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1、A JOURNEY TOWARDSA SUSTAINABLE FUTURESamsung Electronics Sustainability Report 2022Approach to Sustainability 10Business Sustainability 11Sustainability Highlights of Major Products 13Sustainability Achievements 16Recognition&Awards 17Sustainability Governance 18Stakeholder Engagement 19Joining UN G

2、lobal Compact 20Business Model of Sustainability 21 ManagementOur CompanyCEO Message 2Company Overview 3Global Network 4Corporate Governance 5Compliance and Ethics 7Environment 22Environmental Management Governance 23Climate Action 25Maximizing Resource Circularity 32A JOURNEY TOWARDSA SUSTAINABLE F

3、UTUREInteractive User GuideSamsung Electronics Sustainability Report is created in interactive PDF and allows the viewer to go directly to the relevant websites through hyperlinks in the document.Click on the icons on the nav-igation bar at the top of each page to go directly to the cover page,the t

4、able of contents,the previ-ous or next page,or print.Go to the cover page of the report.Go to the table of contents in the report.Go to the previous page in the report.Go to the next page in the report.Go to the last page viewed in the report.Find information through word search.Go to Samsung Electr

5、onics homepage or access information available on external websites.Empowering Communities 41Corporate Citizenship 42SME-Startup Support 46Future Technology Cultivation Initiative 48Sustainable Supply Chain 76Responsible Supply Chain 77Mutual Growth throughout the Supply Chain 81Sustainable Supply C

6、hain 82Transparent Management of 83 Responsible Minerals Sustainability Foundation 84Materiality Assessment 85Alignment with UN SDGs 86Sustainability Value Creation 88Digital Responsibility 49Privacy 50Cyber Security 52AI Ethics 55Accessibility 57Digital Wellbeing 58Our Employees 59Labor and Human R

7、ights 60Diversity and Inclusion 65Health and Safety 69Human Resources Development 73Organizational Culture 74Facts&Figures 89Economic Performance 90Social Performance 91Environmental Performance 94Performance by Business Division 97Appendix 98Independent Assurance ReportVerification Statement on Gre

8、enhouse Gas Emission GRI IndexTCFD IndexSASB IndexCustomer Communication and PerformanceAbout this Report99100101104106108109View detailed information Dear shareholders,customers,partners and employees,I would like to express my deepest gratitude for your unsparing support for Samsung Electronics in

9、 overcoming many unexpected obstacles over the past year.In 2021,we came face-to-face with several challenges,from the prolonged COVID-19 pandemic to the accelerating climate crisis,which threatens the sustainable future of humanity,and from the economic impact of global supply chain disruptions to

10、the intensifying conflicts among nations and communities.These challenges serve as a stark reminder of our call to action for securing a sustainable future.In this context,we drastically strengthened our sustainability governance to highlight that sustainability remains our top priority in our busin

11、ess operations and to embed this priority in every aspect of the organization.In addition to establishing the Sustainability Management Office within each business unit and elevating the existing company-wide function as the Corporate Sustainability Center,we expanded the Governance Committee under

12、the Board of Directors as the Sustainability Committee in 2021 to reinforce the Boards oversight of sustainability activities.We also placed the Sustainability Council,an executive-level consultative body,under the direct leadership of the CEO in 2022.These changes have perfected a virtuous cycle wh

13、ere the pursuit of sustainability leads to advanced products and enhanced business competitiveness.Our sustainability governance serves as a momentum in identifying new drivers for sustainable growth,strengthening our future competitiveness,and fulfilling our corporate responsibility.Our ultimate go

14、al is to help consumers join us in our journey to build a better tomorrow through our innovations.We focus on stepping up our efforts to create technologies that further widen the gap with our competitors while linking consumers decision to choose our products to reflect their sustainable lifestyles

15、.Our eco-conscious advances,including low-power semiconductors,the SmartThings Energy service designed to reduce energy consumption using AI-based energy-saving features on smart appliances,the SolarCell Remote Control charged by sunlight or indoor lighting,and smartphone models made with materials

16、recycled from discarded fishing nets,are the proud results of our continued pursuit of sustainability.The COVID-19 pandemic and intensifying international conflicts once again remind us that cooperation with diverse stakeholders is imperative in ensuring success as a global company.We will continue

17、to mutually grow and advance with communities we serve by capitalizing on our rich legacy,expertise,and wealth of resources.We will expand our corporate citizenship activities centered on nurturing the technological prowess of the younger generations,while reinforcing and launching forward-looking i

18、nitiatives to narrow the technological gap amid the transition to a digital society,including support for SMEs through the smart factory system.We will provide tailored training and consulting for our partner companies and related smart factory support to assist them with the green transition.To ach

19、ieve meaningful progress and have material impact,we believe it is critical to communicate and work together with all stakeholders.In this context,we joined the United Nations Global Compact,an initiative to encourage businesses to adopt sustainable policies,earlier this year.We will continue to see

20、k opportunities to reach out to and cooperate with our diverse stakeholders to catalyze more meaningful changes to the environment and communities by engaging in partnerships with other industrial sectors,civil society groups,and international organizations.The world is currently facing many tough c

21、hallenges political,economic and social.There are even skepticisms about whether a sustainable future for our planet is possible.However,we firmly believe that our competitiveness and sustainable growth goes hand in hand with harnessing our technological solutions to preserve the environment and con

22、tribute to building a better world.We look forward to your continued interest and support in our journey to achieving a sustainable future.Thank you.Message from Our CEOCEO and Vice Chairman Samsung ElectronicsHan Jong-heeSamsung Electronics Sustainability Report 20222Our CompanyDigital Responsibili

23、tyEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix2DSDevice SolutionsDevice eXperienceDXAbout Our Organization Samsung Electronics is divided into two main divisionsDX(Device eXperience)and DS(Device Solut

24、ions)and we ensure that each division is operated independently.DX took a new leap forward with the integration of the CE Division(responsible for TVs,monitors,air conditioners,refrigerators,etc)and the IM Division(responsible for mobile devices,network systems,computers,etc)in 2021.This integration

25、 is aimed at reflecting more differentiated products and services to optimize consumer experiences.The DS division consists of Memory,System LSI,Foundry businesses,etc.Company OverviewWe aim to make a positive contribution to peoples everyday lives by offering products and services of great quality

26、built with our innovative technology by our talented workforce.The Global Code of Conduct articulates our commitment to helping the world move forward based on our five Key Values.We will uphold the Key Values and achieve the goals of the Global Code of Conduct by challenging the status quo.*Sales a

27、nd Operating Profit above are based on 2021 figures,excluding SDC and Harman.SalesKRW 166,259.4 billionOperating ProfitKRW 17,386.6 billionNetworksMobile eXperience(MX)Visual Display(VD)Digital Appliances(DA)Medical DevicesSystem LSIMemoryFoundrySalesKRW 95,387.2 billionOperating ProfitKRW 29,192.0

28、billion Major Business UnitsSamsung Electronics Sustainability Report 20223Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix3Global NetworkAs of the end of 2021,our global b

29、usiness network consists of more than 230 production sites,sales offices,R&D centers,and design centers.We have 15 regional offices around the world,including our global headquarters in Korea,as well as in North America,Southeast Asia,Europe,Africa,and other regions.North AmericaRegional officesSale

30、s officesProduction sitesR&D centersDesign centersOthers2237113Regional officesSales officesProduction sitesR&D centersDesign centersOthersCentral and South America 1731112EuropeRegional officesSales officesProduction sitesR&D centersDesign centersOthers21633115CISRegional officesSales officesProduc

31、tion sitesR&D centersOthers141241216Regional officesSales officesProduction sitesOthersAfricaRegional officesSales officesProduction sitesR&D centersOthersMiddle East182410Regional officesSales officesProduction sitesR&D centersDesign centersOthers245715ChinaRegional officesSales officesProduction s

32、itesR&D centersOthersSoutheast Asia286310Regional officesSales officesProduction sitesR&D centersDesign centers11651 KoreaRegional officesSales officesR&D centersDesign centersOthersJapan11211Regional officesSales officesProduction sitesR&D centersDesign centersOthersSouthwest Asia112517R&D Expendit

33、ureKRW22.4trillionCountries74Suppliers2,129Employees266,673Regional Offices15Sales Offices54Production Sites32R&D Centers39Design Centers7Others2)83Regions1)Total1)Regional classification is based on Samsung Electronics internal management criteria2)Sales Branches,Service Centers,Distribution Bases,

34、etc.Samsung Electronics Sustainability Report 20224Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix4Corporate GovernanceOur Board of Directors welcomed new members appointe

35、d at the general shareholders meeting in March 2022.The heads of all major business divisions,including DX and DS,are now executive directors on the Board,with the goal of achieving responsible management.Additionally,outside experts in a range of fields are serving as independent directors to help

36、maintain accountability.A former global investment expert was appointed as an independent director to help us better identify the needs and views of global investors,and to enhance diver-sity and inclusion,we appointed additional non-Korean director.In July 2021,the Governance Committee was replaced

37、 by the Sustainability Committee to better promote sustainability man-agement while enhancing shareholder value.shareholders meeting held in March 2022,three independent direc-tors and four executive directors were newly appointed,thus bringing the total number of directors to 11(six independent dir

38、ectors and five executive directors).With Independent Directors Han Wha-jin and Park Byung-gook resigning from the Board on April 20,2022 and May 17,2022,respectively,the two posts will be filled at the next general shareholders meeting pursuant to Article 542-8(3)of the Commer-cial Act.As of the en

39、d of May 2022,the Board consists of nine mem-bers,including four independent directors.Independence and Transparency of the BoardTo ensure independence and transparency in the operation of the Board,we prohibited holding the concurrent positions of the Chair-man of the Board and the CEO in 2018.We a

40、lso appointed one of the independent directors as the Chairman,a first in the Companys his-tory,and we did so again in March 2020.The Chairman remains open to the opinions and suggestions of the executive and independent directors and serves as a mediator to ensure that the Board oversees our corpor

41、ate management in a more objective manner.The inde-pendent directors hold separate meetings to seek ways to deliver leadership results across all aspects of our business operations,including the creation of shareholder value.Board CompositionThe Board consists of no less than three and no more than

42、14 mem-bers pursuant to Article 24 of the Articles of Incorporation.Although Article 383 of the Commercial Act simply mandates that a board of directors shall have no less than three members,we internally set the maximum number at 14 considering our corporate scale and the oper-ational and decision-

43、making efficiency of the Board.At the general Director Appointment and Term of OfficeDirectors are appointed by the resolution of shareholders at the gen-eral shareholders meeting in accordance with Article 382 of the Com-mercial Act.Executive directors are selected among the candidates recommended

44、by the Board,while independent directors are selected among the candidates recommended by the Independent Director Recommendation Committee pursuant to Article 542-8 of the Com-mercial Act.The same Article stipulates that the majority of an inde-pendent director recommendation committee must be comp

45、osed of independent directors.Our Independent Director Recommendation Committee consists only of independent directors and strictly abides by the preset candidate recommendation procedures.Each directors term of office is three years.A director may be reappointed through the general shareholders mee

46、ting after the end of his/her term.How-ever,an independent directors total term is restricted to six years pursuant to the Commercial Act.Expertise and Diversity of the BoardThe fast-changing business environment requires that the Board be equipped with expertise and diversity to help our company ta

47、ke for-ward-looking,strategic steps.We take extra care to ensure diversity on the Board in terms of nationality,gender,religion etc,.Independent directors,in particular,are selected among experts in finance,law,IT,public sector,ESG,and other fields.They bring diverse perspectives to find optimal sol

48、utions and offer objective and professional oversight and advice to the executive management.Board CompositionBoard ValuesKim Han-jo*Han Jong-heeKyung Kye-hyun*Roh Tae-moon*Park Hark-kyu*Lee Jung-bae*Kim Sun-uk Kim Jeong-hunKim Jun-sung*NameFinance and CSR DX DS MX Corporate Management Memory Busine

49、ss Law and Human Rights IT and Business OperationFinance and Investment Area of SpecialtyChairman,Hana Nanum Foundation/Former Vice Chairman,Hana Financial Group CEO and Vice Chairman,Samsung Electronics/Head,DX Division and Visual Display Business,Samsung ElectronicsCEO and President,Samsung Electr

50、onics/Head,DS Division,Samsung ElectronicsPresident and Head,MX Business,Samsung Electronics/Former Head,Development Office,Mobile Division,Samsung ElectronicsPresident and Head,Corporate Management Office,DX Division,Samsung Electronics/Former Head,Corporate Management Office,DS Division,Samsung El

51、ectronicsPresident and Head,Memory Business,Samsung Electronics/Former Head,DRAM Development Office,Memory Business,Samsung ElectronicsProfessor Emeritus,School of Law,Ewha Womens University/Former Minister,Ministry of Government Legislation/Former member,Policy Advisory Committee,National Human Rig

52、hts Commission of KoreaExecutive Chairman,Kiswe Mobile/Former President,Alcatel-Lucent Bell LabsCIO,Endowment Fund,National University of Singapore/Former Managing Director,Government of Singapore Investment Corporation(GIC)Career HighlightsChairman and Independent directorExecutive directors Indepe

53、ndent directors PositionIndependent directors are selected among those equipped with rich knowledge and experience in business management,economy,accounting,law,technology,and sustainability management.To ensure diversity in the Board,we do not limit independent direc-tor candidates by nationality,g

54、ender,place of birth,religion,area of expertise,etc.Those responsible for our everyday business affairs,our largest share-holders and other important stakeholders,and those who have experi-ence working for our company within the last two years are not eligible to be appointed as an independent direc

55、tor.Executive directors shall be appointed from among the candidates recommended by the Board,and candidates for independent directors shall be recommended by the Independent Director Candidate Recom-mendation Committee composed of all independent directors.*Directors newly appointed or reappointed

56、at the general shareholders meeting in March 2022*Independent Directors Han Wha-jin and Park Byung-gook resigned from the Board on April 20,2022 and May 17,2022,respectively.Their posts will be filled by the resolution of the next general shareholders meeting.Indepen-denceTrans-parencyExpertiseDiver

57、sitySamsung Electronics Sustainability Report 20225Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix5OperationWe hold seven ordinary Board of Directors meetings each year fo

58、r the quarterly approval of financial statements and the regular convocation of the general shareholders meeting.Beyond regular meetings,the Board of Directors hold special meetings whenever the need arises.Board ConvocationTo convene a Board meeting,the Chairman notifies each director of the date,t

59、ime,venue,and agenda at least 24 hours prior to the meet-ing,pursuant to Article 30 of the Articles of Incorporation and Arti-cle 8 of the Board of Directors Regulations.Individual directors are entitled to request the Chairman to convene a Board meeting,with the agenda and reasons clearly defined,i

60、f deemed necessary.If the Chairman fails to uphold this responsibility without justifiable reason,the respective director may convene a Board meeting.Board ResolutionPursuant to Article 31 of the Articles of Incorporation and Article 9 of the Board of Directors Regulations,an agenda item is deemed t

61、o have been resolved with the attendance of a majority of the directors and a majority vote of the attendees unless otherwise prescribed in relevant laws.As specified in Article 391 of the Commercial Act,all directors may participate in a Board meeting digitally using remote telecommunications devic

62、es capable of simultaneous voice trans-mission and reception.We systematically avoid potential conflicts of interest by restricting the voting rights of those directors with special interests in certain agenda items pursuant to Article 9 of the Board of Directors Regulations.Committees under the Boa

63、rdThe Board delegates its authorities to six affiliated committees pur-suant to Article 28-2 of the Articles of Incorporation and Article 11-2 of the Board of Directors Regulations to ensure greater efficiency.The Management Committee comprises five executive directors entrusted with relevant author

64、ities to resolve general management matters in a timely manner.The other five committees consist of only independent directors to reinforce independence.The composition,operation,and authorities of each committee are specified in the individual com-mittee regulations enacted by the resolution of the

65、 Board.Matters resolved by the committees are notified to all directors within two days.Directors may request the Chairman of the Board to convene a Evaluation of Independent DirectorsIndependent directors are evaluated on all of their Board activities based on our internal criteria.Qualitative and

66、quantitative evalua-tions are conducted by considering their meeting attendance rates,performance as individual committee members,level of expertise,understanding of material issues,and endeavors to ensure inde-pendence.Evaluation results are used as reference to innovate Board operations and enhanc

67、e the efficiency and composition of the Board and its affiliated committees.Board meeting if deemed necessary,and the Board may reconsider and revote on the decisions made by each committee.However,the Audit Committees decisions are not subject to revote to ensure its independence.“With sustainabili

68、ty continually growing in impor-tance as a key driver of corporate growth,the roles and responsibilities of the Board of Directors continue to expand in both breadth and depth.As an extension of our efforts to effectively address ESG issues and improve our ESG performance,we reconfigured the Governa

69、nce Committee into the Sustainability Com-mittee in July 2021.The Board will strive to ensure the integrity and transparency of the Board and help our company march forward as a responsible corporate citizen.”-Kim Han-jo,Chairman of the Board of Directors -Corporate Governance Report Committees unde

70、r the BoardSustainability Committee Responsible for taking action to promote sustainability management and enhance shareholder value All four members are independent directors.Compensation Committee Aimed at ensuring objectivity and transparency in the decision-making process for compensation for di

71、rectors.Both members are independent directors.Related Party Transactions Committee Aimed at enhancing business transparency by promoting voluntary adherence to fair transaction regulations All three members are independent directors.Independent Director Recommendation Committee Screening and recomm

72、ending candidates based on the requirements of their independence,diversity and individual competence One member(Independent Director)Audit Committee Responsible for auditing all business affairs including the financial status All three members are independent directors.Management Committee Responsi

73、ble for deliberating and making decisions on general management matters,finance-related issues,and matters delegated by the Board All five members are executive directors.*The Sustainability Committee was established in July 2021 by reorganizing the Gov-ernance Committee under the aim of promoting s

74、ustainability management and enhancing shareholder value in ESG-related matters.*Director Han Wha-jin was a member of the Independent Director Recommendation Com-mittee and The Sustainability Committee,but resigned from the BoD on April 20,2022.*Inde pendent director Park Byung-gook was a member of

75、the Compensation Com-mittee,the Sustainability Committee,and the Independent Director Recommenda-tion Committee,but resigned from the Board on May 17,2022.Samsung Electronics Sustainability Report 20226Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to Sust

76、ainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix6In order to uphold a fair corporate culture,we post Employees Busi-ness Conduct Guidelines on our intranet system to encourage our employees to practice ethical management in their daily activities.For our partner compani

77、es,we post Samsung Electronics Business Guide-lines,which detail prohibited business practices,on the websites they use.Compliance and Ethics ProgramWe are operating an effective Compliance and Ethics Program aimed at promoting compliance and ethical management through the three stages of prevention

78、,monitoring,and response.PreventionWe provide employees with detailed compliance policies and guide-lines via CPMS for reference when performing their tasks.To mini-mize legal risks,we also identify the latest regulatory trends and pro-vide training programs for employees.If employees have questions

79、 or require assistance determining the legality of specific matters based on the guidelines,they can seek one-on-one consultation with experts at the help desk on CPMS.Monitoring Compliance and ethics audits are conducted annually by the organi-zational units and staff members in charge.The results

80、are reported to the Board of Directors at least once a year.Whistleblowing chan-nels have been established to facilitate the reporting of legal viola-tions committed by our company or individual employees.We ensure whistleblower confidentiality and protect whistleblowers from dis-criminatory and ret

81、aliatory actions.ResponseWe devise ways to prevent recurrences of compliance violations by improving the process based on audit results as well as responses to submitted reports.If any violations are detected,disciplinary and remedial actions are taken pursuant to our internal standards based on the

82、 gravity of the specific incident.We also operate compliance and ethics programs along with annual legal risk assessment.We evaluate the effectiveness of our compliance control system,includ-ing compliance and ethics programs,and report the results to the Board of Directors once a year.Compliance an

83、d EthicsPrinciples of Compliance and EthicsAt Samsung Electronics,compliance with laws and ethical standards is the top priority among our Business Principles.We disclose our Business Principles to external stakeholders,including partners,cus-tomers,and investors,via our website.S Business Principle

84、s To achieve sustainable growth as a leading global company,we con-tinually work to ensure compliance and ethics across all aspects of business.Through our commitment to compliance and ethics,we strive to conduct our business in compliance with laws and ethical standards,and build a sound corporate

85、culture that is free from ille-gal and unfair practices.Management of Compliance and EthicsWe operate the Compliance Team,which directly reports to the CEO,and the Chief Compliance Officer attends all Board meetings and the Management Committees meetings to ensure lawful decision-making.The Complian

