Samsung Electronics Sustainability Report 2023

Our Company

Message from Our CEO

Company Overview

Global Network

Stakeholder Engagement

Planet

New Environmental Strategy

Climate Action

Circular Economy

Clean Tech Ecosystem

Sustainability in Operations

People

Human Rights

Human Resource Management

Diversity, Equity, and Inclusion

Tech for All

Sustainability in Supply Chains

Empowering Communities

Principle

Corporate Governance

Compliance & Ethics

Facts & Figures

Economic Performance

Social Performance

Environmental Performance

Performance by Division

Sustainability Value Creation

Materiality Assessment

Alignment with UN SDGs

101

102

108

112

113

114

116

Appendix

Independent Assurance Report

Verification Statement on Scope1,2

Greenhouse Gas Emisson

Verification Statement on Scope 3

Greenhouse Gas Emisson

GRI Index

TCFD Index

SASB Index

About This Report

118

119

120

121

124

126

128

Approach to

Sustainability

Business Sustainability

Highlights of Product Sustainability

Sustainability Achievements

Our Company AppendixApproach to Sustainability Facts & Figures PrinciplePlanet

People

Samsung Electronics Sustainability Report 2023

Our Company AppendixFacts & Figures PrinciplePlanet

People

Samsung Electronics Sustainability Report 2023

Approach to Sustainability

Our Company

Message from Our CEO

Company Overview

Global Network

Stakeholder Engagement

Our Company AppendixApproach to Sustainability Facts & Figures PrinciplePlanet

People

Samsung Electronics Sustainability Report 2023

Our Company AppendixFacts & Figures PrinciplePlanet

People

Samsung Electronics Sustainability Report 2023

Approach to Sustainability

CEO and Vice Chairman

Jong-hee Han

Dear Shareholders, Customers, Partners, and Employees,

Samsung Electronics is committed to embedding sustainability in our

business and product strategies while striving to play a leading role in

the global effort to build a sustainable future.

Growing environmental and socioeconomic risks coupled with

geopolitical uncertainties have reinforced our belief that sustainability

needs to be a key force for driving our competitiveness and technological

innovation.

To accelerate this drive, Samsung Electronics announced the New

Environmental Strategy on September 15

, 2022, and cemented our

resolve to address global climate and resource challenges in cooperation

with our stakeholders.

With this new strategy, we plan to achieve net zero for the DX Division by

2030 and company-wide, including the DS Division, by 2050.

As a global information and communication technology (ICT) company,

our responsibility is to make positive, lasting impacts throughout the

value chain and society. To this end, we aim to mitigate carbon emissions

by using our innovative technologies and maximizing resource circularity

across the life cycle of our products.

Tackling global environmental challenges requires concerted efforts

from a wide range of stakeholders. We are therefore continually

expanding our collaboration and partnership with various stakeholders

to explore technological breakthroughs and address systemic and

physical barriers.

Our involvement in the Asia Clean Energy Coalition (ACEC),

Semiconductor Climate Consortium (SCC), Decarbonizing the Use Phase

of Connected Devices (DUCD), and Platform for Accelerating the Circular

Economy (PACE) are good examples of such collaboration that strives

to work across value chains and with industry peers. Another notable

partnership is with Patagonia to address the issue of microplastic

pollution, which led to the introduction of new wash cycle and ﬁlter that

reduce the amount of microﬁber released to the environment.

Samsung Electronics is also reinforcing compliance with human

rights principles while promoting sustainable management practices

throughout our supply chain, better serving local communities, and

enabling professional growth of our employees.

In February 2023, we announced our Global Human Rights Principles as

an extension of our commitment to protect human rights under the UN

Message from

Our CEO

Guiding Principles on Business and Human Rights (UNGP). Our Global

Human Rights Principles convey our will to engage employees, suppliers,

local communities, partners, and consumers in our pledge to uphold

fundamental human rights.

Regarding corporate social responsibility, our activities include diverse

training initiatives that focus on building technical capabilities of

future generations as well as donation programs that reach out to

the underserved. A prime example is our Kiosk of Sharing, a program

through which employees can donate to underprivileged children in the

communities we serve simply by tagging their employee ID card. This

program aims to foster a culture of giving among our employees, and it is

currently active at all of our business sites in Korea and at select sites in

Vietnam, Thailand, India, China, and the US.

In line with our longstanding emphasis on cultivating talent based on

our corporate philosophy of “People First,” we launched The UniverSE—

The University of Samsung Electronics—in 2023. This company-wide

leadership and vocational training platform is designed to help our

employees develop the skills required to achieve both professional and

personal growth.

We have also rolled out a data science course for our employees and

suppliers to equip them with the necessary skills to excel as the future

workforce in the digital transformation era.

Furthermore, we are pleased to mark 2023 as the initial year of our

support to strengthen ESG performance of our suppliers. In this context,

we expanded our supplier training programs to bolster their compliance

with the Supplier Code of Conduct and relevant laws, support climate

action and resource-circularity initiatives, and adhere to labor and

human rights policies.

Samsung Electronics will continue to join hands with diverse

stakeholders and seek innovative technology-based solutions to tackle

pressing environmental and social challenges. Despite many obstacles

that may lie ahead, we will move forward steadily to fulfill our goals

toward a sustainable future one step at a time. We look forward to your

continued support and partnership in this journey. Thank you.

Our Company AppendixFacts & Figures PrinciplePlanet

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Samsung Electronics Sustainability Report 2023

Approach to Sustainability

About Our Organization

Our organization is divided into the two main divisions of DX (Device eXperience) and DS (Device Solutions), and we ensure that each division operates independently. DX took a new leap forward with the integration of the CE

(Consumer Electronics) Division responsible for, among others, TVs, monitors, air conditioners, refrigerators, and IM (IT and Mobile) Division, responsible for mobile devices and network systems. DS consists of the Memory,

System LSI, and Foundry businesses.

Company Overview

We aim to bring positive change to the everyday lives of people around the world by offering top-quality products and services created with innovative technologies and talented workforce. We also developed our Global Code

of Conduct, which articulates our commitment to helping the world move forward based on our ﬁve Key Values

. We will incorporate the Key Values into every aspect of our business operation and ensure compliance with the

Global Code of Conduct

to achieve our ultimate goal of sustainable growth.

* The sales and operating proﬁts above are based on 2022 ﬁgures, excluding the performance of Harman and SDC (Samsung Display Company).

Sales

KRW

182,489.7

billion

Sales

KRW

98,455.3

billion

Operating Profit

KRW

12,746.1

billion

Operating Profit

KRW

23,815.8

billion

Major Business Units

Device eXperience

Device Solutions

Networks

Mobile eXperience

Visual Display

Digital Appliances

Health & Medical Equipment

System LSI

Memory

Foundry

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Samsung Electronics Sustainability Report 2023

Approach to Sustainability

Global Network

As of the end of 2022, our global business network consists of 232 production sites, sales ofﬁces, R&D

centers, and design centers. With global headquarters in Korea, we have 15 regional ofﬁces including

in North America, Southeast Asia, Europe, and Africa

North America

Regional Offices

Sales Offices

Production Sites

R&D Centers

Design Centers

Purchase Centers

Others

Regional Offices

Sales Offices

Production Sites

R&D Centers

Design Centers

Central and

South America

Europe

Regional Offices

Sales Offices

Production Sites

R&D Centers

Design Centers

Purchase Centers

Others

CIS

Regional Offices

Sales Offices

Production Sites

R&D Centers

Regional Offices

Sales Offices

Production Sites

Africa

Regional Offices

Sales Offices

Production Sites

R&D Centers

Others

Middle East

Regional Offices

Sales Offices

Production Sites

R&D Centers

Design Centers

Purchase Centers

Others

China

Regional Offices

Sales Offices

Production Sites

R&D Centers

Purchase Centers

Others

Southeast Asia

Regional Offices

Sales Offices

Production Sites

R&D Centers

Design Centers

Korea

Regional Offices

Sales Offices

R&D Centers

Design Centers

Purchase Centers

Japan

Regional Offices

Sales Offices

Production Sites

R&D Centers

Design Centers

Others

Southwest Asia

R&D expenditure

KRW

24.9

trillion

Operations in

countries

Suppliers

2,131

Employees

270,372

Regional

Offices

Sales

Offices

Production

Sites

R&D

Centers

Design

Centers

Purchase

Centers

Others

Total

15 108 31 41 7 6 24

1) Regional classiﬁcation is based on Samsung Electronics’ internal management criteria. 2) Sales Subsidiaries and Branches 3) Distribution Subsidiaries, IP Ofﬁces 4) Suppliers of parts used in the manufacturing of Samsung products

* As of 2023, the number of purchase centers previously included in “Others” is disclosed separately. In addition, the number of sales branches previously included in "Others" has been included in "Sales Ofﬁces."

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Samsung Electronics Sustainability Report 2023

Approach to Sustainability

Stakeholders Key Interests Communication Channels Major Activities

Customers

(B2C & B2B)

· Quality of products and services

· Safety in product use

· Environmental impact of products

throughout their life cycle

· Accurate product information

· Transparent communication

· Customer satisfaction surveys

· Contact centers and

service centers

· Samsung Electronics Newsroom

· Samsung Semiconductor

Newsroom

· Sustainability Website

· Sales Channels

· Product Environmental Report

· Reinforcing quality and safety

management systems

· Offering product information via country-

specific websites

· Resolving issues identified through VoC

(Voice of the Customer)

· Staffing sustainability specialists at the

subsidiary and business levels

Shareholders and

Investors

· Economic performance

· Risk management

· Information-sharing

· Sustainability agenda, including

environmental, social, and

governance issues

· Annual General Meeting

· Non-Deal Roadshows, Investor

Meetings

· Earnings Releases

· Investors Forum

· ESG Roadshow

· IR Website

· Forecasting business environment and

performance

· Updating shareholder return policy

· Disclosure of information on corporate

governance

· Collecting views of shareholders and investors

Employees · Safe and healthy work environment

· Diversity and inclusion

· Training and career development

· Employment and benefits

· Labor relations

· Organizational culture

· Labor unions, work councils

· Counseling centers

· Satisfaction surveys on organizational

health, work concentration, and

employee experience

· Sustainability Website

· Communication with the

executive management

· Online communication platform,

including Samsung NOW

· Compliance and ethics

whistleblowing channels

· Offering tailored career development

programs

· Town hall meetings hosted by individual

businesses

· Mentoring for the executive management

by Millennial and Gen Z employees

· Managing work environments at our

business sites

· Fostering a culture of trust and communication

· Employer Branding Activities

Suppliers · Partner collaboration

· EHS(Environment, Health & Safety)

performance

· Fair trade

· Protection of workers' human rights

· Environmental and social issues

· Global Supplier Relationship

Management System

· Hotline, online whistleblowing channels

· Partner Collaboration Day, supplier

dialogues

· Partner Collaboration Academy

· Sustainability Website

· Funding and technology support

· Employee training and innovation support

· GHG emissions reduction management

· Responsible management of suppliers’ work

environments

· Grievance resolution

Local Communities · Local employment, local

economic development

· Indirect economic effects, including

investment and employment

· Conservation of local

environment

· Philanthropic activities including

donations and volunteer work

· Local volunteer centers

· Sustainability Website

· CSR Website

· Local community councils · SME support programs, including Smart

Factory

· Conservation of river ecosystems near

our business sites

· Community outreach programs on education

and employment

International

Organizations, NGOs,

Associations, Specialized

Organizations

· Social responsibility for local

communities and the

environment

· Contributions to climate action

and other UN SDGs

· Transparent and timely information

disclosure

· Corporate dialogues

· NGO meetings

· Stakeholder forums

· Meetings between civil society

organizations and executive

management

· Sustainability Website

· Collecting views of global NGOs

· Engagement with RBA

, RMI

, and BSR

1) Responsible Business Alliance

2) Responsible Minerals Initiative

3) Business for Social Responsibility

· UNGC

activities

· Engagement with ACEC

and SCC

1) United Nations Global Compact

2) Asia Clean Energy Coalition

3) Semiconductor Climate Consortium

Government · Indirect economic effects, including

investment and employment

· Fair trade

· Occupational health and safety

· Compliance

· Business ethics

· Policy conferences

· National Assembly

· Public hearing for policymaking

· Policy advisory bodies

· Sustainability Website

· Supporting SMEs in collaboration with

the government

· Operating joint venture investment windows

in collaboration with the government

Media · Business strategy for major products

· Progress on implementation of New

Environmental Strategy

· Investment strategy

· Press releases

· Sustainability Website

· Samsung Electronics

Newsroom

· Supporting media coverage of global

IT exhibitions and unpack events

· Media days

· Press conferences

· Interviews

· Planning and promotional activities

Stakeholder Engagement

Active communication with our stakeholders is an important part of fulﬁlling our responsibility as a global company. We disclose relevant information in a transparent manner and continually update contents year-round on

our Sustainability Website

. We seek to strengthen our relations with our stakeholders and align ourselves with them on issues regarding sustainability through active communication via multiple channels, including forums,

surveys, and on-site visits.

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Samsung Electronics Sustainability Report 2023

Approach to

Sustainability

Business Sustainability

Highlights of Product Sustainability

Sustainability Achievements

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Samsung Electronics Sustainability Report 2023

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Samsung Electronics Sustainability Report 2023

Mobile Devices TVs and Audio Systems

Home Appliances Semiconductors

Business Sustainability

We pursue sustainability throughout the product's life cycle, from design and development to manufacturing, usage, takeback, and recycling.

At the Device eXperience (DX) Division, we develop environmentally responsible materials and energy efﬁcient solutions and collect and recycle e-waste globally. In addition, we continuously enhance the accessibility features of

our products and provide upgrades to improve user experience.

At the Device Solutions (DS) Division, we strive to minimize greenhouse gas emissions in the manufacturing of semiconductor products, including memory, image sensors, and driver integrated circuits (ICs). In addition, by

enhancing the energy efﬁciency of semiconductor products we are reducing the amount of energy consumed by data centers and IT devices, such as smartphones and laptops. We also seek innovations from the product design

stage all the way through production with the aim of transforming end-of-life products into resources.

Recycling of discarded fishing nets

Discarded fishing nets that destroy

ocean ecosystems are transformed

into parts for our smartphones, earbuds,

tablets, and PCs.

Galaxy Upcycling

Galaxy smartphones not in use

are transformed to serve new

purposes through the Galaxy

Upcycling program.

SolarCell Remote

SolarCell Remote can be charged

with natural light or indoor

lighting in lieu of disposable

batteries. It is compact-

designed, slim and light.

Eco-packaging

In 2020, we introduced eco-

packaging that enables consumers

to easily upcycle TV packaging into

a book shelf, object for a pet, or

small piece of furniture.

Lifetime warranty for key parts

We design key parts

of home appliances to last longer

and provide free repair services for home appliances to

reduce e-waste.

1) Free repair services for digital inverter motors and compressors

- Korea: Unlimited service for models released since 2021 (Bespoke

refrigerators and kimchi refrigerators, washers, dryers, air

conditioners, etc.)

- Other regions: 20-year warranty for models released since 2022

(refrigerators, washers, and dryers), applicable to select countries

and models

Accessibility features of

TV products

We have focused on enhancing

the accessibility features of our TV

products since 2014 as an extension

of our efforts to realize our vision of

“Caring for All”.

Samsung Global Goals

We support to achieve UN

SDGs in cooperation with

UN Development Program

(UNDP).

Less microfiber cycle in washer

We developed a cycle that reduces

the release of microplastics that are

damaging to ocean ecosystems and

our health.

Water resource saving and reuse

We develop technologies to enhance

the reusage rate of used water.

GHG emissions reduction in the

production stage

We have focused our resources

on mitigating GHG emissions

generated in the semiconductor

manufacturing process.

SmartThings Energy

SmartThings Energy enables users

to monitor the power consumption of

individual devices and project their

energy bills on a monthly basis. Its

AI Energy Mode helps save energy.

Business site waste management

We began to pursue zero waste to landfill goal

from 2018 and sought ways to recycle different

types of waste generated on-site. This resulted

in receiving the "Resource Circularity Quality

Mark" from the Korea Ministry of Environment.

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Samsung Electronics Sustainability Report 2023

Highlights of Product Sustainability

Accessibility Recycled and Recyclable Materials

We strive to design products that are accessible for people with disabilities. We offer visual, auditory,

cognitive, and motion accessibility features such as the Relumino mode (a quality correction mode for

people with low vision), the SeeColors mode for people with color weakness, sign language guidance,

and TalkBack.

We develop recycled and recyclable materials in collaboration with various partners and apply these

materials in our products. We ensure that product quality is maintained while striving to minimize their

environmental impact.

Relumino Mode

Galaxy S23 Series: Designed with the Planet in Mind

Outlining objects, enhancing contrast, and

adjusting brightness, color, and sharpness

to highlight content for people with low

vision

In the Galaxy S23 series, we incorporated

recycled materials in more device components

than in any other previous Galaxy smartphone.

Back Glass Deco Film

Recycled

S pen inner cover

Recycled

Front Screen

Recycled

Story Story

PET

Ocean-Bound Plastic

Glass

Neo QLED TV (QN90C)

· Relumino mode for low-vision users

· Improved vision accessibility (e.g., magnification,

high contrast display, SeeColors mode)

· Hearing accessibility features (e.g., auto caption position,

sign language guide)

· Slow Button Repeat

ViewFinity S6 Monitor (S65UC)

· SeeColors mode for people with color vision deficiency

· High Contrast, black and white, color inversion

Galaxy Book3 Ultra

· Plastic recycled from discarded fishing nets applied to the bottom inner case

· Plastic recycled from discarded water bottles applied to the rear inner case

and cover foot

· Display that attained UL’s Greenguard gold certification

Galaxy Buds2 Pro

· Plastic recycled from discarded fishing nets applied to the battery bracket, cradle

PCB bracket, and protective brackets for the interior parts

· Plastic recycled from discarded water bottles applied to the lid, interior of the lid, base,

and interior parts of the cradle case, as well as the front and back covers of the earbuds

· Expanded use of recycled paper in packaging

Story

Carbon Footprint

In 2019, we obtained the industry’s ﬁrst Carbon Footprint certiﬁcation from the Carbon Trust for the

Universal Flash Storage (UFS). Since then, we have been Carbon-Footprint certified across a wide

range of products – including eight in DRAM/SSD/memory card (2020), four in system semiconductor

and twenty in DRAM/SSD/memory card (2021), four in system semiconductor, and 15 in DRAM/SSD/

memory card (2022). Moreover, we achieved Carbon Reduction certiﬁcations for one UFS (2020) and

ﬁve DRAM/SSD/UFS/memory card (2021).

Reducing carbon emissions throughout the product life cycle

Our Carbon Footprint-certiﬁed products reduce carbon emission by approximately 680,000

tonnes.

Vehicle Headlamp Solution (C-Series Gen3)

· Industry’s first to obtain Carbon Footprint certification by Underwriters

Laboratories (UL)

· Reduced vehicle energy consumption, improved fuel efficiency,

and reduced carbon emissions

· Best-in-industry lamp efficiency with vehicle energy consumption

reduced by over 10%

UFS 3.1(512GB)

· Recognized with the industry’s first ‘Reducing CO

’ label by Carbon Trust

· Carbon Footprint certification by Carbon Trust

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Samsung Electronics Sustainability Report 2023

Highlights of Product Sustainability

Sourcing Use Recycling∙DisposalDistribution Production

Story

Energy Efﬁciency

Our latest products outperform their predecessors in terms of energy efﬁciency, exceeding the ﬁrst

grade energy efﬁciency rating by the Korean government. The Bespoke Grande AI washer (25kg) and

Bespoke Wind-Free Air Conditioner both exceed this rating by 20% and 10%, respectively.

By using the SmartThings AI Energy Mode, energy consumption of washers, air conditioners, and dryers

can be further enhanced by up to 60%, 20%, and 35%, respectively.

1) Applicable models: washers (including WF25CB8895BW) and air conditioners (including AF17CX936AFN)

2) Test models: washer (WF25B9600**), air conditioner (AF25BX934WAR), and dryer (DV20B9760ME)

SmartThings Energy

SmartThings Energy recommends ways

for you to be more energy efﬁcient and

lets you easily monitor and manage the

energy usage.

Bespoke Grande AI Washer

· Obtained first grade energy efficiency rating by the Korean government

· Using SmartThings AI Energy Mode reduces energy consumption by up to 60%

1) Test model: WF25B9600**

Bespoke Wind-Free Air Conditioner

· First grade energy efficiency rating by the Korean government

· SmartThings AI Energy Mode for energy consumption reduction by up to 20%

1) Applicable models: AF17CX936AFR, AF18BX836NFR, AF20BX936SFR,

AF23BX939VSR, F25BX934WAR

2) Test model: AF25BX934WAR

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Samsung Electronics Sustainability Report 2023

Highlights of Product Sustainability

Profilers

The AMIGO solutions is equipped

with profilers that collect CPU, GPU,

MIF, FPS, DTM data.

DVFS Drivers

When an IP is identified, the main

controller changes the frequency of the

selected IP using the DVFS (Dynamic

Voltage & Frequency Scaling) driver.

Main Controller

The main controller analyzes the collected

data and determines which IPs to raise or

suppress in order to achieve the target FPS

or reduce power.

Main Profiler

It collects the active ratio, frequency,

and temperature of each IP as well as

the frames-per-second (FPS) and screen

refresh rate.

Brains of a smartphone with eyes on a better life

The Exynos mobile processor has an integrated form of various features that reduces the

space and costs of parts and enhances their respective energy efﬁciency compared to that of

individual parts.

Story

Mobile AP

(Exynos 2200)

 Optimizing energy efficiency through AMIGO solution

 Integrated premium single SoC

for 5G modem

 Enhanced computing core (CPU

, GPU

, NPU

)

1) Application Processor

2) System on Chip

3) Central Processing Unit

4) Graphic Processing Unit

5) Neural Processing Unit

Low-Power Processor

Samsung Exynos Processor is integrated with a variety of functions, including the CPU, GPU, Multi-

format Codec (MFC), Image Signal Processor (ISP), Display, and Security — along with an NPU and

Digital Signal Processor (DSP) for AI in addition to the 5G modem. Furthermore, our proprietary

Advanced Multi-IP Governor (AMIGO) solution dramatically reduces battery consumption.

Story

DDR5 SSD

Energy

saved

TWh per year

Low-Power Memory

In the future, the storage and processing of data will likely require more energy compared to energy

required for generating data

Therefore, we offer high-performing, power-efﬁcient, and secure solutions tailored to the needs of

data centers. These industry-leading solutions facilitate the reduction of power use and operational

costs at data centers.

1) According to IDC IGIS, a market research agency, an estimated 175ZB of data is projected to accumulate in 2025.

Power savings of Samsung SSD and DDR5

If we replace the world's Hard Disk Drives (HDDs)

with Samsung Solid State Drives (SSDs) and

Dynamic Random-Access Memory (DRAM) of

servers with Samsung Double Data Rate 5 (DDR5)

DRAMs, approximately 7TWh of energy can be

saved per year.

Mobile DRAM(LPDDR5X)

· Power consumption reduced by nearly 20% compared to the

previous products

· Ultra-high 8.5 Gbps data processing speed is 1.3 times faster

compared with previous LPDDR5 models of 6.4Gbps

DDR5 DRAM(12 nanometer)

· Productivity and low-power feature enhanced, compared to previous

DRAM (14 nanometer)

· Optimized for next-generation computing with productivity and power

efficiency enhanced by 20% and 23%, respectively

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Samsung Electronics Sustainability Report 2023

Sustainability Achievements

Planet People

GHG Emissions Reduction Relative to BAU (Scopes 1 and 2)

10.16

million tonnes CO

*59% increase compared to 2021

Transition to Renewable Energy

* 11%p increase compared to 2021

** Transition complete at all DX business sites in Korea

and manufacturing sites in Brazil, India, and Vietnam

GHG Emissions Reduction in the Product Use Phase

914,000

tonnes CO

* 13 product categories in 2022 (refrigerator, air conditioner,

washer, dryer, microwave oven, vacuum cleaner, TV, monitor,

PC, HHP, tablet, wearable, and base station)

** Compared to BAU (baseline year: 2021)

Water Reuse

116.59

million tonnes

*29% increase compared to 2021

Use of Plastic with Recycled Resin

98,826

tonnes

* 200% increase compared to 2021

** Cumulative amount from 2009 to 2022

409,000 tonnes

E-Waste Collected

600,502

tonnes

* 9% increase compared to 2021

** Cumulative amount from 2009 to

2022 5.69 million tonnes

Zero Waste-to-Landﬁll Mark (Platinum)

business sites

WBA

Corporate Human Rights Benchmark in 2022

Ranked

(among ICT manufacturers)

1) World Benchmarking Alliance

Suppliers Rated as Outstanding

62.1

* Based on results of the annual comprehensive

supplier evaluation

Smart Factory Project Beneﬁciaries

277

companies

* A total of 3,087 companies from 2015 to 2022

WBA Digital Inclusion Benchmark in 2022

Ranked

Employee Training Sessions

9.14

million sessions

Employee Volunteering

1.02

million hours

* A total of 10.97 million hours from 2012 to 2022

CSR Program Beneﬁciaries

660,761

individuals

*A total of 22.77 million individuals from 2012 to 2022

GCF

Children’s Rights Benchmark in 2022

Leader

(highest rank)

1) Global Child Forum

Launching of The UniverSE

academies &

schools

1) The University of Samsung Electronics

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Planet

New Environmental Strategy

Climate Action

Circular Economy

Clean Tech Ecosystem

Sustainability in Operations

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Planet

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Planet

People

Samsung Electronics Sustainability Report 2023

New Environmental Strategy

Samsung Electronics announced the New Environmental Strategy

in September 2022 with the aim of addressing global environmental

issues through our innovative technologies. This paradigm shift is

essential for our sustainable growth and will serve as an important

momentum to reinforce our competitiveness.

The New Environmental Strategy was developed based on our

commitment to achieve net zero by 2050 joining the world’s drive to

combat climate change; maximize resource circularity to advance

towards a circular economy; and continuously address environmental

challenges through technological innovation. This effort is expected to

bring positive change to the broader ecosystem of the ICT (information

and communications technology) industry as we engage in the

manufacturing and supply of an extensive range of products and

services.

We plan to invest over KRW 7 trillion* by 2030 in environmental

management activities (including semiconductor process gas

reduction, e-waste collection and recycling, water resource

preservation, and pollutant minimization) by 2030 and transparently

disclose the progress and results of the implementation of the

Strategy regularly via our Sustainability Report and Website.

*Excluding renewable energy purchasing costs

Achieving Net Zero by 2050

We are a vertically integrated ICT manufacturer involved in all

electronics sectors from semiconductors to smartphones, TVs, and

home appliances. As a company of vast scale responsible for the

supply of an extensive range of products and services, we are faced

with significant obstacles in meeting our net zero targets including

the transition to renewable energy. However, we have taken up the

challenge to contribute to resolving one of the most pressing issues

threatening humanity: climate change.

We plan to achieve net zero in Scopes 1 and 2 by 2050. Net zero will

be achieved ﬁrst by the DX Division by 2030, followed by the company

level including the DS Division by 2050 or sooner.

Reducing Scope 1 Emissions through Technological Innovation

We are concentrating our resources on carbon emissions reduction

technologies that reduce Scope 1 emissions generated from our

operations. Direct carbon emissions from our operational sites are mostly

process gases from the semiconductor manufacturing process and

emissions from the use of fossil fuels such as LNG(Liqueﬁed Natural Gas).

We plan to develop new technologies for improving process gas treatment

efﬁciency by 2030 and expand carbon emissions reduction facilities across

all of our manufacturing lines. In order to reduce the use of LNG-fueled

boilers, we will seek ways to utilize waste heat and introduce electric heat

sources. Moreover, we will switch all corporate vehicles – approximately

1,500 – to electric vehicles by 2027.

Joining RE100 for Scope 2 Emissions Reduction

We joined the RE100 initiative to reduce our Scope 2 emissions (indirect

carbon emissions from power consumption) and achieve the transition to

renewable energy for our electricity use by 2050. Despite the challenge of

being a large energy user with limited renewable energy supply – especially

in Korea – we are committed to transitioning to renewable energy by 2050.

We will ﬁrst complete energy transition at all of our global operations sites by

2027 (Central and South America by 2025; and Southeast Asia, CIS member

states, and Africa by 2027). For our sites in the US, China, Europe, Vietnam,

India, and Brazil that have already reached this goal, we plan to expand direct

power purchase agreements (PPAs) centering on the regions equipped with

active renewable energy policies and systems.

Strengthening Stakeholder Collaboration

We are actively collaborating with various stakeholders, including industry

peers and civil society organizations, to increase the supply of renewable

energy. As part of this effort, we joined the Asia Clean Energy Coalition (ACEC)

as a founding member during the 27

Conference of the Parties (COP27) of

the UN Framework on Climate Change (UNFCCC). We are participating as a

member of the steering committee as well as country-working groups to

facilitate the supply of renewable energy in the region. Moreover, we joined

the Semiconductor Climate Consortium (SCC) as a founding member in

November 2022 and have been appointed as a governing council member

in January 2023. In this capacity, we aim to play an active role in collectively

addressing the climate challenges as an industry, including ways to facilitate

GHG emissions reduction through effective target and roadmap setting and

standardization.

In September 2022, we released our mid-to-long-term

environmental management strategy which speciﬁes

our goals and action plans based on a vision that

the Environment is Our Future.

New Environmental

Strategy

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Ultra-Power-Saving Technology and Resource Recycling

We focus on developing ultra-power-saving technology to enhance the

energy efﬁciency of our products and reduce carbon emissions in the

product use phase.

We plan to secure ultra-low-power semiconductor technology

to drastically reduce the power consumption of memory used in

data centers and mobile devices by 2025. By breaking down the

semiconductor manufacturing processes and developing low-power

design technology, we will be able to reduce the power consumption

of IT products and data centers resulting in mitigating GHG emissions,

while rolling out products of the same performance using less

resources.

We also plan to apply the technology to the leading models of seven

major product categories (smartphone, TV, refrigerator, washer, air

conditioner, PC, and monitor) to improve power consumption by an

average of 30% by 2030 compared to that of models of equivalent

performance in 2019. To this end, we will apply high-efficiency parts

(compressors, heat exchangers, and semiconductors) and improve

energy efficiency in product algorithms through the introduction of

SmartThings AI Energy Mode.

Strengthening Scope 3 Emissions Management

In 2022 we launched a task force to facilitate emissions reductions of

Scope 3 emissions. In 2022, we improved the calculation methods for

applicable categories under Scope 3 and completed the third-party

audit on our calculation methods and measured emissions by the

Korean Foundation for Quality. We plan to continue to advance the

calculation methods to ensure accuracy in assessing our emissions.

Our Scope 3 emissions are veriﬁed by outside experts and are disclosed

to the public via our Sustainability Report and the CDP (Carbon

Disclosure Project) platform. We are also working to establish mid-

to-long-term targets and develop speciﬁc tasks across diverse areas

from supply chains to resource circularity and logistics. In this context,

we introduced 22 sustainability management courses (including GHG

emissions reduction, supply chain due diligence, fair trade) at our

Partner Collaboration Academy in Q4 of 2022 to help our suppliers

improve their understanding of relevant issues, while also offering

consulting services through our dedicated organizational unit to

improve their capacity for GHG management and emissions reduction.

Maximizing Resource Circularity across the Entire Product Life Cycle

We are undertaking a project to maximize resource circularity across

the life cycle of our products - from material sourcing and production

to disposal and recycling. We aim to complete the resource circularity

loop of producing electronics with recycled materials, collecting end-

of-life and discarded products, recovering resources, and applying the

recovered resources to new products.

Expanding the Application of Recycled Resin

We are expanding the use of recycled resin in plastic parts used in our

products. By 2030, recycled resin will be applied to 50% of our plastics

parts; by 2050, it will be applied to all of our plastic parts. We are also

expanding the use of plastic recycled from discarded fishing nets.

We established the Circular Economy Lab dedicated to developing

material recycling technology and applying recycled materials to our

products. The Lab aims to replace key materials used in our products

with more environmentally responsible materials through activities such

as recycled material development and research on recovering resources

from waste.

Recycling Discarded Batteries and Expanding E-Waste Collection

To address the e-waste problem that is threatening the environment, we

plan to expand our e-waste collection programs to all countries where we

operate (over 180) by 2030 from the current approximately 50 countries.

We plan to increase the cumulative amount of e-waste collected from

2009 to the industry’s largest amount of 10 million tonnes by 2030 and

25 million tonnes by 2050. We also plan to set up a system for recovering

and recycling minerals from collected waste batteries by 2030.

Addressing Environmental Challenges through

Technological Innovation

We will continue to mobilize our innovative technologies to address

environmental challenges. In particular, we will focus our resources on

developing carbon capture and utilization technology as well as fine

dust pollution mitigation technology.

Restoring Air and Water to Their Natural State Prior to Discharge

The DS Division aims to minimize the discharge of air and water

pollutants generated during the semiconductor production process

by developing and applying advanced treatment technologies. By 2040

the DS Division plans to treat air and water to their natural state with

minimal environmental impact prior to their discharge. By applying

advanced treatment technologies, we are treating efﬂuent to the level of

upper stream water quality and emissions to the level of air quality.

Contributing to Mitigating Carbon Emissions and Fine Dust Pollution

In order to develop and commercialize carbon capture and utilization

technology for storing and recycling carbon emitted from our

semiconductor production sites, we established the industry’s first

Carbon Capture Research Institute (currently renamed as Air Science

Research Center) within Samsung Advanced Institute of Technology

(SAIT) in September 2021.

We plan to apply carbon capture technology to our semiconductor

production facilities from 2030 and expand its application company-

wide and to our supply chain. We expect that our carbon capture and

utilization technology will help the semiconductor industry effectively

address its main source of carbon emissions and improve the industry’s

overall sustainability.

In 2019, we established the Particulate Matter Research Institute

(currently Air Science Research Center) dedicated to developing

advanced ﬁlters and original technologies for air puriﬁcation systems

to improve fine dust detection, analysis, and removal. We are in the

process of developing a ceramic catalyst filter that can be reused

after washing and which can simultaneously remove fine particles

and gases. From 2023, we will distribute the ﬁlter to our suppliers and

Samsung afﬁliates.

Technologies Contributing to a Circular Economy

We established the Circular Economy Lab, which specializes in research

on material recycling process and technology, and the application

of recycled materials to products to maximize resource circularity.

Through the Lab, we have collaborated with various research

institutions and corporations to research material recycling and waste-

to-resource technologies with the aim of ultimately manufacturing all

of our products with recyclable materials.

Monitoring Progress and Disclosing Information

In order to ensure the effective implementation of the New

Environmental Strategy including our net zero targets, we established

detailed implementation roadmaps for individual projects and regularly

monitor their latest developments through the Environmental

Management Task Force. All related data will be disclosed via our

Sustainability Website and official reports. Our climate change

response strategy and detailed information about GHG emissions will

continue to be shared via CDP.

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Resource circularity

New Environmental Strategy Targets and Performance in 2022

* Smartphone, TV, refrigerator, washer, air conditioner,

PC, and monitor

** Compared to 2019

Addressing environmental issues through technological innovation

· Integration of Carbon Capture Research Institute and Particulate Matter Research Institute

into SAIT’s Air Science Research Center (ASRC)

· Currently conducting R&D projects in high-efficiency CCU technology and applying

advanced fine dust removal and air purification systems at our business sites, bus terminals,

and underground parking lots, among others.

· Establishment of Circular Economy Lab specializing in development and application

of material recycling technologies

Environmental Targets

Progress in 2022

2027

2025

2030

2040

2050

· Achieve 100% transition

to renewable energy at our

global business sites and DX

business sites

· Replace all corporate

vehicles with EVs

· Attain Zero Waste-to-

Landfill certifications at all

of our business sites

· Apply carbon capture technology to

semiconductor production sites and expand

its application company-wide and in our

supply chain

· Develop and utilize fine dust pollution

reduction technology for local communities

from 2030

· Develop ultra-power-saving products and improving

power consumption of major models in seven product

categories* by 30%**

· Achieve net zero for DX

· Apply recycled resin to 50% of plastic parts used in our

products*

· Restore quality of 100% of water consumed by DX

· Expand e-waste collection system to all countries where we

operate and collect the industry’s largest cumulative amount

of e-waste of 10 million tonnes cumulatively since 2009

* Ratio of recycled content varies by plastic parts

· Remove pollutants generated during the semiconductor

production process and restore used water to its natural state*

with minimal environmental impact prior to discharge (DS)

· Net zero at all of our

global business sites

· Apply recycled resin to

all plastic parts*

· Collect 25 million

tonnes of e-waste

cumulatively

* Treating efﬂuent to the level of upper stream water and emissions

to clean air quality meeting the national standards

Use of Recycled and Recyclable Materials

GHG Emissions Reduction

Net Zero

Technological

Innovation

10.16

million tonnes of COe reduced (Scopes 1 and 2) compared to BAU, a 59%

YoY increase in reduction amount

8,704

GWh of renewable energy consumed globally reaching a transition rate of

· Product energy use efficiency improved by

% compared to 2019 through applying high

energy efficiency technology to leading models of seven major product categories

· Transition to 100% renewable energy achieved at the DX Division’s business sites in Korea,

Vietnam, India, and Brazil.

· Partnership agreements for securing and expanding the use of renewable energy signed

with Jeju Energy Corporation, Korea South-East Power, and Korea Southern Power in

November 2022

98,826

tonnes of plastic with recycled resin used achieving an utilization rate of

600,502

tonnes of e-waste collected as of 2022 (Cumulative amount from 2009

to 2022 5.69 million tonnes)

· Highest grade in Zero Waste-to-Landfill certification attained for five of DX Division’s global

business sites and seven of DS Division’s global business sites

· Partnership agreements to promote the use of treated wastewater signed with Korea's

Ministry of Environment and relevant local governments in November 2022 (DS Division)

· Partnership agreement signed with Korea Rural Community Corporation dedicated to water

resource management in December 2022 (DX Division)

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Environmental Management Governance

We consider environmental issues including climate change as

factors that directly influence our business operations and financial

performance. These issues are overseen by the Board of Directors, our

highest decision-making body.

The Board of Directors approves all strategies and goals related to

environmental management, oversees their latest developments, and

regularly reviews our relevant activities through the Sustainability

Committee comprised of independent directors. Our corporate

environmental strategy encompassing mid-to-long-term climate

actions and resource circularity goals was passed by the Sustainability

Committee in September 2022.

The CEO has the responsibility and authority for establishing

environmental strategies, determining implementation tasks

and approving investments, among others. The CEO establishes

environmental management plans and reviews implementation

progress through a corporate consultative body comprising the top

executives of relevant units.

