Mon. Feb 26th, 2024

META: Samsung Biologics, a leading CDMO, shares highlights of its ESG report covering company-wide efforts in the environmental, social, and governance space.

Contract development and manufacturing organization (CDMO) Samsung Biologics has released its 2023 environmental, social, and governance report. It’s the company’s third annual ESG report, publicizing ongoing strides toward sustainability objectives and strategies.

In a statement about the report, John Rim, president and CEO of Samsung Biologics, explained that “Samsung Biologics is fully committed to engaging in sustainable business practices for the positive impact it has on our clients, society, and the wider community. We will continue to leverage our expertise and experience to accelerate the delivery of net-zero health care and engage with our suppliers and partners to amplify our collective efforts.”

Shortly prior to the announcement of the ESG report’s release, Samsung Biologics signed its two largest contracts since its establishment in 2012. The first was a $897704 million deal with Pfizer,, part of a more extensive extended partnership agreement worth $897 million. and tThe second was with Novartis for $391 million. 

What’s in the ESG Report

The ESG report outlines Samsung Biologics’ plans to achieve net-zero emissions by 2050 or earlier. This includes a projected 32% reduction in direct emissions by 2030 and a 62% total reduction by 2040. The CDMO is also targeting a 36% reduction in its suppliers’ emissions by 2030 and 73% by 2040. Committed to the RE100 initiative, Samsung Biologics has also pledged to transition to using 100% renewable power.

The report emphasizes Samsung Biologics’ role in the Sustainable Markets Initiative, noting that it received the SMI’s Terra Carta Seal in 2022 for its commitment to creating sustainable markets in the biopharmaceuticals sector. Samsung Biologics is also working with its suppliers and partners within the SMI’s Health Systems Task Force’s Supply Chains Working Group to identify carbon reduction strategies for a net-zero supply chain. It’s the lone CDMO representative on the task force. 

In addition, Samsung Biologics has joined the United Nations Global Compact to reaffirm its commitment to sustainable business practices, human rights, labor standards, environmental care, and anti-corruption.

Risk management practices and transparent corporate governance are another central focus of the ESG report. It outlines how Samsung Biologics has implemented an enterprise-wide risk management system and established an ESG committee to maintain sustainable operations and oversee ESG-related tasks’ governance, reporting, and policies. Additionally, it notes that Samsung Biologics recently obtained an ISO37001 certification for anti-bribery management systems.

Finally, the report highlights Samsung Biologics’ commitment to “nurturing global talents.” It contributes to local organizations through volunteer programs and hosted representatives from the World Health Organization’s human resource training hub to offer biologics development and manufacturing courses in 2022.

“Samsung Biologics is engaged in this work because we want to leave the world better than we found it,” Rim added. “2022 was a foundational year for us, and we are steadfast in our commitment to drive substantial progress and make a more meaningful impact in 2023 and beyond.”

Broader Context 

The release of the ESG report comes at a time of significant industry growth, as more and more companies are turning to outside manufacturers to produce biologics. As its business grows, Samsung Biologics is paying close attention to its environmental footprint. The goal is to grow the company in line with broader industry growth but to do so in a sustainable manner. 

To accommodate increasing demand, the CDMO continues to construct new facilities and add capacity. Plant 4 became fully operational in June. At 240,000 liters of capacity, it’s the largest facility of its kind in the world. Plant 5 is set to begin construction in 2023 and is expected to be completed by 2025. Samsung Biologics has been careful to point out that these new facilities have been designed with sustainability in mind, utilizing renewable energy sources and maximizing the efficiency of processes to minimize the carbon footprint of such large-scale manufacturing. 

This environmentally conscious strategy is a financially sound approach as well, according to Samsung Biologics chief financial officer Dong Joong Kim.

“More and more factors in the surrounding environment, such as due diligence on the supply chain and mandatory ESG disclosure, require the company to act. ESG is no longer just a strategy or initiative but the competitiveness of the company itself,” said Kim in an introductory statement featured in the ESG report.

“Accordingly, we aim to carry out the ESG strategies that we have established to sharpen our competitive edge. ESG risks, including global regulations, are becoming financial risks instead of nonfinancial risks. It is time that we needed a substantive target achievement strategy and implementation measures.” 

This is a sentiment Rim has echoed for years. Now in his thirdfifth year as CEO, Rim initiated the annual ESG reporting process and has highlighted the need for more sustainable strategies throughout the industry.

“Besides adopting new technologies, the pharma industry is also responsible to incorporate ESG measures into its processes,” said Rim in a recent Newsweek article, adding that “4% to 5% of the total global carbon output results from the health care industry.”

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *