Samsung Semiconductor’s products have obtained the “Carbon Footprint” certification, which is issued by Carbon Trust of the U.K through the comprehensive measuring of the environmental impact of carbon generation throughout a product’s lifecycle, from extracting and transporting the raw material to making and using the product.
Since our achievement of the “Carbon Footprint” certification as the first in the semiconductor industry in 2019, the scope of certification has been expanded to not only key memory products, but also system semiconductors. As of 2021, a total of 24 products, such as 20 memory semiconductors and four system semiconductor products, have obtained the “Carbon Footprint” certification.
We also won the “Carbon Reduction Certification,” which is issued when the amount of carbon generated by a follow-up model of a “Carbon Footprint” certified product is lower than the existing product, as the first in the industry. In 2021, the “Carbon Reduction Certification” was awarded to five of DRAM, SSD, and UFS memory card products, following one UFS product in 2020.
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From the purchase of raw materials to development, manufacturing, distribution, use, and disposal. Samsung Semiconductor strictly abides by the related environmental regulations by considering environmental impact caused by products throughout the process from product design to disposal.
While complying with RoHS, which are the rules of the EU and China on the restriction of hazardous substances in electrical and electronic equipment, and REACH, the EU regulation for registration, evaluation, authorization and restriction of chemicals, we are fulfilling our duty of sufficiently providing information to consumers for safe use of products according to the REACH regulation.
In accordance with the IEC definition (IEC 61249-2-21), Samsung Semiconductor complies with the halogen-free requirements.
In addition to products, we intensively manage air and water pollutants in order to prevent pollution in areas around our plants, and also to eliminate the risk of environmental pollution and regulatory violations caused by pollutant discharge.
Keeping the concentration of discharges at a considerably lower level than the legal standard, we have also established a triple interlock system to enable emergency collection of pollutants upon discharge.
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Samsung Electronics announced its new environmental strategy in September 2022, confirming its commitment to achieving net zero carbon emissions (Scope 1 & Scope 2) by 2050.
Samsung Electronics has joined RE100, a global initiative dedicated to pursuing 100% renewable energy to reduce indirect carbon emissions (Scope 2) from power consumption. The plan is to replace all electric power needs with renewable energy by 2050.
* Scope 1: Carbon emitted from the production process and the fuel use at plants
Scope 2: Carbon emitted from energy creation such as the use of electric power and steam at plants
Our overseas semiconductor plants have already been powered by 100% renewable energy since 2019. As for domestic plants, we have developed and promoted implementation plans optimized for each region by installing solar power generation facilities, purchasing renewable energy certificates, and adopting renewable power rates
in order to increase renewable energy use.
For semiconductors, the electric power use increases as the production lines expand. In particular, in Korea where Samsung Semiconductor core plants are located, achieving our goal comes with realistic difficulties due to the challenging conditions of the renewable energy provision.
Despite such difficulties and uncertainties, Samsung Electronics is striving to expand the use of renewable energy in domestic plants by keeping pace with the Korean government’s strategy to increase renewable energy use while maintaining 100% renewable energy use in overseas plants.
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Samsung Electronics announced its new environmental strategy in September 2022, confirming its commitment to achieving carbon neutrality by 2050.
To reduce direct carbon emissions (Scope 1) from plants, Samsung Electronics plans to invest heavily in innovative technologies for carbon reduction treatment facilities.
* Scope 1: Carbon emitted from the production process and the fuel use at plants
Scope 2: Carbon emitted from energy creation such as the use of electric power and steam at plants
Currently, direct carbon emissions at Samsung Semiconductor are mainly from the use of fuel such as process gas and LNG throughout the manufacturing processes.
And as an attempt to reduce process gas from the manufacturing processes, we have tried to reduce the direct emissions by decreasing the amount of process gas use, operating an integrated greenhouse gas treatment facility, Regenerative Catalytic System (RCS), and developing alternative gas with a low global warming potential.
We plan to develop new technologies to significantly improve the treatment of process gas and expand treatment facilities to its semiconductor manufacturing lines by 2030. Samsung Electronics will continue to expand waste heat utilization and consider introducing electric heat sources to reduce LNG boiler usage as part of active efforts to tackle climate change.
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Samsung Semiconductor is making various efforts for switching to circular economy by recycling wastes generated at the plants to resources.
- Extracting copper from copper sludge, the byproduct of process water purification
- Finely shredding EMC, the semiconductor sealing material, and using it as new plastic material
- Extracting gold, tungsten, and other metals from dust absorbed from production line (CV dust)
All Samsung Semiconductor plants won the Zero Waste to Landfill certification from UL (Underwriters Laboratories), a global safety certification agency, for their performance to achieve waste-to-resource circulation rate of 97% and higher. We also obtained the Triple Standard certification from Carbon Trust, a global certification agency.