Corporate Consultative Body for Environmental Management

Responsible for supervising and

monitoring our climate actions,

GHG emissions status, and GHG

emissions reduction efforts.

EHS Council

Establishes environmentally

responsible product

development strategies.

Eco-Council

Sustainability Committee

Under the Board of Directors and fully comprised of independent

directors. Responsible for setting company-wide environmental

strategies and goals and overseeing related outcomes

Regularly held under the leadership of the CEO.

Responsible for reviewing the implementation status of

company-wide environmental management tasks and identifying

new challenges. Executives of all organizational units involved in

the environmental strategy participate in the discussion and

decision-making process on environmental issues.

Sustainability Council

Responsible for reviewing the implementation status of company-

wide environmental strategy tasks and updating them. Executives

of all organizational units involved in the environmental strategy

participate in the discussion and decision-making process on

environmental issues.

Environmental Management Task Force

Environmental Management System

We adopted the global standards for environmental management and

energy management systems and maintained ISO 14001 and ISO 50001

for all of our business sites as of 2022. We continue to reinforce our

environmental management capacity by strengthening environmental

indicators (GHG emissions reduction, environmentally responsible

material use, e-waste collection, energy efficiency improvement,

among others) in the performance evaluations of our business units.

To strengthen our employees’ awareness of environmental management

and effectively prevent relevant risks and accidents, we mandate that

our employees receive mandatory environment training as well as a

separate job-speciﬁc specialized training at least once a year.

Environmental Risk Management

Environmental risks and opportunities influence not only products

and services but also the manufacturing processes, supply chains,

R&D, and sales activities. We continually monitor risks at all of our

global business sites pursuant to our risk management manuals for

individual sectors, from environment and safety to climate change,

energy, and compliance. Our environment and safety guidelines and

policies are disclosed on our sustainability website. We are also taking

various initiatives to develop products with high energy efﬁciency, and

to reduce GHG emissions at our production sites, as well as minimize

waste to landﬁll, and preserve water resources.

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Environmental Management Activities in Different Stages of the Value Chain

· Helping suppliers reduce GHG emissions and

expand the use of renewable energy

· Purchasing materials and parts with less

impact on the environment

· Operating the Eco-Partner Certification

Program

Materials

· Expanding the use of renewable energy and

reducing GHG emissions throughout the

manufacturing process

· Developing power-saving products

· Extending product life cycle and expanding

the use of recycled and recyclable materials

· Minimizing waste generation and expanding

the utilization of waste as resources

· Developing alternatives for chemicals

and designing products that can be easily

disassembled and recycled

Production

· Reducing fuel consumption and

GHG emissions through logistics

optimization

· Using recycled and recyclable packaging

materials

· Decreasing the volume and weight of

packaging

Distribution

· Reducing indirect GHG emissions through

product uses with high energy efficiency

· Improving product performance

· Upgrading firmware and extending

warranty periods

· Expanding global repair and service

centers

Use

· Monitoring GHG emissions in

the disposal stage

· Operating e-waste collection programs

in different countries

· Recovering and recycling resources

from e-waste

Recycling

Climate Action

Resource Circularity

Materials

Recycling

Use Distribution

Production

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Analysis of Climate Risks and Opportunities

We identify the financial and strategic impacts of climate change-related

risks, then establish response measures based on each risk’s magnitude,

and make decisions accordingly. Climate change-related risks include

global climate regimes, region-specific regulatory reinforcement, market

changes, stakeholders’ requests, and changes in physical environments.

Potential risks identified for the short term are an increase in investment

amount due to rising carbon credit prices and high-efficiency technology

development, investment in extreme weather response, and an increase in

restoration expenses, Meanwhile opportunities include an easing of carbon

credit price sensitivity due to the carbon credits acquisitions from various

sources and a reduction in energy expenses driven by development of high-

energy-efficiency technology. Changes in consumption patterns - driven

by increasing preference for environmentally responsible products - and

expanded renewable energy use are projected as mid-term opportunities,

while temperature increases and water resource depletion are identified

as long-term risks. As for long-term risks, we establish response measures

in line with Nationally Determined Contributions based on the Paris

Agreement and the Representative Concentration Pathways adopted by the

Intergovernmental Panel on Climate Change (IPCC) as well as the energy

technology outlooks by the International Energy Agency (IEA).

Our Response to Climate Change

Climate change is one of the most critical issues faced by humanity

and one of the most important considerations for any business

activity. In this context, we are expanding our use of renewable energy,

reducing process gases, and reinforcing process energy efficiency.

GHG emissions directly generated from our business sites and GHG

emissions generated due to our operations outside of our business sites

are both subject to our mitigation efforts. We are also moving forward

with various GHG emissions reduction projects across our entire value

chain from product development to manufacturing and logistics.

GHG Emissions Management

We continuously monitor GHG emissions generated from our global

business sites. Each site is required to enter GHG emissions data (e.g.,

power, fuel, semiconductor process gases) into the EHS system. Based

on the data, individual sites analyze the latest trends and the causes of

per-unit increases or decreases on a monthly basis. The relevant unit

in the company manages the integrated GHG emissions data globally

and veriﬁes the credibility and accuracy of the data through the annual

third-party audit.

Results of 474 GHG emissions reduction projects

GHG Emissions Reduction Compared to BAU (Scopes 1 and 2)

Renewable energy

use expansion

47%

Process gases*

reduction 41%

* Resulting from both reduced use

as well as treatment of gases

Manufacturing

process efficiency

improvement

10%

Equipment

operation

efficiency

improvement

Others

0.1%

A total of

10.16

million tonens CO

Climate Risk Management Process

Identify and assess risks

 Risks in business operation, product planning, and external developments are

identified and assessed regularly by our relevant organizational units including

EHS, marketing, sales, and compliance, based on environmental management

systems (e.g., ISO 14001, ISO 50001).

Incorporate risks into the corporate risk management process

 Risks related to individual countries’ climate change regulations are managed

in an integrated manner through the company-wide risk management system.

 Risks include region-specific regulations and market changes that may affect our

business operations and reputation.

Manage risks and opportunities

 Organizational units in charge of EHS monitor energy consumption,

GHG emissions, renewable energy use, and climate impacts

 Issues related to our global business sites are discussed and managed by

consultative bodies such as the EHS Council.

 Climate risks and opportunities are discussed and identified by the

Sustainability Council.

 Business opportunities are discussed by the Eco-Council and operationalized by

our relevant organizational units.

As a global ICT manufacturer involved in a wide

range of electronics products and components from

semiconductors to smartphones, TVs, and home

appliances, we are taking climate action to work

towards achieving net zero.

Climate

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 Carbon Reduction Committee establishes GHG emissions

reduction projects for semiconductor production sites and

monitors performance on a quarterly basis

 Implementation of GHG emissions reduction projects including

improving efficiency of process gas treatment facilities,

switching to high-efficiency equipment, and improving

manufacturing process efficiency

 Achieve net zero for the DX Division

 Improving efficiency of process gas treatment efficiency and

expand processing facilities

 Reduce boiler use by recovering waste heat

 Achieve net zero across all of our business and production sites

2030

Direct GHG Emissions Reduction Roadmap

Present

2050

RCS Treatment Process

Pre-treatment

scrubber

Treatment of high-

concentration

corrosive gases

RCS equipment

Catalytic

decomposition of

pre-treated gases

Post-treatment

scrubber

Post-treatment of

hydrogen fluoride

PFC scrubber

Retreatment of

decomposed residual

gases

Acid scrubber

Treatment of final

residual gases and

odor

Applying IoT Technology to Business Sites

IoT- and AI-based air conditioning solution

 Analysis of operating data of the central air conditioning system

 Setting automatic control for optimal efficiency

 Automatic adjustments by AI algorithms

Application to our business sites in Korea, Vietnam, and North America

 Average energy savings of 11-14% per year

 Planned to be applied to our business sites in Europe, Southwest Asia,

and Central and South America

 Reviewing potential application at our major suppliers

Improving Operational Efﬁciency

LNG use reduction

 Recovering waste heat through coolant system and heat exchanger

 Adjusting the air temperature and flow of the outdoor air control unit

Reduction of power consumption in the semiconductor manufacturing

process

 Reducing equipment testing time through process optimization

 Temperature management of supplementary equipment

 Applying high-efficiency equipment and neutralizing wet scrubbers

Engaging Employees in Everyday

Energy Saving Activities

Encouraging employees at our global manufacturing sites to

take part in energy-saving activities

Monitoring energy consumption

 Switching off equipment when not in use

 Energy-saving activity patrols

Reduction of Direct GHG Emissions

We are committed to reducing direct carbon emissions even as

semiconductor production increases through solutions based on our

innovative and new technologies that improve the efﬁciency of process

gas treatment.

Regenerative Catalytic System (RCS)

RCS is an integrated large-capacity greenhouse gas treatment facility

developed by Samsung – the first of its kind in the semiconductor

industry. The facility outlets are linked to the rooftop where the process

gas are treated with catalysts at a low temperature. By doing so, less fuel

is consumed and fewer air pollutants are emitted in the process.

Reducing Energy Use in Manufacturing Processes

To reduce LNG consumption at our business sites, we recover and reuse

waste heat generated on site. The waste heat generated from facility-

cooling water and wastewater effluents at our Giheung, Hwaseong,

and Pyeongtaek sites is recovered and reused as a heat source for

process water and HVAC systems. We expect to enhance waste

heat recovery rate through new technologies and install facilities

Semiconductor Process Gas Reduction

To reduce semiconductor process gases, we focus on improving the

efficiency of process gas treatment, reducing overall process gas use,

and developing GHG alternatives. In 2022, we expanded installations of

Regenerative Catalytic Systems (RCSs) in our facilities to treat process

gas more efﬁciently and reduce direct greenhouse gas (GHG) emissions.

that can replace LNG-based heat sources in our business sites. In

addition, we are reducing power consumption in the semiconductor

manufacturing process through optimization, reducing equipment test

time, temperature management of auxiliary equipment, applying high-

efficiency equipment, and neutralizing wet scrubbers.

Reducing process gas use

 Optimizing treatment time, process, and clean recipe

Developing alternative gases

 Developing alternative gases with low global-warming

potential – replacing PFC gases in select products e.g., G gas

developed as an alternative to CF

Our Efforts to Reduce Process Gases

Minimizing process gas input

 Expanding the use of Regenerative Catalytic System (RCS)

 Development and application of new catalysts for RCS with

up to 95% processing efficiency

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Use of Renewable Energy

(unit: GWh)

Average annual increase in the use of renewable

energy (2018-2022)

8,704

2022

3,220

1,356

20192018

4,030

2020

5,278

2021

DX Division

DS Division

Company-wide

Renewable Energy Transition Rate

Renewable Energy Expansion Roadmap

Declared plan to expand renewable energy use

(beginning with 100% in the US, Europe, and China)

Completed the transition to 100% renewable energy in the

US, Europe, and China

Completed the transition to 100% renewable energy at all of

DX Division’s business sites in Korea and manufacturing sites

in Vietnam, India, and Brazil.

Transition to 100% renewable energy in Central and

South America

Transition to 100% renewable energy at all of our global

business sites

2018

2020

2022

2025

2027

2050

Transition to 100% renewable energy at all of our business

sites around the world

Expansion of Renewable Energy Use

We engage in diverse activities to transition to 100% renewable energy

at all of our business sites by 2050. In 2022, DX Division's business sites

in Korea as well as manufacturing sites in Vietnam, India, and Brazil

completed their transition to renewable energy use.

The total amount of renewable energy use in 2022 stood at 8,704 GWh –

a 65% increase from the previous year – reaching a 31% transition rate.

RE100 and ACEC

As part of our commitment to transition to renewable energy, we

joined RE100 (a global initiative that drives energy transition) and

continuously seek to develop competitive renewable energy projects.

We are a founding member of the Asia Clean Energy Coalition (ACEC),

working with the Climate Group that leads RE100 and the World

Resources Institute (a global think tank focused on environmental

issues).

ACEC, which consists of corporations, renewable energy-based power

generators, and investors, aims to contribute to fostering a renewable

energy ecosystem for Asian countries that serve as the global

manufacturing hub.

Through these initiatives and collaborations, we strive to expand the

renewable energy markets in Asia including and advance the use of

renewable energy in the region.

Renewable Energy Transition Status by Region

As part of efforts to expand renewable energy use, our US

subsidiaries installed photovoltaic power generation equipment

and a wind power station, while also purchasing renewable energy

certificates (RECs) between 2017 and 2018. In November 2019, our

semiconductor manufacturing site in Austin, Texas, concluded a PPA on

a 75MW-capacity wind power generation project with Apple, eBay, and

Sprint and is gradually expanding PPA contracts. Based on such efforts,

the US subsidiaries achieved the transition to 100% renewable energy in

2020, received the 2019 Green Power Leadership Award for Excellence

in Green Power Use from the US Environmental Protection Agency (EPA)

in September 2019. Samsung Electronics ranked 15

among more than

700 participating companies, 7

in the Tech and Telecom sector, and

among companies sourcing 100% renewable energy in the US EPA’s

Green Power Partnership program in June 2023.

Europe

Our manufacturing sites in Hungary, Slovakia, and Poland completed

the transition to 100% renewable energy for their electricity use in

2020 by adopting the Green Pricing System and purchasing RECs.

India

Our manufacturing site in Chennai completed the transition to 100%

renewable energy by signing renewable energy supply contracts with

local photovoltaic power, wind power, and biomass power stations and

by purchasing RECs. Our business site in Noida also completed the

transition by installing photovoltaic power generation equipment of

0.8MW-capacity at parking lots and pedestrian paths and purchasing

RECs.

Vietnam and China

Our manufacturing sites in Vietnam and China completed their

transition to 100% renewable energy as of 2022 through the purchase

of RECs. We plan to utilize PPAs as well, according to developments in

the local renewable energy policies and supply plans.

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Value Chain Carbon Reduction Roadmap

Present

2030

Energy efficiency of leading models of seven major product

categories* improved by 16% compared to 2019 using high

energy efficiency technologies

Improve energy efficiency of leading models of seven major

product categories* by 30% compared to 2019

* Smartphone, TV, refrigerator, washer, air conditioner, PC,

and monitor (with equivalent performance)

Brazil

Our manufacturing site in Campinas completed the transition to

100% renewable energy in 2021 by signing renewable energy supply

contracts with local wind power, photovoltaic power, and hydropower

stations. Our business site in Manaus completed the transition in 2022

based on RECs that involve local renewable energy suppliers.

Mexico

Our manufacturing site in Mexico expanded its share of renewable

energy to 73% in 2022 from 4% in 2020 through diverse measures

including purchasing RECs. It is seeking additional renewable energy

suppliers and plans to achieve the transition to 100% renewable energy

by 2025.

Korea

Our Suwon and Giheung business sites are equipped with

1.9MW-capacity and 1.5MW-capacity photovoltaic power generators,

respectively. Our Pyeongtaek business site is equipped with a

0.4MW-capacity photovoltaic power generator and a 738RT-capacity

geothermal power generator. At the Onyang business site, we installed

a 0.08MW-capacity photovoltaic power generator in 2021 as well as

a 0.2MW-capacity generator in 2022. All of the DX Division’s business

sites achieved the transition to 100% renewable energy using the

Green Premium program initiated in 2021. We will continue to install

photovoltaic power equipment and expand renewable energy supply

contracts, including PPAs, at our domestic business sites.

Activities to Reduce Global GHG Emissions

Our priority projects for reducing GHG emissions center on in-house

energy efficiency improvement, energy consumption reduction, and

energy transition activities at our business sites in Korea and other

regions.

We are participating in the Clean Development Mechanism (CDM)

initiative designed to help mitigate local communities’ GHG

emissions through the distribution of clean cook stoves in Kenya and

high-efficiency refrigerators in India. We distributed 3.64 million

high-efficiency refrigerators over eight years prior to 2020 and

contributed to the reduction of 550,000 tonnes of GHG emissions,

thereby obtaining Certified Emissions Reductions (CERs) issued by

the UNFCCC. We are exploring business opportunities based on our

voluntary reduction projects.

We will prioritize carbon dioxide removal (CDR) projects centered on

permanently removing GHGs and nature-based reduction projects

targeting countries where we operate that are particularly vulnerable

to the impacts of climate change.

Moreover, when deciding which project to pursue, we will also take

into account each project's expected contribution to the 17 Sustainable

Development Goals (SDGs) to ensure sustainability is driven in a

holistic manner.

Value Chain Carbon Reduction

Manufacturing is only one of many stages in the entire product life

cycle. We strive to reduce carbon emissions across all stages of the

product life cycle including distribution, sales, and use in collaboration

with our consumers, suppliers, and other stakeholders.

In particular, we plan to utilize ultra-power-saving technology for

semiconductors, which is expected to drastically reduce the memory-

related power consumption of data centers and mobile devices from

2025. We plan to apply the technology to the leading models of our

seven major product categories (smartphone, refrigerator, washer, air

conditioner, TV, monitor, and PC) and improve their power consumption

by 30% by 2030 compared to the 2019 models with equivalent

performance.

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Climate Action Together with Our Suppliers

As we are aware that it takes the entire supply chain to tackle

climate change, we strive to engage our suppliers in our journey.

We established a GHG emissions reduction system in 2022 and have

launched substantive reduction activities since becoming a CDP Supply

Chain member in 2019. We provide training for our suppliers to build

their GHG emissions management capacity based on our in-house

guidelines, helping them accurately assess their emissions and set

reduction targets. We have also developed reduction support programs

tailored to various stages and continue to update our GHG emissions

management policy.

More details about our efforts to ensure our suppliers’ GHG emissions

reduction can be viewed in sections, “New Environmental Strategy”

and “Sustainability in Supply Chain”.

Semiconductor Life Cycle Assessment (LCA) Process

We established the LCA process to accurately assess the environmental

impact and carbon footprints of our semiconductor products across their

entire lifecycles. Based on ISO 14040, 14044, and 14067, the operation

of this process was verified by a third-party organization to ensure the

credibility of all data produced.

To reduce the environmental impact of semiconductor products, we

plan to establish a comprehensive management system of their carbon

emissions and their use of water and other resources.

Semiconductor

Starting with the Green Memory Campaign in 2009, we have continued

to showcase memory solutions centered on low energy consumption

every year to help the industry contribute to the wellness of our planet.

Low-power semiconductors are essential to reducing GHG emissions

generated from data centers and diverse IT devices. We focus on

developing semiconductors that can reduce the carbon footprints of

our products.

We enhanced the energy efficiency of our Galaxy

Book3 ultra by employing circuits designed to

prevent the energy loss of the display as well as

SOC.

SolarCell Remote

We continually seek ways to contribute to

environmental conservation through our

remote-control products as well. SolarCell

Remote was developed as an extension of our

efforts to reduce the number of disposable

batteries used in TV remote controls that were

being replaced about once a year. This low-

power remote control, which can be charged by

both natural and indoor lighting, continues to be

applied to a growing number of our TV models.

SolarCell Remote applied to all

TV models released in 2022

Equivalent to a reduction of

approximately 200 million

disposable batteries

GHG emissions reduction

in the product use stage:

914,000

tonnes CO

* 13 product categories (refrigerator,

air conditioner, washer, dryer,

microwave oven, vacuum cleaner,

TV, monitor, PC, smartphone, tablet,

wearable, and base station)

** Compared to BAU

(Baseline year: 2021)

Product energy consumption

improvement

2.6

* Compared to BAU

(Baseline year: 2021)

Carbon Emissions Reduction in the Product Use Stage

Our Product Energy Efﬁciency Achievements in 2022

Third-party LCA veriﬁcation certiﬁcate

SmartThings Energy

SmartThings Energy is our AI-based solution

that enables users to maintain the optimal

energy efficiency of their home appliances via

the smartphone. It supports efficient energy

use based on the IoT platform.

Low-Power Memory Semiconductor

Reducing the power consumption of global data centers

 Developed data center-exclusive high-performance SSD (PM9A3,

E1.S) with power efficiency improved by 50% compared to previous-

generation products

 Application of advanced technologies of extreme ultraviolet (EUV),

high-K metal gate (HKMG), and through-silicon via (TSV) to improve

performance while minimizing power consumption

System Semiconductor

Developing energy-efficient high-performance semiconductors

 Exynos Processor: Offering our exclusive Advanced Multi-IP Governor

(AMIGO) solution and improved processing units (e.g., CPU, GPU, NPU) to

enhance power efficiency when running high-definition, high-end games,

and programs

 Image sensor: Realizing maximized per-inch resolution through advanced

ultrafine pixel technologies and minimizing the energy required for

product operation (e.g., preview movements) through design optimization

 DTV SoC: Minimizing power consumption through the integration of high-

resolution upscaling ICs and combining two TCON chips used for 8K TV

models into one

Decarbonizing the Use Phase of Connected Devices (DUCD) Project

Led by the Carbon Trust, the DUCD project aims to develop a more

accurate method for measuring the carbon emissions and reduction

pathways in the use phase of connected devices. Since September

2022, we have been working with Amazon, Meta, Microsoft, and Sky

(Comcast) as a founding member of the DUCD secretariat.

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Using Recycled and Recyclable Materials

Samsung Electronics continuously seek to expand the application

of recycled and recyclable materials to our products. We developed

innovative technology to recycle discarded fishing nets, a type of

plastic debris that threatens the marine environment, and continue

to diversify the types of recycled and recyclable materials used in our

products, including recycled aluminum and glass, to improve resource

circularity.

Plastic recycled from discarded fishing nets has been applied to

smartphones including Galaxy S22 series, S23 series, Z Fold4/Flip4,

Buds2 Pro, Galaxy Book3 series, remote control for our lifestyle TV

models (inner parts and bracket), Jet Cordless Stick Vacuum 4.0 series

(filter), and the attachable Less Microfiber Filter.

We also used recycled aluminum in the Galaxy S23 series and the

exterior of the Bespoke Infinite refrigerator line, while we continue to

expand the application of recycled glass.

Resource Circularity Roadmap

2030

Present

2050

Increasing the Use of Recycled Resin in Plastic Parts

We aim to drastically expand the use of recycled resin in plastic parts.

In 2022, we used 98,826 tonnes of plastic with recycled resin, which

marks a three-fold increase compared to the previous year and is

equivalent to 14% of our total plastic use. We will apply recycled resin

to 50% of plastic parts by 2030 and 100% of plastic parts by 2050.

Use of Plastic with Recycled Resin

(Unit: 1,000 tonnes)

310

2021

276

2020

409

2022

●

Annual amount

●

Cumulative amount from 2009

 Applying recycled material to parts of Galaxy smartphones,

earbuds, tablets, and laptop

 Producing pellets using exclusive formulation technology

Step 3

Step 2

 Sorting

 Cleaning

 Recovering polyamide fishing nets discarded into the sea

Step 1

Step 4

Expanding the Use of Recycled and Recyclable Materials

Sea-Driven Innovation – Discarded Fishing Nets Repurposed

into Galaxy Smartphones

Plastic pollution caused by fishing nets, of which approximately 640,000

tonnes are discarded into the ocean every year – poses a severe threat

to the marine ecosystems. We have joined hands with industrial experts

and mobilized our innovative technologies to seek solutions to this

problem. The high-performance polyamide resin recycled from ocean-

bound plastics has been applied to various parts of our Galaxy product.

We will continue to expand the application of such materials thereby

helping our users pursue sustainability in their everyday lives.

 409,000 tonnes of plastic with recycled resin used

cumulatively since 2009

 Ocean-bound plastic recycled and applied to DX products

 Circular Economy Lab established

 Application of recycled resin* to 50% of plastic parts

for DX products

 Establishing a recycling system for minerals recovered

from all discarded batteries collected

 Application of recycled resin* to 100% of plastic parts for DX

products

* Ratio of recycled content varies by plastic parts

 Cutting

 Extruding of the fishing nets

We are driving progress toward a circular economy

by using recycled and recyclable materials, as well as

recovering resources from discarded products. We are

creating a loop of resource circularity in collaboration

with customers, suppliers and various partners.

Circular

Economy

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Applications of Eco-packaging by Product Category

Displays and Home Appliances

We use recycled expandable polystyrene (EPS) cushions in the

packaging of our major TV models and are expanding their application

to all monitor and signage models released in 2023. In addition, since

2020 we have engaged our users in upcycling the packaging materials

of our TVs – repurposing them into small furniture and objects for pets-

and have expanded the scope to packages of all TV models and select

home appliances including air purifiers, etc.) released since 2021.

Mobile Devices

For the Galaxy S23 series released in 2023, 100% of the packaging box

was made from recycled paper. The plastic films previously attached

to the front and back of the product were fully replaced with 100%

recycled paper as well. We are continuing our efforts to minimize

our environmental impact by eliminating single-use plastic from the

packaging and reduce GHG emissions from product transportation by

making packages smaller and lighter.

Expanding the Scope of Recycled Material Use

Aluminum The exterior of the Bespoke refrigerator line released in

2023 is made with impurity-free and evenly colored aluminum in a

three-tier (new-recycled-new) structure using 37% recycled aluminum.

The volume keys, side key, and SIM tray of the Galaxy S23 series are

made with 28% pre-consumer aluminum scrap obtained from the

manufacturing processes.

Glass The Galaxy S23 series is the ﬁrst device to use Corning

Gorilla

Glass Victus

2, which contains an average of 22% pre-consumer

recycled glass for front screen and back cover.

Our Efforts to Recycle Byproducts from Semiconductor

Manufacturing

Recycling Previously, end-of-life wafers were incinerated for

security reasons. However, we developed a way to recycle them into

supplementary materials for the production of aluminum bars. We also

introduced recyclable eco-drums designed to minimize the residue of

chemicals typically left behind in other chemical storage drums. This

eliminated the need for their neutralization.

Waste Reduction We recycle nonferrous metals such as aluminum,

copper, and titanium used in the manufacturing process into resources

of economic value.

Repurposing into High-Added-Value Materials As an extension of

our efforts to repurpose waste into resources, we utilize separation

and reﬁnement technologies to turn waste dimethyl sulfoxide (DMSO)

generated during the manufacturing process into high-purity DMSO.

We also convert ion exchange resins into high-quality recycled

materials using our separation technology.

Discarded PET Bottles We use cleanroom supplies (e.g., clothing,

wipes) produced from discarded PET bottles that are collected on the

premises of our business sites in Korea.

Extending Product Lifecycles

We work to extend our products’ lifecycles to reduce the use

of resources and carbon emissions and thereby minimize our

environmental impact. In this context, we focus on enhancing their

durability, repairability, and upgradability. We also operate the

Samsung Care+ program to minimize burden on customers with regard

to maintenance and repair and help them use our products longer.

Durability

All of our products undergo testing under international standards

and also our exclusive in-house stress testing during the product

development stage to ensure that our customers can use the

purchased products for a longer period. Through these product tests,

we ultimately strive to help our users consume resources longer and

more efﬁciently.

International-standard testing

Strength, drop, water-resistance

and lifespan tests

In-house stress testing

Testing at different conditions and

for different environments

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Upgradability

Software Update

We provide four generations of OS upgrades and five years of security

updates for all Galaxy S23 series models. As a result, we anticipate

users will enjoy their Galaxy mobile devices more securely for a longer

period of time.

Samsung Certified Re-Newed Program in the US

The Certified Re-Newed program offers customers refurbished and

upgraded smartphones with a one-year warranty. Certified Re-Newed

devices start their journey as trade-in devices with new device

purchases. They then go through a rigorous quality inspection of more

than 100 points to ensure like-new quality. They are refurbished in a

Samsung facility where many of our new smartphones are also built,

and parts are replaced with 100% genuine parts quickly and easily.

Every Certified Re-Newed device gets a brand new battery which

ensures like-new long-lasting performance.

Repairability

We consider repairability at the product manufacturing stage. Our

research is focused on developing products that are easy to repair for

extended use.

Highest Grade by France’s Repairability Index

Since January 2021, all electronic goods marketed in France must

specify the repairability grade known as the Repairability Index (Indice

de Réparabilité). Our various products including smartphones such as

the Galaxy S23 series, Galaxy Book3, TV, front-load washer, dishwasher,

and vacuum cleaner obtained the highest grade of Dark Green. We

continue to keep consumers informed via repair manuals and other

channels and strive to ensure the affordability of materials and stable

supply of parts.

Efforts to Establish a Repairability Network in the US

We offer a vast network of repair options for our customers in the US,

including self-repair options, mail-ins, "We Come To You" van services,

and same-day repair for Galaxy devices in over 2,000 retail locations

across the country. Our network of mobile repair providers include

more than 700 Independent Service Providers (ISPs).

Modular Design for Resource Efﬁciency

Bespoke Refrigerators The modular Bespoke Refrigerator line enables

users to refresh their fridge exterior by changing the customizable door

panels, without having to replace the entire unit.

Bespoke Cube™ Air Bespoke Cube

Air is our modular air purifier line.

It allows consumers to purchase and stack additional units of desired

capacity as needed, thereby enabling resource efficiency.

Designed to maximize

recyclability of parts

Designed for

easy disassembly

Samsung Certified Re-Newed smartphones pass a more

than 100-point inspection to ensure like new quality, and

are covered by a one year warranty

Every Samsung Certified Re-Newed smartphone is given a

brand new battery.

Our trade-in program collects used devices, giving them an

extended life cycle.

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Repair Services

Product lifecycles can be extended without compromising performance

by promptly diagnosing and correcting each product’s cause of

malfunction. To this end, we operate a total of 13,687 service centers

in 216 countries as of 2022. Our staff members and repair technicians

are trained to provide top-tier services pursuant to our service process

guidelines. We also offer various training programs including those on

product use and new product features.

Expansion of E-Waste Collection System

We have collected 5.69 million tonnes of e-waste in cumulative sum

from 2009 to 2022 through our e-waste collection system operated

in over 50 countries. We plan to expand the reach to more than 180

countries where our products are marketed by 2030 and increase the

cumulative amount of collected e-waste to 10 million tonnes by 2030

and 25 million tonnes by 2050.

Collecting and Recycling E-Waste

Individual products are made with a wide range of materials and can thus

be viewed as a combination of resources. We collect and reprocess e-waste

to ensure that valuable resources are recovered and given new life.

Amount of Collected E-Waste

(Unit: 1,000 tonnes)

5,099

559

5,699

600

4,540

506

2021 20222020

●

Annual amount

●

Cumulative amount (from 2009)

 Asan Recycling Center, Korea’s first e-waste recycling center,

opened in 1998.

 The e-waste takeback system was set up at regional logistics centers.

 A cumulative total of 30,152 tonnes of valuable resources have been

recovered at Asan Recycling Center (as of 2022).

 Requirements for Recycling Service Partners

→ We enacted the Requirements for Recycling Service Partners, which

mandate the adherence to environment, safety, and health laws and the

prohibition on the illegal export of waste.

E-Waste Takeback and Recycling Program in Korea

 The voluntary drop-off program is in operation in all 50 states.

 In partnership with uBreakiFix which specializes in mobile device repair,

we provide e-waste drop-off points at over 780 branches (from 2020).

E-Waste Takeback and Recycling Program in the US

Sustainability in Product Repair Services

Repair

We offer our repair service that minimizes parts replacement and reuses

existing parts as much as possible. As of 2022, this service is available for

smartphone repair in 38 subsidiaries including the US and Germany.

Paper-Free

We seek to minimize the use of paper for our repair services and issue

digital documents (e.g., submission slips, receipts) to save resources. As of

2022, this service is available in 49 subsidiaries including India, Germany

and Brazil.

Packaging for Repaired Products

We use environmentally responsible packaging materials when delivering

repaired products back to customers. As of 2022, this service is available

in 29 subsidiaries including the Netherlands and the UK.

Packaging for Repair Service Supplies

Repair service supplies are packaged with environmentally responsible

packaging materials. As of 2022, this is applied to our warehouses in Korea

and Europe and 12 global production sites.

Samsung Recycling

We have installed smartphone and accessory drop-off points at our service

centers in major cities including Paris and London to collect e-waste.

Delivery

We deliver repaired products back to customers using environmentally

responsible vehicles transportation such as bicycles and EVs. As of 2022,

this service is available in seven subsidiaries including the Netherlands

and Germany.

E-Waste Collection and Recycling Process

Collecting

e-waste

A total of 5.69

million tonnes of

e-waste collected

globally in

cumulative sum

(2009-2022)

Recovering

valuable resources

Recovering copper,

aluminum, steel,

plastics, among

others, through

pre-processing

such as sorting

and crushing

Recycling recovered

resources

Recovered resources

used in the production

of Samsung parts as

well as other branded

products

Present

E-Waste Collection and Recycling Roadmap

2030

2050

 Operating e-waste collection programs in over 50 countries

 Operating e-waste collection programs in all countries

in which our products are marketed

 Collecting 10 million tonnes of e-waste cumulatively from

2009

 Collecting 25 million tonnes of e-waste cumulatively

from 2009

 E-waste takeback and recycling programs in 37 countries in EU

· E-waste takeback, recycling, and free door-to-door visits for e-waste

takeback programs in India

· Voluntary drop-off points at service centers in South Africa

Programs in EU, Asia, and Africa

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Status of our E-Waste Takeback and Recycling Programs around the World

We operate diverse recycling programs in over 50 countries including Korea. Based on country-specific conditions, we either directly operate recycling centers or collaborate with relevant organizations or service providers to

collect and recycle e-waste.

Recycling program by country

E-waste collection system by region

Requirements for Recycling Service Partners

South Africa

 Offering voluntary

drop-off points at

service centers

Europe

 Operating a takeback and recycling

programs in 37 countries

Vietnam

 Offering voluntary drop-off points at

service centers

Singapore

 Operating a takeback and recycling

program

Canada

 Operating a takeback program in all 10 provinces

 Operating a voluntary drop-off program in all 50 states

 Collaborating with uBreakiFix, a US-based chain of mobile

device repair shops

Australia

 Operating a takeback and

recycling program for TVs,

computers, and printers

 Participating in a voluntary

drop-off program for mobile

phones

India

 Operating a takeback and

recycling program

 Offering free door-to-door

visits for e-waste takeback

Korea

 Operating a takeback network (dealerships

and logistics bases)

 Asan Recycling Center

 Offering free door-to-door visits for

e-waste takeback

Japan

 Participating in takeback and recycling

consortium

Türkiye, Israel, Russia,

Belarus, Georgia

 Participating in the

takeback and recycling

program

China

 Operating a takeback and recycling

program

Colombia, Peru, Costa Rica, Brazil

 Operating a voluntary drop-off program

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Tackling Environmental Challenges with

Innovative Technologies

Carbon Capture Technologies

We established the semiconductor-industry's Air Science Research

Center (previously Carbon Capture Research Institute) in September

2021 to develop and commercialize technologies for capturing and

utilizing carbon emitted from our semiconductor manufacturing

sites. We have engaged in research on original technologies to

capture emitted carbon with greater efficiency and transform them

into resources. We are also pushing ahead with various joint projects

with universities and research institutes in Korea and beyond. Our

carbon capture technologies will be applied to our semiconductor

manufacturing sites starting in 2030, and their application will be

expanded to our suppliers and other Samsung afﬁliates.

Process Gas Emission Reduction Technology

We operate Point of Use (POU) scrubbers and Regenerative Catalytic

Systems (RCSs) optimized for individual semiconductor manufacturing

sites to reduce F-gases. Cheonan site with a low air volume installs a

POU scrubber at the end process of production to reduce F-gas while

Giheung, Hwaseong, and Pyeongtaek sites with a high air volume have

POU scrubbers as well as the RCSs installed on the rooftop.

Carbon Capture and Utilization

We strive to take the lead in developing

technologies that are environmentally

responsible while enabling an ecosystem

that fosters clean and responsible technology.

We collaborate with universities, research

institutes, and start-up communities to ﬁnd

solutions for global environmental challenges

and invest in innovative ideas.

Clean Tech

Ecosystem

Capture

Capturing GHG emissions

Useful Resource

Transforming them into resources

Particulate Matter Reduction Technologies

We established the Air Science Research Center (previously Particulate

Matter Research Institute) in January 2019, dedicated to developing

innovative filters and original technologies to detect, analyze, and

remove particulate matter. We successfully developed the world’s ﬁrst

air puriﬁcation ﬁlter capable of removing both ﬁne particles and gases,

which can be easily cleaned with water and reused for up to 20 years.

We have developed a prototype product based on this technology

and are applying it to our semiconductor manufacturing sites, bus

terminals, and underground parking lots. From 2030, we will expand its

application to our suppliers and other Samsung afﬁliates.

Original Technology Research Areas

Technologies Contributing to a Circular Economy

We established the Circular Economy Lab in July 2022, which

specializes in research on material recycling process and technology,

and the application of recycled materials to products to maximize

resource circularity. Through the Lab, we have collaborated with

various research institutions and corporations to research material

recycling and waste-to-resource technologies with the aim of

ultimately manufacturing all of our products with recyclable materials.

* Testing of a particulate matter reduction system

Diagnosis of fine

particles and causative

gases

Analysis of the root

causes of air pollution

Development of

sensors, catalysts, and

systems for particulate

matter reduction

Developing recycled and

recyclable materials

Seeking ways to recover resources

from waste

Carbon Capture Technologies (Applicable Technologies)

Membrane gas

separation

Catalyst and

plasma

Direct

electrochemical

conversion

Biotechnology

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Innovative Solutions for Environmental Challenges

C-lab Environmental Solutions

Through C-Lab, we discover and invest in innovative ideas inside and outside Samsung to tackle environmental issues.

Micro Plastic Reduction Technologies

To address the challenge of marine micro plastic pollution, we develop

technologies that can reduce the amount of microfiber released into

the ocean. In collaboration with Patagonia, we developed a wash

cycle that reduces microfiber emissions in our washing machines and

an external microfiber filter that can be applied to existing washing

machines.

