. Similarly,
external recognition for nonfinancial excellence in 2012,
the company is working to build capacity and expertise
as Interbrand ranked Samsung’s brand as the 9th most
in new business areas, including healthcare and biotech-
valuable worldwide. In addition, Fortune magazine rec-
nology, to further increase its global competitiveness.
ognized Samsung as the 34th most admired business
As a creative business leader in the global community,
entity in the world.
Vision
Inspire the World, Create the Future
Mission
To inspire the world with innovative technologies, products and designs that enrich
people’s lives and contribute to a socially responsible, sustainable future
Goal
Strategic Direction
•Quantitative Goals: USD 400 Bil. in sales, predominantly No.1 in the global IT industry & a top 10
global company by 2020 •Qualitative Goals: Innovative company; Respected company; Top 10 world’s best workplaces; Creative leader building new markets; Global enterprise that attracts the world’s
best talents
Creativity
Partnership
Great People
Infotainment
Lifecare
Biz Areas
Info
Biz Models
Telcom
Healthcare & Environment & Convenience
Energy & Comfort
Biotech
AV incl. TV
Finished Goods/Systems/Components
Software/Solutions
Samsung will continue to contribute shared value for its
Focus Expansion to include Healthcare/Biotech,
Environment/Energy & Convenience/Comfort
Focus on Info/Telcom/AV
Accomplishments
Other Achievements
Samsung Enters Interbrand’s
Top 10 List
9
Fortune names Samsung as 34th
most admired companies in the world
th
th
Top 5
9th
19th
34
14
th
17th
2011
20
Top 10
22nd
2012
2013 Sustainability Report
2020
2010
38th
2011
2
4
5
The Boston Consulting Group
On Thomson Reuters’ top 100
Consulting firm Booz&co. ranked
Samsung has been included as
ranked Samsung as its 3rd most
global innovator list for the
Samsung as 4th most innovative
a component in the DJSI World
innovative company in the world
second straight year.
company, a 3-place jump from
Index for five consecutive years.
–8-place jump from 11th in 2011.
years
th
years
2011 list.
20th
32nd
34th
2012
3
rd
Top 10
42nd
2010
Samsung ranks 20th among top 500
global companies
2020
2010
2011
2012
2020
Samsung Electronics
15
Sustainability
Overview
Enhanced
Organizational
Efficiency and
Competence
Organization of Business Areas
In 2012, Samsung Electronics launched an exhaustive program of organizational reform that proactively addresses the changing global IT landscape. As a top priority of the organizational reform,
Samsung refined management structures in each business area to optimize capabilities throughout
the entire company. Samsung’s new organizational structure reflects the company’s refocused emphasis on three key business sectors: Consumer Electronics (CE), IT & Mobile Communications (IM),
and Device Solutions (DS). These reforms will help Samsung improve upon its history of operational
excellence, allowing for increased growth opportunities and continued industry-leading innovation.
Focusing on Three Key Areas (CE-IM-DS)
of key IT industry issues, namely a recognition of the
As part of the 2012 reorganization, Samsung dissolved
blurring lines between PC and smartphone technologies.
its Digital Media and Communications (DMC) sector and
Similarly, the arrangement allows for increased col-
ustainability
S
Overview
Investing in the
Future Through
Creative Problem
Solving and
Innovation
R&D Investment Rate
Investments & Patents
Samsung Electronics believes that its efficacy and success relies on its ability to create new business, products, and technology. As a result, the company places a heavy emphasis on future investments and patents. Samsung also believes in the power of constructive failures, recognizing
that challenges often serve as a catalyst for strategic problem solving and innovation within the
global marketplace. The company regards every challenge – regardless of size – as an opportunity
for knowledge building and growth. Through constant problem solving and creative technological
innovations, Samsung Electronics is committed to creating a more sustainable future for the entire
global community.
Continuous Growth through Strategic R&D Investments
compared to the KRW 6 trillion invested in 2007, Sam-
The global economy is experiencing unprecedented
years.
changes, including both a persistent recession and
Samsung Electronics increased its R&D personnel from
Samsung has invested
blurred distinctions between key industries.
21,000 in 2003 to more than 60,000 in 2012, accounting
KRW 12 trillion which is
Despite the challenges posed by the global economy,
for 26% of the company’s total manpower worldwide.
Samsung Electronics retains its competitive advantage
In alignment with the increasing importance of soft tech-
6
%
sung has doubled its R&D investments over the past five
replaced it with two new, more specialized sectors: Con-
laboration between the PC business and the IM sector’s
sumer Electronics (CE) and IT & Mobile Communications
industry-leading capabilities in software and hardware
(IM).
production as well as marketing.
Starting in 2013, Samsung Electronics’ organizational
To optimize organizational operation of its printer busi-
structure will center on the three sectors of CE, IM, and
ness, Samsung established a Printing Solution Business
and growth patterns that outpace industry standards.
nologies including software, design and services, Sam-
Device Solutions (DS).
Division in 2012.
In recognition of the IT industry’s inherent volatility,
sung Electronics added the software occupational group
The reorganization allows for each business sector to
In response to promising results within the global mar-
Samsung maintains a core belief in the constant pursuit
to its recruitment plan for 2011. It has hired an increasing
make decisions more quickly and deal with global mar-
ketplace, the company also expanded its Medical Equip-
of new innovation and success, regardless of past per-
number of experts in this key field.
ket changes more effectively.
ment Business Team to form a new Medical Equipment
formance.
In addition, Samsung established the Mobile Solution
In addition, these structural reforms create models for
Business Division.
Samsung Electronics always increases its R&D invest-
Center America(MSCA) in Silicon Valley, USA as part of
ments during times of industry-wide or company-spe-
its efforts emphasize the importance of software within
cific slowdown. This practice reflects the company’s be-
company operations. To that end, Samsung plans to con-
lief that R&D investments and technological innovation
tinue recruiting prominent R&D and software experts
serve as important problem-solving mechanisms.
from around the world.
success enterprise-wide. Going forward, Samsung’s TV
6% of its Revenue
% of R&D Personnel
and mobile phone divisions will serve as best practice ex-
Software Development
amples for other internal sectors such as printers, cam-
Prompted by the rapidly changing business environment
eras, networks, and medical equipment.
and to maintain technological leadership, Samsung’s DS
The DS sector will continue to be run independently of
sector enhanced its advanced research capabilities.
other sectors to preserve its reputation for excellence
The newly-established Software Research Lab will serve
among key stakeholder groups.
26
%
Over the years, Samsung has increased both its mon-
From 2003 to 2011, total
etary investment and human resource capacity in R&D.
as a hub for the company’s component software opera-
number of R&D personnel
In 2012, Samsung Electronics R&D investments totaled
tions. It wil provide the education and training of the
increased from 21,000 to
more than KRW 12 trillion (6% of its total annual sales).
Business Division Efficiencies
company’s software experts and develop next-gener-
over 60,000. Currently
The amount represents a 20% increase over that of the
Samsung also integrated its PC business into IM sector.
ation software platforms and imbedded software pro-
the proportion of R&D
previous year (KRW 10.3 trillion). Furthermore, when
The new arrangement demonstrates important foresight
grams.
personnel is 26%.
R&D Investment and R&D Personnel as a Proportion of Total Employees
CE
Consumer Electronics
Organization Chart
R&D Investments (KRW)
CEO
R&D Personnel
IM
IT&Mobile Communications
DS
Device Solutions
Consumer Electronics
(CE)
IT & Mobile
Communications (IM)
Device Solutions
(DS)
Visual Display Business
Mobile Communications
Business
Memory Business
Digital Appliance Business
Network Business
S.LSI Business
Printing Solution Business
Digital Imaging Business
LED Business
Health & Medical
Equipment Business
Media Solution Center
Corporate
Management
7.6T
44,033(27.9%)
2009
16
2013 Sustainability Report
9.4T
50,084(26%)
2010
10.3T
55,320(25%)
2011
12T
60,495(26%)
2012
Samsung Electronics
17
Umyeon-dong R&D Center
Creation of R&D Centers to Catalyze Growth
Patents
Samsung Electronics is building new R&D centers and
Samsung firmly believes that investments in research
complexes in Umyeon-dong, Suwon, and Hwaseong with
and development directly translate to unprecedented ad-
the aim of expanding its foundation for the development
vancements in technology.
of future growth engines. R5 Research Building in Suwon
Samsung Electronics has filed 36,078 patent applica-
In the U.S., Samsung has
opened in June 2013 and Samsung Electronic Material Re-
tions domestically and 36,276 internationally to date. In
registered a total of 30,461
search Complex is set to open at the end of 2103. Because
the United States, the company has registered a total of
patents including 378 design
of the centers’ proximity to one another and the variety
30,461 patents including 378 design patents. In the six
patents maintaining No.2
of research taking place, each new technological devel-
years leading up to and including 2012, Samsung contin-
patent holder for 6 consecutive
opment will be tempered by the expertise and counsel of
ues to rank among the top two global IT companies in the
years.
the neighboring facility.
United States in terms of patents acquired.
Samsung has also started construction on a large research
At Samsung, filing for patents is a collaborative process
center for electronic materials in Hwaseong, which the
that involves a variety of experts in research, design, pro-
company plans to complete by the end of 2013. The R&D
duction, and law. The product creation lifecycle involves
center will work to develop key electronic materials such
consultation from each set of experts in order to optimize
as graphene, materials for next-generation batteries for
design and mitigate risk.
sunlight generation and electric cars; and OLEDs that will
Of note, Samsung Electronics has proactively increased
enable Samsung to incorporate a greater proportion of
the number of patent experts on its R&D teams from 250
Spotlight: Umyeon-dong R&D Center
domestic components in its own electronic devices.
in 2005 to 450 in 2012.
Samsung Electronics is building its first R&D center at Umyeon-dong in the city of Seoul. Due to its strategic location
By 2015, Samsung Electronics will complete construction
Samsung has also introduced a compensation system for
in South Korea’s capital city, the new center will be able to recruit and retain top talent in the fields of research and
on the new Umyeon-dong R&D Center, which is set to be-
employees that rewards job-related inventions. The com-
development. The center will serve as the company’s hub for design and software, and further enhance the competi-
come the hub for the company’s design and software re-
pany compensates each employee that submits patent
tiveness of the company’s great variety of products and services. The Umyeon-dong R&D center, a complex composed
search programs. Upon opening the Umyeon-dong cen-
applications on its behalf, and rewards team members
of six ten-story buildings with a total floor area of 33,000m2, is scheduled to be completed by the end of 2015. The
ter, Samsung will have completed a large R&D network
again upon applying the new technologies to its prod-
company aims to employ 10,000 researchers in the areas of design and software at the complex.
in the Seoul Metropolitan Area. The network is home to
ucts.
multiple R&D facilities located in Seoul and such cities
Additionally, Samsung awards Patent Grand Prizes to em-
as Suwon, Hwaseong, and Pyeongtaek in the Gyeonggi
ployees whose patents prove to make significant contri-
Province. These interconnected facilities will serve as crit-
butions to the company’s product and service portfolio.
ical incubators for Samsung’s new technologies.
In doing so, Samsung aims to encourage continued excel-
U.S. Patent
2
nd
Flagship R&D facilities:
10,000
where
researchers will be working
lence in R&D among team members.
Suwon
(Comprehensive R&D Complex)
Hwaseong
(Components R&D Center)
R&D complexes established by the Company
(① number. of employees, ② scheduled completion date)
Umyeong-dong
(Software & Design R&D Center)
Hwaseong Parts Research Institute, Gyeonggi-do
① 10,000
② December 2013
The Silicon Valley Software R&D Center Set to Expand
In the United States, Samsung Electronics will expand its software R&D center in California’s Silicon Valley. The center
will accommodate a total of 1,000 world-class experts. Samsung Electronics originally established the Media Solution
Center America (MSCA) in Silicon Valley as an auxiliary media solution center for R&D on content and services. Now,
Suwon Institute R5, Gyeonggi-do
Pyeongtaek Complex, Gyeonggi-do
① 10,000
① 30,000
② June 2013
② After 2016
the company is expanding the center and planning to develop it into a research facility devoted exclusively to software
development. Going forward, the MSCA will play the central role in reinforcing the company’s global competitiveness
within the software sector.
18
2013 Sustainability Report
Samsung Electronics
19
Sustainability
Overview
Stakeholder Engagement
Genuine
Stakeholder
Communication
Samsung Electronics uses an array of communication channels to engage stakeholders in productive and relationship-driven conversation. The company hosts public stakeholder forums and maintains online blogs in an effort to encourage stakeholders to express their honest points of view on
any matter related to the company.
Number of students
participated in CSR Forum
100
Over 100 students who is
Samsung Holds Student CSR Forum & CSR
Sharing Concert
company’s social responsibility policies and ways of im-
As part of its 2012 efforts to expand stakeholder en-
The company also held a CSR Sharing Concert event
gagement in discussions about the company’s policies
that convened volunteers and beneficiaries to both
and management, Samsung held a student CSR forum
share past CSR accomplishments and discuss potential
in Korea.
improvements in future CSR direction and program con-
The forum consisted of in-depth discussions about the
tent.
proving them.
interested in CSR attended to
“1st CSR Forum for University
Stakeholders Engagement
every effort to reflect lessons from the feedback in the
Students” held by Samsung
Samsung pursues open, relationship-driven commu-
company’s future corporate policies and actions. In order
Electronics.
nication with stakeholders in order to promote shared
to facilitate effective communication with stakeholders,
growth. Samsung’s’ diversity of stakeholders includes
Samsung Electronics has designated a specialized com-
shareholders, customers, employees, NGOs, local com-
munications department for various stakeholder groups.
munities, suppliers, mass media, and the government.
Each of these departments holds forums, responds to
Taking care to match the appropriate communication
inquiries, conducts surveys and runs advisory groups for
channel with each group, Samsung carefully considers
its particular group of stakeholders.
Student CSR Forum
Plan
Samsung Actions
Stakeholder Actions
•Thinking: Raise college students’ interest in CSR
•Collection of students’ queries about CSR
•Analysis & Plan: Meetings with CSR club
•Summarizing students’ needs
member students revealed that they had hardly
any opportunities to witness actual corporate
CSR cases.
Preparation
•Selection of CSR Forum issues
•Collection of questions about Samsung’s CSR
activities
•Decision on the forum date
each piece of feedback from stakeholders, and makes
•Assignment of experts in personnel, CSR,
•Proposal of the forum date
product development and the environment
Communication channels with stakeholders
Forum
•With experts in various fields, Samsung
Operations
Electronics presented its socially responsible
•Participation in discussions
•Q&A
case studies and held discussions with students.
Improvements •Establishment of a system that enables students
Suppliers
Workshop on shared growth; voice
of customer (VOC) claim processing;
informal meetings with subcontractors
•Proposal of improvements to Samsung’s CSR
activities
to participate in improving Samsung Electronics’
Shareholders/investors
Investor relations (IR) meetings; annual
general meeting of shareholders; oneon-one meetings
CSR activities
•Presentation of improvements at the Samsung
student CSR forum
• Enhance publicity in order to drive student
participation
Sharing Concert
Media
Press releases,
interviews and
briefings with
reporters
Local communities
Community service
centers,
local community
councils
Plan
Samsung Actions
•Thinking: CSR volunteers and beneficiaries need
to meet after CSR events
Stakeholder Actions
•Continuous exchanges between volunteers and
beneficiaries following CSR activities
•Analyse & Plan : Volunteers and beneficiaries
will share CSR preparation processes and
impactful CSR cases to promote a sharing
culture among concert participants
Customers
The Government
Customer satisfaction
surveys, proactive
consumer activities,
VOC claim processing,
corporate social
responsibility
activities
Policy meetings,
city council meetings,
and policy-related
advisory organization
participation
Preparation
•Preparation of stories about sharing
participate in the concert
Forum
•Annual summary of Samsung Electronics’ CSR
•Beneficiaries: share personal stories
Operations
•Sharing volunteers’ stories
•NGO: Presentation of ways to strengthen
•Community service plays, etc.
Improvements •Expanding pro bono activities with advanced
technologies
•Reflection of relevant opinions in CSR programs
NGO
Employees
Business networking events,
NGO gatherings, corporate social
responsibility activities
Standard Corporate Protocol surveys;
labor management councils, counseling
center
•Preparation of stories by beneficiaries and NGOs
•Securing beneficiaries and volunteers who will
partnerships
•Proposals of expanded pro bono activities using
Samsung Electronics’ technologies and core
competencies
Since joining the Electronic Industry Citizenship Coalition (EICC) in 2007, Samsung Electronics has proactively participated in the
various initiatives of the EICC including joint actions on the industry’s common issues.
During the 2012 EICC Winter Membership Meeting hosted by Samsung in Korea, Samsung shared Korean companies’ CSR accomplishments and the local government’s “Shared Growth” policies. The meeting also served as a valuable opportunity for the
electronics industry to share CSR best practices with audiences in Korea.
✽ Samsung Electronics abides by AA1000SES(Stakeholder Engagement Standard) in all stakeholder forums.
20
2013 Sustainability Report
Samsung Electronics
21
Materiality Matrix
Incorporation of Stakeholder Feedback
Stakeholders
Major issues
Stakeholder Feedback Incorporated
Shareholders
/ investors
Ensuring
compliance
Launch of a team tasked with monitoring suppliers’ compliance with labor laws; expansion
of due diligence concerning suppliers; supplier trainings
Environmental policy concerning water resources and
climate change
Establishment of a water resource management policy; assessment of water resource risks
at facilities; adoption of water resource reduction technologies
Workplace environment
improvements
Assuring suitable work hours (on a weekly basis); work leave sessions providing education
on the necessity of employee vacation days
Customers
Production facility
conditions
Elimination of conflict
minerals
Establish transparent
corporate culture by
improving material
issues and fostering
law-abiding business
environment
Materiality Matrix
Assurance of labor rights at production facility (including minimum wage observance); strengthening of workplace safety teams that improve environmental health & safety (EHS) management
Auditing suppliers’ use of ores; smelter/refinery mapping; participation in the EICC Extractives Work Group
Samsung Electronics received consultation from PwC, an independent multinational professional
services firm, regarding its selection of material issues for 2012. After checking with both internal
and external stakeholders, Samsung Electronics selected the following as the
material issues for 2012 and included them in the report:
Feedback
from External
Stakeholders
132 cases in 2012
Trend Surveys
Media Coverage &
Industrial Surveys
Level of interest among stakeholders
Sustainability
Overview
Evaluation of Social
Concerns
Employee
Diversity
Conflict Mineral
Contribution through products
Recruitment
Climate Change
Mineral use
Supplier labor rights
Water
Management
Shared growth
Shared growth
Expansion of shared growth policy with first and second suppliers; support system for supplier recruitment; development of ‘small but strong‘ support program
Strengthening of
workplace safety
Strengthening of teams in charge of workplace safety management; strengthening of
process improvement and diagnosis
Environmentally-friendly
Product Development
Subcontractor-related corporate
social responsibility
Impact on business
Issues
Partners
Ethical facility
management
Establishment of collaboration councils in local production communities; improvement of
chemical emissions/wastewater discharge
Contributions to local
communities
Expansion of the Hope for Children program; increase in corporate social contribution
investment
Facilitating supplier business growth
Support system for ‘small but strong’ global businesses; operation of the Innovative Technology Company Council (ITCC); adoption of the Open Sourcing system
Fair pricing
Purchase of raw materials by Samsung for its suppliers to help manage component prices
Assistance for suppliers’
recruitment
Holding job expos to help suppliers hire employees
Major Contents
Page
Compliance
Compliance management, etc.
68, 69
Employment
Expanded employment & recruitment of underserved members of society
46, 47
Employee Diversity Promotion of inclusion in the composition of staff and executives by hiring a broad array of diverse groups
46, 47
Safety & Healthcare Promotion of employee health and creation of safe, pleasant workplaces
56~59
Conflict Mineral*
Local Communities
Environment
Social contribution
Biodiversity
Material Issue
Government
Society
Professinoal
Development
Distribution of procedure for banning the hiring of underage employees; routine monitoring for compliance
Establishment of a biodiversity policy; appraisal of water resource-related risks and mitigation system adoption; measuring of GHG emission reduction; banning harmful materials in
products
Human/Labor
Health & Safety
Disclosure of ore extraction sites; analysis of suppliers’ mineral use; smelter/refinery mapping; participation in the EICC Tin Initiative
Environmental policy
Selection of
Material Issues
Compliance
Increase product accessibility
NGO
Evaluation of
Business Impact &
Control Degrees
Enhance the transparency of supply chain to ban the use of minerals in the conflict regions
Website
Suppliers' Corporate
Suppliers’ compliance with rules relevant to human rights, labor and environmental safety
Social Responsibility
54, 55
Social Contribution Supporting local community development and helping populations in need
34~41
Contribution
through products
Creating Shared Value through the development of new products as well as helping to resolve
social and environmental issues
26~33
Shared Growth
Enhanced supplier competitiveness and promotion of fair transactions
42~45
Increase product
accessibility
Expanded accessibility for populations requiring special accommodations
32, 33
EnvironmentallyFriendly Products
Development of high-efficiency products to reduce environmental impact
Environmentally-friendly packaging to conserve natural resources, etc.
48~51
Climate Change
Reductions in GHG emissions from to corporate activities
78~81
52, 53
Water Management Reductions in water consumption and waste water disposal
* For more information please visit our sustainability website at www.samsung.com/us/aboutsamsung/sustainability/suppliers/conflictminerals/
22
2013 Sustainability Report
Samsung Electronics
23
Board of Directors (BOD) Composition
We strive to improve our productivity and maximize business outcomes through continuing innovation. Our Sustainability Report 2013 aims to share the company's vision and values
with interested parties through showcasing our activities in the following areas, compliancefocused management, social contributions; new value creation through environmentally responsible innovation, shared value and growth; and risk mitigation.
Communication
and Co-existence
for Continued Growth
Sec. 02
Material Issue
26 Creating Shared Value and Giving Back with Samsung Products
34 Social Responsibility: Making Contributions around the Globe
42 Shared Growth
46 Human Resources
48 Eco Product
52 Water Management
54 Supplier CSR
56 Health & Safety
Material Issue
Creating Shared
Value through
Products and
Contribution
Creating Shared Value and Giving
Back with Samsung Products
Samsung works to contribute to the improvement of communities in areas such as poverty reduction, health promotion, environmental protection, and energy self-sufficiency. Samsung Electronics
now conducts studies on potential environmental and societal impacts whenever it plans to develop a new product. Samsung takes care to ensure that its new products not only make people’s
lives more convenient and enjoyable but also contribute to making the global community healthier.
By developing and launching energy-efficient products, Samsung’s global offerings are designed
to address serious problems in many parts of the world such as shrinking water resources, scarce
power supplies, and accelerating climate change. Samsung will continue its dedication to launching innovative products that have a positive impact on serious global issues while simultaneously
fulfilling consumer needs. Moving forward, the company plans to expand its use of the CSV model
in order to drive value creation both within its business and among its stakeholders.
Future Imperatives
Creating
Shared
Value
In its 2011 United Nations-commissioned ‘State of the
Future’ report, The Millennium Project includes water
shortage and climate change among the fifteen most
critical issues currently facing humanity. The report
states that the earth has undergone marked changes
due to global warming, particularly since the 1970s,
causing the average annual temperatures for 2005 and
2010 to jump to the highest ever recorded.
Climate-related Disaster
TV
In order to best meet consumer needs, Samsung takes into account regional challenges faced by
end-users, including the severe shortages of water and electricity. For example, much of Africa’s
energy infrastructure suffers severe fluctuations in power voltage due to unstable power supply.
This problem translates into frequent complications with home appliances. In response, Samsung
Electronics has developed a Triple Protection TV specifically for African consumers, a product designed to withstand power outages and voltage fluctuations as well as accommodate the region’s
harsher climate.
Do you know?
One in four TV sets in Africa
breaks down due to
unstable power supply
Solution
Samsung Electronics Triple Protection TV
No breakdown caused by
voltage fluctuations
Water Shortage
Rust prevention
More than 880 million people in the world do not have
access to clean water, while a further 2.6 billion people
are threatened by unsafe water, sanitation, and hygiene. Many inhabited places around the world are seeing their water sources dry up due to global warming. A
report from the United Nations predicts that the water
tables in most places around the world will continue to
descend, aggravating the global water shortage crisis.
Driven by its belief in CSV, Samsung strives to practice responsible corporate citizenship by proactively engaging in various global efforts that combat serious issues like poverty, disease, environmental degradation,
and energy crises. To that end, Samsung works to remain conscious of the potential effects that its products
– through manufacture and use – could have on the environment. In order to uphold its commitment to environmental responsibility, the company conducts impact analyses during product development and optimizes
product design to maximize positive impacts to communities and overall global health. Samsung proactively
pursues shared value by creating innovations that can satisfy customer needs, boost corporate value, and alleviate serious global issues.
Extremely high moisture
Weak broadcast infrastructure
According to global reinsurer Swiss Re, 950 natural disasters resulted in approximately 300,000 deaths and
US$130 billion in property losses in 2010 alone. Of the
disasters within the study’s scope, an estimated 90%
were related to climate change.
Samsung’s Response
Sudden voltage fluctuations
Free satellite TV available
in collaboration with global
satellite operator SES
Social Benefit
Reductions in
repair/replacement costs
① Stable use of devices and reduction
of repair and replacement costs
② Higher levels of satisfaction
③ Availability of high-quality broad-
Benefit to Company
39.9% 184%
The highest TV
market share in
Africa
Increased sales of
LED TVs
cast platform
26
2013 Sustainability Report
Samsung Electronics
27
Material Issue
Air
Conditioners
Despite Africa’s warm climate, the local demand for air conditioners remains low – again due to
the poor power supply infrastructure commonly found in communities across the continent. Air
conditioner motors are particularly vulnerable to surges caused by unstable power supply, further
compounding the challenges of bringing reliable climate control solutions to African citizens. Interested in solving this issue and creating value for its stakeholders in Africa, Samsung Electronics
has developed the Triple Protector Air Conditioner. Thanks to innovation in design, this newlylaunched product continues operating efficiently under harsh conditions including unstable power
supply. As a result of this enhanced reliability, African consumers can use Samsung air conditioners
with confidence and improve their quality of life significantly.
Do you know?
Every two to three years,
air conditioner breaks down
Solution
Power surge
Extreme climate condition
Refrigerators
African communities experience an increased incidence of a variety of diseases due to extreme
heat and food spoilage, a problem Samsung has pledged to help reduce. In an effort to mitigate
disease outbreak, Samsung has developed the DuraCool refrigerator, which stays cool for hours
even after the power goes out. The company carried out extensive research for more than a year to
enhance durability and prevent circuit shortages. This innovative product has greatly contributed
to improving the quality of life for millions of people on the continent while simultaneously helping
improve Samsung’s market leadership position.
Do you know?
power outage results in food
spoilage
Radical voltage fluctuations
Extremely hot weather
Solution
Samsung Electronics Triple Protector
Air Conditioner
Samsung Electronics
DuraCool Refrigerator
Protection of compressors, the key
component, at low voltage
Refrigeration continues for
three hours after blackout
Protection of indoor unit circuit
Protection of major
components from unstable
power supply
components from voltage fluctuations
Prevention of rust from dust or salt
Energy efficiency improvement
with LED lighting
Social Benefit
Enhanced Comfort and Convenience
①Enhanced air conditioner operability in extreme weather conditions
②No breakdown during radical
changes in weather conditions
including humidity
③ Lower power bills thanks to highefficiency operation
28
2013 Sustainability Report
Benefit to Company
No.1
The most admired electronics
brand in Africa
Social Benefit
①Maintenance of cooling features
during power failure
②Safe preservation of fresh food
The top consumer electronics
brand in South Africa
③ Prevention of diseases including
food poisoning
Benefit to Company
23.5%
Samsung refrigerators’ market share
in Africa rose to 23.5% in 2012
No. 1 refrigerator market share
in Africa for two years
Samsung Electronics
29
Material Issue
Washing
Machines
Washing machines consume more water than many people suspect. Wash cycles of course require
water, but drying laundry often consumes equivalent amounts of water. Traditional machines dry
laundry with hot air, generating humidity the process. In order to create balance and eliminate this
humidity, many machines introduce cold water at some point during drying cycles.
As part of an ongoing effort to create new products with measurable environmental benefits, Samsung began asking the fundamental question, “why use water to dry laundry at all?” After a dedicated research phase, Samsung succeeded in developing a washing machine that dries laundry
without using any water: the ‘Bubble Shot 3 W9000’ released in 2013. The W9000 is equipped with
an ‘Air Speed Dry’ mechanism that requires no water to operate. The release of the W9000 creates
tangible benefits not only for areas suffering from water shortage, but also for many other areas
around the world that are concerned with potential water shortages in the near future.
Green Memory
Approximately 500,000 data centers around the world consume 1.5% of the world’s electricity annually – the equivalent of energy generated by 50 different 1-million kilowatt power plants. Worldwide,
datacenters also produce annual gas emissions equivalent to 40 million consumer cars. As the amount
and complexity of data increases, so too does the amount of electricity required by the IT industry to
keep up with growing server demands. Samsung’s ‘Green Memory’ line, which provides faster speed
while spending less energy, enables sustainable development within the IT industry while simultaneously helping to protect the environment.
5X
Do you know?
During the same period, worldwide data
storage space is set to increase by only five
times, creating a disparity that Samsung’s
100 liters of water is
needed during one drying
cycle
Do you know?
5X
112EB
advancements in memory technology can
help to address.
24EB
12X
2011
Worldwide data transfer is set to increase
2012
2013
2014
2015
from 7 exabytes in 2011 to 82 exabytes
in 2015, increasing server demands by
Solution
approximately twelve times.
DRAM 8%
2011
510 KRW
Cost
420 KRW
176 min.
Running time
78 min.
②Lower water bills
③ Cuts energy bills and makes a
positive contribution to dealing
with climate change
30
2013 Sustainability Report
No.1
The washing machine most
preferred by U.S. consumers
Securing leadership in premium
consumer electronics market
2012
2013
2014
2015
Solution
4th Generation Green Memory
Benefit to Company
Memory A/C 14%
7EB
Bubble Shot 3 W9000
0ℓ
global water shortage problem
essential to the creation of more
sustainable information hubs.
Minimum 52 ℓ
①Contributions to solving the
is consumed by memory, making
82EB
12X
Water consumption
for drying
Social Benefit
About 32%of all data center power
energy conservation in this area
Dries laundry using no water at all Samsung Air Speed Dry
Traditional Washing Machine
32%
SSD
20 Nano
SATA 6G
DRAM
20 Nano
DDR3 4Gb
Memory
32%
SSD/HDD 10%
Effects
If all servers in the world were using 10% SSD
and 20% DDR2
3.5 TWh
262
Million
Dollars
61M
Trees
Reduction
2.4
MegaTons
473,000
Cars
(DDR3 compared to 1st generation; SSD compared to HDD)
Samsung Electronics
31
Material Issue
Increasing
IT accessibility
for all
Percentage of people with
disabilities in the world
15.3
%
People with disabilities comprise 15% of the
world’s population, with this number increasing to as high as 46% among certain demographics. Thus, the challenge of providing
information technology access to individuals
with disabilities becomes increasingly urgent.
Samsung Electronics has long been engaged
in research on ways of making access to its
products and services possible for everyone.
The company’s research organizations work to
identify and provide solutions for the specific
challenges faced by people with disabilities
as they interact with modern advancements
in technology. As a result, Samsung Electronics has implemented a number of accessibility
features for its various devices including the
latest smartphones. Samsung will continue to
include such innovations within its product to
ensure that all people can enjoy the full benefits of information technology, often resulting
in increased convenience and quality of life.
Example: Improved Accessibility to Galaxy S4
A Life Companion that Delivers New Value
GALAXY S4 aims to fully integrate with consumers’ lives in order to meet their needs. It is equipped with features designed to improve accessibility and
deliver value to consumers with disabilities.
Hearing
A Roadmap for Improving Accessibility
Sight
Establishment of
Accessibility
Roadmap
Identification of
Key Technology
Success Factors
Situation
Analysis
Talkback•A mobile screen reader that narrates
text on web pages
Character Sizes•In alignment with recommendations from groups such as the Korean Blind
Dedicated Accessibility
Research Organization
Samsung Electronics’
Digital Media City Research
Center engages in user
interface R&D to improve
device accessibility
functionality and address
the needs of people
with disabilities. The
researchers also seeks
Analysis of current
legislation, competitors’
accessibility features, and
standardization trends
Response to Feedback
Samsung has systematically collected feedback from its stakeholders around accessibility challenges, and
the company works to incorporate this feedback in its technology development efforts in order to ensure
that practical improvements are made to its product offerings
Category
Union, Samsung offers an additional five character sizes beyond Google’s standard offerings
Enlargement• Pages are enlarged/reduced so
those with low vision can fully enjoy mobile con-
Feedback
Color Reversal• Colors may be reversed for higher contrast to aid in readability
Color Adjustment• Color palates have been revised and reconfigured according to user color
recognition ability, enabling users to distinguish
previously indistinguishable colors
Device Use
•It can be difficult to press/touch exact spots on certain devices.
•Mobile phone ergonomics can be improved to mitigate challenges faced by people with upper limb disabilities who may have difficulties gripping devices.
Easier Accessibility• Talkback feature is now accessible through a gesture as opposed to navigat-
standard (HAC Test)
Sound Balance• Users with different auditory acuity between the right and left ears can adjust the
right/left volume balance
Mono Audio• Stereo sound can be transferred to
mono sound for those who have lost hearing in one
ear
All Sounds Off• This feature enables the user to
turn off all the sounds on the model to avoid disturbing the people around him/her
Alarm through Light• The alarm is signaled by
camera flashes that work even when the phone is
upside down
Smart Sound• The sound quality of telephone calls
or music can be adjusted according to the user’s
hearing range; earphone tests identify the best
sound for each user
Vibration Pattern Creation• The user can create
•The visually impaired prefer for external buttons to extend further past the device’s chassis.
ing through menus
Communication
•Many require a feature that reads out texts or callers’ information while they are on the road.