* Triple Standard Certification: Certification issued to business establishments that reduced carbon and waste generation, and decreased the amount of water consumption
In particular, the five plants in Hwaseong, Giheung, Pyeongtaek, Xian, and Suzhou obtained the Zero Waste to Landfill Platinum Grade by achieving resource circulation rate of 100%. In addition, with the eight-inch wafer box and IC tray recognized as resources, no longer wastes, we, as the first in Korea’s electrical and electronics industry, obtained the Ministry of Environment’s “Circular Resource Quality Mark,” and thus are contributing to the switch to circular economy.
Samsung Semiconductor aims to obtain the Zero Waste to Landfill Platinum Grade for all plants by 2024.
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Samsung Semiconductor has established internal regulations that are far stricter than the legal standards for the concentration of pollutants, water temperature, ecological toxicity, etc. in order to minimize negative impacts of pollutants discharged from all plants on the aquatic ecosystem.
While periodically monitoring for any negative impact the discharged water has on the ecosystem, we measure water quality indicators of the rivers to which water is discharged, such as chemical oxygen demand (COD), biochemical oxygen demand (BOD), and acidity (pH), on a regular basis to control the ecological impacts. In addition, based on surveys of fish and birds, and monitoring on their habitats, we make various efforts to reduce the impact on the ecosystem.
Samsung Semiconductor plants also reduce pollutant discharge and prepare for possible environmental accidents in wastewater treatment plants by establishing a multiple defense system against water pollution. A “triple interlock” has been installed in the lead-in, processing, and discharge stages of the wastewater treatment plants. Under the multiple defense system, each interlock measures water pollutants in real-time, and if the concentration exceeds the standard or pollutant leakage occurs, an emergency pollutant collection process is started.
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We make efforts to protect valuable water resources by minimizing water consumption, and recycling and reusing wastewater.
As of 2021, we achieved a 34% recycling rate, and in domestic plants, 160,000 tons of water is reused daily. We will continue managing water resources by changing the process control values, switching waste treatment methods, and optimizing process operation.
In 2020, Samsung Semiconductor, as the first in global semiconductor industry, won recognition for reducing water consumption from Carbon Trust, a global certification agency, and in 2021, we were awarded the Triple Standard certification.
* Triple Standard Certification: Certification issued to business establishments that reduced carbon and waste generation, and decreased the amount of water consumption
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Based on the Universal Declaration of Human Rights, UN Guiding Principles on Business and Human Rights, OECD Guidelines for Multinational Enterprises, UN Convention on the Rights of the Child, and ILO Declaration on Fundamental Principles and Rights at Work, Samsung Electronics has established human rights policy for all employees and partners.
※ Details of labor and human rights policies can be found on the Samsung website.
Samsung Electronics listens to employees’ complaints through Organizational Culture SOS, Compliance channel, and the employees’ representative body. For the complaints and reports, anonymity is strictly guaranteed.
When recruiting new employees fresh out of college and high school, rather than experienced employees with distinctive fields of expertise, the applicants’ educational background, age, place of birth, and gender, etc. are not disclosed to the assessors.
In addition, education is provided to and a pledge is collected from the assessors to not ask applicants about their personal information including physical conditions and family information that is not relevant to their job competencies and abilities. We are committed to preventing discrimination through regular education.
All manufacturing plants of DS Division have obtained and annually renew the ISO 45001 certification, global safety, and health management system standard, and are fully meeting customers’ safety and health-related requirements.
Samsung Electronics is designing safe worksites, establishing operating procedures, providing personal protective equipment, and providing safety education, etc. according to the “Working Environment Management Guidance” to prevent workers from being exposed to potential risk factors, such as electric shock, fire, and fall.
In addition, we have established a set of procedures to identify, conduct detailed assessment on, and respond to emergency situations and accidents including fire, bad weather, and chemical leaks according to the Infrastructure and Environmental Safety Risk Response Manual. We are also holding regular map exercises to verify effectiveness of accident response system in preparation for various accidents and emergency situations by type.
In particular, pre-operation safety education has been designated as compulsory education and is provided in the form of TBM (Tool Box Meeting).
When recognizing a risk, workers have the right to prevent accidents by stopping the operation immediately. This applies also to the employees of partners.
We conduct risk assessment on all processes and operations on a regular basis. We also dedicate the utmost effort to safety management by installing safety devices on all facilities including interlocks and protective fences.
