1、A Journey Towards a Sustainable FutureSamsung Electronics Sustainability Report 2024A Journey Towards a Sustainable FutureSamsung Electronics Sustainability Report 2024Message from Our CEOAbout UsStakeholder EngagementOur Company040506Compliance&EthicsPrinciple53Materiality AssessmentMateriality Ass

2、essment08Our PeopleSustainability in Supply ChainEmpowering CommunitiesPrivacy Protection&SecurityCustomer Safety&QualityPeople3139454850Economic PerformanceSocial PerformanceEnvironmental PerformanceAvailable Water Resources by RegionPerformance by Division Facts&Figures56576265 66Independent Assur

3、ance Report Verification Statement on Scope 1,2Greenhouse Gas EmissionVerification Statement on Scope 3 Greenhouse Gas EmissionGRI Index TCFD IndexSASB IndexCollaboration Efforts on Climate Action About This ReportAppendixDX Division Governance and Major ProgressClimate ChangeCircular EconomyWater&P

4、ollutionDS Division Governance and Major ProgressClimate ChangeWaterWastePollutionPlanet 12131517 1920232628Samsung Electronics Sustainability Report 202402Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeople70 71 727477798182Our Company04 Message from Our CEO05 About Us06 St

5、akeholder EngagementSamsung Electronics Sustainability Report 202403Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 202404Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleMessage from Our CEODear Shareho

6、lders,Customers,Partners,and Employees,Samsung Electronics faced a very challenging year in 2023 due to macroeconomic uncertainties with high interest rates,inflation,and geopolitical issues as well as a sluggish memory industry and increased competition for various product lines.It is thanks to the

7、 interest and encouragement of our stakeholders that we have been able to invest KRW 28.3 trillion in R&D,the highest level ever,and KRW 53.1 trillion in strategic facility investments to strengthen our technology leadership,responding to mid-and long-term needs in advance,laying the foundation for

8、sustainable growth even in such challenging internal and external environments.Once again,I would like to express my deepest gratitude.Reflecting this rapidly changing economic situation,the field of corporate sustainability is also facing many changes.In particular,information disclosure regarding

9、corporate sustainability activities is entering a new era in line with the spread of global non-financial information disclosures.The International Financial Reporting Standards Foundation(IFRS Foundation)issuing its sustainability disclosure standards in June 2023,the EUs Corporate Sustainability R

10、eporting Directive(CSRD)and the United States Securities and Exchange Commissions(U.S.SEC)subsequently confirming their climate disclosure rules all demonstrate the beginning of an era of mandatory ESG information disclosure.In addition,the EU is consistently strengthening its environmental regulati

11、on through means like the Carbon Border Adjustment Mechanism(CBAM)and Battery Regulation.Interest in human rights continue to grow as well as,seen by Germanys Supply Chain Due Diligence Act,mandating supply chain human rights and work environment management,coming into effect in 2023,and the EU Corp

12、orate Sustainability Due Diligence Directive(CSDDD)being approved in May 2024 by member states.Samsung Electronics continued our efforts for a sustainable future in line with this trend.Samsung Electronics announced our New Environmental Strategy in September of 2022,which includes our goals to join

13、 in overcoming the global climate crisis through achieving net zero Scope 1,2 emissions by 2050,maximizing resource circularity to contribute to a circular economy,and tackling environmental challenges through technological innovation.Our two divisions are pursuing a number of environmental efforts.

14、The DX Division,aiming to be net zero Scope 1,2 emissions by 2030,recorded a Renewable Energy(RE)transition of 93.4%by the end of 2023.This includes a 100%RE transition for our major manufacturing facilities world-wide including the United States,EU,China,Republic of Korea,Vietnam,India,and Brazil.T

15、he DX Division is also working in line with our Resource Circularity Roadmap and applied recycled resin in 25%of procured plastic parts.The DS Division installed 16 new process gas treatment facilities(Regenerative Catalytic Systems,RCS)on 4 production line buildings to achieve net zero Scope 1,2 em

16、issions by 2050,and strived to reduce greenhouse gas(GHG)emissions by expanding our liquid natural gas(LNG)waste heat recovery system.We proved our water management systems excellence by obtaining the highest level of certification(Platinum)from the Alliance for Water Stewardship(AWS)for our Giheung

17、,Hwaseong,Pyeongtaek(Korea)and Xian(China)facilities with the goal of reducing our water withdrawal to 2021 levels in 2030.We also aim to reduce our waste generation and are expanding the number of resource circularity certifications obtained from the Republic of Koreas Ministry of Environment.The l

18、ist current stands at 49 items including 9 new certifications for items like wafer boxes in March of 2024.In the social sector,Samsung Electronics aligned with our Global Human Rights Principles(announced in February 2023)to establish a Global Grievance Resolution Policy in March 2024,setting up sta

19、ndards for our grievance submission channels resolution process and submitted grievance resolution principles.We are also expanding our supply chain work environment management scope to include non-and second-tier manufacturing suppliers,depending on risk analysis results.Samsung Electronics also se

20、eks to fulfill our corporate social responsibility.For example,the DS Division established a standard workplace for people with disabilities,named Stellar Forest,as a subsidiary in March 2023.Stellar Forest is dedicated to providing a stable workplace for individuals with development disabilities,st

21、arting with operating a confectionary manufacturer that supplies baked goods to Samsung Electronics employees.This years Sustainability Report is organized in line with global disclosure regulation frameworks to identify our companys key sustainability management issues and to faithfully communicate

22、 these key issues governance structure,strategy,implementation activities and current status.We also designed the Sustainability Report to closely connect to Samsung Electronics newly launched Sustainability Website.As Samsung Electronics experiences an era where environmental,social,and economic ri

23、sks and geopolitical uncertainties have become part of everyday life,sustainability is an unwavering indicator of the direction we must take and a driving force for business competitiveness and technological innovations.As the saying goes,“Difficulty is the Nurse of Greatness”,and Samsung Electronic

24、s will continue to do our best to seek new heights through sustainability and meet the expectations of our stakeholders with even greater progress.Thank you.CEO and Vice Chairman of Samsung Electronics Co.Jong-hee Han Our CompanyDS Division Head and Vice Chairman of Samsung Electronics Co.Young-hyun

25、 JunSamsung Electronics Sustainability Report 202405Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleAbout UsSamsung Electronics Co.,Ltd.(Samsung Electronics)aims to be a global first-class company that contributes to society by creating the best products and services base

26、d on a talented workforce and advanced technology.To this end,Samsung Electronics has established five Key Values that reflect the companys management philosophy and refined the core values into principles and behavioral guidelines,or the Global Code of Conduct.Samsung Electronics will continue to g

27、row by internalizing these five core values in our corporate culture,using the Global Code of Conduct as the standard for all corporate activities.About Our OrganizationSamsung Electronics is divided into two Divisions,Device eXperience(DX)and Device Solutions(DS),operated independently according to

28、 product characteristics.The DX Division produces and sells finished products such as TVs,refrigerators,washing machines,air conditioners,smartphones,network systems,and computers,while the DS Division consists of the Memory Semiconductor Business,Foundry Business,and System LSI Business which produ

29、ce and sell semiconductor components such as DRAM,NAND Flash,and mobile APs.Our CompanySalesKRW 169.9923 trillionOperating ProfitKRW 14.3847 trillionNetworksMobile eXperienceVisual DisplayDigital AppliancesHealth&Medical EquipmentSalesKRW 66.5945 trillionOperating ProfitKRW(-)14.8795 trillionFoundry

30、System LSIMajor Business UnitsDevice eXperienceDXDSDevice SolutionsMemory The sales and operating profits above are based on 2023 figures,including intersegment transactions and excluding the performances of Harman and Samsung Display Company(SDC).Regional Headquarters1)Sales Offices2)Manufacturing

31、SitesProcurement Centers151093261)Regional classification is based on Samsung Electronics internal management criteria.2)Sales subsidiaries,branches,etc.3)Distribution subsidiaries,IP Offices,etc.4)Suppliers of parts used in the manufacturing of Samsung Electronics products.R&D expenditure KRW28.3 t

32、rillionOperations in 76 countriesSuppliers4)2,515Employees 267,860R&D CentersDesign CentersOthers3)Total40723232Samsung Electronics Sustainability Report 202406Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleStakeholder EngagementActive communication with our stakeholders

33、 is an important part of fulfilling our responsibility as a global corporate citizen.Samsung Electronics transparently and timely discloses relevant information on our Sustainability Website .In addition,we seek to strengthen our relations and align ourselves with our stakeholders on issues regardin

34、g sustainability through active communication via multiple channels,including stakeholder forums,surveys,and on-site visits.StakeholdersKey InterestsCommunication ChannelsMajor ActivitiesCustomers(B2C&B2B)Quality of products and services Safety in product use Environmental impact of products through

35、out their life cycle Accurate product information Transparent communication Customer satisfaction surveys Contact centers,service centers Samsung Electronics Newsroom S Samsung Semiconductor Newsroom Sustainability Website Sales Channels Product Environmental Report Reinforce quality and safety mana

36、gement systems Offer product information via country-specific websites Resolve issues identified through Voice of the Customer(VOC)Staff sustainability specialists at the subsidiary and business levelsShareholders and Investors Economic performance Risk management Information disclosure ESG agenda,i

37、ncluding environmental,social,and governance Annual General Meeting Non-Deal Roadshows,Investor Meetings Earnings Releases Investors Forum Investor ESG Roadshow IR Website Forecast business performance and environment Update shareholder return policy Publish disclosures Release corporate governance

38、information Share environmental and social performances Pool shareholder,investor viewsEmployees Safe and healthy work environment Diversity,equity,and inclusion Training and career development Employment and benefits Labor relations Organizational culture Labor unions,work councils Counseling cente

39、rs Satisfaction surveys(work concentration,organizational health,employee experience)Sustainability Website Communications with the executive management Online comm.platforms,including Samsung NOW Compliance and ethics whistleblowing channels Industrial Safety and Health Committee Offer tailored car

40、eer development programs Host town halls by individual business units Perform collective bargaining Operate labor-management relations advisory group Operate health promotion programs (diet programs,etc)Mentor executive management by younger generation employees Manage our business sites work enviro

41、nment Foster a culture of trust and communication Carry out Employer Branding ActivitiesSuppliers Partner Collaboration Workplace EHS(Environment,Health&Safety)improvement Fair Trade Worker human rights protection GHG emissions reduction Global Supplier Relationship Management System(G-SRM)Hotline,o

