After making a concerted effort in 2021 to address environmental concerns, leading CDMO Samsung Biologics gained recognition in its industry and in South Korea for its emphasis on ESG. The company recognized that ESG, or the focus on environmental, social, and governance aspects of running a business, would be an investment in the future of business and society.
Work completed with minimal greenhouse gas emissions and a tiny carbon footprint is of considerable monetary and societal value. The most successful approach for this Korean CDMO has proved to be an all-encompassing one, as seen by the company’s recent success in the fiscal year of 2021.
In February 2021, Samsung Biologics established an Environmental, Social, and Governance (ESG) Committee to design and supervise the company’s policies. The committee is formed of four independent directors who have expertise in the areas of management, economics, biotechnology, law, and information and communication technologies, among other areas.
A report and participation in several environmentally conscious endeavors led the company to receive the CDP Korea Award as part of the Carbon Disclosure Project (CDP), in January 2022. The CDP operates a global disclosure system for investors, businesses, and regions to manage the impact their actions have on the environment. Samsung Biologics is the first and only biopharmaceutical company to be recognized for its climate-friendly efforts for this specific award.
Commitments to the Environment
In the summer of 2021, Samsung Biologics released its first-ever annual ESG report. This report emphasized the company’s unwavering dedication to the environment, which was especially evident when it came to health and safety. It examined the company’s environmental policies and practices, and as mentioned in its report, Samsung Biologics indicated it wanted to conduct its business in an ecologically sustainable manner. An ISO accreditation in energy management was recently obtained by the organization.
“We are aware of the importance of energy and climate change, and will do our best to continuously improve energy performance in key business activities,” said Samsung Biologics CEO John Rim. The company intends to become carbon-neutral in the near future.
These efforts gained international recognition very quickly. Samsung Biologics was included in the Dow Jones Sustainability World Index (DJSI) in November 2021, along with a few other Korean firms. The DJSI averaged a score of 76.5, while the newly included firms, notably Samsung Biologics, showed a significant increase in sustainable standards.
These practices don’t just help Samsung Biologics further a more sustainable outlook; they also help to boost the profitability of a company. “A robust ESG program can open up access to large pools of capital, build a stronger corporate brand and promote sustainable long-term growth benefiting companies and investors,” writes the NASDAQ’s Betsy Atkins. Companies that endorse these values and put them into practice build a competitive edge, attract future talent to work for them, and attract long-term investors who are interested in sticking with the company.
Participation in More Projects
Not only did Samsung Biologics seek to implement ESG within its own operations and strategies, it also led by example through active participation in many environmental initiatives along with other entities. Samsung Biologics has committed to thoroughly monitor, identify, and disclose data for each of its biopharmaceutical manufacturing facilities as part of its collaboration with the Carbon Disclosure Project (CDP) and Science-Based Targets (SBT).
These measures will aid both the company and the initiative in identifying climate change risks and potential for improvement, as well as the financial effect of adopting new strategies on the company’s operations and financial performance in general. It was through this participation that the Carbon Disclosure Project became aware of Samsung Biologics’ efforts to actively reduce the effects of climate change.
Samsung Biologics also joined an international initiative aimed at limiting global warming to 1.5 degrees Celsius. The Frontier 1.5D initiative was started by the Korean Financial Supervisory Service, the country’s leading financial regulatory organization. Additional organizations and educational institutions joined the initiative, including the KB Financial Group, SK Innovation, CJ CheilJedang, and the British Embassy in Korea. The company is also participating in the Sustainable Markets Initiative, which was founded by the Prince of Wales.