On July 11, Samsung Biologics, a leading contract development and manufacturing organization (CDMO), released its second annual environmental, social, and governance (ESG) report. The report, which covers Samsung Biologics’ activities from January to December 2021, outlines the CDMO’s emphasis on sustainability amid substantial growth.
The report details Samsung Biologics’ involvement in several global initiatives focused on disclosing carbon emissions and working toward net-zero greenhouse gas emissions. It also highlights the CDMO’s progress in reducing emissions across its facilities.
“Under our ‘Driven. For a Sustainable Life.’ framework, we are continuously improving and committing our resources to create a sustainable environment, build a healthy society, and implement responsible business activities,” said Samsung Biologics CEO John Rim in a statement announcing the release of the report. “The publication of our annual ESG report reinforces the progress we’ve made, while keeping us focused on the long-term goals we’ve set. Our sustainability initiatives reinforce the connection between the work we do and how we fulfill our mission, while delivering on our core values of always putting people and the environment first.”
Initiatives for a Sustainable CDMO
The report begins with Samsung Biologics announcing, “We are your sustainable CDMO,” and outlines the steps the CDMO is taking to earn this description. Key among these steps is Samsung Biologics’ involvement in several sustainability initiatives with ambitious emission-reduction goals.
Samsung Biologics has become actively involved in the Sustainable Markets Initiative. This initiative unites global leaders from several industries, academic research institutions, and international organizations like the World Health Organization and UNICEF to focus on accelerating the push to achieve net-zero emissions and sustainable markets. As a representative CDMO of the initiative, which includes partners from industries ranging from finance to energy, Samsung Biologics is pursuing methods for reducing emissions across the biopharmaceuticals supply chain.
In addition to pursuing net-zero goals, Samsung Biologics is involved in developing climate change risk-management models through the Frontier 1.5D initiative, a global collaboration started by South Korea’s Financial Supervisory Service with partners including the Ewha Womans University and the British Embassy. The initiative’s goal is to limit global temperature rise to 1.5 degrees Celsius above preindustrial levels.
“We are proud and honored to be a part of the vital Frontier 1.5D initiative to ultimately redefine energy efficiency and reusable energy through the reduction of GHG [greenhouse gas] emissions,” said Rim in a September 2021 announcement of the partnership. “Alongside our core mission to bring a healthier and sustainable future for humanity, Samsung Biologics will support the development of mid- to long-term climate change strategies and action plans as part of our decarbonization efforts to achieve a net-zero future.”
The CDMO is also focused on transparent emissions-disclosure practices through its involvement with the Carbon Disclosure Project (CDP). Samsung Biologics received the CDP’s Carbon Business Management Honors award for its disclosure practices and continues to work with the CDP to meet emissions reduction targets.
Sustainability Statistics
Along with detailing Samsung Biologics’ ongoing involvement with sustainability initiatives, the ESG report provides several statistics measuring the CDMO’s progress in meeting its sustainability goals.
According to the report, Samsung Biologics reduced its Scope 1 and 2 emissions, those directly resulting from its operations, by 32.3% from 2020 to 2021. The CDMO continues to make progress toward its goal of a 54.3% reduction of Scope 1 and Scope 2 emissions by 2026. The report also outlines a goal of a 25.7% reduction of Scope 3 emissions, those resulting from activities and assets indirectly associated with the company’s value chain, by 2026.
Samsung Biologics is dedicated to reducing energy usage in the workplace in accordance with its Energy Management System (ISO 50001) certification. For example, by replacing its workplace lights with high-efficiency LED lights, Samsung Biologics reduced energy usage by 62,494 kilowatt-hours per year at its facilities. And by adjusting the operation of its HVAC facilities, it reduced energy usage by 742,935 kWh per year.
Sustainable Growth
Samsung Biologics continues to grow, and the ESG report emphasizes that it remains conscious of a commitment to sustainability throughout its expansion.
The CDMO outlined its plans to construct photovoltaic-based power facilities and utilize green refrigerants at its newly constructed plants, which include an mRNA vaccine production facility that began operations in May and its Plant 4 facility, which will begin partial operations in October 2022 and full operations in 2023.
The report also notes that Samsung Biologics is committed to thorough environmental impact assessment in the process of constructing new facilities, including Plant 4 and its planned Bio Campus 2 facility, which will house production facilities for antibody drugs and an Open Innovation Center to foster biotechnology in Incheon’s Free Economic Zone.
Samsung Biologics reported record-high revenue growth of 35% in 2021, followed by 96% year-over-year growth in the first quarter of 2022. As the ESG report emphasizes, this revenue growth has come amid an increasing effort to focus on sustainability, with the CDMO establishing its ESG committee in 2020 and ramping up its sustainability efforts in the past two years.
“Samsung Biologics’ strong start to the 2022 fiscal year was driven by building momentum around our long-term growth strategy and expanding capacity. Our first-quarter financial performance demonstrates a significant and sustained level of customer demand in our services and capabilities,” said Rim in a statement on the CDMO’s first-quarter earnings report. “Turning to the present and future, Samsung Biologics has also committed to making sustainability a key component of the way we work and engage with our partners and communities. In our mission to build a healthier future for all while creating enduring and sustainable value, we are investing in initiatives to mitigate the risks of climate change in the greater areas we impact.”
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