86、ce Team implemented the Compliance Program Manage-ment System(CPMS),an IT system that enables efficient management of Compliance and Ethics,while also managing potential risks in the focused areas of management(anti-corruption,fair trade,intellectual property rights,privacy protection,labor and huma

87、n rights,environ-ment and safety,etc.)Focused Areas of ManagementCompliance and Ethics ProgramCompliance and Ethics TrainingWe operate a wide range of compliance and ethics training programs to minimize risk and prevent any illegalities that may occur during everyday business activities.Training for

88、 Top ManagementBased on our strong belief that the leadership of top management plays an instrumental role in reinforcing compliance and ethical man-agement,we provide compliance training targeted to our executive management.In June 2021,the Chief Compliance Officer conducted training for the CEOs a

89、nd top executives on precautions to take while performing their duties.Employee Training on Ethical Standards and Compliance1)We conduct training on ethical standards in various formats for all of our employees at least once a year.Additionally,we conduct annual mandatory compliance training(includi

90、ng anti-corruption training)to highlight our focus on compliance and ethical management.In 2021,we offered job-specific training courses to allow employees to receive training aligned with their specific jobs and tasks.1)Refer to the Ethics training and Compliance training in Facts and Figures secti

91、on.PreventionResponseMonitoringIntellectual Property RightsAnti-corruptionFair TradePrivacy ProtectionSubcontractingEnvironment and SafetyConsumer ProtectionTradeLabor and Human Rights Providing policies and guidelines Identifying regulatory trends Conducting employee training Responding to inquirie

92、s Analyzing and assessing results Establishing recurrence prevention measures Taking appropriate actions for viola-tions Conducting audits Operating whistleblowing channels and Investigating Responding to issuesSamsung Electronics Sustainability Report 20227Our CompanyDigital ResponsibilityEnvironme

93、ntSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix7Audits and WhistleblowingWe are equipped with organizational units and members dedicated to performing compliance and ethics audits,operating whistleblowing channels

94、,and handling whistleblowing investigations.Compliance and Ethics AuditsWe perform both regular and special audits of ethical standards and compliance on our business sites in Korea and abroad and report the results to the Board of Directors at least once a year.We identify points of improvement bas

95、ed on the results and reflect them in our business activities to ensure company-wide compliance with all rele-vant laws and regulations.In 2021,we monitored our domestic business sites for compliance with the mandates in the Occupational Safety and Health Act and conducted online checks of the opera

96、tion status of the compliance program at our overseas business sites.We also investigated whether our business sites were in compliance with our external sponsorship and internal transactions review processes built to ensure the pre-vention of risks in relation to corruption and unfair internal tran

97、s-action.The results showed that our performance was satisfactory overall,and we implemented remedies in areas deemed capable of further improvement pursuant to our internal standards.Compliance and Ethics WhistleblowingIn addition to the existing in-house whistleblowing channel targeting our employ

98、ees,we opened a new whistleblowing channel for exter-nal stakeholders on our website(S Ethics&Compliance Management https:/sec-)in 2020.Contact informa-tion including the email address,telephone number,and fax number is posted online to help whistleblowers submit reports easily.We protect the confid

99、entiality of whistleblowers identities and reports based on our internal regulations,and all of our whistleblow-ing channels guarantee anonymity.All reports submitted are handled in accordance with our internal standards for the entire whistleblow-ing process,from reporting to investigation and reme

100、dial action.The opening of new whistleblowing channels has led to a steady increase in the number of reports from 2020 onwards.1)We conduct investi-gations on reports to verify their facts and take corrective measures.In 2021,we took disciplinary action against those who violated our internal proces

101、ses and also against their managers.In accordance with internal guidelines,we discipline those verified to have commit-ted infractions based on the severity of each incident and report the results to the Audit Committee twice a year.1)Refer to the status of Compliance whistleblowing and Ethics whist

102、leblowing in facts and figures section.Major Improvements for Compliance and Ethical ManagementAnti-Corruption Policy and GuidelinesWe provide employees with our revised Global Anti-Corruption and Brib-ery Policy in 2020 to highlight our unwavering commitment to compli-Major Audit Activities in 2021

103、Q1 Q2 Q3Q4 Whistleblowing ChannelsTelephone 1811-6341 1577-7988Fax 031-277-1166 031-200-9966In-house whistleblowing channel CPMSWhistleblowing Ethical Management WhistleblowingWhistleblowing channel for external stakeholders S Ethics&Compliance Managementhttps:/sec-https:/sec-*Some channels are for

104、domestic use only.Email QuarterActivityArea Preface Basic Principles Gifts,Hospitality,and Other Benefits Donations,Contributions,and Sponsorships Third-Party Agents Books and Records Policy ImplementationDetails of the Global Anti-Corruption and Bribery Policy The purpose of this Policy is to offer

105、 our employees a clearly defined set of criteria for discerning and preventing corrupt practices.We abide by all anti-corruption laws and policies including the Foreign Corrupt Practices Act of the US,the Improper Solicitation and Graft Act of Korea.Engagement in providing money and valuables in exc

106、hange for unfair gains and soliciting public officials for illegal acts or abuse of power is prohibited.Gifts and hospitality provided must conform to all applicable laws and the policies of a recipients organization,serve a legitimate business purpose,and be deemed reasonable in terms of price and

107、frequency.The provision of benefits with any intent for unfair gains or the exercise of leverage is prohibited.Receiving gifts and hospitality,provided by partner companies with the expectation of reciprocity is prohibited.Illegal political donations from our assets are prohibited.Charity donations,

108、contributions,and sponsorships must be made in compliance with our internal process without any intent for unfair gains and/or the exercise of leverage.The use of a third-party agent to evade anti-corruption laws is prohibited.Proper measures shall be taken when a third-party agent violates this Pol

109、icy and/or relevant laws.All expenses must be recorded in accounting books and related documents and be preserved.Disclosing false information is strictly prohibited.Anti-corruption compliance programs must be operated and continually improved to ensure effective implementation of this Policy.The he

110、ad of the Corporate Compliance Team is vested with independent authority and responsibility for prevention of corruption and bribery.Compliance with the Occupational Safety and Health ActPrevention of Competitors Trade Secret Piracy RiskOnline Compliance Check of Overseas SubsidiariesExternal Sponso

111、rship Review processInternal Transaction Review processMisuse of Technologies for Patent ApplicationEnvironment and Safety Intellectual Property Rights Compliance Programs Anti-corruptionFair TradeIntellectual Property Rights ance with domestic and international anti-corruption laws and ethical busi

112、ness practices.The Policy and detailed guidelines are posted on CPMS.Samsung Electronics Sustainability Report 20228Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix8Process

113、 for Anti-CorruptionWe have strengthened the review process for external sponsorship expenditures in order to prevent potential corruption.The External Sponsorship Council,formed in 2017,conducts prior review of exter-nal sponsorships of KRW 10 million or above,and review results is reported to the

114、Audit Committee.Approval of the Board of Directors is required for external sponsorship of KRW 1 billion or above.In 2020,the Councils operations were strengthened by appointing the Chief Compliance Officer as its chairperson and expanding the review targets to encompass overseas subsidiaries.The an

115、ti-cor-ruption review process was also established to conduct a necessary review and attain the Compliance Teams approval prior to vendor registration and contract conclusion.External Sponsorship CouncilExecutive EvaluationAnti-corruption Review for Vendor RegistrationOrganizational Performance Eval

116、uationAnti-corruption Review for Contract ConclusionEmployee AwardsImprovements for Compliance-Oriented CultureTo foster a culture of compliance,we increased the weight of compli-ance-related factors in the executive evaluation in 2020 and added compliance-related factors to the organizational perfo

117、rmance eval-uation in 2021 as well.In 2020,we also implemented the SEC Annual Awards,presented by the CEO,which acknowledge the achievements of employee or organization in compliance management.Samsung Compliance CommitteePurpose and CompositionThe Samsung Compliance Committee(the Committee)was laun

118、ched on February 5,2020 under the aim of practicing integ-rity-based management,which is one of our key values,by rein-forcing compliance monitoring and control over the seven major member companies1)of Samsung Group.The Committee is an external organization with its independence and autonomy guaran

119、teed.It comprises six external members,including the chairperson and one internal member.Lee Chan-hee,a former president of the Korean Bar Association,is currently serving as the second chairperson following the first chairper-son,Kim Ji-hyung,a former justice of the Supreme Court of Korea.The Commi

120、ttees external members are selected from experts equipped with knowledge and experience in diverse fields related to compliance monitoring(law,accounting,economy,public administration,etc.).1)Samsung Electronics,Samsung C&T,Samsung SDI,Samsung Electro-Mechanics,Samsung SDS,Samsung Life Insurance,and

121、 Samsung Fire&Marine InsuranceKey Activities of the CommitteeThe Committee communicates with the Chief Compliance Officers of member companies through monthly meetings as well as spe-cial meetings.The Committee reviews reports from member com-panies regarding their external sponsorship and internal

122、trans-actions,and it issues recommendations as an independent body.It also operates separate whistleblowing channels of its own to collect reports about compliance violations of the member com-panies via post,email,and external organizations.The details of its meetings with the member companies and

123、the statements it releases are disclosed on its website.The Committee held a conference with executive management,including the CEOs of the member companies,in January 2021 and met with the labor-management relations advisory group in April and November 2021.The Committee members actively promoted c

124、ompliance by providing training for the member companies exec-utives in July and August 2021.It also held a seminar with outside experts in January 2022 to discuss the current status and points of improvement of compliance issues.Implementation of the Committees RecommendationsThe Committee delivers

125、 recommendations for a range of issues to improve the compliance management practices of member com-panies.We have faithfully crafted and implemented measures to ensure such recommendations are followed.For the recommendation to establish measures to prevent recur-ring labor compliance risks,we form

126、ed a labor-management rela-tions advisory group of outside experts under the Board of Direc-tors and realigned all of our labor-related regulations to ensure the protection of the three primary labor rights.Regarding suggestion to enhance communication with civil society organizations,we have engage

127、d in a range of activities to earn greater trust,such as stag-ing a conference between senior members of civil society organiza-tions and our executive management.For the recommendations to include and expand compliance-re-lated items in the evaluations of executives,we updated our inter-nal regulat