Auxiliary Light• Native support for camera flash
and alarms; the deaf can also assign different vi-
Improvements
•Many require a voice-to-text feature that translates speech into written messages.
to be used as a flashlight is included
bration patterns to different people for easy caller
through collaborations
Samsung’s wireless,
Establishment of an
accessibility roadmap
through selection of key
enabling technologies
tent
product-specific expertise
with colleagues in
Identification of success
factors through the careful
examination of feedback
from people with disabilities
Hearing Aid Support• Hearing aid compatibility is
visual display, and home
identification
•Stronger incoming call notifications such as more intense vibration or screen flickering can help address
appliance departments to
his/her own vibration pattern for telephone calls
those that experience challenges recognizing incoming calls.
make sure that practical
Recreational Activity
improvements are made
Improvements
•Improvements in the design of phones and accessories – such hands-free features to display the phone’s
screen – can better enable individuals to use devices for an extended period of time.
to each device. Also,
•Many require a feature that prevents camera shake and otherwise enhances image capture functionality.
Samsung’s marketing and
•Volume control and enhanced speaker features can help those with hearing disabilities enjoy music and
The Physically
Challenged
other audio playback.
customer service teams
•Applications that display e-books in larger characters can help facilitate reading for the visually impaired.
work to fully optimize
the company’s website
Search & Internet-based •The characters/letters of street names and other map text need to be expanded when a map is enlarged.
and after-sales service
Services
•Mobile web pages need to be enlarged for searching and surfing similar to the functionality present in
modern PC browsers.
platforms for accessibility.
•Image files received through e-mail need to be voice-supported.
Mobility Environment
•Low-resolution video calls create complications for lip readers.
•Sunlight reflection can make it difficult to use certain displays.
•The maximum volume for voice navigation instructions needs to be raised to accommodate the hearing
impaired.
Recognition
and Others
Supplementary Menu• This software feature enables the functions activated by hardware keys or
Input Control• Hardware keys and parts of the
gestures to be completed entirely by touch; this
screens can be controlled
is a helpful feature to those who may have a dif-
Telephone Call Reception/Turn-off• Telephone
call reception or turnoff can be set through hardware keys, voice commands or touch
Shortcut Display• Shortcut to accessibility page
ficult time pressing the hardware buttons or enabling the pinch-zoom
Screen Press Time• A long press recognition
time can be set by the user
is available
32
2013 Sustainability Report
Samsung Electronics
33
Material Issue
Contribution to
Create Healthy
Society
Social Responsibility: Making
Contributions around the Globe
In accordance with its belief that business can prosper only when the society within which it operates remains healthy, Samsung Electronics maintains a wide range of CSR activities in order to help
build a better society for all. Most notably, Samsung has been carrying out its Hope for Children
campaign across the globe since 2011 to provide youth with opportunities for better health and
education through information technology. Samsung Electronics will continue to expand its CSR
activities that benefit children worldwide, and the company will further enrich its efforts through
collaborations not only with employees but also with customers and local communities around the
world.
Europe
Samsung Experience Academy
Contribution in 2012
245
KRW
어린이에게 희망을
billion
Russia
Education for Everyone
China
Samsung
Hope Elementary School
United States
Samsung Solve for
Tomorrow
Egypt
Egypt Hope for
Children Lab
Korea
Iran
Digital Audio Library
Latin America
Samsung Complex in
Amazona
Samsung
Smart School Solution
South Africa
•Samsung Electronics
Engineering Academy
•Solar-Powered
Internet Schools
Vietnam
Smart Library
Education: Combining Technology and Pedagogy to Deliver Success
Samsung Electronics is firmly invested in creating a society that enables the next generation to
achieve their hopes and dreams for the future. In 2012, the company implemented educational
support activities customized for each region with the aim of providing children around the world
with better educational opportunities through information technology. In addition to infrastructure support and device donation, Samsung is engaged in longer-term programs including educator training and textbook supply; these Samsung initiatives are designed to help provide continuous, quality education to students in each partner school. Additionally, company employees
actively participate in volunteer activities and talent donation – providing mentoring, lectures,
and more – for students in various regions around the world. Samsung Electronics is committed
to continuing its efforts to inspire children around the world by making tangible improvements to
their educational environments.
34
2013 Sustainability Report
Samsung Electronics
35
Material Issue
Samsung Electronics Engineering Academy
Solar-Powered Internet Schools
Samsung launched the Samsung Electronics Engineering
Samsung is providing solar-powered Internet schools
Academy in South Africa in March 2011. The academy offers technical skills education while equipping youth for
employment in the IT marketplace. The academy provides
these 12-meter-long shipping containers are supplied
audio books, the company launched a ‘Call for Volunteers’
vocational education on electronic products to exemplary
with electricity for more than nine hours each day from
campaign, the results of which included narrators from lo-
technical school students across the country based on
solar panels installed on the facilities’ roof.
cal citizens and celebrities alike. In addition to offering Sam-
educator referrals. In 2012, every graduate from the Sam-
The shipping containers are mobile, enabling them to
sung customers the opportunity to serve their communities
sung Electronics Engineering Academy found immediate
move closer to community schools in order to maximize
as volunteers, the campaign also raised public awareness of
employment in the IT field. Samsung Electronics’ Africa
the amount of students that can receive the advanced
the importance of providing educational opportunities for
Engineering Academy
Headquarters is planning to train 10,000 technicians by
educational opportunities offered by the facilities. As
people with impaired visibility.
Beneficiaries by 2015
2015 through company-operated academies in several
such, some 30,000 students has benefited from the
10,000
cities throughout the continent. Samsung launched en-
schools in 2012. Samsung plans to open six solar-pow-
gineering academies in Kenya and Nigeria in February
ered internet schools in Africa by 2015.
Africa
Solar-powered Internet School :
Target Beneficiary of 2013
Iran Digital Audio Library
many other information sources on the Internet. Each digital
Samsung Electronics has set up digital audio libraries in five
audio library is equipped with 150 audio books and Sam-
in South Africa to overcome routine power shortages.
locations across Iran in order to offer visually impaired chil-
sung products such as LED TVs, home theater systems, and
Equipped with advanced, web-connected IT equipment,
dren ages 5-18 opportunities to access reading materials and
notebook computers. In order to recruit voice talent for the
The Middle East
and July of 2012, respectively. Beyond Africa, Samsung
opened an Indonesian academy in September 2012 and
Hope for Children Lab in Egypt
another in Turkey in October 2012. In addition to educat-
In order to address the limited access to technology in
ing the youth in their host countries, the Samsung Elec-
impoverished sections of Egypt, Samsung opened IT labs
tronics Engineering Academies help develop local economies and resolve unemployment problems.
Engineering Academy in South Africa
35,000
Samsung Solve for Tomorrow
(STEM) can help improve the environment in your com-
The Solve for Tomorrow contest started in the U.S. in
munity. In 2012, a total of 1,500 schools in the U.S. en-
(9 labs in 2011, 10 labs in 2012) which provide students
2010 and invites entrants to respond to a challenge:
tered the contest, proposing STEM-based environmen-
with IT products and the opportunity to communicate
show how science, technology, engineering and math
tal solutions. The winners were awarded with various
USA
with the rest of the world. Samsung plans to offer the
IT products from Samsung, and the company offered
lab services to approximately 50,000 children and young
support to related social enterprises and start-ups. Sam-
adults over the next five years as well as providing train-
sung conducted online and offline workshops, mentor-
ing programs for educators including volunteers, teach-
ing programs and prototype production throughout the
ers, and members of the public.
contest. Moving forward, the contest is expected to become a significant forum through which to explore innovative ideas, encouraging participation from a broad
range of contributors via activities that are aimed at
developing creative problem solving skills and fostering
leaders for the future.
Europe
IT Labs in Egypt
Samsung Tech Institute
Samsung Electronics opened the Samsung Tech Institute
in order to address the problem of youth unemployment
in the European region. The Institute seeks to develop
students’ expertise and cooperates with local universities, governments and certificated authorities to broad-
Solar-Powered Internet Schools
in South Africa
en qualifications in IT, engineering and business skills so
that young people will be well-positioned to get a job
after completing their studies. Launched in the U.K. in
2012, Samsung Electronics plans to establish additional
institutes in 6 countries including Germany and France
in 2013. The company also aims to operate 100 facilities
capable of teaching 200,000 Europe-wide by 2020.
36
2013 Sustainability Report
Samsung Electronics
37
Material Issue
Russia
Education for Everyone
Korea and Asia
Samsung School
Samsung Electronics has donated hardware for Russian
The Samsung School is a glimpse into the future class-
10 to 17-year-olds with disabilities so that they might
room. Network connected electronic devices, such as
receive high-quality, home-schooling online education.
the e-board which features a touch screen function and
From 2012 to 2013, a total of 1,000 children and teenag-
the Galaxy Tab 10.1, will be used to share screens or to
ers living in 5 regions are expected to benefit from the
enable two-way learning, aiding with teaching strate-
program.
gies like quizzes, surveys and group activities. Since 2010, Samsung Electronics has operated the Samsung School pilot program in 20 schools around the
world including those in the U.K., Germany, France,
South Africa, Saudi Arabia and Brazil. For those children
living in coastal and mountainous areas whose educa-
Latin America
Samsung Complex in Amazonia
facing the children of the region. Samsung will continue
tional opportunities are limited, Samsung Electronics
The children and other residents of the Central Amazon
to use its technology and capabilities to deliver a re-
has provided crucial infrastructure and assistance such
often fail to receive a contemporary education or expo-
sounding message of hope to many more children who
as Samsung School solutions and products. In 2013, ap-
sure to the benefits of modern technology. In Novem-
are able to receive educational benefits in the continent.
proximately 3,000 students in 10 European countries
ber 2011, Samsung Electronics completed construction
will gain access to new Samsung Schools.
on an educational complex including school buildings,
libraries, dormitories and canteens in the Rio Negro area
Samsung Smart Library
of northern Brazil. The complex, completed in collabo-
The Samsung Smart Library project started in August
ration with regional nonprofit Amazonas Sustainable
2012 with goals to improve school libraries. Samsung
Foundation (FAS), attempts to open a window of oppor-
Electronics has provided learning opportunities to over
tunity for the children living in the region. The complex
16,000 students from 18 schools in 4 regions in Vietnam,
also features a digital center equipped with many of the
supplying approximately 44,000 books in total.
Vietnam Samsung Smart Library
Smart Libraries enable approximately
company’s products that allows students to interact
16,500 Vietnamese students in
with technology, thereby addressing the IT skills gap
18 schools across 4 districts to read
a total of 43,738 books
regions
China
Samsung Hope Elementary School in China
Samsung Electronics has constructed schools in rural and
remote areas of China since 2005 in order to foster education. 45 schools were built during the 1st phase (2005
to 2007) and 55 schools during the 2nd phase (2008 to
4
schools
18
2010). A total of 200 additional schools will be established during the 3rd phase (2011 to 2015).
students
16,500
books
Number of Samsung Hope School
by 2015
200
38
2013 Sustainability Report
43,738
Samsung Electronics
39
Material Issue
within the app itself. The app is a groundbreaking example of using web-connected displays to drive donations.
Samsung Employees Give Back
Samsung Electronics is committed to addressing key
social issues around the world such as poverty, disease,
human rights, and the environment. In addition to its
own efforts at the corporate level, Samsung encourages its employees to donate their talents to help resolve
these global issues. In 2012, a total of 211,285 employees
served on a wide variety of service programs including
volunteer efforts in Africa and mentoring services in Korea. Each Samsung employee spent an average of ten
hours on volunteer services in 2012. Samsung Electronics
plans to expand the scope of its employee volunteerism
platform in the future to further demonstrate its commitment to making the world a better place.
Donations via the ‘Insight Exhibition’
Smart TV App
Samsung employees volunteering abroad in Africa
Message of Hope to Africa
to deliver inspiring messages to all participating stu-
Smart Sharing with Customers
In the summer of 2012, 150 Samsung employees donated
dents.
In cooperation with Samsung and a school art program,
their annual leave to fly to Africa and serve in a number of
Number of employees who
engaged in skills-based
mentoring
1,918
children and teens with visual impairment took photo-
communities across the continent. Samsung employees
Nanum Volunteer Membership
graphs for an exhibit known as the ‘Insight Exhibition.’
served in a total of five African countries, including Cam-
In 2012, Samsung Electronics established the Nanum
The company developed an Insight Exhibition app in
eroon, Senegal, Congo and Tanzania. Local community
(Sharing) Volunteer Membership, a volunteer service
order to both expose more people to the students’ cre-
projects included IT center construction, computer educa-
group composed largely of college students, with the
ative work and also offer a means to support their talent.
tion, cultural exchanges, and medical services.
aim of spreading a healthy culture of giving in Korea.
Users of Samsung Smart TVs can download the app, en-
The organization is made up of 300 students from 77
joy the works, and make donations via mobile payment
Mentoring for Secondary School Students
universities and colleges across the country in addition
In Korea, Samsung employees provided mentoring to a
to 60 employees of Samsung Electronics. The members
large number of secondary school students. Since May
engage in a variety of social service activities such as
2012, 1,918 Samsung employees have donated their tal-
helping the impoverished and providing mentoring for
ent through offering mentoring services to a total of
at-risk secondary school students. Samsung employees
10,936 students in local schools and job centers. The
empower and support student members to create ideas
employees mentored students in the areas of career de-
for new volunteer services.
Number of Samsung Electronics’ skills-based volunteers in 2012
211,285
Nanum (Sharing) Concert
On December 4, 2012, Samsung Electronics held a Nanum Concert in Korea attended by a variety of audiences including Sam-
velopment and life counseling. Samsung mentors seek
Patent Donation to Improve Quality of Life
sung employees, beneficiary students, their teachers, and the
Samsung Electronics released a total of 26 accessibility-
general public. The event offered opportunities for attendees to
related patents to the public, including features like ‘Cell
reflect on the preceding years’ social impact programs and share
Phone Text-input System based on Sight Recognition.’
ideas on volunteer services for 2013. For example, an elementary
In releasing these patents, Samsung allows entities to
school student at the concert discussed the life-changing ben-
utilize these accessibility functions within their own
efits of the Galaxy Note 10.1 he received through the company’s
product development free of charge. Believing that this
Smart School Solution. The lessons shared at the Nanum Concert
arrangement will make significant contributions to the
will continue to inspire the aspirations of its many at-risk youth
welfare of people with disabilities, Samsung Electronics
attendees.
will continue to maintain the policy of releasing accessibility-related patents into the public domain.
40
2013 Sustainability Report
Samsung Electronics
41
Material Issue
Shared Growth
with Suppliers
Shared Growth
Increasingly, shared growth between big and small businesses is becoming a matter of global significance. The worldwide information communications technology (ICT) market is witnessing intense competition between business groups rather than individual companies. As a result, networking between companies has gained even more significance in the ICT sector, where a single
supplier’s technological competence can have considerable impact on a larger enterprise’s competitiveness. Samsung Electronics works to implement principles of shared growth with its suppliers in order to create a mutually beneficial business ecosystem with them.
Number of suppliers with which
Samsung signed Shared Growth
Contracts
Laying the Foundations for Shared Growth
support to partner suppliers, understanding that the
•joint component development
5,392
growth of its suppliers directly translates to improve-
•access for partner suppliers to Samsung’s patented
Suppliers
•incentives for primary suppliers that excel in the im-
Samsung Electronics and its subsidiaries offer strategic
plementation of the group’s shared growth principles
ments in its own competitiveness. In August 2011,
technologies at no cost
Samsung announced its ‘Plans to Implement Mutual
•help with applications for technology patents
Growth,’ under which it pledged the following:
In March 2012, a total of eleven Samsung subsidiaries
•financial support for its primary and secondary sup-
enacted shared growth contracts with 3,281 primary
pliers
suppliers who, in turn, contracted with 2,111 second-
•support for secondary suppliers’ efforts to enhance
competitiveness
ary suppliers. Samsung has announced ‘The Five Major
Implementation Actions’ to assist secondary suppliers.
•the opening of doors to new prospective suppliers
This implementation roadmap draws from the founda-
•support for ‘small but strong’ global small to medium
tion that Samsung Group has provided for exemplary,
enterprises (SMEs)
shared growth-driven supplier relationships.
•contests for new technologies
Seven Implementation Plans by Samsung and Five Implementation Actions by Primary Suppliers
Seven Mutual
Growth
Implementation Plans
Samsung
Electronics
Primary
Suppliers
Responsive adjustment of raw
material price changes
Creation of the KRW 1 Trillion
Supplier Mutual Fund
Secondary and
tertiary suppliers
42
2013 Sustainability Report
Secondary
Suppliers
Elimination of promissory notes in
excess of 60 days and more frequent
payment for materials and services
Adoption of standard subcontracts;
exclusive use of written contracts; and
adoption of reasonable unit prices
Sharing information on price
changes due to raw material costs
with secondary suppliers
Introduction of the ‘Global
Support of secondary suppliers in
Best Company’ system that
the areas of technology, quality, and
showcases best practices
training
Drastic expansion trade door to
growth
together
Primary Suppliers’ Five
Implementation Actions
SMEs with strong capacity
Eradication of illegal or indecent acts
including bribery and any attempts
to unethically affect or influence
business transactions
Technical support including
establishment of the Joint
Technology Development
Support Center
Support for suppliers’ efforts
to hire and train qualified
technicians
Samsung Electronics
43
Material Issue
The Shared Growth Fund
Primary Suppliers
424.9billion
292companies
KRW
Secondary Suppliers
294.6billion
354companies
KRW
‘Small but Strong
Companies’ by 2015
50
SMEs
Mutual Growth Fund
2013, Samsung Electronics selected 14 suppliers out of
In October 2010, Samsung Electronics created a supplier
39 candidates as Small but Strong companies, and the
support fund, known as the ‘Mutual Growth Fund,’ in
company has plans to select a total of fifty new suppliers
collaboration with Industrial Bank of Korea, Woori Bank
for the program by 2015.
and Korea Development Bank. The fund has provided
Sales Growth through the
Innovative Technology
Company Council (ITCC)
47
530
ness partners. Samsung Electronics offers such compa-
enhance their management competence at the global
nies a variety of supportive measures including financ-
level.
ing, technology development, and the facilitation of
advancements into new business areas. So far, a total of
forty-seven companies have joined the ITCC and experi-
loans to Samsung’s suppliers for investment in their
New Technology Contest
plants, equipment, R&D, and operations. The Mutual
Since September 2011, Samsung Electronics has held
Growth Fund pays the bank interest incurred by Sam-
new technology contests in an effort to honor SMEs’
sung’s suppliers from the fund’s cash assets of KRW 400
valuable contributions to advancing technology. To date,
billion. In 2012, Samsung Electronics supported 646 sup-
Samsung has contributed KRW100 billion to the Large
pliers with bank loans totaling KRW 719.5 billion.
& Small Business Cooperation Foundation to support
pliers is designed to help the company share its expe-
technology development by SMEs armed with innova-
rience and expertise with its suppliers in order to help
companies
Billion
KRW
enced an increase of KRW 530 billion in sales.
Management Advisory Council for Supplier
Composed of ten experts in a variety of fields, the Samsung Electronics Management Advisory Council for Sup-
Fostering Small but Strong Companies
tive ideas and technologies but lacking sufficient fund-
In August 2011, Samsung held a ceremony to mark
ing. Any SME from across the IT industry can apply for
the beginning of its formal supplier support program.
the development funds, as the contests are not limited
Through the program, Samsung Electronics provides se-
to Samsung and supplier employees. Four SMEs were
Professional counseling by
Exclusive expert counseling
Strategically sharing excellent Sharing creative techniques
selected as beneficiaries in January 2012, followed by
experts in five areas (since
(primary & secondary
Samsung cases and holding
and assistance to promote
an additional 24 SMEs that have received a total of KRW
2009)
suppliers)
seminars on matters of
innovative tasks (members of
interest
the Supplier Council)
lect suppliers with comprehensive support in the areas
of financing, personnel and manufacturing technology
14 SMEs selected as of 2013
meant to assist partners in securing global market share
17.2 billion in grants for the development of innovative
• Technology: joint
in their respective business areas. Samsung’s latest
technologies.
development and mass
support commitment is different, from the temporary
production
engagements of the past, in that it is based on a long-
ITCC
• Funds: KRW 36.6 billion
term partnership road map. Following thorough audits
Launched in 2010, the ITCC is Samsung’s unique mu-
• Personnel: Consulting in
of each supplier’s status, full support is provided in the
tual benefit system with SMEs. It is designed to discover
the areas of management,
areas of technology, financing, logistics, personnel man-
startups or well-established SMEs with outstanding
technology, and production
agement, and business management infrastructure. In
technological competence and to foster them as busi-
Performance Achievements of the Management Advisory Council for Suppliers
Personnel/training;
701 counseling sessions for
40 annual strategic sessions
Counseling for 160 suppliers’
Management innovations;
32 firms in 2012 (personnel
on personnel, management,
innovation tasks in 2012 (KRW
Purchase/management;
system, innovations,
R&D and manufacturing
20.5B in expected financial
Technology/development;
productivity improvement,
and Manufacturing/ quality
etc.)
results)
Samsung Electronics Supplier Jobs Fair
(110 people per year)
Samsung affiliate
Current Status of the New Technology Development Contest
19
%
55
increase
companies
3.8X
increase
KRW
17.2B
11
companies
KRW
11.1B
Partners involved
Selected number
of partners
4
2012
Samsung Electronics provided KRW 530M
to JAHWA Electronics’ imaging business.
department for research on image stabilization
and shutter integration. In October 2012, the
new technology began to be applied to mass-
44
2013 Sustainability Report
2012
As of the end
of 2012
Success Story #1
production processes.
158
The amount
of support
companies
As of the end
of 2012
Success Story #2
Samsung Electronics offered KRW 430M to
K&J’s semiconductor research lab for the
development of a package grinding facility for
In May 2012, Samsung Electronics held a specialized job fair in Korea for its suppliers that were having
difficulties hiring qualified personnel. Some 158 suppliers took part in the fair. Samsung Electronics also
semiconductors.
provided new recruits at the fair with high-quality new employee orientation similar to the ones it offers
The two companies have filed nine patent applications.
to its own new recruits.
Samsung Electronics
45
Material Issue
Personnel Management
Fostering Talent
for a Sustainable
Future
High unemployment remains a serious social issue in many parts of the world. Samsung Electronics
firmly believes that fostering talent is the surest investment in its own future capabilities. Samsung
does not discriminate on the basis of gender, sex, race, or background in its hiring practices. Samsung Electronics always paces their people first, ensuring company growth.
the Device Solutions (DS) unit, for example, the company
established the Samsung Software Center, a hub for software in the area of components. The research center is
tasked with advancing the development of next-generation software platforms, creating embedded software,
and training software engineers. Samsung Electronics also piloted a few temporary organizations in 2012,
such as the Creativity Development Research Lab, in
order to augment the company’s creative organizational
culture. At the beginning of 2013, Samsung completed
Samsung Electronics Human Resources
these pilot programs and awarded certain temporary
(Unit: persons)
74,168
4years
organization permanent status. These creative groups’
Samsung Electronics Daycare Center
accomplishments, including the eyeCan (a mouse for
increase
Daycare Centers in Korea
run by Samsung Electronics
2009
235,868
161,700
2008
As of the end of 2012
2012
the people with disabilities that can be manipulated by
Organizational Culture based on Communication
and Collaboration
movements of the eye) and a bike for the blind have
Samsung believes that a company’s growth directly re-
within the enterprise, Samsung Electronics has created
lates to positive personnel policies that encourage em-
specialized accelerator teams and a startup incubating
ployees to grow alongside their ongoing contributions
center. The company has also set up creative teams in lo-
to the business. The organizational culture of Samsung
cations known for their creativity and innovation, including Silicon Valley and New York City. Finally, Samsung
flow of creative ideas among all of its various employees.
Electronics entrusts Open Innovation Centers installed at
been well received. In further efforts to drive creativity
7Centers
1,074
10Centers
1,434
Electronics values employee diversity, promoting the free
Such a variety of opinions and backgrounds allows Sam-
major business units with carrying out small-scale merg-
Children
Children
sung to remain competitive in the similarly diverse global
ers and acquisitions.
marketplace.
In order to promote flexibility and accommodate emGlobal Youth
Unemployment Rate
18%
12.7%
EU
Global
ployees’ work-life balance, Samsung provides onsite
childcare and telecommuting opportunities for parents.
Open Recruitment for the Underserved
traditional graduates alike. Since 2011, Samsung has also
In 2012, Samsung Electronics adopted policies that creat-
employed people with disabilities as part of its annual
ed responsible hiring practices benefitting underserved
recruitment efforts. Moreover, the company collaborates
Expanded Facilities for Employees with
Disabilities
populations such as those living in impoverished or re-
with the Korea Employment Agency for the Disabled to
Samsung is hiring an increasing number of employees
mote areas. In Korea, Samsung Electronics assigned 35%
hire additional talent. Samsung will increase its employ-
with disabilities and is committed to building facilities
of its annual college recruitment allocation to schools in
ment of people with disabilities in the future.
that accommodate them. As of the end of April 2013,
rural areas and another 5% to people from low-income
Faster promotion at Samsung is now open to all employ-
Samsung employs a total of 1,213 people with disabilities.
households. To that end, the company held career ori-
ees including high school graduates. In the near future,
The company has introduced Samsung Barrier Free (SBF),
entation sessions in all major regional universities across
high school graduate employees could be promoted
an internal building standard that eliminates all the
Korea to ensure that career information was fully shared
at an accelerated rate according to their performance,
physical barriers throughout its facilities. So far, ten Sam-
with the country’s college students. Samsung Electron-
reaching the new college graduate rank in just three to
sung buildings have acquired Rank-1, the highest rank
ics created special employment opportunities to ben-
five years.
of SBF. The company has also arranged for more staff
efit those whose households fall in the two bottommost
members with disabilities to use business class seats
income brackets. Since 2011, Samsung Electronics has
on planes. Samsung’s human resources team includes
employed graduates of specialized vocational schools
experts in disability studies who are responsible for the
to help promote an egalitarian view of vocational and
ethical recruitment and accommodation of people with
Development of a Bike for the Blind
Issue
Despite a desire to engage in travelbased recreational activities, people
with visual impairment are limited
in the vehicles they may operate
Idea
To make a bike that uses sonar
technology to automatically avoid
obstacles
disabilities.
Establishment of a Creative Organizational
Culture
At the end of 2012, Samsung Electronics carried out a
number of organizational reforms for the purpose of
Development of a bike for the blind
Results
that uses two cameras to scan
the environment and emits a
warning sound when
confronted by obstacles
boosting the organization’s creativity and vitality. Under
46
2013 Sustainability Report
Samsung Electronics
47
Material Issue
Eco Product Story
Pursuit of
‘PlanetFirst’
Samsung Electronics places a high priority on environmental sustainability, and this company-wide
value led to the development of its PlanetFirst initiative. By bringing eco-friendly products and
green technologies to market, Samsung continues to contribute to worldwide sustainability efforts.
Creating New Value through Eco Innovation
is given a rating prior to approval for mass production.
Samsung continues improving the eco-features of its
In the areas of materials and packaging, Samsung has
products by enhancing their energy efficiency, upgrad-
achieved outstanding results . The company will contin-
ing their recyclability, and restricting the use of hazard-
ue making improvements through the continued launch
ous substances in production. Since 2006, Samsung
of products that minimize impact on the environment.
Electronics implements an ‘Eco-Design Process’ to evalu-
Eco
Product
ate the eco-friendliness of a new product at the development stage. During the process, each new product
Eco-Design and Eco-Product Rating Process
Resource
Efficiency
Environmental
Energy
Impact
Efficiency
'Connection to existing
quality'certification
Eco Design Manual
Concept
Targets
Plan
Evaluation and improvements
Development
Final verification
Eco-Product Rating System
Mass production
More than four superior qualities
m
Premiu
uct
d
o
Eco-Pr
Eco-Design Process
Good
duct
Eco-Pro
: Innovative Eco-Product
Two or three superior qualities
: Qualifies for environmental marks
One or less superior qualities
oduct
Eco-Pr
: Compliant with regulation standards
Environmental Responsibility throughout Product Life Cycle
Purchase
· Eco-Partner
certification system
(management of
hazardous materials in
the supply chain)
48
2013 Sustainability Report
Development &
Production
· Implementation of
Eco-Design process &
eco-rating system
· Operation of clean
production processes
Distribution
· Green logistics
· Weight reduction in
packaging materials
Use
· Improved product
energy-efficiency
Disposal
· Establishment of
waste collection and
recycling system
Samsung Electronics
49
Material Issue
Eco-friendly product development and launch
Samsung introduces products using green technologies in order to decrease its use of hazardous materials while
saving both resources and energy.
2,926 Global Environmental Certifications
557
Nordic Swan Sweden
809
380
Korea Eco-Label
EPEAT, U.S.A.
Green Product Highlights
LED TV
Smartphone
ES6500
Exhilarate
•Energy Frontier (Korea)
•PCM 80%
•Super Efficiency (Australia)
•BFR/PVC/Beryllium/
•EPA Energy Star Certified
(U.S.)
Phthalate Free
•UL Platinum Certification
Mono Printer
S27B750
Polaris
•17% reduction in electricity
•Green Technology
Certification
•Electricity-saving Software
•30% energy saving
compared with former
former models
•EPA Energy Star 6.0
Certification (U.S.)
Other Environment
certifications
China Environmental
Labeling
Monitor
usage compared with
281
632
•EU Energy Efficiency A+
267
Eco Flower, EU
Most Number of Environmental Certifications
Earned in IT Industry
models
Blu-ray Disk Player
Notebook PC
BD-E5300
NP900X3B
•24% reduction in electricity
•Thin & light design uses
usage compared with
former models
•EPA Energy Star 3.0
56 Global Carbon Footprint Labels
as of the end of 2012
fewer materials
•BFR/PVC Free
•EPEAT, TCO certified
Certification (U.S.)
Korea
U.K.
Japan
Refrigerator
Air Conditioner
43 Carbon Footprint Labels
5 Carbon Trust Certification
1 Carbon Emissions certi-
RF263TEAESP
AF-HD253
7 Low-carbon Certification
• Inverter, vacuum
•High Efficiency Inverter
ronmental Management
•Energy Efficiency Level 1
Association for Industry)
insulation installed
• EPA Energy Star Most
fied by JEMAI(Japan Envi-
(Korea)
Efficient rating (U.S.)
Washing Machine
Camcorder
WF455A
HMX-Q20
•Lowest energy usage in
•Manual printed with
U.S. (90kWh/y)
•Low temperature washing
technology
vegetable ink
•High Efficiency Adaptor
19 Green Certification
11 Awards for Samsung’s Eco-Friendly Products
Certification of 19 technologies including
4 Europe, 3 The USA, 3 Korea, 1 China
as of the end of 2012
a 35nm low-powered, large-data capacity
mobile DRAM semiconductor for
smartphones
SEAD Global Efficiency Medal Award
Two LED TV Models (UE26EH4000, UE40EH5000)
SEAD Global Medals awarded to two highly-efficient
flat-panel TVs available in four major geographical
regions (North America, Europe, Australia, India)
50
2013 Sustainability Report
Samsung Electronics
51
Water Management
Material Issue
Water Resource
Conservation
Efforts
Approximately 1.1 billion people around the world suffer from water shortage on a daily basis. Furthermore, it is expected that 40% of the world’s population will experience a severe water shortage by 2050 according to the OECD Environmental Outlook for 2050 released in August 2012. In order to uphold its position as a global leader in the IT industry, Samsung Electronics has established
water resource management policies and conservation goals enterprise-wide. In order to achieve
its business objective of responsible water management, Samsung collaborates with a set of global
partners in implementing effective reduction policies. In 2012, the company set up comprehensive
water conservation plans and expanded its efforts to reduce the consumption of water resources
around the world.
Courses of Action
Water Resource Risks
Water Resources status
(unit: 1,000 tons)
Using the water resource management tools distributed by the FAO (Food and Agriculture Organization) and the
WBCSD (World Business Council for Sustainable Development), Samsung Electronics has identified the water resource
risks in its 34 owned manufacturing plants. According to the recommendations of Carbon Disclosure Project, Samsung
has analyzed each water resource risk associated with its business sites in countries suffering severe water stress and
has developed differentiated emergency countermeasures for each site.
Water Inflow
68,636
Regional Water Intake Quantity
Region
■ Industrial Water 49,003
■ Municipal Water 18,806
827
■ Ground Water Strive to minimize water risk impact by our business activities.
1
Samsung Electronics
withdrawal
Discharge
Water stress countries (number of Samsung
Subsidiaries
(unit: 1,000 tons)
(unit: 1,000 tons)
business sites within the countries)
Asia
25
61,604
49,601
The Americas
5
6,721
4,850
Europe
4
311
139
activities and services make on water resources
Risk Management
54,590
Description
Physical
Risks
Instill an awareness of the importance of water resources as a part of our corporate culture.
Risk Countermeasures
Water quality degradation •Assurance of water quality throughout Water pre-treatment process
Floods
•Creation of wetlands, establishment of embankments, and subscription to natural-disaster insurance
Water supply disruptions
•Building dual main water supply lines and sufficient water storage facilities to prevent disruptions of work
Integrate the importance of water resource protec-
2
tion and sustainability management into the corporate culture and ensure responsible water resource
management by employees with the highest consideration for the impact on local communities and
Samsung Electronics recognizes the
importance of water resources in the
sustainability of society and
business management, and
contributes to its protection as a
responsible corporate citizen of global
community.
the environment.