C-Lab

Funding for Suppliers’ Net Zero Efforts and Investment

in Environmental Resources

Target Areas

· Zero emissions, renewable

energy, and resource circularity

technologies

Types of Support

· Funds for carbon emissions reduction

or environment and safety facilities

· Technological development funds

· Working funds

Expanding Investment in Prospective ESG Startups

Technologies related to zero

emissions, renewable energy, and

resource circularity

Technologies related to

high-efficiency, low-energy,

environmentally responsible

materials and parts

C-Lab Inside

Fostering creative ideas of our employees

Galaxy Upcycling

Recovering and upcycling unused

Galaxy smartphones

Eco-Packaging

Upcycling TV and home appliance

packaging into home decor items

C-Lab Spin-of f

Supporting the foundation of startups stemming from C-Lab Inside projects

EVAR

EV chargers using discarded batteries

and autonomous EV charging robots

AIMT

Insulators made with recycled PET

bottles

C-Lab Outside

Supporting growth of startups with potential for synergy with Samsung

60Hertz

Photovoltaic and wind power generation projection

technologies and virtual power station solutions

Bluelabs

Water purification agents made from oyster shells

Terra Block

Recycling solutions for waste plastic in lieu of incineration

Inertia

Biodegradable absorbers that do not

release micro plastics

QuantumCat

Catalysts for air purifiers and air

conditioning systems to remove

harmful gases

RE:harvest

Food upcycling solutions using

beer-brewing byproducts

Marine Innovation

Packaging solutions using marine

plant byproducts

In January 2023, at the Consumer Electronics Show (CES), Samsung

Electronics introduced a new washer with a Less Microfiber Cycle that

reduces emissions by 54 percent.

Samsung has now brought to market a Less Microfiber Filter that can

be attached easily to any existing front-loading washer. Ocean Wise has

verified that this filter reduces microfiber shedding by 98 percent. It has

been introduced into the Korean and European markets in June and will be

introduced in in North America in September 2023.

“We can’t thank Samsung’s people enough for the quality of both their

engineering and sustainability efforts, which have had support from

throughout the company—from the chairman to the seasoned engineers

to gifted younger employees who helped make this advance possible. A

collaboration between a global electronics giant and a company that touts

Earth as its sole shareholder may be an unlikely combination, but many

such collaborations are needed for the future.”

- Vincent Stanley, Director of Philosophy, Patagonia

CASE

See article

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Managing On-Site Waste

We strive to advance a circular economy by uncovering the added value

of waste and developing recycling technologies. By 2025, we aim to

attain the highest Platinum designation for all of our manufacturing sites.

We applied new technologies to our semiconductor manufacturing

sites to recycle Epoxy Molding Compounds (EMCs) and Clean Vacuum

(CV) dust, previously buried in landfills, to exceed the criteria for the

Platinum designation of Underwriters Laboratories (UL)’s Zero Waste-

to-Landfill program.

The planet’s resources are limited, and we cannot

afford to squander them. That's why we focus

on recycling resources throughout the product

development and manufacturing processes

as well as developing technologies that remove

pollutants. We endeavor to build a healthy and

safe working environment for all.

Sustainability in

Operations

Zero Waste-to-Landfill Mark

Our 23 manufacturing sites have obtained the Zero Waste-to-Landfill

mark* granted by Underwriters Laboratories. By 2025, we plan have all

of our manufacturing sites designated as Platinum.

* Zero Waste-to-Landfill program: This program assesses companies’ resource

circularity efforts and designates them in four grades: Platinum for 100% waste

diversion, Gold for 95-99%, Silver for 90-94%, and a Landfill Waste Diversion

Claim for 80% or higher. Decimals are rounded off to the nearest whole number

(99.5% recognized as 100%).

Platinum

Korea (Suwon, Giheung,

Hwaseong, Pyeongtaek, Onyang, and

Cheonan), China (Xian and

Suzhou(2)), Slovakia, Brazil (Campinas),

and India (Chennai)

Gold

Korea (Gumi and Gwangju),

US (Austin), Poland, Hungary,

Vietnam (Ho Chi Minh), Thailand,

Brazil (Manaus), and Mexico

Waste Recycling Goals and Status

Zero Waste-to-Landﬁll Mark and Waste Reduction Goals

Current Status

· Achieved Platinum of Zero Waste-to-Landfill at our semiconductor

manufacturing sites for the first time in the industry in 2021

· Reached 97% waste recycling rate at all semiconductor manufacturing sites

Before After

Discarded wood and outdoor

air control filters made with

complex materials

Incinerated

Recycling based on our material

separation and processing technology

Consumable wafer polishing

supplies contaminated with

potentially harmful substances

Incinerated

Recovering and recycling metals from

consumables

EMCs Buried

Recovering and recycling them into

new plastic materials

CV dust Buried

Recycling based on our metal recovery

technology for gold, tungsten, etc.

1) Epoxy molding compounds that are added in the final packaging stage to

protect semiconductor circuits from external shocks

2) Clean vacuum dust captured in semiconductor process equipment

Present

Roadmap for Obtaining the Highest Zero Waste-to-Landﬁll

Designation

 Platinum designation of zero waste-to-landfill obtained by

DS manufacturing sites - first of its kind in the semiconductor

industry

* Excluding legally non-recyclable waste

‧

Zero Waste-to-Landfill mark to be obtained by all of our

manufacturing sites

‧

Platinum designation to be obtained by all of our

manufacturing sites

2023

2025

Attain Zero Waste-

to-Landfill mark for

all of our business

sites globally

Achieve 99.9%

waste recycling

rate by 2030 at our

semiconductor

manufacturing

sites

Reduce non-recyclable

waste to less than

2,000 tonnes by 2030

at our semiconductor

manufacturing sites

globally

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Reinforcing Waste Sorting

We reinforced our waste sorting system to better recycle waste

generated from everyday activities on our premises in Korea. Since

2021, the Suwon and Gwangju business sites have installed 480 food

waste decomposing devices in the employee lounge to help recycle

both food waste and containers.

We have paper cartons collected on site recycled into toilet paper that

is donated to local welfare facilities. We encourage our employees to

take part in this activity by recognizing their participation as volunteer

work. We plan to engage more of our business sites in these activities

in the future.

Saving 36.0 million

disposable plastic

bags per year

Saving 53.7 million

pieces of disposable

tableware per year

Saving 5.0 million

disposable cups per year

Saving 10.5 million

PET bottles per year

Reducing the use of disposables by 866 tonnes per year

Recognition of Circular Resources

In December 2019, our Onyang business site became the first in the

industry to be granted the Recognition of Circular Resources by the

Geumgang River Basin Environmental Office. It also attained the

Quality Mark Certification for Circular Resources from the Korea

Environmental Industry and Technology Institute for the first time in

the industry in October 2020. The DS Division continues to expand the

range of certified items every year.

In 2021, the DS Division's business sites in Onyang (7), Cheonan (2),

Giheung (1), Hwaseong (1), and Pyeongtaek (1) were additionally

certified for recycled items including the 12-inch wafer box and three

nonferrous metals. This led to a reduction in waste generation by 2,227

tonnes per year.

In 2022, 14 items at the Onyang business site, including the cover tray,

and three items at the Cheonan business site, including paper tubes for

release film, were granted the Recognition of Circular Resources, which

contributed to reducing waste generation by 3,024 tonnes per year.

Sewage Sludge Recycling

In order to increase the added value of waste, we recover and recycle

copper from sewage sludge from the semiconductor manufacturing

process. We also developed technology to produce an alternative for

fluorspar required for steelmaking in collaboration with Hyundai Steel.

Sewage sludge, which used to be sent to cement factories, has now

become an important resource in many different areas.

Waste Reduction through Recognition of Circular Resources

* A type of ﬁlm used for product protection

2020

1,351tonnes

2021

2022

2,227tonnes

3,024tonnes

2021

12-inch wafer box and three

nonferrous metals

2,227

tonnes

2022

Paper tube for release film*

and cover tray

3,024

tonnes

Suwon Business Site Recognized as an Outstanding

Green Company by Korea's Ministry of Environment

In December 2022, our Suwon business site received

the First Place Prize (Minister of Environment Prize)

for the Outstanding Green Company Awards in

recognition of its environmental practices.

Green Companies are designated among those

noted for their contribution to the environment after

a stringent review every three years, and among

the Green Companies, those with excellent performance is recognized as

Outstanding Green Company.

Our Suwon business site installed a photovoltaic power facility in

cooperation with Suwon City. We also try to minimize our environmental

impact and prevent accidents through establishing a chemicals

management system and air pollutant monitoring system, while focusing

on recycling waste and improving our suppliers’ ESG management

capacity.

We will continue to work closely with our suppliers and the local

communities to address climate change.

Raw Material and Energy Efficiency Improvement

We have introduced a more advanced injection molding process for

large-sized home appliances, thereby improving raw material use

and energy efficiency. The existing 12-plate mold for the rear parts

for 85-inch TV models and cover parts for 65-inch TV models was

simplified into a 6-plate mold, and this led to a weight reduction by

more than 18%. We also developed a cube mold for the door gasket of

our front-load washers. Whereas the manufacturing process previously

required eight 650-tonne injection molding machines, it now requires

only one 1,700-tonne injection molding machine, creating an effect

equivalent to reducing 785 tonnes CO

e per year.

In-House Waste Management System

Our in-house weighting systems (WMS and G-EHS) and legal system

(Allbaro) are interconnected for real-time data management. Alarms

for any errors are sent to the staff members in charge in real time for

an immediate response. We also introduced the Resource Circularity

Partnership Certification (Platinum, Gold, and Silver) that assesses

the environmental, safety, health, and financial performance of waste

disposal and processing companies. This led to the expansion of bidding

opportunities for more companies and improvement in performance

review efficiency.

Everyday Activities for In-House Waste Reduction

Eliminating the Use of Disposables at Our Business Sites

In order to bring the use of disposables on-premise cafeteria and cafés

in Korea down to zero by 2023, we distributed reusable bags to our

employees; started to replace disposable plates, bowls, and cups with

reusable ones; and began stocking beverage products in cans, glass

bottles, and paper packs instead of those in plastic bottles.

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Mission

We will recognize the importance of water resources in ensuring the

sustainability of our society and business operations and fulfill our

corporate social responsibility to preserve them.

Vision

We will strive to minimize water resource risks

in our business operations.

We will assess the impact of our business activities (production, etc.)

on water resources, minimize risks, and continually secure new technologies.

We will embed the importance of water resources

into our corporate culture.

We will uphold the conservation and sustainability of water

resources through our corporate culture so that our employees

responsibly manage them and give priority consideration to our

impact on the environment of the local communities we serve.

We will actively cooperate with external water resource policies.

Based on our relevant guidelines, we will actively cooperate with

the central and local governments and international organizations

to facilitate the establishment and implementation of their water

resource policies.

We will disclose our water resource policies and activities.

We will transparently share our policies and activities related

to water resources with our stakeholders, including local

communities.

Water Resource Conservation

Although most of our planet’s surface is covered with water, only about

1% is usable for humanity. The importance of water continues to grow

with increasing climate risks.

In this context, the DX Division set a goal of 100% water resource

restoration by 2030, returning the same amount of water consumed

back to local communities. Water is indispensable for many

manufacturing processes. While some amount is treated and returned

to nature, the rest is consumed. Water resource restoration is about

returning used water resources to local communities and minimizing

our environmental impact.

In December 2022, we concluded an MOU with Korea Rural Community

Corporation on securing water resources for rural communities

suffering from chronic water shortage and seeking solutions to the

climate crisis.

We plan to focus on minimizing the impact of over 20 manufacturing

sites around the world on water resources and thereby promote the

wellness of local communities.

Mission and Vision of Water Resource Management

Alliance for Water Stewardship (AWS)

We were rated the highest grade of Platinum by AWS. AWS is a

water management certification body established by international

organizations including the UN Global Compact Network and CDP.

AWS certification rates water-using sites as Platinum, Gold, or Core

based on assessment across 100 indicators including stable water

management, water pollutant management, water hygiene, domestic

impact of biodiversity, and governance. Our Hwaseong business

site was granted AWS certification after separately meeting the

highest Carbon Trust's standard by reducing water usage in 2020,

accomplishing the feat of being certified by the two most authoritative

initiatives for water management for the first time in the industry. We

plan to attain AWS certification for all of our major business sites in

Korea and other regions.

Water Resource Management Procedures

We categorize water resources into used water, wastewater, process

water, and ultra-pure water to increase the reutilization rate of water

used for manufacturing.

Each business site is required to calculate the amounts of reused

water in each category on a monthly basis and record them in the

Global Green Management System for company-wide environmental

information management.

Water Management of Our Suppliers

The DX Division focuses on water management within our supply

chains as well. We are pushing ahead with the plan to initiate a water

resource management improvement consortium that performs

RBA(Responsible Business Alliance) assessments of our suppliers,

reviews WASH (water, sanitation, and hygiene) services, and provides

consulting on water resource treatment facilities.

Cooperation with Our Stakeholders

We work to protect and improve the water resources near our business

sites in systematic collaboration with our stakeholders. Our Gwangju

business site formed a climate crisis response committee with the city

government of Gwangju to provide potable water to socially vulnerable

groups and support net zero activities across our supply chains.

Each business site communicates actively with local governments,

NGOs, and local residents for environmental conservation.

2030

Water Resources and Air Quality Management Roadmap

Achieve zero increase in the DS Division’s water intake

* Reuse efﬂuent water from public sewage treatment facilities, etc.

Replenish water 100% for the amount used globally by

the DX Division

* Expand water reuse and operating projects to offset the amount

used

Treat pollutants from emissions and water discharged

from our semiconductor manufacturing sites to restore

them to natural level quality

* Develop new technologies required for such treatment and

restoration

2040

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Water Stress Management at Our Semiconductor Manufacturing Sites

We ensure optimal water resource management at our semiconductor

manufacturing sites, which require large amounts of water for their

operations, based on the analysis of region-specific water stress.

Site in China (Xian)*

ocated in a region with “extremely high” water stress (over 80%)

Categorizing wastewater into three categories - acidic, alkaline, and

fluoric - and reusing them separately

Water treated to meet internal standards through activated charcoal

filtering, acid-base neutralization, coagulating sedimentation, reverse

osmosis filtering, etc., to be reused for cooling towers, gas process

facilities, and plants

Most of the cooling water for equipment uses recycled water

* The Xian site was assessed to have low water resource risks based on our internal

standards but was categorized as “extremely high” in World Resources Institute

(WRI)'s water stress analysis.

Sites in Korea

Located in regions with “medium-high” water stress (20-40%)

Business Sites Facing Water Resource Risks (as of 2022)

Category

Unit Number of sites Water intake Outflow

All

1,000 tonnes 32 172,811 136,118

Sites at risk 1,000 tonnes 12

131,444 104,059

* Number of sites in countries facing water resource risks: 9 in Korea, 1 in India, 1 in

Poland, and 1 in Egypt

Minimizing the discharge of water pollutants

· Reducing the use of chemicals

· Developing alternatives for harmful substances

· Improving the efficiency of the wastewater treatment process

Reducing major ion chemicals (sulfuric acid, chlorine, and

ﬂuorine)

· Developing chemical filters

· Improving the process

· Securing crystallization technology

Water Quality Management

Minimizing the Discharge of Water Pollutants

We apply our pollutant reduction technologies to all of our

semiconductor manufacturing sites and assess the quality of nearby

rivers at least six times a year. For the river water quality assessment,

we monitor both upstream and downstream of the outlet to ensure

accuracy. We perform analyses pursuant to the Process Testing Act of

the Ministry of Environment and apply our internal standards, which

are stricter than the legal requirements, to the quality of treated

wastewater when discharging directly into rivers.

We manage pollutant concentration, temperature, ecotoxicity, among

others, through our internal standards that are stricter than the legal

requirements. We disclose the discharge amounts of general pollutants

(COD, SS) and calculate the discharge amounts of sulfate ion, chlorine

ion, fluorine and T-N based on their real-time discharge concentration

levels and water analysis data. We share our technologies and activities

through the Environmental Conservation Committee held every two

months and aim to drive the concentration of pollutants in our effluent

water lower than that of the upstream by 2040.

CDP Climate Change Report

Water resource risk response strategy by region

Water Resource Risk Assessment

We annually assess whether the locations of our business sites are

within regions affected by water stress or water scarcity and develop

countermeasures.

We identify water-stressed regions using the tool developed by the

Food and Agricultural Organization (FAO) and assess the water stress

and ten-year water risks that water basins near our business sites

face using the tools developed by the World Business Council for

Sustainable Development (WBCSD), World Wildlife Fund for Nature

(WWF), and World Resources Institute (WRI).

We also establish and implement risk-specific response measures

based on CDP’s water security guidance.

Clean Water Supply and Management

We stringently manage the volume and quality of water supplied to

our business sites. Wastewater generated from our business sites is

monitored in real time, with regular composition analyses performed,

to ensure the supply of clean water for all stakeholders that share river

basins with us.

Our Efforts to Maximize Water Reuse

Our semiconductor manufacturing sites have succeeded in reducing

the amount of water used by altering process control values and

wastewater treatment methods and optimizing their operations.

We maximize water reuse by improving our overall manufacturing

processes and reuse systems and by reusing of low density waste

water at our Pyeongtaek site (UPW filtered water reuse). We also plan

to reuse water discharged from public sewage treatment plants.

Average daily reduction of

water use at our semiconductor

manufacturing sites

30,000

tonnes

Total amount of reused water

increased by 29%

compared to the previous year (2022)

116.59

million

tonnes

Everyday activities

· Optimizing site operation

· Replacing outdated equipment

· Improving operation standards

Structural improvement

activities

Improving manufacturing processes

· Establishing recycling systems

Amount of Reused Water (unit: 1,000 tonnes)

2020

70,181

2021

2022

93,949

116,590

Categorizing water used for manufacturing into six groups based on

our internal standards to purify each using the optimal technologies

Filtering pollutants through biological treatment, chemical treatment,

and physical treatment using filters and collecting purified water in a

tank for combined discharge

Assessing the quality of effluent water in real time prior to discharge

and reporting the results to the government

Reducing Water Consumption and Scaling Up Water Reuse

We continually reduce our water intake by maximizing the reuse

of water used for manufacturing. Due to the expansion of our

semiconductor manufacturing lines, the required amount of water

intake per day will more than double by 2030 compared to 2022.

However, we plan to maintain water intake at 2021 levels by expanding

water reuse.

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Surface water

172,113

Underground water

698

Discharged into river

Source of supply

Water Resource Flow Chart (2022) (unit: 1,000 tonnes)

Off-site treatment

facilities

72,176

Discharged into sewage

treatment plant

Manufacturing process

Multifaceted Defense against Water Pollution

We remain prepared for any possible accidents related to wastewater

treatment. We are equipped with triple-tier interlocks between the

infiltration, processing, and discharge stages at our wastewater

treatment facilities. Each interlock is activated to initiate an emergency

recovery of wastewater when the pollutant concentration is assessed to

exceed our standards.

Triple-tier interlock

system for each stage

at our wastewater

treatment facilities

Infiltration

stage

Processing

stage

Discharge

stage

Stakeholder Engagement

We organize events that engage stakeholders of

the river basins nearby our business sites in Korea

and other regions every year. We conduct basin

area cleaning campaigns in collaboration with

local governments, NGOs, and local residents

and provide potable water to socially vulnerable

groups with limited access to clean water. We have

engaged in MOUs with local governments and

NGOs to conserve rivers, analyze risks related to

the nearby river basins, and seek solutions.

Supporting Access to Clean Water

Clean water is essential to ensuring the quality of

life. This is why we engage in a range of activities

to improve access to clean water around the world.

Our subsidiary in Indonesia installed a water

purification facility in a remote village with poor

access to clean water. The village is considerably

distant from the nearest river, which is not suitable

for drinking. Our subsidiary’s support contributed

to enhancing the health of the village residents.

Improving Awareness on WASH*

strive to improve all stakeholders’ awareness

on the importance of water and hygiene. We

offer training on water, hygiene, and health for

our employees, their families, students of nearby

schools, and local residents and engage them in

relevant activities.

*Water, sanitation, and hygiene

Communication with Community Stakeholders

On-site treatment

facilities

63,942

Reuse

116,590

Samsung Electronics

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Improving Ecosystem Health

We regularly measure key indicators of water quality - including

chemical oxygen demand (COD), biochemical oxygen demand (BOD),

and potential hydrogen (pH) - at our manufacturing sites in Korea to

manage the potential impact of our operations on nearby freshwater

ecosystems. We also monitor wildlife inhabiting the region and take

steps to ensure wildlife conservation.

Monitoring Freshwater Ecosystems

To protect biodiversity, we regularly monitor and identify our impact

on nearby freshwater ecosystems, terrestrial ecosystems, ecotoxicity,

and wildlife habitats pursuant to the Guidelines on the Examination

of Current Status and Health Assessment of Aquatic Ecosystems

We perform diverse ecosystem improvement activities based on the

ﬁndings.

1) National Institute of Environmental Research Notification 2019-52 (enacted on

December 1, 2019)

Woncheon-ri Stream near Hwaseong

Measured by

Kyung Hee University

Fishes

14 species of 3 families (high dominance of Freshwater

minnow and Goby Minnow)

Freshwater Benthos

24 species of 16 families (high dominance of aquatic

insects)

Birds

29 species

Mammals

8 species (traces of Eurasian Otter [Endangered Species

level I] and leopard cat [Endangered Species level II]

observed in the downstream of the effluent water outlet)

Osan Stream near Giheung

Measured by

Korea Ecology and Environment Institute and Osan office

of the Korean Federation for Environmental Movement

Fishes

16 species of 8 families (high dominance of crucian carp

and bluegill [invasive alien species])

Freshwater Benthos

54 species of 37 families (high dominance of aquatic

insects)

Birds

65 species (including 8 legally protected species of

long-billed ringed plover [Endangered Species level II],

Eurasian spoonbill [Endangered Species level II], and

Common Kestrel [natural monument], etc.)

Ecotoxicity

Effluent water found to have no ecotoxicity on the stream

based on the results of acute toxicity testing on water fleas

Air Pollution Management

Reducing Air Pollutants

By 2040, we aim to restore air to their natural state with minimal

environmental impact prior to their discharge.

We apply the best available technology to treat pollutants generated

during manufacturing and manage emissions using our multi-tier

treatment system. In addition, we develop and employ technologies

to further advance our treatment system to reduce NOx emissions –

including installation of De-NOx facilities, introduction of ultra-low NOx

burners, and replacement of steam-producing equipment in boilers.

To strengthen our emergency response capabilities, we have installed

preventive facilities and operate real-time monitoring systems at our

manufacturing lines.

Managing Seasonal Fine Dust

As part of a voluntary seasonal fine dust management program –

from December 2022 to March 2023 – hosted by Korea’s Ministry

of Environment, we strengthened our target for nitrogen oxide

concentration by 10% compared to the national standard and optimized

the operations of preventive facilities. We continue to manage the air

quality of our surrounding environment to ensure the health of our

employees and local residents.

Biodiversity Restoration and Conservation Activities in the

Osancheon Stream

We discharge 45,000 tonnes of purified effluent water per day into

Osan Stream, which has contributed to improving the local ecosystem.

As evidence of these improvements, it is now inhabited by Eurasian

Otters (Endangered Species level I and and natural monument). In 2022,

we performed an extensive examination of the habitat distribution

of otter near Osan Stream and Woncheon-ri Stream and discovered

the habitats of other wild animals including leopard cat (Endangered

Species level II) raccoon dog, and water deer.

In addition to water quality and ecosystem monitoring, we conducted

campaigns to release endemic ﬁsh species, eliminate invasive species

in the local ecosystems, and remove water pollutants. We also

sponsored the creation of the Osan Stream Butterfly Path aimed at

protecting the endangered dragon swallowtail.

Wildlife near Osan Stream Wastewater Outlet

Eurasian Otter Leopard cat

Water deer

Seojeong-ri Stream near Pyeongtaek

Measured by

Pyeongtaek University

Fishes

16 species of 6 families (high dominance of Freshwater

minnow and crucian carp)

Freshwater Benthos

30 species of 22 families (high dominance of aquatic insects)

Ecotoxicity

Effluent water found to have no ecotoxicity on the stream

based on the results of acute toxicity testing on water fleas

Gokgyo Stream near Onyang and Cheonan

Measured by

Kyung Hee University

Fishes

19 species of 6 families (high dominance of Freshwater

minnow and crucian carp)

Freshwater Benthos

49 species of 36 families (high dominance of aquatic insects)

Birds

38 species (long-billed ringed plover [Endangered Species

level II])

Mammals

8 species (traces of Eurasian Otter [Endangered Species level I]

and leopard cat [Endangered Species level II] observed)

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Reinforcing chemical control

· Automating chemical injection

· Securing firefighting and disaster prevention equipment

· Installing discharge walls

· Conducting extensive equipment inspections

· Establishing a system for early detection of and response to leakage

Minimizing leakage risks

· Establishing a system to detect and respond to leakage at different points

including building interiors and exteriors, rainwater drainage pipes, and

outer fences

Focusing on research related to chemical mixing risks to prevent relevant accidents

· Establishing a chemical mixing prevention system

· Reinforcing standards of construction and work with respect to chemicals

Managing Potentially Hazardous Substances in Our Products

We are equipped with a rigorous pre-inspection and follow-up

management system for parts and raw materials. We established the

Standards for the Control of Substances Used in Products based on global

standards and voluntarily perform plans to reduce the use of potentially

hazardous and legally regulated substances such as polyvinyl chloride,

brominated ﬂame retardants, beryllium, and antimony.

Eco-Life Lab

We opened the Environmental Analysis Lab in 2004, which was initially

dedicated to monitoring six substances regulated by the EU’s RoHS

and continued to expand its range of potentially hazardous substances

subject to monitoring. The Lab was expanded into the Eco-Life Lab in

2020 to further reinforce this system, with additional test chambers and

cutting-edge equipment introduced for microorganism analysis.

The Eco-Life Lab engages in diverse research projects aimed at identifying

the fundamental causes of odors that may occur while using our products

and seeking improvement measures. The Lab’s expertise and credibility

have been recognized by attaining certiﬁcations from Korea Laboratory

Accreditation Scheme (KOLAS) and TÜV Rheinland, Germany’s renowned

testing service provider.

1) EU RoHS: EU Restriction of Hazardous Substances Directive

Our Chemical Substances Management History

Chemical Substances Management

We strive to minimize the impact of harmful substances that may enter

our products, as well as chemicals used in the frontlines of manufacturing,

on the health of our customers and employees. Our internal regulations

are stringently managed according to global standards, including

the Restriction of Hazardous Substances (RoHS) Directive and the

Registration, Evaluation, Authorization, and Restriction of Chemicals

(REACH) Regulation of the EU and the Toxic Substances Control Act (TSCA)

of the US.

Standards for the Control of Substances Used in Products

REACH Declaration for Substances of Very High Concern

Managing Harmful Substances in Our Supply Chains

Our supply chain review and management systems are designed to help

our suppliers actively engage in responsible substance management

practices. All of our product and parts suppliers are subject to Eco-

Partner Certification evaluations. Each supplier is required to submit

data obtained from its raw material providers and product environment

reports that guarantee the credibility of potentially hazardous substance

information. We provide certiﬁcations to those companies evaluated to

have complied with the Standards for the Control of Substances Used in

Products and possess an advanced environment and quality management

system. Only the certiﬁed companies are included in our supply chains.

Eco-Partner Certiﬁcation Process

Step1

Raw

materials

Step3

Samsung

Electronics

Step4

Eco-Partner

certification

Step2

Suppliers

1. Extensive

data analysis

2. Chemical

composition

table (MSDS)

1. Product environment

warranty

2. Extensive data analysis

(ICP and GMS data)

3. Chemical composition

table (MSDS)

4. Samples for approval

1. Review of

submitted

documents and

samples

2. Environmental

management

system evaluation

Pre-inspection

An expert group

is commissioned

to perform a pre-

inspection.

The expert group

gives approval.

Chemicals are

purchased.

Chemicals are

brought in.

The amount used

and inventory are

identified.

Used chemicals are

discarded.

Tracking the Entire Process

Used chemicals are safely discarded through our preset

procedures.

Chemicals Management Process

We manage all chemicals-related activities from purchasing to disposal

via our strict system to ensure safety.

Reinforcing Chemical Control at Our Semiconductor Sites

To minimize any damage from potential accidents, we reinforced the

chemical control at all facilities on the premises of our semiconductor

sites. Each site is required to monitor environmental regulations by

conducting assessments of the impact of legal regulations and pre-

inspections of chemical substances. All tasks are assessed in advance

for any potential risks and applied with differentiated on-site safety

management levels accordingly. Automated and unmanned systems

were introduced for tasks that deal with chemicals and require working

at heights to eliminate safety risks. The content of harmful substances in

raw materials (wafers) and supplementary materials (PCB, EMC, etc.) are

also strictly managed in compliance with international standards.

On-Site Chemicals Management

Improving Preparedness for Chemical Regulations

As chemical regulations and standards vary by country and continue to

be reinforced and updated, we are required to take a more systematic

approach to effectively manage chemicals. In 16 countries in which

we have manufacturing sites, including China, Vietnam, and India,

we regularly review the relevant laws and reflect the findings in our

chemical substances management standards and database to minimize

related risks.

We have also enhanced our system to readily identify whether internally

regulated substances are contained in any chemical products that our

employees intend to use and perform testing on such chemicals.

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Human Rights

Human Resource

Management

Diversity, Equity,

and Inclusion

Tech for All

Sustainability

in Supply Chain

Empowering

Communities

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Commitment to Respect Human Rights

We are committed to respecting the human rights and freedom of all.

We endorse the principles enshrined in with the Universal Declaration

of Human Rights; International Covenant on Civil and Political Rights;

International Covenant on Economic, Social and Cultural Rights; ILO

Declaration on Fundamental Principles and Rights at Work; United

Nations Guiding Principles on Business and Human Rights; and OECD

Guidelines for Multinational Enterprises, while also practicing respect

for human rights in our everyday business activities based on the

Convention on the Rights of the Child and Protocol to Prevent, Suppress

and Punish Trafﬁcking in Persons, Especially Women and Children, and,

at a minimum, the laws of the countries in which we operate. Where

Samsung faces conflicts between internationally recognized human

rights and national laws, including in cases where national law does

explicitly prohibit adherence to core labour standards, we seek ways to

respect the higher standard.

Our Labor and Human Rights Framework consisting of policies, due

diligence, access to remedy, stakeholder engagement, transparency &

reporting and governance is the foundation of our approach to respect

human rights.

Human Rights Policies

We have a range of human rights policies in place, which reflect our

organization’s commitment to fulfilling our responsibility to respect

and support internationally recognized human rights standards. These

policies stipulate how we realize our commitment to respect human

rights and what our expectations are of our employees, suppliers,

partners, and other stakeholders.

Global Human Rights Principles

In February 2023, we announced our Global Human Rights Principles

(the Policy) that highlight our respect for human rights in line with

international standards such as the UN Guiding Principles on Business

and Human Rights (UNGPs). The Principles consolidate all of the

commitments made in our existing policies and reafﬁrm our promise to

prevent human rights abuses and to take effective remedies for those

affected if and where our business activities caused or contributed to

any harm.

Through the Policy, we disclose our salient human rights risks for

the first time, which have been identified through our continuous

engagements with internal and external stakeholders, internal

assessments, third-party audits, human rights risk assessments,

human rights impact assessments, and grievance channels. Through

these Principles, we also enhance commitments in the areas of product

responsibility; freedom of expression; and the recognition of a clean,

healthy, and sustainable environment as a universal human right.

We expanded the scope of our commitment to human rights to

encompass the wider set of rights-holders, who are potential and

actual affected individuals and groups, including local communities,

partners, consumers, and external stakeholders, in addition to the

employees of our own operations and the workers in our supply

chains. The Principles was informed by internal experts and external

stakeholders such as nonprofit organizations and intergovernmental

organizations to remain comprehensive and align with international

standards and principles.

We will strive to raise awareness and promote the proper implementation

of the Principles through the provision of relevant guidelines, training,

and other capacity-building activities.

Samsung Human Rights Principles

Labor and Human Rights Framework

Governance

Stakeholder Engagement

Transparent

Disclosure

Remedial Action Policies

Due Diligence

Rights and

Implementation

Principles

Respect for human rights is embedded in our business

operations based on our business philosophy “People

First.” We also continue to take steps to build a safer and

healthier work environment.

Human Rights

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Capacity-Building

To help our employees understand their rights and implment respect

for human rights in their everyday activities, every year we conduct

labor and human rights training tailored to different target groups.

We launched a specialized human rights training for our employees

in 2018 and, in collaboration with Business for Social Responsibility

(BSR), developed it into a comprehensive program that offers targeted

training for different employee groups in 2020.

The program consists of training for all employees, training for those

responsible for human rights-related tasks, and training to develop

Human Rights Champions.

Train-the-Trainer Workshop

Our train-the-trainer workshop is a training and peer learning platform

designed to help our human rights trainers expand their knowledge

base, learn best practices from their peers in other regions, and

improve their capacity to deliver training.

In July 2022, we held two train-the-trainer workshops in Mexico and

Vietnam transferring knowledge and training techniques to 22 trainers

from 15 subsidiaries. Each workshop dealt with companies’ duty to

ensure respect for human rights, relevant legal requirements and

stakeholders expectations, our Labor and Human Rights Framework

and activities in each area, an in-depth analysis of our salient human

rights risks, and the approach to human rights due diligence over the

course of two days. In addition to the theoretical contents, practical

discussions took place to share implications of previous human rights

impact assessments and human rights risk analysis and best practices

regarding the responsible employment practices of migrant workers,

grievance channels, local capacity-building initiatives, stakeholder

engagement, mental health services, and employee engagement.

The trainers who participated in the workshops then delivered human

rights trainings for production workers as well as other in-house

trainers. These in-house trainers will, in turn, share their knowledge

with production workers at large sites.

Human Rights Training for All Employees

We develop and offer human rights training for manager-level

and working-level employees. The manager-level training in 2022

was organized for those in leadership roles at our regional offices,

production sites, R&D centers, and sales offices. It dealt with the

updates on global laws and regulations in relation to companies’

responsibilities to respect human rights, stakeholders’ expectations,

our commitments and practice on human rights, and access to the

grievance channels. The working-level training delved into our

commitments on human rights, their signiﬁcance for our employees,

and accessibility to our grievance channels with a focus on our

employees’ rights. Employees at our production sites received ofﬂine

Human Rights Champion Training

We have Human Rights Champions at our subsidiaries, who act as

human rights trainers and help to further integrate a human rights lens

into our daily business activities. In order to highlight the importance

of respect for human rights and share local best practices, we have

designated more than 50 employees in human resource management,

employee relations, compliance, and training as Human Rights

Champions in 2020.

In 2022, we organized on-line deep dive sessions for Human Rights

Champions in addition to the train-the-trainer workshops. The

intensive training dealt with the developments of the UNGPs over

the past decade, internal and external expectations of our efforts to

further align our business activities with the UNGPs, and updates on

legal requirements to enhance the participants’ expertise.

training from local trainers in their local languages with local case

studies, while office workers received training online. The overall

training completion rate for 2022 reached 96.6%. The ofﬂine training

completion rate and online training completion rate stood at 95.0%

and 97.6%, respectively.

Level-Speciﬁc Training Details

Manager-level training

· Updates on global laws and reg

ulations in relation to corporate

responsibilities to respect human

rights

· Stakeholders expectations

· Our commitments and practices

to respect human rights

· Access to our grievance channels

Working-level training

· Our commitments to respect

human rights with a focus on our

employees’ rights

· Human and labor rights of

employees

· Access to our grievance channels

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Human Rights Due Diligence

In line with the UNGPs, we work proactively to identify, prevent, and

mitigate actual and potential adverse human rights risks across our

business operations, supply chains, and business relationships. Our

due diligence includes engagement with various right-holders and

stakeholders. We integrate the findings and implications from our

due diligence in our internal processes to ensure that our policies and

management systems remain aligned with the latest developments.

We monitor the outcomes of the measures taken and report them to our

internal and external stakeholders. We adjust the frequency and nature

of assessment as deemed necessary based on changing conditions such

as entry into new markets, onboarding of new suppliers, and newly

identiﬁed human rights challenges in certain markets.

Identiﬁcation of Actual and Potential Human Rights Risks

We identify actual and potential human rights risks through diverse

channels: internal audits by in-house experts, assessments of specific

human rights areas by regional employee relations experts, human rights

risk analysis and human rights impact assessments by third-party human

rights experts, reports of intergovermental organizations and civil society

organizations on geopolitical situations and the human rights landscape,

media reports, third-party audits based on the RBA protocols, grievances

and complaints filed by our employees and other right-holders, and

dialogues with human rights experts and external stakeholders including,

but not limited to, customers, investors, and industry associations.

Salient Human Rights Risks

We define our salient human rights risks as those human rights at

risk of the most severe negative impacts to rights-holders through

our business activities and relationships. We disclosed our salient

human rights risks in February 2023 as a part of our Global Human

Rights Principles (the Policy). Our human rights due diligence is

performed with a focus on these salient human rights risks identiﬁed

through continuous stakeholder engagement, internal assessments,

external audits, grievance channels, and human rights risk and impact

assessments. Centered on these risks, we prioritize our efforts and

determine activities to prevent, mitigate, and address human rights

impacts and enhance capabilities to provide access to remedy. The

following are our salient human rights risks and some of the related

measures we have taken to address them.

Prevention of Forced Labor

There are many drivers of forced labor and the payment of recruitment

fees by workers – especially migrant workers – for them to obtain and

retain jobs is one of the most widespread factors. We regularly monitor

the overall working conditions at our production sites through internal

audits and third-party audits aligned with the RBA Code of Conduct,

in which “freely chosen employment” is a core indicator. We also pay

closer attention to our production sites in Malaysia, Poland, Hungary,

and Slovakia which employ migrant workers.

From 2019 to 2021, we organized workshops with the International

Organization for Migration (IOM) for the executive management and

HR staff of our production sites, suppliers employing migrant workers,

and recruitment agencies. The training aimed to raise awareness on

the importance of the protection of migrant workers’ rights within our

supply chains and to provide pratical knowledge on the implementation

of responsible recruitment practices.

In addition, we revised our Migrant Worker Policy in 2020 to better

protect the rights of migrant workers. To facilitate the implementation

of this policy, we developed the Internal Guide for Migrant Worker Policy,

which consist of 14 sections from recruitment to employment contract

termination, based on the guidelines of RBA, BSR, and the Institute for

Human Rights and Business (IHRB). We require our production sites,

suppliers, and recruitment agencies to monitor the ILO forced labor

indicators and faithfully implement our Policy and Guide.

In 2022, we performed our own on-site audits on four production sites

staffed by migrant workers to verify their compliance with the Policy

and Guidelines. These audits were based on the RBA methodology

centering on the needs and rights of migrant workers and key industry

references. We conducted interpreter-supported interviews with

migrant workers, their families, and other vulnerable workers – such as

employees from Ukraine who joined our facilities after February 2022

– in addition to interviews with the HR managers of the production

sites and staff members of the recruitment agencies. These interviews

were complemented by document verification and inspections of

dormitories and off-site residential facilities for migrant workers.