128、ions and increased the weight of compliance-related factors.We also established a quarterly council of the Chief Compli-ance Officers to enable them to discuss ways to reinforce the com-pliance monitoring activities of relevant organizational units at the member companies.We will work in collaborati

129、on with the committee to establish an advanced monitoring program and compliance system and care-fully manage the legal risks of the company and the manage-ment,implementing Integrity Management and building trust and respect from the public.Samsung Electronics Sustainability Report 20229Our Company

130、Digital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix9APPROACH TO SUSTAINABILITYBusiness Sustainability 11Sustainability Highlights of Major Products 13Sustainability Achievements 16Recogn

131、ition&Awards 17Sustainability Governance 18Stakeholder Engagement 19Joining UN Global Compact 20Business Model of Sustainability Management 21Samsung Electronics Sustainability Report 202210Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOu

132、r EmployeesEmpowering CommunitiesSustainability FoundationAppendix10Business SustainabilityDXDevice eXperience DivisionSustainability is a core value and key driver of our operations,and we strive to embed it in every product and service that we offer.We will remain committed to activities that mini

133、mize our environmental impact,including the use of recycled materials in all stages of mobile device and home appliance manufacturing processes by 2025.The Samsung Global Goals app introduces our global efforts to meet the 17 Sustainable Development Goals of the United Nations and allows users to do

134、nate directly to the goals of their choice Donations raised in 20211)amount to USD 2.69 million1)November 2020 October 2021Samsung Global Goals Galaxy S22 and Tab S8,as well as high-resolution monitors released in 2022,are equipped with parts made with recycled ocean-bound plastic1)1)PET bottles and

135、 discarded fishing nets,etc All the Visual Display models2)will use recycled plastic materials in 20222)TVs,monitors,and remote controls.(including outsourced products)Use of Recycled Materials EPS cushions inserted in the box for Visual Display products and plastic used for sub packaging1)are made

136、with recycled materials1)Sub packaging:Accessory bag,PP band,box holder,and stand bag Eco-Packaging,designed to be upcycled as small and versatile household items,has been implemented in all TV products and is scheduled to be expanded to the vacuum cleaners,air purifiers,Bespoke Qooker and moreEco-P

137、ackaging SmartThings Energy enables users to monitor total power consumption of their household as well as the power consumption for connected smart home appliances1).It also offers the SmartThings Energy Service2)designed to help reduce energy consumption by using an AI-based smart power saving mod

138、e1)Service available in Korea,the US,the UK,India,and Brazil 2)Service available in Korea only*Total power consumption monitoring service is available only for those households connected to a smart meter.SmartThings Energy Through a collaboration with renowned active wear brand Patagonia,Samsung is

139、developing a specialized washer that reduces the release of microplastics,particles that are highly damaging to the worlds oceans and our healthReducing the Release of Microplastics We developed SolarCell Remote Control that can be charged via sunlight or illumination without the need for disposable

140、 batteries.Recycled materials are used in the exterior of the remote control(for QLED TV from 2021,expanded to air conditioners in 2022)We plan to replace the lithium-ion battery with a supercapacitor,which emits less GHGs,and use this remote control for all smart TV products in 2022 SolarCell Remot

141、e Control Galaxy Upcycling at home program:A recycled smartphone can be repurposed into a sound sensor,illumination sensor,and notification sender for your cur-rent smartphone via the SmartThings app Digital vision tester(EYELIKE):This device is designed to diagnose various eye disorders that may le

142、ad to loss of vision using a used Galaxy smartphone.Devices are provided to developing countries such as Vietnam,India,Morocco,and Papua New GuineaGalaxy Upcycling To reduce home appliance waste,we began to provide lifetime warranties for the key parts(digital inverter motor/compressor)of new produc

143、ts released in Korea from 2021 Plan to provide 20-year warranty of digital inverter motor and digital inverter compressor for washers sold in the US(for washers made in the US)and refrigerators and washers sold in Europe(From the 2nd Half of 2022)Lifetime Warranty for Key PartsImage of Lifetime Warr

144、anty for Key PartsSamsung Electronics Sustainability Report 202211Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix11Business SustainabilityDSDevice Solutions DivisionWe str

145、ive to enhance the energy efficiency of major semiconductor products,including memory devices,image sensors,and driver ICs,to reduce the power consumption of data centers and IT devices such as smartphones and laptops.Reducing GHG emissions by 6.03 million tonnes in the manufacturing process -Reduci

146、ng GHG emissions by 3.03 million tonnes through improving flue gas treatment,change to alternative gases and reducing fuel consumption -Reducing GHG emissions by 480,000 tonnes by using high-efficiency equipment and parts,and by managing equipment power systems -Reducing GHG emissions by 2.52 millio

147、n tonnes by using renewable energy Eco-conscious performance in the semiconductor manufacturing process -Managing water resources to save 6,857 tonnes of water per day and reducing sulfate ion concentration -Reducing and recycling waste Eco-Conscious Manufacturing Process Reduce the power consumptio

148、n of LED products-Improve luminance efficiency of the lighting LED package(LM301B)device by 2%each year -Improve luminance efficiency of the vehicle head lamp LED solution(C-series)device by 3%each year Energy Consumption Reduction 24 products of strategic importance have attained the Carbon Trusts

149、product carbon footprint in 2021 Certification and AwardProduct carbon footprint labeling20191 UFS20208 DRAM/SSD/memory cards20214 system semiconductors and 20 DRAM/SSD/memory cardsWe have attained low-carbon product certification from the Korea Environmental Industry and Technology Institute(KEITI)

150、and the Reducing CO2 Label by the Carbon Trust.-Low-carbon product certification by KEITI:Portable SSD T7(1TB)-Reducing CO2 Label by the Carbon Trust:HBM2E(8GB),GDDR6(8Gb),UFS 3.1(512GB),Portable SSD T7(1TB),and Micro-SD EVO Select(128GB)*Lower Carbon Label:Certification for a product that has alrea

151、dy attained the Carbon Footprint Label or for its follow-up product found to have reduced GHG emissions across all life cycle stages Attained global certifications for the information security management of our foundry business -Security certification ISO 27001(Information security management)-Commo

152、n Criteria of the German Federal Office for Information Security(Bundesamt fr Sicherheit in der Informationstechnik)Gained global recognition for LED products -User-centric lighting1):Winner at the CES 2021 Innovation Awards in the Health and Wellness category -Plant cultivator lighting2):Included i

153、n the 2021 IES3)Progress Report1)Lighting technology that positively impacts biological rhythms by influencing melatonin levels2)Technology emitting light in wavelengths that promote plant growth3)Illuminating Engineering Society,a not-for-profit organization that develops standards related to light

154、ing Implementing semiconductor products with lower energy consumption through the commercialization of an ultra-fine foundry process-Reduce power consumption by nearly 50%compared to the 5nm process by applying gate-all-around technology1)to the 3nm process Enhance the System on Chip(SoC)design and

155、applying fan-out wafer-level packaging2)Reduce Large-cale Integration(LSI)power consumption by securing IPs that reinforce its power competitiveness 1)Gate-all-around refers to a modified transistor structure where the gate contacts the channel from all sides and enables continued scaling.2)Fan-out

156、wafer-level packaging is an integrated circuit packaging technology that carries out redistribution first and then dices the wafer.In this process,the surface area of redistribution is larger than the chip.3 memory products won the CES 2022 Innovation Awards -PCIe 5.0 SSD PM1743,512GB DDR5 RDIMM,and

157、 ZNS NVMe SSDSamsung Electronics Sustainability Report 202212Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix12Sustainability Highlights of Major Products Intelligent energ

158、y-saving function(automatic screen-off and power-off using the light sensor and motion sensor)SolarCell Remote made with recycled plastics Applied Eco-Packaging and recycled EPS1)Carbon Trusts Reducing CO2 certification 1)Expandable polystyrene(Styrofoam)TV(Neo QLED 8K TV/QN900B)Best-in-industry lam

159、p efficiency with vehicle energy consumption reduced by over 10%Reduced vehicle energy consumption,improved fuel efficiency,and reduced carbon emissions First to be third party-certified by UL1)for Carbon Footprint in the LED parts industry1)Underwriters Laboratories Vehicle Headlamp Solution(C-Seri

160、es Gen3)Recycled fishing nets used for the key brackets and interior of S22 Ultra S Pen PCM1)plastic applied to the speaker modules and interior of the volume key Eco-Packaging(made 100%with recycled paper and minimize the use of plastic)Carbon Trusts product carbon footprint label1)Post-consumer ma

161、terials created from recycled plasticsSmartphone(Galaxy S22 Series)Energy-saving function applied(Eco-saving plus)Grade-A energy efficiency rating(ErP1)Recycled ocean-bound plastics used in the back cover of the product ENERGY STAR,EPEAT2)(bronze),and TCO Certified3)certification Applied Eco-Packagi

162、ng Carbon Trusts Reducing CO2 certification1)Energy-Related Products Directive of the EU 2)Electronic Product Environmental Assessment Tool of the US3)Sustainability certification created by Swedish Confederation of Professional EmployeesMonitor(ViewFinity S8/S80PB)2.7 times higher output and 55%les

163、s energy consumption for maximum output compared to the first generation Product size reduced by 14%and product weight by 24%compared to the first generation,thereby saving more resourcesSecond Generation Massive MIMO Radio Fastest speed(8.5Gbps)among all our existing mobile DRAM solutions(1.3 times

164、 faster than LPDDR5 running at 6.4Gbps)Energy efficiency improved by 20%compared to the previous generationMobile DRAM Solution(LPDDR5X)Samsung Electronics Sustainability Report 202213Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur Empl

165、oyeesEmpowering CommunitiesSustainability FoundationAppendix13 Dynamic Peaking technology applied to realize the highest display brightness with lower energy consumption (maximum brightness:1,600nit)Applied Eco-Packaging Carbon Trusts Reducing CO2 certificationLED Signage(The Wall/LH012IWA)Recycled

166、fishing nets used in the interior of the brackets and touchpad holder of Galaxy Book2 Pro 360 New algorithm applied to extend the life cycle of the battery,reduce standby power,thereby decreasing the need for battery replacement Eco-conscious AMOLED display(ULs GREENGUARD Gold Certification)Note PC(

167、Galaxy Book 2 Pro)Worlds first solution with a plant-exclusive spectrum(437nm),boasting 6%higher PPFD1)50%more nutrients and 20%less microorganisms in plants compared to the previous generation Showcased in the 2021 IES Progress Report1)Photosynthetic photon flux densityLight Solution for the Smart