■ Internal Treatment Facilities
44,220
■ External Treatment Facilities
10,370
Proactively cooperate with public water policies.
3
Regulatory Changes in regulations on •Establishment of internal regulations on discharge concentration that
water usage & disposal
are stricter than legally required; increased water recycling to reduce
Risks
discharge quantity
Proactively contribute to the establishment and im-
Efficiency standards
plementation of water resource management poli-
legislation
•Evaluation of water efficiency for new facilities; investments in existing facilities for water efficiency improvements
cies by international institutes, the government and
Uncertainty over new
•Continuous monitoring of global environmental legislation trends
local authorities in line with relevant guidelines.
legislation
Reputation Disposal of wastewater
Risks
Disclose our policies and activities on water re-
4
source management.
Wastewater leakage, etc.
Disclose company policies and activities related to
water resource use to stakeholders including local
communities in a transparent manner.
Recycling rate
Water Intensity(Withdrawal/Sales)
(Unit : ton/100 Million KRW)
91
86
68
Korea
74
Poland (1)
Water Discharge
new technologies.
Basic Philosophy
Korea (6) and India (2)
※ FAO water resources management tools were used.
Analyze the impacts of our products, production
and minimizerisks by identifying and implementing
Water Resource Policies
Number of
•Continuous monitoring of discharge water and early establishment of environmental management system (EMS) for new manufacturing facilities
•Operation of emergency response organizations and enhanced internal and external communication about the company’s water resources
management
Reuse of Water
Water Resource Conservation Efforts
42,104
Samsung Electronics’ water resource conservation ef-
and recycling facilities. In 2012, Samsung Electronics con-
forts can be divided into two broad types: minimization
served a total of 42,104 thousand tons of water through
of water inflow through manufacturing process efficien-
the following water resource conservation efforts.
K tons
cies and optimization of water use through retreatment
Global
Samsung Electronics’ Water Resource Conservation Efforts
39 41
2010
2011
2012
61.9%
Korea
61.3%
Global
Optimization of water management
processes for utility systems and
semiconductor production
Installation of discharge water
treatment systems for optimum
recycling
Use of discharged water in other
processes
✽Excluding LCD and including LED business
52
2013 Sustainability Report
Samsung Electronics
53
Material Issue
Enhanced
Supplier
Compliance
Supplier CSR
As human rights issues such as labor conditions and working hours continue to be a matter of global
Site Audits of Suppliers in China
Samsung Supplier Code of Conduct
In September 2012, Samsung Elec-
In November 2012, Samsung Electronics established a
tronics embarked upon site audits
code of conduct for its suppliers based on EICC guide-
of its 249 major supplier compa-
lines. To prevent child labor in accordance with the man-
lish compliance verification systems. In 2011, Samsung increased its supplier standards for compliance
nies in China to assess their sta-
dates from the International Labor Organization and
as part of the company’s annual supplier evaluations. It order to assure full compliance with Samsung
tus in the areas of human rights,
many other international institutions, Samsung has pre-
working conditions, and envi-
pared a special policy and asked all its suppliers to sign a
concern, Samsung Electronics strongly urges suppliers throughout its supply chain to comply with the
EICC code of conduct. Since 2009, Samsung Electronics has supported its suppliers’ efforts to estab-
and EICC standards, the company also mandates third party supplier audits conducted by indepen-
ronmental protection. The audit teams held interviews
dent agencies. In 2012, Samsung Electronics recognized the ever-increasing importance of compli-
with each and every laborer aged 18 years or younger.
ance management and set up a dedicated organization to deal with the issue extensively.
Of note, Samsung found no worker at any of its suppli-
compliance agreement.
ers under the age of 16. Auditors did, however, observe
irregularities such as overtime work beyond the legal
limits, failures to deliver employment contracts to workers, excessive dependence on temporary workers, and
discrimination in employment. In addition, some suppliers failed to install emergency rescue kits and imposed
unreasonable penalties on workers. Samsung is working
with the suppliers to eliminate these compliance infractions and implement policies that prevent future labor
rights abuses.
The signboard hanging ceremony for eradication child labor
Reinforced Supplier Audit
The management and training
for supplier compliance
54
2013 Sustainability Report
agement professionals, purchase experts, and certified
In September 2012, Samsung Elec-
EICC auditors. Of note, Samsung found no worker at any
tronics embarked upon site audits
of its suppliers under the age of 16. Auditors did, how-
of its major supplier companies in
ever, observe irregularities such as overtime work be-
China to assess their status in the ar-
yond the legal limits, failures to deliver employment con-
eas of human rights, working condi-
tracts to workers, excessive dependence on temporary
tions, and environmental protection.
workers, and discrimination in employment. Samsung
The audit teams were composed of experts in a variety
is working with the suppliers to eliminate these compli-
of areas, including lawyers, certified labor consultants,
ance infractions and implement policies that prevent fu-
experts in environmental safety, personnel & labor man-
ture labor rights abuses.
Establishing a Dedicated Supplier Compliance
Organization
itors its domestic and international suppliers’ progress in
Recognizing the importance of supplier compliance with la-
they are meeting the requirements put forth by Samsung
bor rights guidelines, Samsung Electronics has set up a ded-
Electronics and the global electronics industry. Samsung is
Samsung Electronics will continue conducting regular
any observed violations. In the case of violation, Sam-
icated organization to manage routine supplier compliance
planning to set up internal supplier compliance networks
and unannounced site audits of its suppliers using per-
sung adopts a zero-tolerance policy and will suspend
audits. The organization works to minimize risk throughout
within its broader shared growth centers in order to help
sonnel resources and demand corrective measures for
transactions immediately.
Samsung’s supply chain while protecting the human rights
make improvements incompliance management. The net-
of its suppliers’ workers. The organization continually mon-
work will soon begin its overseas operations in China.
the area of compliance management to determine whether
Samsung Electronics
55
Material Issue
Health Program
for Employees
and Safety
Initiatives
Health & Safety Safety Management
Samsung Electronics places heavy emphasis on the safety of its employees’ safety and health. As
such, the company continually strives to keep health and safety policies through careful monitoring
and improvement procedures meant to guarantee the safest work environment possible. As part
of this monitoring practice, Samsung identifies potential safety hazards and proactively fixes corresponding problems.
Environment and Safety risk Assessment
Samsung Electronics works to preserve the environment by reducing harmful pollutants. Samsung conducts regular
environmental impact studies and strictly complies with the regulations and guidelines of international organizations
such as the United Nations and environmental NGOs.
Information collection
Safety
Risk Analysis
Take Action
Monitoring
Environmental Accident Response Systems
Samsung Electronics has prepared scenarios that include proactive countermeasures for environmental pollution,
toxic chemical spills, fires, explosions, and natural disasters. It conducts regular emergency drills in order to prepare
employees and minimize potential damage. In the event of an environmental accident, Samsung deploys additional
crisis response teams that block the spread of damage by implementing prepared emergency measures.
In order to ensure safe and immediate worker evacuation in the case of a crisis, regular drills and emergency medical
treatment demonstrations are carried out for all company staff. Following any accident and its subsequent emergency
response, Samsung analyses the accident’s cause and takes all necessary preventive measures going forward.
Emergencies Response Procedure
Accident Rate (Unit : %)
Accident
Occurrence
Emergency
Measures
Investigation
& Cause
Analysis
CounterMeasures
Preventive
Measures
Employee Injury Management
Samsung conducts risk assessments according to OHSA18001(Occupational Health and Safety Assessment Series) in
all of production facilities, and continues to improve the work environment. Samsung also conducts regular education
programs to increase the awareness of Health and safety among its workers and run emergency relief system. While
the accident rates happened during work hours remained the same compared with last year, accidents happened dur-
Management
56
2013 Sustainability Report
■Non Work-related
accidents
71%
■ Work-related
accidents
29%
ing non-work hours such as sports activities take 71% of total accidents. Thus, Samsung is establishing safety guidelines for all leisure activities within the company.
Samsung Electronics
57
Material Issue
Despite every effort to maintain accident-free workplaces, a Samsung Electronics chip plant in
Hwaseong experienced a hydrofluoric acid leak at the beginning of 2013. Investigations are ongoing to determine the exact cause of the accident, and the company pledges to take preventative
measures that will avoid the recurrence of such an accident and enhance its communication channel with local communities.
The Cause of the Accident and Investigations
Present investigations have determined that the hydrofluoric acid leak was most likely due to faulty valve gaskets on
Total Healthcare Program
Samsung Electronics plans to set up total healthcare program to provide suitable medical service to the employees.
Total Health Care
Total
Health Care
Health
Data
Wellness
Program
the hydrofluoric acid storage tank. Official investigations by the authorities, the Ministry of Labor and Employment,
and the Ministry of Environment have not yet been concluded. The company will readily evaluate these third-party results and take all necessary measures to overhaul the plant’s systems. According to results from the National Institute
of Environmental Research, which has thoroughly analyzed the air in and around the Hwaseong plant, hydrofluoric
acid did not spread outside the plant premises. Samsung Electronics plans to enhance the precautions in its plants as a
result of this accident in commitment to both workplace and environmental safety.
Improvements
1. Organizational
Enhancement
2. Overhaul of Standards for Plant
Construction and Maintenance
exercise center
• Mental health programs
Wellness Programs
Clinic
Prevention of Cerebral and Cardiovascular Disease
sung will request that government
(Occupational, internal medicine, Family Practice)
Obesity Clinic
agencies conduct regular and unan-
•Routine Medical Treatment
•Obesity level test, body mass indices analysis,
inspections before the end of the
workplaces in terms of environmental safety.
2 Overhaul of Standards and
Procedures
nounced audits of company facili-
Samsung Electronics will complete
maintenance. The company will also
an overhaul of its internal standards
intensify its 24-hour monitoring of
•Emergency Services
and procedures for engineering,
gas and chemical leaks at both Gi-
•Dental & Acupuncture
construction, and maintenance at its
hueng and Hwaseong worksites – as
production facilities by June 2013 in
well as its offsite control center.
ties to inspect for proper workplace
Cold, indigestion
aerobic endurance evaluation
•Vaccination
•Walking Paths Promote regular exercise
Hepatitis B, tetanus, influenza
•Low-calorie Menus Encourage balanced diets
Musculoskeletal Disease
Mental Health Program
such as ASME, ANSI, and DIN.
4 Strengthened Communication with Local Communities
Prevention of musculoskeletal disease resulting
Professional Counselors
The company will launch training
Samsung has formed a council
from bad posture
•Stress assessment heart rate variability and
programs on the control of hazardous
composed of ten community repre-
•Musculoskeletal Prevention Center Exercise
substances that will be mandatory for
sentatives and company officials to
1 Organizational Enhancement
every applicable employee. Samsung
serve as a channel of constant com-
•Stretching exercise broadcasted twice daily
will also establish an internal certifi-
munication on a variety of mutually-
•Ergonomic work station improvements to
Samsung Electronics has reinforced
cation system and train specialists to
relevant issues. The company has
its organizational capacity in the
carry out long-term systematic im-
realigned its emergency contact net-
fields of environmental protection
provements in this area. In addition, it
work to include members within the
and safety promotion. In March
will reorganize its collaboration with
community, the city government,
2013, Samsung Electronics set up
public agencies in emergency cases
and emergency services.
a new environmental organiza-
and carry out biannual disaster drills
tion that convenes company safety
with these agencies.
biofeedback stress tests
•Therapy for sleep disorders and depression
programs
light therapy
•Family relations counseling and
ergonomic soundness of manufacturing processes
communication program with spouses and children
Samsung plans to set up and expand a global guideline based on Musculoskeletal Diseases tests conducted in 6 global
Manufacturing plants (Brazil 2, China 2, India, Vietnam) in 2012.
Ergonomic Management Processes
Hwaseong. The new organization,
3 Enhanced Inspections
headed by leadership at the execu-
Samsung Electronics has bolstered
tive level, has appointed two ex-
its internal inspection processes,
perts in semiconductor manufactur-
placing heavy emphasis on areas of
Current state of occupa- Analysis of physically
History of work environ- Treatment of musculo-
ing and production to manage the
past accidents such as plumbing.
tional safety & health
ment improvement
two chip plants. Once matriculated,
2013 Sustainability Report
• Musculoskeletal disease prevention
• Work-related stress assessments
first half of 2013. In addition, Sam-
transform the plants into exemplary
experts from both Gihueng and
58
• Obesity prevention and non-smoking, etc.
• Musculoskeletal disease risk factor examinations
Obesity Clinic
ganization charged with plumbing
meet requirements of global entities
3. Strengthened Internal
Monitoring
• Onsite Company Clinics
• Cerebral & cardiovascular disease risk assessments
Onsite Company Clinics
this new leadership will work to
an effort to ensure that the standards
4. Strengthened
Communication with
Local Communities
• Medical checkups
The company will set up a special or-
Status
Hazard Analysis
demanding processes
Work Environment
Analysis
records and efforts
Medical Analysis
skeletal diseases
Prevention
Degree of satisfaction with preventive
measures
Samsung Electronics
59
Material Issue
For the purpose of monitoring and analyzing our
efforts to ensure that all business activities are
aligned with sustainable development, Samsung
Electronics 몬 identified several key performance
indicators with measurable data to guide our innovation in sustainability.The following Facts &
Figures section outlines the progress we have made
across those performance areas in 2012 as well as
our plans for the future. To ensure credibility, the report contains third party assurance providing expert
opinion on transparency and levels of disclosure to
guarantee we meet internationally recognized standards of reporting. By sharing our perspective of the
challenges the global community is facing, as well
our progress in achieving our targets, we hope this
report will serve as a communication channel with
stakeholders of our progress of achieving the common goal of sustainability.
Global Corporate
leadership and
Value Enhancement
Sec. 03
Facts & Figures
62 Creation of Economic Value
68 Transparent Management
70 Talent Management
75 Social Contributions
76 Shared Growth with Suppliers
78 Green Management
60
2013 Sustainability Report
Samsung Electronics
61
Facts & Figures
Creation of Economic Value
Samsung Electronics’ Net Sales by Business
Key Financial Performance
In 2012, Samsung Electronics recorded its largest leap in year over year sales with figures totaling KRW 201.1 trillion –
an increase of 21.9% over the KRW 165 trillion posted in 2011. The company earned KRW 29 trillion in operating profits,
KRW 23.2 trillion in net income, and KRW 44.6 trillion in EBITDA while extending its market share in core business
Sales Increase of IM
(from 2011)
■ 2012
61
108.5
■ 2011
■ 2010
%
areas of TVs and mobile phones.
67.5
58.4
Sales and Financial Performance
Unit: KRW 1T
47.3 48.4
Unit: KRW 1T
40.1
37.6
37.0
34.9
29.9
Sales
201
KRW
■ 2010
201.1
trillion
154.6
■ 2011
■ 2012
Consumer Electronics
IT and Mobile
Semiconductors
29.2
33.0
Display Panels
165.0
44.6
29.0
16.8
Sales
15.8
15.6
Operating Profits
28.2
23.2
29.2
Sales by Region
Sales by Region
Geographically, the sales of mobile phones and TVs have skyrocketed in the Americas, Europe and Asia.
13.4
Net Profits
14%
EBITDA
LSI; and the Display Panels (DP) sector, which comprises the business units that produce and sell display panels for a
variety of key products such as TVs, monitors, notebook PCs, and smartphones.
29%
2010
2011
2012
25.9
26.5
29.2
Americas
43.5
47.5
58.2
Europe
36.0
39.0
49.5
■ Americas
Asia
24.9
28.8
36.1
■ Europe
China
24.3
23.1
28.2
25%
Samsung Electronics has a diverse business portfolio consisting of: the Consumer Electronics (CE) sector, which en-
multimedia phones, ICT systems, and cameras; the Semiconductor sector, which encompasses memories and system
2012
Korea
Performance by Business
tors; the IT and Mobile (IM) sector, which includes businesses that specialize in mobile phones like smartphones and
Unit: KRW 1T
Performance by Region
18%
compasses the business units that manufacture and sell digital TVs, monitors, printers, air conditioners and refrigera-
14%
■ Korea
■ Asia
■ China
Sales Proportion by Business Division
Major Products and Global Market Shares (*)
■ Consumer Electronics
Sector
■ IT and Mobile
16%
26%
■ Semiconductors
■ Display Panels
15%
22%
Consumer
Electronics
20%
2011
38%
16%
2012
47%
In CE, Samsung Electronics maintained the world’s highest market share for the seventh consecutive year thanks to
increased sales in LED, LCD, and PDP televisions. Within the IM sector, sales increased by KRW 41.0 trillion thanks to
IT and Mobile
Unit: %
Product
2010
2011
2012
TV
18.2
19.3
21.1
20.6
21.2
25.1
Mobile
phones
Semiconductors
DRAM
37.4
42.2
41.0
Display Panels
TFT-LCD
25.7
26.1
25.4
Remarks
Global market shares according to
DisplaySearch
Global market shares according to Strategy
Analytics (based on phone numbers)
Global market shares according to iSuppli
(based on sales amount)
Global market shares according to
DisplaySearch (based on sales amount of large
models)
the successful launch of premium mobile phones in the global market. The Semiconductor sector was affected by slow
market conditions from the persisting global recession, recording sales decreases of KRW 2.1 trillion. Sales in Display
Panels rose by KRW 3.8 trillion thanks to the sector’s continued competitiveness in the global marketplace. The trends
* The market shares above are based on the statistics released by various independent market research firms (e.g.
Display Search, Strategy Analytics, and iSuppli).
of sales and operating profits during the last three years are as follows:
62
2013 Sustainability Report
Samsung Electronics
63
Facts & Figures
Creating Economic Value
As semiconductor and display panel production are capital intensive businesses which require large, time-sensitive
investments in facilities to maintain competitiveness, major investment decisions are made by the Management Com-
Samsung Electronics created the following economic value in 2012.
mittee. With full authority from the Board of Directors, the Management Committee holds hearings with relevant ex-
Summary of Economic Value created by Samsung
2010
2011
2012
154,630
165,002
201,104
Other Profits*
9,732
8,803
8,823
Other Costs**
(6,900)
(6,977)
(7,100)
Sales
Depreciation Costs***
Economic Value Created
ecutives and outside experts before deliberating. In 2012, Samsung Electronics invested KRW 24.1 trillion in production
Unit: KRW 1B
(11,394)
(13,592)
(15,622)
34,311
32,730
48,547
facilities for semiconductors and display facilities including intangible assets.
Unit: KRW 1T
Facility Investments
101%
100%
■ Proportion
63%
■ Total investments
24.1
■ Cash flow due to business activities
* ‘Operating Expenses’ refer to all payments made by Samsung Electronics for goods and services needed for produc-
23.9
tion and sales.
23.2
38.0
** Other profits include: interest/dividends for investments in financial goods, equity profits from the performance of
invested companies (subject to equity method laws), and foreign exchange gains.
*** Interest expenses are excluded from financial expenses.
Significant investments in R&D and production facilities are central to Samsung Electronics’ value creation. In 2012,
Samsung invested KRW 11.9 trillion, or 5.9% of its sales, in R&D to enhance its competitiveness and develop future
technologies. Thanks to such considerable investments in R&D, Samsung has been able to launch innovative products
from each of its business segments year after year.
12
KRW
Total Economic
Value Distributed to
Stakeholders
trillion
Unit: KRW 1T
R&D Investments
6.1%
6.2%
5.9%
■ R&D investments
11.9
■ Sales
10.3
9.4
154.6
2010
2011
2012
In line with the company’s belief in co-prosperity, the economic benefits of Samsung Electronics’ operations directly
filter through to its various stakeholders, as evidenced below:
201.1
187.2
KRW
trillion
Unit: KRW 1T
Economic Value Distribution
Stakeholders
■ Proportion
22.9
Distribution of Direct Economic Value
Investments in R&D and Production Facilities
R&D Investments
23.8
Items
Labor Costs
Government
Taxes & Dues
Suppliers
Purchase cost***
2011
2012
14.5
16.9
3.8
4.2
7.0
111.7
120.5
138.7
CSR****
0.2
0.3
0.2
Creditors
Interest Expenses
0.6
0.6
0.6
Shareholders
Dividends
1.5
0.8
1.2
Retained
Earnings
14.7
12.9
22.6
146.1
153.8
187.2
Local
Community
**
Distributed
Economic Value
165.0
2010
13.6
Employees
*
* The
total sum of salaries, severance payments and fringe benefits included in the cost of sales, R&D costs, and
administrative expenses.
** The total sum of consolidated corporate taxes paid, other taxes, and dues calculated on an accrual basis.
*** The total sum of social contribution expenses paid including donations and other expense accounts.
**** The total amount of economic value created.
Employees
Economic value distributed to Samsung Electronics and subsidiary company employees consists of salaries, retirement
2010
2011
2012
settlement packages and employee benefit expenses. Personnel expenses have increased by 16.5% in 2012 compared
to the previous year.
64
2013 Sustainability Report
Samsung Electronics
65
Facts & Figures
Samsung Electronics Consolidated Personnel Expenses
Employees/Personnel
Expenses
Local Communities
In 2012, Samsung Electronics and its subsidiaries donated KRW 245 billion to local communities. In Korea, it contributed KRW 51.3B, KRW 53.8B, and KRW 77.4B in the areas of culture & arts, talent education, and social welfare, re-
■ Employees/Personnel
Expenses
16.9
KRW
Unit: KRW 1T
2010
spectively. More than 1,200 teams visited social welfare facilities across the country and provided a variety of volunteer
13.6
services with a corporate allocation of KRW 3.6 billion. Samsung Electronics spent KRW 42.9 billion on foreign aid in
2012, with its support mostly comprised of education content generation and the placement of medical professional
2011
trillion
14.5
201.1
2012
and educator volunteer service teams.
Samsung Electronics Contributions to Local Communities
16.9
Increase in CSR
Expense Abroad
(from 2011)
Taxes and dues paid to the governments of Korea and other countries by Samsung Electronics and its subsidiaries in
2012 increased by 67.0% in relation to a 2011 baseline. Geographically, Samsung Electronics paid 65% of its total taxes
and dues to the government of Korea, which is home to its corporate headquarters. The outstanding amount was paid
294
■ Total
259
■ Korea
69
245
233
■ Abroad
Government
Unit: KRW 1B
208
35
25
to the governments in Asia (home to many Samsung manufacturing plants) and America and Europe (where Samsung
sales subsidiaries are situated). Samsung Electronics has also received direct and indirect subsidies for its investments
186
59
%
2010
2011
2012
in R&D and production facilities. These subsidies include both reductions in tax (corporate and/or local) and infrastructure support. Samsung received subsidies from the Korean government and governments in the countries in which its
Creditors
production subsidiaries are located.
The interest expenses paid by Samsung Electronics and its subsidiaries rose slightly in 2012. Interest returns increased
2012 Taxes and Dues by
Region
Regional Taxes and Dues Paid by Samsung Electronics
■ Korea
■ Corporate Tax
■ Asia
■ Tax and Public Dues
by KRW 139.7 billion in 2012 compared to a 2011 baseline.
Unit: KRW 1B
Samsung Electronics Interest Revenues, Interest Expenses and Net Interest Expenses
6,070
2010
■ America/Europe
■ Others
2%
3,433
3,182
2012
Interest Revenues
558
706
845
Interest Expenses
581
644
599
23
(62)
(246)
Net Interest Expenses
900
13%
627
20%
2011
Unit: KRW 1B
749
Shareholders/Investors
2012
2011년
Dividends paid by Samsung Electronics and its subsidiaries increased in 2012 due to the increase of net profits. There
was no buy-back in 2012.
65%
2010
2011
2012
Samsung Electronics’ Consolidated Dividends, Pay-out Ratio and Buy-back
2010
Dividend
Dividend
120.7
KRW
66
2013 Sustainability Report
billion
Pay-out Ratio
*
2011
Unit: KRW 1B
2012
1,497
827
1,207
9.5%
6.2%
5.2%
* The Total Pay-out Rate is the rate of cash distributed to shareholders or investors in the form of dividends (or net buy-back)
from net profit during the given term (dominant firm’s equity ownership).
Samsung Electronics
67
Facts & Figures
Transparent Management
Strengthening Policy Measures for Compliance Management
Ethical Management Website
Legal compliance and business ethics become increasingly important as Samsung Electronics expands its business
Since 2002, Samsung has managed a website that offers information on ethical business management and provides
to global markets. Thus, Samsung Electronics established a compliance team in 2010 to strengthen and stabilize the
an external reporting mechanism. The dedicated reporting system (http://sec-audit.com) allows external stakehold-
compliance management structure. In 2011, the team changed its name to Global Legal Affairs & Compliance Team and
ers to report unethical business conduct by Samsung Electronics employees. Information submitted is reviewed and
expanded its staff to reinforce compliance management further.
classified into different categories for action. The site is operated in thirteen languages, including Korean, English,
Number of Compliance professionals
Chinese, Japanese, and Polish.
Unit : Persons
300
270
Number of Reports on Unethical Business Conduct Submitted in the Past Three Years
200
Number of Reports
Submitted in the Past
Three years
2010
2011
1,404
2012
Raising Internal Awareness of Compliance
In 2012, Samsung Electronics reinforced the compliance training by enhancing the quality of training materials and
diversifying the curriculum.
Expanding the Curriculum and Participants
2010
Unit: cases
472
2011
579
2012
353
Unit : Persons
After careful review of each reported case, Samsung took steps to resolve verified cases involving employee miscon2010
2011
2012
-
186,391
220,713
Number of Compliance Training Participants
duct or consumer complaint. According to analysis, 66% of the 1,404 reports made in the past three years consisted of
consumer complaints and 23% were related to unethical conduct.
Strengthened Employee Education
Incidence of information provided by refraction reporters by type
Instructors from Samsung’s audit team are providing employee education in the following areas:
Unit: %
• Education for newly appointed directors (at least annually)
• Leadership education for officers
■ Employee Misconduct
• Introductory education for newly-recruited employees
70
■ Consumer Complaint
• All-employee education for groups of employees holding similar positions and assignments
■ Other
• Education for employees assigned to overseas duties
67
61
• Online education
23
In 2012, there was a marked increase in the number of personnel attending education sessions due to requirements in
the newly-enacted Ethical Management Guidelines for employees.
Number of Trainees
Corruption Prevention Training
227,217
2011
20
19
Unit: persons
2012
2011
2010
Consequences of Misconduct
183,132
Unit: %
72
■ Dismissal
2012
5
28
7
227,217
■ Warning
65
47
■ Other
In addition, Samsung Electronics posts the “Guidelines for Staff and Executives” on the company intranet so that
42
28
employees can learn about the criteria for dishonest acts on their own. For its customer companies, Samsung posts
21
the “Guidelines for Customer Companies” on its major portal site, which is frequently visited by customer companies.
68
2013 Sustainability Report
11
7
7
2010
2011
2012
Samsung Electronics
69
Talent Management
Facts & Figures
Total Number
of Employees
Human Capital
R&D Personnel
In 2012, Samsung Electronics hired a total of 71,419 new workers outside of its Korean headquarter operations, largely
In order to catalyze growth, Samsung Electronics constantly seeks to reinforce its R&D competence and patent portfo-
at its global production subsidiaries in order to meet the increasing global demand for its mobile devices.
lio. In order to accomplish this, the company continues to expand recruitment of highly qualified R&D personnel year
over year. Indeed, the number of Samsung Electronics R&D personnel is rising sharply.
Unit: persons
Number of Employees (Korea)
235,868
■ Korea
■ Overseas
2010
■ Total
95,662
2011
101,973
2012
90,702
94,802
190,464
119,753
The number of researchers with doctoral degrees exceeded 5,000 in 2012. These highly trained R&D personnel around
Number of R&D
Personnel with
Doctorate Degress
5,009
2011년
2012
■ Korea 38%
■ Asia
24%
■ China
19%
■ America
11%
■ Europe
7%
235,868
145,166
■ Middle East & Africa 1%
50,084
55,320
60,495
2010
2011
2012
95,662
101,973
90,702
Asia
26,355
41,481
57,330
China
37,599
41,203
45,660
America
16,151
21,531
24,694
Europe
13,334
13,850
15,318
Middle East
969
1,154
1,529
Africa
394
534
635
Employees by Contract Type Unit: persons
Newly Recruited
Employees outside of
Korea (2012)
71,419
2010
2011
2012
12,046
21,165
27,328
China
16,240
15,948
21,329
Southwest Asia
3,586
6,124
7,001
Latin America
3,567
5,454
7,793
North America
5,313
5,177
1,920
Europe
3,633
2,486
3,167
CIS
1,509
1,456
1,811
The Middle East
468
407
615
Africa
215
299
264
Japan
138
146
191
46,715
58,662
71,419
Total
2010
2011
178,732
210,070
223,408
11,732
11,656
12,460
Unit: persons
Southeast Asia
2012
Unit: persons
Employment by Experience Level
2010
2011
2012
Under 20
17,457
22,009
23,027
20s
89,182
102,632
106,371
30s
61,806
70,531
76,494
40+
22,019
26,554
29,976
Employees by Rank Unit: persons
2010
2011
2012
Associates
155,319
181,793
192,188
Managers
34,171
38,766
42,351
Executives
974
1,167
1,329
Unit: persons
71,419
■ New hires at entry level
■ New hires with career experience
2013 Sustainability Report
2012
Overseas Employment
Unit: persons
Employees by Age
70
2011
Employment by Region
Korea
Temporary Contract
2010
221,726
Employees by Region
Regular
Unit: persons
R&D Personnel
R&D personnel
*Decrease in the number of employees in Korea due to separation of LCD business
Employees by Region (2012)
the world are playing a key role in the continuous growth of the company.
■ Total
58,662
41,597
34,907
29,822
23,755
2011
2012
Samsung Electronics
71
Facts & Figures
Women Employees
Unit : %
Women Employees by Job Function
Percentage of
Women
Employees
40
■ Sales
■ Product
Development
39
Employment of College-educated Women
In 2012, Samsung’s percentage of women in college graduate recruitment rose to 29%, and the company is continually
working to increase this figure.
Women Employment by Education
29
39
34
■ Production
College-educated Women
Recruits (Korea)
Unit: % & persons
2010
%
54
53
College-educated Women
52
28
15
14
2010
Number of Total Women
30
28
Recruits Overseas (persons)
16
2011
2012
22
27
29
23,244
31,864
33,380
Recruits (Korea, %)
%
2011
Support for Working Parents
2012
We also support all employees through flexible working hours and telecommuting and we have developed programs
specifically designed to improve the workplace for working parents.
Women Employees by Region
The company has adopted flexible work hour policies and telecommuting for its female employees. The company also
Unit: %
enlists female employees with children to serve in our mentor program and offers on-site daycare for all employees.
2010
2011
2012
Southeast Asia
51.5
China
57.3
55
49.2
43
42.9
43.8
38.6
36.2
32.7
Latin America
Europe
36.9
Returning Rate
from Maternity
Leave
66.2
CIS
38.5
35.8
34.2
Africa
35.3
34.5
32.0
Korea
33
31.2
27.1
Employees on Maternity Leave
87.3
%
Females who quit within a year of
maternity leave
% of females coming back to work
after maternity leave
North America
30.6
30.3
27.5
Children in SEC daycare centers
The Middle East
23.3
24.6
24.1
(number of centers)
Japan
15.7
15.2
15.3
12
11.5
14.1
Southwest Asia
Unit: % & persons
Support for Working Parents
2010
2011
2012
1,484
1,979
2,039
233
380
264
84.3
80.8
87.3
-
1,239 children (7 places)
1,434 children (10 places)
Employing People with Disabilities
In 2011, Samsung Electronics began to hire people with disabilities through its official employment procedures, and
Women Employees by Rank
the company strives to provide accessibility that ensures a healthy and safe working environment for all. In 2012, the
Samsung Electronics upholds policies that ensure responsible hiring and promotion practices regardless of gender.
company hired 203 people with disabilities and plans to continue this hiring practice in 2013.
In 2011, Samsung Electronics announced that it would increase the proportion of women executives to 10% by 2020
against a 1.5% baseline. In doing so, Samsung hopes to encourage its talented female workforce to continue their careers with the company. Samsung believes that retaining a talented workforce – regardless of gender – is important to
Number of
Employees with
Disabilities
Employees with Disabilities
Unit: persons
its continued success. As of the end of 2012, women accounted for 2.4% of the total number of executives, representing a 1% increase over the figure for 2011.
Percentage of
Women
Executives
2.4
%
Women Employees by Rank ■ Staff
Unit: %
46
■ Managers
45.3
8
838
■ Total number of employees
with disabilities
173
2010
9
1,205
1,193
316
46
■ Executives
1,205
■N
ew recruits of employees
with disabilities
2011
203
2012
8.3
The current percentage of Samsung employees with disabilities (1.46%) will rise to 1.6% in 2013.
2010
72
2013 Sustainability Report
2.4
1.5
1.3
2011
2012
Samsung Electronics
73
Social Contributions
Facts & Figures
Minimizing Associate Turnover
CSR Investments
In 2012, Samsung Electronics spent a total of KRW 245 billion on its social contribution activities such as culture & arts,
Unit: persons & %
Turnover
academic exchanges, and social causes (KRW 51.4B, 59.2B and 86.1B respectively) among others.