The audit results showed that most practices of the production

sites were in compliance with the Policy and Guides. However, it

was discovered that 307 migrant workers hired by one of the four

production sites in Hungary had paid for part of the transportation

expenses incurred while moving from their homes to the location

to meet with the recruitment agency in their home country. The

amounts paid by the workers (approximately USD 9,876* in total) were

reimbursed after the audit.

* Based on average currency exchange rate in 2022 USD 1 = 299.25 HUF

To prevent the recurrence of similar incidents, we have continued

to engage in activities to raise the awareness of local HR managers,

recruitment agencies, and workers on our internal standards for

migrant workers’ rights, including the prohibition of recruitment fees.

The four production sites developed corrective actions for minor non-

compliance with the Internal Guide for Migrant Worker. Local employee

relations experts are monitoring the follow-up steps taken by the sites.

Through the audits, we conﬁrmed that the total amount of outstanding

reimbursements decreased by 88.6% since the introduction of the

revised Migrant Worker Policy in 2020 compared to the 3-year period

of 2017 to 2019.

Reimbursement of Transportation Expenses

Upon employement

· Migrant worker’s residence in

home country → Workplace

· Transportation receipts submit

ted within 90 days from the start

of employment

· Transportation expenses

reimbursed in lump sum amount

(standard amount reimbursed if

no receipts available)

Post-employment

· Workplace → Migrant worker’s

residence in home country

· Prior notice by worker in accor

dance with corporate policy, evi-

dence of termination and return to

home country submitted by worker

(photos of transportation receipts

and entry stamp on passport sub

mitted via text message or email)

· Transportation expenses reim

bursed in lump sum amount

(standard amount reimbursed if no

receipts available)

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Right to an Adequate Standard of Living

The payment of living wages is essential to guarantee an adequate

standard of living, resolve inequality, and ensure decent working

conditions such as decent working hours. Although universal consensus

on the deﬁnition and calculation method of a living wage has yet to be

reached, the term is generally understood as the level of remuneration

a worker receives for a standard workweek in a particular place which

is sufﬁcient for the worker and dependent family members to afford a

decent standard of living. We remain committed to ensuring an adequate

standard of living for our employees and providing remuneration for a

regular workweek, which satisﬁes the basic needs of workers and their

dependent family members.

We have collaborated with BSR to calculate living wages. In 2018, we

began conducting research to estimate living wages in countries where

our production sites are located. In 2022, we assessed the impact of the

economic recession and inﬂation amid the pandemic on the basic living

conditions of our employees.

To ensure the accuracy of the estimates, we used the widely accepted

Anker methodology and identiﬁed diverse items such as food and non-

food expenditure per household and the number of employed and

dependent family members in each household by referring to economic

indicators released by credible organizations such as the OECD, UN, and

Eurostat. In 2022, we performed an internal living wage gap analysis

targeting production workers at 20 global business sites. Based on the

ﬁndings, we are making improvements to the wage and beneﬁts of some

of our production sites to align them with the living wages calculated in

accordance with the Anker methodology.

We are currently recalculating living wages in collaboration with BSR

based on the figures updated in 2023. To enhance the understanding

of living wages within our organization, we leverage our human rights

training to help our employees in key roles such as HR and procurement

recognize human rights risks related to excessive overtime and failure

to provide adequate wages. We also engage in industry-led living wage

discussions and task forces to learn from our peers and work with the

wider industry to establish a more effective approach.

Non-Discrimination and Diversity

Discrimination is deﬁned by ILO as any distinction, exclusion, or preference

made on the basis of race, sex, religion, political opinion, national extraction,

or social origin that has the effect of nullifying or impairing equality of

opportunity or treatment in employment or occupation.

Given the large share of female workers in the global electronics industry,

gender shall be considered when it comes to the working environment. As

a member of the RBA we comply with the RBA Code of Conduct and thus

prohibit discrimination in hiring and employment practices – including

wage, promotion, reward, and access to training – based on gender and and

pregnancy among others. We exempt pregnant and nursing employees

from potentially harmful tasks and conditions, take appropriate measures to

eliminate or reduce workplace health and safety risks related to the tasks of

pregnant and nursing employees, and provide spaces that meet the needs of

nursing employees.

We developed the Anti-Harassment Guidelines in collaboration with BSR in

2018 and revised them into the Anti-Discrimination and Harassment Policy in

March 2022. This Policy reﬂects our commitment to respect our employees’

right to work in an environment free from discrimination and harassment

and to build an environment where our employees are respected, equal

opportunities are guranteed, and their full potentials are realized.

In 2022, we developed the gender equality self-assessment toolkit with

144 indicators – in areas including policy, grievance mechanism, audit

and due diligence, capacity-building, and communication – based on UN

Women’s Women Empowerment Principles, RBA's VAP protocols, World

Benchmarking Alliance's Gender Benchmark methodology, and a set of

questionnaires from NGOs to further integrate a gender lens into our due

diligence work. Assessments performed at 20 of our global production sites

indicated that we require improvement in the areas of women leadership,

gender-related internal audit, gender equality training, and local stakeholder

engagement. Based on the results of the assessments, we developed

and distributed the Essential Guide on Gender Equality, which includes

best practices in the areas of policy, training, infrastructure, and maternity

support. We will continuously monitor the implementation of the Guide at

our global business sites and review its application in our supply chains.

Moreover, we strive to prevent incidents of discrimination by raising

awareness of our employees through continuous training. In 2022, a total of

seven cases were reported – six of which were resolved to take the meausres

of suspension or warning and one of which was found to be a case for another

Samsung afﬁliate company.

Freedom of Association and Collective Bargaining

Freedom of association is the right of workers and employers to form

and join organizations of their own choosing or not to engage in any of

those activities. Collective bargaining, closely related to freedom of

association, is one of the key vehicles that help employers and workers'

legitimate trade unions jointly work toward fair working conditions,

equal opportunities, and sound industrial relations.

We respect the activities of trade unions and other forms of employee

representation. We ensure that no workers are discriminated against,

retaliated against, harassed, or adversely affected due to their

joining or forming of a labor union, request for collective bargaining,

participation in collective bargaining, and exercise of the right

to organize or bargain collectively. We engage in open collective

bargaining based on mutual trust and strive to resolve issues through

good faith and constructive discussions, taking into account the labor

practices of the respective region.

In Korea, the executive management and the joint bargaining group of the

labor unions concluded their first collective agreement in 2021 and the

ﬁrst wage agreement that encompasses wages, leaves, and performance

evaluations in August 2022, laying a foundation for constructive relations.

Employees of our production site in Türkiye, established in 2021, are under

the collective agreement reached by the local employers’ federation and

the trade union of the sector in early 2022.

In 2020, we established the Labor Relations Advisory composed of four

external experts under the Board of Directors to enhance our industrial

relations practices. The advisors review our labor relations issues

through meetings with management and executives from the People

Team and make recommendations for our practices in the mid-to-long

term. In addition, as part of our human rights training for all employees,

we reiterate the freedom of association and right to collective

bargaining and provide hands-on guidance on how to exercise these

rights. For executives, we outline the dos and don’ts to ensure that

these worker rights are duly protected and practiced.

Our efforts to enhance Diversity, Equity, and Inclusion

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Salient

human rights

risks

Function

in charge

Actually or

potentially affect-

ed stakeholders

Activities to prevent, mitigate, or address

human rights risks

Working

hours and

adequate

standard of

living

· People

Team

· Partner

Collabora

tion Center

· Our employees

· Workers in the

supply chain

· Internal monitoring and third-party audits

· Industry network engagement

Working hours

· Pre-building of new products prior to their official release

· Regular review of working hours at our production sites and suppliers

· Review of shift patterns, in compliance with our internal standards, at

our production sites

Standard of living

· Calculation of living wage based on Anker methodology with

third-party experts

· Gap analysis between wages paid at our production sites and living wages

Forced labor

and

child labor

· People

Team

· Partner

Collabora

tion Center

· Our employees

· Workers in the

supply chain

· Internal monitoring, including of government and NGO reports, and

third-party audits

· Industry network engagement

Forced labor

· Development of tailored audit tool for our production sites employing

foreign migrant workers

· On-site audits of our production sites and dormitories

· Face-to-face interviews with foreign migrant workers on their working

and living conditions

Child labor

· Employment management system

· Age verification process

· Capacity-building and training

Freedom of

association

and collective

bargaining

· People

Team

· Partner

Collabora

tion Center

· Our employees

· Workers in the

supply chain

· Internal and third-party audits

· Reinforcement of relevant provisions in Code of Conduct

· Labor and Human Rights Council overseen by the Board of Directors

· Capacity-building and training

· Dialogues and collaboration with employee representative bodies,

including labor unions and Works Councils

Occupational

health and

safety

· Global EHS

Center

· Partner

Collabora

tion Center

· Our employees

· Workers in the

supply chain

· Internal and third-party monitoring

· Acquiring and retaining internationally recognized EHS certifications at

all of our business sites

· Establishing a monitoring system for all of our global production sites

· Development and adoption of new protective gear

· Safety capacity-building and training, fostering experts

Salient

human rights

risks

Function

in charge

Actually or

potentially affected

stakeholders

Activities to prevent, mitigate, or resolve

human rights impacts

Non-

discrimination

& diversity and

inclusion

· People Team

· Partner Collaboration Center

· Our employees

· Workers in the

supply chain

· End users/ Consumers

· Local communities/

Society

· Internal and third-party audits

· Internal DEI network

· Capacity-building and training

· Annual Employee Surveys (Samsung Culture Index)

· Industry network engagement

Anti-

harassment

· People Team

· Partner Collaboration Center

· Our employees

· Workers in the

supply chain

· Internal and third-party audits

· Capacity-building and training

· Annual Employee Surveys (Samsung Culture Index)

Product

responsibility

including AI

ethics

· Corporate Sustainability

Center

· R&D Teams at each

Business Unit

· Samsung Research

· End users/Consumers · AI Ethics Principles of fairness, transparency, and

accountability

· Guidelines on AI Ethics

· Provision of AI models and data card templates

· Online training

Digital

responsibility

including privacy

and freedom of

expression

· Information Security Center

· Global Privacy Office

· Communications Team

· Partner Collaboration Center

· Our employees

· Workers in the

supply chain

· End users/Consumers

· Local communities/

Society

· Provision of products and services in compliance with

Samsung Privacy Protection Principles including

transparency, security, and choice

· Enabling freedom of expression in products and

services

Environmental

responsibility

· Global EHS Center

· Partner Collaboration Center

· Corporate Sustainability

Center

· Our employees

· Workers in the

supply chain

· End users/Consumers

· Local communities/

Society

· Announcement of the New Environmental Strategy

incorporating emissions reduction, new sustainability

practices, and innovative technologies and products

· Acquiring and retaining internationally recognized

environment and energy certifications

Supplier

responsibility

· Partner Collaboration Center

· Purchase Teams

· Global EHS Center

· Workers in the

supply chain

· Responsible purchasing practice requirements in

contracts and evaluations of suppliers

· Self-assessments, internal and third-party monitoring

· Regular verification of supplier data

· Capacity-building and training

Responsible

minerals

sourcing

· Partner Collaboration Center

· Purchase Teams

· Corporate Sustainability

Center

· Workers in the

supply chain

· Local communities/

Society

· Participation in grassroots projects

· Capacity-building and training

· Industry network engagement

Salient Human Rights Risks and Related Actions

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2022 Areas of Findings

RBA Validated Assessment Program

As a member of the RBA, Samsung adheres to the RBA Code of Conduct,

which is in alignment with the UN Global Compact, ILO Declaration

on Fundamental Principles and Rights at Work, and UN Universal

Declaration of Human Rights.

We annually complete the RBA Self-Assessment Questionnaire and

follow the RBA Validated Assessment Program (VAP) to conduct

on-site audits of our production sites. VAP provides a comprehensive

assessment of a site’s level of compliance with the RBA Code of Conduct

and local laws and regulations in the areas of labor, health and safety,

environment, ethics, and management system. VAP is conducted by

independent third-party auditors specially trained and certified by the

RBA. When any case of non-compliance is uncovered, the production

site in question is required to establish corrective action plans and

initiate the system to prevent recurrence, which is to be implemented

within a preset time frame. In 2022, we had VAP audits at 14 of our global

production sites of which eight were assessed as fully compliant and six

have findings in the areas of labor and health and safety. Some findings

were immediately addressed on site during the audits; corrective actions

requiring longer-term measures are currently in progress, in line with the

VAP standards.

Human Rights Impact Assessment and Saliency Analysis

A human rights impact assessment (HRIA) analyzes the impact of

business activities on right-holders such as employees, workers

within supply chains, local community members, and consumers.

HRIA typically involves more in-depth consultations with potentially

affected stakeholders than other forms of human rights assessment.

In turn, a Human Rights Saliency Analysis (HRSA), a type of human

rights due diligence, prioritizes actual and potential human rights

impacts based on the severity (scale of affected people, scope of the

impact, remediability, among others) and the probability of occurrence.

HRSA helps companies focus their resources on managing human

rights risks that are likely to have an adverse impact and is concluded

with the identification of salient human rights risks. The first HRIA

was carried out from 2018 to 2019 at our Vietnam production site.

Supported by BSR, we conducted employee interviews, document

review, labor union member interviews, and external stakeholder

interviews and identified potential labor and human rights risks. While

no human rights abuses that require immediate action were detected,

we identified 41 action items based on BSR's recommendations related

to labor rights, discrimination, protection of vulnerable groups, local

communities, and supply chains. As of December 2022, 38 out of 41

actions were completed, and some items such as local CSR activities,

Multi-Stakeholder Forum, among others have taken root as regular

events. The recommendations that have yet to be completed will

undergo an effectiveness review. In 2021, we performed a human rights

saliency analysis of a new business site prior to their start of operation.

We performed a HRSA at our Türkiye production site and identified

potential human rights risks posed by its operation on our employees,

supply chain workers, and local communities in the macro-context of the

country’s human rights status. Supported by the expert consultancies

Enact and twentyfifty, we identified our potential salient human rights

risks including decent working conditions, health and safety, supplier

responsibility, freedom of expression, and respect for human rights

of vulnerable groups. We received 21 recommendations to align the

site’s operation with the UNGPs, 20 of which have been implemented

and completed as of December 2022. In 2023, we plan to develop and

introduce our internal semi-HRIA, based on communications with our

internal and externalstakeholders on their grievances, to assess how

our production sites resepct for human rights.

2022 RBA Audit Summary: Audit Compliance Rates (Number of Findings)

*Based on initial audits

Production site

RBA Audit

Compliance rate

Labor Health and safety Environment Ethics

Management

system

Vietnam (SEHC) 98.7%(1) 100% 95.2%(1) 100% 100% 100%

Vietnam (SEVT) 100% 100% 100% 100% 100% 100%

Egypt (SEEG-P) 100% 100% 100% 100% 100% 100%

Brazil (SEDA-P(C)) 100% 100% 100% 100% 100% 100%

Mexico (SAMEX) 100% 100% 100% 100% 100% 100%

Mexico (SEM-P) 97.6%(2) 92.3%(2) 100% 100% 100% 100%

Malaysia (SEMA) 100% 100% 100% 100% 100% 100%

Korea (Cheonan) 100% 100% 100% 100% 100% 100%

Korea (Giheung) 100% 100% 100% 100% 100% 100%

Korea (Hwaseong) 100% 100% 100% 100% 100% 100%

Korea (Onyang) 98.7%(1) 96.1%(1) 100% 100% 100% 100%

Korea (Pyeongtaek) 98.7%(1) 96.0%(1) 100% 100% 100% 100%

China (SCS) 97.5%(2) 95.8%(1) 95.2%(1) 100% 100% 100%

China (SESS) 96.3%(3) 96.0%(1) 91.3%(2) 100% 100% 100%

Classifi-

cation

Sub-section Finding(s)

Corrective

action(s)

completed

Corrective

action(s)

in progress

Labor

Freely chosen employment

0 - -

Young workers

0 - -

Working hours

2 0 2

Humane treatment

0 - -

Wage and benefits

4 2 2

Non-discrimination /

Anti-harassment

0 - -

Freedom of association

0 - -

Health

and

safety

Occupational safety

0 - -

Emergency preparedness

2 1 1

Occupational injury and illness

1 1 0

Industrial hygiene

0 - -

Physically demanding work

0 - -

Machine safeguarding

1 1 0

Food, sanitation, and housing

0 - -

*As of December 2022

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Stakeholder Engagement

Stakeholder engagement is one of the core pillars of our Labor and

Human Rights Framework. It is a company-wide effort integrated into

our business activities and an important element of our human rights

due diligence process.

We recognize that we are part of a broader ecosystem and that our

activities may have a far-reaching impact on the individuals within

our supply chains and local communities. As part of our commitment

to respect human rights, we strive to engage in open, active, and

direct communication with our stakeholders. We communicate with

diverse stakeholders, including right-holders who may be affected by

our activities, to listen to their voices and reﬂect their insgihts in our

operations.

Different forms of our stakeholder engagement range from informal

dialogue to strategic partnerships. Our stakeholders include our

employees, business associations and industry initiatives, civil society

organizations, international organizations, benchmarking agencies,

human rights experts and consultancies, customers, suppliers,

investors, and governments.

Employee Representative Bodies

Labor Union We have 32 labor unions representing our employees

at our business sites around the world. We negotiate employment

conditions with them and conclude collective agreements accordingly

pursuant to the laws of the respective countries.

Works Councils We have Works Councils at 46 of our business sites

around the world based on the respective countries’ laws and individual

sites’ conditions. Our employees elect their representatives through

direct and anonymous voting. The Works Councils convene regularly to

discuss various agenda items to improve working conditions, including

wages and beneﬁts.

MSI Reproductive Choice In 2022, we joined forces with MSI

Reproductive Choice through one of our production sites in Vietnam

to promote the health of our employees. As an international NGO

dedicated to providing contraception and safe abortion services in

37 countries in accordance with those countries' national laws, MSI

Reproductive Choice conducted a four-day train-the-trainer program

covering discrimination, sexual harassment, reproductive health,

and mental health at the workplace. A total of 39 in-house trainers

participated in the program which centered on developing practical

problem-solving skills at the workplace and highly appreciated

the training module on the gender equality. After completing the

training program, these in-house trainers then held two on-site

training sessions on sexual harassment prevention and pre-/postnatal

healthcare, both of which were attended by more than 33,000

employees.

CSOs and NGOs

Multi-Stakeholder Forum in Vietnam The Multi-Stakeholder Forum

(MSF) is an initiative led by Samsung, which has been staged annually

since 2018 to bring together our stakeholders, from policymakers

to NGOs, CSOs, labor and human rights experts, academics, and

businesses, to create synergy. The latest iteration of the Forum was

held jointly by Vietnam’s Ministry of Trade and Industry, Vietnam

Chamber of Commerce and Industry (VCCI), Vietnam General

Confederation of Labor (VGCL), and Samsung in October 2022 in Hanoi

under the theme “Moving Up the Global Value Chains in Vietnam: Multi-

Stakeholder Partnership on Capacity Development and Due Diligence.”

In addition, the results of two collaborative studies by VCCI, VGCL, and

Samsung were shared – which focused on the dynamic capabilities

of Vietnamese businesses in the global supply chain and the role

of labor unions in reinforcing labor rights due diligence in Vietnam.

Samsung presented its efforts to foster the local parts-manufacturing

industry; expand local supply chains; and maintain workplaces that

ensure respect for human rights, gender equality, and safety. The

number of attendees in 2022 reached approximately 500, including

representatives from over 60 global and local NGOs and due diligence

leaders and experts.

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Benchmarking Institution

Global Child Forum (GCF) GCF is a Sweden-based nonprofit

organization that assesses the integration of children’s rights in the

business practices of some of the world’s most inﬂuential companies. In

2022, we were invited to take part in the GCF Business Academy as the

industry leader selected through GCF’s most recent benchmarking. We

participated in diverse programs targeting companies in the ICT sector

over the past year, discussed challenges and best practices, and sought

ways to better protect children’s rights across our business operations.

The peer-to-peer networking and cooperation activities arranged

through this program were guided by GCF and other organizations

dedicated to children’s rights.

Investors

ESG Roadshow We hold annual ESG Roadshows to update our

investors on our sustainability activities including those related to

human rights. Since 2019, the Roadshow has facilitated communication

with our investors on our efforts to advance sustainability, including

new policy announcements and human rights due diligence results. It

also serves as a channel to resolve our investors’ inquiries on various

sustainability-related topics including on our efforts to enhance DEI;

our global supply chain management system; and our response to

evolving regulations of different countries. We continuously strive to

strengthen communication with our investors and actively reﬂect their

needs in our human rights management.

Our efforts to reach out to local communities

Our statement on UK Modern Slavery Act

Our statement on Australian Modern Slavery Act

Our commitments to respect human rights

Transparency & Reporting

We disclose our activities to respect human rights in our annual

Sustainability Report based on the Global Reporting Initiative (GRI)

Standards. The annual disclosure is also an extension of our efforts to

comply with the UK Modern Slavery Act, Australian Modern Slavery

Act, and Norwegian Transparency Act and to fulfill the evaluation

criteria of the Corporate Human Rights Benchmark – assessing human

rights management levels of global companies – and KnowTheChain

– assessing companies’ actions to address forced labor in their global

supply chains. We also disclose ofﬁcial statements on relevant human

rights issues via the online platform operated by the Business and

Human Rights Resource Center, a UK-based nonprofit organization

dedicated to research in the human rights impacts of corporate

activities, as well as in response to customer requests on dedicated

human rights issues.

Business Associations and Industry Initiatives

Responsible Business Alliance (RBA) We are a member of RBA,

the world’s largest industry coalition dedicated to corporate social

responsibility in global supply chains. In addition to the RBA VAP

program based on the RBA Code of Conduct, we regularly conduct

internal audits by RBA-trained in-house experts as well as regular third-

party audits by independent auditors. We are actively participating in the

Responsible Labor Initiative (RLI), a multi-stakeholder initiative focused

on respecting and promoting labor rights. We are also engaging in

dedicated working groups and task forces concerning our salient risks to

discuss mutual challenges, share best practices, and raise the awareness

of our employees on relevant issues.

Local Communities

Community Engagement Council We launched our ﬁrst Community

Engagement Council at our Yongin business site in 2013, followed by

our Pyeongtaek and Onyang sites. This initiative provides a platform

to exchange views with local community members on the potential

impact of our operations on the local environment and current and

potential grievances of local community members. Each Council is

composed of representatives of the respective business sites and local

residents and convenes regular meetings as agreed to by both parties.

The details of each meeting are disclosed on the Samsung Semiconstor

website. In addition, we invite local residents and students to special

events organized at our business sites to provide an opportunity to

experience our sites ﬁrst-hand.

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Grievance Cases

per Channel

Grievance Cases

per Type

Grievance Cases

per Channel

23,840

cases in

23,378

cases in

2022

2021

Hotline

45%

Online

24%

Offline

18%

Employee

representative bodies

14%

Interpersonal

relations 7%

Safety and

health 5%

Organizational

reshuffling 1%

Job change 3%

Harassment 0.3%

Discrimination 0.1%

Work environment

47%

Employment

conditions

36%

Hotline

36%

Online

28%

Offline

23%

Employee

representative bodies

14%

Grievance Cases

per Type

Interpersonal

relations 6%

Safety and

health 5%

Organizational

reshuffling 1%

Job change 1%

Harassment 0.2%

Discrimination 0.0%

Work environment

50%

Employment

conditions

37%

Access to Remedy

We remain committed to thorough due diligence to prevent our business

operations from causing or contributing to any adverse impacts on human

rights or engaging in human rights abuses. All complaints or grievances

filed by individuals or groups that are adversely affected by our business

operations are promptly investigated to seek effective and satisfactory

remedies. Upon detecting human rights abuses, we investigate their

root causes and change our systems, processes, and practices if deemed

necessary to prevent the recurrence of similar cases.

The scope of our grievance encompasses any incidents that may adversely

impact or result from an adverse impact on human rights as speciﬁed in the

UNGPs, in addition to complaints, requests, and suggestions about working

conditions. We ensure our employees are informed of and have an access to

the grievance channels and resolution process by including these topics in

our annual human rights training for employees.

We also have the process in place to take prompt follow-up actions and

update grievants on the progress in line with the effectiveness criteria from

the UNGPs. We make sure that filed grievances are handled promptly in

accordance with our internal procedures and that follow-up actions, such

as training and policy revisions, are taken to address the root causes. We

interview all relevant parties involved in a case – the grievant, accused,

potential witnesses – and keep in touch with grievants to monitor whether

their grievances have been properly resolved and remedied. Te prevent

reoccurrence, we establish preventive measures and change our business

practices, as needed, to address identiﬁed risks.

Our grievance channels which are a combination of anonymous and direct

channels are open to internal and external stakeholders including workers

in our supply chain and civil society organizations. While most of our

channels are operated at the corporate level, we also partner with third-

party organizations in select countries to provide additional channels for

our employees. Samsung prohibits the use of retaliation of any form against

workers or stakeholders, and is committed to cooperating with and not

obstructing participation (of workers or other stakeholders) in or the outcome

of judicial and non judicial mechanisms.

The total number of grievances ﬁled and the breakdown of grievance types in

2022 were found to be similar to those of the previous year. Several notable

changes include: an increase in grievances ﬁled ofﬂine by 5%p, a decrease in

grievances ﬁled via hotline by 9%p; and an increase in grievances related to

work environment by 3%p. The return to physical workplaces following the

lifting of travel restrictions post-pandemic is believed to a contributing factor

to this trend.

Grievance Filing Status

Third-Party Grievance Channel in Latin America

Our Latin America Ofﬁce introduced a third-party grievance channel

in Brazil as allegations and complaints related to moral harassment

had increased. The new independent channel was aimed at

providing an additional safeguard, in combination with the existing

internal grievance channels, for employees highly sensitive about

conﬁdentiality. As a result, there was a marked increase in grievances

concerning subjects that had not been ﬁled via the internal channels,

which brought positive change to our site in Brazil.

To meet the needs of employees under different conditions, we strive

to improve the reliability of the available channels. We conducted

training concerning the issues identiﬁed through the ﬁled grievances

as a preventive measure. We also focused on preventing any form of

retaliation against grievants through the Compliance Team’s leadership

role in the investigation, resolution, and follow-up management of

grievances.

Given the successful implementation of this approach in Brazil, the third

party grievance channel was expanded to all of our business sites in Latin

America as of October 2022. Upon verifying its efﬁciency, we will review

the introduction of third-party grievance channels in other regions.

Our grievance channels Our grievance resolution process

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Human Rights Governance

We believe strong governance is essential to successfully embed

respect for human rights in our business operations. Our human rights

governance is centered around the Sustainability Committee under

the Board of Directors and the Labor and Human Rights Council. This

structure facilitates the supervision and management of labor human

rights conditions at various levels. The Sustainability Committee is

in place to enable the Board of Directors to closely monitor relevant

company-wide issues. The Committee plays an instrumental role in

determining our strategic priorities concerning sustainability and

incorporates human rights and other sustainability issues into the

business decision-making.

The Sustainability Council, headed by the CEO, reviews and manages

company-wide sustainability issues with those in charge of

sustainability in individual businesses.

The Labor and Human Rights Council, one of our cross-functional consultative bodies, discusses and coordinates global labor and human rights issues

at our business sites and across our supply chains. This Council is composed of executives and working-level staff members of the People Team, Partner

Collaboration Center, Vendor Improvement Task Force, Global Technology Research, Global EHS Center, Corporate Legal Ofﬁce, Investor Relations Team,

and Corporate Sustainability Center and serves as our secretariat for human rights issues. It shares information on the global human rights landscape,

potential human rights risks, and stakeholder feedback and discusses ways to integrate new ﬁndings into our due diligence approach.

The Council convenes on a monthly basis and reports human rights issues identiﬁed to the corporate risk management body which in turn reviews them

as a potential risk to our business. A brief description of the units participating in the Council and their respective responsibilities are provided below:

People Team

The People Team establishes policies for human rights activities and DEI

programs and monitors relevant procedures at our business sites. It develops

employee training programs to ensure respect for human rights in our

everyday business activities, while also taking the lead in the implementation

of due diligence, including third-party audits by RBA-approved auditors and

the Human Rights Impact Assessment, to prevent, mitigate, and remedy our

human rights impacts.

Partner Collaboration Center

The Partner Collaboration Center supervises the establishment of human

rights standards and implementation of due diligence by our suppliers and

offers training and capacity-building programs to ensure their responsible

purchasing practices including responsible minerals sourcing. The Center

also regularly monitors our suppliers’ compliance status through a dedicated

organizational unit.

Vendor Improvement Task Force

The Vendor Improvement Task Force monitors our business partners

stationed at our production sites on their implementation of our human

rights commitments and audit programs.

Global Technology Research

Global Technology Research monitors our suppliers’ compliance with the

Supplier Code of Conduct and our human rights commitments.

Global EHS Center

The Global EHS Center establishes standards related to occupational health

and safety and environment and supports their implementation in our

business sites and supply chains.

Corporate Legal Ofﬁce

The Corporate Legal Office shares the latest global legislation trends and

requirements concerning respect for human rights and due diligence in

business operations.

Investor Relations Team

The IR Team identifies and conveys our investors’ expectations of our human

rights commitments to the organizational units in charge.

Corporate Sustainability Center

The Corporate Sustainability Center communicates our stakeholders’

expectations of our sustainability efforts, including human rights activities,

to the organizational units in charge. The Center ensures close coordination

with our respective businesses through the Sustainability Council and

reviews and submits agenda items to the Sustainability Committee under the

Board of Directors.

Board of

Directors

Sustainability

Committee

Sustainability Council

Labor and Human Rights Council

Human Rights Governance

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Health and Safety

We have health and safety management systems in place for our individual business sites to ensure workplace safety and the health of our

employees. We also engage in diverse activities, from risk mitigation to relevant indicator management, safety-sensitive culture assessment, and

employee capacity-building.

Business Site Safety Management System

Health and Safety Management System Certification

Our operations are based on international health and safety management systems. The attainment of ISO 45001 is mandatory for all of our

manufacturing sites around the world. As of 2022, all of our production sites are 100% certified.

Integrated Assessment System

We identify potential risks through the annual environment and safety assessment by experts and review the compliance and equipment

management status of our business sites. In 2022, we introduced a serious accident risk assessment initiative that brings together internal and

external specialists to accurately diagnose the health and safety management status of our business sites, continually mitigating and removing

on-site risks.

Safety Management System

Our safety management system, encompassing hazardous machinery

management, on-site safety inspections, and safety monitoring, is

designed to help all employees efﬁciently handle related tasks.

Identifying and Mitigating Potential Risks

We are identifying potential risks and building a safer work environment.

DX operates the “No Safety, No Work” campaign designed to allow any

individual to immediately suspend work upon detecting risk factors

on site and rewards employees who make significant contributions.

It also holds “No Construction Work Day” to eradicate risks related to

construction work performed on site on holidays.

DS identiﬁed 31,502 potential risks in 2022 through the participation of

5,036 employees.

Managing Risks Related to Fire, Explosion, and Natural Disasters

DX collaborated with external specialists to perform a comprehensive

assessment of its business sites deemed to have potential risks related

to ﬁre, explosion, and natural disasters. In Korea, the scope of this work

included inspections of firefighting and high-pressure gas equipment

and an analysis of natural disaster scenarios – including wildﬁre, storms,

and ﬂoods – and evacuation simulations. At DX's global business sites,

we identiﬁed and addressed gaps in the emergency response system –

including foam process ﬁre risks and evacuation routes.

Accident Response Process

Occurrence of an accident

· Updates on the situation

· Identification of accident

type and crisis level

Emergency measures

· Formation of the Crisis

Management Committee

· Emergency evacuation and

action

Investigation

· Identification of causes

· Prevention of secondary

accidents

Remedial action

· Implementation of remedial

action

· Implementation of the

business continuity

plan

Prevention of recurrence

· Establishment of relevant

measures

· Review of the effectiveness

of our accident

response system

Accident Prevention Process

Identifying risks

· Outdated equipment

· Failure to comply with safety

regulations

· Insufficient on-site

management

Establishing response measures

· Equipment lifespan projection

· Promotion of safety regulation

compliance

· Establishment of on-site

management programs

Making improvements

· Equipment monitoring

· Safety training

· On-site inspections

Conducting monitoring

· Performance management

· Process correction and modification

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Safety Capacity-Builing

Risk Assessment Expert Program

DS operates a risk assessment expert program to reinforce our

employees’ safety risk assessment capabilities. A total of 3,494 experts

(2,200 of our employees and 1,294 of our suppliers’ employees) have

completed this program as of 2022.

Safety-Sensitive Culture Promotion Group

DS participates in the Safety Culture Promotion Group led by

Korea Industrial Safety Health Headquarters under the Ministry of

Employment and Labor to prevent serious accidents. The Safety

Culture Promotion Group engages with diverse public and private

organizations including those in charge of safety from the perspective

of both labor and management. It collaborates with the Gyeonggi-do

branch of the Ministry of Employment and Labor to promote on-site

safety practices by producing and distributing relevant content,

creating slogans for safety-sensitive culture, and organizing a safety-

sensitive culture contest.

Reinforcing On-Premise Traffic Safety

DX performed a comprehensive traffic safety assessment in

collaboration with an external specialist to prevent accidents and

improve infrastructure on the premises of its business sites. Traffic

accident risks were identified at the production sites with high traffic

of large trucks, and improvements were made accordingly. DX also

requires compliance with the “5 Safety Rules” concerning pedestrians,

vehicles, and bicycles to ensure a safer workplace.

Our Explosion Protection Efforts Evidenced by IECEx CSF Certification

DS has established a safety management system to enhance

preparedness for possible explosions that may lead to serious

accidents. A dedicated organizational unit was formed to manage

the quality of explosion protection facilities and perform regular

inspections. It also attained IECEx

and CoPC

and cultivated 15

explosion protection experts. Based on such efforts, its Giheung and

Hwaseong sites attained IECEx CSF

granted by IECEx in February

2022 in recognition of workplace safety, followed by its Pyeongtaek,

Cheonan, and Onyang sites. All of the DS Division’s business sites in

Korea are now IECEx-certified. IECEx CSF is a testament to workplace

operation in accordance with international explosion protection

standards. DS plans to continually elevate its explosion protection

capacity to new heights at all of its sites.

1) International Electrotechnical Commission Certification System for Explosive

Atmospheres

2) Certificates of Personnel Competence

3) Certified Service Facility

Attainment of risk assessment and safety/health qualifications

(FSE and NEBOSH), in-house Advanced Course lecturers

Expert

Advisor

In-house Basic Course lecturers, diverse

assessment techniques, case studies

Advanced

Leadership in risk assessments, risk assessment following

the occurrence of accidents, improper assessment cases

Basic

Risk assessment methodology (S-PHA and

SSRA) and major equipment, practical training

5 Safety Rules

No mobile

phone while

walking

jaywalking

No mobile

phone while

at the steering

wheel

No speeding

and

aggressive

driving

No bicycling

without a

helmet

Global Manufacturing and Workplace Safety Innovation Day

In order to enhance the safety of our business sites, we organize Global

Manufacturing and Workplace Safety Innovation Day each year to

share and encourage the application of best practices.

In 2022, DX held an event to share innovation cases of different

businesses in celebration of this initiative attended by over 100

employees from our sites in Korea, Vietnam, and Europe as well as

Samsung Group member companies.

DS also organized its 2022 celebration of the Day with over 250

participants, including the CEOs of five of our parts suppliers (DS, SDC,

Samsung SDI, Samsung Electro-Mechanics, and Samsung Biologics), at

its Giheung business site. “Realization of Environment Management with

Greater Value for Future Generations” was set as the objective for the

environment sector and “Creation of a Safe and Sound Workplace Driven

by Unprecedented Technologies” for the safety sector. A total of 33

tasks were identified to maximize the synergy of the five parts suppliers

through collaboration and technology exchanges for mutual business

modeling and implementation. We plan to capitalize on this initiative to

further reinforce our competitiveness in environment and safety.

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Healthcare for Employees (Korea)

Physical Examinations and Follow-Up Management

· Annual physical examinations for all of our employees (standard, comprehensive,

and special)

· Comprehensive physical examinations a wide range of advanced health

assessments

· One-on-one consultation with a physician and healthcare programs for

employees diagnosed with special conditions

Focused Care for High-Risk Groups

· High-risk groups requiring focused care screened based on physical examination

results

· Integrated healthcare infrastructure provided (consultation with dedicated

physicians, attendance management, provision of blood pressure and blood

glucose meters, physical training support, etc.)

On-Site Health Promotion Facilities

· In-house clinics (physical therapy, diagnostic testing, diagnostic radiology, etc.)

· Musculoskeletal Disorder Prevention Exercise Center

· Health promotion programs of the in-house physical examination center

Contact-Free Medical Examination Service

· Contact-free remote medical examination service introduced for our employees

stationed globally and on business trips and their families (in connection with

locally-based general hospitals)

· Consultation available across 24 disciplines and detailed secondary examination

offered for local medical records

Infectious Disease Prevention and Control

· Integrated infectious disease control through the S-Care system (reporting

of confirmed and suspected cases, reservations with screening stations,

vaccination, patient screening questionnaire, etc.)

· Publication of the white paper on COVID-19 response and establishment of the

company-wide response system

· Operation of screening stations (PCR testing, rapid antigen testing, and

respiratory diagnosis)

· Disinfection and provision of infection control supplies for employees (masks,

diagnostic kits, thermal imaging tools, hand sanitizer, etc.)

Health Promotion Programs

· Moderate-intensity exercises including walking: Walking Challenge using the

Samsung Health app and group exercise programs in connection with on-site

health promotion facilities

· Anti-obesity: 12-week constitution-changing program based on diet therapy,

exercise, and weekly lectures by bariatricians

· Anti-smoking: Diagnosis and prescription by physicians of clinics collaborating

with National Health Insurance Service

· Chronic diseases: One-on-one tailored chronic disease control program

supported by health managers and our mobile app

Our Efforts to Promote Employee Health

In order to promote employee health, improve the work environment, and prevent occupational diseases, we are operating company-wide specialized

units as well as dedicated organizational units at individual sites. DS’s Samsung Health Research Institute has been in operation since 2010 as

the nation’s first corporate initiative specializing in the prevention of diseases and healthcare for frontline workers. DX is operating the Health

Management Office.

Category

Details 2022 Performance

Employees

Introductory training,

legally required basic

training, safety leadership

training for executives

· Conducted 746,057 hours

of training

· Training 172,510 employees

Staff in charge

of environment/

safety (Korea)

Internal auditor training,

specialist cultivation

training, legally required

continuing training

· Conducted 32,866 hours

of training

· Training 5,242 employees

Staff in charge

of environment/

safety (Global)

Training developed by

individual sites

· Conducted 1,123,484 hours

of training

· Trained 102,871 employees

Safety Training for Employees

In order to enhance the emergency response capabilities of all of

our employees and take full advantage of the AEDs installed at our

business sites, we made CPR and AED training regular. Health and

safety trainings, safety leadership training for executives, and seminars

for staff members in charge of safety are being conducted, as well as

safety events and safety campaigns to embed safety in all aspects of

our business operations.