168、Plant Grower(LM301H EVO)Productivity improved by 20%compared to the previous generation based on its best-in-industry wafer level integration Power consumption reduced by nearly 20%and speed increased two-fold(7.2Gbps)compared to the previous generationDRAM(14nm EUV DDR5)First-grade energy efficienc

169、y rating1)High-efficiency heat pump Energy consumption monitoring and AI-based energy-saving mode(SmartThings Energy)AI-based tailored drying function applied to enable the optimization of the temperature and cycle time using 11 sensors1)A classification of the energy use or energy consumption effic

170、iency of home appliances in KoreaBESPOKE Grande AI Dryer(DV20B9760NE)First-grade energy efficiency rating Water filtration system certified by National Sanitation Foundation(NSF)1)for its microplastics removal capacity Energy consumption monitoring and AI-based energy-saving mode(SmartThings Energy)

171、1)Certification obtained pursuant to NSF/ANSI 42,53,and 401 Filtration Systems Standards and NSF/ANSI/CAN 372 Technical RequirementsBESPOKE Refrigerator Infinite Line(RR40B9981APG)Sustainability Highlights of Major ProductsSamsung Electronics Sustainability Report 202214Our CompanyDigital Responsibi

172、lityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix14Sustainability Highlights of Major Products Recycled materials used in the back cover of the product ENERGY STAR and EPEAT(bronze)certification Applied

173、 Eco-Packaging Carbon Trusts Reducing CO2 certificationSignage(Crystal UHD Signage/QH55B)First-grade energy efficiency rating Eco-conscious refrigerant(R32)Energy consumption monitoring and AI-based energy-saving mode(SmartThings Energy)SolarCell RemoteWind-Free Air Conditioner(AF20BX934WAN)Lower en

174、ergy consumption realized through the integration of the DTV SoC and image processor Carbon Trusts product carbon footprint label 1)Digital TV8K DTV1)SoC First-grade energy efficiency rating Eco BubbleTM Technology(high energy efficiency,reduced cycle times,and minimized damage to cloth)AI-based tai

175、lored wash technology that automatically dispenses detergent in preset amounts in accordance with cloth type,weight,and soil and stain level Energy consumption monitoring and AI-based energy-saving mode(SmartThings Energy)“No-detergent wash drum cleaning+”cycle added to enable the cleaning of the wa

176、sh drum and door frame without detergentBESPOKE Grande AI Washer(WF24B9600NE)Premium 5G modem SoC2)5nm EUV(energy consumption reduced up to 20%of 7nm EUV)Reinforced CPU3),GPU4),and NPU5)Carbon Trusts product carbon footprint label1)Application Processor 2)System on Chip3)Central Processing Unit4)Gra

177、phic Processing Unit5)Neural Processing UnitMobile AP1)(Exynos 2100)Samsung Electronics Sustainability Report 202215Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix15Enviro

178、nmentSustainability Achievements Use of Renewable Energy 5,278GWh*31%increase compared to the previous yearEHS management system at our production sites 100%certified Recycling 96%Collection 5.07*Cumulative sum,2009-2021Recognition of Our Efforts to Respect Human Rights Ranked 1st Digital Responsibi

179、lityHours of employees volunteer work9,903,186hours*Cumulative sum,2012-2021Number of beneficiaries of our CSR activities22,150,865people*Cumulative sum,2012-2021Number of companies adopting Smart Factories 2,812companies*Cumulative sum,2015-2021Suppliers rated outstanding in the comprehensive suppl

180、ier evaluation68%*The comprehensive competitiveness of our suppliers is evaluated each year.All smelters and refiners in our supply chain100%RMAP certified1)Responsible Minerals Assurance ProcessCases of internal consulting on privacy protection 9.7%4th*Digital Inclusion Benchmark conducted by the W

181、orld Benchmarking Alliance.2021 Digital Inclusion BenchmarkSustainable Supply ChainOur EmployeesEmpowering Communitiesmillion tonnes of discarded electronic goodsof manufacturing wasteincrease compared to the previous year(ICT sector)among companies benchmarked by Global Child Forum(electronics sect

182、or)ISO 450011)certified Safety and Health Certification at our production sites100%1)International standard for occupational health and safety management systemsSamsung Electronics Sustainability Report 202216Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach

183、to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix16Recognition and AwardsRankingsCommon Criteria Certification1)for 5G Solutions 1)Global security certificationProduct Carbon Footprint Label by the Carbon Trust 11 TV models,3 monitor,and 2 signage 10 smartphone mo

184、dels including Galaxy S22 Ultra and 4 tablet models 4 system semiconductors 20 memory semiconductors UL Gold Certification Galaxy S22,S22+,S22 Ultra and 16 other modelsElectronic Product Environmental Assessment Tool Certification(US)6 TV models including BE75T-H,14 Signage models including LH43QMBE

185、BGCXZA,90 Monitor models including S27A400UJN,Note PC NP930QDBA,etc.CertificationsLower Carbon Label by the Carbon Trust Galaxy S21,S21+,and S21 Ultra 13 TV models,3 monitor,and 2 signage 5 memory semiconductors)Carbon Trust Triple Standard All semiconductor business sites certified for reduced impa

186、cts related to carbon,water,and wastea first for any manufacturer in the industry.4 LED Package Products,Underwriters Laboratories(UL)Certification CES 2022 Innovation Awards Selected as the highest rated winner (4 products)Selected as the winner(39 products)2021 Sustainable Materials Management Ele

187、ctronics Challenge by the United States Environmental Protection Agency Sustained Excellence for SolarCell Remote Gold Tier for excellence in the responsible collection and recycling of electronic wasteNational Quality Management Awards by the Korean Ministry of Trade,Industry and Energy Presidentia

188、l Citation Foundry Business for securing unmatched quality enessNational Technology Awards by the Korean Ministry of Trade,Industry and Energy Presidential Prize Foundry Business for developing processing technology for 14nm RF and succeeding in the worlds first mass-productionAwardsEnergy Winners o

189、f the Year by Consumers Korea 8 prizes including Grand Prize and Minister of Trade,Industry and Energy Prize Health-Friendly Company Certification by the Korean Ministry of Health and Welfare Minister of Health and Welfare Prize Certified for the operation of tailored healthcare programs,in-house cl

190、inics,the Musculoskeletal Disorder Prevention Exercise Center,healthcare-themed concerts,etc.ENERGY STAR Awards,US EPA Partner of the year awards for environmental protection Honored with sustained Excellence nine timesIDEA 2021(48 products)5th in Best Global Brands 2021(USD 74.6 billion,20%increase

191、 from previous year)1st in Worlds Best Employers for two consecutive years in 2020 and 2021Win-Win Index by Korea Commission for Corporate Partnership under the Korean Ministry of SMEs and Startups Rated outstanding for 10 consecutive yearsSamsung Electronics Sustainability Report 202217Our CompanyD

192、igital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix17iF Design Award 2021(71 products)Sustainability Governance We strive to achieve sustainability governance through the establishment of

193、 company-wide governance system including the Board of Directors and Sustainability Management Office in each business unit.The Board oversees our sustainability activities as the overarching decision-making body.The Sustainability Committee under the Board was established in July 2021 by expanding

194、the role of the existing Governance Committee to push ahead with various ESG activities and increase shareholder value.The Sustainability Council brings together heads of business units and functional teams responsible for a wide range of sustainability issues.The Council,previously led by the head

195、of the Corporate Management Office,has been placed under the direct supervision of the CEO since 2022.As the sustainability management control tower,the Corporate Sus-tainability Center is responsible for establishing overall strategies for sustainability,monitoring relevant outcomes,and facilitatin

196、g external cooperation and communication through collaboration with related departments and councils.The Sustainability Management Office of each business establishes sustainability strategies tailored to its operations and characteristics,and supports their execution.Sustain-ability Management Offi

197、ces outside of headquarters identify regional issues that concern our stakeholders and establish and implement strategies accordingly.Sustainability training is offered to employees and executives to integrate ESG principles into their day-to-day tasks.Since 2021,we have included sustainability-rela

198、ted items in our per-formance evaluation system for executives and business units to ensure adherence to sustainable practices.We plan to continually update our evaluation and compensation system.Monitoring overall sustainability direction and performance Key agenda:Environmental issues such as clim

199、ate change and circular economy,social contribution,labor and human rights,safety and health,ethics,and compliance Held at least every 6 monthsBoard of Directors Reviewing sustainability issues with those in charge of sustainability in different business areas*Agenda items discussed by the Sustainab

200、ility Council and the results reported to the Board and Sustainability Committee Headed by the CEO Held at least every 6 months ParticipantsCorporate Management Corporate Sustainability Center,Corporate Human Resource Team,Corporate Management Team,Partner Collaboration Center,Global EHS Center,Glob

201、al CS Center,Compliance Team,IR Team,Global Marketing Center,Communication Team,Mechatronics and Manufacturing Technology Center,and Corporate Citizenship Office,etc.Business Units Heads of major business units and the Sustainability Management OfficeThe Sustainability CouncilDepartments Dedicated t

202、o Sustainability Corporate Sustainability Center Sustainability Management Office of the DS Division Sustainability Management Office of major business unit(VD,DA,MX,Memory,Foundry,etc.)Sustainability Management Functions at regional offices Councils by Category Environment Environment Management Ta

203、sk Force,EHS Council,Eco Council Digital Responsibility Security and Privacy Protection Council,AI Ethics Council,Accessibility Council Employees Labor and Human Rights CouncilDedicated Departments&CouncilsSamsung Electronics Sustainability Report 202218Our CompanyDigital ResponsibilityEnvironmentSu

204、stainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix18Stakeholder Engagement Engagement with our stakeholders is essential for us to fulfill our responsibilities as a responsible global company.We strive to build a coopera

205、tive relationship and enhance mutual understanding in sustainability topics with our stakeholders through various activities such as multi-stakeholder forums,surveys,and on-site visits.StakeholdersMajor ConcernsCommunication ChannelsMajor ActivitiesCustomers Product and service quality Product safet

206、y Product information accuracy Communication transparency Customer satisfaction surveys Contact centers and service centers Samsung Newsroom Samsung Semiconstory Young Samsung Community Reinforcement of quality and safety management systems Establishment of country-specific websites to share product

