Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Value
• Intellectual Value
• Human Value
• Social Value

Environmental Achievements

• Reduced paper consumption by 10K sheets (2019 vs 2018)
• Reduced city gas consumption (2019 vs 2018)
• Reduced landfill waste to 3 tons in 2019
• Invested in 119MW renewable energy portfolio in France

Social Achievements

• Increased retail client deposit assets by 14% year-on-year to KRW 183 trillion in 2019
• Strengthened competitiveness in the foreign investment market, with income from overseas trade commissions growing by 35% and deposit assets by 50% year-on-year
• Launched a mobile consumer protection square and reorganized UI to increase consumer accessibility and convenience
• Provided customized financial education to vulnerable groups
• Provided 223,716 young adults with free financial education
• Implemented various programs to improve work-life balance (family-friendly programs, travel support for single employees, employee well-being program)
• Improved employee satisfaction to 73.5% in 2019

Governance Achievements

• Established a stable and efficient governance system
• Published the Annual Governance and Remuneration Report
• Established a selection process for directors with at least half being independent non-executive directors
• Organized six sub-committees under the board (Management, Audit, Nomination, Risk Management, Compensation, and Internal Trading)
• Implemented a specialized risk cost system
• Adopted a code of ethics and management principles prioritizing client trust and compliance
• Conducted annual employee training on compliance and ethical practices
• Implemented its own anti-money laundering system
• Established a systematic process to respond to incidents and disasters

Climate Goals & Targets

Environmental Challenges

• Low growth and low interest rates in Korea leading investors to explore alternative investments
• Regulatory risks of changes in laws or regulations due to ESG risk awareness
• Risk of business process change due to unpredictable social and environmental issues
• Risk of personal information breaches

Mitigation Strategies

• Strengthened assessment capabilities by hiring talented individuals for investment evaluation
• Strengthened business trends monitoring of customers and competitors and corresponding financial markets
• Established a response strategy for each scenario according to changes in the situation
• Strengthened internal capabilities for developing products and investments that incorporate digital technology
• Established IT risk management system
• Conduct onsite inspection on personal data management
• Inspect data protection operation
• Audit information system security
• Conduct security audit for subsidiaries
• Operate abnormality detection system
• Verify use of fingerprints

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, IIRC framework, AA1000AS (2008)

Certifications: ISMS-P

Third-party Assurance: Korea Foundation for Quality (KFQ)

UN Sustainable Development Goals

• Goal 4
• Goal 7
• Goal 8
• Goal 9
• Goal 10

Samsung Securities aligns its sustainability practice with these SDGs to promote balanced and integrated growth.

Sustainable Products & Innovation

• ESG products (KRW 22.1 billion)
• Responsible investment funds
• Products related to renewable energy and carbon emissions reduction

Awards & Recognition

• 2019 DJSI World member for the 10th consecutive year
• Ranked 1st in 2019 NCSI
• Ranked 1st for the 21st consecutive year in K-PBI, designated as a Golden Brand
• Ranked in the Top 50 for the 6th consecutive year in Best Korea Brand

Environmental Metrics

ESG Focus Areas

• Green Management
• Responsible Management
• Transparent Management

Environmental Achievements

• Acquired ISO 14001 certification
• Introduced electric vehicles for business purposes
• Achieved zero LTIFR in 2021
• Issued ESG-rating Certification Bonds for the first time in the industry

Social Achievements

• Achieved Grade A in the MSCI ESG evaluation and Grade A in the KCGS ESG Evaluation
• Ranked 1st in client satisfaction surveys (NCSI, KCSI, KS-SQI)
• Maintained the No.1 place in KS-SQI for two consecutive years
• Maintained the No.1 title in KCSI for 16 consecutive years
• Launched ‘Investment School’ for novice investors
• Expanded inclusive employment opportunities for the disabled and veterans
• Achieved ‘Good’ rating on consumer protection evaluated by Financial Supervisory Services

Governance Achievements

• Established the ESG Committee under the BOD
• Established ESG Research Institute
• Achieved an A grade from MSCI ESG evaluation
• Achieved a B+ grade in the governance sector evaluation awarded by the KCGS
• Introduced an electronic voting system

Climate Goals & Targets

Environmental Challenges

• Intensifying competition in the digital-based financial service sector
• Diversification of clients’ needs
• Entry of IT-specialized FinTechs
• Economic downturn due to interest rate spikes and real estate restriction policies
• High volatility in the investment market due to rising interest rates and inflation
• Growing demand for IT system innovation and non-face-to-face consulting service for wealth management
• Climate crisis
• Carbon neutrality
• Complexity of financial products
• Growing demand for ESG factors in investment decisions

Mitigation Strategies

• Sharpened asset management service competitiveness
• Focused on the wealth management market for the super-rich class and retirement market
• Launched digital management services
• Expanded fee-based assets
• Strengthened capabilities in the IB sector
• Careful risk management
• Continuously researched and discovered new investment areas
• Developed and supplied a variety of new products
• Established company-wide ESG strategies
• Established a system to implement detailed tasks to achieve specific goals
• Expanded eco-friendly investments
• Reduced carbon emissions
• Strengthened customer-oriented management systems
• Strengthened transparency and diversity in governance
• Strengthened ethical management
• Built green infrastructures
• Increased eco-friendly investments
• Reinforced global initiatives related to the environment
• Established ESG investment process
• Established responsible investment process
• Suspended additional investment in the coal mining business
• Issued ‘ESG-rating Certification Bonds’
• Established ESG Research Institute
• Strategic partnership with MSCI
• Implemented a comprehensive consumer protection system
• Upgraded Fraud Detection System (FDS)
• Introduced a system to detect external complaints

Supply Chain Management

Responsible Procurement

• ESG investment guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Frequent natural disasters
• Sea level rise
• Abnormal high temperatures

Transition Risks

• Current and new policy and legal risks
• Technology risk
• Market risk
• Reputation risk

Opportunities

• Growing consumers’ demand for ESG funds
• Expansion of eco-friendly investment product lineups

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISMS-P

Third-party Assurance: Korea Management Registrar (KMR)

UN Sustainable Development Goals

• Goal 4
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 16

Samsung Securities has reflected the principles of the UN SDGs throughout its business model

Sustainable Products & Innovation

• ESG funds
• Green bonds

Awards & Recognition

• Communication Main Award in 2021 iF Design Awards