42、nline whistleblowing channels Partner Collaboration Academy Partner Collaboration Day,supplier dialogues Sustainability Website Support employee training and innovation Manage GHG emissions reduction Provide funding and technology support Manage and take responsibility for suppliers work environment

43、 Collect and resolve grievancesLocal Communities Local employment&economic development Indirect economic effects,incl.investment/employment Conservation of local environment Philanthropic activities Local volunteer centers Sustainability Website CSR Website Support SMEs,including Smart Factory const

44、ruction Conserve river ecosystems near our business sites Run community outreach programs on education and employment(Samsung Stepping Stone of Hope,Samsung SW Academy for Youth,etc.)Intl.Organizations,NGOs,Associations,Specialized Organizations Social responsibilities for local communities,human ri

45、ghts,and the environment Cross-regional&business sector collaboration UN SDGs contributions(climate action,etc)Transparent and timely information disclosure Corporate dialogues NGO meetings Stakeholder forums Sustainability Website Meetings between civil society groups and executive management.Labor

46、-human rights stakeholders workshops Industrial Associations Collect global NGO opinions Engage with RBA1),RMI2),BSR3)1)Responsible Business Alliance2)Responsible Minerals Initiative3)Business for Social Responsibility Engage with UNGC1)Engage with ACEC2),SCC3)1)United Nations Global Compact2)Asia C

47、lean Energy Coalition3)Semiconductor Climate ConsortiumGovernment Indirect economic effects,incl.investment/employment Occupational health and safety Fair trade Compliance Business Ethics Policy conferences National Assembly Policymaking public hearings Policy advisory boards Sustainability Website

48、Support SMEs in collaboration with the government Operate joint venture investment windows in collaboration with the governmentMedia Strategy,performances for major products,business units Future growth strategies such as investment,R&D,and M&A ESG progress(Net Zero,etc)HR,labor relations,health&saf

49、ety,patents,product&service quality,etc.Press releases Sustainability Website Media dialogues Samsung Electronics Newsroom Samsung Semiconductor Newsroom Support media coverage of global IT exhibitions and unpack events Implement planned promotional activities Participate in interviews&press confere

50、nces Participate in media days Our Company Materiality Assessment07Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 202408Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainabilit

51、y Report 2024Samsung Electronics conducts materiality assessments identifying and prioritizing key sustainability issues material to our business,transparently disclosing the processes and results.In 2024,We conducted a Double Materiality Assessment(DMA)adapted from the European Financial Reporting

52、Advisory Groups(EFRAG)materiality assessment implementation guidance.DMA DefinitionSamsung Electronics 2024 DMA evaluates topics of potential materiality to Samsung Electronics sustainability,considering both relevant company activities impacts to the external environment and relevant external facto

53、rs financial impacts to the company in order to ascertain material topics for Samsung Electronics sustainable management.DMA ProcessSamsung Electronics DMA process consists of four steps:understanding the business,identifying impacts,risks,and opportunities(IROs),evaluating IROs,and selecting materi

54、al topics.Step 1.Understanding the BusinessUnderstanding the business involved analyzing our business internal/external environments and value chain,then identifying primary topics.In the internal/external environment analysis,we reviewed disclosed company data such as our Annual Business Report and

55、 internal company data such as stakeholder inquiries to secure base materials for future evaluation processes.We also conducted a value chain analysis to derive ESG topics that comprehensively consider relevant stakeholder characteristics within the value chain.We first organized the value chain int

56、o upstream(raw materials,parts,and other suppliers)own operations(manufacturing,sales)downstream(transportation,sales,repairs/services)phases and identified each phases key stakeholders industrial sectors and business activities.We then analyzed ESG topics for each industrial sector referencing the

57、Sustainability Accounting Standards Board(SASB)standards,after which we derived material ESG topics for each Division and Business Units individual value chain phases.We also identified key stakeholder groups interested in our sustainability activities in order to widely gather stakeholder opinions

58、during the assessment process.We also established various opinion gathering plans to accommodate our diverse stakeholders characteristics.Reflecting DX/DS Divisional Characteristics Samsung Electronics strived to reflect our Divisional characteristics during the DMA process.In the value chain analys

59、is step we identified individual value chains by DX,DS Divisions and their respective Business Units to comprehensively consider sector-specific ESG topics in issue pool composition and assessment.We also identified and performed surveys/interviews with Division specific employees,customers,and supp

60、liers while evaluating stakeholder groups.Derive Primary TopicsSamsung Electronics formed an issue pool of 115 issues,constructed from 92 sub-topics as suggested by the European Sustainability Reporting Standards(ESRS)and 23 additional,sector specific issues.Each issue was evaluated against four cri

61、teria(alignment with company strategy,alignment with global initiatives,key issues in the industry,and results of value chain analysis)to derive 52 issues,and 13 primary topics were selected to encompass these 52 issues based on the topic taxonomy of the ESRS.Materiality AssessmentClimate Change and

62、 EnergyPollutionWaterResource Circularity and WasteWorking Conditions-EmployeesEqual Treatment and Opportunities-EmployeesForced Labor-EmployeesSupply ChainInformation Security and ProtectionProduct Quality and SafetyAccessibilityBusiness ConductGovernancePrimary TopicsDouble Materiality Assessment

63、ProcessGather internal/external key stakeholder opinionsCombine IRO evaluation results and stakeholder inputsReport DMA results tocompany boardSelecting Material TopicsAnalyze internal/external environmentsUnderstand and analyze the value chain(Upstream/Own operations /Downstream)Derive primary topi

64、csUnderstanding the BusinessIdentify financial impactsClassify risks/opportunitiesIdentify environmental and social impactsClassify positive/negative and actual/potential impactsIdentifying IROsSet evaluation criteria and scales for material topic selectionAssess financial risks/opportunitiesAssess

65、environmental/social impactsEvaluating IROsSelection of ESG Topics Material to Samsung ElectronicsEnvironmental&Social Impacts1Financial Risks&Opportunities2 Materiality AssessmentCorporationExternalEnviron-ment09Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Ele

66、ctronics Sustainability Report 2024Step 2.Identifying IROsSamsung Electronics identified environmental/social impacts and financial risks/opportunities for the 13 primary ESG topics.We first prepared identification bases for primary topics including related regulations,media,Sustainability Website a

67、nd Report contents as well as requests from key stakeholders like our customers,investors,and rating agencies,then analyzed topic relevant Samsung Electronics business activities.Next we identified environmental/social impacts of relevant value chain business activities and classified each impact in

68、to positive/negative and actual/potential traits.Using the identification bases,we also identified and analyzed how topical external environments can financially impact us and classified each impact into risks and opportunities,analyzing the respective account subjects.Stakeholder Engagement-Based A

69、ssessmentStakeholder SurveysIn March 2024,we conducted an online survey for relevant internal/external stakeholders including Samsung Electronics employees,customers,partners,investors,NGOs,and international organizations.We distributed assessment guides and video materials to aid stakeholders in un

70、derstanding the survey.We also held separate briefing sessions for our employees to inform them in detail of survey purpose,participation method,evaluation scale,and result usage.Executive Management InterviewsIn March 2024,we conducted in-person and written interviews with DX/DS Division sustainabi

71、lity-related executives to obtain their views on ESG topics material to the company.EU Stakeholder ForumIn March 2024,we held a sustainability forum in Brussels,Belgium,titled Innovate&Empower:Samsungs Sustainability Journey for EU stakeholders.Key stakeholders including European government agencies

72、 such as EFRAG and DG GROW,international organizations such as the ILO,OECD,UNDP,UNEP,UNGC,and UN PRI,associations such as the RBA and WBCSD,and professional organizations discussed major challenges and opportunities for non-financial disclosure standards and regulations,climate action,resource circ

73、ularity,and labor rights in Europe.Samsung Electronics also identified areas for improvement through meetings with stakeholders,and plans to continue to strengthen communication with stakeholders in the future.Legal/Regulative IssuesExternally disclosed information(media,Sustainability Website,Susta

74、inability Report,etc.)Stakeholder requests (customers,investors,suppliers,rating agencies,etc.)Company activitys environmental and social impacts related to ESG topics Classified as positive/negative,actual/potentialID BasesEnviron-mental/Social Impacts External environmental impacts on company fina

75、nces related to ESG topics Classified as risks/opportunitiesFinancial Risks/Opportu-nitiesIdentifying IROsClassificationAssessment StandardScaleSize of impactsScopeGeographic/physical reach of impactsRemediability Time required to remediate negative impactsLikelihoodTime estimated for potential impa

76、cts to occurQuantitative sizeQuantitative size of risks/opportunities considering company sales,net worth,net income before tax,etc.Qualitative reachQualitative reach of risks/opportunities considering expected or realized time of executive managements strategy formation and decision makingLikelihoo

77、dTime expected for financial risks/opportunities to occurStep 3.Evaluating IROsSamsung Electronics designed evaluative scales for identified primary topics IROs referencing EU ESRS requirements and performed evaluations based on robust stakeholder participation.Env./Social ImpactsFinancial Risks/Opp

78、ortunitiesClimate Change and EnergyWaterResource Circularity and WasteWorking Conditions-EmployeesSupply ChainInformation Security and ProtectionProduct Quality and SafetyBusiness ConductFinal Material TopicsEnvironmentalSocialGovernanceQuantitative Results Combined qualitative and quantitative anal

79、yses results to select final material topics1)8 material topics selected(3 environmental,4 social,1 governance)Identifying IROsQualitative ResultsFinancial Risks/OpportunitiesEnv./Social Impacts1)Information security and protection,product quality and safety,business conducted selected as new materi

80、al topics compared to previous assessmentExecutive Management Interview ResultsStep4.Select Material TopicsSamsung Electronics selected eight material topics based on a combination of quantitative and qualitative analyses of the survey results,including:climate change and energy,water,resource circu

81、larity and waste,working conditions-employees,supply chain,information security and protection,product quality and safety,and business conduct.Due to sectoral differences between each Division,we further selected environmentally material issues by Division.The DX Divisions material environmental iss

82、ues included climate change and energy,water,resource circularity and waste,while the DS Divisions material environmental issues included climate change and energy,water,resource circularity and waste,and pollutants.After management review,selected material issues were reported to the Sustainability

83、 Committee under the Board of Directors.10Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024Material Topic ManagementSamsung Electronics identifies the impacts of selected material topics on the company,and reports on company ac

84、tivities to manage these topics.2024 Material TopicsUN SDGsGovernanceStrategyRisk Management(Policy)Activities(Major Progress)Climate Change and Energy Sustainability Committee under the Board of Directors oversees sustainability management(including environmental management)strategy and progress Su