207、 information Identification and resolution of customers needs Stable profit generation Enhancement of shareholder return policies Reinforcement of transparency in external sponsorshipsShareholders and Investors Economic outcomes Risk management Information-sharing Sustainability agenda (Environment,

208、Social,Governance,etc.)IR meetings and roadshows General shareholders meetings One-on-one meetings Analyst Day Investor ESG roadshows Mentoring by Millennial and Gen Z employees for executive management Management of workplace environments Cultivation of a corporate culture that promotes creativity

209、Operation of a career design program tailored to individual stages Organization of townhall meetings(business status presentations by individual divisions,etc.)Employees Working environment safety Diversity and inclusion Training and career development Employment security and welfare Labor-managemen

210、t relations Labor unions and labor-management councils Counseling centers Satisfaction surveys Internal communication channels Whistleblowing systems (compliance and ethics)Promotion of fair transactions and shared growth Support for partner companies innovative initiatives Staging of technology tra

211、nsfer fairs Operation of partner company support funds Management of partner companies working environmentsSuppliers Fair transactions Shared growth Labor and human rights of workers Hotline,online whistleblowing systems,etc.Conferences with partner companies Partner Collaboration Day Shared Growth

212、Academy Supplier Consulting Group Support for SMEs for establishing smart factories,etc.Preservation of river ecosystems near our business sites Promotion of CSR programs regarding training and employmentLocal Communities Recruitment of local jobseekers,revitalization of the local economy,etc.Indire

213、ct economic effects Environmental conservation for local communities Community outreach through donations,volunteer work,etc.Local volunteer centers Local community councils Collection of opinions and suggestions from global NGOs RBA,and BSR activities EPRM and RMI activitiesNGOs,Organizations,and E

214、xpert Institutions Social responsibility for local communities and the environment Contributions to UN SDGs Joining UN Global Compact Transparent and prompt information disclosure Corporate conferences Meetings with NGOs Meetings with civil society groups Operation of programs to support SMEs in col

215、laboration with the government Operation of venture investment counters in collaboration with the governmentGovernment Indirect economic effects Fair transactions Occupational health and safety Compliance Policy conferences National Assembly meetings Policy advisory bodiesMedia Support for news cove

216、rage activities PR Planning Staging of Media Day Transparent and prompt information disclosure Press releases Samsung Newsroom Press InterviewSamsung Electronics Sustainability Report 202219Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOu

217、r EmployeesEmpowering CommunitiesSustainability FoundationAppendix19Joining UN Global Compact(UNGC)We joined the United Nations Global Compact,a global initiative to encourage businesses to align their operations and strategies with universal sustainability principles,in March 2022.By joining the UN

218、 Global Compact,we expressed our commitment to embedding its principles in all aspects of our management and corporate culture and expanding our cooperation with global stakeholders,including the United Nations.As a global corporate citizen,we remain committed to sustainability and take shared respo

219、nsi-bility to preserve the environment and build an inclusive world in partnership with stakeholders.United Nations Global Compact(UNGC)The United Nations Global Compact is a non-binding initiative that encourages its participants to incorporate universal sustainability principles on human rights,la

220、bor,environment,and anti-corruption into their business operations and strategies.It is joined by over 19,000 members(including 15,000 corporate members)from 164 countries.10Businesses should work against corruption in all its forms,including extortion and bribery.07Businesses should support a preca

221、utionary approach to environmental challenges;08Businesses should undertake initiatives to promote greater environmental responsibility;and09Businesses should encourage the development and diffusion of environmentally friendly technologies.01Businesses should support and respect the protection of in

222、ternationally proclaimed human rights;and02Businesses should make sure make sure that they are not complicit in human rights abuses.03Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;04Businesses should seek the elimination of al

223、l forms of forced and compulsory labor;05Businesses should seek the effective abolition of child labor;and06Businesses should seek the elimination of discrimination in respect of employment and occupation.INTERVIEW“Samsung Electronics is a very respected player within the RBA Community,and has grown

224、 its visibility within RBA a lot as an active member company.Samsung has improved its commitment regarding key sustainability topics,and the company is committed to supporting suppliers.Next step for Samsung may be to scale its efforts to support sup-pliers with their due diligence practices and sys

225、tems.”-Bart Devos,Senior Director of Public Policy,Responsible Business Alliance-“Samsung Electronics has a strong involvement in educating the future generation of leaders.Initiatives like Solve for Tomorrow stimulate youths potential for innovative thinking and responsible attitude and through thi

226、s,create the foundation for more sustainable communities whose members are able to act for the common good.”-Alice Dutu,Deputy CEO,Junior Achievement Romania-“Our work together on the Climate Superstar Challenge demonstrates Samsungs commitment to encouraging sus-tainability in the next generation.T

227、he Challenge presents fun and educational activities that help middle school stu-dents understand where their energy comes from and how it can affect the environment.Samsungs support of the Climate Superstars Challenge is a great example of a strong commitment to educating students in meaningful and

228、 unique ways.”-Meri-Margaret Deoudes,President&CEO,National Environmental Education Foundation(NEEF)-“Samsung Electronics Sustainability Management program has made great strides during the past few years.In the US,the program started with a solid foundation on electronics recycling and has steadily

229、 expanded recently into an industry-leading consumer self-repair initiative and groundbreaking partnerships like the one announced with Patagonia at CES 2022.Samsung Electronics also provides industry leadership at CTA on sustainability initiatives,including chairing CTAs Environmental Policy Commit

230、tee from 2019-2021.”-Walter Alcorn,VP,Environmental Affairs and Industry Sustainability/Consumer Technology Association-Samsung Electronics Sustainability Report 202220Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering

231、CommunitiesSustainability FoundationAppendix20Business Model of Sustainability ManagementWe introduced the integrated reporting framework to more effectively communicate the tangible and intangible values created by our business operations to our stakeholders.This framework clas-sifies all injected

232、capital as financial capital,manufacturing capital,social and relationship capital,human capital,intellectual capital,or natural capital and defines how these six forms of capital work to raise stakeholder value through our organization consisting of two divisions and our five ESG pillars.Human Capi

233、tal Employee satisfaction:90 point Ratio of female employees:36.3%Number of employees with disabilities:1,574 persons Number of employees training:8.18 million casesHuman Capital Number of employees:266,673 Costs of employee training:13.21 KRW million Hours of training per employee:54.9Intellectual

234、Capital Number of domestic patents(cumulative sum):47,900 Number of overseas patents(cumulative sum):216,404Intellectual Capital R&D workforce:75,229 persons Costs of R&D:22.4 KRW trillionNatural Capital GHG emissions reduction:17,400 thousand tonnes CO2e Rate of product energy consumption reduction

235、:33%Rate of conversion of waste to resources:96%Amount of recycled plastic used:33,319 tonnes Amount of recycled packaging:13,788 tonnes Number of leakage of substantial harmful chemicals:0Natural Capital Energy consumption:33,755 GWh Total water intake:163,660 thousand tonnes Investments in EHS man

236、agement:1.4 KRW trillionInputBusiness ActivitiesDivisions and BusinessesESG PillarsStakeholdersOutput Sales:279.6 KRW trillion Operating profit:51.6 KRW trillion Net income:39.9 KRW trillion Credit rating:Moodys:Aa3,S&P:AA-Financial Capital Equity:304.9 KRW trillion Liabilities:121.7 KRW trillion Ta

237、ngible asset:149.9 KRW trillionFinancial Capital Actual output:Image Devices 44,133 thousand units,HHP 260,501 thousand units,DS(Memory)1,7 trillion units Operating rate:Image Devices 81.4%,HHP 81.5%,DS(Memory)100%Manufacturing Capital Production capacity:Image Devices 54,235 thousand units,HHP 319,

238、550 thousand units,DS(Memory)1,756,009,941 thousand units Production Sites:32Manufacturing Capital Employees of suppliers who received training:18,725 Rate of suppliers rated outstanding in the comprehensive evaluation:68%Number of beneficiaries of CSR activities:536,770 Number of beneficiaries of s

239、mart factory support:286Social and Relationship Capital CSR costs:0.4 KRW trillion Purchasing costs for suppliers:192 KRW trillion Hours of employee volunteer work:824,329Social and Relationship CapitalGovernmentCustomersEnvironmentClimate Action,Circular EconomyEmpowering CommunitiesCorporate Citiz

240、enship,support for SMEsDigital ResponsibilityPrivacy Protection,Cyber SecurityOur EmployeesLabor and Human Rights,Diversity and InclusionSustainable Supply ChainSupply Chain Driving Mutual GrowthLocal communitiesNGOs,Associations andExpert organizationsShareholders and investorsSuppliersEmployeesPeo

241、pleExcellenceChangeIntegrityCo-prosperityMediaDSDRAM,NAND flash,mobile AP,etc.DXTVs,monitors,refrigerators,washers,air conditioners,HHPs,PCs,Network Systems,etc.Samsung Electronics Sustainability Report 202221Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach

242、to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix21ENVIRONMENTBased on our strong conviction that the future hinges on the wellbeing of the planet,we take an environmentally conscious approach to business.This approach is reflected in our commit-ment to advancing

243、the co-prosperity of humanity and nature and building a brighter future for the planet.Our commitment is the driving force behind our continued pursuit of sustainability in everything we do.Environmental Management 23 Governance Climate Action 25Maximizing Resource Circularity 325.07 million tonnes7

244、.5 million tonnesCollected E-WasteCollected E-WasteAcquire Zero Waste to Landfill Certification for All Manufacturing Sites96%recycledWaste from Manufacturing SitesContinue to reduce power consumption standby for major products334million tonnes(cumulative 2009 2021)Reduction in GHG Emissions in the

245、Product Use PhaseContinue to reduce GHG Emissions6.41million tonnes GHG ReductionContinue to expand use of renewable energy5,278GWh*31%increase YoYRenewable Energy UsePerformance in 2021Future Targets(cumulative from 2009)(cumulative from 2009)Samsung Electronics Sustainability Report 202222Our Comp

246、anyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix22We are in the process of establishing a mid-to-long-term envi-ronment strategy to address global challenges on climate and environ

247、ment that cuts across every aspect of our business.We look forward to sharing this plan as soon as possible.We strive to address environmental challenges and minimize our impact on the environment from our business.Climate change,product energy efficiency,water resources,and waste management are the

248、 issues that directly affect our operations and financial performance.We report these issues to the Board of Directors,our overarching decision-making body.The Board oversees the imple-mentation of our climate actions and resource circulation measures.The CEO holds the responsibility and authority t

