Sustainable Management

Vision and Key Areas

Sustainability Vision

Samsung Electro-Mechanics has established a vision for sustainable management to create value for stakeholders and enhance sustainable growth and corporate value. We will fulfill our social responsibilities for a clean global environment and strive to ensure the health and happiness of all employees. We will also relentlessly take on challenges despite external uncertainties in pursuit of sustainable growth.

Key ESG Areas

Samsung Electro-Mechanics has selected and operated seven key areas and related tasks among the areas identified by examining the level of ESG interest in the electrical and electronic parts industry as well as global trends. In addition to the seven key areas, we will continuously monitor and keep up with global trends in other ESG areas.

Sustainable Challenges for a Better Planet & Life
  • Environment
    Energy & Emissions
    Continue efforts to reduce GHG emissions to achieve carbon neutrality
    Expand certified eco-friendly products
    Waste & Recycling
    Acquire Zero Waste to Landfill for all plants by 2025
    Expand investment in waste recycling
    Water Management
    Expand water reuse rates
    Expand the establishment of water reuse facilities at all sites
  • Social
    Diversity & Inclusion
    Operate a 'participatory subcommittee'to collect diverse opinions
    Enhance interactive communication channels
    Foster/expand female leaders
    Decent Work
    Expand the flexible working system
    Introduce a customized selective welfare system
    Expand experience through employee career design
    Community Relations
    Improve the youth education project
    Encourage employees to donate their talent
    Create a healthy donation culture
  • Governance
    Governance & Risk Management
    Secure the company's sustainable growth engine by improving the expertise of the board
    Enhance the executive power of the ESG committee
    Operate the ESG council
    Develop a data-driven digital ESG platform

Sustainability Governance

  • CEO
  • CFO
    • Component Unit
    • Optics & Communication Solution Unit
    • Package Solution Unit
    • Global Manufacturing Center
    • People Team
    • Procurement Team
  • Board of Directors
  • ESG Committee
    4 independent directors, 2 inside directors (CEO, CFO)
    Determines the company's ESG directions by reviewing ESG goals and mandatory disclosures
  • ESG Group
    Led by the ESG Group under the CFO, ESG goals are aligned with business activities

ESG Committee

In October 2021, Samsung Electro-Mechanics established the ESG Committee under the Board of Directors. As the highest decision-making body, the ESG Committee promotes major ESG projects and reviews ESG disclosures to ensure that Samsung Electro-Mechanics fulfill its social responsibilities. The committee consists of four independent and two inside directors. In 2022, the company appointed Lee Yun-jeong, an environmental lawyer at Kim& Chang, as an independent director to improve the diversity and expertise of the board.

ESG Group

Samsung Electro-Mechanics operates the ESG Group as a department directly under the CFO in order to respond to ESG issues based on a strong cooperative system. The ESG Group regularly reviews the company's ESG strategies, policies, and major issues. It also handles key ESG tasks, inquiries from ESG rating agencies, and ESG disclosures through systematic collaboration with business units. In addition, the group monitors global and industry-related trends and strategic directions related to sustainability, addresses the latest issues, and drives sustainable development through active communication with internal and external stakeholders.

Stakeholder Communication

Samsung Electro–Mechanics values open communication with various interest groups. Through transparent corporate management and mutual trust opinions are actively obtained. These opinions are actively reviewed, applied in different sustainable management policies and made public through domestic and foreign channels.

Stakeholder Communication
Stakeholder Communication - Stakeholder Communication list Image
  • Customers
  • Business Partners
  • Employees
  • Communities
  • Environment
  • Shareholders

Materiality Analysis

Samsung Electro-Mechanics conducts materiality analysis to identify sustainability issues that are critical to our stakeholders, including customers and investors, and to develop appropriate response strategies. Through materiality analysis, we identify key issues that we need to address by identifying the opportunities and risks faced by the company in each of our stakeholders’ areas of interest.