85、stainability Council(chaired by CEO)and Environmental Management Task Force(consisting of relevant departments)and decide on current issues Invest over KRW 7 trillion in environmental management activities by 2030(including process gas reduction and water resource preservation)DX Division:net zero S

86、cope 1,2 emission by 2030 DS Division:net zero Scope 1,2 emission by 2050 Board of directors approved New Environmental Strategy Operate Environmental Management Task Force Reduce direct emissions,expand renewable energy,reduce external GHG emissionsWater DX Division:replenish 100%of water used glob

87、ally by 2030 DS Division:achieve zero increase in water intake relative to 2021 levels by 2030 Board of directors approved New Environmental Strategy Operate Environmental Management Task Force and Net Zero Committee Assess water resources risk assessment and establish response strategy by region Ex

88、pand scope of AWS1)certification for Korean manufacturing sites1)Alliance for Water StewardshipResource Circularity and Waste DX Division:apply recycled resin to all plastic parts by 2050 DS Division:achieve 99.9%waste recycling rate across all Korean manufacturing sites Board of directors approved

89、New Environmental Strategy Operate Environmental Management Task Force and Net Zero Committee Set up product waste retrieval system,attain Zero Waste-to-Landfill certifications at business sitesWorking Conditions-Employees Sustainability Committee under the Board of Directors,Sustainability Council

90、chaired by the CEO and Labor and Human Rights Council oversees and manages employee and supply chain labor and human rights at various levels Respect human rights based on management philosophy of“People First”,continue to pursue safe work environment,and create positive workplace culture Establish

91、various policies and standards including fundamental principles of human rights,grievance policy,environmental health and safety policy Operate employee communication and grievance channels and perform human rights due diligence Observe freedom of association and right to collective bargaining Analy

92、ze and improve living wage gap Operate manufacturing site safety management programs and employee health promotion programs Provide fringe benefits and work policies for work-life balanceSupply Chain Secure sustainable supply chain by assisting supplier labor and human rights,occupational health and

93、 safety,and talent development as well as business competitiveness Establish various policies and standards including supplier Code of Conduct,global purchasing Code of Conduct Provide supplier employee comm.channels,grievance channels,and operate integrated workplace environment management process

94、Perform force labor,child labor special audits Perform regular ESG audits,consulting and training for suppliers Operate Partner Collaboration AcademyInformation Security and Protection CPO(Chief Privacy Officer)and Information Protection Center head,acting as CISO(Chief Information Security Officer)

95、,perform control tower role and operate Privacy Protection Committee and Security Council Provide strategic direction through the Three Privacy Principles and Four Pillars of Cybersecurity Establish global privacy protection policy,operate Samsung privacy website Operate Privacy Legal Management Sys

96、tem(PLMS)and educate employees Operate security platform Samsung Knox and Samsung Knox Vault Semiconductor technology securityProduct Quality and Safety Global CS Center(Customer Satisfaction Center)and business unit organizations in charge of quality perform operations Announce Code of Conduct base

97、d on vision of top class pursuit of quality Operate quality assurance system and incident response process Secure product safety and improve product qualityBusiness Conduct Board of directors and affiliated committees provide oversight on compliance,Compliance Committee performs operations Establish

98、 and specify employee and business guidelines CPMS1)based risk management1)Compliance Program Management System Operate education and reporting programs,evaluate corruption riskSamsung Electronics Sustainability Report 202411Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopl

99、eWe dream of a better world,a better planet.PlanetDX Division12 Governance and Major Progress13 Climate Change15 Circular Economy17 Water&PollutionDS Division19 Governance and Major Progress20 Climate Change23 Water26 Waste28 Pollution12Our CompanyAppendixMateriality AssessmentFacts&Figures Principl

100、ePlanetPeopleSamsung Electronics Sustainability Report 2024GovernanceSamsung Electronics Sustainability Committee under the Board of Directors,as its highest governance body,recognizes the environmental field(encompassing issues like climate change and resource circularity)as a core management area

101、that directly connects to company business and financial progress.The Sustainability Committee under the Board approves the companys Environmental Strategy and targets,overseeing relevant major activities.In 2022,the Board resolved Samsung Electronics New Environmental Strategy,which encompasses mid

102、-to long-term climate change response and resource circularity goals.In 2023,Major Achievements of the 1st Anniversary of the New Environmental Strategy was reported to the Board.In the DX Division,the CEO has responsibility and authority over key issues such as establishing environmental strategies

103、,identifying implementation tasks,and implementing investments.The CEO presides over the companys Sustainability Council with Business Unit heads and operative department heads.In addition,the Environmental Management Task Force,a company-wide council composed of executives from environment-relevant

104、 departments,establishes environmental management plans and checks on implementation status.The Corporate Sustainability Center,Global EHS office,regional environmental organizations,and Business Unit sustainability offices are in charge of implementing action items/projects to respond to climate ch

105、ange.The DX Division started GHG emission reduction performance DX Division Governance BodiesReports to Board of Directors composed of independent directors,oversees sustainability strategy and progress at least once per quarterSustainability CommitteeDiscuss sustainability issues at least once per

106、quarter with executives of all relevant units and chaired by CEOSustainability CouncilReviews and updates corporate Environmental Strategy action items,discusses and makes decisions on current issuesEnvironmental Management Task ForceCarbon Disclosure CouncilEstablishes carbon emission calculation s

107、tandards and systemEco-Council Reviews progress on environmentally responsible productsEnvironmental Safety MeetingsOversees,manages GHG emission and reduction action itemsClimate Change Circular EconomyWater&PollutionGovernance and Major ProgressDX DivisionEnvironmental Management System Environmen

108、tal Risk Management Environmental Targets and Major Progress in 2023Environmental TargetsProgress in 2023 100%RE transition for DX business sites Replace all corporate vehicles in Korea with 100%zero-emission vehicles(EV,hydrogen)DX Division RE transition at 93.4%Applied ultra-power-saving technolog

109、ies to major models in seven product categories1),improved energy efficiency by 25%compared to 2019 Achieve net zero Scope 1,2 emissions for DX Division Improve power consumption of major models in seven product categories1)by 30%2)Net Zero Resource Circularity Water 20272030 Expand water replenishm

110、ent program(3 Korean sites,8 global sites at 4 countries)Obtain highest level certification(Platinum)from Alliance for Water Stewardship(AWS)for 3 Korean4)and 3 Vietnamese manufacturing sites Performed water replenishment pilot projects at 3 Korean locations Replenish 100%of water used globally for

111、DX Division20242030 Applied recycled resin to 25%of plastic product parts Operating e-waste recovery programs in approximately 70 countries globally Obtained Platinum Zero Waste-to-Landfill certification in 2 Korean,12 global manufacturing sites world-wide5)Obtain Underwriter Laboratories(UL)highest

112、 level certification(Platinum)for Zero Waste-to-Landfill at all our manufacturing sites Apply recycled resin to 50%of plastic parts used in our products3)Expand e-waste recovery to all global sales regions Cumulatively collect the industrys largest amount of e-waste at 10 million tonnes Apply recycl

113、ed resin to all plastic parts3)Cumulatively collect 25 million tonnes of e-waste2025205020301)Based on comparable specifications for 7 electronic products:smartphones,TV,refrigerators,washing machines,air conditioners,PCs,monitors 2)Compared to 2019 3)Pure recycled resin ratios differ by part 4)Cert

114、ified in January 2024 5)As of March 2024evaluations in its organizational reviews in 2021,and added items such as RE transition,energy-efficient product development,and waste recycling performance to organizational and executives performance reviews in 2023,expanding the list in 2024 to include wate

115、r resource management.We will continue to enhance incorporation of sustainability issues in our organizational and executives performance reviews.13Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024Climate Change Planet/DX Divis

116、ionStrategyThe DX Division plans to achieve net zero Scope 1,2 emissions by 2030 in line with the New Environmental Strategy announced in 2022.To this end,we are minimizing direct emissions through process energy efficiency improvement and expanding our use of renewable energy(RE).We are also pursui

117、ng various GHG emission mitigation activities in our business sites and across our entire value chain,including product logistics,sales,and use.Climate Change Strategy Risk ManagementThe DX Division identifies tangible financial or strategic impacts of climate change related risks,develops response

118、strategies based on each issues importance and impact on our business and incorporates said strategies into our decision making process.Risks include global climate frameworks,increased regional regulations,market change,stakeholder requests,and changes in the physical environment.For example,Korean

119、 manufacturing facilities in particular are performing our legal obligations for GHG emission management under the K-ETS(Korean Emission Trading Scheme).We anticipate that GHG emission reduction targets assigned to companies subject to K-ETS according to the Republic of Koreas Nationally Determined

120、Contribution(NDC)will continue to be strengthened.In the short term,we expect increases in investment due to increasing carbon prices,adopting energy efficient technology,and responding to extreme weather caused damages to be potential risks.We also expect easing of carbon pricing sensitivity due to

121、 securing external carbon credits and energy cost reduction due to deploying highly energy efficient technology to be potential opportunities.We also anticipate change in consumer spending patterns and preference for environmentally responsible products to be potential mid-term opportunities,while e

122、xpecting physical impacts like temperature rise and water resource depletion to be potential long term risks.Climate Change RisksOpportunities ActivitiesDirect GHG Emission ReductionThe DX Division prioritizes minimizing its own emissions through improving the energy efficiency of business sites,red

123、ucing energy use,and transitioning energy sources,while identifying and executing GHG reduction projects to offset emissions that cannot be reduced through our own reduction activities.We also continue to reduce energy use at our global manufacturing subsidiaries while setting energy use reduction t

124、argets relative to the previous year1).In 2023,we secured a total of 250,000 tonnes of carbon credits through agroforestry and mangrove projects in India and Indonesia.We are especially focusing on reduction projects that not only reduce GHG emissions but also improve the quality of life and income

125、levels of the local community such as cookstoves and agroforestry.We also plan to transition to 100%zero-emission vehicles(electric and hydrogen cars)in Korea by 2027.We plan to continue to implement GHG reduction projects to achieve our direct emission reduction and net zero targets.1)2024 target:e

126、nergy use reduction Direct GHG Emission Reduction Roadmap Reduce GHG emissions through means such as retrofitting facilities with high-efficiency equipment,and automation including application of Internet of Things to our systems Reduce energy use through facility heating and cooling operation optim

127、ization Cooperate with global institutes specializing in emission reduction Secure external carbon credits through forestation projects and mangrove projects Reduce business site energy use through means such as LNG use efficiency improvement Achieve net zero Scope 1,2 emissions2023 2024 2030Direct

128、Emission Reduction Activities Direct GHG Emission Reduction Energy reduction activities including energy efficiency equipment installment and manufacturing process optimization GHG reduction project implementation for remaining emission reduction Achieve zero net direct emission by 2030 Renewable En

129、ergy Expansion Joined RE100,a global initiative purusing RE transition,in 2022 Utilize diverse RE procurement options to economically and sustainably secure RE Transition to 100%RE by 2027 Value Chain Carbon Reduction Apply power-saving technology to major models for smartphones,TVs,refrigerators,wa

130、shing machines,air conditioners,PCs,and monitors Support supplier GHG emission calculation and reduction target setting(guidance development,training)Reduce value chain carbon emission from entire life cycle of a product,including in material procurement,manufacturing,transportation,usage,disposal,a

131、nd recycling14Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024Expansion of Renewable Energy UseThe DX Division has set a target of transitioning to 100%RE at all of our business sites by 2027 and is continuously expanding our

132、RE usage by utilizing procurement means available to the global market.We are also increasing the number of our Power Purchase Agreements(PPAs)in order to secure stable sources of RE and seeking to qualitatively and quantitatively improve our RE supply through such measures as installing solar power

133、 generation facilities on spare grounds in our business sites.Renewable Energy Transition Status by RegionU.S.Our U.S.subsidiaries have increased their renewable energy use by means like installing solar power generating facilities in company buildings and purchasing Renewable Energy Certificates(RE

134、Cs).As a result,our U.S.subsidiaries achieved 100%renewable energy transition in 2020.Europe Our European manufacturing sites have transitioned 100%of their electricity use to renewable energies by adopting the Green Pricing System and purchasing RECs.India Our Indian manufacturing sites completed t

135、he transition to 100%renewable energy in 2022 by signing PPAs with local solar,wind,and biomass power stations,purchasing RECs,and installing solar power generating facilities.Vietnam and China Our Vietnamese manufacturing sites transitioned to 100%renewable energy in 2022 by purchasing RECs,while o

136、ur Chinese manufacturing sites also transitioned to 100%renewable energy by adopting PPAs and purchasing RECs.We plan to expand the number of renewable energy PPAs for both countries.Central and South America Our Brazilian manufacturing sites completed the transition to 100%renewable energy in 2022.

137、Our Mexican manufacturing site expanded its share of renewable energy to 70%in 2023 from 4%in 2020 through power contracts including REC purchases.We are pursuing additional renewable energy PPAs and plan to achieve our transition target by 2025.Republic of Korea The DX Division completed the transi

138、tion to 100%renewable energy in 2022.Our Suwon manufacturing site has installed solar power generation facilities on site while our Gumi and Gwangju manufacturing sites has implemented in-situ renewable energy PPAs to supply themselves with solar powered electricity.Renewable Energy Transition Roadm

139、ap Declared plan to expand RE use(100%transition by 2020 in U.S.,European and Chinese business sites)Completed 100%transition in U.S.,European and Chinese business sites Completed transition to 100%RE at all DX Division business sites in Korea and manufacturing sites in Vietnam,India,and Brazil 100%

140、transition in Central and South America 100%transition for DX Division2018 2020 2022 20252027RE Transition Status by Key Regions Solving the climate crisis facing the world is a task that requires everyones participation,and we want to create a journey together with our suppliers.Samsung Electronics

141、 joined the CDP1)supply chain program in 2019.We established an operational system to promote GHG reduction in 2022 and are implementing substantive reduction activities.We developed a guide to help our suppliers calculate their GHG emissions and set reduction targets,as well as operating a step-by-

142、step support program for reduction activities.1)CDP:Environmental Disclosure Platform (formerly Carbon Disclosure Project)Responding to Climate Change with Our Suppliers DX Division RE Transition Rate(Usage,GWh)(as of 2023)93.4%20221)93.1%(2,856)20231)93.4%(2,720)202014.4%(470)202117.7%(556)Energy E

143、fficient Products Roadmap Energy efficiency of leading models of 7 major product categories1)improved by 25%compared to 2019 using high energy efficiency technologies Improve energy efficiency of leading models of seven major product categories1)by 30%compared to 20192023 2030 1)7 major models(2023)

144、:Refrigerators(RF85C9241AP),air conditioners(AR10DYEAAWK/ST),washing machines(WF25CB8795BK),TVs(KQ75QNC900FXKR),monitors(LS49AG950NKXKR),PCs(NP960XFG),smartphones(SM-S918)Value Chain Carbon ReductionThe DX Division is striving to reduce value chain carbon emissions from a product life cycle perspect

145、ive including material procurement,production,transportation,usage,disposal,and recycling as well as pursuing net zero Scope 1,2 emissions by 2030.In particular,we plan to decrease 2030 power use in major models for smartphones,TVs,refrigerators,washing machines,air conditioners,PCs,and monitors by

146、30%on average compared to 2019 models with equivalent performance and specifications.In 2023,we decreased the power use in our major models by 25%relative to comparable 2019 models.Carbon emissions reduction in the product use stage 1)2022 electricity usage:3,067 GWh,2023 electricity usage:2,914 GWh

147、15Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024Circular Economy Planet/DX DivisionStrategyThe DX Division aims to enhance the resource circularity of our entire product life cycle ranging from raw material procurement to pr

148、oduction,disposal,and recycling.We aim to develop the resource circularity process through producing electronics with recycled materials,collecting end-of-life and discarded products,recovering resources,and applying the recovered resources to new products.We work to extend our products lifecycles a

149、nd minimize our environmental impact.Risk ManagementThe DX Division manages resource circularity risks in 4 stages:risk recognition,assessment,treatment,and progress management.We recognize resource circularity related risks in waste treatment cost increase,treatment facility and technology limits,a

150、nd lack of consumer awareness,and resource circularity opportunities in waste reduction via recycling,including plastics,and new market opportunities from recycling technology development.Expand Use of Recycled and Recyclable Materials Developing innovative technology for recycling discarded fishing

151、 nets to address plastic debris Expand recycled and recyclable materials use Apply recycled resin to 50%/100%of DX Division purchased product plastic parts by 2030/2050Operate E-waste Collection System Operate e-Waste collection and recycling systems in approximately 70 countries to ensure that wast

152、e products are recycled into materials for new products Expand e-Waste collection system to approximately 180 countries by 2030 Cumulatively collect 10 million tonnes of e-Waste by 2030 and 25 million tonnes by 2050Achieve business site Zero Waste to Landfill Certification Set Zero Waste to Landfill

153、 policy to promote recycling Achieve Zero Waste to Landfill1)certification from global environment and safety certifier UL for all manufacturing sites Achieve highest level certification(Platinum)for all DX Division manufacturing sites by 20251)UL(Underwriters Laboratories)Zero Waste to Landfill Cer

154、tification:evaluates a companys resource circularity efforts and assigns four levels of certification based on the percentage of waste generated by a business that is diverted from landfills.Platinum 100%,Gold 95-99%,Silver 90-94%,Certified 80%or higher(decimals are rounded up,99.5%is rounded up to

155、100%)ActivitiesExpand Recycled and Recyclable Materials UseThe DX Division is striving to apply recycled and recyclable materials.We took note of plastic waste,considered the largest threat to marine environments,and developed innovative technologies to recycle discarded fishing nets.We are also con

156、tinually expanding our use of recycled and recyclable materials such as recycled aluminum and glass.Continual Expansion of Recycled Materials Samsung Electronics reduces environmental impacts by replacing plastics and vinyl used in several products packaging with recycled materials while reducing GH

157、G emissions in our product transportation through miniaturizing and lightweighting our packaging.The Galaxy S24 series launched in 2024 used 100%recycled paper in package boxes as well as for protection papers attached to product front and rear.Recycled and Recyclable Packaging Material Use Case by

158、Product CategoryVisual Displays/Digital Appliances Mobile AppliancesRecycled and Recyclable Materials Roadmap Ocean-bound plastic recycled and applied to DX Division manufactured products Circular Economy Lab established Applied recycled resin to 25%of plastic parts in products1)Apply recycled resin

159、 to 50%of plastic parts in products purchased by DX Division1)Establish recycling system for minerals extracted from all waste batteries collected by us Apply recycled resin to 100%of plastic parts in products purchased by DX Division1)2022 20232030 2050 1)Weight based.Recycled resin rates differ by

160、 partResource Circularity Risk Management Process1Identify potential risks from a life cycle perspective from product design to disposal3Develop,implement,and monitor responses to each risk2Prioritize identified risks4Manage progress on each risk,evaluate management efficiency and continually improv

161、e risk management effectWe enhance the durability,repairability,and upgradability of select products,support regular software upgrades,and operate the Samsung Care+program to minimize customers burdens with maintenance and repair,helping them use our products longer.16Our CompanyAppendixMateriality

162、AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024E-waste Collection SystemThe DX Division is operating various recycling programs for waste products regardless of brand in over 70 countries including the Republic of Korea.We consider national traits in opera

163、ting our e-waste recovery and recycling programs,either directly operating recycling centers or collaborating with recycling associations and companies.We have recovered a total of 6.297 million tonnes of e-waste from 2009 to 2023.We will expand our waste product recovery system to all countries wit

164、h product sales,or approximately 180 countries,and plan to recover a total of 10 million tonnes of e-Waste by 2030 and 25 million tonnes by 2050 from 2009.Extend Product LifecyclesWe research and apply ways to extend our product life cycles considering their impacts on the environment,given shorter

165、product life cycles increase resource usage and carbon emissions.In addition to enhancing our products durability and repairability and upgrading their software,we replace all used parts with 100%authentic Samsung parts through our Certified Re-Newed(CRN)program in the United States,England,and Fran

166、ce(as of March 2024).All CRN approved smartphones have new batteries installed.We extend our product lifecycles by collecting used smartphones and selling CRN approved smartphones via such trade-in programs.Research Recycling TechnologiesWe established the Circular Economy Lab in July 2022,which spe

167、cializes in research on material recycling process and technology,and the application of recycled materials to products to maximize resource circularity.Through the Lab,we have collaborated with various research institutions and corporations to research material recycling and waste-to-resource techn

168、ologies with the aim of ultimately manufacturing all of our products with recyclable materials.Obtain Business Site Zero Waste-to-Landfill CertificationDX is targeting Zero Waste-to-Landfill certifications for all of our manufacturing sites to recycle resources and reduce environmental impacts.Our m

169、anufacturing sites are recycling manufacturing process waste,previously sent to the landfill or incinerated,into cement raw materials and recycled fuel.We have maximized our recyclable waste sorting capabilities by establishing new waste sorting processes,and are recovering energies via heat and ste

