Suppliers

Supply Chain ESG

Supply Chain ESG Roadmap

With the goal of building a sustainable supply chain ESG ecosystem, Samsung SDS is establishing a supply chain ESG management system
and continuously striving to comply with global ESG laws and standards and fulfill our social responsibilities.

  • Building the ESG management system
  • Enhancing the ESG management system
  • Enhancing the ESG management system

Sustainable Procurement Policy

To build a sustainable supply chain, the Company formulates and adheres to a 'Sustainable Procurement Policy' in accordance with
the principles of the United Nations Business and Human Rights (UNGPs), ILO (the International Labor Organization) Core Conventions,
and the guidelines for multinational corporations, including the OECD's supply chain.

Based on this policy, the company manages the supply chain and promotes practical and long-term shared growth with partner companies.
This policy consists of Objective, Scope and application, Sustainable Supply Chain Management, Management of Climate Change Response,
Labor Rights, Support for strengthening ESG capabilities, Allocation of Responsibility, and Policy Review.

Read more Sustainable Procurement Policy

Sustainable Supply Chain
ESG management system

  • Establishment of standards (Code of Conduct/guidelines/checklists)
  • Operation of management system
  • Follow-up management (Third-party inspection and remediation/fulfillment management consulting)
SAMSUNG SDS
  • 1. Sharing the Code of Conduct/Guidelines
  • 2. On-site Inspections/Identification of Improvement Items
  • 3. Education and consulting
Conclusion of ESG Application Contract
  • 1. Submission of supplier code of conduct
  • 2. Self-assessment based on a checklist
  • 3. Follow up on improvements
Suppliers

ESG Evaluation Process for Supply Chain

Samsung SDS carries out a systematic and comprehensive ESG evaluation of our suppliers through a cycle of planning,execution,
assessment, and improvement planning, along with continuous monitoring.

This ensures that every facet of the business operation, from supplier selection to collaboration, is conducted in line with ESG principles.

  • 01. Announcing assessment criteria
  • 02. Conducting ESG assessment (self)
  • 03. Conduct on-site inspection
  • 04. Third-Party Inspections
  • 05. Managing Implementation of Improvements
  • 06. Addition and subtraction point given for participating ESG
  • 07. Announcing the result

Supplier Code of Conduct

SAMSUNGSDS Suppliers
  • Labor & Human Rights
  • Safety & Environment
  • Ethics
  • Management System

* To see more details, click on each component

Labor & Human Rights
  • Suppliers must uphold the human rights of workers, and treat them with dignity and respect as understood by the international community. This applies to all workers including temporary, migrant, student, dispatch workers, and any other type of worker. Workers must be legally entitled to work in the country in which they work, and must be granted the protections and rights granted to legal workers in that country.

    Main Inspection Items: Freely Chosen Employment, Working Hours, Wages and Benefits, Supply Chain Diversity
Safety & Environment
  • Suppliers recognize that activities that ensure the safety of workers is essential in all activities that take place in the course of business. Suppliers shall strive to build and maintain a safe and healthy workplace according to the local laws and regulations. Also, the Supplier shall recognize its potential to impact the environment and protect natural resources for the next generation, and use its best efforts to reduce its environmental impact.

    Main Inspection Items: Emergency Preparedness, Pollution Prevention, Occupational Safety, Hazardous Substances, Health and Safety Communication, Green purchasing
Ethics
  • Suppliers are to adhere to all local laws and regulations in its business activities. Samsung SDS requires Suppliers to uphold the highest standards of ethics.

    Main Inspection Items: Business Integrity, Intellectual Property, Protection of Identity, Information Security
Management System
  • The Supplier shall establish a management system in order to comply with not only the Code but also applicable laws, regulations and requirements of Samsung SDS or its clients, that integrates human rights and labor, health & safety, environment and ethics issues into the business decision making process. Such system shall include clear objectives and goals, regular measurement and performance evaluations, as well as continuous improvement actions.

    Main Inspection Items: Company Commitment, Corrective Action Process, Supply Chain Responsibilities

Reinforcement of Supplier ESG Competencies

Samsung SDS plans, develops, and operates various programs to enhance the ESG management capabilities of
our suppliers and manage ESG risks.

Table containing the contents of ESG capacity building of suppliers related to supply chain ESG education
Targets Category Content
All suppliers Education through ESG experts
  • ESG trends and best practices, sustainable procurement, Samsung SDS Code of Conduct, and customized guidelines
All suppliers ESG Inspection results and implementation guidelines for improvement
  • Selection of key improvement items from performance evaluations (self-inspections/on-site inspections) and production of implementation guides to support suppliers' ESG management
  • ESG Q&A and voice listening sessions
Major suppliers Consultations with ESG experts
  • Support in establishing and implementing improvement plans for ESG material issues(environment, labor rights, social responsibility, etc.)