To prevent occupational injuries and diseases of workers, we regularly provide education on safety and health, and also operate the Musculoskeletal Disease Prevention Center, and an in-house clinic. In addition, we operate the standards for protective equipment use according to the locations and operation types, and the SOP reflecting the standards. At the same time, we provide education to workers about the use of protective equipment to promote their compliance with the criteria before entering locations where protective equipment use is required.
For safe management of chemicals and accident prevention, we provide education to workers handling chemicals, and periodically inspect the facilities where chemicals are stored and used.
In case an injury or a disease occurs, a series of procedures, such as report, tracking, and management, are thoroughly implemented according to the environmental safety workplace system under the internal accident handling regulations. Also, the types and history of accidents are recorded.
When an affected employee returns to work, necessary actions are taken following close examination about the necessity of additional treatment, etc. through an interview with an occupational health specialist.
For workers’ health management, we provide regular health checkup service each year. For people suspected of hypertension, diabetes, and other diseases according to the examination results, we also provide 1:1 consulting with specialists and health improvement programs to support in their disease prevention and health improvement. In addition, for workers handling chemicals, we provide “special health check-up” service according to the Occupational Safety and Health Act.
Under the CSR vision of “Together for Tomorrow! Enabling People,” Samsung Electronics focuses on educational support to teenagers. We also perform a range of activities to promote shared growth in order to solve social issues and contribute to local communities.
Samsung Electronics operates a number of educational programs for teenagers in order to foster future talents that will lead creative, inclusive, and sustainable society through education and technological development.
※ Program details can be found on the website.
To support the vulnerable class in local communities, such as the low income earners and people with disabilities (visual impairment, transport vulnerable, etc.), we perform various volunteer activities through participation by all employees.
Despite limitations in volunteer works due to COVID-19 as of late, we have continued performing social contribution activities in contactless ways.
We match employees’ donations for social contribution. In addition, we support employees to autonomously propose ideas for social contribution programs and participate in the projects. We also perform other supporting activities, such as to install donation kiosks and organize regular charity events.
This is a system through which Samsung Electronics raises a fund with Industrial Bank of Korea, Korea Development Bank, and Woori Bank, and provides loan service with interest exemption or reduction to the primary, secondary, and tertiary partners that require funding support for facility investment, R&D, and operating cost. Partners that wish to receive the support can submit applications for Shared Growth Fund by visiting the banks (Industrial Bank of Korea, Korea Development Bank, Woori Bank) in person. The support is decided after the applicants are checked for their transactions with Samsung Electronics and credit ratings.
The support period is up to three years. Partners that require additional support can reapply for the program. As the period of review for reapplication is the same as that for a new application, it is recommended to submit a reapplication before the three-year support period expires.
Since 2010, we have been paying incentives to the employees of partners in the first and second half of each year in order to encourage the development of a safety management culture, motivate partners for improving Samsung Electronics’ productivity, and promote their collaboration and development for shared growth.
The incentives are paid differentially to small and medium-scale partners that have made direct contributions to Samsung Electronics’ production through environmental safety and productivity improvement assessment. This is a program operated with a goal to promote shared growth with partners, and the scope of incentive payment is expanding each year.
(KRW 74.07 billion in 2019 → KRW 77.72 billion in 2020 → KRW 89.28 billion in 2021)
The incentive system has led to the establishment of an accident prevention culture within partners to receive the incentive benefits, and also continuous reduction in the number of environmental accidents. (Number of Accidents per 10,000 Persons: 19 in 2017 → 4.4 in 2021)
In addition, as the incentive payment increased satisfaction of partners’ employees, their turnover rate has decreased, contributing to talent fostering in partners.
We provide approximately 500 job training and education courses ranging from education for new employees of partners to education on content necessary in the field, such as about leadership, quality, ICT convergence, semiconductor technology, value innovation, purchase and sales, and environmental safety. Education programs for the following month are posted on the Partners Education Center website (www.partnerseducenter.com), and registrations are received between the 1st and 15th of each month. All educational programs are provided for free.
We provide consulting support to small and medium-scale partners in Korea in relation to various fields including development, manufacturing, quality, environmental safety, purchase, and marketing. The consulting period is approximately four to six months. During this period, professional consultants of Samsung Electronics provide consulting service by visiting partners in person once or twice a week.
Applications for consulting service are received through an invitation notice posted once each in the first and second half of the year.
Following consultant allocation and pre-interview with partners, the support targets are selected. The consulting program is provided for free as part of our effort to promote collaboration for shared growth aimed at supporting competitiveness building of our strategic partners. Details of the consulting program are available on Partner Collaboration Portal (https://partner.samsungsemi.com:7777/partner/identity/anonymous/loginPage.do?_frameF=true).
