Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethics & Compliance
• Environment & Safety
• Employees & Workplace
• Supply Chain
• Local Community

Environmental Achievements

• Reduced GHG emission intensity by 16.9 tCO2e/KRW in billions (20% reduction goal from 2012 levels)
• Reduced waste intensity by 44.2 tons/KRW in billions (30% reduction goal from 2012 levels)
• Achieved 55.6% waste recycling rate
• Reduced GHG emissions by 1 million tons annually through new technologies in Hwaseong

Social Achievements

• Employed approximately 2,500 local workers in the Petronas Terengganu Gas Terminal Project (Malaysia)
• Employed 85% local workers in the Chile Kelar CCPP Project
• Improved safety culture score by 11.5 points (from 54.4 to 65.9)
• Launched "I AM SAFETY" program
• Increased use of parental leave
• Provided various training programs for employees and suppliers (200,003 total training hours)

Governance Achievements

• Amended Articles of Incorporation to increase flexibility and strengthen director responsibility
• Established an organization dedicated to risk management
• Introduced CUBE ERP system for systematic financial monitoring
• Established an independent organization to support compliance management
• Implemented Compliance Control Standards and guidelines

Climate Goals & Targets

Environmental Challenges

• Contractual risks in projects
• Financial risks from domestic and overseas marketing activities
• Taxation risks associated with overseas projects
• Climate change impacts (increased demand for brownfield projects)
• GHG emissions in logistics

Mitigation Strategies

• Established an organization dedicated to preemptive risk management
• Introduced CUBE ERP system
• Deployed finance and tax employees to overseas offices
• Developed and applied eco-friendly construction methods (Eco-Rib Form PSRC, PTW)
• Thorough schedule management and improvement of load efficiency per shipping

Supply Chain Management

Supplier Audits: 53 project sites audited in 2016

Responsible Procurement

• Business Guidelines
• Supplier Code of Conduct
• S-Partner certification

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Brownfield projects (renovating decrepit facilities), GHG reduction plants

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Certifications: ISO 14001:2015, OHSAS 18001, KOSHA 18001

Third-party Assurance: Korea Productivity Center

UN Sustainable Development Goals

• Goal 1 – No Poverty
• Goal 2 – Zero Hunger
• Goal 3 – Good Health and Well-Being
• Goal 4 – Quality Education
• Goal 5 – Gender Equality
• Goal 6 – Clean Water and Sanitation
• Goal 8 – Decent Work and Economic Growth
• Goal 9 – Industry, Innovation and Infrastructure
• Goal 10 – Reduced Inequalities
• Goal 12 – Responsible Consumption and Production
• Goal 13 – Climate Action
• Goal 15 – Life on Land

Various initiatives such as Hope Libraries, Eco-generation programs, Water of Life program, and local community engagement contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• MEED Quality Awards
• Saudi Aramco Quality Excellence Certificates
• Ministry of Labor (China) Outstanding Construction Site Award
• International SOS Duty Care Awards
• Ministry of Employment and Labor (Korea) Occupational Safety Awards
• Ministry of Public Safety and Security (Korea) Korea Safety Award
• Construction Safety Manager Committee (Korea) Prevention of Construction Incidents Award
• CDP Korea Awards
• 12th Construction Environment Management Contest Awards
• Fair Trade Commission Commendation
• Samsung Social Contribution Award

Environmental Metrics

ESG Focus Areas

• Ethics & Compliance
• Safety & Environment
• Employees & Workplace
• Supply Chain
• Local Community

Environmental Achievements

• Reduced GHG emissions intensity by 20% from 2012 levels.
• Reduced waste intensity by 30% from 2012 levels.
• Increased recycling rate of wastes to 67.5%.

Social Achievements

• Maintained 75% Iraqi workers in the ENI Zubair Oil Field Development GOSP Project to address local job shortages.
• Established a technical training center in Iraq, training 30 electricians and instrument workers and 19 piping welders.
• Achieved zero incidents at the PTT Wangnoi Compressor Station Project.