249、o ensure that our environmental strategy and investments are implemented in a man-ner that achieves our environmental goals.The CEO,together with other chief officers,leads the Sustainability Council.The council,which consists of environment-related executives,works to establish sustainability-relat

250、ed plans and review their outcomes.Semiconductor Environmental Performance Index(SEPI)As semiconductors are being implemented in a growing number of prod-ucts,achieving eco-conscious semiconductor manufacturing has become a major issue with far-reaching impacts on many industries around the world.To

251、 transparently share our performance and practices,we devel-oped environmental management guidelines tailored to the traits of the semiconductor industry and the Semiconductor Environmental Perfor-mance Index(SEPI),our internal semiconductor-related environmental management index disclosed on our we

252、bsite.Consisting of 32 indicators within six themes,SEPI is used to evaluate outcomes in four categories:contributions to eco-conscious semiconductor manufacturing,environ-mental management of partner companies,environmental performance of individual business sites,and environmental benefits for use

253、rs.We aim to more accurately and efficiently communicate with diverse stakeholders by disclosing our performance systematically assessed through SEPI.1)Semiconductor Environmental Performance IndexCASESets company-wide climate change response strategies and goals,identifies major risks and opportuni

254、ties,and makes decisions on relevant agenda itemsDiscusses company-wide climate change response strategies and goals,major risks and opportunities,and implementation performanceSupervises and monitors each business sites climate actions and efforts to mitigate GHG emissionsSeeks ways to facilitate t

255、he development of eco-conscious productsEHS Councils (DS/DX divisions)Eco-CouncilOutlines tasks for for climate actions&resource circulation and monitors their implementation Environment Management Task ForceSustainability CommitteeSustainability CouncilCorporate Environment Management CouncilThe En

256、vironment Management Task Force outlines the tasks required to accomplish such plans and monitors their implementation.Each division operates the EHS Council to monitor its business sites and find solutions to their environmental challenges,including issues result-ing from climate change.The Eco-Cou

257、ncil seeks ways to facilitate the development of eco-conscious products and monitors the results.The Global EHS Center,Global CS Center,and Environment and Safety Center are also in place to help business sites mitigate GHG emissions and reduce the environmental footprint of our products.Management

258、SystemsOur business sites are required to meet international standards for environmental management and energy management systems.As of 2021,all of our business sites have attained ISO 14001(environ-mental management system)and ISO 50001(energy management system)certifications and implemented strate

259、gies and tasks within these frameworks across all stages of operations,from purchasing to development,manufacturing,distribution,and recycling.We also include GHG mitigation levels and other environmental indi-cators in the performance assessment of each division and business.In order to raise our e

260、mployees awareness on the importance of eco-conscious management and eliminate environmental risks,we conduct environmental training for all employees at least once a year as well as special job-specific training.Risk ManagementRisks and opportunities related to climate change,waste genera-tion,wate

261、r resources,and other environmental factors have a serious impact on our products,services,manufacturing processes,supply chains,R&D,and sales.We closely monitor our business sites around the world to identify potential risks pursuant to our risk management processes and manuals for environment and

262、safety,climate change and energy,and compliance.At the same time,we strive to develop products with high energy efficiency,reduce GHG emissions from our manufacturing sites,mini-mize landfill waste,and preserve water resources.The SEPI 5 principlesAssess progress of environmentalmanagement areasFrom

263、 systems to the whole value chainLow-power,high-performancesemiconductor supplySustainability reports,annual reports,etc.Greenhouse gases,industrial water,wasteand chemicalsTechnological standard and PFC emissionsAssess the mainenvironmental factorsAssess contribution tocleantechDevelop acharacteris

264、tics indexConsult disclosedannual dataEnvironmental Management GovernanceSamsung Electronics Sustainability Report 202223Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix23P

265、lanning products with lower energy consumptionClimate actionDesigning products that more easily disassemble for recycling/Extending product life cycles/Expanding the use of eco-conscious materialsResource circularityEco-Conscious Activities along the Value Chain We have pushed ahead with diverse env

266、ironmental initiatives at different stages of the value chain to minimize our environmental footprint across the entire product life cycle,from development to purchasing,manufacturing,distribution,use,and disposal.Improvement plans and tasks for these priorities are established for climate action an

267、d resource circularity,the two areas requiring extensive concerted efforts at the global level.Their implementation status is closely monitored on a continuous basis.Product DevelopmentExpanding renewable energy use/Reduction of GHG emission in the manufacturing processMinimizing water consump-tion

268、and expanding water reuse /Minimizing waste generation and expanding recycling/Developing alter-natives for chemical sub-stancesManufacturingReducing energy consump-tion and GHG emissions through logistics optimiz-ationApplying eco-conscious materials(recycled paper,etc.)to packaging/Reduc-ing the v

269、olume and weight of packagingDistributionReducing indirect GHG emissions through products with high energy efficiencyImproving product perfor-mance/Upgrading firmware/Offering extended product warrantiesUseIncreasing the number of repair service centers around the world/Offering opportu-nities to ex

270、tend product life cycles through remote and expert diagnosis servicesRepair and ReuseMonitoring GHG emissions during product disposal.Operating country-specific programs to collect discarded products/Separating recy-clables by material for recy-clingTake-Back and RecyclingSupporting suppliers in Red

271、ucing GHG emissions and expanding renewable energy use Purchasing materials and parts with less environmen-tal impact/Working with companies with Eco-Partner certificationProcurementENVIRONMENTProduct DevelopmentRepair and ReuseUseDistributionTake-Back and RecyclingProcurementManufacturingDelivery o

272、f repair products using eco-conscious trans-portationSamsung Electronics Sustainability Report 202224Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix24Climate Action Our Re

273、sponse to Climate ChangeClimate change is one of the most serious threats facing human-ity and a challenge that significantly affects our business.As such we have set up a climate change response strategy centered on the expansion of renewable energy use,reduction of gases used in semiconductor manu

274、facturing,and improvement of energy efficiency across the entire manufacturing process.We are also moving forward with a wide range of programs to mitigate GHG emissions in all stages of our value chain,from product development to manufacturing and logistics.The GHGs emitted outside our business sit

275、es,as well as those emitted directly by our business sites,are subject to such programs.GHG ManagementWe closely monitor the GHGs generated at all of our business sites around the world.We require each business site to enter GHG data in relation to electricity use,fossil fuel use,and gas use in semi

276、conductor manufacturing into the EHS System.This allows us to identify and analyze the causes of fluctuations in GHG levels at individual sites on a monthly basis.The organizational unit in charge keeps GHG emissions from domestic and overseas sites under control based on the findings of the analysi

277、s.The credibility and alignment of the data are verified through the annual third-party audit.Climate Change Risks and OpportunitiesWe identify the substantive financial and strategic impacts of climate change risks,establish response measures in accordance with the magnitude and extent of such impa

278、cts,and reflect them in our business.These risks include changes in the global climate system,region-specific regulatory reinforcement,market trends,stakeholder needs,the changing physical environment,and more.In the short term,we view emissions permit price increases,extreme weather events,and the

279、requirement to introduce high-efficiency technologies as potential risks,and emissions permit purchasing and reduced energy costs as opportunities.We project changing consumption patterns and expanded renewable energy use as mid-term opportunities and the physical impacts such as climate change and

280、water stress as long-term risks.We establish response measures for long-term risks based on the country-specific emissions mitigation plans pursuant to the Paris Agreement,emissions scenarios of the Intergovernmental Panel on Climate Change(IPCC),and Energy Technology Perspectives of the Internation

281、al Energy Agency(IEA).Our Response to Climate Change by StageGHG emissions reduction at business sites Operating equipment for the abatement of fluorinated gases in semiconductor manufacturing Implementing projects to improve energy efficiency through-out the manufacturing process Expanding the use

282、of renewable energyGHG emissions reduction in other value chain stages Controlling GHG emissions from suppliers,logistics compa-nies,business trips of employees,etc.GHG emissions reduction in the stage of product use Mitigating GHG emissions from product use through the development of products with

283、high energy efficiency Developing low-energy semiconductors with power efficiency improved by over 10%compared to the previous generation EHS,marketing,sales,and compliance organizational units regularly assess risks in relation to business operations,product planning,and external trends based on IS

284、O 14001,ISO 50001,and other international standards for energy management systems.Identification and Assessment of Risks Energy consumption,GHG emissions,renewable energy use,and impacts of climate change are monitored by organizational units dedicated to EHS.Relevant issues affecting global busines

285、s sites are discussed and managed by regularly convened councils such as the EHS Council.The Sustainability Council discusses and makes necessary decisions regarding climate change risks and opportunities.The Eco-Council examines business opportunities,shares the results with relevant businesses and

286、 organizational units,and implements action plans.Management of Risks and Opportunities Climate change-related regulatory risks are managed through the compa-ny-wide risk management system in an integrated manner.Risks include region-specific risks and global regulatory and market changes that may a

287、dversely affect our business and reputation.Integration of Climate Risks and Opportunities into theCompany-Wide Risk Management ProcessClimate Change Risk Management ProcessGHG emissions reduction based on cooperation with external partners Securing emissions permits through carbon reduction project

288、s with external partners,such as the Clean Development Mech-anism(CDM)Samsung Electronics Sustainability Report 202225Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix25 GHG

289、 emissions trading Adoption of high-efficiency technologies Changes in customer behavior Expansion of renewable energy use Natural disasters such as typhoons and floods Global temperature rise and yellow dustTransition risks and opportunitiesPhysical risks and opportunitiesShort-termShort-termMid-te

290、rmMid-termShort-termLong-termCDP Report(Climate Change)Annual Business Report Risks and Opportunity AnalysisBusiness impacts Probability of occurrence534216 Increased costs due to the rise in GHG emissions permit prices and reinforced pollutant discharge regulations*Refer to the Annual Business Repo

291、rt.Increased investment in high-efficiency equipment,GHG emissions reduction equipment,and water resource recycling equipment Increased R&D investment to develop advanced emissions reduction technologies Increased costs for attaining high-efficiency and eco-conscious product certifications Reduced s

292、ales of products with low energy efficiency ratings Increased R&D costs for high-efficiency and eco-conscious products Increased production costs due to the rise in short-term energy costs Reduced B2B sales due to customer demand for renewable energy use Increased investment costs for the installati