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Musculoskeletal Disorder Prevention Exercise Center

We have operated the Musculoskeletal Disorder Prevention Exercise

Center to help our employees prevent relevant diseases and maintain

optimal health since 2010.

The Center offers examinations on basic body composition, sense

of balance, core muscle strength, etc., as well as somatotype

measurement, while also providing one-on-one expert consultation to

recommend appropriate programs.

In 2022, DS provided diverse programs including group exercises,

exercise therapy, and counseling and offered onsite kinesio-taping

trainings targeting frontline workers with a heavy physical workload.

Ergonomic Line Certification

We make continuous ergonomic improvements to our work

environment to ensure the wellness and comfort of our employees. In

this context, we operate the ergonomic line certification system based

on the Rapid Entire Body Assessment (REBA), which analyzes each

manufacturing process from an ergonomic perspective and provides

a quantitative evaluation. In 2021, we developed an ergonomic analysis

Work Environment Improvement

· Assessing working conditions (chemicals, noise, dust, etc.)

· Installing localized ventilation equipment and monitoring control flow

· Monitoring indoor air quality

Chemicals Management

· Conducting pre-inspections of chemicals and providing safety guidelines

· Performing chemical risk assessments (regular and special)

· Performing regular inspections of high-risk chemicals and replacing

them with alternatives

Mental Health Promotion for Our Employees

We are equipped with a network of 16 in-house Life Coaching Centers

and 13 Mental Health Clinics in Korea and operate the Life Coaching

Center at 20 production sites and 11 research institutes in other regions.

* Global sites and research institutes without an in-house Life Coaching Center utilize

external employee assistance program providers.

Life Coaching Center

The Life Coaching Center is staffed by certified counselors to provide

expert counseling services. Each location is equipped with a meditation

room to help our employees learn ways to effectively control everyday

stress through various programs (tension relief, meditation, color therapy,

pain relief, etc.).

Counseling Center

Psychiatrists are stationed at the Mental Health Clinic to provide one-on-

one consultation, medication and psychotherapy, and training for a wide

range of issues including work life, interpersonal relationships, stress, and

family life. Confidentiality is guaranteed for information obtained through

consultation pursuant to the code of ethics for counselors and the Medical

Service Act.

Online Counseling Channel

In Korea, we have operated an online psychotherapy program and diverse

counseling channels (video, telephone, and messenger) for our employees

since the outbreak of COVID-19 to ensure their wellness. We also set up a

hotline at our production sites and research institutes in India to provide

wider access to our services.

tool to automatically analyze the video-recorded motions of workers

and distributed it to all of our global business sites. This significantly

reduced ergonomic analysis time and improved the credibility on the

ergonomic analysis of workers. In 2022, we identified 561 improvement

points (2.4 times higher than previous year), including ergonomically

unreasonable posture, repetitive motions, and excessive strain through

the analysis of 565 manufacturing lines and took remedial actions

accordingly.

Samsung Artisan Certification Program for Environment and Safety

We have operated the Samsung Artisan Certification Program since

2019 to enhance our frontline competitiveness and foster top-tier

specialists.

This program certifies those employees who have at least two

decades of experience in the areas of equipment, instrumentation,

manufacturing, molding, instrumentation, equipment, and quality,

which require profound expertise and knowhow, and are noted for their

artisan-level prowess as specialists in their area.

The area of environment and safety was added to this program in

2022, and our first environment and safety artisan was selected. We

also newly set up the EHS Certification Office to utilize the artisan’s

experience and knowledge to build a safer workplace.

The EHS Certification Office plans to provide specific safety levels for all

types of manufacturing equipment and perform pre-inspection, on-site

verification, and improvement to ensure safety at work. It will also strive

to enhance workplace ergonomics. We will continue to focus on accident

prevention and maintain world-class safety at our business sites.

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Access to a Range of Capacity-Building Programs

Our employees participate in diverse external training programs in

accordance with their career stage and needs. We provide support

for MBA programs, master’s programs in HR and finance, and other

academic training programs.

The Samsung Semiconductor Institute of Technology (SSIT), which was

launched as an in-house semiconductor technology school in 1989

with the aim of enhancing the technological capabilities of frontline

workers, was officially acknowledged as a university in 2001 and now

offers four-year bachelor’s degree programs in the areas of equipment,

infrastructure, and display.

The Regional Specialist program introduced in 1990 is a self-led global

training program aimed at helping employees with at least three years

of experience in the company learn the language and culture of another

Talent Development

Talent Development Structure

Internal development

External development

Key areas

Objective

Sharing

our vision,

values, and

culture

Fostering

future global

leaders

Fostering top-

tier experts

for different

functions

MBA

Regional Specialist

Academic training

In-house technology

school

Curriculum

Introductory

training

for new

employees

Training based

on our SELF*

leadership

model

Job-specific

expert

training

Workplace learning, mentoring, coaching,

on-the-job training

Knowledge Network (through Web 3.0, social media, and mobile platforms),

Samsung U Learning Portal, Software Expert Academy, Knowledge contents

country for one to two years. Over 3,500 regional specialists for 80

countries have been developed through this program.

In addition, we opened the Semiconductor Display Engineering

Department and DMC (Digital Media Communication) Engineering

Department at Sungkyunkwan University, which together function as

our in-house graduate school, to cultivate future technology leaders.

As of February 2023, we have nurtured 1,076 bachelors’, 816 masters’,

and 91 doctorate degree holders through SSIT and our in-house

graduate school.

Effective and Practical Training

In order to ensure the effectiveness and practical value of our training

programs, we offer key functional and leadership training programs

in conjunction with qualification programs of external accreditation

institutions. In 2022, 92% of our the course participants attained

relevant qualifications upon completion of their training including the

ISO 9001 Quality Management System Certification (95%), CPSM*

(88%), and KAC** (93%).

* Certified Professional in Supplier Management

** Korea Associate Coach

Opportunities to Switch Jobs Internally

The Job Posting platform provides opportunities for our employees

to switch jobs within our company. Over the past three years, 2,598

employees have transferred to their position of choice, which made a

positive impact on both the individuals and their organizational units.

We support their soft landing in the new position through mindset

training for changes, mentoring as well as job competency training.

In 2022, we introduced the Free Agent (FA) initiative and Samsung

Talent Exchange Program (STEP). FA allows employees who have

worked in the same function or organization for at least five years to

transfer to their position or organization of choice and offers capacity-

building opportunities before they take the new role. STEP is an

employee exchange program utilizing our global network, through

which outstanding employees at our Korea and global business sites

swap their positions for up to two years.

We foster a continuous learning and development

culture for our employees by actively supporting

their professional growth.

Human Resource

Management

* SELF: Samsung Electronics Leadership Fundamentals

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Encouraging Self-Learning

Our employees are encouraged to explore and sign up for self-led

training courses offered by the company during the biannual STaR

Week. This system inspires our employees to push their limits and

proactively take part in courses beyond their current job functions.

The UniverSE

With the aim of providing a comprehensive platform for employees

seeking professional development, we integrated existing individual

training modules scattered across different functional roles into a

single body known as The University of Samsung Electronics or The

UniverSE. The UniverSE, which consists of 11 schools under three

academies, is designed to enhance job competency and leadership

of employees, foster a culture of self-learning, offer practical and

grounded training, and promote convergence among diverse functional

roles and thematic areas.

Employee Performance Appraisal and Feedback

We require our employees to establish their individual work goals at

the beginning of each year, for which the heads of their organizational

units provide one-on-one feedback throughout the year. Individual

performance appraisals based on these goals happen at the end of the

year. We continue to make improvements to this system to ensure that

it is fair and rational. As a part of the effort, we shifted from a relative

scale to an absolute scale in 2022 and we introduced a quarterly

feedback in 2023.

I n-House Professor Program for Knowledge- and

Experience-Sharing

The UniverSE appoints employees noted for their outstanding

performance based on their experience and knowledge as in-house

professors specializing in different job functions to share their

expertise. They are responsible for developing their own teaching

contents and delivering practical training that participants can readily

utilize at work. Currently, 42 in-house professors are teaching at The

UniverSE. We plan to expand our pool of in-house professors further.

Leadership Academy

Advanced-Tech

Academy

Global CX Academy

Sales and

Marketing School

Procurement

School

Design School

SW School

R&D School

Production and

Manufacturing

School

CS School

Leadership School

Management

School

Humanitas School

Onboarding School

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Upskilling for Digital Transformation

With the aim of equipping our employees, suppliers, and local community members with the skills needed in the future workforce, we offer a comprehensive training structure encompassing digital and IT technology programs.

Upskilling for Digital Transformation

Data Science Capacity-Building

Employees

Big Data

Suppliers

Samsung SW Academy for Youth

Samsung Innovation Campus

Future generations

Data Science Capacity-Building is a training program available at

The

UniverSE’s High-Tech Academy. It provides theoretical knowledge, case

studies, and hands-on training in four different levels. Level 1, which is the

basic course, targets all employees to help them keep abreast of changes

related to data transformation.

[Interview with a trainee of Data Science Capacity-Building]

By applying the data analysis methodology that I acquired through Data

Science Capacity-Building, I am able to better define the data required for

each task, efficiently collect and pre-process the data, and establish an

analysis plan. I am keen on delving into more advanced analysis methods

through the data science training and apply them to real-world tasks.

[Interview with the Big Data course planner]

Suppliers often lack the infrastructure required to systematically collect

and analyze information on the ground. Nevertheless, their employees

are enthusiastic to learn about and utilize Big Data. Thus, we created a

curriculum offering theoretical basis as well as practical applications of Big

Data analysis at the workplace.

[Interview with a trainee of Samsung Innovation Campus in Indonesia]

I experienced some difficulties at first but was led to navigate all

those difficulties and develop capabilities in diverse areas including

programming. I learned how to seek acceptable solutions to diversifying

problems and create a plan to successfully implement those solutions

based on new knowledge and skills obtained at Samsung Innovation

Campus.

Big Data training

is offered by the Partner Collaboration Academy .

The Big Data course was established in 2023, with new subjects including

“Understanding Big Data through Case Studies” and “Easy-to-Learn Basic Big

Data Analysis” combined with AI programming, Python, R, and other existing

software subjects, to more effectively drive data capacity-building for our

suppliers’ employees.

We place a premium on capacity-building programs for youth among our CSR

activities. The

Samsung SW Academy for Youth (Korea) and

Samsung

Innovation Campus (global) are designed to help the young generations

grow into future leaders equipped with technical skills, including coding,

programming, Big Data, AI, and IoT, as well as soft skills.

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Organizational Culture

Better Workplace, Better Life

We strive to foster a constructive organizational culture founded upon

the values of diversity and inclusion where employees are able to

immerse themselves and grow.

A Culture of Mutual Respect

We promote a culture of mutual respect and trust among employees of

all ranks, from working-level to executive management, by adopting

various communication methods and channels.

Horizontal Communication

In 2017, we reorganized the hierarchy of seven ranks into a more

horizontal structure of four Career Levels (CLs) and introduced equal

titles for addressing employees of all levels including “nim” (a gender-

agnostic title of respect), “pro” (short form of “professional”), and

English names, in pursuit of a more ﬂexible and inclusive organizational

culture. In 2022, we made it mandatory to use the honorific form of

language at work at all times regardless of position, title, seniority, or

age, and removed information indicating the ranks and seniority of

employees from our internal system.

Communication with the Executive Management

Our town hall meetings, held regularly under the leadership of division

and business heads, are well-received among many employees. They

serve as an effective channel for executives to convey their business

philosophy, direction for the company, and current management

agenda and to communicate directly communication with employees

through real-time Q&A sessions.

Team heads and group heads also interact with staff members through

monthly meetings and team-building events and strive to build trust by

listening to the difﬁculties of staff members and offering solutions on

site through one-on-one as well as group meetings.

DX Division The DX Connect Town Hall Program hosted by the CEO

is a platform where the executive management and staff members

exchange their views on the corporate business strategy and priority

issues. Other channels organized by the DX division to strengthen

internal communication include CEO One Table, a smaller-scale tea

meeting for the CEO and staff members, and the DX Connect Bulletin,

an online space for open communication.

DS Division The DS division organizes WeTalk, a program led by the

division head and executive management and streamed in real time,

and TeaTalk, a small-scale meeting of the division head and staff

members, on a weekly basis. DS also shares the latest developments of

the executive management through the release of the CEO’s Message

and is further diversifying its communication channels.

Online Communication Platform

We first began to operate an anonymous online bulletin to help

our employees freely share their opinions and thoughts in 2009.

In December 2020, we upgraded it into a comprehensive online

communication and info-sharing platform, Samsung Electronics NOW.

Employee Experience Management

We conduct a monthly survey known as the EX Pulse Survey to collect

our employees’ views on the work environment. We collect and analyze

employee experiences and take remedial action for any inconveniences

detected to enhance our employees’ morale, work satisfaction, and

productivity. The survey themes change each month to identify and

cater to their needs in a preemptive manner.

Work-Life Balance

Programs to Ensure Work-Life Balance

We continuously make improvements to our work systems by adopting

flexible and efficient programs tailored to individual job functions.

We allow our employees to customize their working hours and annual

leave and have more control over their schedule to provide a truly

“work-smart” environment. We also opened D'light (our on-site and

off-site flexible work-spaces) in 2022 as an extension of our “work

from anywhere” policy focused on enabling our employees to perform

their tasks regardless of location. It consists of off-site office spaces

designed to increase the productivity and convenience of those who

opt to work remotely and on-site library or café-style work-spaces to

encourage autonomous and creative work.

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Welfare Beneﬁts

We strive to ensure better quality of life, enhance work satisfaction,

raise morale, and maximize work engagement for our employees

through a range of welfare programs. We help our employees remain

prepared for their post-retirement life through personal pension

support, while also covering educational and healthcare expenses for

their family members. We also offer physical examinations and group

insurance services to promote workplace health and safety, as well as

an array of selective welfare programs based on individual needs.

Work Satisfaction Improvement

Improving Our Organizational Culture

We conduct the Samsung Culture Index (SCI) survey each year for our

employees around the world to diagnose our organizational culture.

Until 2021, we conducted a workspace satisfaction survey, and in 2022,

we developed an organizational health diagnosis to focus on identifying

our strengths and to remedy our weaknesses. The target areas of SCI

diagnosis are work engagement, team collaboration, and company

pride. For each area, we include Outcome Questions to identify the

current status of the organization and Driver Questions to highlight

improvement points. In 2022, over 240,000 employees at 138 business

sites participated in the survey.

We offer organizational culture consulting for units with lower SCI

scores to identify improvement points and seek solutions. We engage

professional consultants if deemed necessary and encourage the unit

head and staff members to join hands and develop improvement plans

for problems detected through the survey and employee interviews.

We also check if the problems are properly remedied and receive

feedback through post-consulting satisfaction surveys.

New SCI Structure

Work

Engagement

Team

Collaboration

Company

Pride

Family Day (Korea)

In an effort to counterbalance the work-driven culture in Korea, we have

policies in place to encourage employees to spend quality time with

their family and friends. A case in point is the Family Day - or the monthly

payday - when employees leave work early. Some organizational units

have developed this program into biweekly or weekly short work days.

Remote Working for Work-Life Balance

We offer remote working options to help maintain a better work-life

balance. The percentage of those working remotely has continued to

increase post-pandemic. As of March 2022, 39% of our employees at

global sales offices and research institutes were telecommuting.

D’light (Korea) for Flexibility at Work

D’light, developed to promote flexibility at work, consists of two off-site

office spaces in Seoul (Seocho Building) and Daegu (ABL Tower) and four

on-site work-spaces in Suwon (Digital City), Seoul (Seoul R&D Campus),

Gumi (Smart City), and Gwangju (Green City).

Employer Branding Activities

Under the key message of "Diverse eXperience in Samsung", we value the

experiences of our employees and, by doing so, strive to remain relevant

and competitive as an employer. We work with "employeeners (employee

+ inﬂuencers)" who share their stories of working at the company with

internal and external audiences through self-made videos.

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Promoting Diversity, Equity, and Inclusion

Non-Discrimination Policy

We ensure that all of our employees, both our current and prospective

employees are given equal opportunities based on our non-

discrimination policy (Samsung Electronics Anti-Discrimination and

Harassment Policy

). We do not discriminate against any current

or prospective employees based on gender identity, race, ethnicity,

nationality, religion, age, marital status, sexual orientation, among

others or in HR matters such as job assignment, promotion or

compensation.

We also strive to respect and protect the human rights of workers

based on the UN Universal Declaration of Human Rights, OECD

Guidelines for Multinational Enterprises, and local laws of different

countries.

Our DEI Principles

In 2022, we established diversity, equity, and inclusion principles to be

taken into consideration in all of our business activities in collaboration

with UX experts and strive to apply them to the products and services

we offer.

As our products and services target the 8 billion potential users

around the world, it is imperative that we remain inclusive. We must

respect individuals’ traits and freedom of expression and not judge or

perceive them as stereotypes. To this end, we must continue to monitor

our actions and decisions throughout the entire process of product

planning, development, and release to check if any element is likely to

marginalize or cause harm to others.

We plan to conduct campaigns and trainings on the DEI Principles for

our employees around the world.

Governance

We established the DEI Ofﬁce to develop company-wide DEI strategies

and implement diverse programs to enhance our DEI performance

in collaboration with relevant staff members of our businesses and

subsidiaries. The DEI Council joins hands with functional organizational

units including the Corporate Sustainability Center, Global Marketing

Ofﬁce, Corporate Communications Team, and Corporate Design Center to

seek solutions to company-wide DEI issues.

In 2022, we worked with the council to establish our DEI Language

Guide, launched a social media campaign to celebrate International

Women's Day, and collaborated with external stakeholders. Over 200

DEI managers regularly share and distribute best practices identified

at our business sites around the world. In addition, we actively support

Employee Resource Groups (ERGs

) that voluntarily engage in

mentoring, cultural exchanges, and community outreach. More than

5,200 employees around the world are taking part in ERGs organized

under various themes.

Areas of Focus

We respect the unique cultures of individual regions and the beliefs

of individual employees. As we are present at over 230 locations in 74

countries, we respect each region’s autonomy and variations in their

approach to enhancing DEI. At the global HQ-level empowering women

and persons with disabilities are core focus areas and as such, diverse

strategies are in place at the regional level.

Celebrate diversity Challenge assumptions Stay curious

DEI Office

- Corporate

Communications Team

- Corporate Sustainability

Center

- Corporate Design Center

- Global Marketing Office

DEI Council

People Team for

each region

People Team at each

subsidiary

(production / sales /

research staff)

Employee Resource Groups (5,200 members in North America, Europe,

Southwest Asia, and Latin America)

* Women, persons with disabilities, race, inter-generation, LGBTQ+, veterans,

working parents, among others

Implementation

units

People Team within

each business

We believe in building a diverse, equitable,

and inclusive workplace that is key to innovation

and progress. We strive to nurture a corporate

culture that brings together people from different

backgrounds inspiring them to shape a better

tomorrow for our customers, partner companies,

and local communities.

Diversity, Equity,

and Inclusion

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Empowering Women in the Workplace

As part of our focus on building a culture centered on diversity, equity,

and inclusion, we strive to inspire our employees to reach their full

potential through access to equal opportunities. We operate a range of

programs and policies to ensure gender equality in recruiting new hires

and to help our female employees return to work and successfully build

their career after taking leave for pregnancy and childbirth. In Korea,

we made it possible for pregnant employees to apply for the reduced

working hour program across their entire pregnancy period from 2023

– well beyond the eligible period of “within 12 weeks or after 36 weeks

of pregnancy” set by national law. We also offer 15 days (20 days for a

multiple pregnancy) of paid childbirth leave for spouses and ﬁve days

of paid fertility treatment leave. We also strive to address gaps in the

national law through policies such as three days of paid stillbirth and

miscarriage leave for spouses.

We are operating the nation’s largest network of in-house daycare

centers for working parents and currently reviewing its expansion to

meet the needs of the increasing number of employees. We introduced

a reboarding program that offers training, mentoring, and remote

working options to employees returning to work after childcare leave

and operate snack corners for pregnant employees within in-house

cafeterias and reserved seats in commuter shuttles.

Women Leadership Targets

We strive to increase women in our leadership positions by setting

internal targets and closely monitoring the share of women in the

recruitment, promotion, and retirement of our employees. As a result,

within the last ten years the share of female executives grew from 2.4%

to 6.9% and that of female managers from 8.3% to 16.9%.

Gender Pay Gap in Korea

We are committed to a policy of equal pay for all employees with

equivalent levels of experience and performance, regardless of gender.

An analysis of gender pay gaps in 2022 in Korea based on our career level

(CL) system found that there was close to none among CL 1 employees,

1% among CL 2 professionals, and 5% each among the CL 3 and CL 4

groups. Nevertheless, an analysis of average wages of the workforce

in Korea found a notable gender gap of 23.1%. Although it is an 11.7%p

improvement from 2013, the gap remains relatively large which is mainly

due to the smaller share of women in leadership positions. As such, we

continuously strive to increase women in leadership positions though

internal targets and programs. Moreover, we are seeking ways to address

gender pay gaps within our global workforce.

We transparently disclose the gender pay gaps at our

UK and France

subsidiaries and foster women professionals and leaders.

Global Self-Assessment on Gender Equality

We assessed the status of gender equality and women’s empowerment

at our major global business sites using the Women's Empowerment

Principles Gender Gap Analysis Tool (

WEPs Tool) and took remedial

actions for the improvement points identiﬁed. As of this effort, we revised

the systems and trainings on gender equality at these sites and plan

to address additional room for improvement including strengthening

communication with local stakeholders. We also distributed the

guidelines on enhancing gender equality at our production sites and

research institutes with the aim of helping them establish relevant

policies. For example, tangible improvements have been made in terms

of infrastructure such as on-site nursing facilities, priority seats in

commuter shuttles, and priority parking spots, based on these guidelines.

Next-Generation Women Leadership Workshop

The Next-Generation Women Leadership Workshop has been operated

since 2021 in Korea to provide support for our female executive

candidates to take a successful leap from a working-level position to

an executive position. The Workshop offers participants mentoring

by female executives, coaching on leadership skills, and networking

opportunities with their peers. This Workshop helps participants

establish their own vision and goals and exchange valuable

experiences and knowledge with their seniors of the same gender. We

plan to continuously expand networking opportunities of this kind for

our female employees.

Gender Pay Gap in Korea (2013-2022)

34.8

33.9

31.8

30.2

30.7

27. 3

28.4

27.9

25.3

23.1

13 1714 1915 2016 2118 22

Gender Equality Training

Since October 2022, DX conducts specialized trainings to enhance our

employees’ awareness of gender equality at our global production sites

and R&D centers. Learning materials were developed in collaboration with

Business for Social Responsibility (BSR) with a focus on understanding

concepts such as gender differences and stereotypes. We are employing these

materials in our country- and culture-specific trainings on gender equality.

Participation in the Gender Equality Korea Leaders Network

Managers from the DEI Office participated in the Gender Equality Korea

(GEK) Leaders Network launched by UN Global Compact Network Korea in

2022 and exchanged benchmarkable cases in women’s empowerment and

cultivation of female leadership.

Category

2012 2017 2022

Women by job type

Development(%) 16.0 17.7 19.2

Sales and Marketing(%) 30.0 29.7 33.6

Women in leadership

Executives(%) 2.4 6.8 6.9

Managers(%) 8.3 13.2 16.9

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Supporting Employees with Disabilities

Fostering an Inclusive Work Environment for

Employees with Disabilities

We strive to create an inclusive work environment and expand of

employment of persons with disabilities.

· Enhancing accessibility of facilities (e.g., low-floor buses, table bell

system at in-house cafeterias, installation of standing desks)

· Procuring services from companies registered as a standard

workplace for persons with disabilities (services include car wash,

laundry, printing, software verification, and florists)

· Identifying functional roles – such as user experience research and

accessibility features enhancement – that can benefit from the

experiences and perspectives of employees with disabilities

Stellar Forest*

We established Stellar Forest, a subsidiary-type standard workplace for

employees with disabilities, through a 100% equity investment as an

extension of our efforts to create jobs for persons with developmental

disabilities. Currently producing baked goods supplied to our in-house

cafeterias, Stellar Forest plans to diversify into other fields to create more

jobs for persons with disabilities.

* A business site equipped with accessible production, convenience, and auxiliary

facilities that has a workforce composed of employees with disabilities whose

percentage meet the national requirements

In-House Advisory Group of Employees with Disabilities

for Accessibility Enhancement

We continue to reinforce the accessibility of our products and services

based on our accessibility vision of “Caring for All.” In September 2022,

we launched Samsung Family Supporters, a voluntary advisory group

on product accessibility and usability comprised of our employees with

disabilities and our employees’ family members with disabilities. The

42 members with visual, hearing, and physical impairments participate

in the testing of developmental-stage products and provide their

feedback on accessibility features.

Improving the accessibility of our products and services to ensure

usability regardless of users’ disability continues to be a priority for us.

Participatory Development of Awareness-Raising

Training Materials

Since 2018, we have offered training modules to all employees to

improve their understanding of persons with disabilities and reached a

100% completion rate.

In 2021 and 2022, employees with disabilities participated in the

design and production of the contents, communicating the relevant

corporate policies and sharing their experiences first-hand through

video appearances. The course received positive feedback from many

employees who commented that the training motivated them to take

greater interest in relevant corporate initiatives, including Samsung

Barrier Free (SBF).

Support for Employees with Disabilities at

Our Production Sites in Brazil

As part of our efforts to provide an inclusive work environment for

employees in Brazil, we offer counseling services in sign language for

hearing-impaired employees as well as online and in-person sign language

courses available to all employees at the Manaus production site. At the

Campanas production site, we celebrate the Day of Persons with Disabilities

every year by hosting special events that are mindful of accessibility.

The average employment rate of employees with disabilities at our four

Brazil subsidiaries stands at 5.2% as of 2022. In 2018, they were selected

as an outstanding employer of persons with disabilities by the state

government of Sao Paulo.

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ERG Objectives

Women

Our women ERGs strive to ensure equal opportunities

regardless of gender and empower women. They serve as an important

channel of communication and exchanges and support community

outreach activities promoting gender equality.

Persons with disabilities

Our persons with disabilities ERGs focus

on listening to the voices of employees with disabilities and ensure

that they are given equal opportunities. They also collect ideas and

opinions on the accessibility features of our products from colleagues

to enhance inclusion for customers.

LGBTQ+

Our LGBTQ+ ERGs work to raise awareness, provide support,

and create an inclusive workplace for LGBTQ+ employees.

Inter-generation

Our inter-generation ERGs strive to attract young

talent, promote communication between different generations and

build a forward-looking corporate culture through diverse networking

and outreach programs.

Race

Our race ERGs focus on promoting interaction among people of

diverse cultural backgrounds and creating an inclusive organizational

culture.

Working parents

Our working parents ERGs provide opportunities for

working parents to share their experiences and encourage one another

to lead successful professional and personal lives.

Veterans

Our veterans ERGs provide support for veterans and their

families through sponsorships and volunteer activities in collaboration

with government organizations for veterans and local communities.

They also seek ways to build a more inclusive corporate culture by

sharing issues concerning veterans.

Generation-Specific Activities

We established the Future Generation Lab in 2021 as an extension of

our efforts to actively reﬂect the opinions of our Millennial and Gen Z

employees.

Future Generation Lab, which consists of those in their 20s from our

global business sites, successfully released the Eco-Friends accessory

brand aimed at promoting environmentally responsible consumption

and expression of individual identity. The Eco-Friends products, made

with recycled plastic and vegan leather containing 40% post-consumer

materials (PCMs), have been well-received in 29 countries.

Meanwhile, since 2019 we have acknowledged employees with more

than two decades of experience in a manufacturing ﬁeld which requires

technical expertise and knowhow as well as leadership as top-notch

experts through the Samsung Artisan Certiﬁcation Program.

In 2022, we established the Senior Track program, which provides

outstanding employees with opportunities to continue their service

at work post-retirement. The candidates recommended by the heads

of respective organizational units are screened through a review of

their technical expertise. This program is expected to help retiring

employees’ transition to their post-retirement life and also benefit

others by sharing their skills and knowledge.

Inclusiveness of Organizational Culture

In 2022, items in the Samsung Culture Index (SCI) survey were revised

to include DEI-related questions. The survey is expected to serve as

a useful channel to collect our employees’ views on building a more

inclusive organizational culture.

The 2022 results showed that 93% of our global employees viewed

our programs and initiatives as being fairly operated regardless of age,

gender, race, or place of origin.

Employee Resource Groups

ERGs around the World

Employee Resource Groups (ERGs) are organized by our employees

with shared interests in diversity, equity, and inclusion and have been

active since 2013. Members engage in mutual mentoring, cultural

exchanges, and community outreach activities related to various

themes. Our ERGs not only contribute to enhancing our employees’

awareness of these subjects but also bring positive change to local

communities.

Over 5,200 employees in North America, Europe, Latin America,

and Southwest Asia are taking part in 33 ERGs. We encourage ERG

activities at the company-level and recommend that at least one ERG is

established in each region.

2022 SCI – Results of DEI Satisfaction Survey

My manager encourages open discussions and

dialogue with me.

My team members value diverse perspectives.

In this Company, I am treated fairly regardless of age,

gender, gender identity, race, sexual orientation, military

status, disabilities, religion and national origin.

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Interviews with ERG Leaders

INTERVIEW

“WiSE is an ERG whose purpose is to empower and inspire women

to break the glass ceiling within the company and the wider group. I

believe in gender diversity and its benefits to an organization. 2022

was the start of the journey for WiSE, SIEL’s first ERG. We had an

education series focused on the what, why, and how of ERGs to allow

employees to understand the concept and the role they can play.”

“I see my invisible disabilities (dyslexia and dyspraxia) as superpowers

as I bid to apply creative thinking and problem solving to great

success. I want people to have confidence in their disabilities and see

them as their superpowers. True Ability has been planning activities

to raise awareness about disabilities and it is very much the start of

the journey to educate, influence and evolve.”

Steven Woodgate

SEUK, UK

Leader of True Ability

Karina Sudarsan

SIEL-S, India

Leader of Women in Samsung Electronics (WiSE)

“We did so much last year, from our first in-person LGBTQ+ Day of

Service events to our Pride event at Samsung 837

. I love leading

this ERG, but it wouldn’t be possible without the powerhouse team of

leaders and members I have worked with!”

“We have been pushing and partnering for positive change for all.

In 2022, we focused on expanding partnerships as a strategic pillar.

We connected with 8 other US-based companies to create a suite

of programs in honor of the Juneteenth celebration in 2022. This

partnership remains active today and the conglomerate is working on

the 2

year of planning for our cross-company employees.”

* In collaboration with Microsoft, Verizon, Wyndham, Nike, State Farm, Sodexo,

Asurion, and LinkedIn

Nash Gammill

SEA, US

Leader of PRIDE

Seth Brown

SEA, US

Leader of Galaxy of Black Professionals (GBP)

“Being the National Leader of UNIDOS is a great honor as it allows

me to contribute to creating a welcoming and engaging environment

for our members and broader employee base. We established a

partnership with DePaul University in 2022, providing free seminars

to SEA’s employees focused on personal development. We offered

7 seminars delivered by DePaul professors on topics including:

Selling the Best Possible You, the Power of Introvert Leaders, and

Mindfulness@Work.”

Nora Lango

SEA, US

Leader of UNIDOS

“Building camaraderie and esprit de corps are key values in our

mission as MAG. We have hosted monthly meetings with informative

guest speakers, engaged in a couple of volunteering event, and

celebrated important milestones for the military. I am also excited

that we are including more than our employees at the Austin campus

and have focused on those working at our satellite office and the

Taylor construction camp.”

Mike Atencio

SAS, US

Leader of Military Appreciation Group (MAG)

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Accessibility

Accessibility Council

Our Accessibility Council serves as a platform to bring together

planners, designers, and developers of different organizational

units to work on improving accessibility for all customers using our

products and services. The Council’s main focuses are enhancing

usability for customers with disabilities and advancing technological

competitiveness.

Voice Guide

· Enabling smart TVs to read on-screen text

· Offering verbal feedback for basic features (channel,

volume, program information, etc.) and access to

smart services

Magnification

· Enabling users to enlarge on-screen text and images

up to 200% and zoom in on different parts

Relumino Mode

· Outlining objects, enhancing contrast, and adjusting

brightness and color to highlight content

Home Appliances

TalkBack for Home Appliances and Services

· Screen reader to enable users to identify features

and services of home appliances connected to

SmartThings

· Verified and enhanced by vision-impaired experts

to provide tailored user experiences

Braille and Tactile Points

· Providing easy access to the available cycles and

features by installing Braille or tactile points on

the main dial and buttons

· Available on selected washer models released

from 2019 and being applied to other home

appliances as well

Control Panel with Improved Visibility

· Control panel of washers and dryers, on which

cycle and feature names are typically printed,

replaced with an LCD panel with enlarged text to

ensure visibility even in dark environments

*Available on models released from 2020

Accessibility Vision

TalkBack

· Providing voice feedback to eliminate the need to look

at the screen for text and images

Display

· Enabling low-vision users to activate useful accessibility

features simultaneously

· Large Display mode to enlarge on-screen elements and

bold text

· High Contrast mode to activate an opaque black

background, high contrast fonts, high contrast keyboard,

and Remove Animations simultaneously

Our Vision

Creating Better Pathways for All

We bring meaningful

change by

interacting and

engaging with our

customers.

Engaging

Communities

We ensure access to

equal experiences for

all users.

Promoting

Equity

Lasting

Commitment

We remain committed

to continually building

an inclusive culture

and process to create

experiences that

benefit all.

We provide inclusive products and services that

enable users under diverse conditions to enjoy

a digital lifestyle that goes beyond convenience.

Tech for All

Features for Better Visual Accessibility

Mobile and Wearable Devices

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Auto Caption Position

· Automatically adjusting subtitle positions so as not to

interfere with text through advanced video analysis

Sign Language Guide

· An avatar describing features in the TV Menu

in sign language

Mobile Devices

Flash Notifications

· Using the camera flash or screen flash to alert

users instead of sound or vibration

Alerting hearing

· Impaired users of important noises such as a smoke

alarm or baby crying

Home Appliances

Blinking Light for Door Open Alarm

· Blinking light, in addition to a sound alarm, to indicate a

refrigerator door has been left open for more than five

minutes

Accolades

‧

TV, Winner of CES* Innovation Award for Accessibility (2015-2018, 2021, 2023)

‧ TV, Winner of CES* Best of Innovation Award (2016, 2021)

*CES: Consumer Electronics Show

‧ TV, Winner of U.K.’s RNIB* Inclusive Society Award (2016)

‧ Attained U.K.’s RNIB Tried and Tested Accreditation (2020-2022, 2022-2024)

*RNIB: Royal National Institute of Blind People

‧ TV& Mobile accredited for Accessibility Technologies by ONCE* (May 2021-

May 2023)

*ONCE: Organización Nacional de Ciegos Españoles

‧ Mobile awarded Thailand’s TAB*’s Honor Plaque (2021-2023)

*TAB: Thailand Association of the Blind

‧ Selected as supplier for Korea Communications Commission’s project to

distribute TVs for people with visual and auditory disabilities (2020-2023)

‧ Bespoke 1-Door Refrigerator, Grand Prix Winner of Ergonomic Design

Award hosted by the Ergonomics Society of Korea (2022)

‧ Bespoke Jet, Winner of Best of Best of Ergonomic Design Award hosted by

the Ergonomics Society of Korea (2021)

‧ Bespoke Jet Bot AI & Bespoke Qooker, Winner of Best Innovation of

Ergonomic Design Award hosted by the Ergonomics Society of Korea (2021)

Features for Better Visual Accessibility Features for Better Mobility Accessibility

Mobile Devices

Interaction Control

· Keeping the device focused on a single app by disabling

the Back, Home, and Recent buttons and alarms for

incoming calls and notifications, as well as the side key,

volume keys, and touchscreen function

Home Appliances

Displaying Frequently Used Cycles and Features*

· Remembering frequently used cycles of the washer

and dryer and frequently used features of the oven and

displaying them at the top of the list

*Applied to products with LCD screens

Features for Better Cognitive Accessibility

Slow Button Repeat

· Performing a continuous operation while lowering

the speed by pressing and holding one button on

the remote control

Mobile Devices

Voice Access

· Providing voice commands to access and operate

diverse features such as apps, screen enlargement,

volume adjustment, etc.

Home Appliances

Automatic Door Opening

· Enabling mobility-challenged users to open the doors

of home appliances with ease

* Available on select models

Refrigerator: Doors automatically opened when

bringing a hand near the touch sensor or

when providing voice feedback (“Open

the refrigerator door”) via Bixby on the

smartphone

· Washer: Door automatically opened after the

completion of each cycle

· Dryer: Door automatically opened when switched on

or completing a cycle

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Privacy Protection

We ensure that personal data is collected in a transparent manner and

that the collected data is handled safely. We respect each user’s choice,

remain prepared for relevant risks, and employ advanced security

technologies for privacy protection.for privacy protection.

Valuable personal data

Securely protected and easily managed

Managing all personal data connected to your

account at one time

Browsing the Samsung Privacy Policy at one time

Privacy Protection Management

We are operating a country-speciﬁc Global Privacy Policy, which reﬂects the respective country’s laws and regulations, to safeguard the privacy of

global customers in an optimal manner. The Privacy Protection Guidelines for Employees and Guidelines on the Third-Party Processing of Personal

Data are distributed to our employees along with related training to improve their awareness and understanding of the guidelines.

Our Visual Display Business attained both ISO/IEC 27701 (privacy information management system) and ISO/IEC 27001 (information security

management system) for digital signage for the ﬁrst time in the industry.

Organizational Units in Charge

 Establishing privacy strategies, policies, and related processes

 Providing legal advice and support

 Conducting regular audits

 Conducting employee training to raise their awareness of privacy issues

 Head of the Global Privacy Office serving as the Chief Privacy Officer (CPO)

Global Privacy Office

 Making decisions regarding privacy policies and protection measures

 Discussing privacy-related issues for different products and services with

relevant businesses and seeking solutions

Privacy Steering Committee

 Reviewing the privacy protection status of the respective business and

conducting training

 Ensuring the application and management of privacy protection

technologies

Privacy Protection Officers within Businesses

 Reviewing the privacy protection status of the respective regional office

and conducting training

 Responding to privacy-related issues

Privacy Protec

ion Officers at Regional Offices

Privacy Protection Management Process

Trend Monitoring*

Monitoring the enactment and

amendment status of related

laws and regulations and joining

relevant organizations*

* We joined the International

Association of Privacy Professionals

(IAPP) in 2015.