170、am where materials that are not recyclable are incinerated.We raised our recycling rate through these means and plan to acquire the highest level of Platinum Zero Waste-to-Landfill certification at all manufacturing sites by 2025.Zero Waste-to-Landfill Status Reduce Company WasteIn order to minimize

171、 the use of disposables,the DX Division distributed reusable bags to all employees in Korea to minimize the use of single-use plastic bags and are using reusable cups and cutlery in Korean business site cafeterias and cafes.We also have installed approximately 480 food processors at our Suwon and Gw

172、angju business sites to sort food waste from general waste,converting them into fertilizer.We plan to strengthen these types of business site waste reduction activities and expand them to other sites.Company Waste Reduction E-waste Take-Back OperationRecycling Programs by CountryWaste Product Recove

173、ry System by RegionRequirements for Recycling Service Partners(Base year:2009,Units:10,000 tonnes)Amount of Collected e-waste Annual amount Cumulative amount55.92021509.959.92022569.859.92023629.7E-waste Collection and Recycling Roadmap Operate e-waste collection programs in approximately 70 countri

174、es Operate e-waste collection programs in approximately 180 countries and cumulatively1)collect 10 million tonnes of e-waste Cumulatively1)collect 25 million tonnes of e-waste 2023 2030 2050Business Site Zero Waste-to-Landfill Roadmap DX Division obtained first Platinum Zero-Waste-to-Landfill in our

175、 Slovakia site1)1)from global safety certifier UL(Underwriters Laboratories)DX Division received Platinum certification at 14 manufacturing sites Receive Platinum certification at all manufacturing sites2021 2023 2025 Activities to Extend Product LifecyclesIncrease DurabilityUpgradabilityConsider Re

176、parabilityProduct Repair ServicesKorea:Suwon,GwangjuGlobal2):(Chennai,Noida),Brazil(Campinas,Manaus),Poland,Egypt,Vietnam(Hanoi(2),Mexico(Tijuana),TurkiyeKorea:GumiGlobal2):Hungary,Vietnam(Ho Chi Minh),Thailand,Mexico(Queretaro),Indonesia,United States,MalaysiaPlatinum Certification1)Gold Certificat

177、ion1)1)As of March 20242)Global refers to all non-Korean regionsWaste ItemPreviousImprovedGlass panel with deposition for refrigeratorsLandfillReused into glass raw materialOpen cell panel for TVsLandfillReused into cement raw materialWaste batteryLandfillExtracted into valuable metalsCafeteria wast

178、e,landscaping byproductIncinerateManufactured into fertilizer and feedExpanded Business Site Recycled Waste List1)base year of 200917Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024Water&Pollution Planet/DX DivisionStrategyThe

179、 DX Division categorizes used water into sewage,wastewater,process water,and ultra-pure water to increase the reutilization rate of water used for manufacturing across approximately 20 global manufacturing sites.We calculate monthly reutilization rates by category to reduce the amount of water withd

180、rawn.Furthermore,water that is ultimately consumed and not returned to the local environment is restored through external water replenishment projects in an effort to preserve water resources.We also perform Responsible Business Alliance(RBA)assessments of our suppliers,reviews Water,Sanitation and

181、Hygiene(WASH)services,and provides consulting on water resource treatment facilities.Each manufacturing site also formed cooperative systems with local governments,NGOs,and local residents to protect and improve water resources in watersheds near our sites.Water Resource Management Mission and Visio

182、n We strive to minimize the impact of substances of concern that may enter our products,as well as chemicals used in the frontlines of manufacturing,on the health of our customers and employees.Our internal regulations are stringently managed according to global standards,including the Restriction o

183、f Hazardous Substances(RoHS)Risk ManagementWe perform annual analysis on whether a business site is located in a water stress or water risk region,detailing potential water resource risks.We apply internationally recognized water resource management tools like the World Resource Institutes(WRI)Aqued

184、uct Water Risk Atlas1)to identify water stress or risk regions,then establish and execute response strategies per water resource risk based on the Carbon Disclosure Project(CDP)Water Guidance.1)Aqueduct Water Risk Atlas standard:Regions evaluated as High(3)based on metrics including water resource q

185、uantitative and qualitative data,regulation and reputation riskKey water resource risk response strategies include preparing for droughts by installing and operating water storage tanks and reuse facilities to operate manufacturing facilities,preparing for floods through annually renewing disaster i

186、nsurances,and preparing emergency response systems and performing regular response drills.We also are managing our effluent standards to legal levels as well as rigorous internal levels and performing various activities raise employee awareness of the importance of water,such as partaking in Water D

187、ay events.Water Risk Assessment Water Resources Risk Analysis and Countermeasure Strategies Water UnitSitesWithdrawalReleaseTotal1,000 Tonnes2517,270 13,042Water Risk Regions1,000 Tonnes91)2,4501,493DX Division Business Site Water Risk Status(as of 2023)1)Number of water risk sites by country:India(

188、2),Mexico(2),Poland(1),Egypt(1),China(1),Thailand(1),United States(1)Systemic Water Resource Management Reduce and recycle water used in manufacturing process through detailed water resource management at global manufacturing sites Obtain Alliance for Water Stewardship water management certification

189、sRestore Water Resources Preserve water resources through water replenishment projects for all manufacturing sites Restore 100%of globally used water for DX Division by 2030Product and Manufacturing Process Substances of Concern(SoC)Management Comply with regulations and strengthen management of SoC

190、s in products and business site chemical substance regulation complianceDirect and the Registration,Evaluation,Authorization,and Restriction of Chemicals(REACH)Regulation of the EU and the Toxic Substances Control Act(TSCA)of the U.S.EU REACH Declaration The DX Division,based on the Standards for Co

191、ntrol of Substances Used in Products,performs risk assessments for all business site work processes and facilities handling substances of concern whenever new facilities are installed,personnel or process deployed,or work order and conditions changed.We analyze risks upon confirmation based on its o

192、ccurrence possibility,causal factors,and control measures and predict its potential impacts based on possible accident scenariosActivitiesSystemic Water Resource ManagementThe DX Division seeks to decrease water withdrawal and increase water reuse at all business sites by means like installing water

193、 saving facilities,treating wastewater,and expanding graywater reuse.We are also pursuing various water use reduction activities including using groundwater and rainwater for landscaping and everyday purposes.Water reduction1,553 thousand tonnesWithdrawal reduced by 8%relative to 2022 levelsWater re

194、use3,470 thousand tonnesReuse rate increased by 3%relative to 2022 levelsWater Resource Management Process 18Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024Product and Manufacturing Process Hazardous Substance ManagementThe D

195、X Division encourages our suppliers to actively engage in environmental management activities through Eco-Partner Certifications managing hazardous substances in the supply chain.Suppliers submit product environmental assurance reports that guarantee data and hazardous substance information from the

196、ir raw material providers.Samsung Electronics evaluates and certifies companies compliance to Standards for the Control of Substances Used in Products and only works with certified suppliers.Control of Substances Used in Products As chemical substance regulations are strengthened world-wide and nati

197、onal regulatory subjects and standards become diversified,more professional chemical substance management is necessary.Samsung Electronics regularly updates chemical substance regulation database for 16 countries with manufacturing sites including China,Vietnam,and India,while minimizing risk by app

198、lying our own standards and through integrative management.We are also enhancing our chemical substances management history process and system to readily identify whether internally regulated substances are contained in any chemical products that our employees intend to use,and testing for such chem

199、icals.To secure chemical substance use safety,we manage all chemicals-related activities from procurement to disposal via our system.Chemical Substance Management Process Manufacturing Process Used Regulated Substance Pollutant Discharge Minimization and Incident PreparednessIn order to minimize air

200、 and water pollutant discharge that occurs during the product manufacturing process,we are applying both legal and rigorous internal standards for discharge and each manufacturing site analyzes atmospheric discharge outlets and effluent analysis more often than is legally required.We secure an addit

201、ional capacity of more than 10%in our air and water pollutant prevention facilities at all times so as to prepare in advance for sudden pollutant inflow increases,and doubly install key preventive facilities so that even in emergency incidents such as facility breakdown preventive facility operation

202、s are not hindered.We are also prepared to immediately lock down pollutant discharge through the installment of blocking facilities such as automated floodgates and valves and surveillance facilities such as meters and CCTVs at rainwater final discharge locations in accordance to the specific traits

203、 of treated substances and external watersheds.Voluntary Local Community AgreementsThe DX Divisions business sites entered voluntary agreements with local environmental agencies in Korea so as to ensure air quality control and prevent negative air quality impacts on the local populations health,incl

204、uding those of our employees.The Suwon site entered into a voluntary agreement to reduce seasonal particulate matter with the Korean Ministry of Environments Metropolitan Air Quality Management Office and is voluntarily reducing key particulate matter substance use by over 10%of legal requirements d

205、uring high concentration particulate matter seasons(December March).The Gwangju site signed a voluntary agreement to reduce air pollutants with the Youngsan River Watershed Office of the Environment to reduce annually emitted pollutants to less than 95%of legally allowed limits until 2024.The DX Div

206、isions Suwon,Gumi,and Gwangju business sites obtained the highest level of Platinum certification from the Alliance for Water Stewardship(AWS)in February 20241).We consider this a testament to the superiority of our water resources management system and plan to expand certifications to global locati

207、ons like Vietnams in 2024.1)AWS is a global membership collaboration for water management jointly founded by the UNGC(UN Global Compact),CDP(Carbon Disclosure Project),and other international organizations.AWS certifies a companys water resource management system into three levels of Platinum,Gold,a

208、nd Core based on a total of 100 evaluative items like the companys water management stability water contaminant management water quality and hygiene impact on aquatic ecosystem in nearby watersheds,and governance structure.Water Replenishment ProjectsWater usage is a necessary part of a products man

209、ufacturing process and while used water is treated and returned to the natural environment,some water is inevitably consumed in the process.The DX Division established a goal to return as much water as is consumed in its 100%water restoration by 2030 target.We minimize our environmental impact by re

210、turning utilizable water resources to stakeholders and local communities through such water replenishment projects.For example,we signed a Memorandum of Understanding(MOU)with the Korean Rural Community Corporation to support agricultural water reuse in island communities facing water shortages.In 2

211、024,we will identify and develop replenishment projects not only in Korea but around the world where we have manufacturing sites to contribute to preserving water resources.Status of Water Restoration in DX Division AWS Certifications Water Resources Replenishment Roadmap Sign MOU with the Korean Ru