In 2011, Samsung launched a dedicated CSR fund that fosters shared value partnerships. The fund’s initial endowment
17.2
■ Employee Resignations (Korea)
■ Employee Resignations (Overseas)
◦Turnover Rate (Korea)
◦Turnover Rate (Overseas)
15.3
15.6
4.9
4.9
totaled KRW 100 billion. In 2012, the company added another KRW 600 million was added to the fund. Given the size
of last year’s initial investment in the partnership fund, the total amount of CSR investments declined in 2012. Despite
this, most other social contribution areas saw increases in the amount of corporate support, as shown below:
3.9
22,068
16,817
KRW
5,035
3,527
2011
2010
CSR Expenses
2012
Training Expenditures per person (KRW 1)
Ratio of Training Expenditures to Sales
Ratio of Training Expenditures to Payroll
117.4
KRW
Costs
billion
Number of Training Days per Person
600
111,690
95,775
86,108
31,955
34,889
59,214
Culture & Arts
36,368
30,139
51,443
Academic Exchanges
56,947
27,812
45,002
146
3,344
653
2,795
1,135
2,334
239,900
293,694
245,354
Employee Volunteerism
2010
Training
Expenditures
100,600
International Exchanges
Total
Training Expenditures (Korea)
2011
In 2012, Samsung Electronics recorded a total of 212,209 hours or 9.5 hours per employee in volunteer services, dem-
2012
104.5
114.4
117.4
1,099,297
1,123,595
1,294,349
0.07%
0.07%
0.06%
0.8%
0.8%
0.7%
10.9
14.1
15.0
onstrating that a culture of giving back is growing rapidly at the company.
Average Volunteer
Hours per Employee
9.5
Employee Volunteerism (Korea)
hours
■ Total Employee Volunteers
◦Volunteer Hours per Employee
◦Number of Volunteer Groups
Expenditure for Employee Benefits
1,419
■ Total Volunteer Hours
Expenditure for Employee Benefits
1,248
1,181
9.2
9.7
990,243
2012
17,224
2010
24,818
Hope for Children
Program
in 2012
50
74
2013 Sustainability Report
857,672
14,326
270,221
2011
9.5
Unit : KRW 100 M
860,503
2010
2012
Social Causes
Sports
Professional Development
2011
-
Partnership Fund
billion
Environment & Health
Training Expenditures (KRW Billion)
Unit: KRW 1 M
2010
245.4
13,011
4,539
CSR
Investments
288,568
2011
212,209
2012
Expanding Hope for Children Program
Samsung Electronics broadly expanded its signature social contribution program, the Samsung Hope for Children Program, from 30 countries in 2011 to 50 in 2012. In 2013, the company plans to implement the program in a total of 55
countries.
countries
Samsung Electronics
75
Facts & Figures
Total Number of
Supplier Trainees
in 2012
5,261
Shared Growth with Suppliers
Supplier Training
Open Innovation
In 2012, Samsung Electronics continued to provide its numerous suppliers with quality training services on a great vari-
Open Innovation offers new small and medium enterprises (SMEs) chances to become suppliers for Samsung Elec-
ety of topics. Especially noteworthy was Samsung’s supplier training program on business ethics, which is designed to
tronics. Launched in 2011, the program encourages innovative ideas and technology development among candidate
prevent unethical exchanges between the company and its suppliers. The number of trainees declined slightly in 2012
companies. In 2012, the company received almost 1,000 applications for Open Innovation. Samsung Electronics will
due to the separation of the LCD business sector from the company.
continue to seek new prospective SMEs through this program to promote shared growth.
Training Services for Supplier Employees
Korea
persons
Overseas
Unit: persons
2010
2011
2012
2,922
3,963
4,380
Technology
285
161
99
Operation Management
368
597
377
Innovative Techniques
847
330
196
Management
Professional Techniques
Total Number of Trainees
935
228
209
5,357
5,279
5,261
Open Innovation Applications
Unit: cases
2011
Number of Applications
Number of Adopted Tasks
Supplier CSR selfassessment
2012
651
955
23
19
Supplier Compliance
Self-Audits by Suppliers
The Future Leadership Program
Launched in 2004 for the children of its suppliers’ top management, the Future Leadership Program is one of the key
supplier initiatives that Samsung Electronics provides.
The training program consists of hands-on training in a number of Samsung divisions and visits to the company’s overseas subsidiaries. The program provides Samsung an invaluable opportunity to train future leaders while promoting
1,791
Unit: No. of Suppliers
2010
Korea
2011
28
2012
793
647
Overseas
216
1,154
1,144
Total
244
1,947
1,791
future operational excellence among its key suppliers.
The Future Leadership
Program
Trainees
206
The Future Leadership Training Program
Unit: persons
■ Trainees of the Future Leadership Program
■ Korea
206
Unit: No. of Suppliers
Number of Suppliers Samsung Audited
545
■ Overseas
■ Accumulated Total
■ Total
people
31
29
280
22
13
2004
2009
249
31
265
249
169
2010
2011
2012
Accumulated Total
166
VOC
Processing Rate of
Voice of Customer
(VOC) Claims
3
VOC Processing Rate
Unit: % & cases
2010
100
%
VOC Received
Korea
(cases)
Overseas
VOC Processing Rate
(%)
76
2013 Sustainability Report
2011
2010
-
2011
2012
2012
699
596
606
3
117
6
100
100
100
Samsung Electronics
77
Facts & Figures
Investments in Green Management
GHG Emissions(Scope 1,2)
In order to consider economic profitability and environmental sustainability through green management,
Samsung Electronics continuously monitors its green management investment costs. The company uses the
information when planning to reduce environmental impact of its business activities and improve environmental achievements. Samsung Electronics is making investments in green management as follows:
Korea
Investments in Green Management
Environmental
Investments
491.5
KRW
Green Management
Area
Unit: KRW 100 M
■ Investment in green facilities ■ Site operation expenses
Global
■ Total
Unit: 1,000 tons of CO2
Scope
2010
2011
2012**
Scope 1
4,057
3,924
1,943
Scope 2
5,552
6,031
4,061
Total
9,609
9,955
6,004
Scope 1
4,155
4,045
2,098
Scope 2
6,500
7,259
5,388
Total
10,655
11,304
7,486
* The GHG emissions for 2009 onward were altered in June 2011 as required by the national guidelines on the GHG reduction
billion
2010
1,744
3,626
5,370
goal management system. The changes were verified by a third party. The recent figures differ from the numbers given in
earlier sustainability reports accordingly.
** The figures for 2012 reflect the structural reorganization, consisting of separation of the LCD business division and incorpo-
2011
3,607
ration of the LED division, undertaken by the company in April 2012.
7,030
3,423
Six Major GHG Emissions (Global)
2012
2,309
2,606
4,915
Unit: 1,000 tons of CO2
2010
2011
2012
7,012
8,378
5,943
CO₂
Total GHG
Emissions
Korea
2.54
ton of CO2 / KRW 100 M
*The 2010 and 2011 figures include those for the LCD division while those for 2012 do not as the division was separated from Sam-
CH₄
2
2
2
sung Electronics to become Samsung Display Co., Ltd. in 2012
N₂O
212
220
278
HFCs
117
108
134
Greenhouse Gases
PFCs
In 2012, Samsung Electronics’ absolute GHG emissions were reduced largely as a result of the restructuring
undertaken in April 2012, i.e. separation of the LCD business division and integration of the LED division.
GHG emissions in 2011 amounted to 3.13 tons of CO2 per KRW 100 million in sales, while the figure for 2012
was 2.54 tons of CO2, showing a 19% decrease over 2011 with the structural reorganization reflected therein.
Each operation site is taking a variety of reduction measures such as introduction of process gas reduction
facilities, enhancement of the energy efficiency of production facilities, and introduction of highly efficient
facilities in order to meet their emissions reduction targets.
SF6
Reductions in GHG
Emissions during
Product Use
(Accumulated Total)
Total
915
859
1,015
2,397
1,738
115
10,655
11,304
7,486
Unit: 1,000 tons of CO2
GHG Reductions at the Phase of Product Use (Global)
58,340
■ Goal
■ Performance
Global
2.34
GHG Emissions Intensity
Unit: ton of CO2 / KRW 100 M
ton of CO2 / KRW 100 M
Location
Korea*
Global**
Description
Goal
2010
2011
2012***
5.65
4.62
2.87
Performance
5.11
4.46 (3.13***)
2.54
Performance
4.15
3.70
2.34
* Korea KRW-based emissions calculation formula: Total CO2 emissions(1) ÷ (HQ-based sales / price index(2))
(1) Total GHG (converted into CO2) emissions from manufacturing sites in Korea
25,430
32,920
◦Accumulated Total
K tons
24,130
15,290
15,270
8,350
25,430
17,630
10,850
2010
2011
2012
(2) The Bank Of Korea’s PPI for the years (with the 2005 PPI being 1)
** Global KRW-based emissions formula: Total global CO2 emissions ÷ (annual global sales / price index(2))
*** The figures reflect the structural reorganization, consisting of separation of the LCD business division and incorporation
of the LED division, undertaken by the company in April 2012.
78
2013 Sustainability Report
* The
calculation of the carbon reduction goal is based on the assumption of an annual increase of 10% in the company’s sales
since 2008.
** The calculation range: all products sold worldwide (parts excluded)
Samsung Electronics
79
Facts & Figures
Scope 3 Emissions
Energy Cost Rate
GHG Emissions from Logistics by Transportation Mode (Global)
Description
Global
Korea
2010
2011
2012**
Air
1,250 (17%)
2,017 (24%)
2,952 (29%)
Sea
6,071 (82%)
6,320 (75%)
7,086 (70%)
111 (1%)
104 (1%)
87 (1%)
7,432
8,441
10,125
Rail/Road
Total Emissions
GHG Emissions from Logistics by region (Global)
Unit: 1,000 tons of CO2
2011
2012**
784
1,980
3,942
Europe
2,078
1,646
1,626
North America
Region
Latin America
2010
2,055
1,345
1,386
Asia
648
1,698
1,245
CIS
929
717
760
The Middle East
485
533
564
Africa
343
406
468
110
116
134
7,432
8,441
10,125
Oceania
Total Emissions
Samsung Electronics has been trying to bring down the ratio by 2.5% every year since 2009 in order to meet
its target of 0.77% at the end of 2013. In 2012, it exceeded its annual target. The company’s constant efforts
to conserve energy include the optimization of the operation of its manufacturing and utility facilities, the
introduction of highly efficient facilities, and the recovery of waste heat.
Unit: 1,000 tons of CO2
Energy Cost Rate
(Korea)
0.644
%
Unit: %
Energy Cost Rate (Korea)
■ Goal
0.956
■ Performance
0.849
0.929 0.928
0.796
0.644
2010
2012
2011
* Energy Cost Ratio(%) = Operation site energy costs in Korea / HQ turnover*100
** The figures for 2012 reflect the structural reorganization, consisting of separation of the LCD business division and incorporation of the LED division, undertaken by the company in April 2012.
Unit: GJ/ KRW 100 million
Energy Consumption
* Final destination based statistics
** The figures for 2012 reflect the structural reorganization, consisting of separation of the LCD business division and incorporation of the LED division, undertaken by the company in April 2012.
■ Korea
Emissions from Employees’ Business Trips (Korea)
Description
Airplane
2010
Unit: tons of CO₂
2011
■ Global
54.3
59.7
50.6
2012*
94,220
105,520
120,621
Car
5,621
5,849
6,219
Taxi
521
529
513
Train
384
411
415
Bus
239
288
274
100,985
112,597
128,042
Total Emissions
66.1
* The figures for 2012 reflect the structural reorganization, consisting of separation of the LCD business division and incorporation of the LED division, undertaken by the company in April 2012.
41.3
2010
2011
36.0
2012
* KRW-based energy conversion formula: Energy consumption(1) ÷ (HQ-based turnover / price index(2))
(1) Total energy (GJ) consumption
(2) Total energy (GJ) consumption
** KRW-based global energy conversion formula: total global energy consumption ÷ (global integrated sales / price index(2))
Suppliers’ Emissions
Unit: 1,000 tons of CO2
*** The figures for 2012 reflect the structural reorganization, consisting of separation of the LCD business division and incorporation of the LED division, undertaken by the company in April 2012.
9.6
■ Emissions
8.3
■ Emission Intensity
(ton of CO2 / KRW 100 M purchase)
Electricity and LNG Consumption
5.1
4,502
3,930
812
2009
2010
2011
Description
2010
2011
2012
Korea
Electricity (GWh)
11,894
12,925
8,697
LNG (1M Nm3)
170
197
172
Global
Electricity (GWh)
13,435
15,047
10,926
LNG (1M Nm3)
197
237
217
* Suppliers’ GHG emissions in 2012 will be made available in the second half of 2013.
* The scope of the supplier survey has been changed as follows: 40% in 2009, 63% in 2010, and 65% in 2011 in terms of
global purchase volume.
80
2013 Sustainability Report
Samsung Electronics
81
Facts & Figures
Accomplishments in Eco-Product Development
Accomplishments in Global Take Back & Recycling
As of the end of 2012, Samsung Electronics raised its Eco-Product development ratio to 99% and improved its product
In 2012, Samsung Electronics collected and recycled about 320,000 tons of electronic waste.
efficiency by 31%, on average, compared to 2008.These accomplishments are attributable, in part, to its implementation
As shown below, the take back quantity dropped by around 4% in Europe in 2012 in line with marked sales decreases
of an Eco-Product rating system and its promotion of the development of low-carbon products since 2009. Meanwhile,
in the region. However, with the launch of take back and recycling programs in Australia and India in July 2012, the
the company has obtained a number of major eco- and carbon-labels both at home and abroad thanks to its outstanding
take back volume is expected to grow continuously from 2013.
accomplishments in the improvement of electronic product energy efficiency. Samsung Electronics has secured an unparalleled competitive edge in the government procurement markets of many countries. Furthermore, through its unique
eco-management initiatives, the company has continued to reinforce its eco-friendly corporate image.
Good Eco-Product
Rate
99
%
Good Eco-Device
Rate
88
%
Unit: %
Eco-Product Development Rate
Recycling Amount
(Global)
325,545
tons
KPI
Description
2012
2013
Good Eco-Product Ratio
Goal
90
96
97
100
Performance
91
97
99
-
Goal
70
80
85
100
Performance
72
85
88
-
Good Eco-Device Ratio
2010
2011
Unit: tons
Global Take Back & Recycling Quantity
Region
2010
Europe
2011
2012
219,948
245,838
230,492
Asia
60,923
54,233
53,089
North America
22,773
39,347
41,964
303,644
339,418
325,545
Total
Recycling Statistics (Korea)
Unit: tons
Unit: %
Energy Efficiency Improvement Ratio
Category
KPI
Description
Energy Efficiency
Improvement Ratio
2010
2011
2012
2013
Goal
15
23
31
40
Performance
16
26
31
-
Products
Packaging
2010
2011
2012
57,218
51,940
49,677
4,787
5,045
4,993
※Energy Efficiency Improvement Ratio indicates the average energy efficiency compared to its improvement rate, which is
Unit: tons
Recycling Statistics by Product (Korea)
applicable to eight major products of 2008
Green Procurement
Samsung Electronics signed the Voluntary Agreement on Green Purchasing with the Korean Ministry of the Environ-
Description
Refrigerators
Washing Machines
Displays
Others
Total
Recycling Quantity
21,791
9,336
14,734
3,816
49,677
ment (MOE) in 2005 as part of the first wave of companies to do so. As a company that has declared itself a green
producer, Samsung Electronics does its very best to realize its commitments to green production through product
stewardship and to green consumption by every means possible. The company has also established the ‘hazardous
substance management procedure’ to ensure that it always purchases parts and materials free of hazardous substances as assured by the implementation of its own eco-product certification system for its suppliers.
Reutillization of Resources (Korea)
Recycled
Green Procurement in Korea
Unit: KRW 1 M
Resources
Quantity
2010
Parts with Reduced
Hazardous Substances
2011
Scrap
Non-ferrous
15,879
5,744
Unit: tons
Synthetic
resins
10,836
Glass
Waste
Others
Total
8,730
4,860
3,628
49,677
2012
No. of
Items
Amount
No. of
Items
Amount
No. of
Items
Amount
Many
68,216,339
Many
75,115,246
Many
77,671,452
409
86,538
445
38,590
362
55,733
Many
68,302,877
Many
75,153,836
Many
77,727,185
Green Products
(Environmental certification,
GR certification, etc)
Total
82
2013 Sustainability Report
Samsung Electronics
83
Facts & Figures
Recycled Plastic
Carbon Footprint Labeling
Samsung Electronics is planning to increase the proportion of recycled plastic in its total use of resin to 3.4% by the end
of 2013 and to 5% by 2015 in order to promote more aggressive resource recycling and improve resource efficiency.
Certification in Korea
Recycled plastic is used mostly in washing machines, refrigerators, air conditioners and vacuum cleaners. The use of
Samsung Electronics has proactively participated in KEITI’s carbon labeling schemes. As of the end of 2012, the company
recycled plastic has recently been expanded to the company’s overseas operation sites, too. Recycled plastic has be-
had received KEITI certification for 47 models in 12 product groups including such products as mobile phones, monitors,
gun to be partially used in mobile phones and monitors. In 2013, the use of recycled plastic will be further expanded
PCs, and air conditioners, and parts like LED and semiconductor memories. ‘Low-carbon product certification’ is given by
from home appliances to IT products like mobile phone chargers and printers.
KEITI to those products whose carbon emissions have been reduced compared to previous models. Samsung Electronics
has received the certification for seven models in four product groups.
Recycled Plastic
Global Certification
3.12
◦Proportion*(%)
In 2011, Samsung Electronics received a certification from The Carbon Trust of the UK for its Galaxy S2. It has since received certification for its Galaxy Note and Galaxy S3, its flagship smartphone. In 2012, the company received Japan’s
2.26
■ Reusable Plastic (tons)
Carbon Footprint label for its Galaxy Note2 for the very first time in the electronics industry.
15,467
12,519
Green Certification in Korea
Green Certification is awarded by KIAT(Korea Institute for Advancement of Technology) under
0.55
the auspices of the MOTIE to eco-technologies and eco-business that have contributed to energy and resource conservation and GHG emissions reduction. It is one of the Korean govern-
2,780
2010
ment’s key initiatives for low carbon green growth.
2011
By the end of 2012, Samsung Electronics had received 21 green technology certificates and one
2012
green business certificate for its establishment of a large-scale decomposition and treatment
facility for discharge PFC gases from semiconductor processes.
* 'Proportion' means the ratio of recycled plastic in the total quantity of resin used.
Global Eco-Product
Certification
2,926
Cases
Environmental Health & Safety (EHS) Certification
Global Eco-Product Certification
All of the company’s operation sites have received certification from international EHS management systems such as ISO
By the end of 2012, Samsung Electronics had received environmental certification marks for a total of 2,926 of its prod-
14001 and OHSAS 18001. Samsung maintains its world-class EHS management by continually fulfilling all requirements
uct models, the highest number for any company in the global electronics industry, from the world’s top-ten environ-
for post-evaluations and re-certification audits.
mental certification organizations in such countries as Korea, the United States, Sweden and China.
In 2012, Samsung Electronics received the ISO 50001 certification for its energy management systems at six domestic and
four overseas operation sites. The company is planning to secure certification of all of its global operation sites by 2015.
Global Environmental Certification Marks Received Region/
Country/
Group
as of the end of 2012
ISO 14001
Certification
EHS Certification Status
Region
Korea
China
USA
EU
Germany
Total
100
Korea
%
Global
809
2012
Sweden
632
380
267
99
Northern Europe
Canada
Taiwan
UL/CSA
Description
Site
Rate(%)
ISO 14001
6
100
OSHAS 18001
6
100
ISO 50001
6
100
ISO 14001
34
100
OSHAS 18001
34
100
ISO 50001
10
29
2,926
Through its Environment Chemicals Integrated Management System (e-CIMS), Samsung Electronics also checks its
suppliers’ EMS certification status as well as any use of hazardous substances before making a decision to purchase
from them. In doing so, Samsung encourages its suppliers to adopt systematic EHS processes and to ensure that no
hazardous substances are used in their products without proper management.
557
101
59
5
17
As of April 2013, 587 suppliers out of more than 3,500 partner companies have received ISO 14001 certification and are
implementing systematic EHS processes.
84
2013 Sustainability Report
Samsung Electronics
85
Facts & Figures
Water Resource Management
Waste Management
In 2012, Samsung Electronics’ industrial water consumption declined sharply due to the separation of the LCD sector,
which accounted for 48%* of the company’s entire industrial water consumption. municipal water and groundwater
consumption experienced slight increases due to added employees, cafeterias and sanitation facilities.
Waste Recycling Rate
(Global)
In 2012, Samsung’s waste decreased 19% as a result of separation of its LCD sector. Also, the company recycled most
94
remnants and waste incineration ash. As a result, the company reduced the amount of waste it sent to landfill by 43%*
%
68,636
relative to 2011.
Unit: 1,000 tons
Water Withdrawal
Water
Consumption
(Global)
waste materials generated by its global workplaces (94%). Namely, Samsung recycled both wastewater processing
Description
Category
Korea
2010
Global
Generation
103,562
49,003
Municipal Water
5,145
5,834
6,014
Unit: tons
Region
2012**
2011
180
205
235
489,492
490,123
364,588
109,601
55,252
Incineration
17,173
12,255
9,277
Industrial Water
91,225
103,562
49,003
Landfill
14,252
22,009
5,899
Municipal Water
13,457
17,325
18,806
520,917
524,387
379,764
607
780
827
604,266
645,942
543,233
105,289
121,667
68,636
Korea
86
91
39
Global
68
74
41
Recycling
2010
96,550
Total
Korea
Category
Total
Groundwater
Consumption Intensity
2012
91,225
Groundwater
K tons
2011
Industrial Water
Total
Global
(tons/KRW 100 M)
Recycling
Incineration
22,742
16,786
16,627
Landfill
36,144
49,143
19,614
663,152
711,871
579,474
Total
* Performance of LCD sector in 2011 is exempted from the calculation
** The split of the LCD sector and incorporation of the LED sector are reflected in the figures unless otherwise noted
Waste Water Generation
Waste Intensity (Generation/Sales)
2010
2011
2012
generation
Description
Korea
Region
87,639
97,370
43,291
(Unit: 1,000 tons)
Global
91,183
102,906
49,289
Wastewater intensity
Korea
78
81
31
(tons/100 M)
Global
59
62
29
■ Global
0.46
■ Korea
0.43
Unit: ton/KRW 100 M
0.43 0.43
0.34
0.27
Water Recycling
Description
Korea
Global
2012
2011
2010
Recycled Water
Recycled Ultra-Pure Water
Recycled Quantity
Recycling Rate
Supply Quantity
Recovery Quantity
Recovery Rate
(Unit : 1,000 tons)
(%)
(Unit : 1,000 tons)
(Unit : 1,000 tons)
(%)
2012**
34,225
61.9
29,226
13,917
47.6
2011
81,863
74.7
117,321
59,289
50.5
■ Global
2010
72,832
75.4
121,170
67,693
55.9
■ Korea
2012**
42,104
61.3
40,988
21,510
52.5
2011
90,068
74.0
128,554
66,676
51.9
2010
79,012
75.0
127,636
72,812
57.0
Recycling Rate
Unit: %
94
91
93
91
96
94
* Water usage rate of LCD sector in 2011
** The split of the LCD sector and incorporation of the LED sector are reflected in the figures unless otherwise noted
2010
86
2013 Sustainability Report
2011
2012
Samsung Electronics
87
Facts & Figures
Management of Pollutants
Air Pollutants
SOx (Korea)
In 2012, Samsung Electronics established a two-step waste water treatment system. The system, set up to proactively
0.008
taminant emission. As a result of implementing this system, both the concentration of contaminants and the amount
tons
account for the expansion of Samsung’s product lines, seeks to curb increases in both wastewater discharge and conof waste produced has fallen.
Samsung’s semiconductor operation sites also adopted an inorganic waste recycling system in 2008. In 2011, the company developed waste recycling technology to further improve upon installed systems. In 2012, Samsung established a
revamped recycling system built from the ground up.
Unit: tons
Generation of Air Pollutants (Korea)
2010
*
2012**
2011
No x
468
409
275
So x
0.059
0.006
0.008
Dust
40
44
21
NH₃
10
6
1
HF
12
14
8
Generation of Water Contaminants
Region
Korea
Unit: tons
Category
2010
COD
584
755
149
BOD
110
210
92
SS
56
91
21
F
244
345
175
1.6
21.6
20.2
685
876
306
Heavy metals
Global
2012**
2011
COD
BOD
110
210
92
SS
130
184
84
F
274
430
241
Heavy metals
2.2
25.3
20.6
* Special Act on the Improvement of Air and Environment for Seoul Metropolitan Area is applied to the calculation (boiler
emission added)
** Figures reflect Samsung’s April 2012 structural reorganization, consisting of the separation of the LCD sector and the
incorporation of the LED sector
Hazardous Materials Quantity (Korea)
■ Total Quantity (1,000 tons)
Samsung Electronics
Environmental Report
333
304
■ Intensity (ton/KRW 100 M)
252
Contents
0.22
2010
0.28
2011
0.22
2012
For more on Samsung’s green initiatives, please refer to the Samsung Electronics Environment Report, available at the following URL
http://www.samsung.com/us/aboutsamsung/sustainability/sustainabilityreports/sustainabilityreports.html
88
2013 Sustainability Report
env 02
Green Management Framework
env12 Climate Change Mitigation
env24 Eco-Products
env38 Green Operation Sites
env49 Green Communication
Green Management Framework
Green
Management
Development of Strategies
Materiality Test
In its pursuit of sustainability through green management, Samsung Electronics has identified some major issues
Samsung Electronics has implemented materiality tests for the purpose of systematically managing major issues that
through internal and external environmental analysis. Furthermore, through studies on diverse risk factors, it has
affect its management activities. Critical issues identified while evaluating critical issues and its impact on business
enhanced its internal competence and developed its green management strategies into the following process:
management in conjunction to the stakeholders’ interest include environmental safety risk management, GHG
Strategies
emissions management, pollutant and hazardous substance management, and improvements in product energy
efficiency. Communication with stakeholders and the management of product chemicals were also pinpointed as crucial
Strategy Development Process
areas. Samsung Electronics will reflect all of these findings in its establishment of long-term goals and the identification
of improvement tasks across all aspects of the environment.
Green Management Materiality Matrix
Internal
competence
Risk analysis
Materiality
tests
Strategy
development
Key Issues
High
Identification
of major
environmental
issues
major environmental
issues in the areas of
economy, society and
• Physical risks
• Analysis of internal
• Regulatory risks
• Indirect risks
competence levels
• Identification of
• Social/cultural risks
technology
excellent external
cases along with gap
• Gathering of
• Evaluation of
• Development
stakeholders’ degree
of (short-term /
of interest
mid-long term)
strategies
• Evaluation of internal
significance
Attention of stakeholders
• Identification of
• Task derivation and
KPI establishment
analysis
stakeholders’ issues
❶ Environmental safety risk management
❶
❻
❽
⓯
⓭
⓮
⓰
❷ GHG emissions management
❹
❺❸ ❷
❸ Pollutant & hazardous substance management
❾ ❼
⓫❿
❹ Product energy efficiency improvement
⓬
❻ Communication with stakeholders
❺ Product chemicals management
❼ Water resource management
❽ Green management system
⓱
❾ Electronic goods recycling
❿ Voluntary compliance with international
environmental standards
⓫ Eco-friendly product development system
Key Risks and Management Activities
⓬ Waste disposal management
Physical risks
Key Issues
Rise in price of raw
•Installation of high energy efficiency facilities
materials and oil
• Development of energy use reduction policies
Intensified water shortage
Regulatory risks
gas reduction policies
Strengthening of productrelated regulations
Changes in market and
industry
Social/cultural risks
packaging materials
⓮ Green purchases
Influence of business
High
Low
• Implementation of water resource management strategies and
water-related risk management structure
⓯ Product life cycle extension
⓰ Biodiversity protection
⓱ Green management policies
Implementation of national • GHG reduction activities at operation sites
energy and greenhouse
Indirect risks
⓭ Application of eco-friendly products and
Management Activities
Low
Type
• Energy efficient product development and sales
•R
egular monitoring of activities related to, and compliance with,
regulations on energy, hazardous materials, and recycling
•D
evelopment of Eco-Products and strengthening of green
marketing
Green
Management
Increased competition for
• Development and utilization of eco-friendly materials
Vision and
eco-technologies
• Release of innovative Eco-friendly products
Mid-term Goals
Changes in consumer
• Expansion of consumer green marketing
preferences
• Environmental communication with local community residents
Increased stakeholder
• Increased stakeholder communication and response to demands
demands
• Responsive information disclosure
Vision and Slogan
Our green management strategy enables us to grow sustainably and invest in the future of both humanity and nature.
Samsung Electronics established its green management vision based on our underlying philosophy that we have a duty
to help build a prosperous society and preserve the environment through business activities that respect people and
nature. Our green management activities are reinforced under our slogan of ‘PlanetFirst.’
Basic Philosophy, Vision, and Slogan of Green Management
Basic Philosophy
Contribute to building a prosperous society and preserving the environment
through business activities that respect people and nature
Vision
Creating New Value through Eco-innovation
Slogan
sustainable development and social responsibility through eco-
‘PlanetFirst’ represents Samsung Electronics’ commitment to
driven business and management activities.
ENV2
2013 Sustainability Report
Samsung Electronics
ENV3
Green Management Policies
Investment in Green Management
In order to consider economic profitability and environmental sustainability through green management, Samsung
Electronics continuously monitors its green management investment costs. The company uses the information when
1
Global Green Management System
planning to reduce environmental impact of its business activities and improve environmental achievements. Samsung
We have established a top-class global green management system, ensure
Electronics is making investments in green management as follows:
full compliance with all environment safety and health regulations at all our
operation sites, and enforce strict internal standards.
Samsung
Electronics is
committed to
leading the
Category
Life Cycle Responsibility for Products and Services
2
realization of
Investment Contents
We take full responsibility for ensuring minimal environmental impact and
Investment in green
Investments in facilities to prevent air and water
maximum safety at all stages of the product life cycle including the purchase of
facilities
pollution and reduce waste (i.e. the installation of
parts and raw materials, development, manufacturing, transfer, product use and
underground wastewater treatment facilities at
end-of-life cycle.
the Suwon operation site, and the replacement of
a sustainable
our green
management
3
Green Manufacturing Process
Site operation
Expenses paid to operate pollution prevention and
We have established manufacturing processes that minimize the release of
expenses
treatment facilities (power consumption, chemical,
the conservation
2012
1,744
3,607
2,309
3,626
3,423
2,606
5,370
7,030
4,915
labor, accreditation, etc.)
greenhouse gas emissions and pollutants by employing the best available
clean manufacturing technologies that enable efficient resource and energy
Total
* The 2010 and 2011 figures include those for the LCD division while those for 2012 do not as the division was separated from
contributing to
of humanity and
2011
management.
activities, we are
the prosperity
2010
transformers and LED lights at the Gumi operation site)
society.
Through
unit: KRW 100 million
Investment in Green Management
Samsung Electronics to become Samsung Display Co., Ltd. in 2012
4
of the natural
Zero-Accident Green Operation Sites
We create recycling-centric production facilities and safe workplaces where waste
materials are recycled and accident prevention measures are implemented to
External Recognition
ensure the health and safety of all our employees
Samsung Electronics’ continuous launch of eco-products and its efforts to reduce GHG emissions are very highly
recognized in the international arena.
environment.
In 2009, Samsung Electronics was incorporated into the DJSI (Dow Jones Sustainability Index). In 2012, among the 3,000
5
Preservation of the Global Environment
largest global companies, it was rated as the top environmental performer in the semiconductor division. In recognition
We take action against climate change to preserve the environment and protect
of the transparency of its GHG management statistics, it was incorporated into the CDLI (Carbon Disclosure Leadership
local communities. We disclose our green management policies and achievements
to both our internal and external stakeholders.
Index) for the fourth year in a row in 2012, a first for a Korean company.
Samsung Electronics was honored with twenty-nine awards from around the world for its eco-friendly products and
accomplishments in green management in 2012.
Mid-term Plan (Eco-Management 2013)
In 2009, Samsung Electronics announced EM 2013 (Eco—Management 2013), its mid-term green management plan, at
2012 Recognition of Excellence in Environmental Management
its green management declaration ceremony. The plan calls for the fulfillment of two key objectives: a 50% reduction
Name
Month
in GHG emissions in terms of KRW-based sales, and a 100% launch of eco-friendly products that are eligible for global
eco marks. Samsung Electronics is pushing hard for the success of nineteen detailed tasks in three major areas: Green
products (Products), Green operation (Operation Sites), and Green communication (Communication).
Kyunghyang Shinmun Sustainability Index
Best Global Green Brands ranking
(Interbrand)
EM2013 Core KPIs and Achievements
ESG Evaluation by the KCGS
Area
GHG reduction (Korea)
Indicator
GHG emissions relative to sales
(tons CO2/KRW 100 million)
Eco-Product
development rate
(Korea Corporate Governance Service)
2012
Proportion of Good Eco-Products
(%)
Proportion of Good Eco-Devices
(%)
Goal
Performance
2.87 *
2.54 *
97
87
99
88
May
July
Aug
2013 Goal
Dow Jones Sustainability Index (DJSI)
Sep
CDP (Carbon Disclosure Project)
Sep
Newsweek Green Ranking
Oct
The JoongAng Ilbo Green Ranking
Oct
2.38*
100
100
Contents
Ranked 3rd in environmental protection among Korea’s 100
biggest companies
Ranked as the 25th eco-friendly brand among the world’s 50
best eco-friendly brands
Awarded ‘class A’ among Korea’s listed companies in the area
of environmental protection
Ranked No. 1 among 3,000 Dow Jones companies in the
semiconductor sector against for environmental preservation
Incorporated into the CDLI for four years in a row, a first for a
Korean company
Ranked 7th in the technology sector among the world’s 500
largest companies
Ranked No. 1 in the IT industry among Korea’s 100 biggest
companies for two consecutive years
* This is an adjusted figure resulting from the corporate reorganization (which involved the separation of the LCD division
from the company and the integration of the LED business into the company) undertaken in April 2012.
ENV4
2013 Sustainability Report
Samsung Electronics
ENV5
2012 Environmental Awards
Region
Global
Region
Name
SEAD Global Energy Efficiency
Host
Clean Energy Ministerial
Month
Oct.