Policies and Training

Establishing relevant policies,

guidelines on third-party processing,

and response measures to personal

data leakage and conducting

employee training

Program Operation

Operating company-wide, business-

specific, and region-specific privacy

protection programs

Auditing and Remedy

Performing audits on the application

of the Privacy Policy and taking

remedial action accordingly

Our Three Privacy Protection Principles

❶

Transparency

We transparently disclose the details of how we collect and handle

personal data.

❷

Security

All of our products are designed to provide the best services and

securely protect users’ privacy.

❸

Choice

We enable users to choose the type and extent of personal data to

be collected, accessed, and shared.

Samsung Privacy Policy

Samsung.com Privacy Protection Features

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Privacy Protection System Operation and Training

We operate in-house systems to reduce privacy risks and encourage all

employees to prioritize customer privacy through related training.

Privacy Legal Management System (PLMS)

PLMS is designed to ensure compliance with privacy-related laws and

regulations. It is connected to product R&D and the product Life cycle

management system to monitor privacy-related matters from product

and service planning to development, operation, and discontinuation and

thereby prevent risks. It also offers news and the latest developments

concerning privacy protection to keep our employees updated.

Privacy Protection Training

We strengthen the privacy protection capacities of our employees

through annual trainings - including a mandatory training for all

employees based in Korea as well as a targeted training for employees

in functions directly involved in handling personal data.

Since 2020, we provide a video guide on the collection, use, and

disposition of personal data in line with our Global Privacy Policy.

Data Breach Response Process

At Samsung, we have a data breach response process in place that

enables Samsung to assess a data breach incident and to take remedial

measures immediately upon detection of the incident. We promptly

notify and report to the affected users and the relevant authority

respectively in compliance with the applicable data protection laws.

Where a notification is provided to the affected users, the following

information are communicated via e-mail or a notice on our website;

the category of the breached data, when and how the breach occurred,

the measures that the affected users can take to minimize the damage,

the remedial measures taken by us and our point of contact for any

queries by the affected users to prevent data breach and to minimize

any damage to our users in the case of such an incident.

Our Efforts to Ensure Responsible Advertising

We strictly apply the Global Privacy Policy to advertisements that are

directly executed on mobile and IoT devices.

Enhanced Privacy Protection

When accessing a user’s information for targeted advertisements, a

separate randomly generated ID is used. The respective ID can be reset

at the request of the user. The use of information collected under the ID

prior to reset is immediately suspended.

We also enable users to opt out of receiving targeted advertisements

on their mobile and Smart Hub devices. To collect and use personal

data for targeted advertisements, we clearly notify our purpose and

obtain prior consent from users. The targeted advertisement option

can always be disabled in Settings. With this option disabled, only non-

targeted advertisements will appear.

Prohibited Content in Advertisements

We have defined the following contents, which may inflict harm on

users, and ﬁltered them from advertisements.

Number of Employees Who Completed

Privacy Protection Training (Korea)

2020 2021 2022

No. of employees

86,455 90,281 96,459

Data Breach Response Process

Breach discovered

Report the breach

(e.g. Security/Service

Operation/Legal Team)

Access the breach

Establish and implement measures to

prevent recurrence of the incident

Case closed

Create a remedial plan and implement

emergency measure

Implement the remedial measures

(e.g. notiﬁcation, security measures)

 Content that incites violence against or advocates for certain groups,

including those defined by race, ethnicity, race, nationality, disability, age,

military service status, or sexual orientation or identity

 All forms of illegal acts and acts that instigate illegalities; all forms of

illegal substances; and websites related to illicit, false, or exaggerated

investment advice and money-making proposals

 Violence including the use of obscene or vulgar language, bullying,

physical harm, and injury to or killing of both people and animals

 Religious and occult content, imagery, and symbols

 Illegal drugs and drug paraphernalia

 Tobacco and tobacco-related products

 Firearms

 Obscene and sexual materials

 Alcohol and content related to online and offline marketing or

promotional activities that incite excessive alcohol consumption

(Prohibited both in online advertisements and broadcast commercials)

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Security

To ensure that users can enjoy their digital environment with their minds at ease, we continuously strengthen our security system against complex

and intensifying threats.

Samsung Knox

We take a holistic approach to the security of our products and services.

Samsung Knox is engineered to securely protect chipsets, operating

systems, and apps against hacking attempts and unauthorized access.

Saved user data are protected on a real-time basis while the device is

used or booted. Beyond smartphones, tablets, and smart TVs, Samsung

Knox continues to expand its integration with smart home appliances,

IoT, and 5G network devices.

Samsung Knox Security Principles

Samsung Knox offers advanced and targeted security solutions that

meet the evolving needs of corporate clients and have been certiﬁed

by the government in various countries.

Four Pillars of Our Cyber Security Control and Our Solution Development Process

Four Pillars of Our Cyber Security Control

Prevention and Hardening: Fulﬁlling stringent standards

 Hardware chipsets using our proprietary technology in preparation for

cyberattack attempts

 Separate security processors

Detection: Staying vigilant at all times

 Monitoring incidents concerning digital devices and networks

 Activating the defense system upon the detection of any possible malicious

intrusions

 Detecting and blocking cybersecurity threats such as malware and phishing

Prediction: Preparing for possible incidents

 Performing regular testing to verify the effectiveness of our solutions

 Providing the optimal security system based on our expertise, big data

analysis, and AI technology

Response: Taking prompt and targeted actions

 Accurately analyzing detected problems, vulnerabilities, and projected

damage

 Promptly blocking cyberattack attempts detected through the security

control system

 Offering optimized security patches and updated security solutions

Security Certiﬁcations for Samsung Knox

AIVD Traficom ISCCC STRK

ANSSI CCNNCSC ASD

Common Criteria DISA FIPS 140-2 FIPS 140-2

BSI

We are equipped with an internal development process to offer advanced security solutions.

Planning

 Define and review

security requirements

 Identify privacy and

security risks

Design and Analysis

 Conduct threat modeling

 Review security architecture

Implementation

 Review security coding

 Review open-source security

 Reviewthreat modeling for

response

Testing

 Diagnose vulnerabilities

 Perform mock infiltration

testing

Operation and Maintenance

 Monitor and respond to

incidents

 Update security patches

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Samsung Knox Security Principles in Detail

Adopt Proven Cryptography Technologies

We adopt proven cryptographic algorithms and technology to offer

data protection solutions.

Samsung's products and services use internationally recognized

and standardized cryptographic technologies. We verify and certify

implementations of these cryptographic technologies through

certifications such as the Federal Information Processing Standard

(FIPS). Data is stored in encrypted form. Our data protection

mechanisms are applied to data-at-rest and data-in-transit.

Trust from the Hardware Up

We build our Chain of Trust from tamper resistant hardware Root of

Trust (RoT).

Our RoT is deeply embedded in our chips and not exposed to the

outside variables while accessible only to a limited set of applications.

We make sure our primary software functions are not tampered with

while offering end-to-end protection of personal data.

Provide Securely Protected Software Execution Environment

We provide a dedicated execution environment that processes

sensitive and confidential data while protecting against malware

attacks.

Protected video playback, user authentication and payment

applications run in our safe execution environment. For user

authentication apps, our safe execution environment blocks

unauthorized access to sensitive biometric information. For payment

apps, our safe execution environment ensures secure handling of

payment transactions.

Keep Sensitive Data in Fully Isolated Secure Storage

Highly sensitive data such as biometrics, PIN values or PII are stored

in fully isolated secure storage that is robust towards data leakage

threats. Our fully isolated secure storage is resistant towards physical

attacks.

Apply Stronger User Authentication Technologies

Apply strong authentication techniques that qualify only designated

users to access our devices and services.

A broad range of user authentication technologies such as PIN, pattern,

password, ﬁngerprint, and iris recognition are used in combination to

offer strong user authentication. Our user authentication technologies

grant access to internet services controlled using Samsung Account,

and multi-authentication techniques.

Apply the Latest Security Updates

We apply the latest security updates and patches to combat attacks

from the ever-changing malware and hacking landscape.

Samsung products provide security updates through a variety of

channels. We offer online Over-the-Network updates as well as

periodic and urgent security updates to broadly and swiftly address

vulnerabilities.

Proactively Prevent Tampering of Code and Data

We deploy technologies that detect illegal tampering activities in

users' devices and services.

We proactively build mechanisms that notify and alert users of

these activities so they can mitigate adverse impacts. We verify the

integrity of the executed software at boot up time using secure boot.

Our software veriﬁcation technology applies to software updates and

prevents unveriﬁed software installation.

Follow a Strict Security Development Process

From concept to end of life, we follow a strict security development

process that covers the entire lifespan of our products and customer

experience.

Our security policies extend out to classifying, handling and

processing how we protect personal data and other forms of

conﬁdential data. We go through rigorous security design reviews that

consider all type of attack vectors. We constantly monitor the threat

landscape for emerging threats over our devices and services.

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Mobile Security

Samsung Knox Vault

Pre-installed in the Galaxy S21 and subsequent series, Samsung Knox

Vault combines a secure processor with a new Secure Memory Chip to

safely store and protect PINs, passwords, biometric information, digital

certificates, and security keys in isolated locations. Samsung Knox

Vault offers an operating environment independent from Android,

thereby effectively protecting apps and user information against

attacks based on Android security vulnerabilities.

Mobile Security Updates

We perform regular and prompt security updates.

In close collaboration with Android OS, our chipset partners, and

over 200 telecommunications operators around the world, we

update security patches for billions of Galaxy devices when security

vulnerabilities are detected. We work with over 1,000 partners to

establish security standards for all Android devices, as well as security

research communities to provide the most secure mobile experiences

for users. In February 2022, we expanded the security update warranty

for Galaxy mobile devices to up to ﬁve years.

* Supported devices: Flagship mobile phones, Tablets, and a part of A series mobile

phones released since 2021

· Industry’s best security chipset (CC EAL* 4/5+ certification)

· Secure processor that prevents hardware attacks

· Tamper-resistant security memory

* Common Criteria Evaluation Assurance Level (CC EAL) an international

standard for online security certiﬁcation

Security Training for Employees

We offer a range of training courses to raise internal awareness of

cybersecurity, including an on-line course that informs employees of

the types of security risks and prevention measures.

Additionally, we provide tailored and technical courses to engineers

and developers in each business unit, such as security coding and

engineering, security software development process, and vulnerability

management.

Key Semiconductor Technologies and Customer Information

Protection

Semiconductor Technology Security

We continually strive to enhance protection measures for our

important information assets in recognition of the fact that enhanced

semiconductor technology security is imperative to preserve the

wellness at the national, customer, and user-level beyond our company.

Information Security Management System

We conduct regular audits* to prevent security system and product

security accidents. We also ensure that our suppliers’ security

management is being performed properly. We continue to enhance our

security management as evidenced by third-party certiﬁcations such

as the Common Criteria and ISO 27001.

* Regular audits: The security management system for internal document

management, network vulnerabilities, and inﬁltration threats was reviewed through

the 2021 regular audits and enhanced based on the ﬁndings.

Semiconductor Technology Security System

Our semiconductor technologies are acknowledged as Korea’s

National Key Technologies* and are protected based on the Act on

Prevention of Divulgence and Protection of Industrial Technology. We

have implemented security management guidelines and designated

executive-level managers for individual technologies. These managers

are responsible for examining technical security procedures and

approving measures to protect such technologies.

* National Key Technologies: Designated by Korea’s Minister of Trade, Industry and

Energy in recognition of their technological and economic impact on the domestic and

global markets or high industrial potential

1. Technology for the design, processing, devices, and 3D stacking of DRAM

of 30nm class or lower

2. Technology for the design, processing, devices, and 3D stacking of NAND

flash of 30nm class or lower

3. Technology for the 3D assembly and testing of DRAM

4. Technology for the 3D assembly and testing of NAND flash

5. Technology for the assembly and testing of advanced system

semiconductor package

6. Technology for the processing, devices, and 3D stacking of foundries of

30nm class or lower

7. Technology for the design and processing of mobile application processor SoC

8. Technology for the design of LTE, LTE advanced, and 5G baseband modems

9. Technology for the design, processing, and devices of image sensors with

pixels of 1m or less

10. Technology for the design of OLED display driver IC (DDI) for display

panel driving

10 Semiconductor Technologies of Samsung Electronics Designated

as National Key Technologies

Information Security for Our Clients

We conclude non-disclosure agreements (NDAs) with our clients to

allow only authorized employees to access relevant information. We

also employ an email filtering service (Compliance Guide Service)

to filter outbound email messages containing any of our corporate

customers’ information to ensure conﬁdentiality.

Information Security Center and On-Site Activities

To safeguard our key technologies against the rapid changes in the IT

industry and internal and external security threats, we are operating

the Integrated Information Security Center dedicated to information

protection. We are also equipped with a specialized information

security system overseen by the executive vice president-level Chief

Information Security Ofﬁcer.

Our frontline staff members are designated as Security Agents

empowered to protect the key technologies and intellectual assets

of their respective organizational units and foster an organizational

culture focused on information security. Our Security Agents are

responsible for carrying out security training, inspections, and the

identiﬁcation of vulnerabilities, thereby raising internal awareness on

the importance of information security.

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AI Ethics

We seek to design user-centric products and services that are easily

accessible, safe, helpful, and continuously evolving through learning

based on AI technology.

Principles of AI Ethics

Under the aim of ensuring compliance with related laws and fulﬁlling

our corporate, social, and ethical responsibilities, we have set forth

the Principles of AI Ethics (fairness, transparency, and accountability)

that are reﬂected in development and operation of our products and

services.

Fairness

· The company will strive to apply the values of equality and diversity in

AI systems throughout their life cycle.

· The company will strive not to reinforce nor propagate negative or

unfair bias.

· The company will strive to provide easy access to all users.

Transparency

· Users will be aware that they are interacting with AI.

· AI will be explainable for users to understand its decision or

recommendation to the extent technologically feasible.

· The process of collecting or utilizing personal data will be transparent.

Accountability

· The company will strive to apply the principles of social and ethical

responsibility to AI systems.

· AI system will be adequately protected and have security measures to

prevent data breach and cyber attacks.

· The company will strive to benefit the society and promote the corporate

citizenship though AI systems.

AI Ethics Training and Partnerships

AI Ethics Training for Employees

AI Ethics for Bixby

We take necessary measures across the entire process of designing

and operating Bixby to remain prepared for and prevent any biases that

may be incurred.

We ensure compliance with the Sensitive Language Policy that reﬂects

individual countries’ laws, regulations, social norms, and customer

sentiment, while also developing and implementing the Sensitive

Language Database and Sensitive Recognition Engine. We continually

update the Sensitive Language Database to reflect evolving social

consciousness.

Sensitive Language Policy

· Laws, regulations, and ethics

· Customer sentiment

Sensitive Language Database

· Philosophy, religion, nationality, race, gender, crime, social issues,

emergency, etc.

Development and implementation

· Sensitive Recognition Engine

· Reflecting changes to the Sensitive Language Database in real time

Veriﬁcation

· Searching and testing sensitive language

Operation

· Identifying and responding to issues

Distributing the Guidelines on AI Ethics

Encouraging our employees to comply with the guidelines throughout the

entire process of designing, developing, deploying, implementing, and

operating AI-based products and services and practice the Principles of AI

Ethics in their everyday activities

Providing AI Model and Data Cards

Providing templates designed for entering information about AI model and

service development and evaluation processes as well as relevant data to

ensure transparency and accountability

Conducting Online AI Ethics Training

Conducting online training on global regulatory trends and guidelines

concerning AI Ethics for developers to raise employee awareness

Partnerships for AI Ethics

We closely cooperate with various stakeholders to bring attention

to the social impacts of AI and seek ways to utilize AI technologies

in a responsible manner. We continue to participate in the Industrial

AI Standardization Forum organized by the Korean government and

collaborate with academic, research, and industrial experts to establish

effective policies. The Forum aims to accelerate standardization for

the establishment of AI credibility evaluation criteria and AI ethics

guidelines, accumulation of quality data, and enhancement of the

interoperability of AI-driven industries.

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Open Innovation

Transformative innovation cannot be achieved by a single company

alone. It requires open-minded collaboration with multiple partners.

Based on our 3P Open Source Strategy, we are focusing on taking the

lead in key “projects”, securing talented “people”, and pursuing a stable

development “process” to enhance our open-source competitiveness.

Expanding into New Areas including AI, IoT, Security, and Robot

(AI) NNStreamer

· Providing more advanced and efficient AI scenarios by connecting

different devices via neural network streamer technology

(IoT) Matter

· Expanding user experiences by connecting mobile devices, TVs, and home

appliances with IoT by applying the home IoT open standard protocol to

SmartThings

(Security) CredSweeper

· Preventing the leakage of personal data, tokens, passwords, API keys,

etc., using the credential detection tool

(Robot) ROS2

· De-facto open source in robotics used for over 90 types of robots and

deemed to be the most influential

Tizen

· Our OS for TVs and home appliances, which continues to evolve by

supporting IoT, On Device AI, robots, etc., and is used by more than 330

million users from 2012

Attaining AI Credibility Certiﬁcation for Our Home Appliances

We became the first in the nation to attain AI Credibility Certification

granted by the Korean Standards Association (KSA) for Bespoke Jet Bot AI

and SmartThings Home Care.

AI Credibility Certification was established as a result of the Pilot Private-

Sector AI Credibility Certification Project launched in May 2022 by KSA.

This certification is granted to AI-based products and services verified for

their credibility and ethics. More specifically, they undergo verification in

the four areas of transparency, safety, accountability, and diversity.

For this certification, our products’ ability to recognize objects regardless

of brand, shape, type, etc., was statistically verified. Transparency and

safety concerning object recognition data collection and processing were

also reviewed. For more details, please click the link below.

CASE

* Bespoke Jet Bot AI and SmartThings

Home Care – the first to attain AI

Credibility Certification granted by

the Korean Standards Association

PEOPLE Open Source Specialists

Expanding Open Source Leaders

· Identifying key open source areas, expanding their scope, and fostering open

source leaders through diverse in-house support programs every year

Collaborating with External Developers

Expanding joint open source development projects engaging youth

and external developers

· Samsung Junior Software Cup

· Samsung SW Academy for Youth

· Samsung Open Source Influencer SOS Companions

Networking with diverse open source communities

· Samsung Software Developer Conference(SSDC)

· Global events including SOSCON-India and SOSCON-Russia

· Developer community meetup events, training, workshops, etc.

PROCESS Open Source Operation System

Promoting Open Development

Encouraging internal code-sharing and joint development

· Building in-house open source development infrastructure for software

collaboration

· Promoting participation through inner source project registration and

best practice contests

Operating Samsung Open Source Portal

· Serving as a gateway for external cooperation and communication

Obtaining International Certiﬁcations

OpenChain (ISO/IEC 52302020)

· Certification for companies equipped with efficient and consistent open

source systems for software development

3P Strategy to Enhance Open Source Competitiveness

PROJECT Open Source Projects

See article

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Samsung Software Developer Conference (SSDC)

The Samsung Open Source Conference, which had been held annually since

2014, was revamped into SSDC. SSDC gathers software developers from

around the world to discuss and collaborate on research and innovative

technologies such as AI, IoT, 5G, cloud computing, and Big Data.

It provides a platform for exchanges between our company and global

software developers centered on the theme of “Learn, Share, and

Network” and helps them build stronger bonds. It has brought together

over 13,500 participants through 360 sessions as of 2022.

Samsung Future Technology Development Initiative

We launched the Samsung Future Technology Development Initiative

in 2013 based on our strong belief that investment in basic science is

imperative for the long-term advancement of humanity and various

industries. This initiative prioritizes support for selected projects in

basic science, novel materials, and ICT based on the principle of “high

risk, high impact” aimed at encouraging researchers to pursue high-

impact projects without holding them responsible for failure.

To facilitate the commercialization of project results, we offer programs

such as the R&D Exchange Meeting, patent application mentoring, and

expert consulting for startup foundation and commercialization.

The Samsung Future Technology Development Initiative is evaluated

to have contributed to expanding the horizons of Korea’s R&D and

developing future technologies by remaining faithful to its principles.

On average, about 2,000 entries are submitted to the non-themed

contest and 200 entries to the themed contest.

Major Projects

Basic Science

261 projects

Tracking and

reconfiguring memory

traces, defining

the mathematical

principles of machine

learning acceleration

techniques, etc.

ICT

251 projects

Resolving biases

incurred by AI

technologies, defining

third-generation

software error

verification techniques,

etc.

Materials

252 projects

Treating hereditary

brain-nervous system

diseases, resolving

the heat generation of

electronic devices, etc.

774 research projects

KRW 996.6 billion in research grants

research institutes

Over 14,890

participants

* As of April 2023

❶

Ensuring expertise, fairness, and objectivity in the project screening stage

* With a panel of 1,300 international judges and 2,200 Korean judges

❷

Encouraging researchers to take take on new challenges and experience

trial and error

❸

Providing funding and other support to researchers

❹

Holding the Global Research Symposium to allow contestants to share and

discuss their findings and outcomes with preeminent scholars from around

the world

Operation System

Operation Process

❶

Proposal

Candidates screened by 80 judges

❷

Presentation and Q&A

Presentations for and discussions with 180 judges by screened candidates

❸

Support

R&D Exchange Meeting, patent application mentoring, and expert consulting for

commercialization

SSDC

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Open Sourcing Program

This program allows companies wishing to partner with us to submit

business proposals. Once proposals for parts and materials applicable

to our products are submitted, we perform evaluations based on our

internal standards to verify potential suppliers' qualiﬁcations. In 2022,

we reviewed a total of 592 proposals, accepted 96 among them, after

which we applied their parts and materials to our products.

Supply Chain Management

Supplier Selection

We thoroughly review potential suppliers' performance in ﬁve areas:

1)Purchase and Quality, 2)Environment and Safety, 3)Labor and Human

Rights, 4)Eco-Partner Certiﬁcation, and 5)Finance. We also dispatch our

in-house experts in those respective areas to conduct on-site audits as

part of the selection of new suppliers.

Standard Supplier Contract

Our standard supplier contract mandates compliance with

internationally accepted labor and human rights standards (e.g.,

prohibition on forced labor, child labor, discrimination based on

ethnicity and gender) and with our in-house workplace safety

standards and corporate social responsibility requirements (e.g., codes

of conduct). It is written in the respective language of the individual

local supplier (English, Chinese, Malay, and other local languages).

Evaluation Areas for Screening New Suppliers

Supplier Selection Results in 2022

In 2022, we conducted additional surveys and interviews with prospective

suppliers to better evaluate their risks related to forced labor, inhumane

treatment, and discrimination. Through these surveys and interviews,

we were able to verify with greater accuracy their working conditions –

with regard to recruitment channels, recruitment fee payment, dormitory

allocation, non-discrimination, and working hours – and screen only the

qualified suppliers.

In 2022, such pre-registration evaluations were performed on 116

companies. While all of the candidates met the essential labor and human

rights standards, two companies failed to meet environment and safety-

related standards such as hazardous chemical management, which

resulted in their disqualification in the final selection.

❶

Purchase and Quality

Evaluation of each supplier’s quality competitiveness

❷

Environment and Safety

On-site audits of the 26 items based on the RBA* criteria (essential

items include fire extinguishing systems, hazardous materials and

waste, and wastewater treatment facilities)

* Responsible Business Alliance (RBA) is an industry coalition dedicated to

advancing corporate social responsibility in global supply chains

❸

Labor and Human Rights

On-site audits of the 19 items based on the RBA criteria (essential

items include prohibition on forced labor, prohibition on child labor,

compliance with regulations related to working hours, accurate

calculation and payment of wages, provision of wage statements

and prohibition on delay in the payment of wages, proper

payment of social insurance fees and other withholding taxes and

contributions, prohibition on inhumane treatment, and prohibition

on discrimination based on personal traits)

❺

Finance

Evaluation of each supplier’s credit rating and financial conditions in

consultation with external specialists

❹

Eco-Partner Certification

Certification issued by Samsung Electronics to those companies that

meet our standards for product environment policy, education and

training, and hazardous substance control (only certified companies

are qualified to register as our suppliers)

We closely cooperate with our suppliers to achieve

shared growth and build responsible supply chains. Our

supply chain operations aim to reinforce our suppliers’

capabilities while protecting labor and human rights

and enhancing their environmental, health, and safety

standards.

Sustainability in

Supply Chains

Open Sourcing Program

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Supplier Management System

We handle all supplier-related matters through our integrated purchase system based on the Global Purchasing Code of Conduct and operate an

organizational unit dedicated to comprehensive supply chain management.

Management System Certiﬁcations

We strive to ensure that our suppliers are equipped with robust

occupational environment and safety management systems. To

this end, we encourage them to get certified against international

standards, such as ISO 14001 and ISO 45001, and reflect related

outcomes in the comprehensive supplier evaluations.

We also provide consulting to help our suppliers attain certification

issued by a specialized agency. In 2022, 132 suppliers benefited from

this program.

Environment management

system (ISO 14001)

International specifications for an

environment management system

applicable to all industries and

operations

Safety and health management

system (ISO 45001)

International standards that

specify requirements for the

systematic management of safety

and health

Outcomes reflected in the comprehensive supplier evaluations

Global Purchasing Code of Conduct

The Global Purchasing Code of Conduct comprises the key requirements

from the regulations and guidelines on purchase-related tasks and ethical

obligations of employees in charge of purchasing. It takes precedence

over other regulations and manuals as far as purchasing is concerned.

The following are the key criteria and principles set up to ensure ethical

purchasing practices.

 We select new suppliers only when we deem them highly competitive

compared to existing suppliers or when existing suppliers are no longer

capable of meeting our needs (average duration of transaction with

suppliers standing at 14 years as of 2022).

 We finalize the unit price through the preset procedures – market research,

cost review, price negotiation, and price determination – based on mutual

consent.

 We do not require suppliers to provide their technical data to us or a third

party for reasons regarding the transaction – price review – without

justifiable grounds.

 We provide demand forecasts for materials required for mass production in

advance to allow suppliers to make necessary preparations.

 We determine and deliver all payments in consultation with suppliers

pursuant to the terms and conditions specified in individual contracts. In

2022, we made full payments to 589 suppliers within 10 days.

Integrated Purchase System (G-SRM)

We manage diverse purchase-related tasks, from supply chain management

to risk management and integrated work environment management, through

the integrated purchase system (G-SRM).

 We submit our requests for parts to our suppliers through an automated

system. We set the delivery date based on the lead time agreed by the two

parties and thus we cannot readjust it arbitrarily without the respective

supplier’s approval. Even with the respective supplier’s approval, the system

restricts the expedition of the delivery date. As of 2022, only 4.8% of all

supplier contracts were subject to delivery date changes based on mutual

consent after order placement. We continually strive to improve demand

projection accuracy and minimize delivery date readjustment.

 In order to minimize risks related to business continuity, we operate a

supply chain risk management system designed to promptly obtain disaster

information in connection with relevant institutions and automatically

analyze the respective disaster’s impact on our supply chain.

Dedicated Organizational Unit and Support Program

We have an organizational unit dedicated to strengthening our suppliers’

competitiveness by means of on-site audits of their work environment as well

as R&D and employee training programs.

Major Evaluation Items

Technology Response Cost Finance

Quality Delivery

Environment

and Safety

Labor and

Human Rights

2022 Comprehensive Supplier Evaluation Results

We performed annual comprehensive evaluations on 89% of our

suppliers that have been in our supply chain for at least one year. As a

result, 62.1% were rated outstanding, and 3.5% required improvement.

* Suppliers registered for less than one year were excluded from the evaluation.

3.5%

Need for

Improvement

62.1%

Outstanding

34.4%

Other

Comprehensive Supplier Evaluation

We perform annual comprehensive evaluations on all of our suppliers. We provide benefits to those rated outstanding – such as the priority allocation

of supply volumes and extra points in the assessment for exemplary innovation cases – and honor them with Awards of Excellence. We reflect the

results of the evaluations in the following year’s purchasing policy to encourage our suppliers to improve their competence.

Major Evaluation Items

Regular Monitoring

Individual suppliers conduct self-led

monitoring based on the evaluation

criteria that we provide.

Voluntary Improvement

Individual suppliers identify and

remedy improvement points while we

provide risk monitoring and feedback.

Comprehensive Evaluations

We announce the final results of the

annual supplier evaluations at year’s

end.

Follow-Up Management

Individual suppliers establish and

implement improvement plans with

our support.

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ESG Audit and Capacity-Building

We require all of our suppliers to comply with the local laws of their

respective countries as well as the Samsung Supplier Code of Conduct

based on the RBA Code of Conduct in relation to human rights,

environment, health and safety, and ethics. To ensure compliance,

we operate an integrated work environment management process

consisting of self-assessments, on-site audits, and third-party audits.

We reflect the findings from on-site audits and third-party audits

in the annual comprehensive evaluations and policy improvements

for the following year, and provide benefits to those suppliers rated

outstanding, such as extra points in the comprehensive evaluations

and cash rewards. In 2023, we established a reward program to

acknowledge our suppliers with outstanding ESG performance.

Through this program, we gave incentives to two suppliers in

recognition of their performance and improvement efforts in the labor

and human rights and environment sectors throughout 2022.

The Partner Collaboration Center, Vendor Management Improvement

Task Force, Global Technology Research, and each branch’s dedicated

organizational unit are responsible for ensuring the day-to-day

implementation of the human rights policy within our supply chain.

The executives and working-level staff of the respective organizational

units are in charge of conducting compliance audits on suppliers,

promoting improvement efforts, and ensuring information disclosure

– which are linked to their performance and compensation. We

manage human rights risks at the company level through the Global

Labor Issues Council, a consultative body that meets monthly. This

council consists of executives and working-level staff of the eight

organizational units (People Team, Corporate Legal Team, Partner

Collaboration Center, Vendor Management Improvement Task Force,

Global Technology Research, Corporate Sustainability Center, Global

EHS Center, and Investor Relations Team). We discuss issues of greater

magnitude in the Sustainability Council.

We require our ﬁrst-tier suppliers to manage the work environments of

their subcontractors in compliance with our internal work environment

policy. For subcontractors with issues deemed to be of serious concern,

we monitor via our ﬁrst-tier suppliers whether they have successfully

implemented remedial actions and achieved the desired results.

Supplier Code of Conduct

We update our Supplier Code of Conduct to reﬂect revisions of the RBA*

Code of Conduct and other global norms, and require our suppliers to

comply with it. The standard supplier contract mandates compliance

with the Supplier Code of Conduct. We also require each supplier to

sign the Written Pledge for Compliance every year.

We provide the Supplier Code of Conduct Guide to help suppliers

follow the Supplier Code of Conduct more effectively and easily and

practice compliance management. Suppliers should cooperate closely

during on-site audits and upon request to compile the relevant data for

compliance assessment.

* We developed our code of conduct developed for our suppliers based on the Code of

Conduct of the Responsible Business Alliance (RBA), an industry coalition dedicated

to corporate social responsibility in global supply chains

Self-Assessment

We developed a self-assessment tool based on the RBA Code of Conduct

and distributed it to all of our ﬁrst-tier suppliers to facilitate annual self-

assessments. We also encourage them to obtain certification related

to international standards in corporate social responsibility (SA 8000,

etc.) by including it as one of the self-assessment items. In 2022, we

reﬂected RBA’s updated criteria in this tool to facilitate self-assessment.

The updated criteria places greater weight on items of signiﬁcance, such

as forced labor, child labor, and industrial accidents, to preemptively

identify potential risks of our suppliers.

We actively collect suppliers’ opinions and suggestions to establish

a more effective self-assessment system and make improvements

accordingly.

Self-

Assessments

On-Site

Audits

Third-Party

Audits

Monitoring

Progress on

Improvement

On-Site Audit

Our dedicated organizational unit consisting of RBA-certiﬁed auditors

conducts on-site audits of our suppliers. We review their documents

thoroughly, including wage information, contracts, and policies, and

perform interviews of their employees (a minimum of square root

of the total number of employees) engaging with both working-

level staff and managers during the audits. We manage all identiﬁed

improvement points through G-SRM. We register risk grades and

detailed violations on G-SRM once the participating employees of

the respective supplier conﬁrm the results. We require each supplier

to submit its improvement plan and results, and our staff in charge

reviews them along with the supplier’s employees or representatives.

We guide suppliers to take immediate remedial actions on site if

possible and normally monitor whether they have taken remedial

actions within three months from the registration of the improvement

points. We monitor facility installation, certiﬁcation, and other matters

that require extended time and signiﬁcant expenses over a longer term

based on the respective supplier’s improvement plan. We demand

suppliers found to have committed violations in our priority areas,

including prohibition of child labor and forced labor, to take immediate

remedial actions and impose penalties in the comprehensive

evaluations. We also operate a working-hours monitoring program

through G-SRM to ensure that our suppliers comply with our work-

hours requirements. Through this program, we review the average

working hours and highest working hours of our suppliers’ employees

at different business sites on a monthly basis and rate them in

accordance with the seriousness of non-compliance. In 2022, we

performed on-site audits based on RBA’s criteria on all 329 high-risk

suppliers* and implemented remedial actions. As a result, the average

on-site audit compliance rate reached 95%.

* High-risk suppliers refer to companies considered to have high labor and human-

related risks or a signiﬁcant impact on our business – in terms of transaction amount/

volume, low self-assessment scores, EHS issues raised by NGOs, among others. As of

2022, 18.5% of suppliers equipped with manufacturing facilities were assessed to be

in the high-risk group.

** At approximately 150 resident suppliers, we conducted a comprehensive evaluation

of their work environment in line with the RBA standards, identified areas of

improvement, and established a management system (from December 2022 to April

2023).

Supplier Code of Conduct Supplier Code of Conduct Guide

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Compliance Rate by Area*

Area

2020 2021 2022

Labor and human rights

92% 95% 97%

Health and safety 95% 97% 96%

Environment 99% 98% 98%

Ethics 98% 99% 99%

Management system 94% 99% 96%

* Post-closure-audit compliance rate (%)

Third-Party Audit

We conduct third-party audits every three years on the top 90% of

our suppliers selected based on annual transaction amounts. An RBA-

certiﬁed audit ﬁrm performs third-party audits in the form of Customer-

Managed Audits (CMA) based on RBA’s Validated Assessment Program

(VAP)*. Any improvements that can be made immediately after the

initial audit are corrected on site, and the results of improvement

implementation are conﬁrmed through the closure audit.

In 2022, we conducted third-party audits on 121 suppliers. Although

we faced difficulties in conducting on-site audits due to the COVID-

19 pandemic, we ensured continuity through on-line meetings and

inspections.

We typically conduct worker interviews on the premises of the

respective suppliers based on mutual trust to minimize the possibility

of any production setback. However, we will perform them outside

of the company to increase transparency of the audit if there is a

perceived risk, such as intervention by managers of suppliers.

In 2023, we plan to conduct third-party audits on some second-tier

suppliers on a pilot basis. First-tier suppliers currently manage second-

tier suppliers in our supply chains, but we plan to gradually expand the

scope of suppliers under our direct management and share the audit

outcomes with them.

* Document review (employee wage information, contracts, policies), face-to-face

interviews of employees and managers (square root of the total number of employees

at minimum), on-site audits (initial and closure audits) and improvements

Cases of On-Site Audits

Special Audits to Eradicate Child Labor We maintain a zero-

tolerance policy for child labor at our suppliers and perform

special audits of their recruitment practices every year to

eradicate child labor. In 2022, we performed audits on 119 ﬁrst-

tier suppliers and 31 second-tier suppliers during middle school

and high school vacation periods when the likelihood of the

employment of minors notably increases. Although none were

found to have recruited child workers, some failed to meet our

recruitment process standards (e.g., lack of a facial recognition

system for identity authentication, failure to include the child

labor prohibition provision in the employment contract). We

immediately had these suppliers establish improvement

measures.

We plan to distribute a compliance guidebook, which specifies

appropriate recruitment processes and country-specific legal

requirements, and ensure that our suppliers conduct regular

internal training for their working-level staff based on this

guidebook.

Support for Local Legal Requirements We require our suppliers

to comply with all local laws as well as the Supplier Code

of Conduct. To ensure compliance, we closely monitor any

changes made to such laws that may impact their operations.

For example, in May 2019, the Mexican government announced

the amendment of the Federal Labor Law that guarantees the

activities of labor unions and collective bargaining and allows

workers to select their labor unions through secret voting. We

conducted a presentation on the amended law scheduled to take

effect in 2023 for 34 staff members of 21 local suppliers. We also

plan to ensure their operations are in compliance with the law by

placing a focus on relevant items in the audits.

Monitoring Progress on Improvement

Based on the outcomes of the initial third party audits, we engage with

our suppliers to establish improvement measures and monitor their

implementation status through the closure audit. Compliance gaps that

require an extended period of time for improvement are constantly

monitored in collaboration with the respective suppliers.

* Improvement rate: (Number of non-compliance found in the initial audit – Number of

violations found in the closure audit) / Number of non-compliance found in the initial

audit

Improvement Rate by Area*

Area

Improvement rate Major gaps

Labor and

human rights

70% Working hours, etc.

Health and

safety

83%

Emergency response facility

inspection, etc.

Environment 79% Harmful substance control, etc.

Ethics 94%

Intellectual property protection policy,

etc.

Management

system

81% Internal assessment, etc.

Total 80%

Working-Hours Management Status

Items

Status

Working-hours compliance rate*

93%

Average working hours per week 45 hours

Highest average working hours per week No more than 47 hours

Compliance rate of guaranteeing at least one

holiday per week

97%

* Employees must not work for more than 48 hours per week or for more than 60 hours

per week even when including overtime (voluntary). They must be guaranteed at least

one day off per week.