293、on of environmental/safety/emergency facilities for natural disaster prevention Increased costs for business restoration and lost busi-ness opportunities in the event of a natural disaster Increased business site operating costs due to cooling and heating device installation,etc.Increased investment

294、 costs for air pollution prevention equipment installationFinancial Impacts of Climate Change Risks Purchase of permits minimized through GHG emissions reduction activities Easing of price sensitivity by attaining permits through projects in cooperation with outside partners Reduction of GHG emissio

295、ns and energy costs of business sites Creation of business opportunities such as energy management systems Release of high-efficiency and eco-conscious products Leading to increased sales and brand awareness Energy cost reduction by sourcing renewable energy and participation in renewable power gene

296、ration projects Decreased insurance costs through investment in natural disaster response facilities New business opportunities such as the launch of the National Disaster and Safety Network Increased sales from the expansion of high-efficiency air conditioner,air purifier,and dryer businessesFinanc

297、ial Impacts of Climate ChangeOpportunitiesClimate Change Risks andOpportunitiesSamsung Electronics Sustainability Report 202226Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppen

298、dix26GHG Reduction ActivitiesWe prioritize finding solutions for the eco-conscious treatment of gases used for semiconductor manufacturing,expansion of renewable energy use,and conservation of energy.With the recent expansion of facilities and increase in production,our business sites are work-ing h

299、ard to minimize the increase in GHG emissions by enhancing manufacturing process efficiency and reducing energy consumption.For semiconductor manufacturing sites,we established the Decar-bonization Committee to monitor their mitigation of GHG emissions every quarter based on our roadmap for the miti

300、gation of GHG emis-sions.Each site is required to project its GHG emissions,identify tasks for the mitigation of GHG emissions in manufacturing processes,and implement action plans on a yearly basis.In 2021,we reduced GHG emissions by a total of 6.41 million tonnes through 476 projects including imp

301、roving gas treatment equipment efficiency,installing high-efficiency equipment,and enhancing manufacturing efficiency.Energy Conservation in the Manufacturing ProcessIoT-Based Infrastructure We monitor our energy consumption through IoT and AI-based HVAC system for better efficiency and con-trol.Ope

302、ration data from the central air conditioning system and individual air conditioning units is analyzed every minute to set the optimal control value,which is adjusted based on algorithms.This solution was applied to business sites in Korea,Vietnam,and the US and worked to reduce energy consumption b

303、y 11-13%per year.We plan to apply it in Europe,Southwest Asia,and Central and South America as well and are reviewing the possibility of sharing it with our partner companies.Energy Reduction in Semiconductor Manufacturing To reduce energy consumption across all stages of semiconductor manufacturing

304、,we strive to innovate the process,reduce main equipment testing time through operation optimization,improve auxiliary equipment oper-ation temperature conditions,install high-efficiency equipment,and neutralize the wet scrubber(harmful gas processing device).To reduce LNG use,we introduced the Rege

305、nerative Catalytic System(RCS)for heat sources on a pilot basis,while also collecting waste heat through the coolant system and heat exchanger and adjusting the air temperature and air flow of outdoor air control units.We plan to expand the implementation of the RCS depending on the results of on-si

306、te testing.Energy Consumption Monitoring We analyze our energy consump-tion in real time based on energy data,the operating status of major facilities,and product manufacturing information collected through IoT modules and sensors and display the findings on the monitoring system.We ran a pilot test

307、 of this system at our Vietnam business site in 2021 and plan to apply it to more sites,starting with those with greater energy consumption.The energy consumption monitoring system is capable of real-time energy consumption monitoring,tar-get management,consumption management in accordance with pro-

308、duction,and energy consumption pattern analysis for different time periods.Reduction of Semiconductor Process GasesImprovement of Treatment Efficiency for Semiconductor Process Gases To improve the efficiency and utilization of gas treatment facil-ities,we are expanding the installation of the Regen

309、erative Catalytic System(RCS).In July 2020,we developed a new catalyst for GHG emissions reduction equipment through three years of joint R&D with our partner companies and raised the gas treatment rate to 95%.Reduction in the Use of Semiconductor Process Gases We are striving to minimize the use of

310、 semiconductor process gases while enhanc-ing efficiency in gas treatment.To this end,we have pushed ahead with a project to optimize the processing time,stages,and recipes for individual processes and continue to monitor our performance on a monthly basis.Development of Alternative Gases We remain

311、committed to develop-ing and applying alternatives to replace gases with high global warm-ing potential(GWP).Since 2018,we have used G1,in lieu of C4F8,forsome of the processes.We will continue to actively engage in R&D onalternatives for CF4,CHF3,C4F6,and SF6.Decarbonization Committee OperationsThe

312、 Decarbonization Committe oversees the operation of GHG emis-sions mitigation activities at our semiconductor manufacturing sites and secures technologies to address different emitters.The committee is chaired by the Head of Global Manufacturing and Infra Technology and comprises relevant organizati

313、onal units including the EHS Center,Infra-structure Technology Center,and Manufacturing Technology Center.The committee establishes roadmaps for the reduction of emissions for dif-ferent sources of GHGs,from semiconductor process gases to fossil fuels,electricity,and renewable energy.It also monitor

314、s the outcomes of GHG emissions mitigation activities on a quarterly basis.CASE43%GHG Emissions Reduction Activities in 202144%1%0.1%12%Expanded use of renewable energy sourcesEquipment operation efficiency improvementManufacturing process efficiency improvementOthersEco-conscious treatment of gas u

315、sed in the manufacturing process2021Samsung Electronics Sustainability Report 202227Our CompanyDigital ResponsibilityEnvironmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix27Expansion of Renewable Energy UseMid-t

316、o-Long-Term Renewable Energy PlanWe are expanding the use of renewable energy at our business sites around the world.The legal systems and infrastructure conditions,which vary by region,require region-specific transition plans.The business sites1)in the US,Europe,and China were converted to 100%rene

317、wable energy sources in 2020 and are in the process of replacing their REC system with the PPA system.1)Includes non-manufacturing operations in buildings/office spaces that are owned by Samsung Electronics and those in rental spaces that consume over 1,000 MWh/year.The rate of renewable energy in B

318、razil and Mexico increased to 94%and 71%in 2021,respectively.We expect to be able to attain 100%renewable energy in Latin America and Southwest Asia by 2025.These regions are considered more advantageous as PPA and Green Pricing are common practice.We will actively expand the use of renewable energy

319、 in areas where the use of renewable is relatively low such as Southeast Asia and Africa,considering the legal system and infrastructure of respective countries.Status of Major Business SitesKorea The Suwon and Giheung business sites are equipped with 1.9MW and 1.5MW-capacity photovoltaic power gene

320、rators,respectively.The Pyeongtaek business site is equipped with a 0.4MW-capacity photovoltaic power generator and 200RT-capacity geothermal power generator.We installed a 0.08MW-capacity photovoltaic power generator at the Onyang business site in 2021.We plan to install an additional 0.2MW-capacit

321、y photovoltaic power generator at the Onyang business site and a 0.15MW-capacity photovoltaic power generator at the Gumi business site.We also purchased 490GWh of renewable energy using the Green Premium implemented in 2021.We will continually expand the use of photovoltaic and geothermal power gen

322、erators,and the Green Premium,at our domestic business sites.Central and South America The business site in Campinas,Brazil,completed its conversion to 100%renewable energy in 2021 by signing power supply contracts with local wind power,photovoltaic power,and hydropower stations.The business site in

323、 Manaus,Brazil,is currently powered by 92%renewable energy sourced from Green Pricing.The site plans to use 100%renewable energy by 2025.The business site in Mexico increased its share of renewable energy to 71%in 2021,up from 4%in 2020,through contracts including REC purchases.This site is seeking

324、to further expand its renewable energy suppliers and achieve conversion to 100%renewable energy by 2025.Southwest Asia The business site in Chennai,India,achieved 53%conversion to renewable energy by sourcing electricity from local photovoltaic power,wind power,and biomass power stations.The busines

325、s site in Noida,India,installed photovoltaic power generators with a total capacity of 0.7MW in parking lots and pedestrian passages and is seeking to expand its network of renewable energy suppliers.Mid-to-Long-Term Roadmap for Renewable Energy UsageDeclaration to expand the use of renewable energy

326、2018Business sites in the US,Europe,and China powered with 100%renewable energy2020Business sites in Central and South America and Southwest Asia powered with 100%renewable energy2025Renewable Energy Use (Unit:GWh)5,2782021 4,0302020 3,2202019 2021 5,278 GWhRenewable Energy Use in Major Regions with

327、 Operations (Unit:%)BrazilMexicoIndia1)ChinaEurope US1001009610010095100100909493903.84.371142823 2019 2020 20211)In 2021,the rate of renewable energy use in India decreased,due to the increase in power consumption.Samsung Electronics Sustainability Report 202228Our CompanyDigital ResponsibilityEnvi

328、ronmentSustainable Supply ChainFacts&Figures Approach to SustainabilityOur EmployeesEmpowering CommunitiesSustainability FoundationAppendix28Product Energy EfficiencyWe closely monitor the latest developments in environmental regulations and technologies to reduce energy consumption via the company-

329、wide Eco-Council consisting of specialists in the field and each business units consultative body of working-level staff members.To mitigate GHG emissions in the product use phase,we continually develop and implement energy efficiency measures for new products.In 2021,the annual energy consumption o

330、f our products was reduced by an average of 33%compared to 2009 through the implementation of the high-efficiency heat exchangers for air conditioners,enhanced cleaning power for washers,and high-efficiency driver ICs for TVs.GHG Emissions Reduced in the Product Use Phase1)2021 202020193333430131270

331、27Home AppliancesSmartThings Energy is our AI-based solution that allows more energy-efficient use of connected home appliances.The solution monitors1)the energy consumption of smart home appliances,including refrigerators,washers,dryers,and air conditioners.It also offers a smart energy-saving mode

332、2).1)Korea,the US,the UK,India,and Brazil 2)Korea PCsWe enhanced the energy efficiency of our laptops by adding circuits designed to reduce the electricity loss of the OLED panel and optimized the energy consumption of chargers by eliminating standby power.Our eco-conscious efforts for the planet,So

333、larCell RemoteWhile seeking ways to produce more eco-conscious remote controls,we noted that existing remote controls all use disposable batteries.This means that each household discards 14 batteries throughout the typical life cycle of a TV,which is about seven years,by changing the disposable batteries once a year.To eliminate the use of disposable batteries,we developed the low-power SolarCell