Award
Korea
Excellent Eco-label Company
Contents
Korea Environmental
Apr.
The most efficient TVs in America, Europe, Australia
The Minister of Environment’s award for excellent
Month
Ministry of Industry and
Sep.
Reusable refrigerator packaging material
June
Washing machine, Refrigerator, Kimchi Refrigerator,
Selected as high efficiency products
Sustainable Development Award
The Economic Observer
Oct.
Recognition for the excellent eco-friendly products
Green Medal Award
Business News
Nov.
Recognition for using the advanced technology in
green products' research
Aisa
May
Contents
(UA55ES6100, PS60E530A6R)
eco-label companies
Institute
Ministry of Knowledge
Energy Efficiency Star Award
Host
Information Technology
and India (UE26EH4000, UE40EH5000)
Industry & Technology
Korea STAR Award
China
Name
Asia Packaging STAR Award
Asian Packaging
Oct.
Reusable refrigerator packaging material
Federation
Economy
Green Star Certification Award
Korea Management
Association
Energy Winner Award
Consumers Korea
Korea Consumer Well-being
Korean Standards
Index Certification Award
Association
Green Product of the Year
Green Purchasing
Air conditioner
June
Aug.
Totally 10 energy efficient products
CES Eco-Design Innovations Awards
( TV, Monitor, Notebook, Refrigerator, etc )
In January 2013, four Samsung Electronics’ products (notebook PC, printer, memory, and LED lamp) were awarded Eco-
Galaxy brand ranked 1st in the mobile phone sector
Design Innovation Awards at the CES 2013, the largest consumer electronics show in North America.
Oct.
Recognition for three consecutive years
Dec.
Prime Minister Award
Jan.
Notebook, Printer, Memory, LED lamp
Buyers Laboratory Inc
Jan.
Monochrome Printer Line of the Year
Environmental Protection
Mar.
Partner of the Year for two consecutive years
Network
National Green Tech Award
Ministry of Knowledge
Economy
U.S.A.
CES Eco-design Award
Consumer Electronics
Product
Model
Eco-friendly characteristics
(20nm NAND flash memory technology)
• Eco-Mode feature
Notebook (Series 9)
• Power-saving parts and high-capacity battery
Association
BLI Outstanding Achievement
Award
Energy Star Award
Agency
TreeHugger's Best of Green
• Application of low-temperature printing toner
Printer (CLP-365W)
TreeHugger
Apr.
Evergreen(SGH-A667) mobile phone
IERCE
May
Recognition for notable achievement for responsible
• Support of eco-button printing mode
Awards
Industry Pioneer Award
recycling
Environmental Leadership Award
City of Fresno
May
Recognition for excellence in promoting responsible
• Memory module for low- power server
Memory (DDR3 64GB LRDIMM)
recycling
BGCA Partnership Award
Boys and Girls Club of
Oct.
America
State Electronics Challenge Award
Northeast Recycling
large institutions
Which Magazine
Sep.
Selected as the most energy efficient TV(55ES8000)
Green Apple Award
Green Organization
Nov.
Solar powered notebook
International Forum
Feb.
Eco-friendly material used in outer case of mobile
Design Hannover
Italy
France
Friends of the Earth
May
Energy efficient technology like the LED TV, LED ramp
Lumen Award
Assodel
Oct.
Awarded in the energy efficiency category(55ES8000)
The Communication of Fair Biz
Ministry of Environment
Apr.
Recognition for recycling scheme of toner cartridge
Daonong Center for
Apr.
Recognition for green management in China
Top Green Company Award
Energy Conservation
Association
fixture
• 75% energy reduction compared to an 60W
incandescent lamp
Energy Star’s ‘Sustained Excellence’ Award
For the first time in its history as a consumer electronics
company, Samsung Electronics was awarded ‘ENERGY
STAR of the Year -Sustained Excellence’, the highest
honor, at the 2013 Energy Star Awards ceremony cohosted by the EPA (Environmental Protection Agency)
Enterprise
Energy Conservation Award
LED Lamp
phone
Friends of the Earth Award
Award
China
•R
emote-controllable power-saving LED lighting
Recognition for promotion of responsible recycling for
Which Energy Saver Award
Germany iF Material Award
DDR3 RDIMM
Recognition for supporting BGCA as energy efficiency
education
Oct.
Council
U.K.
•Reduced energy consumption compared to 50nm
May
Awarded for three consecutive years
and the DOE (Department of Energy) of the United States.
The awardees are chosen from among companies that
have received ‘ENERGY STAR Partner of the Year’ on
more than two occasions. Samsung is said to have been
selected for its outstanding contributions to reducing
GHG emissions through its launch of high-efficiency
products and continuous efforts to reduce energy
consumption in its manufacturing processes.
ENV6
2013 Sustainability Report
Samsung Electronics
ENV7
Green
Consultation Organizations
Environmental
Samsung Electronics has set up several green management consultation organizations and clarified their roles,
Achievement Management and Employee Compensation
Samsung Electronics operates the G-EHS (Global
Management
responsibilities, and authority. The CS & Environment Center, under the direct control of the CEO, sets up green
Implementation
policies to cope with climate change and to control GHG emissions from all of their work processes; and supports
Structure
suppliers’ efforts to implement green management. The center also controls all the company’s green management
the reduction of GHG emissions, compliance with
activities including Eco-design, hazardous substance management, compliance with energy regulations, and E-Waste
product environment regulations, and environmental
recycling. Meanwhile, the Environment & Safety Center takes a leading role in the implementation of green operations
safety accident prevention. As a way of enhancing its
at the company’s business sites across the world in close collaboration with the environmental safety departments
competence, Samsung Electronics ensures that all the
of the operation sites. It also analyzes environmental safety risks at all its global operation sites and carefully follows
information on the company’s green management efforts
changes in the global environmental regulations as well as different countries’ national policies regarding environmental
is shared among all the relevant departments, and that all
protection. To that end, it designates two employees (one leader and one assistant) at each operation site to take full
the company’s performances and accomplishments are
management strategies and monitors the progress of the company’s key tasks; helps each operation site to establish
charge of environmental issues including compliance with regulations and the promotion of eco-friendly activities.
Tasks
Environmental
Discussions and decision making with regard to environmental
Safety Council
safety policies
Eco-Product Council
Establishment of plans and strategies for the development of
high-efficiency eco-products
Environmental Safety
Strategic discussions about the entire company’s
Strategy Council
environmental safety and healthcare issues
Climate Change
Decisions on practical tasks for coping with climate change,
Working Group
and monitoring of their progress
Environment Health Safety System) to systematically
Management
the company’s goals and achievements concerning
manage environmental safety information including
G-EHS System
Corporate Green Management Consultation Group
Name
Achievement
monitored through the G-EHS.
Meanwhile, Samsung Electronics invigorates its green
management by providing diverse compensation packages to organizations and individuals in recognition of their
Head
CFO
outstanding contributions to green management.
Frequency
Each year, Samsung Electronics presents ‘SAMSUNG GROUP Green Management Awards’ to those of its operation
sites and suppliers that have made outstanding achievements in the area of green management. Also, through the
Biannual
‘Samsung Electronics Annual Awards,’ the company recognizes the contributions made by the company’s organizations
CS &
Environment
and individuals in the area of green management with prizes and additional points on their performance appraisals.
Biannual
Center
HR Head
Head of
Environmental
Strategies
Environmental Cost Management
Quarterly
Samsung Electronics calculates its environmental effects and accomplishments in monetary terms, and discloses the
Five times
results to all its stakeholders.
a year
The information includes the analysis of cost effectiveness of green management in terms of economy and environmental
protection; this is instrumental to the company’s decision-making process.
The environment department at each operation site manages the funds required for environmental facilities and their
Employee Training
operation. The environment strategy team at the CS & Environment Center tallies the costs and expenses of each
In order to raise the employees’ awareness of the importance of environmental management, Samsung is running a
operation site annually and presents the calculation of the entire company’s total yearly costs and expenses.
total of 32 green management courses in four major areas, i.e. basics, regulations, duties, and overseas.
The environmental costs of each operation site are tallied according to the guidelines of the Ministry of Environment. The
On the understanding that green management can succeed only with the active participation of all its employees,
information is revealed to stakeholders upon request. The environmental budget of every operation site is calculated
Samsung Electronics educates its employees on a continuous basis for the purpose of ensuring that they fully understand
and implemented in accordance with the rules associated with the entire company’s management planning process.
the characteristics of the industry in which the company is involved and the significance of green management.
The basic course, which must be attended by all its employees, deals with the company’s philosophy and policies. The
regulations course covers legally required preventive measures against accidents and safety hazards. It is also intended
Environmental Audit
for all employees as well as the personnel in charge of environmental safety at every operation site.
Samsung Electronics carries out internal and external environmental audits in order to determine the current status of
The duties course ensures that the employees charged with product environment and environmental safety at
its green management and fix any potential problems.
operation sites are equipped with expert knowledge about their duties. Finally, the overseas course is designed to
The company examines the status of hazardous substance and energy management at each operation site annually.
educate the personnel at overseas product, sales subsidiaries, including local recruits, about all the environmental
Through the eco-partner certification system, it regularly assesses its supply chain’s environmental management status
safety requirements and regulations with which they must comply.
Basics Course
and makes any necessary improvements
Regulations Course
When building or expanding its overseas production facilities, the company thoroughly reviews their impact on
environmental safety. Each year it gets independent agencies to examine the entire facility infrastructure to ensure that
the facilities qualify for the extension of their ISO 14001 and OHAS 18001 certificates.
rse
Duties Cou
ENV8
2013 Sustainability Report
Samsung Electronics
ENV9
Information Disclosure
Management of hazardous Substances (Eco-Partner Certification)
Through the publication of its annual sustainability report,
Samsung Electronics implements an internal eco-partner certification system to minimize negative impacts in its
Samsung Electronics discloses its green management
suppliers’ parts and materials. It helps them to continue to qualify as its eco-partners through diagnosis programs and
strategies, goals and accomplishments in such areas as
education. Samsung Electronics tests all the raw materials of its more than 800 suppliers.
GHG emissions, eco-products, eco-friendly operation
For details of Samsung Electronics’ eco-partners, please see ‘Management of Supply Chain Product Chemicals’ on
sites and communication with its stakeholders.
page ENV29.
It makes all the above information available on its website
so that stakeholders can consult it easily.
Samsung Electronics participates in the CDP (Carbon
Support for Reductions in GHG Emissions
Disclose Project). It reveals all of its activities related to
Samsung Electronics supports its suppliers’ efforts to reduce their GHG emissions in a variety of ways.
climate change response to its stakeholders. The fact that
In 2012, it participated in the Energy Saving Collaboration Project between Large company and SMEs of their suppliers
Samsung Electronics participates in the CDP means that
supported by the MOTIE. Samsung Electronics carried out energy diagnoses of five of its suppliers and presented them
it proactively discloses all the measures it takes to cope
with more than 30 energy consumption reduction tasks.
with climate change.
The company will continue to support its suppliers’ efforts to reduce their energy consumption.
Set up in 2000 as a non-profit organization, the CDP
For further details of the company’s efforts to reduce its suppliers’ GHG emissions, please refer to ‘Suppliers’ Emissions’
assesses and analyzes the climate change response
on page ENV20.
activities carried out by companies incorporated into
the FTSE 100 Index and the progress they make. It has
Samsung Electronics’ Official Website
http://www.samsung.com/us/aboutsamsung/sustainability/
environment/environment.html
revealed the results to institutional investors around the
Ban on the Use of Conflict Minerals
world since 2003.
As a member company of the EICC, Samsung Electronics participates in the ban on the use of conflict minerals.
In 2012, through the CDP, a total of 655 global institutional
The company takes part in the EICC’s major programs including the development of methods of investigating the use
investors, which together are estimated to be managing
of conflict materials and the certification program for smelting factories. It urges its suppliers and other companies in
US$78 trillion in investment funds, were supplied with information on major global companies’ actions on climate
Korea which are using the four major conflict materials to stop using them.
change and the progress they have made to date.
For details of the ban on the suppliers’ use of conflict materials, please follow the links;
http://www.samsung.com/us/aboutsamsung/sustainability/suppliers/conflictminerals/
Support of
Support of the EMS (Environmental Management System)
Founded in 1981, the Samsung Supplier Council meets quarterly to deal with green management at its directors’
Suppliers’ Green
meetings and subcommittee meetings. Through the e-CIMS (environment-Chemicals Integrated Management System),
Management
production process or not. The company eventually ensures that the supplier’s products never contain any hazardous
Samsung Electronics checks whether a supplier in question is EMS-certified and uses hazardous substances in its
substances through its systematic approach to the issue.
Out of approximately 3,500 suppliers, 587 suppliers have obtained ISO 140001 certificates and are implementing
systematic environmental management as of April 2013.
Partner Companies’ Acquisition of the EMS (ISO 14001) Certification
Region
No. of Certified
Companies
Korea
China
Asia
Others
Total
207
174
141
65
587
Green Purchases
Recognizing the importance of green production and consumption, Samsung Electronics established guidelines for the
preferential purchase of eco-products and internal regulations for green purchase in 2007.
With the addition of the principle of preferential purchase to the company’s existing product purchase regulations,
Samsung Electronics urges its operation sites to purchase eco-friendly office supplies while recommending its
employees to buy eco-products for their personal use. For the full details of green purchase, please refer to ‘Green
Purchase’ on page ENV26, ENV27.
ENV10 2013 Sustainability Report
Samsung Electronics ENV11
Climate Change Mitigation
Climate Change
Strategies
Opportunity Creation Activities
Risks and Opportunities
Category
Response Processes
With respect to the risks and opportunities involved with climate change, Samsung Electronics has set up a six-stage
Regulatory
response process ranging from the identification of major issues to the adjustment of its strategies.
Opportunities
Physical
Risk &
Issue
Strategy
Opportunity
Identification
Establishment
Analysis
Implementation
Results
Strategy
Analysis
Adjustment
Opportunities
Opportunity Creation Activities
•GHG Emissions trading scheme Product
efficiency regulations and standards
•Rising demand for air conditioners due to
Opportunities
surging average temperatures
•Rising demand for improvements in water
and indoor air quality
Other
Opportunities
Analysis of Risks and Opportunities
Samsung Electronics conducts multi-faceted evaluations of the risks and opportunities involved in climate change. It
•Boosted brand values of low-carbon
companies and their products
•Increased necessity to reduce energy costs
determines the significance of the pertinent issues and rates their priorities under the following five criteria:
•Promotion of CDM for operation sites and products and
acquisition of GHG emissions rights
•Launch of high-efficiency products enhanced
•Reinforcement of system A/C business
•Aggressive launch of air purifiers and development of
water treatment technologies
•Expanded acquisition of low-carbon certification and
labeling
•Expanded application of BEMS (Building Energy
Management System)
Management System
Criteria of Risk and Opportunity Analysis
Samsung Electronics has organized its climate change response system as follows:
Criteria
Details
Significance to stakeholders
Concerns of stakeholders such as customers, evaluators and NGOs.
Industry (competitor) benchmarking
Peers and competitors’ reaction to the issue
Degree of impact on the company
Climate Change Response System
Organization
Tasks
Head
Impacts on companywide policy, strategy, goal, and others, as well as direct
Company’s internal competence
financial impacts (i.e. short/medium/long-term financial impacts)
Environmental Safety
Establishment of strategies to tackle climate change and
Having reasonable control over the issue, and degree of readiness in capital
Council
making of decisions concerned
(HR & asset) to deal with related issues
Risk probability
Eco-Product Council
Probability of events and amount of time left before potential enforcement
of a regulation
CFO
Biannual
Establishment of development targets and implementation
Head of the CS &
strategies for new highly efficient low-power products
Environmental Center
Environmental Safety
Addressing major issues and strategies involved in climate
Strategy Council
change responses
Through its risk analysis process, the following climate change risks have been identified and the company has taken
GHG/Energy
Determination of specific implementation tasks for climate
the appropriate countermeasures as follows:
Committee
change response and management of the progress thereof
Risk Management
Meeting
Frequency
Head of the HR Team
Head of the
Environmental Strategy
Team
Biannual
Quarterly
Five times
a year
Risk Management Activities
Goals and Strategies
Category
Types of Risk
Risk Management Activities
•Operation of GHG emissions reduction management
Regulatory risks
•Management of emission goals and
compliance with disclosure obligation
•GHG emissions trading scheme
system and third-party verification
•Operation of GHG emissions trading scheme and
establishment of the related system
•Regulations on product energy efficiency •Enhanced research on energy efficiency and increased
and labeling requirements
•Uncertainty about new regulations
Climate Change Response Strategies
Samsung Electronics has set the GHG emissions reduction targets for its operation sites relative to KRW-based sales and
those for the product use phase as its key goals. It pursues the goals in accordance with its implementation strategies.
Samsung Electronics also manages the GHG inventory of its indirect sector (Scope 3) including employees’ business
trips, logistics, and suppliers’ business activities. It fully supports suppliers’ efforts to reduce their energy consumption.
energy mark acquisition
•Strengthened monitoring system of worldwide
Climate Change Response Strategies
environmental regulations
Physical risks
•Typhoons and yellow dust
•Flooding and drought
•Risk identification and manual updates through
GHG reduction at
operation site facilities
operation sites
•Strategic response to the Eco-Product Exhibition and
Other risks
•Reputational risks
•Changes in consumer behavior
evaluations
Capitalizing on Opportunities
Samsung Electronics has identified the following opportunities associated with climate change through its opportunity
analysis process, and carried out the following opportunity creation activities:
Strategies
•Installation of F-gas treatment facilities at semiconductor production lines
Energy management at
•Application of energy certification for new semiconductor facilities (since 2011)
operation sites
•Introduction of the Energy Management System (ISO 50001) to all global operation sites in 2013
•Development of products by drawing on insights from
consumer research
ENV12 2013 Sustainability Report
Category
regular, special and external investigations of
•A 13% reduction in the energy cost ratio in 2013 compared to 2008 (1.01% → 0.88%)
GHG reduction at the
•A 40% reduction in average product power consumption in 2013 compared to 2008
product usage phase
•Meeting the goal of less than 0.5W in standby power for all its products by 2013
Management of the GHG •Management of the GHG inventory from logistics, employees’ business trips, and suppliers’
Scope 3 inventory
Support for suppliers
business activities (since 2009)
•Energy diagnosis and consultation on suppliers’ energy reduction efforts (since 2012)
Samsung Electronics ENV13
GHG Reduction KPIs
Samsung Electronics is inevitably faced with certain restrictions on its efforts to reduce the absolute quantity of its
GHG emissions because its turnover has been increasing by more than 10% each year in recent years. Thus, as its first
GHG reduction KPI, it has selected the reduction of GHG emissions per unit sales. Although the absolute quantity has
increased somewhat, Samsung Electronics is contributing to lessening increases in global GHG emissions by reducing its
Breakdown of
unit: 1,000 tons of CO2
2012 GHG Emissions Breakdown
Corporate GHG
Emissions
GHG emissions to generate the same value added by more than 50% in 2013 compared to 2008.
Employees’ Business Travel 128
GHG Reduction Accomplishments
In 2012, Samsung Electronics’ GHG emissions relative to KRW-based sales were 2.54 tons of CO2 per KRW 100 million, or
15% less than the yearly target of 2.87 tons of CO2. Until 2012, accumulated reductions in GHG emissions at the phase of
product use were 58.34 million tons or 14% more than the targeted quantity of 51.08 million tons. The target for 2013
(EM2013), originally set in 2009, was almost accomplished in 2012.
GHG KPIs and Accomplishments
KPI
Production 7,499
Description
Korea GHG emissions
reductions relative to sales*
2010
2013**
5.65
4.62
2.87
2.38
Performance
5.11
4.46
2.54
-
31
40
47
50
Reduction
(%, compared to 2008)
Goal
1,169
2,695
5,108
8,468
Performance
1,529
3,292
5,834
-
Global accumulated
phase (unit: 10,000 tons)
2012**
Goal
(ton CO2/KRW 1 million)
reductions at the product use
2011
* Korea KRW-based emissions formula: Total CO2 emissions(1) ÷ (HQ-based sales / price index(2))
Scope 1& 2
Management
Logistics 10,125
Product Use 25,980
Scope 1 &2 Management Processes
Emissions Management System
Samsung Electronics has selected the global operation sites and buildings for which operational control management is
practically possible as the objects of its GHG management. The selected sites and buildings include six manufacturing
sites and 54 R&D facilities and buildings in Korea, and 28 production facilities and 76 non-manufacturing facilities
(1) Total GHG emissions (converted into CO2) from Korean manufacturing sites
for sales, logistics, or R&D overseas. The GHG emissions of all of these sites are tallied by the G-EHS, the company’s
(2) Producer price indices (PPI) released by the BOK for the years (basis value: 1 in 2005)
environmental management system. The HQ department in charge keeps track of the performance of each operation
** The figures reflect the structural reorganization, including separation of the LCD business division and
incorporation of the LED division undertaken in April 2012.
site and, in the event that the reduction goal is not met, works on countermeasures together with the site in question.
The GHG reduction goals and performances are updated on a monthly basis and shared through the G-EHS by all those
※ 2008 KRW-based base value: 7.44 tons of CO2/KRW 100 million prior to reorganization and 4.75 tons of
concerned including the personnel at the operation sites, HQ staff and the company’s top management executives.
CO2/KRW 100 million after reorganization.
Emissions Calculation Standards
2013 GHG Reduction Plans
GHG emissions in different countries are calculated according to the provisions of the GHG management guidelines of
In order to meet its GHG reduction goals for 2013, Samsung Electronics is implementing a variety of GHG reduction
each country. Matters which are not covered by the national guidelines are determined by international standards such
measures including the operation of F-gas treatment facilities, the introduction of high-efficiency facilities, and the
as the IPCC Guidelines and ISO 14604.
replacement of lighting fixtures with LED lamps.
2013 GHG Reduction Plan
Scope 1 & 2 Emissions
1.95%
■ Operation of F-gas treatment facilities
■ Introduction of high-efficiency facilities
3.39%
■ Optimization of facility operation
3.39%
in April 2012, i.e. separation of the LCD business division and integration of the LED division.
0.39%
GHG emissions in 2011 amounted to 3.13 tons of CO2 per KRW 100 million in sales, while the figure for 2012 was 2.54 tons
of CO2, showing a 19% decrease over 2011 with the structural reorganization reflected therein.
Each operation site is taking a variety of reduction measures such as introduction of process gas reduction facilities,
■ Waste heat recovery
■ Replacement of light bulbs with LED lamps
In 2012, Samsung Electronics’ absolute GHG emissions were reduced largely as a result of the restructuring undertaken
0.48%
enhancement of the energy efficiency of production facilities, and introduction of highly efficient facilities in order to
10.76%
meet their emissions reduction targets.
■ Improvements in compressor operation
■ Others
79.64%
ENV14 2013 Sustainability Report
Samsung Electronics ENV15
GHG Emissions Intensity
Location
Korea*
Global**
Unit: ton of CO2 KRW 100 million
Description
2010
2011
GHG Reduction Activities
To meet both its own internal goals and those assigned by the Korean government, Samsung Electronics undertook
2012***
almost 700 projects to conserve energy and reduce process GHG emissions worldwide in 2012. It reduced its GHG
Goal
5.65
4.62
2.87
emissions by a total of 980,000 tons compared to BAU (Business as Usual).
Performance
5.11
4.46 (3.13***)
2.54
Eighty-seven percent of the reductions came from semiconductor process gas treatment facilities. Thirteen percent
Performance
4.15
3.70
2.34
came from the reduced consumption of electricity and LNG due to the introduction of highly efficient facilities, the reuse
and recycling of waste heat and the improvement of operation methods.
* Korea KRW-based emissions calculation formula: Total CO2 emissions(1) ÷ (HQ-based sales / price index(2))
(1) Total GHG (converted into CO2) emissions from manufacturing sites in Korea
GHG Reductions through Improved Efficiency of Air Dryer Facilities
(2) The Bank Of Korea’s PPI for the years (with the 2005 PPI being 1)
Typically, 4% of compressed air is lost in the production of compressed air required for facility operation. To solve the
** Global KRW-based emissions formula: Total global CO2 emissions ÷ (annual global sales / price index(2))
problem, Samsung Electronics improved its pneumatic system with the introduction of a non-purge type of dryer among
*** The figures reflect the structural reorganization, consisting of separation of the LCD business division and incorporation
other elements, thereby saving a total of 6,132MWh of electricity and reducing GHG emissions by 2,859 tons.
of the LED division, undertaken by the company in April 2012.
Unit: 1,000 tons of CO2
GHG Emissions(Scope 1,2)
GHG Reductions through the Introduction of F-Gas Treatment Facilities
In order to treat F-Gas, one of the six major greenhouse gases, used in semiconductor etching and vacuum evaporation
Area
Korea
Global
Scope
2010
2011
2012**
processes, Samsung Electronics has installed F-Gas treatment facilities at each of its production lines since 2007.
Scope 1
4,057
3,924
1,943
Recently, the company installed an integrated type of facility for new or expanded production lines. As a result, the
Scope 2
5,552
6,031
4,061
company reduced GHG emissions by 850,000 tons in 2012.
Total
9,609
9,955
6,004
Scope 1
4,155
4,045
2,098
Scope 2
6,500
7,259
5,388
Total
10,655
11,304
7,486
GHG Reductions through Replacement with LED Lamps
In 2012, Samsung Electronics replaced the lighting fixtures at its operation sites and major office buildings in Korea with
high-efficiency LED lamps. The replacement initiative also covered lamps outside facilities and buildings. Overall it saved
about 5,160MWh of electricity and reduced GHG emissions by about 2,406 tons in 2012.
* The GHG emissions for 2009 onward were altered in June 2011 as required by the national guidelines on the GHG reduction goal management system. The changes were verified by a third party. The recent figures differ from the numbers
given in earlier sustainability reaports accordingly.
** The figures for 2012 reflect the structural reorganization, consisting of separation of the LCD business division and incorporation of the LED division, undertaken by the company in April 2012.
Six Major GHG Emissions (Global)
Unit: 1,000 tons of CO2
Scope 3
Management
Scope 3 Management Processes
Emissions Management System
Samsung Electronics aims to identify the potential impact of climate change on its supply value chain and manage the
2010
2011
2012
CO₂
7,012
8,378
5,943
CH₄
2
2
2
N₂O
212
220
278
HFCs
117
108
134
PFCs
915
859
1,015
2,397
1,738
115
GHG emissions during product use are calculated with the information on product energy consumption on the one
10,655
11,304
7,486
hand and the product usage scenario on the other. The company adjusts its GHG reduction goals according to the
SF6
Total
associated risks, while taking advantage of potential business opportunities from such circumstances.
For its Scope 3 management range, the company has selected the emissions generated by its global suppliers’ operation
sites, product use, product and part logistics, and employees’ business travel in Korea and overseas. It is currently
planning to expand the range of Scope 3.
Suppliers’ GHG emissions are measured through the activity data which they supply to the company. Emissions
generated by logistics and business trips are supplied by internal systems for automatic calculation by the G-EHS.
improvements made in energy efficiency every year.
Third Party Verification of GHG Data
The third party verification agency for Samsung
Scope 3 Management Range
Electronics is the Korean Foundation for Quality
(KFQ). The objects of verification includeKorea and
Raw materials
Parts
Manufacturing
Logistics
Consumer use
Waste •recycling
global GHG emissions. The period is from 2007 to
2012. .
The Third Party Verification Certificate for
2012 GHG Emissions
ENV16 2013 Sustainability Report
Employees’
business
travel
Samsung Electronics ENV17
GHG Emissions from Product Use
GHG Emissions from Logistics
Samsung Electronics defines the indirect GHG emissions from electricity consumed during product use as ‘GHG
Samsung Electronics monitors GHG emissions produced by product, materials and parts logistics.
emissions at the phase of product use.
The company’s logistics emissions are rising every year owing to the marked expansion of its global business, including
The company converts the annual improvement effects of each product in terms of energy efficiency into GHG emissions
a burgeoning number of subsidiaries and increasing production and sales around the world.
reductions. Although its product sales increase every year, GHG emissions during product use have decreased due to
In 2012, its logistics emissions increased by 20% over 2011 to 10.12 million tons. Yet the emissions relative to KRW-based
improvements in the energy efficiency of Samsung Electronics’ products. In 2012, Samsung Electronics improved its
sales decreased by 2% in the same period.
average product energy efficiency by 30% compared to BAU in 2008 and reduced GHG emissions by a total of 25,420
To reduce its logistics emissions and improve load efficiency, the company continues to launch ever lighter and slimmer
tons. Since 2009, it has indirectly reduced GHG emissions by an accumulated total of 58.34 million tons.
products, endeavors to use low-carbon means of transportation, and develops optimal transportation routes.
Emissions Calculation Standards: Corporate Value Chain (Scope 3) Accounting and Reporting Standard of World Resources Institute (WRI)
Standards for Emissions Calculation: Corporate Value Chain (Scope 3) Accounting and Reporting Standard, World Resources Institute (WRI)
GHG Reductions at the Phase of Product Use
GHG Emissions from Logistics by Transportation Mode (Global)
Unit: 1,000 tons of CO2
58,340
■ Goal
■ Performance
Description
Global
32,920
◦Accumulated Total
Korea
2010
24,130
15,270
2011
2012**
Air
1,250 (17%)
2,017 (24%)
2,952 (29%)
Sea
6,071 (82%)
6,320 (75%)
7,086 (70%)
111 (1%)
104 (1%)
87 (1%)
7,432
8,441
10,125
Rail/Road
Total Emissions
15,290
Unit: 1,000 tons of CO2
25,430
17,630
GHG Emissions from Logistics by region (Global)
10,850
Unit: 1,000 tons of CO2
8,350
Region
2010
2011
2012
* The
calculation of the carbon reduction goal is based on the assumption of an annual increase of 10% in the company’s
sales since 2008.
** The calculation range: all products sold worldwide (parts excluded)
Example of GHG Reductions during Product Use
Latin America
784
1,980
3,942
1,646
1,626
North America
2,055
1,345
1,386
Asia
648
1,698
1,245
CIS
929
717
760
The Middle East
485
533
564
Africa
343
406
468
110
116
134
7,432
8,441
10,125
Change (UNFCCC) for the UN’s Clean Development Mechanism (CDM) project based on the sales of its highly energy
Total Emissions
makes investments in GHG reductions, obtains approval from the United Nations, and reduces its greenhouse gas
emissions accordingly, the U.N. recognizes the amount as a CER (Certified Emission Reduction).
Samsung Electronics is recognized as having launched highly energy efficient products continuously, reduced
consumers’ energy bills, and contributed to reducing GHG emissions in communities through its voluntary investments.
2012**
2,078
Oceania
The CDM project is based on the tradable permit system authorized by the U.N. Once a country or company voluntarily
2011
Europe
In January 2013, Samsung Electronics received approval from the United Nations Framework Convention on Climate
efficient refrigerator range in India.
2010
* Final destination based statistics
** The figures for 2012 reflect the structural reorganization, consisting of separation of the LCD business division and incorporation of the LED division, undertaken by the company in April 2012.
GHG Emissions from Employees’ Business Travel
Samsung Electronics is planning to secure about 2.63 million tons of CER over the next ten years: It will compare the
GHG emissions generated by employees’ business travel are on the rise because of the company’s business expansion
energy efficiency of all two-door refrigerators sold by various companies in India to that of Samsung Electronics’
and efforts to develop new markets.
refrigerators sold in the country since 2010. It will then convert the electricity consumption saving into its GHG emissions
However, Samsung Electronics has introduced initiatives designed to minimize such emissions. It has set up a
reductions.
companywide teleconference management system (WyzManager) in order to minimize the need for employees to
travel overseas; and also encourages employees to use mass transportation for their business travel so as to minimize
their contributions to GHG emissions.
In 2012, the company’s employees in Korea contributed to generating 128,042 tons of GHG emissions during their
business travel.
ENV18 2013 Sustainability Report
Samsung Electronics ENV19
Standards for Emissions Calculation: (1) Corporate Value Chain (Scope 3) Accounting and Reporting Standard, World Resources Institute (WRI)
Operation
(2)Carbon Footprint Guideline, Ministry of Environment, Korea (3) Calculation Tools for Employees' Business Travel
Unit: tons of CO₂
Emissions from Employees’ Business Trips (Korea)
Description
Airplane
2010
2011
2012*
94,220
105,520
120,621
Car
5,621
5,849
6,219
Taxi
521
529
513
Train
384
411
415
Bus
239
288
274
100,985
112,597
128,042
Total Emissions
* The figures for 2012 reflect the structural reorganization, consisting of separation of the LCD business division and incorporation of the LED division, undertaken by the company in April 2012.
Operation Site Energy Management System
At Samsung Electronics, there is an exclusive department at each operation site that takes charge of its energy demand
Site Energy
and supply management as well as its energy efficiency improvement activities. At the company headquarters, the
Management
Environmental Strategy Team at the CS & Environment Center gathers information on energy use companywide and
analyzes the causes of increases and decreases in energy use on a monthly basis. It also issues data on the quarterly
performances of each site. The company also promotes energy savings at operation sites through the bimonthly GHG
& Energy Working Group Council Meetings, during which their performances are reviewed and exemplary cases are
discussed comprehensively.
Energy KPI and Accomplishments
To reduce energy consumption, Samsung Electronics manages energy cost ratio and energy consumption as its KPIs.
As Samsung Electronics’ production output continues to grow, so does its energy consumption. The energy cost ratio is
used to compare energy costs to sales volume, thus helping to identify changes in energy efficiency.
Samsung Electronics has been trying to bring down the ratio by 2.5% every year since 2009 in order to meet its target
of 0.77% at the end of 2013. In 2012, it exceeded its annual target. The company’s constant efforts to conserve energy
include the optimization of the operation of its manufacturing and utility facilities, the introduction of highly efficient
GHG Emissions from Suppliers
facilities, and the recovery of waste heat.