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Findings in Major Labor and Human Rights Items

Item

Description No. of Findings Details

Freely chosen

employment

Prohibition of forced labor 3

Failure to reimburse recruitment fees, renew collective bargaining

agreements, and cover pre-employment physical assessment fees

Establishment of forced labor prohibition policies and

procedures

Employment contract signing in native language 5

Failure to include essential information in contracts and comply with

cap on temporary worker ratios

Prohibition of the storage of an original copy of ID 1 Failure to establish relevant policies

Guarantee of the freedom of movement -

Prohibition of

child labor

Prohibition of child labor -

Establishment of child labor prohibition policies and

procedures

Protection of

underage workers

Protection of underage workers 1 Failure to establish relevant policies

Protection of trainees and interns -

Wage and welfare

benefits

Accurate calculation and payment of wage 5

Failure to pay overtime work allowances and provide record of work

hours

Issuance of pay slips and prohibition on delay in wage

payment

Failure to adhere to company payout policy and comply with legal cap

on severance pay

Prohibition of unfair penalty imposition 1 Wage reduction as a disciplinary measure (e.g. product damage)

Humane

treatment

Prohibition of inhumane treatment 1 Failure to establish relevant policies and conduct trainings

Establishment of humanitarian treatment policies and

procedures

Recording and management of disciplinary measures

taken

Non-

discrimination

Prohibition of discrimination based on gender and other

personal traits

1 Hepatitis B screening for new hires

Establishment of discrimination prohibition policies and

procedures

Provision of space for religious activities -

Freedom of

association

Guarantee of the right to establish and join labor unions 6

Failure to provide record of worker representation elections and

recognize unionized workers

Guarantee of the right for collective bargaining 3

Failure to renew union activity agreements and recognize employees

participating in collective bargaining

Prohibition of discrimination against labor union

members

ESG Diagnosis and Consulting for Suppliers In order to help

reinforce ESG management performance in our semiconductor

supply chain, the DS Division has offered the ESG diagnosis

and consulting service for our suppliers in collaboration with

Ecredible, a corporate management assessment institution, since

2022. Our 95 small and medium-sized suppliers based in Korea

performed self-diagnoses as well as third-party due diligence. We

provided advanced ESG management consulting for the 25 lowest

rated suppliers after actual inspections.

[DS Division] ESG Diagnosis and Consulting Process for Suppliers

1. Basic and advanced ESG training for suppliers

2. Online self-diagnosis

3. Third-party due diligence

4. Diagnosis report issuance

5. Selection of the lowest 30% high-risk group

6. Advanced ESG management consulting

7. Improvement monitoring

8. Diagnosis result disclosure

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Prohibition on Forced Labor

During a third-party audit, we detected that a recruiting agency

hired by one of our local ﬁrst-tier suppliers in East Asia was imposing

fees on migrant workers. Based on further inspection, we found

it is customary in the respective country for recruiting agencies

to collect recruitment fees from migrant workers. The agency

also lacked an understanding of our Supplier Code of Conduct. We

immediately took steps to return the paid fees to migrant workers

in collaboration with personnel staff of the respective supplier and

established the code of conduct concerning the prohibition on the

collection of recruitment fees to prevent its recurrence We had the

respective supplier conclude a new contract with the recruiting

agency to initiate a new migrant worker policy and stop collecting

recruitment fees from them. We also made it mandatory to perform

interviews of migrant workers and audit the performance on a

quarterly basis.

We found another one of our ﬁrst-tier suppliers in the same region

to be withholding the cost of physical examination required during

the recruitment process from new recruits and returning the

amount only when they continued their service at the respective

supplier for more than 90 days. Upon further investigation, we

found that the supplier’s policy had been set intentionally to prevent

early retirement of new employees. We immediately took steps to

remove this unfavorable condition and return the amount to all new

recruits and fully update the relevant policy. We also made sure

that the updated policy was delivered to all employees to improve

transparency in the recruitment procedures.

Employment Contract Signing

We found one of our ﬁrst-tier suppliers in East Asia failed to provide

an employment contract or to specify necessary information, such

as job descriptions, working hours, and holidays, in the contract for

foreign workers hired through a recruiting agency. This is a violation

of our requirement to distribute an original copy of the employment

contract to each worker. The respective supplier lacked a proper

understanding of this requirement. In collaboration with the

personnel manager of the supplier, we had the contract revised to

include the necessary information and corrected the process to

obtain and manage each worker’s signature of acknowledgement.

We also made sure that two original copies of the employment

contract be issued – one of which is given to the worker and that

the recruiting agency and supplier cross-check the issuance of the

original copies.

Accurate Calculation and Payment of Wage

We found that holiday night shift allowances for workers recruited

by one of our first-tier suppliers in East Asia through a recruiting

agency were lower than the legal minimum wage of the region. We

require our suppliers to comply with the Supplier Code of Conduct

and local laws without exception and strictly prohibit discrimination

against workers based on race, ethnicity, gender, among others,

for all working conditions including wages and compensation. We

obligate all of our suppliers to set the hourly holiday night shift

allowance higher than the hourly wage for regular working hours.

The respective supplier lacked a proper understanding of this

requirement. We informed the personnel staff of the supplier of

the violation upon detection and guided the supplier to recalculate

and pay accurate amounts to the underpaid workers. We have

required the supplier to continue monitoring wage-related laws

and regulations and regularly conduct internal audits to prevent the

recurrence of a similar incident.

Prohibition on Delay in Wage Payment

We found that one of our first-tier suppliers in East Asia provided

severance pay for a retiree after the preset deadline. Pursuant to the

Supplier Code of Conduct, all retirees at our suppliers must be paid

the full amount of severance pay and wages within 30 days from the

date of retirement. We guided the respective supplier to establish

a management process to ensure the completion of the payment of

severance pay and wages within 30 days from the date of retirement

and to have the payment details reported to the personnel staff on

a monthly basis to prevent the recurrence of such an incident.

Findings and Corrective Actions

Working-Hours Compliance

We detected a case of surpassing the legal monthly overtime limit

by more than 30 hours through a third-party audit on one of our

first-tier suppliers in East Asia. Employees of all of our suppliers

must comply with the requirements of a standard workweek

of 48 hours and a maximum workweek of 60 hours including

overtime. Under local laws, the stricter of the requirements must

be applied. We determined the respective supplier lacked a proper

understanding of the working-hours limit and did not accurately

identify the status, since its employees’ working hours were

kept manually. We first provided training for all of its employees,

including the managers, to resolve this issue. We also helped the

supplier adopt an automated system that sends alerts when any

employee applies for overtime past his/her legal limit and required

the personnel staff to communicate with the team manager in

charge. We verified that no employees had exceeded the legal

working-hours limit two months after the implementation of the

improvement measures.

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ESG Capacity-Building

ESG Training System

In 2023 we’ve placed priority on building suppliers’ capacities in

sustainability management in areas including climate action, resource

circularity, human rights, compliance, and social responsibility.

In line with our sustainability-related policies, we have developed

training programs for our suppliers to help them meet global standards in

information disclosure and prepare for regulations such as the corporate

sustainability due diligence legislations in Europe. We strive to raise

awareness of the importance of responsible practices and build their

capacities on the ground in managing GHG emissions, conducting supply

chain due diligence, operating EHS systems, publishing sustainability

reports, among others. Moreover, legal compliance courses are offered

online which will soon become available to our second and third-tier

suppliers that have signed a fair trade agreement with us.

Compliance and Human Rights Training

Since 2015, we have hosted a range of compliance and human rights

workshops and training sessions for the heads and working-level staff of

our suppliers on a yearly basis. In 2022, 408 suppliers

around the world

participated in our training.

· Sharing global and local legal revisions, audit results and best practices of our

suppliers, and environment- and safety-related trends of different regions

· Providing training on the prohibition on forced labor, mutual respect, humane

treatment, and anti-discrimination based on the Supplier Code of Conduct

· Providing human rights training encompassing diverse areas from recruitment

to corporate culture, personnel, and labor-management relations

· Providing industrial safety training on the protection of pregnant and nursing

employees, among others

· Providing specialized training on chemicals and awarding suppliers with

outstanding performance in labor and human rights and environment and

safety

· Encouraging participating suppliers to actively share the details of our training

and provisions of the Supplier Code of Conduct with their subcontractors

· Providing training on the protection of women, local culture, and local business

environment targeting 22 suppliers advancing into Vietnam where the rate of

female employees is notably high

1) Including 98% (323) of high-risk suppliers and 85 suppliers projected to have

potential risks

2) Rate of employees subject to maternity protection at high-risk suppliers: 2.5% (based

on G-SRM information as of January 2023)

Migrant Worker* Recruitment Process Training

As per our Supplier Code of Conduct, we prohibit forced labor and

collection of recruitment fees from migrant workers hired by our

suppliers. If such case is identified, the respective supplier must

reimburse the fees within 90 days.

The collection of recruitment fees from migrant workers is

considered a highly serious violation of labor and human rights

along with prohibition on child labor and violation of working-hours.

We downgrade the rating of those suppliers that fail to achieve

improvement on the comprehensive evaluations. If they commit the

same violation repeatedly, we suspend transactions with them.

Based on this policy, we reimbursed a total of USD 1,125,734 to 1,649

migrant workers from 11 countries from 2017 to 2022. In 2021, we

established the Responsible Recruitment Procedure training course to

improve our suppliers’ understanding of the procedure, help eliminate

relevant risks, and offer a self-diagnosis tool. In 2022, we expanded

the group of countries subject to training to include Hungary, Slovakia,

Poland, and China and provided training on recruitment criteria, risk

identification and assessment, risk improvement, risk prevention

and mitigation, etc., for 505 labor and human rights staff at 213

suppliers. The training sessions were conducted in local languages

(English, Chinese, Thai, and Malay) to ensure the understanding of local

employees. This training course will soon be designated as a mandatory

training course for suppliers located in countries with migrant workers.

We plan to resume special audits on forced labor, which were

temporarily suspended due to the COVID-19 pandemic, in 2023 starting

with Southeast Asia and Europe. We will continue to improve the labor

and human rights conditions of migrant workers by closely monitoring

the appropriateness of recruitment fee calculation, legitimacy of

deductions from wages, actual reimbursement results, and other items

with forced labor risks.

* Rate of migrant workers at high-risk suppliers: 1.5% (Based on G-SRM information as

of January 2023)

ESG Training for Suppliers

New

Expert Track

Required

Basic (Recommended)

Training Details

Recruitment Criteria

Correcting and supplementing suppliers’ policies based on the provisions

related to the prohibition on forced labor in the Supplier Code of Conduct

Risk Identification and Assessment

Identifying the entire recruitment process related to recruiting agencies

in departure countries, recruiting agencies in destination countries, and

suppliers and assessing risks using the self-diagnosis tool

Improvement

Collecting data through migrant worker interviews and submitted

grievances, reaching conclusions in a transparent manner, and establishing

improvement plans

Risk Prevention and Mitigation

Analyzing fundamental causes, establishing subsequent corrective

measures, and performing training for migrant workers and recruiting

agencies

Environmental (E)

7 courses

Social (S)

9 courses

Governance (G)

6 courses

ESG Management Leaders (in connection with improvement tasks / E·S → E·S·G)

GHG Management

*DS separately managed

ESG Due Diligence on

Supply Chains

FTA Basics

Energy Management

System (ISO 50001)

Safety and Health

Management System

(ISO 45001)

Sustainability Report

Environmental

Management System

(ISO 14001)

Chemical

Substances

Control Act

Serious Accidents

Punishment Act

Occupational

Safety and

Health Act (risk

assessment)

Legally required training (4)

Sexual Harassment Prevention, Anti-Harassment Policy,

Workplace Bullying Prevention, Disability Awareness

Enhancement, and Privacy Protection

Coprosperity and

Cooperation Seminar

(second- and third-tier

suppliers)

Regulated Substances

Control (suppliers based in

Korea and other regions)

Fair Transactions

(medium-sized

companies)

Hands-On Fair

Transactions

(ﬁrst-tier suppliers)

Supplier Code of Conduct

(7 areas)

(suppliers based in Korea

and other regions)

Chemical Substances

Control Manager

(first-tier, second-tier, and

third-tier suppliers)

First-tier suppliers

Second- and third-tier suppliers

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Environmental Health and Safety (EHS) and

GHG Emissions Management

The prerequisite for the development and clean production of eco-

conscious products is the fulﬁllment of our responsibility for our supply

chains. We work to reduce our environmental impact, mitigate the

generation of harmful substances, and improve workplace health and

safety in cooperation with our suppliers.

GHG Emissions Reduction

To ensure systematic climate action at the supply chain level, we

require suppliers that correspond to the top 90% of our purchase

amount to disclose relevant information, set targets, and implement

reduction activities. We monitor and support these activities while

developing policies to strengthen management and oversight or

suppliers’ participation.

GHG Emissions Management

Since we joined the CDP Supply Chain Program in 2019, we have

collected information on our suppliers’ emissions and renewable

energy use, engaged in GHG emissions reduction campaigns targeting

our suppliers, and organized regular seminars. The number of suppliers

participating in the CDP Supply Chain Program has continued to

increase from 163 in 2020 to 203 in 2021 and 308 in 2022. We also focus

on providing training to enhance their GHG management capacity.

In 2022, we developed the GHG management guidelines on how to

calculate GHG emissions, set reduction targets, and deﬁne reduction

activities; provided training on the guidelines for our suppliers; and

established the GHG Management course within the ESG curriculum at

the Training Center of the Partner Collaboration Academy.

Supporting GHG Reduction Activities

We strive to reduce GHG emissions across our supply chains in close

collaboration with our suppliers. We operate a funding program to

help them achieve energy efficiency, expand renewable energy use,

and develop carbon reduction technology. Moreover, we formed a

consulting unit dedicated to helping suppliers improve their on-site

practices.

Better EHS Management: 2022 Key Milestones in Numbers

505

primary suppliers underwent

regular environmental and safety

audits.

1,228

supplier employees completed

environmental and safety training.

suppliers that have high-risk

processes were provided with

support to prevent environment

and safety-related accidents to

ensure supply chain stability.

308

suppliers that participate in the

CDP Supply Chain program received

risk assessments and management

concerning their subcontractors.

455

trainees completed training on the

understanding of environmental

and safety laws and response

measures for the Serous Accidents

Punishment Act.

handling regulated chemicals and improving related control systems,

while providing support for the upgrading of local ventilation system,

chemical storage facilities, and chemical leak prevention equipment.

EHS Improvement Support

We have established an organizational unit dedicated to supporting

our suppliers’ environmental and safety management and operate a

range of programs to foster EHS model suppliers, provide specialized

support for suppliers that have high-risk processes, and assist them in

the attainment of ISO certiﬁcation.

The DS Division closely communicates with the employees of our

suppliers via the Environment and Safety Portal for Our Suppliers. In

2022, a total of 2,267 inquiries were submitted and resolved on this

portal, contributing to the prevention of EHS accidents.

We host the Advanced Tech Fair to introduce innovative carbon

emissions reduction technologies and operate development funding

programs to promote GHG emissions reduction by our suppliers. We

encourage our suppliers to apply for ESG-related government funding

and consulting programs by keeping them informed. In 2023, we plan

to launch a pilot project with major suppliers to identify best practices

in GHG emissions reduction and share them with more suppliers.

Strengthening Management Policy

We continue to advance our supplier management policy to effectively

manage our suppliers’ GHG emissions. We mandate the calculation and

recording of energy use and direct and indirect GHG emissions (Scopes

1 and 2) for each business site through the Supplier Code of Conduct

and reflect GHG emissions information disclosure and reduction

outcomes in the comprehensive supplier evaluations. We give extra

points in the evaluations to suppliers with outstanding reduction

performance.

Harmful Substance Control

Eco-Partner Certiﬁcation

For the meticulous inspection of not just supplied products but also

their parts, we operate the Eco-Partner Certification program. We

require our suppliers to undergo the Eco-Partner Certiﬁcation review

every two years to maintain their status, and those failing to meet our

criteria are subject to transaction restrictions.

We issue the certification based on the results of the review of their

adherence to the Harmful Substance Operating Rules and environment

and quality control systems.

We require our suppliers to submit raw material data collected from

their raw material companies in combination with written proof that

guarantees the credibility of harmful substance data. We then visit

their manufacturing sites to thoroughly verify the submitted data.

Safe Use of Chemicals

We perform on-site audits to monitor whether our suppliers meet our

standards for the safe use of chemicals. We also offer consulting on

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Risk Assessment and Management of Our Suppliers

Risk Assessment

We evaluated the accident prevention capacity of our suppliers in

the 2022 comprehensive EHS capacity evaluations and reflected the

results in the supplier selection process.

Work Suspension System

The right to work suspension system includes preemptive measures

to prevent hazardous situations. To facilitate the effective operation of

the system, we established the Research Group for the Right to Work

Suspension to analyze the possibility of hazardous situations. In 2022,

our major remedies to build a safer work environment include the

installation of footholds and guardrails on facilities with the risk of fall.

We will continue to make improvements to ensure the safety of our

suppliers’ employees.

Environment and Safety Risk Management

We help our suppliers identify and eliminate risk factors through the

operation of the right to work suspension system, risk assessment

specialist training course, and audits on the results of work risk

assessments. Through the risk assessment specialist training course,

1,294 employees at 494 suppliers received training to grow into experts

capable of dealing with risk factors.

We performed audits on the results of work risk assessments to help

our suppliers proactively identify risk factors of each task and prevent

serious accidents. Through audits on 5,812 tasks of our major suppliers,

we detected 1,754 mid-to-high risk factors and found that the cases

of risk-factor detection by our suppliers doubled compared to the

previous year. We guided our suppliers to establish and implement

appropriate remedial actions and awarded best practices.

Disseminating Best Practices

Safety Management Convention for Suppliers To analyze the

safety promotion activities of the DS Division’s suppliers and share

best practices, we held the Safety Management Convention for our

suppliers. Through this event, we shared safety expertise in ﬁve major

areas with our suppliers to enhance their safety capacity. In 2022,

the event was held to highlight our suppliers’ efforts to identify and

eliminate risk factors and award outstanding companies. Special

lectures on how to build a safe work environment across the entire

supply chain were also organized.

EHS Innovation Day for Suppliers At the DX division, we hosted the

EHS Innovation Day for suppliers inviting them to share best practices

in workplace safety management. By sharing their experiences in

active EHS management – from issue identification to resolution –

suppliers were able to exchange views on better managing common

issues. The best practices were exhibited on site, of which five were

presented as cases of excellence – these cases were in the areas of

equipment management, risk assessment, compliance with standard

work process, ESG, safety culture.

Health and Wellness Centers

We operate health and wellness centers at each of our business sites

for our suppliers. At these centers we offer 11 health consultations and

personalized physical exercise programs to help employees prevent

brain and cardiovascular diseases and musculoskeletal disorders.

Advanced Physical Assessments

We offer advanced physical assessments to our resident suppliers’

employees aged 50 and older to help prevent brain and cardiovascular

diseases. In addition to legally required examinations, we provide

additional check-ups including ECG and HS-CRP. In 2022, a total of 324

employees beneﬁted from this service.

After

training

93.0

Prior to

training

40.3

20 40 60 80 100

Suppliers’ Capacity to Identify Harmful Factors

Environment and Safety Academy

We offer environment and safety training at the Environment and

Safety Academy for the DS Division suppliers in Hwaseong since

2019 and Pyeongtaek since 2022.

The Pyeongtaek Academy operates the joint environment and

safety training program certiﬁed by the Ministry of Employment

and Labor and Human Resources Development Service of Korea,

a ﬁrst in the industry, and is equipped with facilities to train over

35,000 trainees a year.

We strive to reinforce the environment and safety capacity of

our suppliers by utilizing the nation’s largest, state-of-the-art

infrastructure at the Academy and operating the nation’s first

“Cutting-Edge Human Resources Consortium Program.”

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Grievance Handling System

We support our suppliers in establishing and operating an internal grievance resolution process to facilitate communication between the executive

management and employees. We have operated a direct hotline for all suppliers since 2013 to collect reports on violations of the work environment

criteria or workers’ rights by our suppliers via telephone and email to complement on-site audits. We ensure the protection of informants’

confidentiality throughout the entire grievance process so that our suppliers’ employees can submit reports without fearing retaliation.

We provide hotline guidance posters in local languages and post them in offices, corridors, production sites, dormitories, and cafeterias.

Our organizational unit dedicated to grievance management verifies the factual grounds of all reports within one week of submission, notifies

informants of the findings and steps to be taken, and monitors respective suppliers to ensure that they take remedial actions. We strive to engage

employees in the design of grievance handling system by collecting their opinions on the hotline system through interviews, conducted during

on-site audits, and compliance workshops.

To monitor whether the reported grievances are being remedied effectively, we carry out informant satisfaction surveys since 2020. In 2022, the most

frequently reported issues were related to wages and superiors’ misconduct. We identified the causes in cooperation with the respective suppliers,

performed training to prevent recurrence, and confirmed that appropriate remedies were implemented. In 2023, we plan to conduct employee

satisfaction surveys on work environments targeting some of our suppliers in Southeast Asia. Based on the findings from this survey, we will identify

the grievances of frontline workers that have not been detected through due diligence, remedy the improvement points detected, and enhance the

work environments of our suppliers.

2020

2022

2021

Types of Grievances Submitted through the Hotline

(Unit: Number of submitted cases)

CEOs on Talk

Through “CEOs on Talk”, we engage the CEOs of our suppliers in establishing

a safety culture on site and discussing effective ways to prevent accidents.

We hold a virtual conference with CEOs of DS Division suppliers once a

month – twice a month with those suppliers who perform high-risk tasks.

At the beginning of the year’s event, we held a ceremony to pledge

industrial accident prevention, discussed recent accident cases and the DS

Division’s environment and safety policy, and organized seminars featuring

external experts.

We also held an in-person conference where we shared accident cases of

different industries, awarded best practices of safety culture, and engaged

in direct communication with our suppliers.

●

Superiors’ misconduct

●

Welfare beneﬁts

●

Wages

●

Working hours

●

Others

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Stakeholder Communication

In order to build a corporate culture centered on respect for human

rights, we have organized an annual stakeholder forum in Vietnam

since 2018. In 2022, the fifth forum was held in collaboration with

the Vietnam General Confederation of Labor (VGCL) and Vietnamese

Ministry of Industry and Trade under the theme “Vietnam’s Measures

for Global Supply Chain Expansion and Due Diligence Response.” We

shared our activities aimed at nurturing Vietnam’s parts industry with

over 500 participants from international organizations such as ILO and

RBA, local NGOs, press organizations, and academic circles. We also

highlighted our efforts to cooperate with our suppliers and ensure

their compliance with global guidelines, including RBA and Joint Audit

Cooperation (JAC) as well as Vietnamese laws. We plan to continue

actively communicating our commitment to respect for human rights,

gender equality, and safe workplaces to our stakeholders throughout

the future.

Guarantee of the Freedom of Movement

In October 2022, we received a grievance report that one of our

suppliers in Southeast Asia was restricting an employee’s freedom

of movement on site for meals and drinks. We strictly prohibit any

restrictions on workers’ freedom of movement as they constitute

a serious violation of the prohibition on forced labor. We contacted

the respective supplier immediately upon grievance submission

and called for its correction. We confirmed that the supplier took

remedial actions and continued monitoring their implementation

status to prevent the recurrence of such incidents.

Accurate Calculation and Payment of Wages

In November 2022, one of our suppliers in Southeast Asia submitted

a grievance report that allegedly it had not properly included

overtime allowances in its wages. As a result of fact-checking with

the respective supplier, we found that overtime allowances were

omitted due to a temporary error in the online wage management

system. The Supplier Code of Conduct specifies that suppliers

should set overtime allowances higher than the hourly pay for

regular working hours and pay them pursuant to local laws and

regulations. We took steps to have the supplier calculate and pay

the unpaid allowances.

Mutual Respect among Colleagues

We urge our suppliers to build a work environment that ensures

respect for all workers through the Supplier Code of Conduct.

In April 2022, some employees engaged in a quarrel due to

miscommunication at one of our suppliers in Central and South

America. We conducted on-site training for mutual respect and

human rights among workers. We received feedback that the issue

was successfully resolved and plan to provide continued support for

creating a sound work environment.

Improvement of On-Premise Cafeteria Services

In February 2022, one of our suppliers in Central and South

American submitted a request for the improvement of on-premises

cafeteria services. We conﬁrmed that its employees had continually

filed internal complaints due to the inadequate amount of food

served. As meals served at on-premise cafeterias are directly

related to the morale of employees, we recommended that the

personnel manager at the respective supplier seek a new catering

company and organize a tasting event. We confirmed that the

supplier hired a new catering company and took steps to prevent

the recurrence of such an incident.

Grievance Resolution Cases

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Innovation Support

Innovation Consulting

 Opened the Consulting Center staffed with specialists in manufacturing,

quality assurance, development, and purchasing

 Helped suppliers enhance their efficiency in added value, achieve

productivity and quality innovation, and improve their personnel, finance,

and system operation capacity

 Supported 52 suppliers in 2022

Technology Support

 Staged the Advanced Technology Trans Fair to introduce marketable

technologies owned by Korean universities and public institutions and

the Biz Technology Trans Fair to present commercialized technologies

 Funded the Technology Development Based on Private-Public Joint

Investment project led by the Korean Ministry of SMEs and Startups from

2013* (KRW 30 billion invested in 2022 to provide support over the next

five years and KRW 5.7 billion offered to seven suppliers in 2022 alone)

*Approximately KRW 20 billion from 2013 to 2021

 Transferred over 2,100 patents (cumulative sum as of 2022) free of charge

Partner Collaboration

Based on our vision of “We Buy Value, We Pay Trust”, we seek to achieve shared growth with our suppliers in a way that strengthens our supply chain competiveness as well as its sustainability. Driven by such efforts, Samsung

Electronics received the highest rating for 11 consecutive years in Korea’s Win-Win Growth Index which assesses comprehensive mutual growth and implementation of fair trade agreements.

Semiconductor Technology and Business Consulting

Product Performance Evaluations

 Operating the R&D support system that evaluates and accredits the technical

performance and applicability of products developed by materials, parts, and

equipment makers to our mass production line

 Conducted 139 performance evaluations in cumulative sum from 2007 to 2022

Patterned Wafers

 Providing patterned wafers to corporates and research institutes, supporting

suppliers’ technological enhancement

 Offered 1,104 patterned wafers in 2022 alone and 8,308 in cumulative sum from

2015 to 2022

Idle Equipment

 Providing equipment unused by our semiconductor production and research

facilities to our suppliers to improve their product development environments

 Selling idle equipment at discounted prices to those suppliers that wish to

purchase it

Piping Technology Academy

 Established in 2018 to ensure the systematic cultivation of outstanding

semiconductor piping specialists in collaboration with our suppliers

 Offering diverse courses including pipe floor plan, pipe removal, and technical

accreditation. Contributing to the resolution of the shortage of semiconductor

piping specialists. In 2022, 143 trainees (cumulative sum of 591 as of 2022)

completed the curriculum.

Semiconductor Business Consulting

1. Tailored Consulting for Materials, Parts, and Equipment Suppliers

 Helping our suppliers identify tasks, resolve issues, and drive innovation

through on-site visits by our semiconductor consultants

 Provided consulting on 31 tasks in the areas of choice (development,

manufacturing, quality, environment and safety, purchasing, sales and

marketing) in 2022

2. Business Operation Consulting

 Sharing sector knowledge and experience with executive management of

supplier companies

 Provided consulting on 18 tasks for 16 suppliers in 2022

3. Manufacturing Competitiveness Consulting

 Helping second-tier suppliers identify tasks and achieve product and quality

improvement

4. Expert Dispatch

 Sharing our knowhow by dispatching experts in technology, manufacturing,

and business operation to our suppliers

 Dispatched 164 experts to 73 suppliers in cumulative sum from 2013 to 2022

Human Resource Development

Recruitment Support

 Operating the Youth Job Center dedicated to assisting our suppliers in

finding the talents they need

 Successfully matched our suppliers with 1,083 job seekers in 2022 by

providing services that specifically cater to our suppliers’ needs, staging

the Samsung Supplier Job Fair, and operating an online recruitment site

exclusively for our suppliers in collaboration with recruitment experts

Training Support

 Offering approximately 449 courses free of charge

 Provided training to 20,907 employees from 514 suppliers in 2022

Funding Support

Win-Win Fund

 Providing low-interest loans up to KRW 9 billion for facility investment

and technological development to help achieve business stability

 Launched in 2010 with KRW 1 trillion for first- and second-tier suppliers

 Replenished by KRW 400 billion in 2018 to extend benefit to third-tier

suppliers

Payment Support Fund

 Providing interest-free loans for our suppliers to enable them to pay their

sub-suppliers with cash within 30 days

 Initiated in 2017 with KRW 500 billion to improve payment conditions

between first- and second-tier suppliers

 Replenished by KRW 300 billion in 2018 to support transactions between

second- and third-tier suppliers

Incentives for Resident Suppliers

 Evaluating the technological strength and environment and safety status

of first- and second-tier resident suppliers at our semiconductor business

sites and offering incentives for different grades

 Provided the cumulative sum of KRW 607.8 billion, including KRW 93.1

billion offered in 2022

Partner Collaboration Academy

Since 2014, we offer capacity building programs near our Suwon

business site at a dedicated premise spanning approximately 9,917 m

These programs are offered free of charge to our first and second-

tier suppliers. Each curriculum is tailored to different needs of our

suppliers’ employees, from entry to executive levels, covering topics

including leadership, manufacturing, quality purchase, and sales. In

recent years, we’ve added course on environment and safety, fair trade,

and sustainability related topics including GHG emissions reduction

and supply chain due diligence.

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Using the RMI’s templates on conflict and responsible minerals, including

but not limited to the Conflict Minerals Reporting Template (CMRT),

Extended Minerals Reporting Template (EMRT), and Pilot Reporting

Template (PRT), we collected data from all suppliers that we conduct

business with through our Global Supplier Relationship Management

(G-SRM) system on conflict and responsible minerals as well as other

information on smelters within the supply chain. In addition, we required

our suppliers to extend the ban on conflict minerals to their own

suppliers in accordance with our conflict minerals policy.

Responsible Minerals Management System

1) G-SRM: Global Supplier Relationship Management System

2) RBA: Responsible Business Alliance

3) RMI: Responsible Minerals Initiative

4) EPRM: European Partnership for Responsible Minerals

Clients and external stakeholders

Lower-tier suppliers and smelters

First-tier suppliers

Raising suppliers’

awareness

Inspect the Use of

Conﬂict-Affected and

High-Risk Minerals

in the Supply Chain

Conduct

Reasonable Due

Diligence and Verify

the Outcomes of

Inspections

Verify and Assess Risk Factors

within the Supply Chain

Develop Improvement Plans for

Risks and Report Relevant Data

G-SRM1

Collab-

orative

responses

with RBA

RMI

EPRM

and OECD

We internally review our suppliers’ data upon submission, perform

additional audits in relation to the submitted data, and sort suppliers

that require follow-up monitoring. In 2022, we reviewed the credibility

of data submitted by 438 suppliers around the world and their conflict

minerals policy implementation status.

* From 2020 to 2022, inspections were performed in a contact-free manner via

document review due to the COVID-19 pandemic.

438

2022

244

2018

225

2019

427

2020

493

2021

Number of On-Site Inspections

(Unit: Number of cases)

* We source tantalum, tin, tungsten, and gold, which are often linked to armed conﬂicts,

only from RMAP-certified smelters and refiners. We plan to gradually expand this

certiﬁcation requirement to other minerals in collaboration with RMI.

**RMAP is the Responsible Minerals Assurance Process developed by RMI

Number of Smelters and Reﬁners within Our Supply Chains

Category 2018 2019 2020 2021 2022

Tantalum 40 40 38 38 36

Tin 73 76 53 55 59

Tungsten 41 41 42 40 39

Gold 104 104 107 107 99

Cobalt - 30 27 35 42

Mica - - - 10 19

Lithium - - - 16 11

Copper - - - - 33

Nickel - - - - 22

Through such efforts, we are able to screen out conflict minerals

illegally mined from 10 African countries including the Democratic

Republic of the Congo and only use minerals sourced from smelters

certified by globally recognized third-party accreditation entities. In

addition to conflict minerals, we continually monitor minerals that

entail human rights violations and environmental destruction issues

during the mining process and take necessary steps in cooperation

with other global organizations.

Responsible Minerals Partnerships

We aim to prevent and address any adverse social and environmental

impacts of our supply chains by sourcing minerals in a responsible

manner. To this end, we collaborate with global companies and

stakeholders in an array of campaigns, including the initiatives for

building a responsible minerals management system and standardizing

smelter accreditation.

Cobalt for Development

‧ We undertook the project to enhance the work environments of

artisanal cobalt mines and the living conditions of local mining

communities in the Democratic Republic of the Congo.

‧ The project was initiated in 2019 together with Deutsche

Gesellschaft fur Internationale Zusammenarbeit (GIZ), Samsung

SDI, BMW Group, and BASF.

‧ Volkswagen joined the project as a new partner in 2020.

‧ Key activities (as of 2021)

- Performed safety training for over 1,000 miners from 14

cooperatives

- Provided protective gear including helmets

- Conducted agricultural and financial training for more than

3,000 local residents

- Supported the foundation of 72 microbusinesses such as

bakeries and tailors

(Responsible Minerals

Initiative)

(European Partnership for

Responsible Minerals)

(Cobalt for

Development)

RMI EPRM C4D

Responsible Minerals

Responsible minerals refer to those mined in a way that respects

human rights and the environment and fulfills social responsibility.

We strive to eradicate human rights violations, such as child labor and

sexual violence, during the mining process and to protect the health

and safety of miners.

Our Responsible Minerals Management

We focus on raising awareness of responsible minerals issues,

conducting inspections on the status of responsible minerals use,

and identifying and remedying risk factors in relation to all of our

mass-produced materials suppliers based on the OECD Due Diligence

Guidance* for Responsible Supply Chains of Minerals from Conflict-

Affected and High-Risk Areas. We block the inflow of materials that are

not sourced in compliance with our responsible minerals policy from

the initial point of purchase.

* OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from

Conﬂict-Affected and High-Risk Areas

Responsible Minerals Report 2023

List of smelters and reﬁners

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Our CSR Activities

Education for Future Generations

We strive to empower young minds to drive innovation and positive

social change. We capitalize on our technology, knowledge, expertise,

and resources to help them develop future skills which include

technical skills as well as soft skills such as creative-thinking, curiosity,

and empathy. Moreover, we partner with government institutions and

organizations to provide education programs around the world.

Enhancing Creative Problem-Solving Capacity

Samsung Solve for Tomorrow

Samsung Solve for Tomorrow is an idea contest for youth designed

to advance their STEM (Science, Technology, Engineering and Math)

competencies and creative problem-solving skills required for

the future workforce. Teachers and mentor students of Samsung

employees on identifying the root causes of problems, ﬁnding viable

solution, and turning these ideas into action. In 2022, we provided a

total of KRW 20.5 billion in funding to Samsung Solve for Tomorrow.

Mission

Through our education programs, we aim to empower the youth to

drive positive social changes. The youth have unlimited potential – the

kind that may break new grounds and leave a mark in history. We help

young talents realize their full potential by equipping them with the

skills for the future workforce.

Core Values

Samsung follows a simple business philosophy: to devote its talent and

technology to creating superior products and services that contribute

to a better global society. At the core of this philosophy lies our focus

on people; thus the cultivation of talent has been our key to success.

Our CSR vision centers on Samsung’s values of People and

Coprosperity. The aim is to help individuals realize their potential to

the fullest, especially young minds that will become future leaders. We

utilize our knowledge and knowhow in technology and innovation to

provide greater access to opportunities for all.

Total Beneﬁciaries

countries

participants

250,304

Corporate Social Responsibility (CSR)

Under Samsung’s CSR vision of “Together for Tomorrow! Enabling

People”, we strive to provide equal access to education for the youth.

Together for

Tomorrow!

Enabling People

Education

for Future

Generations

ThemeVision

We announced our CSR vision “Together for Tomorrow!

Enabling People” in celebration of our 50

anniversary

in 2019. This vision is aligned with Samsung’s core values

of “People”, “Shared Prosperity”, and “Catalyzing Change ”

and reﬂects our commitment to fostering talents and

building a better world.

Empowering

Communities

CSR website

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Clean Water for Rural Communities (Brazil)

Three young friends living in Sao Paulo, Brazil, learned at school that the

use of pesticides at coffee plantations had continued to increase and

was polluting nearby water resources threatening the future of local

ecosystems. Seeking solutions, these students developed Macafiltro,

which purifies polluted water using macauba fruit commonly found in

the region. As the water supplied to rural communities typically does not

undergo any purification process, Macafiltro is attached to water supply

pipes to purify water as it flows to each household.

OUR CASE

Participant (Indonesia)

Ridwan applied for Samsung Innovation Campus on his teacher’s

recommendation after graduating from vocational high school. Although he

had no previous experience or knowledge in IT, he succeeded in developing a

website in cooperation with his team members over the course of just a few

months. He takes pride in helping many others resolve diverse issues through

this website. He was hired as an intern upon completing Samsung Innovation

Campus and plans to create an app with the design team.

OUR CASE

Participant Interview

"Working to solve the program’s tasks, we learned how to operate as a

team, with each of its members having a clearly defined role. It was also

a great opportunity for me to acquire new skills, such as communicating,

attracting new partners, and securing the funds needed to build a

prototype of the solution we proposed. I could also draw upon the

experience of other teams, including those with an international make-up.

I strongly recommend participation in Solve for Tomorrow for my peers, as

the entire undertaking is a great intellectual adventure."

Victoria Stanisławska

Runner-up in Samsung Solve for Tomorrow Poland (2021-2022)

On Forbes magazine’s list of “23 women worth following in 2023”

Staff Interview

"In a fast-paced world, the young generation is hungry to learn new things

and adapt to endless possibilities. Watching the young students absorb

knowledge so quickly never ceases to amaze me. What we need to do is give

the youth opportunities that will help them discover their passion. We truly

believe in their remarkable potential to reach new heights of innovation and

to develop life-changing solutions. We hope that the young generations

discover what they are interested in and get passionate about engaging

in various activities, such as Samsung Innovation Campus, to expand their

hands-on experiences and capabilities. Once you understand yourself, then

you will be able to create your plan and push toward your goal with greater

ease. We will accompany your journey towards a better future."

Asli Askin (Corporate Citizenship Manager, Samsung Electronics Türkiye)

INTERVIEW

Samsung Innovation Campus

Since 2013, we offer a range of technical training programs for adolescent students and young adults entering the job market. In 2019, we updated

and reconﬁgured these programs into Samsung Innovation Campus. Samsung Innovation Campus offers a range of curricula, from programming to

AI, in partnership with local education authorities, academic institutions, and civil society organizations in various countries.