212、ral Community Corporation,run 3 pilot projects for water resources replenishment in Korea Expand replenishment projects to 3 Korean sites and across 8 business sites in 4 countries globally*Develop additional replenishment projects globally*(11 countries,12 business sites)Restore 100%of globally use

213、d water for DX Division2023 2024 2030DX Division Water Resource Flow Chart(2023)(unit:1,000 tonnes)ProductionProcessDischarged into riverReuse3,470Discharged into sewage treatment plantDX DivisionSource of SupplyOff-site treatment facilities10,600On-site treatment facilities2,442Surface Water16,485G

214、roundwater78619Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024Climate ChangeWater WastePollutionDS DivisionGovernanceThe Sustainability Committee under the Board of Directors,as our overarching decision-making body,oversees e

215、nvironmental issues at large including climate change and water resources,which are key areas of management directly connected to our companys business and financial success.The Sustainability Committee approves corporate environmental management strategies/targets,oversees key relevant activities,a

216、nd makes key decisions.In the DS Division,the ESG Management Council(CEO-presiding)reviews strategies,targets,and progress for our environmental management.DS Division Sustainability Management Meetings chaired by the Corporate Management Office head makes decisions on detailed strategies,and the Ne

217、t Zero Committee chaired by the FAB Engineering&Operations Head sustainably pursues its environmental strategy.Working committees in the carbon,pollutants,waste,and water reuse fields develop action items and review progress based on this decision-making process.The DS Division has assigned items su

218、ch as GHG emission reduction,renewable energy transition,and electricity use reduction as core categories in evaluating the performance of executives and organizations,depending on the responsibilities(including for the Chief Safety Officer as the officer overseeing our manufacturing).We will contin

219、ue connecting environmental progress results with rewards to reinforce our environmental management system.Governance and Major ProgressEnvironmental Targets and Major Progress in 2023 Environmental TargetsProgress in 2023 Develop innovative technology to improve process gas treatment efficiency Imp

220、rove energy efficiency of FAB facilities through cooperation with facility companies Expanded installment of process gas treatment facilities(RCS)Reduced fuel usage of boilers through expansion in waste heat recovery Expand renewable energy such as signing new solar power PPAs Achieve Net Zero(Scope

221、 1,2)for DS DivisionNet ZeroWater ResourcesWastePollutants20302050 Obtain highest grade in Zero-Waste-to-Landfill(Platinum)certification for all manufacturing sites Zero detection rate in sections where workers are directly exposed to chemicals Maintained high level Zero-Waste-to-Landfill certificat

222、ions1)1)7 Platinum,1 Gold Achieved Korean manufacturing site waste recycling rate of 98.4%Developed high efficiency air,water pollutant treatment facilities and processes that dont use pollutants Managed chemical substances exposure at levels 10%lower than legally required Achieve 99.9%waste recycli

223、ng rate for DS Division Korean manufacturing sites Treat DS Division manufacturing site air,water pollutants to natural levels Develop new technology to treat pollutants to natural levels20252030 Developed ecological status maps for areas influenced by DS Division sites(Giheung,Hwaseong)Obtained fir

224、st AWS Platinum certification in Korea in March(Hwaseong)Expand ecological status map development for areas influenced by DS Division business sites Expanded sites with AWS1)Platinum certification(Giheung,Hwaseong,Pyeongtaek,Xian)1)Alliance for Water Stewardship Reduce DS Division water withdrawal a

225、t Korean business sites to 2021 levels through means such as reuse of effluent water from public wastewater treatment plants2024203020302040DS Division Environmental Management Governance BodiesReuse Expansion CommitteeEnvironmental Preservation CommitteeCarbon Reduction CommitteeReports to Board of

226、 Directors composed of independent directors,oversees sustainability strategy/progress at least once per quarterSustainability CommitteeDiscuss sustainability issues at least once per quarter with executives of all relevant units and chaired by head of DivisionESG Management CouncilEngineering&Opera

227、tions Head presiding,discusses carbon relevant issues every other monthNet Zero CommitteeCorporate Management Office head presiding,discusses ESG issues at least once per quarterDS Sustainability Management MeetingsWaterPollutants,WasteClimate Change20Our CompanyAppendixMateriality AssessmentFacts&F

228、igures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024StrategyThe DS Division announced net zero Scope 1,2 emissions by 2050 in the New Environmental Strategy in 2022.We are strengthening our carbon reduction activities through various projects including GHG treatment and energy

229、efficiency improvement technology implementation and cooperation with government and industrial bodies.Risk ManagementThe DS division identifies regulation risks and opportunities by country related to climate change and integrates them into our company risk management system.Risks and opportunities

230、 include global regulations and market trend change by region that can impact our business and reputation.Identified risks and opportunities are reported to management through relevant environmental governing bodies.Climate-Related Financial Risks and Opportunities AssessmentWe conducted a pilot ass

231、essment of future financial impacts using 2021 as a base year to respond to shifts in the industry paradigm due to climate change.Because understanding climate related risks and opportunities is important for creating new businesses and entering future markets,we identified physical and transition r

232、isk factors from climate change and analyzed their financial impacts.The DS Division identified heat waves,storms,and coastal erosion as key physical risks.We installed rain screens at our manufacturing sites,and accounted for the highest level of wind speed recorded-capable of significantly impacti

233、ng semiconductor production facilities-when establishing wind resistance standards during facility construction.The DS Division will consider such key issues when selecting new business sites and expanding production lines.We identified cost increases due to GHG emission increases to be a key transi

234、tion risk,thus we are continuously investing in reducing emissions including installing additional RCS1),or process gas treatment facilities.1)Regenerative Catalytic SystemClimate Change Planet/DS DivisionClimate Change Risk Management Process Integrate climate change related regulation risk by coun

235、try into company risk management system Risks include global regulations and market trend change that can impact company business and reputationClimate Change Risk AssessmentPhysical Risk:assessed impacts on corporate value due to 3 of 10 identified major climate related disasters(heat wave,storm,co

236、astal erosion)based on RCP1 8.5(greater than 4 increase)Transition Risk:estimated impacts on corporate value of GHG emissions(Scope 1,2,3)at large focusing on low carbon transition under NGFS2)scenarios of the REMIND3)model based on SSP4)1)Representative Concentration Pathway 2)Network for Greening

237、the Financial System 3)Regional Model of Investment Shared Socioeconomic Pathways 4)Shared Socioeconomic PathwaysClimate Change Risk Cost increase due to GHG emission increase(Scope 1,2,3)Transition Risk Heat wave,extreme cold,storms,coastal erosions,etc.Damage-related costs from 10 extreme climate

238、and natural disastersPhysical RiskClimate Change Risk and Opportunities ActivitiesEnvironmental risks and opportunities affect not only products and services but also manufacturing processes,supply chains,R&D,and other business activities.The DS Division monitors risks from global operations accordi

239、ng to risk management processes and manuals in environmental safety,climate change and energy,and compliance.We have established and disclosed our environmental safety policies.Direct GHG Emission ReductionThe DS Divisions direct carbon emissions(Scope 1)are mainly due to the use of process gas duri

240、ng the semiconductor manufacturing process and use of fuels such as LNG.By 2030,the DS Division plans to develop innovative technologies that will significantly improve the efficiency of process gas treatment and expand carbon emission reduction facilities on production lines.In addition,to reduce t

241、he use of LNG boilers,we will expand the utilization of waste heat and consider introducing electric heat sources.We also plan to convert 100%of Korean business vehicles to zero-emission vehicles(electric and hydrogen vehicles)by 2027.GHG Emission Reduction Roadmap Operate bimonthly Net Zero Committ

242、ee and Carbon Reduction Committee to establish and execute DS Division GHG reduction action items Expand process gas treatment facility(RCS)installation Reduce LNG boiler usage through expansion of waste heat recovery Develop/apply high efficiency RCS catalyst Expand the utilization of waste heat re

243、covery system Develop innovative technologies for improving process gas treatment efficiency Improve energy efficiency of FAB facilities through cooperation with facility companies Achieve net zero Scope 1,2 emissions for DS Division2023 2024 2030 205021Our CompanyAppendixMateriality AssessmentFacts

244、&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024Process Gas Emissions ReductionThe DS division is reducing direct GHG emissions by increasing process gas treatment efficiency,reducing gas usage,developing alternative gases,and continuously expanding investment in RCS faci

245、lities.Fuel Use ReductionThe DS Division recovers and recycles waste heat generated during business operations to reduce the amount of fuel(LNG)used within business sites.We maximized recovery of waste heat generated from facility cooling water/wastewater effluents at our Giheung,Hwaseong,and Pyeong

246、taek plants to use as a heat source for process water and air conditioning systems.This has the effect of reducing GHG emissions by reducing the amount of LNG used as a conventional heat source.The DS Division plans to develop technologies to improve waste heat recovery rates and introduce/expand fa

247、cilities that can replace LNG-based heat sources to minimize direct GHG emissions at its sites.Expand Renewable Energy UseWhile the DS Division has a large electricity demand due to its industrial nature,Korean renewable energy supply conditions are relatively unfavorable compared to major countries

248、 overseas.We nevertheless plan to transition our global power use to renewable energy by 2050.Additionally in the United States and China,where we already achieved our renewable energy targets,we will expand our power purchase agreements(PPAs)focusing on regions with existing renewable energy suppli

249、es.1 Process Gas Treatment Expand installations of large-scale process gas treatment systems(RCS)Develop and apply new catalysts,increase process gas treatment efficiency(up to 97%)2 Reduce Process Gas Usage Optimize process time,steps,and Clean Recipe to minimize the usage of process gas3 Develop a

250、lternative gases Develop alternative process gases with low global warming potential and replace PFCs in some product processes(Developed G1 gas,an alternative to C4F8)Renewable Energy Status by Key RegionU.S.In November 2019,we signed a PPA for 75MW of wind power with Apple,eBay,and Sprint to sourc

251、e renewable energy for U.S.Austin sites.Based on such efforts,the U.S.subsidiary achieved the transition to 100%renewable energy in 2020.The U.S.subsidiary also received the Green Power Leadership Awards for Excellence in Green Power Use from the U.S.EPA(Environmental Protection Agency)in September

252、2019.China Our China operations have converted 100%of their electricity to renewable energy in 2020.We will gradually diversify our portfolio in accordance to local renewable energy-related schemes and market conditions.Korea The DS Division signed a PPA with SK E&S in Nov.2023 and with Samsung C&T