When calculating a particular supplier’s GHG emissions, Samsung Electronics considers the proportion of the supplier’s
Energy Cost Ratio (Korea)
Unit: %
transactions with Samsung Electronics in its total sales volume. Samsung Electronics manages the emissions of more
than 2,000 global suppliers that supply parts to the company. At the company’s request they enter their activity data
into the company’s GHG Management System, which then calculates their emissions instantaneously. Those suppliers
which responded to the 2012 emissions survey accounted for 65.4% of Samsung Electronics’ suppliers in terms of
■ Goal
■ Performance
0.956
0.849
0.929
0.928
0.796
suppliers’ transaction volume with Samsung Electronics. Samsung Electronics began to investigate its suppliers’ GHG
0.644
emissions in 2009. As emissions per unit purchase have tended to grow, the company plans to analyze the causes
and take measures once more detailed emissions data have been collected from the suppliers. Samsung Electronics
supports the efforts of its suppliers to reduce their GHG emissions in a variety of ways. In 2012, the company joined the
Energy Reduction Coalition between Large and Small Companies under the support of the Ministry of Trade, Industry
and Energy, Korea. Through this coalition, large companies play the role of mentors to small enterprises with regard to
2010
2012
2011
energy audit and identification of their energy savings or GHG reduction challenges, with the support of the Ministry.
Thus far, Samsung Electronics has conducted energy audit to five suppliers and proposed more than 30 improvement
* Energy Cost Ratio(%) = Operation site energy costs in Korea / HQ turnover*100
items including chilling pump inverter control and waste heat recovery. The company plans to expand the service to
** The figures for 2012 reflect the structural reorganization, consisting of separation of the LCD business division and incorporation of the LED division, undertaken by the company in April 2012.
other suppliers and help them make significant progress in the area.
Suppliers’ Emissions
Unit: 1,000 tons of CO2
■ Emissions
9.6
■ Emissions Intensity
Energy Consumption
■ Korea
Unit: GJ/KRW 100 M
66.1
■ Global
8.3
54.3
(tons of CO2/ KRW 100 M purchase)
5.1
50.6
41.3
4,502
36.0
3,930
812
2009
59.7
2010
2010
2011
2012
2011
* KRW-based energy conversion formula: Energy consumption(1) ÷ (HQ-based turnover / price index(2))
* The suppliers’ GHG emissions in 2012 will be made available in the second half of 2013.
* The scope of the supplier survey has been changed as follows: 40% in 2009, 63% in 2010, and 65% in 2011 in terms of
global purchase volume.
(1) Total energy (GJ) consumption
(2) Total energy (GJ) consumption
** KRW-based global energy conversion formula: total global energy consumption ÷ (global integrated sales / price index(2))
*** The figures for 2012 reflect the structural reorganization, consisting of separation of the LCD business division and incorporation of the LED division, undertaken by the company in April 2012.
ENV20 2013 Sustainability Report
Samsung Electronics ENV21
Electricity and LNG Consumption
Korea
Global
Commitment to Renewable Energy
Samsung Electronics joined the US EPA Green Power Partnership for its semiconductor production plant in Austin, Texas
Description
2010
2011
2012
Electricity (GWh)
11,894
12,925
8,697
LNG (1M Nm3)
170
197
172
The company replaced 3.3% (28.5GWh) of its power consumption in the United States with renewable energy through
Electricity (GWh)
13,435
15,047
10,926
the operation of photovoltaic power generation facilities and the purchase of green electricity and renewable energy
LNG (1M Nm3)
197
237
217
and its materials warehouses in Rancho Dominguez, California. In 2012, the company expanded the partnership to its
entire operations in the United States including the buildings and production facilities throughout the country.
certificates.
In 2012, the company also expanded its use of renewable energy in other countries to 28.7GWh, a marked improvement
over the 25.6GWh used in 2011.
Furthermore, the company views renewable energy as a sustainable growth engine. It has invested in solar batteries,
Energy Savings Activities and Accomplishments
smart home appliances, geothermal heating, and cooling systems among other technologies. To contribute to the
Samsung Electronics conserved 140,000TOE of energy in 2012 by optimizing its manufacturing and utility facility
development and spread of smart grid technology, it is participating in the Jeju Smart Grid Demonstration Project which is
operations, installing highly efficient facilities, and adopting waste heat recovery. As a result, it was able to save KRW
being promoted by the Korean government.
62.7 billion in energy bills and further reduce GHG emissions by a total of 300,000 tons.
A smart grid is a modernized next-generation electrical grid that uses information and communications technology to
To ensure systematic energy management at its operation sites, Samsung Electronics has established its own energy
gather and act on information about the behaviors of suppliers and consumers among other types of data, in order to
management system (EnMS), which monitors energy consumption and promotes energy savings against the
improve the efficiency of the production and distribution of electricity.
established targets. The company is working hard to ensure that all its operation sites around the world obtain the ISO
Launched in December 2008, the Jeju Smart Grid Project has already established the smart grid infrastructure for such key
50001 certification, an international platform for energy management systems, as early as possible.
areas as electricity, telecommunications, automobiles and home appliances. Demonstrations are currently in progress.
All of its Korean operation sites acquired ISO 50001 certification between July 2011 and June 2012. For energy equipment
and facilities to be used in its operation sites, the company implements its own ‘Advance Certification System for Energy
Efficiency’ to ensure that facility suppliers deliver high-efficiency facilities to its operation sites.
Green Buildings
In order to reduce energy consumption by its buildings at home and abroad, Samsung Electronics is expanding the
introduction of the BEMS (Building Energy Management System), which identifies waste factors in energy facilities and
energy management processes and makes the integrated control of energy facilities possible.
Renewable
Energy
Renewable Energy Expansion Plans and Activities
The BEMS gathers and analyzes diverse information on energy management facilities in real time and improves energy
To reduce the use of fossil fuels and the generation of GHG emissions at operation sites and buildings, Samsung
efficiency instantly. At the end of the day, the system reduces energy consumption by 5~15% on average
Electronics promotes the increased use of renewable energy by installing renewable energy generation facilities and
Samsung Electronics plans to obtain major eco-building certificates including LEED (Leadership in Energy and
purchasing green electricity and renewable energy certificates among others.
Environmental Design) of the United States for its new R&D center buildings in Korea and abroad. To that end, the
The company is planning to install 1MW of hydropower generation facilities and 1.4MW of photovoltaic power
company reflects eco-friendly factors such as energy savings and renewable energy in its plans for new buildings and
generation facilities at operation sites. It will continue to use more renewable energy in its buildings in North America
facilities.
and Europe, in particular.
In 2012, Samsung Electronics Suzhou China (SSEC) adopted BEMS for its operation sites and reduced their electricity
consumption by 32.3% during a single year. Thanks to such outstanding accomplishments, the subsidiary received the
Eco-friendly Green Energy Company Certificate from the Chinese government.
Support for Clean Energy Policies [ G20 G2A2 (Green Growth Action Alliance)]
Samsung Electronics plans to expand the application of BEMS to its multiple buildings and plants in other countries
around the world with the aim of making a significant difference in energy savings and GHG emissions reduction.
Launched at the G20 Business Summit in Mexico in June
2012, the G2A2 has been joined by more than 50 global
companies including Samsung Electronics and various financial
institutions of the G20 countries, as well as a number of
influential international organizations. The G2A2 submitted its
policy proposals for the promotion of global green growth to
the G20 member governments. The policies for 2012 included
the expanded use of renewable energy, the promotion
of eco-product trade, improvements in energy efficiency,
and accelerated investments in green growth by private
companies. At the G20 business summit, Samsung Electronics
G20 Business Summit
reiterated its belief that low carbon green growth is both
the only way for global companies to sustain their corporate
sustainability, and the most promising engine of growth in the
21st century.
ENV22 2013 Sustainability Report
Samsung Electronics ENV23
Eco-Products
Eco-Product
Strategies
Goals and Strategies
Eco-Product Rating System
Many countries are enhancing their policies to address environmental issues including the reduction of GHG emissions.
Samsung Electronics evaluates the eco-friendliness of all of its products that are under development and classifies them
Environmental regulations on products across a range of areas including energy (ErP: The Energy-related Products
into three groups: Premium Eco, Good Eco, and Eco. To that end, a product’s eco-friendliness is evaluated in three
Directive), hazardous substances (RoHS: Restriction of Hazardous Substances Directive & REACH: Registration, Evaluation,
major categories such as resource efficiency, energy efficiency, and environmental hazards. Then, its eco-friendliness
Authorisation and Restriction of Chemicals) and recycling (WEEE; Waste Electrical and Electronic Equipment Directive) are
is further observed in more than 40 areas such as recyclability; use of single materials and unbleached chlorine-
continuing to expand, while consumers’ concerns and requests about green products keep rising.
free paper; nonuse of hazardous substances; and reduced power consumption including standby power. Samsung
To respond to the ongoing expansion and reinforcement of product environmental regulations preemptively and reflect
Electronics continues to expand the proportion of premium Eco-Products in its product portfolio.
market demands swiftly, Samsung Electronics has set its goals and strategies for the development of Eco-products.
Under its mid-term green management plan EM 2013, Samsung Electronics has set the Eco-Product development ratio
Eco-Design and Eco-Product Rating Process
and the energy efficiency improvement ratio as its two key KPIs. According to the plan, Samsung Electronics will raise its
Eco-Product development ratio to 100% by the end of 2013 and improve its product energy efficiency by a total of 40%
over the figure for 2008 within the same period.
Resource
Efficiency
Accomplishments in Eco-Product Development
Environmental
Energy
Impact
Efficiency
As of the end of 2012, Samsung Electronics raised its Eco-Product development ratio to 99% and improved its product
efficiency by 31%, on average, compared to 2008.These accomplishments are attributable, in part, to its implementation
of an Eco-Product rating system and its promotion of the development of low-carbon products since 2009.
Meanwhile, the company has obtained a number of major eco- and carbon-labels both at home and abroad thanks to
its outstanding accomplishments in the improvement of electronic product energy efficiency. Samsung Electronics has
secured an unparalleled competitive edge in the government procurement markets of many countries. Furthermore,
'Connection to existing
quality'certification
Eco Design Manual
Concept
Targets
Plan
Evaluation and improvements
Development
Final verification
through its unique eco-management initiatives, the company has continued to reinforce its eco-friendly corporate image.
Unit: %
Eco-Product Development Ratio
KPI
Description
Good Eco-Product Ratio
Goal
90
Performance
Good Eco-Device Ratio
2010
2011
2012
2013
96
97
100
91
97
99
-
Goal
70
80
85
100
Performance
72
85
88
-
KPI
Energy Efficiency
Improvement Ratio
Description
Mass production
More than four superior qualities
m
Premiu
uct
d
o
Eco-Pr
Eco-Design Process
Unit: %
Energy Efficiency Improvement Ratio
2010
2011
2012
2013
Goal
15
23
31
40
Performance
16
26
31
-
Good
duct
Eco-Pro
oduct
Eco-Pr
applicable to eight major products of 2008
Development
Processes
LCA (Life Cycle Assessment) and Eco-Design Process
: Innovative Eco-Product
Two or three superior qualities
: Qualifies for environmental marks
One or less superior qualities
※Energy Efficiency Improvement Ratio indicates the average energy efficiency compared to its improvement rate, which is
Eco-Product
Eco-Product Rating System
: Compliant with regulation standards
Environmental Responsibillity throughout Product Life Cycle
In 1995, Samsung Electronics began to implement the LCA (Life Cycle Assessment) according to the principle of EPR
(Extended Producer Responsibility), which is also referred to as Product Leadership within the company. From then
on, the company began to thoroughly investigate the potential impact of the entire lifecycle of new products on the
environment in their R&D phase.
Purchase
Development &
Production
Distribution
Use
Disposal
· Improved product
energy-efficiency
· Establishment of
waste collection
and recycling
system
In 2004, Samsung Electronics adopted the ‘Eco-Design Evaluation Process’ and mandated the environmental impact
assessment (EIA) of new products under development. In 2008, it established the EDS (Eco-Design System), and has
since implemented the ‘eco-friendly rating system’ for individual development projects.
ENV24 2013 Sustainability Report
· Eco-Partner certification
system
(management of
hazardous materials in
the supply chain)
· Implementation of
Eco-Design process &
eco-rating system
· Operation of clean
production processes
· Green logistics
· Weight reduction in
packaging materials
Samsung Electronics ENV25
Green Procurement in Korea
Green Procurement
Recognizing the importance of the corporation’s role in promoting green growth through green production and green
Unit: KRW 1M
2010
consumption, in 2007 Samsung Electronics established guidelines designed to give preference to Eco Products upon
No. of
purchase of parts and materials from its suppliers. It also prepared its own Environmental Management Manual and Green
Items
Purchase Regulations in the same year. The company also set up a system that gives priority to Eco-products upon the
Parts with Reduced
company’s purchase of office supplies and consumables. Samsung Electronics strongly urges its employees to purchase
Hazardous Substances
eco-products in their daily lives. Samsung Electronics signed the Voluntary Agreement on Green Purchasing with the
2011
Amount
No. of
Items
2012
Amount
No. of
Items
Amount
Many
68,216,339
Many
75,115,246
Many
77,671,452
409
86,538
445
38,590
362
55,733
Many
68,302,877
Many
75,153,836
Many
77,727,185
Green Products
Korean Ministry of the Environment (MOE) in 2005 as part of the first wave of companies to do so. As a company that has
(Environmental certification, GR
declared itself a green producer, Samsung Electronics does its very best to realize its commitments to green production
certification, etc)
through product stewardship and to green consumption by every means possible. The company has also established the
Total
‘hazardous substance management procedure’ to ensure that it always purchases parts and materials free of hazardous
substances as assured by the implementation of its own eco-product certification system for its suppliers.
Energy regulations on product power consumption including standby power are being strengthened on a continual
Green Procurement Vision
Improvements in
Green Procurement Process
Environmental
department
Establishment of
strategic
plans
Purchase
department
Suppliers
Procurement
system
Supply system
basis across the world. Samsung Electronics closely monitors energy regulatory trends in major countries. The company
Product Energy
continuously improves its product energy efficiency.
Efficiency
According to its mid-term green management plan EM 2013, Samsung Electronics will improve the annual energy
Samsung Electronics launches products with much higher energy efficiency than regulations require across the globe.
efficiency of its products by a total of 40% by the end of 2013 compared to the figure in 2008, and reduce GHG emissions
during product use by a total of 84 million tons during that five-year period.
Accomplishments in Energy Efficiency Improvement
Requests
for new
products
Supply item
registration
Between 2008 and 2012, Samsung Electronics reduced the annual power consumption of its eight major products by
31% and reduced GHG emissions by 25.43 million tons at the phase of product use.
The accumulated total of reduced GHG emissions during the same period was 51.08 million tons, and it is expected that
Education/
Publicity/Information
Eco-product
registration
NO
Green production
efficient motors.
YES
Low carbon green society
Power-saving Eco Ambient Light Sensor
Priority
Procurement
Eco ambient light sensor technology adjusts the brightness of backlighting
according to the brightness around a product. When the surrounding brightness
Procurement
Green distribution
Development
of eco-friendly
products
is high, the product brightness intensifies, and when the surrounding brightness is
low, the product brightness dims.
Development of
substitute goods
Substitute product registration
The sensor installed in an LED TV saves energy consumption by as much as 53%.
Energy Efficient Eco Mode
Product use
Reports on accomplishments in
eco-purchasing
improved energy efficiency such as LED TVs equipped with ambient light sensors, PCs with eco-mode, refrigerators
equipped with vacuum insulation, and high-efficiency compressors and drum washing machines armed with highly
Eco-products
Green procurement
the goal for 2013, 84.68 million tons, will be met easily. In 2012, Samsung Electronics launched products with markedly
Eco-mode technology enables computer users to check their power
Monthly reports
consumption through the watt meter installed in the system and
decide if they want to conserve energy. The ‘eco mode’ conserves
energy consumption by as much as 41% compared to ‘normal
mode’ on an annual basis. Assuming that the average computer
Reporting
lifecycle in Korea is four years and the number of computers in use
is 5.5 million, eco-mode computer usage reduces GHG emissions by
180,000 tons per year around the country, which is equivalent to
planting 1.6 million trees.
ENV26 2013 Sustainability Report
Samsung Electronics ENV27
Extension of Product Life Cycle
Product Chemical Management in Supply Chain
Samsung Electronics makes continuous efforts to extend product life cycles through improvements not only in terms of
For the control of hazardous substances throughout its supply chain, Samsung Electronics is implementing the Eco-
product performance but also in terms of product durability. An extended product life cycle eliminates the necessity of
Partner Certification System for all of its suppliers. The company only deals with those suppliers that have set up their
additional production, thereby cutting down on GHG emissions and preventing the waste of resources. Examples of the
own environmental management systems and passed the environmental tests conducted by Samsung on their parts
company’s successes in extending its product life cycles include the Samsung drum washing machine motor, about which
and materials to be supplied to the company. For a supplier to qualify for the Samsung certification, it must meet the
VDE(Verband Deutschle Elektrotrchniker) certified 20-year durability, and the Samsung Evolution Kit for its Smart TVs.
company’s requirements concerning the control of hazardous substances in its parts and materials and fulfill the
company’s requirements concerning the environmental quality management system. The certified suppliers can renew
Drum washing machine motor certified for
20-year life cycle
The Evolution Kit for Samsung Smart TVs
Samsung Electronics received a 20-year life cycle
Typically, consumers replace their TVs every five to six
certification scheme more efficiently, Samsung Electronics established the e-CIMS (Environmental-Chemicals
certification for its drum washing machine motor from
years. Multimedia contents such as online games and
Intergrated Management System), which controls hazardous substances incorporated into its global suppliers’ parts
VDE (Verband Deutschle Elektrotrchniker) of Germany.
video are increasing at an explosive rate every year.
and materials, in 2009. Through the system, the company obtains information on the material composition of the
Established in 1893, VDE ranks among the world’s most
Consumers are willing replace their products in order
suppliers’ parts and materials along with the data on their use or nonuse of hazardous substances, on the basis of
prominent independent testing organizations for electric
to gain access to upgraded content. Such a short TV
which Samsung Electronics calculates the material composition and chemical contents of its products.
and electronic products. The VDE certification center
life cycle causes unnecessary production and related
conducts numerous product tests annually and is very
impacts on the environment.
well known for its strict product quality testing. Thus the
Samsung Electronics unveiled its Evolution Kit at CES
VDE mark is considered to be the symbol of the highest
2013 as the first device of its kind in the world. The main
safety standards in the world. To see if there would be
purpose of the kit is to extend the life cycle of TVs.
any deterioration in the functions and features of the
By simply attaching the Evolution Kit device to the back
motor over a long period of time, the VDE H/Q carried
of a 2012 Samsung Smart TV, consumers can enjoy the
out testing on the motor for sixteen months under the
latest features that the 2013 Smart TVs have to offer
same conditions in which consumers would use the
because the key features of the existing TV evolve into
washing machine. VDE certified the motor for an ‘Official
the latest ones. Therefore, all old Samsung premium TVs
Credibility Period of 20 Years’ claiming that the Samsung
can be upgraded into the newest Smart TVs simply by
motor would be capable of 4,400 loads of laundry over
installing the evolution kit.
their certification through Samsung’s on-site evaluations or their own in-house evaluation procedure depending on
the degree of risk involved in the parts and materials to be supplied to Samsung Electronics. To run its Eco-Partner
20 years based on 4.2 loads a week or 220 loads a year.
Chemical Management in Supply Chain
Product environmental certification
Materials Data
Materials Data
: Analysis Data, Materials contents
Raw
materials
provider
: Analysis Data, Materials contents
Samsung
Part
Electronics
suppliers
e-CIMS
Eco-Partner Certification
Accomplishments in Product Chemicals Management
Samsung Electronics has been running a world-class environmental analysis laboratory capable of analyzing hazardous
substances and VOCs (volatile organic compounds) since 2005. The lab has received certification from US UL, Korea
KOLAS, and Germany BAM as an internationally recognized analysis institution, thus securing international credibility
for its published analysis data.
The analysis lab has standardized the analysis processes for not just regulated substances like phthalates and VOCs,
but also for new substances for which regulation is anticipated in the near future. Thus far, it has secured a total of
Product Chemicals Management Policies
80 analytical methods. Most notably, in order to comply with the RoHS directive, the lab restricts the use of six major
Samsung Electronics has established a chemicals supply chain management system that strictly controls the chemicals
Management in
Regarding the 138 candidate substances on the EU REACG SVHC (Substances of Very High Concern) list, the company
to be used in its products. In addition to mandatory restrictions based on RoHS and REACH, the company has adopted
has completed content investigations for all of its products. Samsung Electronics discloses the relevant information on
Product
the precautionary principle and voluntarily controls chemicals that are not yet subject to a legal ban but which might
the company website whenever one of its products is found to contain more than 0.1% of a SVHCcandidate substance
harm the environment nevertheless. Samsung Electronics manages both legally restricted substances and voluntarily
in terms of weight. In April 2010, the company removed PVC(Polyvinyl chloride) and BFRs(Brominated flame retardant),
restricted substances through the Standards for Control of Substances concerning Product Environment (OQA-2049).
which are on its list of voluntary restrictions, from mobile phones and MP3 players across the world.
In order to prevent ‘controlled substances’ from entering its products outright, the company strictly tests and controls
In January 2011, Samsung Electronics began to remove PVC and BFRs from its new notebook PCs. As for its TVs, monitors
all the materials and parts delivered to its operation sites.
and home theaters, the company began replacing their PVC content in January 2011.
Chemicals
ENV28 2013 Sustainability Report
hazardous chemicals (i.e. Hg, Pb, Cd, Cr6+, PBB and PBDE).
Samsung Electronics ENV29
Eco-friendly Mobile Phone Certified by the Chinese Government
Take Back and
In July 2012, Galaxy S3 was awarded the Voluntary RoHS Certification by the Chinese
Recycling
government (the Ministry of Industry and Information Technology), the first such
Take Back and Recycling Policies
Under the principle of ‘Individual Producer Responsibility’, Samsung Electronics does its utmost to reduce waste and
maximize collection and recycling by adopting systematic approaches to the issue at both the design and production
recognition given to a mobile phone by China’s government.
phases. Samsung Electronics has set up a ‘E-Waste recycling system’ for the first time in the electronics industry in
First introduced by the European Union, RoHS is a directive on ecological conservation
Korea. Starting with the Asan Recycling Center established in 1998, the company now runs a total of seven recycling
that bans the use of six hazardous substances, including four heavy metals (lead, mercury,
centers in Korea. Most notably, 1,500 sales centers and 20 regional logistics centers in Korea serve as collection agencies
cadmium, and chrome) and two flame retardants (PBBs and PBDEs, i.e. poly brominated
to transport end-of-life electronics to recycling centers.
biphenyls and polybrominated diphenylethers), in electrical and electronics goods.
In April 2010, Samsung Electronics joined BAN (Basel Action Network), a non-profit toxic watchdog organization of the
With this certification, Galaxy S3 has won the title of the first eco-friendly mobile phone to
United States, as an E-Steward Enterprise for the first time in the Korean industry.
be certified by the Chinese government.
BAN promotes the E-Stewards Certification program to ensure that exports of hazardous electronics waste to
developing countries are eliminated. Samsung Electronics fully supports a ban on exporting hazardous waste to the
developing world, and sending E-Waste to landfil. Since August 2012, Samsung Electronics has been participating in the
Eco-Product Development Performance
Environmental Protection Agency’s SMM (Sustainable Materials Management) Electronics Challenge at the Gold Level,
the highest in the tiered structure, calling for more effective use of resources and the safe disposal of electronic waste.
Eco-Product Development
As well as releasing a great variety of eco-friendly products that reduce resource and energy consumption, Samsung
Electronics minimizes the use of hazardous substances and features specialized eco-friendly technologies. In 2012, the
Global Take back & Recycling Program
Globally, Samsung Electronics is running e-waste take back programs in more than 60 countries including the United
company launched the following eco-friendly products:
States, Canada, India and many countries in Europe.
Product
Model
Eco-friendly Characteristics
Product
Model
Eco-friendly Characteristics
LED TV
•Korea Energy Frontier
Mobile
(ES6500)
•Australia Super- efficiency
phone
composed of PCM(Post
•US TV ENERGY STAR 6.0
(Exhilarate)
Consumer Material)
compliance
•80% of the exterior
•BFRs, beryllium, and
•EU Energy Efficiency A+
phthalates Free
•UL Environment Platinum
Monitor
(S27B750)
•17% reduction in power
consumption over the
Mono printer
(Polaris)
previous model
Launched in 2008, SRD (Samsung Recycling Direct), a voluntary recycling program in the United States, is running about
700 take back centers in all 50 US states. Over the border in Canada, Samsung Electronics is operating a total of 1,476
collection centers. In India, the company began a voluntary recycling program in 2010, and now runs 235 collection centers.
For large household appliances, consumers can request take back simply by calling a Samsung call center. Recycling
information is continuously supplied to the public on the company website. In May 2012, Samsung Electronics set up
a take back system in Australia, and now collects waste mobile phones, TVs, PCs and printers among other appliances.
Detailed information on take back and recycling around the world is available at the following company website: (http://
Sustainable Product
www.samsung.com/us/aboutsamsung/sustainability/environment/takebackrecycling/howtorecyclesamsungproducts.
certification
html)
•Green technology
certification
Europe
•Power saving software
•US Monitor Energy Star 6.0
Canada
•30% reduction in power
compliance
consumption
India
Blu-ray
Display
(BD-E5300)
•24% energy reduction over
the previous model
Note PC
•Ultra-thin & light
(NP900X3B)
• BFRs & PVC Free
•US AV Energy Star 3.0
Korea
China
Japan
Taiwan
Colom
bia
•Registered by EPEAT &
compliance
Certified by TCO
•MOST EFFICIENT (DOE-30%)
(RF263TEAESP) •US Energy Star Most Efficient
(DOE: 30%)
Air
conditioner
(AF-HD253)
•Korea energy efficiency
Class A
•High-efficiency inverter
•Application of inverter
Washing
machine
(WF455A)
Brazil
Aust
ralia
South
Africa
Refrigerator
U.S.
europe
asia
29 countries take-back
Korea
China
oceania
the america
Australia
& recycle
take-back network
collection available from collects televisions,
Canada
Colombia
16 points of collection
among distribution
2012, recycling to be
collection boxes at
computers, and printers
U.S.
service centers
compressor & vacuum
SOUTH africa
centers and agents, Asan introduced in the near
for recycling, offers
Operate voluntary take
Brazil
insulation panels
service centers offer
Recycling Center open
future
cell phone collection
back program across 50
collection boxes at
collection boxes
since 1998
Japan
programs
states
service centers
India
collection services,
collection programs
participation in recycling
•Lowest power consumption
in North America (90kWh/y)
•Low temperature washing
technology
Camcorder
(HMX-Q20)
•Vegetable-based ink
printing manual
•High-efficiency adapter
available since December consortium
2009
Taiwan
offers national recycling
system
ENV30 2013 Sustainability Report
Samsung Electronics ENV31
Recycled Plastic
Accomplishments in Global Take Back & Recycling
In 2012, Samsung Electronics collected and recycled about 320,000 tons of electronic waste.
As shown below, the take back quantity dropped by around 4% in Europe in 2012 in line with marked sales decreases
◦Proportion*(%)
in the region. However, with the launch of take back and recycling programs in Australia and India in July 2012, the take
■ Recycled plastic (tons)
3.12
2.26
15,467
back volume is expected to grow continuously from 2013.
12,519
Unit: tons
Global Take Back & Recycling Quantity
0.55
Region
2010
2011
2012
219,948
245,838
230,492
2,780
Asia
60,923
54,233
53,089
2010
North America
22,773
39,347
41,964
303,644
339,418
325,545
Europe
Total
Recycling Statistics (Korea)
* 'Proportion' means the ratio of recycled plastic in the total quantity of resin used.
Unit: tons
Category
Products
Packaging
The Use of
2010
2011
2012
57,218
51,940
49,677
4,787
5,045
4,993
Recycling Statistics by Product (Korea)
2012
2011
Unit: tons
Shrink Packaging
In May 2010, Samsung Electronics began to use shrink packaging for its drum washing machines. It now uses the
Eco-friendly
technique for refrigerators, microwave ovens and dishwashers.
Packaging
With shrink packaging, a product is wrapped with a buffer material followed by LDPE shrink film, before compressing
Materials
packaging, thereby reducing transportation costs and cutting down GHG emissions from transportation, too.
the ensemble with heat. This technique reduces the weight of packages by an average of 44% compared to paperboard
It is also estimated that the emissions of air pollutants like formaldehyde and TVOCs (Total Volatile Organic Compounds)
are reduced by 77% and 21%, respectively, with the adoption of this innovative packaging technology.
Description
Refrigerators
Washing Machines
Displays
Others
Total
Recycling Quantity
21,791
9,336
14,734
3,816
49,677
Reutillization of Resources (Korea)
Recycled
Resources
Quantity
Scrap
Non-ferrous
15,879
5,744
Shrink Packaged Products
Unit: tons
Synthetic
resins
10,836
Glass
Waste
Others
Total
8,730
3,628
4,860
49,677
refrigerator
washing machine
dishwasher
microwave oven
Recycled Plastic
Samsung Electronics is planning to increase the proportion of recycled plastic in its total use of resin to 3.4% by the end
of 2013 and to 5% by 2015 in order to promote more aggressive resource recycling and improve resource efficiency.
Recycled plastic is used mostly in washing machines, refrigerators, air conditioners and vacuum cleaners. The use of
recycled plastic has recently been expanded to the company’s overseas operation sites, too. Recycled plastic has begun
to be partially used in mobile phones and monitors. In 2013, the use of recycled plastic will be further expanded from
home appliances to IT products like mobile phone chargers and printers.
Recycled Packaging Materials
Since November 2012, Samsung Electronics has been using packaging materials made of porous polypropylene, which
can be used more than 40 times instead of just once packaging. By saving tape and Styrofoam, Samsung Electronics has
reduced its TVOC use by over 99.7%. It is estimated that this measure alone will reduce CO2 emissions by 7,000 tons per
year, which is equivalent to the effect of planting an additional 60,000 trees.
Recycled Packaging Materials
ENV32 2013 Sustainability Report
Samsung Electronics ENV33
Eco-friendly Vinyl Packaging Materials
Certification for Preliminary Carbon Labeling Verification Activities
Vinyl used for packaging tends to end up in streams or ground
In December 2012, Samsung Electronics was certified by KEITI
soils as a serious source of environmental degradation.
(Korea Environmental Industry & Technology Institute) for its
Samsung Electronics began to use eco-friendly vinyl packaging
preliminary verification ability for an eventual carbon labeling by
materials in December 2012.
the agency.
The new vinyl product contains oxo biodegradable additives that
Samsung Electronics now measures its own carbon emissions
cause the plastic to fragment into pieces.
throughout the manufacturing processes of tablet PCs and
Starting with the battery for its robotic vacuum cleaner, Samsung
other mobile devices, for instance, and gets approval for the
Electronics is planning to expand the use of these packaging
measurement from the country’s certification organization. This
materials to other products.
arrangement is expected to significantly reduce the time and costs
previously borne by the company to obtain carbon labeling.
Robotic Vacuum Cleaner Battery wrapped
with Eco-friendly Vinyl
Certification in Korea
Samsung Electronics has proactively participated in KEITI’s carbon labeling schemes. As of the end of 2012, the company
Environmental
Certification
had received KEITI certification for 47 models in 12 product groups including such products as mobile phones, monitors,
Global Environmental Certification
PCs, and air conditioners, and parts like LED and semiconductor memories. ‘Low-carbon product certification’ is given by
By the end of 2012, Samsung Electronics had received environmental certification marks for a total of 2,926 of its product
KEITI to those products whose carbon emissions have been reduced compared to previous models. Samsung Electronics
models, the highest number for any company in the global electronics industry, from the world’s top-ten environmental
has received the certification for seven models in four product groups.
certification organizations in such countries as Korea, the United States, Sweden and China.
as of the end of 2012
Global Environmental Certification Marks Received
Region/
Country/
Group
Korea
China
USA
EU
Unit: tons CO2/100 M
Low-carbon Product Certification
Germany
TVs
Note PCs
Air Conditioners
UN55D8000YF
NT202B5B,
ADX200VSHHXA1
Total
NT200B5B
809
2012
Sweden
632
380
267
99
Northern Europe
Canada
Taiwan
UL/CSA
Semiconductors
2G DDR3 (35nm),
64Gb NAND Flash MLC
4Gb DDR3 SDRAM
Unit: %
LED TV Carbon Emissions (Model: UN55D8000YF)
2,926
86
557
101
59
5
17
Global Carbon Footprint Labeling
12
1
Development
Production
1
Product Use
Disposal
Samsung Electronics measures the carbon emissions from all of its production processes, addresses any issues involved
immediately, and continues to work hard to minimize them. Typically, GHG emissions from product use take up a bigger
Notebook Carbon Emissions (Model: NT202B5B)
Unit: %
proportion than any other in the entire life cycle of an electronic product.
The company’s efforts to reduce power consumption and GHG emissions, therefore, start right at the design phase
in order to improve product energy efficiency. By securing carbon labeling and low carbon product certification for
64
its products, the company has dominated government procurement markets while consolidating its environmental
leadership role in the private sector. Apart from its efforts to develop low carbon eco-products, the company continues
to strive for the galvanization of its roles in the Korean carbon labeling system. The company was instrumental in
32
establishing Korea’s carbon labeling system as initiated by KEITI (Korea Environmental Industry & Technology Institute)
3
1
in 2009. At the end of 2012, Samsung Electronics was certified for its ability to implement carbon labeling certification
tasks for itself by the organization.