Materiality Analysis Process​

  1. STEP 1 Form a pool of
    ESG issues
    ESG disclosure guidelines(GRI, SASB, etc.)
    Korean and overseas ESG rating agencies(DJSI, CDP, MSCI, etc.)
    Issues based on our ESG strategies
  2. STEP 2Analyze the issues
    (Social/environmental impact) stakeholder survey, media analysis, etc.
    (Financial impact) The weighted finance-related issues by evaluation agencies, inquiries from major investors, etc.
  3. STEP 3 Derive key issues
    Derive key issues by analyzing social, environmental, and financial impacts
  4. STEP 4 Report the issues
    Reflect them in the sustainability report

Risk Management

Internal Accounting Management

For the purpose of transparency, accounting information and for the proof of trustworthiness of the information disclosed among our stakeholders, Samsung Electro-Mechanics operates under an internal audit management system. Not only is the financial reported by the internal accountant at Samsung Electro-Mechanics, but there is also a much broader sense of an audit system that meets global standards in management of policies.

This helps us to prepare for any potential business risks, including CSR related issues, environment related regulations, conflicts on minerals management and environmental friendliness evaluations and more.

Business Continuity Management

Samsung Electro-Mechanics contributes to sustainable growth by ensuring a stable supply of products and services to customers based on the continuity of production activities. We have established the business continuity management in preparation for business suspension due to unexpected accidents.

Samsung Electro-Mechanics created scenarios to respond to crises caused by major accidents including fire and blackouts to secure business continuity. Periodic training and education on the business continuity procedure is conducted We categorize major stakeholders including internal/external customers, business partners and communities and maintain communication through stakeholder analysis.

Climate Change

Samsung Electro-Mechanics put in place a decision-making process to respond to the emission-trading scheme by operating the Climate Strategy Committee and regularly monitoring the financial impact resulting from the emission right trading. Site-specific annual safety check is carried out by an external agency, enabling comprehensive risk assessment and management of assets including on-site buildings, facilities and machinery occurring due to natural disasters.
As such, we do the utmost to maintain stable business activities.

Information Protection

We prescribed information security regulations and implementation guidelines to protect Samsung Electro-Mechanics’s critical information and assets, and operate physical and technical protection measures to abide by them. This helps us to maintain optimized sites in security through periodic inspection and improvement activities. Thanks to close business ties with related agencies outside, we explore industrial security trends and information leakage scenarios through preventive programs to safeguard against security accidents.

Tax Risk

Samsung Electro-Mechanics fulfills the obligations on tax filing and payment of taxes by complying with tax laws of local countries as prescribed in Samsung Electro-Mechanics’s tax payment management guideline. To this end, we maintain transparent relationships with tax authorities in local countries where local subsidiaries of Samsung Electro-Mechanics belong, help with career management of personnel in local subsidiaries, and proactively utilize external specialists including accountants. Samsung Electro-Mechanis do not transfer value generated from business activities to low-tax jurisdictions such as tax havens for tax avoiding purposes. In particular, we maintain fair trading prices when dealing with third parties and special parties in accordance with each domestic transaction laws. Also, we undertake transfer pricing using the arm’s length principle.

Taxpaying Management Guideline

Principle: Compliance with the HQ and tax laws of local countries

  • 1.All laws and regulations shall prioritize accounting standards and tax laws of the HQ and local countries.
  • 2.Parties involved shall recognize differences between tax laws in each country, comply with tax laws in all transactions, and implement tax filing and tax paying obligations. we do not use secrecy jurisdictions or so-called "tax havens” for tax avoidance, and do not transfer value created to low tax jurisdictions.
  • 3.Employees in charge of tax payment at local subsidiaries shall maintain transparent relationships with the tax authorities in each country and strive to prevent tax risks.
  • 4.Management of internal personnel and utilization of external specialists must be maximized to comply with tax laws in local countries of overseas subsidiaries and prevent tax risks.
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