253、in Mar.2024 to supply approximately 76.2 GWh of renewable energy annually from a 60 MW solar power plant for 20 years for a total of 1,466 GWh1)of renewable energy,starting in 2025.So far,we have installed a total of 2.8 MW of solar power generation facilities and generated 2.8GWh of energy in 2023

254、for on-site use.We also installed 1,372 RT2)worth of geothermal heating and cooling facilities at our Korean business sites,including 1.5 MW at the Giheung site and 0.7 MW at the Pyeongtaek site.We will continue to expand both PPAs and facilities utilizing renewable energy.1)accounting for reduction

255、 in guaranteed supply due to solar panel degradation2)Ton of RefrigerationFuel Use Reduction ActivitiesLNG Use Reduction Maximized waste heat recovery using cooling water/wastewater effluents Evaluated facilities that can replace LNG-based heat sourcesThe RCS Treatment Process13245Pre-treatment scru

256、bber:treats high concentration acidic gasRCS facility:uses catalysts to decompose PCFs(perfluorocarbons)at low temperaturesPost-treatment scrubber:HF(hydrogen fluoride)treatmentPrimary acid scrubber:primary treatment of acidic gas using cleaning facilitiesSecondary acid scrubber:secondary treatment

257、of acidic gas to minimize atmospheric pollutantsDS Division GHG Emission Reduction Project Progress in 2023 Process Gas Treatment Facility Operation Renewable Energy Use Process Efficiency Improvement&Alternative Gas Use 56%36%8%(Unit:tCO2e)10,059 1,000tCO2eLarge Scale Integrated Process Gas Treatme

258、nt Facility(RCS)The DS Division developed and is using the semiconductor industrys first and only large-scale integrated process gas treatment facility,known as RCS.RCS collectively treats process gas at site rooftops using catalysts by leveraging the feature that all facility outlets are connected

259、to rooftops.Compared to existing individual treatment facilities,the DS Divisions RCS can treat gas at a lower temperature,reducing fuel use and generating fewer air pollutants such as nitrogen oxides.We continue to reduce our direct emissions by installing new RCS facilities on lines that can be in

260、stalled,16 process gas treatment facilities(RCS)were built in 4 production line buildings in 2023.1)Regenerative Catalytics System1)22Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024Value Chain Carbon ReductionSince 2009,the D

261、S Division showcased low-power memory solutions every year.We are also strengthening our technical capabilities to increase product energy efficiency,reducing carbon emissions in product use phase through the development of innovative ultra-low power technologies.We are obtaining various environment

262、al certifications through key product carbon footprint and carbon reduction factor calculations.In particular,we plan to secure ultra-low-power technologies that will enable us to significantly reduce the power consumption of memory used in data centers and mobile devices in 2025.Scaling down of sem

263、iconductors and advances in low-power design technology will not only contribute to reducing GHG emissions by reducing the power used by various IT products and data centers but will also allow us to develop products with the same performance using fewer raw materials.Semiconductor Product Life Cycl

264、e Assessment(LCA)ProcessThe DS Division has established a Life Cycle Assessment(LCA)process to identify environmental impacts and calculate the carbon footprint of semiconductor products throughout their entire life cycle.We also completed third-party verification of the LCA process in accordance wi

265、th ISO 14040,14044,and 14067 international standards to ensure the reliability of the data generated through the process.Based on this experience,the DS division has built its own automated carbon footprint calculation system,which calculates the emissions of final products based on the emissions of

266、 each unit of the semiconductor production process to reflect product characteristics such as miniaturization.In the long term,we will strive to minimize our environmental footprint by establishing a comprehensive management system to evaluate not only carbon emissions but also the overall environme

267、ntal impact,including on water and other resources.LCA Third Party Verification Statement Strengthen Other Indirect Emissions(Scope 3)Management and Identify Reduction Action ItemsThe DS Division has been operating a company internal committee since 2022 to strengthen our Scope 3 management and redu

268、ction.In 2022,we enhanced our Scope 3 calculation methodology by category and completed third party verifications.We will continue to enhance our calculation methodology for more accurate emission calculations.Calculated Scope 3 emissions are disclosed through channels like the Sustainability Report

269、 and Carbon Disclosure Project(CDP)reports.Also,we continue to identify various reduction action items in our supply chain,resource circularity,logistics,and other subjects to establish mid-to long-term reduction targets and have implemented pilot projects for hydrogen vehicles in our Pyeongtaek sit

270、es employee transit buses.System SemiconductorsReduce power use and develop high-performance semiconductors Mobile processor Exynos 2400:Installed deca-core CPU1)and hexa-core GPU2)to reduce power usage on mobile devices,improved CPU performance by 70%compared to previous generation products Image S

271、ensor:Develop leading micropixel technology to maximize resolution and minimize required energy for HDR3)movement through design optimization1)Central Processing Unit 2)Graphics Processing Unit 3)High Dynamic RangeMemory SemiconductorsReduce global data center power use Develop data center specific

272、high-performance SSDs1)and improve energy efficiency over previous generation products-PM9D3a:approximately 60%more energy efficient than PM9A3Develop next generation low-power DRAM Minimize power consumption and improved performance over the previous generation with such new technologies as EUV2),H

273、KMG3),TSV4),and DVFS5)-LPDDR5X:Achieved 20%reduction in power consumption compared to the LPDDR4X-LPCAMM2:Achieved 60%less power consumption compared to the SODIMM1)Solid State Drives 2)Extreme Ultra Violet 3)High-K Metal Gate 4)Through Silicon Via 5)Dynamic Voltage and Frequency ScalingReduce Elect

274、ricity UseThe DS Division is optimizing our improvements to the semiconductor manufacturing process to minimize the increase in GHG emissions by reducing power use through shortening facility test times,improving operating temperature conditions for auxiliary facilities,and applying high-efficiency

275、equipment.We also aim to increase power efficiency by replacing and supplementing facilities and optimizing operations.Electricity Use Reduction Activities Shorten facility test times Improve auxiliary facility operating temperature conditions Develop energy saving technologies for facility power Ap

276、ply Sleep Mode to production equipment Use energy saving technologies such as energy efficient chillersReduce electricity use in semiconductor manufacturing process23Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024StrategyAs S

277、amsung Electronics expands semiconductor lines in Korea,the amount of industrial water required for DS Division manufacturing sites in 2030 is expected to continue to grow from 2021 levels.In response,we have set a 2030 water intake reduction target aimed at reducing water consumption to 2021 levels

278、 and are striving to achieve this goal through various efforts,such as building wastewater reuse systems and signing agreements to reuse our treated sewage effluents.The DS Division will continue to work on minimizing our water resources impacts of Korean and global manufacturing sites.Risk Manageme

279、ntThe DS Division has established an ESG risk management system to identify ESG risks including for water resources.Key management risks based on monitoring and risk assessment are reported to executive management and ultimately applied to DS Division sustainability strategies.Water Planet/DS Divisi

280、onSiteWater Stress LevelKorea(Giheung/Hwaseong/Pyeongtaek/Cheonan/Onyang)Medium-HighChina(Xian/Suzhou)Extremely highChina(Tienjin)Medium-HighUnited States(Austin/Taylor)Medium-HighReduce Water Use Optimize manufacturing process to reduce manufacturing use water Stop water supplies to non-active faci

281、lities Manage facility water use time Improve processes for facility operationsEcological Preservation Secure stream flows by release cleanly treated water Contribute to improving water quality and enhancing biodiversityExpand Water ReuseEstablish Water Reuse System Maximize industrial water reuse r

282、ate through wastewater effluent reuse system and invest in new technology development Apply technology for wastewater by concentration levels Reuse concentrated wastewater generated during ultra-pure water production Develop membrane-based water reuse technologiesUtilize External Wastewater Expand w

283、ater supply through agreements to expand wastewater reuseWater Risks and Opportunities and Response StrategiesThe DS Division applied the WRI Aqueduct Water Risk Atlas,an internationally recognized water resources management framework and tool,to identify water resource risks1).We identified 4 risks

284、 factors and 1 opportunity factor and establish response strategies by region accordingly.1)Aqueduct Water Risk Atlas standard:Regions evaluated as High(3)based on metrics including water resource quantitative and qualitative data,regulation and reputation riskWater Risks and Response StrategiesDrou

285、ghts,Water Outage Diversify water sources:establishment of emergency supply system capable of providing water from water suppliers;alignment with criteria set by water suppliers when evaluating water risks Calculate expected drought damage costsIncreases in South Korean Water Stress Index Annually r

286、eview business site water stress/risk levels,detail risks and prepare response strategies accordinglyWater Resource Depletion,Pollution Participate in activities commemorating World Water Day to raise awareness of the importance of water Engage with local communities including joint activities for w

287、ater risk prevention and river and marine ecosystem conservation with public,civic,and academic organizations in proximity to our business sitesWater Regulations Observe local environmental policies and regulations Maintain management standards at legal levels as well as rigorous internal levelsWate

288、r Opportunities and Response StrategiesSecure comparative competitiveness through value chain water resources management support Annually monitor water use savings,share water use savings knowhow,and seek partner company cooperation through value chain water footprint management24Our CompanyAppendix

289、Materiality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024Water Resource Regulation Risk and Opportunity ManagementThe DS Division is actively responding to regional regulation changes including such laws like the Water Environment Conservation Act,the Pr

290、omotion of and Support for Water Reuse Act1),the Water Supply and Waterworks Installation Act,and the Sewage Act in Korea.According to health and safety protocols we continue to modify our health and safety incident management policies and manage water resource outflow at both legal and rigorous int

291、ernal standards.We deliver our opinions on policies to regulation agencies via communication channels such as relevant associations and indirectly participate in water related policy and regulation improvement.Our Giheung,Hwaseong,Pyeongtake,Onyang sites have earned the Green Company status under Ar

292、ticle 16-2 of the Environmental Technology and Environmental Industry Support Act,as assigned by the Ministry of Environment to applicable companies in accordance with the Acts Enforcement Decree.Green Company designation is dependent on meeting all qualifications including environmental assessments

293、,pollutant management status,environmental improvement planning,and demonstration of compliance with environmental laws.In addition,the DS Division has also performed environmental management activities in setting management standards at legal and rigorous internal levels and was designated Green Co

294、mpany status in recognition of such activities.1)Promotion of and Support for Water Reuse ActActivitiesExpand Water ReuseThe DS Division is reducing our newly withdrawn water by maximizing our process water reuse.DS Division required water withdrawals are forecast to continue growing by 2030 relativ

295、e to 2021 levels,but we will maximize our water reuse to reduce withdrawal to 2021 levels.Water Use ReductionThe DS Divisions manufacturing sites reduced our water use through operation optimization,changing wastewater treatment methods and process control values.We will maximize water reuse through

