Amid global expansion, Samsung Biologics pledges emissions drops in new ESG report

2022-07-13

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As the biotech manufacturing arm of one of Korea’s largest conglomerates is aiming to rapidly expand its global presence after a large investment by its parent, Samsung Biologics is also keeping a close eye on environmental, social and governance (ESG) goals. Its second ESG report breaks down the company’s goals for renewable energy in future projects as well as a bigger commitment to reduce emissions. The report lays out progress in reducing both direct and indirect emissions and doubles down on its commitment to drop the total by 54% by 2026 compared to 2021. That comes on top of a 32% reduction year over year. Samsung Biologics also said it would cut “other” emissions such as indirect greenhouse gases from transportation and distribution by about 26% by 2026. The company is also actively working with suppliers to transition to net zero emissions as well as invest in renewable energy. CEO John Rim told Endpoints News in an email that along with the emissions drops, the big change since the last report is that the company is now participating in a series of climate change-related initiatives. That includes the company’s involvement in the Sustainable Markets Initiative, which was launched by the royal family in the UK to reduce emissions in the supply chain. Samsung also plans to participate in a climate risk management modeling project by Financial Supervisory Service, called Frontier 1.5D, and the Carbon Disclosure Project where it currently holds a B rating. “In 2021, we analyzed every part of our business management to see where we can make quick and effective progress in our direct operations, and are now actively setting long-term goals towards decarbonization,” Rim said in the email. According to the report, Samsung’s new projects, which include a new campus dubbed Bio Campus Two located adjacent to its current 60-acre campus in Songdo, South Korea, will undergo environmental impact assessments. The Bio Campus Two assessment is set to analyze and revisit the environmental impact of the design which already includes using renewable energy on the campus. Samsung Biologics’ new “Super Plant,” dubbed Plant 4, is also expected to include renewable energy such as flat and multi-layered solar panels on its roof. Expanding diversity, equity and inclusion was another goal discussed in the ESG report, and as Rim pointed out, it’s expanding donations and activities for youth education and scholarship. The new programs include career counseling for middle school students in low-income families and a project to offer self-sufficiency training and support for at-risk youth. “We are working to accelerate diverse representation at all levels of leadership and achieve an equitable and inclusive culture,” Rim said. “We know we have much more work to do in this area, but we are committed to taking action by progressing our efforts on women in leadership and developing our framework of inclusive policies.” Among its governance goals, the company split the chair and CEO positions and granted outside directors the right to request documentation. In March, Samsung Biologics created a cross-organization task force to prevent serious accidents through process risk assessment and risk management. The ESG accounting comes as the CDMO is receiving a big chunk of change from its parent company looking to invest more in biotech. In an interview at #BIO22, Rim said the plant and campus expansions are being spurred by robust client demand, even as the company looks to invest in additional facilities related to CDO, gene therapy and mRNA production.

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