Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Digital Responsibility
• Supply Chain ESG Management
• Talent attraction and development
• Information Security
• Compliance and business ethics
• Respect for human rights and diversity
• Create a quality organizational culture
• Manage health and safety
• Expand renewable energy usage

Environmental Achievements

• Reduced GHG emissions by 21,443 tons
• Achieved Platinum grade Green Data Center Certification for Chuncheon Data Center
• Acquired Uptime Institute's M&O Stamp for Sangam Data Center (first in South Korea)
• Reduced GHG emissions in Suwon, Sangam, and Chuncheon Data Centers through various efficiency measures (total 855 tCO2eq)
• Increased renewable energy consumption to 306 MWh

Social Achievements

• Increased proportion of female employees to 30.6% and female managers to 24.2%
• Exceeded the mandatory employment rate for the disabled (3.62%)
• Achieved a customer satisfaction score of 94
• Maintained Best Family Friendly Management Certification for 11 years
• Provided various employee wellbeing initiatives including Mental Fitness Center, parental leave, and flexible working hours
• Supported various youth education programs (Samsung Junior SW Academy, Samsung Youth SW Academy, Blue Elephant, Hope Stepping Stones, Samsung Dream Class) benefiting over 357,811 persons

Governance Achievements

• Established ESG Committee under the Board of Directors
• Obtained ISO/IEC 5230:2020 certification (first domestic IT service company)
• Obtained ISMS-P certification for Information Security and Personal Information Protection Management System
• Maintained a Grade A in MSCI ESG Risk Rating
• Received Low Risk in Sustainalytics ESG Risk Ratings
• Achieved a comprehensive A-grade rating in KCGS for sustainable management
• Zero anti-corruption/fair trade violations

Climate Goals & Targets

Environmental Challenges

• Climate change risks (transition risks, physical risks)
• Supply chain disruptions
• Data security risks
• Cyberbullying among youth
• ESG management of suppliers

Mitigation Strategies

• Developed climate change response strategies aligned with TCFD guidelines, including scenario analysis and risk mitigation plans
• Established a supply chain ESG management system, including Code of Conduct, self-inspections, on-site inspections, and third-party inspections
• Implemented a Zero Trust security system
• Launched Blue Elephant project to prevent cyberbullying
• Provided ESG training and consulting services to suppliers

Supply Chain Management

Supplier Audits: 264 companies participated in self-inspection, 66 companies in on-site inspection, key suppliers underwent third-party inspections

Responsible Procurement

• Code of Conduct
• ESG applied contracts
• Sustainable procurement guidelines
• Incentive programs for excellent ESG suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Fluvial flooding
• Extreme temperature
• Drought

Transition Risks

• Carbon price increase
• Regulatory changes
• Market shifts towards carbon neutrality

Opportunities

• Development of energy-efficient products and services
• Expansion of low-carbon logistics services
• Participation in carbon credit trading market

Reporting Standards

Frameworks Used: GRI Standards, UN SDGs, TCFD, SASB

Certifications: ISO 14001, ISO 45001, ISO/IEC 5230:2020, ISMS-P

Third-party Assurance: BSI Group Korea

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 16
• Goal 17

Samsung SDS' initiatives contribute to these goals through various environmental, social, and governance programs

Sustainable Products & Innovation

• Eco-friendly cloud services
• Low-carbon logistics products and services
• ESG solutions for customers

Awards & Recognition

• 2023 Asia-Pacific Climate Leader (Financial Times)
• Honorable Company for Shared Growth (Korean Commissions for Corporate Partnership)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion (DEI)
• Corporate Governance
• Supply Chain ESG
• Digital Responsibility

Environmental Achievements

• Obtained ISO 14001 and ISO 50001 certifications for environmental and energy management systems.
• Improved energy efficiency by more than 10% at Suwon DC by adopting high-efficiency UPS equipment.
• Reduced GHG emissions by approximately 5,484 tCO2eq through various initiatives at data centers.
• Installed EV charging facilities at business sites.
• Produced approximately 1,215 MWh of renewable energy in 2023.

Social Achievements

• Established the DEI Secretariat to strengthen DEI initiatives.
• Exceeded the mandatory employment rate for the disabled (3.59% vs. 3.1%).
• Maintained Best Family-friendly Management certification for 11 years.
• Operated SSAFY, a software training program with an 85% employment rate.
• Implemented various employee wellbeing initiatives, including a mental fitness center.

Governance Achievements

• Introduced the Senior Independent Director system.
• Changed the composition of the Independent Director Recommendation Committee to all independent directors.
• Expanded the scope of proxy solicitation.
• Reviewed and made preparations to meet requirements for external compliance certification.
• Added an ‘Information Security’ page to the company website.

Climate Goals & Targets

Environmental Challenges

• Increasing GHG emissions due to business growth.
• Supply chain ESG risks.
• Ethical challenges associated with AI technologies.
• Physical risks to assets from climate change (extreme temperatures, flooding).

Mitigation Strategies

• Investing in high-efficiency equipment and immersion cooling at data centers.
• Transitioning to renewable energy.
• Implementing a supply chain ESG management system.
• Establishing an AI governance system.
• Conducting risk assessments and implementing mitigation measures for physical climate risks.

Supply Chain Management

Supplier Audits: 75 companies on-site inspections, 20 companies third-party assurance

Responsible Procurement

• Supplier’s ESG Code of Conduct
• ESG evaluations (self-evaluations, on-site inspections, third-party assurance)

Climate-Related Risks & Opportunities

Physical Risks

• Fluvial flooding
• Severe drought
• Wildfires
• Extreme temperatures

Transition Risks

• Stricter GHG emission disclosure mandates
• Rise in carbon prices
• Increased client demands for carbon neutrality
• Increased energy costs
• Rise in logistics costs
• Decline in consumer preference

Opportunities

• Energy efficiency at data centers
• Transport efficiency through digital logistics platform
• Leveraging policy incentives for renewable energy
• Development of eco-friendly cloud services
• Increased demand for IT services to reduce energy consumption

Reporting Standards

Frameworks Used: GRI Standards Core Options, UN Sustainable Development Goals (SDGs), SASB, IFRS, ESRS

Certifications: ISO 14001, ISO 50001, ISO 45001, ISMS-P, ISO/IEC 5230:2020

Third-party Assurance: BSI Group Korea (AA1000AS v3, Type 2)

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Eco-friendly cloud products and services
• Low-carbon logistics products and services
• Brity Automation

Awards & Recognition

• Financial Times Asia-Pacific Climate Leaders 2023
• Newsweek 2023 World’s Most Trustworthy Companies
• K-Green Foundation 2023 Korea’s ESG Company of the Year