296、 systemic enhancements including for the production process or reuse systems and for our low concentration wastewater reuse.We also plan to reuse public wastewater treatment plants effluents.Water Reuse(units:thousand tonnes)202120222023113,108119,421Water Resources Management Roadmap Develop ecolog

297、ical status map for areas within DS Division site influence(Giheung,Hwaseong)March obtain AWS Platinum certification,a Korean first(Hwaseong)Expand ecological status map for DS Division(Pyeongtaek,Cheonan,Onyang)Expand AWS Platinum certified sites(Giheung Hwaseong,Pyeongtaek,Xian)Net zero water with

298、drawal increase for DS Division Korean sites compared to 2021 levels by means such as wastewater treatment plant effluent reuse2023 2024 2030 Water Resource Management ProcessThe DS Division,to increase our manufacturing process water reuse rate,classify our water resources into sewage,wastewater,pr

299、ocess water,and ultra-pure water and manage them by entering reuse rates per category per site in our environment management system on a monthly basis.We prevent contamination with site-installed groundwater contamination prevention facilities and safely treat effluents via on-and off-site treatment

300、 facilities.We apply legal and rigorous internal management standards when directly releasing effluents to stream via on-site treatment facilities.Acquiring Alliance for Water Stewardship(AWS)CertificationThe DS Divisions Hwaseong site obtained the highest level of Platinum certification from the Al

301、liance for Water Stewardship in March of 2023.We have since expanded our Platinum certification status to our GiheungHwaseong and Pyeongtaek sites in January of 2024 and to our Xian,China site in February of 2024.Samsung Electronics plans to expand AWS certifications to our key global sites.AWS Cert

302、ification Progress DS Division Water Resource Flow Chart1)(2023)(unit:thousand tonnes)Discharged into river 58,153Surface Water160,090Reuse119,421Discharged into sewage treatment plantGroundwater0DS DivisionSource of SupplyOff-site treatment facilities71,8001)Based on global manufacturing site annua

303、l cumulative usageDS Division Annual Reduction of Water UseTotal Water ReuseDaily reduction activities Optimize site operations Replace aged facilities Improve operation standardsSystemic improvements Enhance manufacturing process Process optimization:reduce ultra-pure water usage Establish reuse sy

304、stem1)approximate 2)Amount relative to water use under business as usual conditions such as not performing water saving projects119,4211)thousand tonnes12,7101)thousand tonnes2)1)approximateOn-site treatment facilities63,942Manufacturing Process89,97725Our CompanyAppendixMateriality AssessmentFacts&

305、Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024Woncheon-ri Stream-Hwangguji Stream,Hwaseong 8 families and 21 species of fish(dominated by freshwater minnows,crucian carp,common carp,and goby minnows)37 families and 57 species of benthos(high proportion of aquatic insects

306、)1,369 counts of 34 bird species(Class II endangered wildlife bean goose spotted)9 species of mammals(class I endangered wildlife Eurasian otter and class II endangered wildlife leopard cat spotted in Huangguji Stream)Water flea acute toxicity test shows no ecotoxicity impact to streams from effluen

307、tsOsan Stream,Giheung 12 families and 26 species of fish(dominated by crucian carp,common carp,bass,and freshwater minnows)37 families and 55 species of benthos(high proportion of aquatic insects)8,861 counts of 90 bird species(8 class II endangered wildlife including the common spoonbill,eagle,hawk

308、,bean goose,and long-billed plover spotted)5 species of mammals(class I endangered wildlife Eurasian otter,class II endangered wildlife leopard cat spotted)Otter gene survey1)confirmed existence of at least 4 Eurasian otters(3 male,1 female)Water flea acute toxicity test shows no ecotoxicity impact

309、to streams from effluents1)Survey process:Collection of otter feces Amplify mitochondrial DNA Sequence analysis using genetic markersSeojeong-ri Stream Jinwi Stream,Pyeongtaek 5 families and 15 species of fish(dominated by freshwater minnows,crucian carp)23 families and 32 species of benthos(high pe

310、rcentage of aquatic insects)Water flea acute toxicity test shows no ecotoxicity impact to streams from effluentsGokgyo Stream,Onyang-Cheonan 8 families and 23 species of fish(dominated by freshwater minnows,goby minnows,and stone moroko)34 families and 45 species of benthos(high percentage of aquati

311、c insects)684 counts of 34 bird species(Class II endangered wildlife long-billed plover,kestrels spotted)9 species of mammals(class I endangered wildlife Eurasian otter,class II endangered wildlife leopard cat spotted)Jiaohe Stream,China 8 families and 21 species of fish(common carp,crucian carp,etc

312、.)53 families and 92 species of benthos(high percentage of arthropods)Ecotoxic luminescent bacteria composite toxicity test SOS/UMU genotoxicity testing shows no stream impacts from effluentsBiodiversity Recovery and Conservation effortsOsan stream near the Giheung site is fed with a daily average o

313、f 45,000 tonnes of purified effluents from our site,and the stream ecosystem has been restored to the point where otters(Class I endangered wildlife,Korean Natural Monument)now inhibit the area.In 2023,we conducted the first analysis using genes in otter feces and confirmed that at least four otters

314、(three males and one female)live along Osan stream and discovered traces of various mammals such as leopard cats,raccoon dogs,and water deer.We also conducted removal of wildlife that disturbed the ecosystem,and our employees in cooperation with local residents planted native riverside plants and cl

315、eaned up the stream.The Hwaseong site has featured a natural area of approximately 290,000 m2 including the Donghak Mountain conservation forest(46,000 m2 of natural forest)within the site.In accordance with the Korean Environmental Impact Assessment Act,the site preserved a percentage of the natura

316、l area in consultation with the project approval agency and created ecological ponds,landscape ponds,and recreational forests.In addition,our Onyang and Cheonan site has been working with public-private partnerships since 2006 to install sand collectors,remove ecosystem disturbances,and collect ocea

317、n waste at least biannually to preserve the ecology and landscape of the Sohwang Sand Dune1)in Boryeong,Chungcheongnam-do,South Korea.The entirety of the Dune is well preserved and designated as an ecological and landscape conservation area and a coastal landscape reserve(Ministry of Environment,Min

318、istry of Oceans and Fisheries),and is home to endangered wildlife such as the Mongolia racerunner(Eremias argus)and Swinhoes egret(Egretta eulophotes).1)Sohwang-ri Coastal Sand Dune,the only unspoiled coastal dune in Korea(2 km of coastline and an area of about 120,000 m2),home to 391 species of flo

319、ra and fauna,including many endangered wildlife.Ecological conservationIn order to secure the ecological health of discharging rivers and preserve their biodiversity,Samsung Electronics DS Division has been conducting river monitoring and conservation activities since 2007 at Osan Stream,which activ

320、ity has now been expanded to all worksites.Furthermore,we are in the process of establishing an ecological status map of areas under DS influence,which analyzes and evaluates the current status and impacts on the natural and ecological systems around the business sites in various ways,starting with

321、the Giheung and Hwaseong sites in 2023.Stream Ecosystem ManagementKorean sites regularly measure water quality indicators such as biological oxygen demand(BOD),total phosphorus(T-P),pH in discharge rivers,and biological indicators such as fishes,benthos,birds,and mammals in order to manage and monit

322、or their impact on the ecosystem.Based on these monitoring results,we carry out activities to improve and preserve the natural environment and biodiversity.Freshwater Ecosystem Monitoring and ImprovementIn order to protect the ecosystem and biodiversity of rivers near our sites,we regularly monitor

323、the status of aquatic ecosystems(fishes,benthos,vegetation,etc.),terrestrial ecosystems(mammals,birds,etc.),water quality,vegetation,and biological habitats to identify impacts on the ecosystem in accordance with the Guidelines of the National Institute of Environmental Research.1)National Institute

324、 of Environmental Research Notification 2024-1,enacted on Jan.1,2024Wildlife near Osan Stream Wastewater OutletEurasian Otter Leopard cat Water deer 26Our CompanyAppendixMateriality AssessmentFacts&Figures PrinciplePlanetPeopleSamsung Electronics Sustainability Report 2024StrategyThe DS Division is

325、actively working towards achieving a recycling rate of 99.9%by 2030 through various activities such as recycling waste,developing recycling technologies,and minimizing the use of disposable products.Collectively,our goal is to attain the Platinum Zero Waste to Landfill Certifications1)at all manufac

326、turing sites by 2025.1)Zero Waste to Landfill Certification:Assesses a companys resource diversion initiatives and assigns a four-tier rating according to the percentage of waste produced by the business that is diverted away from landfills.Waste Planet/DS DivisionDevelop Waste Recycling Technologie

327、s Create technologies to recycle different types of waste,including wastewater sludge Utilize cleanroom supplies like dust-free suits and wipes constructed from recycled clear PET bottles Convert waste wafers into raw materials such as recycled aluminum alloy Rematerialize organic waste liquids thro

328、ugh purificationAchieve Zero Waste to Landfill Certification Obtained Platinum Zero Waste to Landfill Certifications at 7 DS manufacturing sites and Gold Certification at 1 DS manufacturing siteRisk ManagementThe DS Division has implemented an ESG risk management process to identify significant wast

329、e-related risks stemming from our materiality assessment.Adhering to ISO 14001,ISO 50001,and other environmental management system standards,the EHS Center,DS Sustainability Management Office,and other pertinent departments evaluate risks on an ongoing basis.Key environmental concerns are then repor

330、ted to management and incorporated into the DS Divisions sustainability management strategy,inclusive of risk management and identification of opportunities within relevant councils.ActivitiesDeveloping waste recycling technologiesWastewater Sludge RecyclingThe DS Division routinely analyzes the com

331、position of wastewater sludge,which makes up over 50%of the waste generated at DS manufacturing sites,aiming to utilize sludge as a resource.By leveraging our analysis of wastewater sludge that can be monitored through our in-house system,we have identified and broadened the scope of reclaimed waste

332、water.We extract copper from wastewater sludge and recycle it.Additionally,we employ various methods to decrease the amount of sludge produced,such as reducing the water content of sludge and modifying the chemicals utilized in wastewater treatment plants.Risk Management Process3 Integrate into ente

333、rprise risk management processes Designating significant environmental issues as topics for periodic internal reporting;implementing investment,procurement,and operational plans while reporting on critical milestones.2 Manage risks and opportunities Monitoring risks and opportunities pertaining to GHG emissions,waste,renewable energy usage,water resources,pollutants,and more Discussing matters at