ENV34 2013 Sustainability Report
Development
Production
Product Use
Disposal
Samsung Electronics ENV35
A/C Carbon Emissions (Model: ADX200VSHHXA1)
Unit: %
Galaxy Note2 Carbon Emissions certified by
JEMAI(Japan Environmental Management Association for Industry)
0%
■ Raw materials collection
80
■ Production
1% 16%
18%
■ Logistics
■ Use
1
0
Development
Production
19
Product Use
■ Disposal
2%
20%
Disposal
38% 79%
Global Certification
In 2011, Samsung Electronics received a certification from The Carbon Trust of the UK for its Galaxy S2. It has since
received certification for its Galaxy Note and Galaxy S3, its flagship smartphone. In 2012, the company received Japan’s
Carbon Footprint label for its Galaxy Note2 for the very first time in the electronics industry.
Green Certification in Korea
Green Certification is awarded by KIAT(Korea Institute for Advancement of Technology) under
Global Carbon Certification
the auspices of the MOTIE to eco-technologies and eco-business that have contributed to energy
Description
The Carbon Trust,
U.K.
Carbon Footprint, Japan
Certified Items
Date
Galaxy Note2
Jan. 28, 2013
Galaxy S3
Jul. 30, 2012
Galaxy Ace Duos
Jul. 30, 2012
Galaxy Note
Mar. 2, 2012
Galaxy S2
Mar. 2, 2012
Galaxy Note2
Nov. 30, 2012
Certification Contents/Characters
and resource conservation and GHG emissions reduction. It is one of the Korean government’s
Reduction of carbon emissions compared to the
key initiatives for low carbon green growth.
previous model (Galaxy Note)
By the end of 2012, Samsung Electronics had received 21 green technology certificates and one
Reduction of carbon emissions compared to the
green business certificate for its establishment of a large-scale decomposition and treatment
previous model (Galaxy S2)
facility for discharge PFC gases from semiconductor processes.
Satisfactory level of carbon emissions
First certification for a mobile phone (along with
Galaxy S2)
First certification for a mobile phone (along with
Galaxy Note)
First certification for a mobile phone
Galaxy Note2 Carbon Emissions certified by The Carbon Trust (on the basis of British Standards)
0%
■ Manufacturing 1 )
■ Logistics
17%
■ Use
■ Disposal
Carbon reduction over the
28%
previous model 14%
Total
25.67(kg)
69%
1) Emissions from the manufacturing stage include those from parts manufacturing.
ENV36 2013 Sustainability Report
Samsung Electronics ENV37
Green Operation Sites
Operation-Site
Policies and Starategies
Internal/external communication
Samsung Electronics operates its green management system to preserve the global environment, and is involved in
Samsung Electronics publishes an annual sustainability report, and discloses its environmental safety management
Environmental
related activities such as reducing greenhouse gas emissions, water resource consumption, and the amount of waste
information to key stakeholders, including employees and local communities. In addition, Samsung Electronics
Management
generated, as well as increasing resource recycling. Samsung Electronics is establishing response measures for various
operates an environmental safety committee to resolve employee issues and handle local community requirements.
environmental risks while continuing such efforts to secure sustainability. Based on these activities, harmful effects are
Company representatives and an environmental safety expert are members of the committee. Committee decisions and
System
minimized and environmental incidents are prevented at the source.
implementation results are disclosed transparently, using various communication methods including local community
briefing sessions and websites.
Targets and Assessment of Achievements
The EHS Strategy Council is convened on a regular basis to devise policies aimed at preventing EHS accidents and to
Environment and Safety Risk Assessment
assess environment and safety risks. The council reviews and analyzes global environmental guidelines and national
Samsung Electronics conforms to the guidelines and global environmental regulations presented by international
policies, and makes decisions on the relevant corporate policies. It also analyzes the green management environmental
organizations (such as the UN) and private organizations. In addition, Samsung Electronics preemptively responds to
indices of the company’s global workplaces and shares the implementation results and success stories to improve the
the prevailing environmental, safety, and health regulations, which are becoming more stringent year by year; as well as
environmental safety level continuously.
applies to corporate management.
Samsung Electronics has selected the following four key green management environmental indices and focuses on the
Risk Analysis and Response Process
achievements.
First, the rate of management system certification acquisition indicates whether the detailed setting of targets and
activity, and the review process of the company’s workplaces are systematically performed. New workplaces aim to
acquire the certificate within one year of their establishment by developing the environmental safety management
system. Second, the greenhouse gas index* is a representative index of response to global climate change. Samsung
Electronics manages the scopes 1-3.
Third, the water resource use index indicates the results of efforts to save water resources at workplaces. The index is
Information
collection
Risk
analysis
Take
Action
Monitoring
Understanding external
environmental issues
Physical risk
Checking internal
capability
Performance check and
data collection
Enacting new laws
Regulatory risk
Establishing and
implementing the
response plan
Establishing regulations
and procedures
Reinforcing regulations
Reputation risk
designed to achieve water source stability. Fourth, the waste generation quantity index shows the circulation efficiency
of the resources used in a given workplace, with the ultimate aim of recycling all waste materials generated by the
business place.
KPI Target and Performances
Rate of management system
Water resource
certification acquisition **
Category
Level of
ISO 14001
OHSAS 18001
ISO 50001
100%
100%
29%
Waste
Water intensity
(Water withdrawal /
Sales)
Rate of
recycling
41 tons
94%
/KRW 100 million
achievement
Waste intensity
(Waste quantity/
Sales)
0.34 ton
Stakeholders'
requirements
Risk analysis and response when building or expanding a business site
/KRW 100 million
in 2012
2015
100%
100%
100%
target
•Standardizing management system
operation
Implementation
strategies
•Certificate acquisition for a new entity
within one year
50 tons
95%
0.38 ton/KRW 100
/KRW 100 million
million***
2009 level
2009 level
•Securing stable water
resources
•Increasing water
reuse
Phase
•Developing the resource
cycling type system
Business
Planning
Construction
Facility
Start-up
Analyzing the legal
requirements
Analyzing the
ecological impact
Understanding the environment/construction
regulations
Obtaining construction
and environment permission and authorization
Reviewing cultural assets
and habitat distribution
Understanding the
infrastructure status
Meeting the environmental regulations
Checking the infrastructure status
Project approval
Construction approval
Start-up approval
•Increasing the number of
recycling items
•Suppressing waste
generation
* For greenhouse gas targets, refer to the climate change response.
** Based on 34 manufacturing workplaces (6 in Korea, 28 in foreign countries).
*** The target was recalculated due to the split of the LCD Business Division and the merger of the LED Business Division.
Analysis
and
Response
Conducting safety evaluation before start-up
Samsung Electronics carries out continuous activities and investments to secure water resources, preserve ecosystems,
prevent resource depletion, and increase resource recycling. In addition, it has successfully met all the relevant legal
requirements by developing a pollutant and chemical management system, with no violations recorded in 2012.
ENV38 2013 Sustainability Report
Response Results
Samsung Electronics ENV39
Environmental Safety Accident Response System
Environmental safety management system certification
Samsung Electronics has drawn up a number of emergency scenarios to cope with potential safety accidents such
All of Samsung Electronics' manufacturing workplaces have acquired ISO 140001 and OHSAS 18001 certification - the
as harmful chemical leaks or spills, environmental pollution, fire and/or explosion, and natural disaster; and verifies
international environmental safety management system; and maintain environmental management through follow-
the effectiveness of the emergency response system by conducting regular emergency response exercises. Based on
up and re-certification reviews. In addition, six domestic workplaces and four overseas workplaces acquired the
these emergency scenarios, an emergency response team is formed and an additional damage is prevented by taking
international energy management system ISO 50001 in 2012; and all of Samsung Electronics’ work places across the
emergency measures. In addition, emergency evacuation drills and emergency exercises are performed regularly to
world aim to obtain the certificate by 2015.
ensure that employees are able to evacuate the site quickly and safely. Upon completion of the response to an incident,
its cause is analyzed to prevent the recurrence of similar incidents in the future.
Status of environmental safety certification
Emergencies Response Procedure
Accident
Emergency
Investigation &
Counter-
Preventive
Occurrence
Measures
Cause Analysis
Measures
Measures
•Diffusion
of situation
information
•Formation of risk
management
committee
•Secondary
accident
prevention activity
•Assessment of
accident type
•Implementation
of emergency
measures
•Accident
investigation /
cause analysis
•Risk phase analysis
•Recovery
measures
•Goods support
•Business
continuity plan
•Establishment
of recurrence
prevention
measures
ISO 14001
OHSAS 18001
ISO 50001
Korea
100% (6)
100% (6)
100% (6)
Global
100% (34)
100% (34)
29% (10)
Certification acquisition status
Work place
Area
(Corporate)
•Review of
effectiveness of
accident response
system
ISO 14001
Certificate
acquired date
OSHAS 18001
Certification
agency
OSHAS 18001
ISO 50001
Certification
agency
Certificate
acquired date
Certification
agency
Suwon
1996-10
UL DQS
2000-11
UL DQS
2012-06
UL DQS
Gumi
1996-11
UL DQS
2001-10
UL DQS
2011-07
UL DQS
Gwangju
1996-10
UL DQS
2002-10
UL DQS
2012-05
UL DQS
Giheung
1996-09
BV
1999-12
BV
2011-11
BV
Hwaseong
2001-11
BV
2001-11
BV
2011-11
BV
Onyang
1996-09
BV
1999-12
BV
2011-11
BV
SAMEX
2000-12
UL DQS
2003-12
UL DQS
SAS
2001-01
PRJ
2007-10
PRJ
Samsung conducts risk assessments according to OHSA18001(Occupational Health and Safety Assessment Series)
SEM-P
2004-11
UL DQS
2006-06
UL DQS
in all of manufacturing workplace, and continues to improve the work environment. Samsung also conducts regular
SEDA-P(C)
2009-11
UL DQS
2009-11
UL DQS
education programs to increase the awareness of health and safety among its workers and run emergency relief sys-
SEDA-P(M)
2001-02
BV
2006-03
BV
tem. While the accident rates happened during work hours remained the same compared with last year, accidents
SERK
2009-04
UL DQS
2009-04
UL DQS
happened during non-work hours such as sports activities takes 71%* of total accidents. Thus, Samsung is establishing
SEH-P
2005-05
BV
2005-11
BV
safety guidelines for all leisure activities within the company.
SESK
2003-09
UL DQS
2003-09
UL DQS
SEPM
2010-12
UL DQS
2010-12
UL DQS
2012-11
UL DQS
•Implementation of
emergency escape
/ emergency
masures
Employee Injury Management
Injury Management
Global
(34)
Industrial Accident Rate
Description
Frequency rate of
injury**
National
Manufacturing
Accident rate
Accident rate
Accident rate***
SEIN-P
2003-04
SUCOFINDO
2003-10
SUCOFINDO
2012-10
UL DQS
SAVINA
2001-12
UL DQS
2002-12
UL DQS
SDMA
1999-08
DNV
2002-08
DNV
SEV
2009-09
BSI
2009-09
BSI
2012-12
BSI
TSE
2001-12
UL DQS
2003-11
UL DQS
2012-11
UL DQS
SEMA
2005-12
DNV
2005-12
DNV
SEPHIL
2002-09
SGS
2003-10
SGS
2012****
0.452
0.072
0.59
2011
0.336
0.067
0.65
0.97
SIEL-P(C)
2008-09
BV
2008-09
BV
2010
0.165
0.035
0.69
1.07
SIEL-P(N)
2000-06
AFNOR
2003-08
AFNOR
TSEC
2000-02
BV
2004-10
BV
TSOE
2008-02
CQC
2010-02
CQC
TSLED
2010-04
BSI
2010-04
BSI
SEHZ
2005-05
CQC
2006-03
CQC
TSTC
2005-05
UL DQS
2005-05
UL DQS
SSKMT
2005-04
SSCC
2005-04
SSCC
*** Accident rate = (number of the injured/number of workers)*100
SSDP
2004-09
UL DQS
2004-11
UL DQS
**** The split of the LCD Business Division and the merger of the LED Business Division were reflected.
SESC
2004-02
CQC
2004-02
CQC
SESS
2004-05
SGS
2004-05
SGS
SSEC
2003-11
CQC
2005-06
CQC
Korea
Global
2012
0.347
0.063
2011
0.262
0.052
2010
0.393
0.082
* 46 non-work related accidents among 65 total employee accidents of Korea in 2012 (71%)
** Frequency rate of injury = (number of disasters/annual work hours)*1,000,000
ENV40 2013 Sustainability Report
Acquisition rate (no. of workplaces)
Region
Samsung Electronics ENV41
Water resource management
Status of
Workplace
Environment
Management
Description
With the problem of water shortages having emerged as a widespread global issue, Samsung Electronics clearly
recognizes its responsibility as one of the world's leading IT companies. As such, it implements enterprise water
Risk Countermeasures
Reputation Disposal of wastewater
Risks
resource management policies and reduction targets, and prepares and executes response strategies to decrease
•Continuous monitoring of discharge water and early establishment of
environmental management system (EMS) for new manufacturing facilities
Wastewater leakage, etc.
•Operation of emergency response organizations and enhanced internal
and external communication about the company’s water resources
management
serious management risks. Furthermore, the enterprise water use status has been monitored for several years. Based on
the monitoring results, Samsung Electronics carries out water saving activities, secures stable water supply sources, and
makes efforts to maintain them.
Water resource policies
Water resource Management
Samsung Electronics recognized the importance of global water resource issues, and therefore established the water
In 2012, Samsung Electronics’ industrial water consumption declined sharply due to the separation of the LCD sector,
resource management policy to minimize management risks due to water shortages and increase communication with
which accounted for 48%* of the company’s entire industrial water consumption. Municipal water and groundwater
its stakeholders.
consumption experienced slight increases due to added employees, cafeterias and sanitation facilities. Samsung
Code of Conduct
Electronics will implement effective water consumption reduction activities to achieve its target of 50 tons/KRW 100 M by
2015.
Strive to minimize water risk impact by our business activities
1
Analyze the impacts of our products, production activities and services
Water withdrawal
make on water resources and minimize risks by identifying and
Basic Philosophy
Instill an awareness of the importance of water resources as a part of our
Description
Korea
corporate culture
2
Samsung Electronics recognizes the
Integrate the importance of water resource protection and sustainability
management into the corporate culture and ensure responsible water
the impact on local communities and the environment.
sustainability of society and
business management, and contributes to
its protection as a responsible corporate
Proactively cooperate with public water policies.
3
citizen of global community.
4
Water resource status
Total
49,003
6,014
235
55,252
39
2011
103,562
5,834
205
109,601
91
86
91,225
5,145
180
96,550
2012**
49,003
18,806
827
68,636
41
2011
103,562
17,325
780
121,667
74
2010
91,225
13,457
607
105,289
68
Global
Generation (1,000 tons)
Waste water intensity (ton/ KRW 100 M)
2012**
43,291
31
2011
97,370
81
2010
87,639
78
49,289
29
2012**
2011
102,906
62
2010
91,183
59
Using the water resource management tools distributed by the FAO and the WBCSD, Samsung Electronics has identi-
* The proportion of water used by the LCD Business Division in 2011.
fied the water resource risks in its 34 owned manufacturing plants. According to the recommendations of Carbon Dis-
** The split of the LCD Business Division and the merger of the LED Business Division are reflected in the figures.
closure Project, Samsung has analyzed each water resource risk associated with its business sites in countries suffering
severe water stress and has developed differentiated emergency countermeasures for each site.
Risk Management
Description
Physical
Risks
Water resource saving activities
Samsung Electronics’ water resource conservation efforts can be divided into two broad types: minimization of water
inflow through manufacturing process efficiencies and optimization of water use through retreatment and recycling
Risk Countermeasures
facilities. In 2012, Samsung Electronics conserved a total of 42,104 thousand tons of water through the following water
resource conservation efforts.
Water quality degradation
•Assurance of water quality throughout Water pre-treatment process
Floods
•Creation of wetlands, establishment of embankments, and subscription to
natural-disaster insurance
Water resource conservation efforts
Water supply disruptions
•Building dual main water supply lines and sufficient water storage facilities
to prevent disruptions of work
Optimization of water management
Regulatory Changes in regulations on water •Establishment of internal regulations on discharge concentration that
Risks
usage & disposal
are stricter than legally required; increased water recycling to reduce
discharge quantity
Efficiency standards legislation
Uncertainty over new legislation
ENV42 2013 Sustainability Report
Korea
Disclose our policies and activities on water resource management
stakeholders including local communities in a transparent manner.
Ground water
2012**
Description
water resource management policies by international institutes, the
Disclose company policies and activities related to water resource use to
Municipal water
Waste water generation
Proactively contribute to the establishment and implementation of
government and local authorities in line with relevant guidelines.
Industrial water
2010
Global
resource management by employees with the highest consideration for
importance of water resources in the
Consumption
intensity
(ton/KRW 100 M)
Withdrawal by water intake source (1,000 tons)
implementing new technologies.
•Evaluation of water efficiency for new facilities; investments in existing
facilities for water efficiency improvements
Installation of discharge water
processes for utility systems and
treatment systems for optimum
semiconductor production
recycling
•Optimization of the water used
for ultrapure water production,
web scrubber, cooling tower, and
wastewater processing facilities
•Re-processing of acid/alkaline and
organic wastewater for the ultrapure
water production system
•Re-processing of sewage to produce
firefighting and landscaping water
U
se of discharged water in other
processes
•Re-use of ultrapure water for other
processes
•Re-use of condensed water generated
by the outdoor air handling unit, and
concentrated water discharged from
the cooling tower for the web scrubber
•Continuous monitoring of global environmental legislation trends
Samsung Electronics ENV43
Water Recycling
Waste management
Recycled Water
Description
Korea
Global
As part of its efforts to prevent resource depletion and improve the resource recycling rate by minimizing resource
Recycled Ultra-Pure Water
consumption, Samsung Electronics aims to recycle all waste materials generated by its work places.
Recycled Quantity
Recycling Rate
Supply Quantity Recovery Quantity
Recovery Rate
(Unit : 1,000 tons)
(%)
(Unit : 1,000 tons) (Unit : 1,000 tons)
(%)
2012*
34,225
61.9
29,226
13,917
47.6
2011
81,863
74.7
117,321
59,289
50.5
Due to the split of the LCD Business Division in 2012, waste quantity reduced by 19% in comparison to that of the previous
2010
72,832
75.4
121,170
67,693
55.9
year. Thanks to continuous recycling efforts, 94% of all waste materials generated at work places throughout the world
2012*
42,104
61.3
40,988
21,510
52.5
were recycled. In particular, sludge remaining after wastewater processing and ash remaining after waste incineration
2011
90,068
74.0
128,554
66,676
51.9
were recycled. As a result, the quantity of burial waste was reduced by 43%* compared with the previous year.
2010
79,012
75.0
127,636
72,812
57.0
Samsung Electronics will resolutely implement efficiency enhancement activities in its resource cycling system, in order
* The split of the LCD Business Division and the merger of the LED Business Division are reflected in the figures.
Internal/external communication regarding water resources
To achieve this goal, the number of waste materials for recycling is being expanded continuously. Meanwhile, waste
processing companies are visited regularly to check that they comply with the regulations and Samsung Electronics'
standards, in order to prevent illegal processing and movement between nations.
to achieve the goal of 0.38 tons/KRW 100 Million** waste generation in revenue KRW and a recycling rate of 95%by 2015.
Unit: tons
Generation
Samsung Electronics discloses information on its business places’ water resource consumption to key stakeholders
including employees and local communities in a transparent manner.
Employees can check the status of the company’s water resource management, and Samsung Electronics provides
water saving guidelines, and encourages its employees to apply guidelines in daily life. In addition, Samsung Electronics
carries out river ecosystem preservation activities together with local NGOs and local school students.
Waste generation quantity
Description
Non-hazardous waste
Hazardous waste ***
Total
Korea
2012
317,905
61,859
379,764
Global
2012
493,349
86,125
579,474
Impact of waste water discharge on public waters
Samsung Electronics discharges all wastewater generated by its work places after processing it at internal processing
Waste processing quantity
facilities. The company’s internal standard, which is more stringent than the national legal standard, is applied to
Waste in proportion to processing methods (tons)
discharge water, and discharge water is monitored. For some of domestic workplaces located inside industrial complexes
and overseas work places, wastewater generated at the work place is processed internally first, and then re-processed
Description
by sewage treatment facilities before discharge. In addition, Samsung Electronics looks to increase biological diversity
and preserve the environment by carrying out environmental preservation activities around rivers in the vicinity of its
Korea
business places throughout the world, together with NGOs and local school students.
Workplace
Suwon
Hwaseong
Refined wastewater
Global
discharged into river
Woncheoncheon Stream
Recycling
Incineration
Landfill
Total
Waste intensity
Rate of recycling
(ton/KRW
(%)
100 million)
2012****
364,588
9,277
5,899
379,764
0.27
96
2011
490,123
12,255
22,009
524,387
0.43
93
2010
489,492
17,173
14,252
520,917
0.46
94
2012****
543,233
16,627
19,614
579,474
0.34
94
2011
645,942
16,786
49,143
711 ,871
0.43
91
2010
604,266
22,742
36,144
663,152
0.43
91
* The result of the LCD Business Division in 2011 is excluded from the figure.
Gumi
-
** The target was recalculated due to the split of the LCD Business Division and the merger of the LED Business Division.
Gwangju
-
*** Calculation by work place due to the different calculation criteria of each country.
Giheung
Osancheon Stream
Onyang
Gokgyocheon Stream
**** The split of the LCD Business Division and the merger of the LED Business Division are reflected in the figures.
Stream Preservation Activities (Gumi work place)
Water ecosystem preservation and water quality improvement activities
The semiconductor work place monitors the water quality of rivers into which wastewater is discharged and the impact
on the ecosystem, and carries out continuous improvement activities in association with local colleges.
Recycling Rate
Unit : %
■ Global
■ Korea
94
91
96
93
94
91
Large amounts of steam are generated by the discharged water from the company’s business places during the winter
season, due to the temperature difference with the surrounding area. As such, discharge water reduction facilities
have been installed at various rivers to protect their ecosystems. Furthermore, the exotic fish known as the "Nile mouth
breeder", which disturbs certain river ecosystems, has been eradicated by reducing the temperature of discharge water
to under 10℃ in the winter season. Also, the secondary damage caused by stream around dewatering outlets has been
prevented to improve the river environment. Samsung Electronics will continue monitoring the water quality and water
ecosystems of its final discharge rivers, and will continue studying and investing in preserving the ecosystem.
2010
ENV44 2013 Sustainability Report
2011
2012
Samsung Electronics ENV45
Pollutant management
Managing soil contaminants
Samsung Electronics conducts research on environmental pollutant reduction and invests in facilities. Furthermore, in
relation to the discharge of environmental pollutants, Samsung Electronics manages pollutants by applying an internal
standard that is more stringent than the prevailing legal standards.
The discharge density of all discharge facilities in Korea is monitored 24 hours a day using the TMS (Tele Monitoring
System); and an emergency response system is operated to take action at the moment a problem occurs.
Samsung Electronics prevents soil pollution by chemicals at the source, by separately storing chemicals used in the
production process at non-transmission processed storage facilities.
In addition, the components of burial waste generated at its work places are analyzed and legally processed using a
legally-designated handling company. In addition, waste processing companies are visited regularly to check that they
are complying with the regulations and Samsung Electronics' standards.
Air contaminant management
Management of hazardous materials
Samsung Electronics has reduced the quantity of pollutant discharge by replacing its boilers with low NOx burner
Samsung Electronics performs EHS pre-evaluation based on the MSDS (Material Safety Data Sheet), Chemical Warranty
boilers, installing optimal prevention facilities when increasing new production lines, and continuously performing
Letter, and LoC(Letter of Confirmation). Permitted chemicals are strictly monitored in their method of use and place of
efficiency enhancement activities at its prevention facilities.
use while countermeasures are offered for possible incidents. Regular training is provided to the workers responsible
for handling chemicals; storage and handling facilities are continuously monitored. In addition, chemicals are used at
Unit: tons
Generation of Air pollutant (Korea)
worksites equipped with safety equipment and the proper protection gear, and separately kept at non-transmission
processed storage facilities.
Description
Korea
Air pollutant discharge quantity
NOx*
2012**
SOx
Dust
NH₃
HF
1
8
275
0.008
21
2011
409
0.006
44
6
14
2010
468
0.059
40
10
12
* Recalculated by applying the Special Act on Seoul Metropolitan Air Quality Improvement (The boiler discharge quantity has
Hazardous Materials Quantity (Korea)
■ Total quantity (1,000 tons)
333
304
■ Intensity (ton/KRW 100 M)
252
been added.)
** The split of the LCD Business Division and the merger of the LED Business Division are reflected in the figures.
Managing Ozone Depleting Substances (ODS)
depletion substances defined by the Montreal Protocol. Instead, it uses HCFC substances in refrigerators, and cooling
0.28
0.22
Samsung Electronics does not use CFC substances that have high Ozone Depletion Potential (ODP), among the ozone
2010
2011
0.22
2012
equipment refrigerants and cleaners in its business places, as they have relatively low ODP. Furthermore, HCFCs will also
be reduced by introducing new technologies that use HFCs, which do not deplete the ozone layer, in the near future.
Water pollutant management
The semiconductor workplace has applied the inorganic wastewater re-use system since 2008; and developed an acid/
alkaline wastewater recycling technology in 2011, followed by a two-step waste water recycling system in 2012 that
reduced overall waste water quantity.
Unit: tons
Generation of Water Contaminants
Description
Korea
Global
Category
COD
BOD
SS
F
Heavy metals
2012*
149
92
21
175
20.2
2011
755
210
91
345
21.6
2010
584
110
56
244
1.6
2012*
306
92
84
241
20.6
2011
876
210
184
430
25.3
2010
685
110
130
274
2.2
* The split of the LCD Business Division and the merger of the LED Business Division are reflected in the figures.
ENV46 2013 Sustainability Report
Samsung Electronics ENV47
Green Communication
Biodiversity
Biodiversity Conservation: Basic Philosophy and Action Plan
Demand for the protection of biodiversity is increasing since an international agreement on biodiversity protection was
signed in 1992. Samsung Electronics is responding to changing demands by raising awareness on the importance of
Stakeholder
Communication
Stakeholder Communication Programs
Samsung Electronics regards communication with all interested parties as the basis of its green management activities. As
such, Samsung Electronics has defined six types of stakeholders as customers, suppliers, local communities, government,
biodiversity. We have created a basic philosophy and action plan on biodiversity protection to promote it in our business
NGOs, and employees, and conducted an Materiality Test to reflect the opinions of various stakeholders. Based on this
activities.
assessment, Samsung Electronics analyzed each internal and external stakeholder to find out the level of interest they
have in the program and the impact they can make to the business. The results were applied to Samsung’s management
Basic Philosophy of
Biodiversity Conservation
Action Plan on Biodiversity Protection
1
Value Recognition
1All employees shall regard biodiversity conservation
activities and the results of sustainability management are disclosed transparently to build positive relations with
stakeholders.
Key Stakeholders and Communication Channels
activities as an important part of green management.
2Assessment and Reduction of impact on Environment
1Analyze lifecycle impact of our products on biodiversity
Samsung Electronics recognizes the
benefits of healthy ecosystems and rich
biodiversity, and we shall minimize
negative impacts on biodiversity and
actively promote ecosystem protection
activities.
and the ecosystem while making an effort to minimize
all negative impacts identified.
•Eco-friendly campaign with the
•Customer relationship
management (CRM)
•Eco-friendly
3Biodiversity Conservation Activities
awareness and
1Place a higher priority on environmental management of
satisfaction survey
operation sites with higher biodiversity and implement
biodiversity protection activities tailored for each site.
Local
communities
Customers
participation of local residents
•Foundation of a “one company, one
village” sisterhood relationship
•Children's environmental schools
•Hosting of college student CSR
•Provision of green
forums
marketing
4Communication
1Maintain good communication with stakeholders
including employees, local communities and NGOs, and
collaborate with them to make contributions in local
biodiversity protection initiatives.
•Energy saving
partnership
Stakeholder
Communication
Suppliers
NGOs
•Support for
•Answering
environment-related
inquiries
greenhouse gas
•Response to green
inventory
ranking
•Training in climate
•Sustainability report,
change response
information posting on
web pages
•Meeting with the CEO
•Samsung Live articles, Samsung
Employees
Government
•Participation in the green
consumption promotion policy by
Media
the Ministry of Environment
•Internal blogs, 100 Letter Discussion
•Participation in the Environment
•Eco-friendly campaign
Mark and carbon labeling system
Eco-Forum for college students
The "College Student Eco-Forum" was held in May 2012 to
introduce Samsung Electronics’ green management activities and
eco-friendly products to 100 invited college students interested
in corporate social responsibility and green management
obligations. The college students who participated in the forum
proposed their opinions about environmental protection and
climate change response activities, as well as enterprise activities
and the release of eco-friendly products by Samsung Electronics.
Samsung Electronics will increase its open communication
channels in order to hear the voices of college students and
people from all walks of life.
ENV48 2013 Sustainability Report
Samsung Electronics ENV49
PlanetFirst Summer School for primary school students
G20 G2A2 (Green Growth Action Alliance)
The PlanetFirst Summer School was opened for two days in July 2012 by inviting primary school students to participate
Some 50 organizations, including Samsung Electronics, enterprises and financial institutes of the G20 countries, and
in outdoor learning and eco-friendly education. Forty primary school students visited the ‘Green Tomorrow of Samsung
international organizations, participate in the G2A2, which was established during the G20 Business Summit held in
Corporation’ located at Yongin, Gyeonggido, where they learned all about the eco-friendly Eco-home, and visited the
June 2012. The G2A2 proposes policies for promoting global green growth to G20 governments. Its proposals generally
green energy experience hall operated by the Korea Energy Management Corporation. On the second day, they visited
concern increase development and use of renewable energy sources, the promotion of eco-friendly product trading, the
the Delight Eco-Zone at the Seocho Samsung Building, and attended a lecture titled "Eco-friendly software in our daily
improvement of energy efficiency, and the promotion of investment by private enterprises in the green growth sector.
life." Samsung Electronics plans to carry out various educational and experience programs to increase children's interest
in eco-friendliness and raise awareness of green life.
EICC (Electronic Industry Citizenship Coalition)
The EICC was established in 2004 by leading global electronics companies to discuss CSR issues and potential response
initiatives. The EICC general meeting was held in Seoul in February 2012. At the regular meeting, first held in Korea
with the support of Samsung Electronics, key CSR activities are introduced along with the shared growth policies of the
Korean government.
Employee Environmental Communication
Samsung Electronics holds various eco-friendly events and training programs, voluntary services, and campaigns in
order to encourage its employees to take an interest and participate in environmental protection activities, and engages
in active communication with its employees. In particular, Samsung Electronics declared its determination to protect the
ecosystem by holding a declaration ceremony of the "basic concept of biological diversity preservation" at Gwangreung
PlanetFirst Talk
The PlanetFirst Talk on technologies that can coexist with nature was
held in August 2012 and attended by 60 invited college and high school
Forest, which was designated as a biosphere reserve by UNESCO in July 2012.
students. The talk explained why environment-related issues such
Declaration ceremony of the "Biodiversity Preservation"
as energy and greenhouse gas are the subjects of serious discussion
Samsung Electronics held a ceremony to declare the "basic concept of biological diversity preservation" at Gwangreung
in contemporary society, and the importance of green management
Forest, which was designated as a biosphere reserve by UNESCO in 2012. During this event, in which 100 employees and
activities. Students were also invited to freely air their opinions on
their families participated, children learned about native plants and autogenous insects during the ecology class. Then,
nature-based technologies.
participants removed invasive plants that disturb the ecosystem and clean the streams around the arboretum.
Membership in and Activities of Associations
WSC (World Semiconductor Council)
Samsung Electronics has taken the lead in the industry's joint efforts to reduce semiconductor processing gas (PFC)
emissions and energy consumption by participating in the WSC's ESH TF. In 1999, Samsung Electronics voluntarily
declared, along with other WSC members, to reduce its PFC (a representative greenhouse gas in the semiconductor
area) emissions by 10% in 2010, compared with 1997, and successfully achieved this goal. Currently, WSC members
share PFC reduction cases at the ESH Conference twice a year, and collaborate on efforts to develop effective reduction
technologies.
Declaration of the
"Biodiversity Preservation"
Biodiversity Conservation Activities
Green Insight lectures
The eco-friendly lecture was held by inviting, the producer of the
MBC documentary Tears of the Earth, in order to increase employee's
KBCSD (Korea Business Council for Sustainable Development)
interest in the environment on June 5, World Environmental Day. Some
Samsung Electronics contributes to the sustainable development of Korean society, including greenhouse gas reduction,
250 participating employees realized that human greed is destroying
by participating as a vice-president company of the KBCSD, a Korean network of the WBCSD (World Business Council
the earth’s ecosystems, such as the Amazon River and the Antarctic,
for Sustainable Development). In relation to greenhouse gas reduction, Samsung Electronics proposes policies for the
at high speed; and learned that human beings are a part of nature and
efficient reduction of greenhouse gas emissions to the Korean government, and researches methods of expanding
thus should coexist with nature, by observing the way of life of primitive
the infrastructure for the greenhouse gas reduction cooperation businesses of conglomerate companies and small and
tribes and penguins that live in harmony with nature, as examples.
medium-sized companies.
Green Insight Lecture
ENV50 2013 Sustainability Report
Samsung Electronics ENV51
Spring Festival
Green job creation in Cambodia through UNIDO partnership
The "Spring Festival" was held in May 2012 by inviting about 5,000 employees and their families to a virtual experience
related to "climate change and greenhouse gases” and an eco-friendly class for children. Participants learned about
the significance of Samsung Electronics' PlanetFirst initiative and experienced first-hand the eco-friendly lifestyle habit.
Samsung Electronics has been implementing a partnership project in Cambodia by providing US$ 1,350, 000 of support
together with UNIDO (United Nations Industrial Development Organization) and KOICA (Korea International Cooperation
Agency) since July 2012, in order to train the personnel who will repair electronics and process E-Waste and electronic
equipment. Samsung Electronics will prevent environmental pollution caused by the illicit burial of E-Waste and provide
jobs to Cambodian youth during this project, which will continue until June 2015. Samsung Electronics plans to educate
about 200 engineers in the field of electronics repair services and E-Waste in connection with the Ministry of Labor,
Ministry of Environment, and the National Technology Training Institute in Cambodia, by dispatching internal experts to
Cambodia. In addition, Samsung Electronics will select and nurture electronic equipment processing companies in five
areas including Phnom Penh in Cambodia, and support the employment of the trainees and encourage them to start their
own business. More and more electronic appliances are being used in Cambodia every year, but a significant amount of
malfunctioning products are needlessly discarded due to a lack of product repair technologies, personnel, and recycling
facilities, which further increases environmental pollution. Samsung Electronics proposes E-Waste handling methods to
the Cambodian government, using the collection and recycling know-how accumulated, and plans to invite the related
parties to visit the related processing facilities in Korea.
Virtual experience of greenhouse gas
Eco Class
Samsung Electronics Live Channel
Samsung Electronics Live, an internal online communication
channel, is designed to encourage employees to take greater
interest in the environment and practice an eco-friendly lifestyle.
In 2012, various articles were posted on the channel, including
"The importance of water", "PlanetFirst children's green
classroom", and "Global warming and biological diversity".
Employees are encouraged to read the environment-related
information contained in these articles and discuss them online.
Samsung Electronics-UNIDO Partnership
Samsung Electronics Live Column
Training engineers to fix E-Waste and electronic equipment
Global Environmental Preservation Activities
Samsung Electronics carries out environmental protection activities all around the world in keeping with its strong sense
of responsibility towards the protection of the global environment. In particular, Samsung Electronics is promoting a
diverse range of programs, including an environmental purification program and local resident education for developing
countries, as well as environmental classes for children from underprivileged social groups.
Korea
Bird Protection
Since 1991 Samsung Electronics has been supporting the "Winter migratory bird-feeding event", "Bird sister school",
and "Inviting children from remote islands to Seoul" programs hosted by the Korean Association for Bird Protection, in
order to protect Korea’s wildlife and natural monuments.
Cleaning and winter migratory bird feeding events have been conducted at the Nakdong River habitat for migratory
birds since 2002, with the participation of the environment sister school, the Ministry of Environment, Gumi City,
and NGOs dedicated to ecosystem protection. Such events are designed to raise awareness of the importance of the
environment among students of the environment sister school.
‘World Water Day’ Ecosystem Preservation
On March 22, the ‘World Water Day’, Samsung Electronics conducts various water saving and water ecosystem
preservation activities together with local autonomous bodies and NGOs at home (Suwon, Giheung, Hwagseong,
Onyang, Gumi, Gwangju) and abroad (China, Thailand).
On the ‘World Day for Water’ in 2013, Samsung Electronics held a mural painting event for Woncheoncheon Stream;
ENV52 2013 Sustainability Report
Samsung Electronics ENV53
planted willow trees near the source of the river to create ecological waterways; carried out river purification activities
Central and South America
to improve the water quality of rivers situated near to business premises; and promoted an advertisement campaign to
Amazon School Green Class
protect the Suwon green frog, which is an endangered species.
The Manaus corporate in Brazil opened a green class at the Amazon School located in the Amazon native village in
Green Camp with Family
October 2012. The green class, in which 75 local community students participated, included an essay-writing contest
In October 2012, the Gumi manufacturing site invited 120 employee family members and sister school students to the
on the theme of climate change and the Amazon, and education about climate change. In addition, the students were
"Green camp for love of the environment and family" held at the Geumosan Mountain Environment Training Institute,
introduced to methods of preserving the Amazon rainforest and eco-friendly activities that can be implemented in their
Gyeongsangbukdo. The event was designed to inform local residents and children of the seriousness of climate change
daily life.
and the importance of practicing a low-carbon, green lifestyle. The camp ran various programs designed to promote
understanding of climate change, introduce methods of practicing the green lifestyle, and show the participants how to
"Global Action" Event
create an ecosystem food chain, as well as a forest experience.
Fifty employees of the Manaus subsidiary in Brazil participated in the Global Action Environmental event on May 5, 2012,
together with 3,500 local residents. The importance of ecological preservation and environmental pollution prevention
was discussed during the children's environment class, and an event in which toys were made with waste materials was
held.
Feeding migratory birds
Source of the river purification activities
Mural painting of the
Woncheoncheon Stream
Amazon School Green Class
Amazon School Green Class
Global Action
South East Asia
Beach Purification in Malaysia
Green Camp
Creating eco-bags
Green Class
The Malaysia subsidiary carried out a beach purification campaign with the participation of 100 employees at Negeri
Sembilan beach, and promoted awareness of the importance of the marine ecosystem and the practice of an eco-
China
friendly lifestyle among tourists visiting the beach.
"One company, one river" and "One company, one village"
Tree-planting activity in Thailand
The Shenzhen subsidiary in China conducts the "one company, one river" campaign continuously. Some 100 employees
The Thailand subsidiary is planting trees at the Laemcha bang area as it is prone to flooding. This activity is designed to
helped carry out river purification work every month near the Great Sand River, which has been designated as a protected
raise awareness among local residents of the importance of the forest ecosystem, and to prevent flooding.
river by Shenzen subsidiary, the Great Sand Park, Zhongshan Park, and the Mangrove. In addition, as a part of the "one
company, one village" activities, eco-friendly education was provided to the students of the sister school as well as to
neighboring primary schools. Furthermore, the Suzhou subsidiary in China ran a large-scale eco-friendly advertisement
campaign to improve public awareness of the importance of environmental protection in 2012, as a part of the service
activities designed to celebrate the 17th anniversary of its foundation. The subsidiary also performed tree planting events
and environmental purification activities on major environment-related anniversaries including the Tree Planting Day,
World Day for Water, and World Environmental Day.
Malaysian beach Clean Campaign
Shenzen coporate's Clean activities
ENV54 2013 Sustainability Report
Children's eco-friendly activities for
the "One company, One village"
program
Malaysian beach Clean Campaign
Tree-planting activity in Thailand
Participants in the Suzhou
subsidiary 's environmental
purification campaign
Samsung Electronics ENV55
Europe
Green Class in Hungary
In Hungary, a green class was held eight times to raise awareness among local community residents and children of
Appendices
the importance of recycling and recycling methods. The green class, attended by 300 people, provided education on
recycling methods by waste resource type, the significance of recycling, and Samsung Electronics’ efforts to reuse
E-Waste, and encouraged the participants to put these ideas into practice.
Making Bird nests in Slovakia
A bird nest-making event is held in Slovakia to protect rare birds that make their nests near the manufacturing sites.
Employees made bird nests together with local community children and installed them on the roof of the manufacturing
site. The children were also educated about the importance of the ecosystem and environmental protection.
Green Class in Hungary
Green Class in Slovakia
Making bird nests in Slovakia
Africa
Solar Power Project of the year
Samsung Electronics has been operating the Solar-Powered Internet School in Africa since 2011. Electricity is supplied
to all facilities inside the schoolroom using photovoltaic panels. The Solar-Powered Internet School, which mainly
educate youth in rural villages, was selected as the "Solar Generation Project of the Year" at the African Energy Awards
in April 2012.
Solar-Powered Internet School
Solar-Powered Internet School
African Energy Awards Ceremony
Sec. 04
Contents
90 An Independent Assurance Report
92 GRI Index
ENV56 2013 Sustainability Report
Appendices
Independent Assurance Report
To the management of Samsung Electronics
bility to anyone other than the management of the Company as a body and the Company for our work or this re-
We have been engaged by Samsung Electronics (the “Company”) to perform an independent assurance engagement in regard to the following aspects of Samsung Electronics’ 2013 Sustainability
Report (the “Report”).
identifying material issues.
• Nothing has come to our attention to suggest that
port save where terms are expressly agreed and with our
material issues were omitted in this process.
prior consent in writing.
Responsiveness
• The Company has included in the Report its
response to the material sustainability issues which
Inherent limitations
Scope and subject matter
Board
Non-financial performance information is subject to more
The information for the year ended December 31, 2012
(2) AA1000 Assurance Standard(2008), issued by Ac-
inherent limitations than financial information, given the
(hereinafter, collectively referred to as the “ ability Infor-
countAbility
characteristics of the subject matter and the methods
there were material deficiencies in the issue man-
used for determining such information. Qualitative
agement system.
mation”) on which we provide limited assurance consists
of:
Our work involved the following activities:
• The Company’s conclusion on meeting the prin-
1. Interviews with the personnel responsible for internal
ciples of Inclusivity, Materiality and Responsiveness in
reporting and data collection to discuss their approach to
the AA1000 Accountability Principles Standard 2008
stakeholder inclusivity, materiality and responsiveness.
A limited assurance engagement is less in scope than
(“AA1000APS”);
2. Visits to the Company’ headquarters and two domestic
a reasonable assurance engagement under ISAE 3000.
offices: to understand the systems and processes in place
Consequently, the nature, timing and extent of proce-
ments.
• Nothing has come to our attention that causes us to
believe that Sustainability Data for the year ended
December 31, 2012 are not fairly stated, in all material
respects, in accordance with the Reporting Principles.
for managing and reporting the Sustainability Data.
dures for gathering sufficient, appropriate evidence are
Recommendations
in the Report (except for the GHG emissions scope 1,
3. Review of a sample of internal documents relevant to
deliberately limited relative to a reasonable assurance
From our work, we have provided the following recom-
scope 2 data and Energy consumption data, the “Sus-
output from the risk assessment process, sustainability-
engagement. In particular:
mendations to the management.
tainability Data”) which is based on the reporting prin-
related policies and standards, the sustainability Material-
ciples set out on “About This Report” (the “Reporting
ity Assessment Matrix and other documents from stake-
Principles”).
• he “Facts and Figures” information on page 62 ~ 88
• We did not attend any stakeholder engagement activi-
• In the report, economic performance is reviewed
holder engagement activities
ties. Therefore our conclusions are based on our dis-
at a corporate level, including all domestic and
4. Evaluating the design and implementation of the key
cussions with management and staff of the Company
overseas offices/sites and subsidiaries. However,
With regard to the financial data included in the key fig-
processes and controls for managing and reporting the
and our review of selected documents provided to us
sustainability performance review is limited to the
ures on pages 62~63, our procedures were limited to
Sustainability Data.
by the Company.
domestic operation of the Company and overseas
verifying that they were correctly derived from the Com-
5. Limited testing, through inquiry and analytical review
pany’s audited consolidated financial statements.
procedures, of the preparation and collation of the Sus-
mance only, as set out in the scope and subject matter
that the sustainability management review is com-
tainability Data.
• The scope of our work was restricted to 2012 perfor-
manufacturing subsidiaries only. In order to ensure
section above. Information relating to the year ended
parable to the economic performance review, we
We read the other information included in the Report and
December 31, 2011 and earlier periods have not been
recommend the Company broaden the scope of the
consider whether it is consistent with the Sustainability
subject to assurance by us.
sustainability management subject to reporting to
terial inconsistencies with the Sustainability Information.
Respective responsibilities of the management
of the Company and Samil PricewaterhouseCoopers
Conclusion
the performance management criteria for the sus-
Our responsibilities do not extend to any other informa-
The management of the Company is responsible for es-
Based on the results of the assurance work performed
tainability key performance indicators for continu-
tion.
tablishing assessment criteria that meets the principles
and the Assessment Criteria, our conclusion is as follows:
ous improvement. Communication with internal
Information. We consider the implications for our report if
we become aware of any apparent misstatements or ma-
cover all the domestic and overseas subsidiaries.
• It is recommended to establish the objective and
of Inclusivity, Materiality and Responsiveness in the
AA1000APS, measuring performance based on the “As-
Assurance work performed
sessment Criteria”, and reporting this performance in the
We conducted our engagement in accordance with ISAE
Report.
3000(1) and AA1000AS(2). The term ‘moderate assur-
and external stakeholders is required through
• On the AA1000APS principles;
Inclusivity
• The Company has collected concerns and opinion
disclosing these activities and the results need to be
reflected upon when managing objectives.
• In addition, it is required to create the environmen-
through stakeholder communication channels that
tal and social value beyond compliance, which turns
ance’ used in AA1000AS is designed to be consistent with
Our responsibility is to provide a conclusion based on our
include customers, employees, the government,
to economic benefits in the long term, and also
‘limited assurance’ as articulated in ISAE 3000. Our assur-
assurance procedures in accordance with ISAE 3000 and
business partners, local community, stockholder/
disclose the details of the progress to stakeholders.
ance is a Type II assurance engagement as defined in the
AA1000AS.
investor, press and NGOs
Guidance for AA1000AS.
2013 Sustainability Report
issues.
• Nothing has come to our attention to suggest that
interpretations of relevance, materiality and the accuracy
of data are subject to individual assumptions and judg-
90
are defined through process for identifying material
• Nothing has come to our attention to suggest that
This report, including the conclusion, has been prepared
material stakeholder groups were excluded in these
(1) International Standard on Assurance Engagement
for the management of the Company as a body, to assist
channels.
3000 (Revised) – ‘Assurance Engagements other than
the management in reporting on the Company’ sustain-
Materiality
Audits or Reviews of Historical Financial Information’ is-
ability performance and activities. To the fullest extent
sued by International Auditing and Assurance Standards
permitted by law, we do not accept or assume responsi-
Samil PricewaterhouseCoopers
Seoul, Korea
• The Company has identified most relevant and
significant sustainability issues through process for
June, 2013
Samsung Electronics
91
Appendices
GRI Index
G3.1
Disclosure Items
ISO 26000
Report of Samsung Electronics
Page
G3.1
Profile
ISO 26000
Report of Samsung Electronics
Governance, 4.10
Commitments and
4.11
Engagement
Processes for evaluating the highest governance body's own performance, particularly
with respect to economic, environmental, and social performance.
6.2
Corporate Governance
Explanation of whether and how the precautionary approach or principle is addressed by
the organization.
6.2
Materiality Matrix
4.12
Externally developed economic, environmental, and social charters, principles, or other
initiatives to which the organization subscribes or endorses.
6.2
Corporate Governance
4.13
Memberships in associations (such as industry associations) and/or national/international
advocacy organizations in which the organization: * Has positions in governance bodies;
* Participates in projects or committees; * Provides substantive funding beyond routine
membership dues; or * Views membership as strategic.
6.2
WBCSD, KBCSD, EICC
Page
Profile
Strategy
1.1
and Analysis 1.2
Statement from the most senior decision-maker of the organization.
6.2
CEO message
Description of key impacts, risks, and opportunities.
6.2
Sustainability Overview
Fact&Figures
Organization 2.1
Profile
2.2
Name of the organization.
-
Samsung Electronics
Primary brands, products, and/or services.
-
anagement Results,
M
Global Network
Report
Parameters
6.2
Sustainability Report
8~11
2.3
Operational structure of the organization, including main divisions, operating companies,
subsidiaries, and joint ventures.
2.4
Location of organization's headquarters.
-
Global Network
12, 13
2.5
Number of countries where the organization operates, and names of countries with either
major operations or that are specifically relevant to the sustainability issues covered in
the report.
-
Global Network
12, 13
2.6
Nature of ownership and legal form.
-
Organization of Business Areas
2.7
Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).
-
Global Network
2.8
Scale of the reporting organization.
-
Management Results
2.9
Significant changes during the reporting period regarding size, structure, or ownership.
-
Organization of Business Areas
2.10
Awards received in the reporting period.
-
Creating Eco-friendly Products
3.1
Reporting period (e.g., fiscal/calendar year) for information provided.
-
About this report
About this report
3.2
Date of most recent previous report (if any).
-
About this report
About this report
3.3
Reporting cycle
-
About this report
About this report
3.4
Contact point for questions regarding the report or its contents.
-
About this report
About this report
3.5
Process for defining report content.
-
About this report
About this report
3.6
Boundary of the report
-
About this report
About this report
3.7
State any specific limitations on the scope or boundary of the report
-
About this report
About this report
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations,
and other entities that can significantly affect comparability from period to period and/or
between organizations.
-
3.9
Data measurement techniques and the bases of calculations
-
Materiality Matrix
3.10
Explanation of the effect of any re-statements of information provided in earlier reports,
and the reasons for such re-statement
-
Facts & Figures
62~88
3.11
Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
-
Facts & Figures
62~88
3.12
Table identifying the location of the Standard Disclosures in the report.
-
GRI index
3.13
Policy and current practice with regard to seeking external assurance for the report.
7.5.3
Organization of Business Areas
2, 3
About this report
About this report
16
16
12, 13
51
6.2
Corporate Governance
6, 7
4.3
For organizations that have a unitary board structure, state the number and gender of
members of the highest governance body that are independent and/or non-executive
members.
6.2
Corporate Governance
6, 7
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to
the highest governance body.
6.2
Corporate Governance
6, 7
4.5
Linkage between compensation for members of the highest governance body, senior
managers, and executives (including departure arrangements), and the organization's
performance (including social and environmental performance).
6.2
Corporate Governance
6, 7
Processes in place for the highest governance body to ensure conflicts of interest are
avoided.
6.2
4.7
Process for determining the composition, qualifications, and expertise of the members of
the highest governance body and its committees, including any consideration of gender
and other indicators of diversity.
6.2
Corporate Governance
4.8
Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.
6.2
Continuous Growth
Energy
Water
Corporate Governance
6.2
Stakeholder Engagement
20~22
6.2
Stakeholder Engagement
20~22
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and
by stakeholder group.
6.2
Stakeholder Engagement
20~22
4.17
Key topics and concerns that have been raised through stakeholder engagement, and
how the organization has responded to those key topics and concerns, including through
its reporting.
6.2
Stakeholder Engagement
Materiality Matrix
20~23
Disclosure Items
6, 7
6, 7
EC1
Biodiversity
Page
Application Level
14~19
Direct economic value generated and distributed, including revenues, operating costs, 6.8/6.8.3/6.8.7/6.8.9
employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.
8~11, 14, 15, 62~67
●
EC2
Financial implications and other risks and opportunities for the organization's activities 6.5.5
due to climate change.
EC3
Coverage of the organization's defined benefit plan obligations.
6.5.5
EC4
Significant financial assistance received from government.
-
EC5
Range of ratios of standard entry level wage by gender compared to local minimum 6.4.4/6.8
wage at significant locations of operation.
EC6
Policy, practices, and proportion of spending on locally-based suppliers at significant 6.6.6/6.8/6.8.5/6.8.7
locations of operation.
EC7
Procedures for local hiring and proportion of senior management hired from the local 6.8/6.8.5/6.8.7
community at significant locations of operation.
46, 47, 70, 71
EC8
Development and impact of infrastructure investments and services provided primarily 6.3.9/6.8/6.8.3/6.8.4/
for public benefit through commercial, in-kind, or pro bono engagement.
6.8.5/6.8.6/6.8.7/6.8.9
34~41, 75~77
EC9
Understanding and describing significant indirect economic impacts, including the ex- 6.3.9/6.6.6/6.6.7/6.7.8/6.8/
tent of impacts.
6.8.5/6.8.6/6.8.7/6.8.9
34~41, 75~77
48~51, 78~85
●
9, 65, 74
●
66
●
76, 77
○
●
●
●
●
49~52
EN1
Materials used by weight or volume.
6.5/6.5.4
ENV 21~23, 33 / 81, 82, 84
●
EN2
Percentage of materials used that are recycled input materials.
6.5/6.5.4
ENV 23, 33 / 84
●
EN3
Direct energy consumption by primary energy source.
6.5/6.5.4
ENV 21~23 / 81
●
EN4
Indirect energy consumption by primary source.
6.5/6.5.4
ENV 21~23 / 81
●
EN5
Energy saved due to conservation and efficiency improvements.
6.5/6.5.4
ENV 22, 23 / 81
●
EN6
Initiatives to provide energy-efficient or renewable energy based products and services, 6.5/6.5.4
and reductions in energy requirements as a result of these initiatives.
ENV 24 / 81
EN7
Initiatives to reduce indirect energy consumption and reductions achieved.
6.5/6.5.4
ENV 22, 23 / 79, 82
●
EN8
Total water withdrawal by source.
6.5/6.5.4
ENV 43 / 52, 53, 86
●
EN9
Water sources significantly affected by withdrawal of water.
6.5/6.5.4
ENV 43 / 52, 53, 86
●
EN10
Percentage and total volume of water recycled and reused.
6.5/6.5.4
ENV 43 / 52, 53, 86
●
EN11
Location and size of land owned, leased, managed in, or adjacent to, protected areas and 6.5/6.5.6
areas of high biodiversity value outside protected areas.
ENV 48 / 12, 13
EN12
Description of significant impacts of activities, products, and services on biodiversity in 6.5/6.5.6
protected areas and areas of high biodiversity value outside protected areas.
ENV 44, 48
EN13
Habitats protected or restored.
6.5/6.5.6
ENV 44, 48
●
EN14
Strategies, current actions, and future plans for managing impacts on biodiversity.
6.5/6.5.6
ENV 44, 48
●
EN15
Number of IUCN Red List species and national conservation list species with habitats in 6.5/6.5.6
areas affected by operations, by level of extinction risk.
N/A
14, 15
6, 7
ISO 26000
Environment Disclosure on Management Approach
Materials
6.2
List of stakeholder groups engaged by the organization.
About this report
Indicate whether the Chair of the highest governance body is also an executive officer.
2013 Sustainability Report
Economic
Performance
GRI index
6, 7
Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance, including
relevant risks and opportunities, and adherence or compliance with internationally agreed
standards, codes of conduct, and principles.
WBCSD, KBCSD, EICC
Basis for identification and selection of stakeholders with whom to engage.
G3.1
23
Corporate Governance
Governance, 4.9
Commitments and
Engagement
6~8
4.14
Economic Disclosure on Management Approach
About this report
6.2
Corporate Governance
23
16
Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational
oversight.
4.6
6, 7
4.15
8, 9, 12, 13
Governance, 4.1
Commitments and
Engagement 4.2
92
Disclosure Items
●
●
●
●
Samsung Electronics
93
Appendices
G3.1
Disclosure Items
ISO 26000
Environment Disclosure on Management Approach
EN16
Emissions,
Effluents and EN17
Waste
EN18
Products and
Services
Application
Level
Page
49~52
Total direct and indirect greenhouse gas emissions by weight.
6.5/6.5.5
ENV 14~20 / 79, 80
●
Other relevant indirect greenhouse gas emissions by weight.
6.5/6.5.5
ENV 14~20 / 79, 80
●
Initiatives to reduce greenhouse gas emissions and reductions achieved.
6.5/6.5.5
ENV 14~20 / 79
●
EN19
Emissions of ozone-depleting substances by weight.
6.5/6.5.3
ENV 46
●
EN20
NOx, SOx, and other significant air emissions by type and weight.
6.5/6.5.3
ENV 46 / 88
●
EN21
Total water discharge by quality and destination.
6.5/6.5.3
ENV 43 / 86, 88
●
EN22
Total weight of waste by type and disposal method.
6.5/6.5.3
ENV 45 / 87
●
EN23
Total number and volume of significant spills.
6.5/6.5.3
ENV 47 / 88
●
EN24
Weight of transported, imported, exported, or treated waste deemed hazardous under the 6.5/6.5.3
terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste
shipped internationally.
No waste shipped internationally
EN25
Identity, size, protected status, and biodiversity value of water bodies and related habitats 6.5/6.5.4/6.5.6
significantly affected by the reporting organization's discharges of water and runoff.
EN26
Initiatives to mitigate environmental impacts of products and services, and extent of impact 6.5/6.5.4/6.6.6/6.7.5
mitigation.
EN27
Percentage of products sold and their packaging materials that are reclaimed by category.
Compliance
EN28
Monetary value of significant fines and total number of non-monetary sanctions for non- 6.5
compliance with environmental laws and regulations.
6.5/6.5.4/6.7.5
Transport
EN29
Significant environmental impacts of transporting products and other goods and materials 6.5/6.5.4/6.6.6
used for the organization's operations, and transporting members of the workforce.
Overall
EN30
Total environmental protection expenditures and investments by type.
6.5
●
ENV 44
ENV 24~37 / 48~51
ENV 33, 34 / 84
58
ENV 19, 20 / 80
ENV 5 / 78
◐
●
◐
◐
●
●
G3.1
Disclosure Items
ISO 26000
Application
Level
Page
Non-discrimi- HR4
nation
Total number of incidents of discrimination and corrective actions taken.
6.3/6.3.6/6.3.7/6.3.10/6.4.3
No violation
HR5
Freedom of
association
and collective
bargaining
Operations and significant suppliers identified in which the right to exercise freedom of as- 6.2/6.3.3/6.3.4/6.3.5/6.3.8/
sociation and collective bargaining may be violated or at significant risk, and actions taken 6.3.10/6.4.3/6.4.5
to support these rights.
20
◐
●
Child labor
HR6
Operations and significant suppliers identified as having significant risk for incidents of child 6.3/6.3.3/6.3.4/6.3.5/6.3.7/6.3.10
labor, and measures taken to contribute to the effective abolition of child labor.
22, 54, 55
Prevention
of forced and
compulsory
labor
HR7
Operations and significant suppliers identified as having significant risk for incidents of 6.3/6.3.3/6.3.4/6.3.5/6.3.7/6.3.10
forced or compulsory labor, and measures to contribute to the elimination of all forms of
forced or compulsory labor.
54, 55
Security
practices
HR8
Percentage of security personnel trained in the organization's policies or procedures con- 6.3/6.3.5/6.4.3/6.6.6
cerning aspects of human rights that are relevant to operations.
54, 77
Indigenous
rights
HR9
Total number of incidents of violations involving rights of indigenous people and actions 6.3/6.3.6/6.3.7/6.3.8/6.6.7
taken.
Assessment
HR10
Percentage and total number of operations that have been subject to human rights reviews 6.3.6/6.3.9/6.3.10
and/or impact assessments.
2, 54, 55
Remediation
HR11
Number of grievances related to human rights filed, addressed and resolved through formal 6.3.6/6.3.9/6.3.10
grievance mechanisms.
54, 55
●
●
No violation
Society Disclosure on Management Approach
34~41
Local
communities
SO1
Percentage of operations with implemented local community engagement, impact assess- 6.3.9/6.8/6.8.5/6.8.7/6.6.7
ments, and development programs.
34~41
Corruption
◐
●
◐
●
●
SO2
Percentage and total number of business units analyzed for risks related to corruption.
6.6/6.6.3
68, 69
◐
Labor Disclosure on Management Approach
46, 47, 57~59
SO3
Percentage of employees trained in organization's anti-corruption policies and procedures.
6.6/6.6.3
68, 69
◐
Employment
Total workforce by employment type, employment contract, and region, broken down by 6.4/6.4.3
gender.
46, 47, 70~74
SO4
Actions taken in response to incidents of corruption.
6.6/6.6.3
68, 69
◐
SO5
Public policy positions and participation in public policy development and lobbying.
6.6/6.6.4/6.8.3
22, 23
●
LA2
Total number and rate of new employee hires and employee turnover by age group, gender, 6.4/6.4.3
and region.
74
●
SO6
Total value of financial and in-kind contributions to political parties, politicians, and related 6.6/6.6.4/6.8.3
institutions by country.
Our code of conduct prohibits
contribution to political parties
●
LA3
Benefits provided to full-time employees that are not provided to temporary or part-time 6.4/6.4.3/6.4.4
employees, by major operations.
●
Anti-competi- SO7
tive behavior
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly prac- 6.6/6.6.5/6.6.7
tices and their outcomes.
-
Compliance
SO8
Monetary value of significant fines and total number of non-monetary sanctions for non- 6.6/6.6.7/6.8.7
compliance with laws and regulations.
-
Local
communities
SO9
Operations with significant potential or actual negative impacts on local communities.
LA1
Public policy
46, 47
LA4
Labor/
management LA5
relations
Percentage of employees covered by collective bargaining agreements.
Occupational
health and
safety
Percentage of total workforce represented in formal joint management-worker health and 6.4/6.4.6
safety committees that help monitor and advise on occupational health and safety programs.
56~59
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work- 6.4/6.4.6
related fatalities by region and by gender.
56~59
LA8
Education, training, counseling, prevention, and risk-control programs in place to assist 6.4/6.4.6/6.8/6.8.3/6.8.4/6.8.8
workforce members, their families, or community members regarding serious diseases.
56~59
LA9
Health and safety topics covered in formal agreements with trade unions.
6.4/6.4.6
56~59
●
LA10
Average hours of training per year per employee by gender, and by employee category.
6.4/6.4.7
74
●
LA11
Programs for skills management and lifelong learning that support the continued employ- 6.4/6.4.7/6.8.5
ability of employees and assist them in managing career endings.
46, 47, 74
LA12
Percentage of employees receiving regular performance and career development reviews, 6.4/6.4.7
by gender.
46, 47, 70
LA13
Composition of governance bodies and breakdown of employees per employee category ac- 6.3.7/6.3.10/6.4/6.4.3
cording to gender, age group, minority group membership, and other indicators of diversity.
LA14
Ratio of basic salary and remuneration of women to men by employee category, by signifi- 6.3.7/6.3.10/6.4/6.4.3/6.4.4
cant locations of operation.
LA6
LA7
Training and
education
Diversity and
equal
opportunity
LA15
6.4/6.4.3/6.4.4/6.4.5/6.3.10
●
Minimum notice period(s) regarding significant operational changes, including whether it is 6.4/6.4.3/6.4.4/6.4.5
specified in collective agreements.
Return to work and retention rates after parental leave, by gender.
6.3.7/6.3.10/6.4.4
Human Resource Disclosure on Management Approach
Investment and
procurement
practices
94
HR1
-
○
●
6, 7
●
●
SO10
●
73
●
HR2
Percentage of significant suppliers, contractors and other business partners that have un- 6.3/6.3.3/6.3.5/6.4.3/6.6.6
dergone human rights screening, and actions taken.
54, 55
HR3
Total hours of employee training on policies and procedures concerning aspects of human 6.3/6.3.5
rights that are relevant to operations, including the percentage of employees trained.
◐
HRD Programs include
Human rights
●
◐
Prevention and mitigation measures implemented in operations with significant potential or 6.3.8
actual negative impacts on local communities.
34~41
Customer
health and
safety
Life cycle stages in which health and safety impacts of products and services are assessed 6.3.9/6.6.6/6.7/6.7.4/6.7.5
for improvement, and percentage of significant products and services categories subject to
such procedures.
48~51
Total number of incidents of non-compliance with regulations and voluntary codes concern- 6.3.9/6.6.6/6.7/6.7.4/6.7.5
ing health and safety impacts of products and services during their life cycle, by type of
outcomes.
No violation
PR1
PR2
Product and
service
labelling
Marketing
communications
46, 47, 54, 55
54, 55
No operation site with significant
potential or actual negative
impacts on local communities
26~33
○
○
●
●
●
●
PR3
Type of product and service information required by procedures, and percentage of signifi- 6.7/6.7.3/6.7.4/6.7.5/
cant products and services subject to such information requirements.
6.7.6/6.7.9
48~51
PR4
Total number of incidents of non-compliance with regulations and voluntary codes concern- 6.7/6.7.3/6.7.4/6.7.5/
ing product and service information and labeling, by type of outcomes.
6.7.6/6.7.9
No violation
PR5
Practices related to customer satisfaction, including results of surveys measuring customer 6.7/6.7.4/6.7.5/6.7.6/6.7.8/6.7.9
satisfaction.
PR6
Programs for adherence to laws, standards, and voluntary codes related to marketing com- 6.7/6.7.3/6.7.6/6.7.9
munications, including advertising, promotion, and sponsorship.
20
PR7
Total number of incidents of non-compliance with regulations and voluntary codes concern- 6.7/6.7.3/6.7.6/6.7.9
ing marketing communications, including advertising, promotion, and sponsorship by type
of outcomes.
20
●
●
6.3.9/6.8/6.8.5/6.8.7
Product Responsibility Disclosure on Management Approach
●
Samsung Electronics offers fair
compensation irrespective of gender,
ethnicity, religion, social status or age
Percentage and total number of significant investment agreements and contracts that in- 6.3/6.3.3/6.3.5/6.6.6
clude clauses incorporating human rights concerns, or that have undergone human rights
screening.
2013 Sustainability Report
○
20, 32
●
●
●
●
●
Customer
privacy
PR8
Total number of substantiated complaints regarding breaches of customer privacy and loss- 6.7/6.7.7
es of customer data.
20
Compliance
PR9
Monetary value of significant fines for non-compliance with laws and regulations concern- 6.7/6.7.6
ing the provision and use of products and services.
20
● Fully Reported
◐ Partially Reported
●
●
○ Not Repoerted
Samsung Electronics
95
Date of Publication
June 28. 2013
Publisher
Oh-Hyun Kwon
Published by
Samsung Electronics
Designed by
Eda Communications
Participant Information
Report Prepared by
Global Policy & Relations Team, Corporate Management Office
SoungSoo Song, Euiheon Jeong, Daesoon Park
Corporate Human Resources Team
Bokki Moon
Corporate General Affairs Group
Wuil Cho
Corporate Communications Team
Ji-Eun Min
Corporate Auditing Team
CS & Environment Center
Kyounghee Kwon
Inhee yang
Corporate Finance & Accounting Team
Hongseok Jang
Environment & Safety Center
Donny Park
Community Relations
Jerry Ko
Partner Collaboration Center
YoonSeong Hwang, Induk Kim
We welcome yout feedback.
Samsung Eletronics CSR e-mail / [email protected]
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