Governance Achievements

• Established Samsung Engineering Code of Conduct and Supplier Code of Conduct.
• Implemented a compliance management system with regular inspections and training.
• Operated a whistleblowing system to address unethical practices.

Climate Goals & Targets

Environmental Challenges

• Global trend of low growth and uncertainty.
• Fierce competition for new orders and pressure for cost reduction.
• Increasing demands for localization from clients.
• Global risks such as extreme weather events and climate change.
• Labor shortages in some regions.

Mitigation Strategies

• Systematic risk management using Risk Register.
• Process innovation and strengthening key capabilities.
• Expanding local outsourcing and utilizing local talents.
• Establishing mid-to-long-term GHG reduction goals and adaptation measures.
• Modularization and prefabrication to reduce onsite work and improve safety.

Supply Chain Management

Supplier Audits: 11 companies/year

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting project schedules and assets.

Transition Risks

• Increasing demands for GHG reduction.

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: OHSAS 18001:2007, ISO 14001:2015

Third-party Assurance: Korea Productivity Center

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• MEED Project Awards
• Samsung Safety and Environment Award
• CDP Korea Awards

Environmental Metrics

ESG Focus Areas

• Climate Change Response
• Strengthening Safety and Health
• Sustainable R&D
• Fair Transactions
• Pioneering New Businesses and Markets
• Information Security

Environmental Achievements

• Achieved platinum level for the Zero Waste to Landfill Certificate in the construction industry
• Acquired ISO 50001 certification for energy management systems
• Purchased 500MWh of renewable energy at green premiums and 3,000MWh in I-REC in Mexico
• Reduced total water consumption and the ratio of water consumption to revenue since 2021

Social Achievements

• Launched S.A.Y (Safety Around You), a safety culture brand
• Improved employee satisfaction compared to the previous year
• Introduced a standardized training system for global staff and customized training programs
• Attained the Excellent Grade in the Win-Win Growth Index for three consecutive years

Governance Achievements

• Established the ESG Committee under the Board of Directors
• Appointed a legal expert as outside director to strengthen compliance management
• CEO evaluation linked to the “SAMSUNG E&A’s Plan to Implement Environmental Management strategies” including 100% renewable energy by 2030 and net zero emissions by 2050

Climate Goals & Targets

Environmental Challenges

• Climate change transition risks (policy and law changes, stricter disclosure requirements, technology transition to green and low-carbon technologies)
• Climate change physical risks (torrential rain, heavy snow, extreme heat, rising sea levels)
• Supply chain disruptions
• ESG-related controversies or legal issues (not specified in the report)

Mitigation Strategies

• Established net zero emissions strategies and reduce GHGs
• Introduced an information collection process and IT systems in accordance with global initiatives (CSRD)
• Invested in eco-friendly R&D and diversified business portfolio
• Developed alternative sourcing strategies (not explicitly stated, but implied through supplier support and sustainability initiatives)
• Actions taken to resolve ESG-related controversies (not specified in the report)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• ESG evaluation for SMEs
• Financial consulting for suppliers
• GPA (Global Partnership Agreement) for long-term partnerships

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Torrential rain
• Heavy snow
• Extreme heat
• Rising sea levels

Transition Risks

• GHG emissions trading scheme
• Stricter disclosure requirements
• Transition to green and low-carbon technologies

Opportunities

• Development of energy-efficient products
• Expansion of carbon capture and hydrogen businesses
• Growing government’s support for green technologies

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD, UN SDG Index

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 27001, ISO 31000, ISO 21502-21505

Third-party Assurance: LRQA and Korea Management Registrar (KMR)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)
• Goal 17 (Partnerships for the goals)

Initiatives contribute to these goals through various environmental, social, and governance programs and projects

Sustainable Products & Innovation

• Low-energy sewage treatment technology
• Technology of reusing water from sewage treatment
• Technology adsorbing and treating toxic gas in case of emergency
• Low-carbon concrete

Awards & Recognition

• Excellent Grade in the Win-Win Growth Index
• 2023 Oil & Gas Top 25 EPC Contractors (3rd)
• 2023 ENR International Contractor (22nd)
• Various safety and HSE awards
• 2023 IKTVA Best in ESG