Samsung Electronics strictly manages legally restricted substances and voluntarily restricted substances of which the use is restricted according to the “Operating Regulations for Product and Environmental Management Substances.”
To fundamentally prevent the inclusion of substances subject to management in our products, we conduct investigations twice a year on all partners that have manufacturing facilities in Korea, and also register and manage the status of secondary and tertiary partners in the G-SRM system. By doing so, we strictly inspect and manage the status of inclusion of target substances in parts and finished products that are used in production sites of partners.
In addition, to upgrade partners’ hazardous chemical management, we perform suggestion of alternative substances through field inspections and process automation activities.
※ Based on the international environmental regulations, such as RoHS, the EU restriction of hazardous substances in electrical and electronic equipment, and REACH, the EU regulation for registration, evaluation, authorization, and restriction of chemicals, 25 types of chemicals including benzene and normal hexane are under management.
Samsung Electronics urges all partners to manage risks in their working environments, and guarantee labor and human rights of their employees by complying with the statutes and practicing ethical management.
We share Samsung Electronics Code of Conduct, which reflects the RBA (Responsible Business Alliance) assessment criteria, with partners, and manage risks in the working environments of partners through the three-stage process of self-assessment, field inspection, and third-party verification.
Through inspection on 85 items in five categories, such as labor and human rights, health and safety, environment, ethics, and governance, of the RBA assessment criteria, we derive working environmental improvement tasks for partners, and monitor and verify partners’ improvement plans and the related measures. Ultimately, we strive for sustainable supply chain management by strengthening sustainability competencies of our partners.
Samsung Electronics strictly manages legally restricted substances and voluntarily restricted substances of which the use is restricted according to the “Operating Regulations for Product and Environmental Management Substances.”
To fundamentally prevent the inclusion of substances subject to management in our products, we conduct investigations twice a year on all partners that have manufacturing facilities in Korea, and also register and manage the status of secondary and tertiary partners in the G-SRM system. By doing so, we strictly inspect and manage the status of inclusion of target substances in parts and finished products that are used in production sites of partners.
In addition, to upgrade partners’ hazardous chemical management, we perform consulting activities to suggest alternative substances, etc. through field inspections.
※ Based on the international environmental regulations, such as RoHS, the EU restriction of hazardous substances in electrical and electronic equipment, and REACH, the EU regulation for registration, evaluation, authorization, and restriction of chemicals, 25 types of chemicals including benzene and normal hexane are under management.
Samsung Electronics operates “Health Improvement Center for Partners” within Hwaseong Campus in order to manage health of partners’ workers.
In addition to assessing the risk of cardiovascular diseases of the employees of partners, healthcare consulting service is provided to individual workers in high-risk job groups. Moreover, to prevent musculoskeletal diseases, 1:1 customized consulting by individual diseases, such as through foot pressure measuring, and the related health improvement programs are provided.
In order to minimize negative impacts of mining in conflict and high risk zones on the society and environment, such as human rights violation and environmental destruction, Samsung Electronics is investigating the status of responsible mineral use annually in all raw material suppliers that are trading with the company. In addition, a guide has been established to update the company’s management system upon occurrence of changes.
Through investigation on the status of mineral use, partners that make transactions with uncertified refineries or those of which origins of minerals are unclear are guided to change refineries to those certified by the RMAP (Responsible Minerals Assurance Process). In addition, trade of conflict minerals is prevented by taking measures to restrict unit price contract on the purchase system.
Details are available in “Samsung Electronics Responsible Minerals Report” on the company website.
(https://www.samsung.com/uk/sustainability/overview/)
Under the highest management principle to achieve “legal and ethical compliance,” Samsung Electronics, as a global leading company, continuously strives to perform business activities in legal and ethical ways. Based on the management principles, we have established the Code of Conduct and Guidelines for employees in an effort to promote more responsible management activities.
* Link to Management Principles: https://www.samsung.com/uk/about-us/company-info/
* Link to Code of Conduct/Guidelines: https://www.samsung.com/uk/sustainability/labor-and-human-rights/
We operate a management process comprising three stages of prevention (employee education/guide), monitoring (inspection/survey), and follow-up management (result analysis and establishment of measures). By providing appropriate education, and setting inspection bodies and frequency, we are continuously promoting improvement to abide by the principles.
To improve business transparency and establish ethical corporate culture, Samsung Electronics operates various report channels through which violations to the company’s management principles can be reported.
* Report Channel: https://sec-audit.com/common/identity/anonymous/ssoLogin.do
In addition to an anonymous reporting system, email, address, phone number, and fax number are opened to receive reports through various routes. In addition, the secrecy of reporters is guaranteed and their identities are protected to prevent any disadvantages.
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