Samsung Innovation Campus helps young students and adults develop skills required for IT functions such as programming, AI, IoT, and big data

through theoretical and hands-on training. It also aims to foster their soft skills such as creative thinking, communication skills, and empathy. In 2022,

we provided a total of KRW 7.8 billion in funding to Samsung Innovation Campus

Courses

countries

Total Beneﬁciaries

students

44,823

INTERVIEW

IoT

Big Data

Coding and

programming

Soft skills

Workplace

capabilities

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Samsung Software Academy for Youth

Samsung Software Academy for Youth (SSAFY) was established

in December 2018, in collaboration with the Korea Ministry of

Employment and Labor. Since then, we have offered young Korean

students aspiring to become software developers a one-year program

of basic courses on algorithms, coding, and web design, and practical

training in utilizing AI, IoT, and other advanced technologies. As of now,

seven batches of 4,732 students in total have completed the program,

of which 3,857 landed jobs recording an 82% employment rate.

The SSAFY Advisory Group holds quarterly consultations with top-tier

experts in software learning, liberal arts, and CSR.

Samsung Smart School

Samsung Smart School supports schools in rural and remote areas

that lack digital educational resources with smart devices, training

solutions, learning contents, and interior remodeling. with the aim

of narrowing the regional education gap and strengthening future

skills of youth. Since 2012, we have supported a total of 193 classes at

98 schools in Korea. In 2022, we supported ten exemplary schools in

Korea selected in 2021. The program also provides faculty members

of beneficiary schools with regular training and access to external

support on utilizing smart devices. The smart devices and associated

support services are offered to the schools for up to two years.

Samsung Junior SW Academy

Samsung Junior SW Academy was launched in 2013 as part of a

partnership agreement with the Korea Ministry of Education. Since

then, we have trained teachers who are transferring their skills and

knowledge to their students at elementary and middle schools. In

2021, the program was revamped with a focus on AI. We adopt learning

contents developed jointly with AI experts in the training of teachers

and provide them with learning modules and practice-kits tailored to

young students.

Since 2015, we host the Samsung Junior SW Creation Contest inviting

young aspiring software developers to take part in deep dive trainings

and develop solutions that can drive positive social change. In 2022,

we provided a total of KRW 2.9 billion in funding to Samsung Junior SW

Academy.

Samsung Dream Class

Samsung Dream Class, which originally started as a combination of

after-school classes and vacation camps in Korea, was revamped in

2021 as a comprehensive education program built on three pillars:

career development, future skills training (e.g., global communication,

coding, math, logic), and academic curriculum. The program engages

Samsung employees and ﬁeld experts as mentors. In 2022, we provided

a total of KRW 10.5 billion in funding to Samsung Dream Class.

My experiences at SSAFY enabled me to take a leap as a developer

"The process of solving problems that I encountered in individual projects,

rather than the outcomes themselves, was important for me. This

experience has been directly applicable to my communication at work

and in my professional growth as a self-learning developer. I am currently

working as a front-end developer at Nexon Korea."

Lee Eun-chong

batch of SSAFY Seoul Campus, currently working at Nexon Korea)

INTERVIEW

Total Beneﬁciaries

students

43,012

teachers

708

Total Beneﬁciaries

middle school students

3,897

college students

500

Total Beneﬁciaries

school

classes

"Parents are highly satisfied as they can follow up with their children’s

progress at home. This program also works to bring parents and children

closer together as children teach their parents how to use different smart

devices. Digital classes can be easily set up based on the guide and video

materials provided by this program. I intend to continuously improve my

classes by exchanging effective teaching methods with my faculty peers."

Teacher at Cheongsong Elementary School

"Since 2012, Samsung Smart School has contributed to expanding access

to quality education and innovative training models based on its advanced

digital training system aimed at serving marginalized communities in

Korea. It has motivated an increasing number of students to engage in

self-led learning. The program was benchmarked by the government

in its smart education environment policy and is among the education

programs most preferred by school teachers."

Samsung Smart School Advisory Professor

INTERVIEW

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Blue Elephant

Blue Elephant is a cyber-violence prevention program in Korea targeting

the youth, launched in partnership with the Blue Tree Foundation.

Sessions on developing prosocial behaviors and skills that help prevent

cyber violence are held in-person at the beneﬁciary schools.

The program induces behavioral change of young students through

rehabilitation services, including professional counselling, and strives

to foster a culture of non-violence through awareness-raising contents

and campaigns targeting all corners of society. It also supports

research on addressing the root cause of cyber violence and efforts

to develop institutional frameworks to prevent and respond to cyber

violence. In 2022, we provided a total of KRW 1.1 billion in funding to the

Blue Elephant program.

Kiosk of Sharing

The Kiosk of Sharing is designed to encourage donations by our

employees for underprivileged children. KRW 1,000 is donated every

time an employee ID card is tagged to a kiosk installed on site. When

donations reach the targeted amount, they are delivered to children of

vulnerable demographic groups. The Kiosk of Sharing is installed at all

business sites in Korea as of 2022 and has grown in global presence since

2019 currently active in Vietnam, India, China, Thailand, and the US.

Blue Tree

Foundation

Community

Chest of Korea

Ministry of

Education

Number of training sessions in 2022

308,941

sessions

Stepping Stone of Hope

Stepping Stone of Hope provides a residence for adolescents in Korea

who are forced to leave protective care facilities at the age of 18 due to

the nationally-set age limit. These facilities are provided to individuals

for up to two years, through partnerships with local governments

and civil society organizations. During their residence, independence

training and information on employment opportunities are provided

to help the young individuals stand on their own feet. In 2022, we

provided a total of KRW 6.5 billion in funding to the Stepping Stone of

Hope program.

Stepping Stone of Hope Centers

Gyeonggi

Chunanam

Jeonbuk

Gwangju

Jeonnam

Kiosk Donation System

· In Korea: KRW 950 million collected, 38,000 employees involved, and

340 children sponsored in 2022

· Global: KRW 100 million collected and 36,000 employees involved in 2022

* scheduled to open in

November 2023

Gyeongnam

Busan

Daegu

Gyeongbuk

Gangwon

Chungbuk*

Selecting children and teenagers

to be sponsored in individual

regions

Initiating fundraising (donations

made by tagging the employee ID

card)

Posting the stories of children to be

Category

Executive

Director

Executive

Director

Executive

Director

Executive

Director

Executive

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Independent

Director

Name

Jong-hee

Han

Kye-hyun

Kyung

Tae-moon

Roh

Hark-kyu

Park

Jung-bae

Lee

Sun-uk

Kim

Eun-nyeong

Heo

Myung-hee

Yoo

Han-jo

Kim

Sun-uk

Kim

Jong-hun

Kim

Sun-uk

Kim

Han-jo

Kim

Jong-hun

Kim

Jong-hun

Kim

Han-jo

Kim

Jun-sung

Kim

Han-jo

Kim

Sun-uk

Kim

Jong-hun

Jun-sung

Kim

Eun-nyeong

Heo

Myung-hee

Yoo

Gender

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Details

*Chair position currently vacant and expected to be ﬁlled soon.

Committees under the Board

Sustainability Management

 Deliberates and makes

decisions on general

management matters,

finance-related issues,

and matters delegated

by the Board

 Screens and

recommends

candidates based on

their independence,

diversity, and

competence

 Performs audits of

all business affairs

including financial

status

 Aims to enhance

business transparency

by promoting voluntary

adherence to fair

transaction regulations

 Aims to ensure

objectivity and

transparency in the

decision-making

process of director

compensation

 Launched in July

2021 by restructuring

the Governance

Committee

 Aims to fulfill corporate

social responsibility,

drive sustainability

management in the

areas of environmental,

social, and governance,

and increase

shareholder value

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Our Business Principles

Efforts to Ensure Compliance Management

The Compliance Team reports directly to the CEO, and the Chief

Compliance Officer attends all Board meetings and Management

Committee meetings to support decision-making. The Compliance

Team operates the Compliance Program Management System (CPMS),

an IT system that enables efﬁcient oversight of compliance and ethics,

while managing potential risks in focus areas, such as anti-corruption,

fair trade, intellectual property rights, privacy protection, labor and

human rights, environment and safety.

Efforts to Ensure Ethical Management

Samsung Electronics, together with its partners, external stakeholders,

and employees, seeks to fulﬁll its roles and social responsibilities while

adhering to compliance and ethics. To this end, we have in place a set of

management principles and guidelines based on compliance and ethics.

At Samsung Electronics, compliance with

laws and ethical standards is a top priority

business principle. We conduct our business

in compliance with laws and ethical

standards to fulﬁll our social responsibilities

and build a sound corporate culture that is

fair and transparent.

Compliance &

Ethics

Business Principles

We comply with laws and ethical standards.

2. We maintain an organizational culture of integrity.

3. We respect our customers, shareholders, and employees.

4. We care for the environment, health, and safety.

5. We are socially responsible as a global corporate citizen.

Business Conduct Guidelines for Employees

· The guidelines for our employees are posted in our intranet system in 15

languages including Korean.

· The guidelines are shared with all of our employees globally at least once a

year through offline and online training sessions.

Business Guidelines for Partner Companies

· We provide guidelines for our partner companies to ensure transparency

in transactions.

Focus areas of compliance management

Anti-corruption

Fair Trade

Environment

and Safety

Privacy

Protection

Intellectual

Property Rights

Labor and

Human Rights

Consumer

Protection

Focus Areas

of Management

Trade Subcontracting

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Compliance and Ethics Programs

Prevention

Monitoring

Report results of the annual audit performed by dedicated

organizational units and specialists to the Board of Directors at

least once a year

The results of the annual compliance and ethics audit our business

sites in Korea and other regions are reported to the Board of Directors

at least once a year. Based on the results, we identify points of

improvement and reflect them in our business activities. In 2022,

we conducted audits on different areas each quarter and found

satisfactory results overall.

Receive reports on violations of laws and acts of corruption by the

company or its employees through the whistleblowing channels and

apply the principles of protecting the identity of whistleblowers and

preventing retaliatory actions against them.

We keep diverse whistleblowing channels open for internal and

external whistleblowers and receive reports via email, telephone, and

fax. All of our whistleblowing channels operate under a strict policy of

whistleblower identity protection and prohibition of retaliatory actions

– including confidentiality requirements related to whistleblower

identity and their reports, the prevention and suspension of any

unfavorable dispositions against whistleblowers and investigation

supporters, remedial actions for damage, and sanctions on those who

incur unfavorable dispositions.

Period

Description of Item Areas

Current status of confidential

information management

Trade secrets

Compliance of third-party production

in Korea and other regions

Technology leakage,

product liability

Compliance of organizations in Korea

involved in development

Trade secrets, technology

misuse

Voluntary compliance of global

subsidiaries

Compliance program

operation status

Compliance of global sales

subsidiaries

Fair trade, trade secrets

Risks related to external sponsorships

and internal transactions

Anti-corruption, fair trade

Compliance of patent

application process

Technology misuse, trade

secrets

Compliance of global

production subsidiaries

Technology misuse,

anti-corruption

Major Audit Activities in 2022 Our Compliance and Ethics Whistleblowing Channels

*Some channels are only available in Korea

Channel for internal whistleblowers

 CPMS > Whistleblowing

 Ethical Management website > Whistleblowing

Channel for external whistleblowers

 https://sec-compliance.net  https://sec-audit.com

Telephone

 1811-6341  1577-7988

 cp.wb.sec@samsung.com  audit.sec@samsung.com

Fax

 031-277-1166  031-200-9966

Disclose compliance policy and guidelines

on the Compliance Program Management System (CPMS)

Monitor regulatory trends

to minimize potential non-compliance risks

Operating employee training programs

· Employee training: To emphasize the importance of Ethics and

Compliance Management to all employees – including contractual and

part-time employees – including contractual and part-time employees –

compliance and anti-corruption trainings are conducted once a year.

In addition, training on Korea’s Improper Solicitation and Graft Act is

provided to contractual administrative function employees who are

dispatched by partner companies. Training programs tailored to

specific job functions are also available.

· Executive management training: To strengthen the awareness and

leadership of the top executives, which is key to compliance and ethical

management

Compliance consultation through 1:1 sessions

Response

Assess Risks

 Take stock of major violations in areas such as fair trade and

anti-corruption, and identify key risks based on the possibility

of occurrence and potential scope of impact

 Incorporate the results of risk assessment into compliance programs,

such as employee training

Assessing effectiveness of our compliance control system

 Assess whether our compliance control system is operated

in a way that meets relevant regulations

Prevent Recurrence

 Establish measures to prevent recurrence by analyzing the

results of audits, whistleblower reports, and response to issues

Measures on employees

 Impose disciplinary or corrective measures, including training,

pursuant to our internal standards based on the gravity of the

specific incident

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Samsung Compliance Committee

An Independent External Committee to Monitor Compliance

The Samsung Compliance Committee is an external organization with

guaranteed independence and autonomy. It was launched in on February

5, 2020, under the aim of practicing integrity-based management,

which is one of our key values, by reinforcing compliance monitoring and

control over Samsung’s seven major member companies*.

It is composed of six external members including the chair and one

internal member. Chan-hee Lee, a former president of the Korean Bar

Association, currently serves as the second chair following the first

chair, Ji-hyung Kim, who is a former justice of the Supreme Court of

Korea. The Committee’s external members are selected from experts

equipped with knowledge and experience in diverse fields including

law, accounting, economics, and public administration.

* Samsung Electronics, Samsung C&T, Samsung SDI, Samsung Electro-Mechanics,

Samsung SDS, Samsung Life Insurance, and Samsung Fire & Marine Insurance

Key Activities of the Committee

❶

Hold regular and special meetings

❷

Review external sponsorships and internal transactions

❸

Operate a separate whistleblowing channels to receive reports on

compliance violations

❹

Assess our compliance system and make recommends for improvement

Implementation of the Committee’s Recommendations

The Committee delivers recommendations on a range of issues

to improve the compliance management practices of Samsung

member companies. We have developed measures to ensure their

implementation. We continue to work in collaboration with the

Committee to operate an advanced monitoring program and compliance

system and closely manage potential non-compliance risks.

Other Activities

November 2022

· Meeting with Business Support Task Force, EPC

Competitiveness Improvement Task Force, and

Financial Competitiveness Reinforcement Task Force

June 2022

· Meeting between the Committee’s Labor

Subcommittee and the labor-management

relations advisory group

June 2022

· Meeting with the executive management of

Samsung member companies

January 2022

· Discussion with external experts on ways to

improve corporate compliance

Strengthening a Culture of Compliance

Corruption Risk Review Process

The External Sponsorship Council conducts a preliminary review of

all external sponsorships of KRW 10 million or above and reports the

review results to the Audit Committee. External sponsorships of KRW 1

billion or above in annual amount require the approval of the Board of

Directors.

Furthermore, approval from the Compliance Team is required for

new vendor registration and signing of contracts in line with the anti-

corruption review process.

Evaluation and Awards

To foster a culture of compliance, we strive to improve the evaluation

system of employees and operate an award system. We have increased

the weight of compliance items in the evaluation of executives and

introduced compliance items in the evaluation of organizational

performance. Moreover, SEC Annual Awards are presented by the CEO

to employees and organizations for their contributions to building a

culture of compliance.

External Sponsorship

Council

Anti-Corruption Review

for Vendor Registration

Anti-Corruption Review

for Contract Signing

Executive Evaluation

Organizational

Performance Evaluation

Employee Awards

Formed a labor-management

relations advisory group of external

experts under the Board of Directors

Increased the weight of compliance-

related factors in the evaluation of

executives

Held a conference between senior

members of civil society organizations

and our executive management

Formed a regular council of Chief

Compliance Officers of member

companies

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Facts & Figures

113

Sustainability Value

Creation

101

Economic

Performance

102

Social

Performance

108

Environmental

Performance

112

Performance

by Division

114

Materiality

Assessment

116

Alignment with

UN SDGs

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Economic Performance

Key financial performance 2020 2021 2022

Sales KRW 1 trillion 236.8 279.6 302.2

Operating profit KRW 1 trillion 36.0 51.6 43.4

Net income KRW 1 trillion 26.4 39.9 55.7

1. Based on consolidated ﬁnancial statements

Sales by division (based on net sales) 2020 2021 2022

Sales by division (absolute value)

DX KRW 1 trillion 148.9 166.3 182.5

DS KRW 1 trillion 74.1 95.4 98.5

SDC KRW 1 trillion 30.6 31.7 34.4

Harman

KRW 1 trillion 9.2 10.0 13.2

Sales by division (percentage)

DX % 57 55 56

DS % 28 31 30

SDC % 12 11 10

Harman

% 3 3 4

1. Based on net sales

2. Harman [sales by division (absolute value)]: Acquired in 2016

3. Harman [sales by division (percentage)]: Acquired in 2016

Sales by region 2020 2021 2022

Sales by region (absolute value)

Americas KRW 1 trillion 78.3 97.9 119.0

Europe KRW 1 trillion 46.0 50.3 50.3

China KRW 1 trillion 37.8 45.6 35.6

Korea KRW 1 trillion 37.0 44.0 48.7

Asia and Africa KRW 1 trillion 37.7 41.8 48.7

Sales by region (percentage)

Americas % 33 35 39

Europe % 19 18 17

China % 16 16 12

Korea % 16 16 16

Asia and Africa % 16 15 16

1. Based on net sales

Economic value distribution 2020 2021 2022

[Suppliers] Purchasing costs

KRW 1 trillion 168.7 192.0 219.8

[Local communities] CSR costs

KRW 1 trillion 0.5 0.4 0.4

[Shareholders and investors]

Dividends

KRW 1 trillion 20.3 9.8 9.8

[Shareholders and investors]

Dividend payout ratio

% 78 25 18

[Creditors] Interest costs

KRW 1 trillion 0.6 0.4 0.8

[Employees] Personnel expenses

KRW 1 trillion 31.0 34.6 37.6

[Government] Taxes and public

duties by region

[Government] Taxes and public

duties by region

KRW 1 trillion 5.9 10.2 13.0

Asia % 18 14 11

Korea % 51 67 74

Americas and Europe % 28 16 14

Others % 3 3 1

Percentage of distributed economic value

Suppliers

% 73.5 77.0 79.3

Local communities

% 0.1 0.1 0.1

Shareholders and investors

% 8.9 3.9 3.5

Creditors

% 0.3 0.2 0.3

Employees

% 13.5 13.9 13.6

Government

% 3.7 4.9 3.2

1. Suppliers: Costs related to all materials, products, equipment, and services purchased for business

2. Local communities: Total costs of CSR activities

3. Shareholders and investors: Dividends

4. Creditors: Interest costs

5. Employees: Sum of wages, retirement beneﬁts, and welfare beneﬁts included in sales costs, SG&A expenses, and R&D expenses

6. Government: Sum of corporate taxes (based on cash ﬂow statement) and other taxes and public duties, from the report in 2023.

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Social Performance

Compliance and ethics 2020 2021 2022

Compliance training

Individuals 115,787 141,723 126,867

Anti-corruption training

Individuals 187,228 198,592 254,045

Compliance whistleblowing

Cases 549 911 1,098

Corruption whistleblowing

Cases 728 929 999

Corruption whistleblowing rate % 11 12 13

Consumer complaint rate % 28 30 34

Others % 61 58 54

1. Scope of data collection for compliance training: Employees at our our business sites in Korea and other regions (including part-time employees)

2. Scope of data collection for anti-corruption training: Employees at our business sites in Korea and other regions

3. Compliance whistleblowing data: Based on statistics of our compliance microsite (https://sec-compliance.net)

4. Corruption whistleblowing data: Based on statistics of our ethics microsite (https://sec-audit.com)

Corporate citizenship 2020

2021

2022

Hours of employees’ volunteer work

Hours of employees’ volunteer work Hours 635,564 824,329 1,068,867

Hours of volunteer work per employee

Hours 2.37 3.04 3.95

Cumulative number of beneficiaries

Samsung SW Academy for Youth Individuals 2,250 3,950 6,250

Samsung Dream Class Individuals 107,095 112,602 116,999

Samsung Smart School

Individuals 4,237 5,917 5,917

Samsung Junior SW Academy Individuals 84,140 112,341 156,061

Stepping Stone of Hope Individuals 8,612 10,476 16,760

Samsung Blue Elephant Individuals 93,862 353,201 662,142

Samsung Solve for Tomorrow Individuals 1,948,186 2,146,951 2,397,255

Samsung Innovation Campus Individuals 35,802 74,984 119,807

1. Hours of volunteer work per employee: Including employees at all of our business sites in Korea and other regions

2. Beneﬁciaries of Samsung Smart School in 2022 Based on our business sites in Korea

3. Data updated for error correction in some countries in 2020 and 2021

SME support 2020 2021 2022

Beneficiaries of smart factory support

Companies 369 284 277

Partner companies in our supply chains Companies 66 24 33

Non-partner companies Companies 303 260 244

1. Beneficiaries of smart factory support: Figures of 2021 corrected after the publication of the 2021 Sustainability Report due to

business discontinuation of two beneﬁciary companies

Privacy protection 2020 2021 2022

In-house consulting Cases 5,716 6,273 5,858

Response to government request for

information

Requests Cases 188 179 187

Response Cases 130 122 126

Response rate % 69 68 67

1. Response to government requests for information: Compiled statistical data with regards to the warrants issued by Korean courts in

accordance with the applicable Korean laws

Status of Sanctions

The Korea Fair Trade Commission reported Samsung Electronics and former Director of the Future Strategy Office

Choi Gee-sung to the Prosecution on June 22, 2021, on charges of violating Article 23 (1) 7 of the Monopoly Regulation

and Fair Trade Act in relation to the in-house cafeteria catering transaction with Samsung Welstory. This case was

prosecuted on November 16, 2022, and criminal litigation is ongoing at the Seoul Central District Court. The Fair Trade

Commission issued a corrective order and imposed a fine of KRW 101.217 billion on Samsung Electronics for the same

transaction pursuant to the same Act on August 27, 2021. In September 2021, we filed administrative litigation against

the Fair Trade Commission with the Seoul High Court. On January 27, 2022, the corrective order was suspended.

Regardless of the ongoing litigation, we have opened up the bidding for our in-house food catering services, in line

with the recommendations of our Board of Directors and Compliance Committee as well as relevant government

policies, and in an effort to provide a diversified service to our employees. In 2022, all of our 36 in-house cafeterias

procured catering services through competitive bidding.

For the status of other sanctions imposed on the company, please refer to Samsung’s the Semi-Annual Business Report.

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2020 2021 2022Labor and human rights 2020 2021 2022

Number of employees

Persons 267,937 266,673 270,372

Global* Persons 161,607 155,547 152,445

Korea Persons 106,330 111,126 117,927

Number of employees by employment type

Non-fixed-term employees Persons 264,030 262,794 266,705

Fixed-term employees

Persons 3,907 3,879 3,667

Number of employees by age group

Under 30 Persons 99,823 89,911 83,169

30s Persons 106,236 108,469 111,651

40 and above Persons 56,380 68,293 75,552

Number of employees by job type

Development Persons 71,539 75,229 80,496

Manufacturing Persons 127,256 122,809 117,190

Quality assurance and EHS Persons 19,354 19,459 19,763

Sales and marketing Persons 22,704 23,267 24,716

Others Persons 27,084 25,909 28,207

Number of employees by rank

Working level

Persons 190,507 184,739 182,367

Manager level Persons 76,057 80,540 86,548

Executive level

Persons 1,373 1,394 1,457

Number of employees by region

Korea Persons 106,330 111,126 117,927

Southeast Asia, Southwest Asia, and Japan Persons 101,929 94,583 88,992

China Persons 18,099 17,820 17,891

North America and Central and South America Persons 25,004 25,695 27,166

Europe Persons 12,861 12,704 11,710

Middle East Persons 3,160 4,171 4,303

CIS (Commonwealth of Independent States) Persons 1,748 1,739 1,756

Africa Persons 554 574 627

Number of non-Samsung Electronics employees

41,633 50,080 54,492

Men Persons 24,761 31,926 32,803

Women Persons 13,025 13,266 16,773

Others** Persons 3,847 4,888 4,916

Number of non-Samsung Electronics employees by region

  

Korea Persons 27,861 34428 38492

Southeast Asia, Southwest Asia, and Japan Persons 3,590 4,305 4,583

China Persons 599 527 477

North America and Central and South America Persons 3,487 4,006 3,653

Europe Persons 4,598 5,003 5,846

Middle East Persons 581 691 852

CIS Persons 910 1,108 579

Africa Persons 7 12 10

Welfare benefit expenses in Korea and abroad

Welfare benefit expenses in Korea and abroad KRW 1 billion 4,655 5,073 6,092

1. Number of employees: As of yearend (excluding those dispatched by partner companies, those on leave, interns, and full-time students)

2. Fixed-term employees: Those hired pursuant to the Act on the Protection of Fixed-Term and Part-Time Employees at our business

sites in Korea and subcontractors and apprentices at our global business sites

3. Number of employees by job type: “Manufacturing” divided into “manufacturing” and “quality assurance and EHS”

4. Working-level employees: Encompassing those opting for ﬂexible work arrangements and those not categorized under the manager

and executive levels

5. Executive-level employees: Including those at the vice president level and higher at our global business sites

6. Number of non-Samsung Electronics employees: Based on those who chose to indicate their gender

* "Global" refers to countries excluding Korea

** Those who chose not to indicate their gender

Percentage of new female hires and retirement rate 2020 2021 2022

Percentage of new female hires

Korea % 28.4 27.5 27.9

Global % 32.4 33.0 29.4

Retirement rate

Total retirement rate % 17.7 13.9 12.9

Retirement rate of men

% 8.5 7.6 7.0

Retirement rate of women

% 9.2 6.3 5.9

1. Retirement rate: Ratio of those who retired during the respective ﬁscal year to the total number of employees

2. Retirement rates of men and women: Based on the number of employees in Korea and abroad who chose to indicate their gender

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Diversity and inclusion 2020 2021 2022

Percentage of female employees

% 37.3 36.3 35.1

Percentage of female employees by job type

Development % 18.0 18.8 19.2

Manufacturing % 48.9 46.8 45.1

Quality assurance and EHS % 41.3 42.3 40.8

Sales and marketing % 31.5 32.3 33.6

Others % 35.8 36.0 35.9

Percentage of female employees by region

Korea % 24.9 25.1 25.2

Southeast Asia, Southwest Asia, and Japan % 52.7 51.4 49.5

China % 33.4 33.8 34.2

North America and Central and South America % 35.4 34.9 34.4

Europe % 33.8 34.0 40.1

Middle East % 11.3 14.5 15.6

Africa % 42.4 42.5 42.6

Percentage of female employees by rank

Working level % 46.3 45.3 43.9

Manager level % 15.3 16.1 16.9

Executive level

% 6.6 6.8 6.9

Number of employees on parental leave

Men Persons 856 999 1,310

Women Persons 3,041 2,936 3,054

Rate of return to work after parental leave

Men % 93.8 96.3 96.5

Women % 98.9 98.9 98.9

Maximum number of children accommodated at

in-house daycare centers

Maximum number of children accommodated at

in-house daycare centers

Persons 3,020 3,050 3,078

Number of in-house daycare centers

Centers 13 13 13

Number of employees with disabilities

Persons 1,465 1,574 1,664

Percentage of employees with disabilities

% 1.5 1.6 1.6

1. Percentage of female employees: Based on the total number of employees

2. Percentage of female employees by job type: “Manufacturing” divided into “manufacturing” and “quality assurance and EHS”

3. Percentage of executive-level female employees: Including those at the vice president level and higher at our global business sites

4. Number of employees on parental leave: Based on the number of employees at business sites in Korea

5. Rate of return to work after parental leave: Based on the number of employees at business sites in Korea

6. Maximum number of children accommodated at in-house daycare centers: Based on our business sites in Korea

7. Number of in-house daycare centers: Based on our business sites in Korea

8. Number of employees with disabilities: Based on the number of employees at our business sites in Korea

9. Percentage of employees with disabilities: Based on the number of employees at our business sites in Korea

Safety and health 2020

2021

2022

Frequency rate

% 0.035 0.106 0.155

Injury rate

% 0.008 0.022 0.031

Injury rate of suppliers

% 0.045 0.076 0.094

1. (Number of incidents / Total working hours) x 1,000,000; based on employees in Korea and at our global production sites

2. (Number of incidents / Number of on-site employees) x 100; based on employees in Korea and at our global production sites

3. Based on suppliers stationed at our sites

4. Data updated for error correction in some countries in 2020 and 2021

2020 2021 2022

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Career development 2020 2021 2022

Number of training sessions

Total 10,000 cases 734 818 914

Global 10,000 cases 350 366 407

Korea 10,000 cases 384 452 508

Hours of training per employee

Hours 55.8 54.9 60.1

Global Hours 46.0 45.7 52.1

Korea Hours 70.8 67.7 70.5

Average hours of training by gender

Men Hours 59.6 58.2 61.1

Women Hours 49.4 48.2 58.3

Average hours of training by employment type

Regular employees Hours 55.8 54.8 60.5

Non-regular employees Hours 52.2 43.8 40.3

Training expenses

Total training expenses

KRW 100 million 1,014 1,321 1,853

Training expenses per employee

KRW 1,000 953 1,188 1,571

Ratio of training expenses to sales

% 0.05 0.05 0.07

Ratio of training expenses to personnel expenses

% 0.6 0.8 0.5

Re-employment through the Career Development Center

Re-employment support through the Career Development

Center

Cases 7,561 7,940 8,246

Re-employment through the Career Development Center

Cases 6,679 6,982 7,286

Rate of re-employment through the Career Development

Center

% 88.3 87.9 88.4

1. Average training hours per employee: Online training + ofﬂine training

2. Average training hours per non-regular employee: Based on subcontractors and apprentices

3. Total training expenses: Employees in Korea

4. Training expenses per employee: Total training expenses / Total number of employees in Korea

5. Ratio of training expenses to sales: Total training expenses / Sales (sales of DX division (absolute value) + sales of DS division (absolute

value))

6. Ratio of training expenses to personnel expenses: Total training expenses / Total compensation for employees of the headquarters in

Korea

7. Cases of re-employment support through the Career Development Center: Cumulative sum since 2001

8. Cases of re-employment through the Career Development Center: Cumulative sum since 2001

Sustainable supply chain 2020 2021 2022

Comprehensive supplier evaluation

Percentage of evaluated suppliers

% 92 93 89

Percentage of those rated outstanding % 73 68 62

Percentage of those with ISO 14001 certification

% 86 88 90

Percentage of those with OSHAS 18001

certification

% 47 47 50

Win-Win Fund

Funding KRW 100 million 9,736 9,734 9,942

First-tier suppliers KRW 100 million 7,294 6,590 6,997

Second-tier and third-tier suppliers

KRW 100 million 2,442 3,144 2,945

Supplier incentives

Supplier incentives KRW 100 million 777 893 931

Companies participating in supplier training

Companies participating in supplier training Companies 720 911 1,053

First-tier suppliers Companies 511 520 537

Second-tier and third-tier suppliers Companies 209 391 516

Employees participating in supplier training

Persons 16,756 18,725 20,907

First-tier suppliers Persons 13,107 17,423 18,705

Second-tier and third-tier suppliers Persons 3,649 1,302 2,202

1. Percentage of evaluated suppliers: The annual comprehensive supplier evaluation - in 8 areas - applies to all suppliers, except for

those registered for less than a year

2. Percentage of suppliers with ISO 14001 certification: Fulfillment of ISO 14001 or equivalent is required as part of the Standard

Supplier Contract

3. Percentage of suppliers with OHSAS 18001 certiﬁcation: Includes 23 suppliers with SA8000 certiﬁcation

4. Second-tier and third-tier suppliers supported by Win-Win Fund: Third-tier suppliers included since 2018

5. Supplier training participating employees: Including cases of cross-attendance

Transparency in responsible minerals sourcing management 2020 2021 2022

On-site inspections of suppliers

Companies 427 493 438

1. On-site inspections of suppliers aimed at eradicating the use of conﬂict minerals

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Innovation support for first-tier suppliers 2020 2021 2022

Innovation support for first-tier suppliers Companies 28 30 66

Global Companies 0 0 5

Korea Companies 28 30 61

Work environment management

First-tier suppliers performing third-party audits Companies 78 108 121

Supplier Third-Party Audit Compliance Rate by Area

2020 2021 2022

Labor and human rights

Freely chosen employment

% 97 98 98

Guarantee of freedom of movement % 99 99 100

Prohibition of child labor % 100 100 100

Protection of underage workers % 98 100 100

Working hours % 82 87 93

Guarantee of at least one day off per week % 92 97 97

Wages and benefits

% 90 91 96

Humane treatment % 100 100 100

Non-discrimination

% 100 100 100

Freedom of association

% 99 99 98

Safety and Health

Occupational safety % 94 96 95

Emergency preparedness % 96 95 94

Occupational injury and illness % 99 99 98

Physically demanding work % 95 99 97

Machine safeguarding % 98 99 98

Sanitation, food, and housing % 95 99 99

Environment

Pollution prevention % 99 98 99

Hazardous substances % 97 99 96

Wastewater and solid waste % 99 100 98

Air emissions % 100 100 99

Materials restrictions % 100 100 100

1. The ﬁgures include the improvement implementation results based on each year’s third-party audit (performed on 121 suppliers in

2022).

2. Freely chosen labor: Including prohibition of forced labor and establishment of relevant policies, labor contract-signing, guarantee of

freedom of movement and prohibition of keeping the original copy of an employee’s identiﬁcation document

3. Wages and beneﬁts: Including accurate calculation and payment of wages, provision of wage statements, prohibition of delay in the

payment of wages, prohibition of unjust penalty imposition and compulsory payments such as social insurance contributions

4. Non-discrimination: Including prohibition of discrimination based on gender and other personal traits to ensure access to equal

opportunities and pay, establishment of non-discrimination policies and procedures, provision of spaces for religious gathering

5. Freedom of association: Including guarantee of the right to establish and join labor unions, right to collective bargaining, freedom of

assembly and association and prohibition of discrimination against labor union members

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Enhancement of customer value

2020 2021 2022

Korea

Visual Display and Digital Appliances Score 77.3 80.6 83.8

Mobile and Networks Score 85.0 84.8 86.8

Global

Visual Display and Digital Appliances Score 66.8 69.2 71.2

Mobile and Networks Score 61.7 64.4 66.3

1. Customer satisfaction rate based on Samsung Customer Services' Net Promoter Scores (NPS)

* The CE Division (including Visual Display and Digital Appliances) and IM Division (Mobile and Networks) were integrated into the

Device eXperience (DX) Division in December 2021. The ﬁgures of 2020 and 2021 are based on the previous business categorization.

Ethics 2020 2021 2022

Corporate ethics % 96 98 100

Prohibition of ill-gotten gains % 94 98 100

Information disclosure % 97 100 100

Intellectual property % 100 100 99

Confidentiality and prohibition of retaliation % 97 100 100

Privacy protection % 100 99 100

Management System

Will for compliance % 99 100 98

Management responsibility % 96 100 95

Risk assessment % 87 97 92

Training % 95 100 98

Communication % 96 99 97

Employee feedback % 100 99 100

Remedial action % 91 98 95

Management of business improvement targets % 90 98 93

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Environmental Performance

GHG emissions management (Scope 1, 2) 2020 2021 2022

GHG emissions from business sites

1,000 tonnes CO

e 14,806 17,400 15,053

Direct emissions (Scope 1) 1,000 tonnes CO

e 5,726 7,604 5,972

Indirect emissions (Scope 2)

1,000 tonnes CO

e 9,079 9,796 9,081

GHG emissions intensity

Tonnes CO

e /

KRW 100 million

6.6 6.7 5.4

CO 1,000 tonnes CO

e 10,266 11,005 10,336

CH 1,000 tonnes CO

e 3 3 3

NO 1,000 tonnes CO

e 329 489 530

HFCs 1,000 tonnes CO

e 685 902 679

PFCs 1,000 tonnes CO

e 3,322 4,787 3,333

SF 1,000 tonnes CO

e 202 214 173

1. GHG emissions from business sites: Calculated based on country-speciﬁc GHG management guidelines, the IPCC Guidelines, and ISO 14064

* Location-based GHG emissions that do not reﬂect the use of renewable energy: 17,571,000 tonnes CO

e in 2020, 20,170,000 tonnes

e in 2021, and 19,892,000 tonnes CO

e in 2022

2. Indirect emissions (Scope 2) from business sites: Market-based GHG emissions that reﬂect the use of renewable energy

3. GHG emissions intensity: GHG emissions from business sites (Scopes 1 and 2) / Sales (sales of DX division (absolute value) + sales of

DS division (absolute value), KRW 100 million)

GHG emissions management (Scope 3) 2020 2021 2022

Other indirect emissions (Scope 3)

1,000 tonnes CO

e 124,715

Purchased products and services

1,000 tonnes CO

e 14,596

Capital goods

1,000 tonnes CO

e 1,508

Fuel- and energy-related activities

1,000 tonnes CO

e 900

Upstream transportation and distribution

1,000 tonnes CO

e 3,965

Waste generation and treatment

1,000 tonnes CO

e 246

Business trips of employees

1,000 tonnes CO

e 87

Commuting of employees

1,000 tonnes CO

e 303

Rented assets

1,000 tonnes CO

e 107

Downstream transportation and distribution

1,000 tonnes CO

e 366

Processing of sold products

1,000 tonnes CO

e 142

Use of sold products 1,000 tonnes CO

e 101,236

Discard of sold products 1,000 tonnes CO

e 1,206

Leased assets 1,000 tonnes CO

e 1

Investment 1,000 tonnes CO

e 52

* Other indirect emissions (Scope 3): The internal calculation standard of 14 categories has been set in 2022 and all the categories have

been assured by the independent 3rd party. Data used for calculating suppliers' emissions - in the categories of Purchased goods &

services, Capital goods, and Processing of sold products - are based on 2021.

** Scope 3 emissions and assured categories in 2020 14,725.000 tonnes CO2e, sum of 4 categories (purchased products and services,

upstream transportation and distribution, downstream transportation and distribution, and business trips of employees)

*** Scope 3 emissions and assured categories in 2021 123,235,000 tonnes CO2e, sum of 12 categories (NOT including capital goods,

processing of sold products, and franchises)

Energy management 2020 2021 2022

Energy consumption at business sites

Energy consumption at business sites GWh 29,024 32,322 35,177

Electricity GWh 22,916 25,767 28,316

Others

GWh 6,109 6,555 6,861

Energy intensity

MWh/

KRW 100 million

13.0 12.4 12.5

Renewable energy consumption GWh 4,030 5,278 8,704

1. Others (Energy consumption at business sites): LNG

2. Energy intensity: Energy consumption at business sites (MWh) / Sales (sales of DX division (absolute value) + sales of DS division

(absolute value), KRW 100 million)

Energy efficiency of products

1) 2)

2020 2021 2022

Amount of GHG emissions reduced in the product

use phase

Amount reduced by year 1,000 tonnes CO

e 31,671 32,906 914(18,909)*

Energy efficiency improvement rate

Product energy consumption reduction rate % 32 33 2.6(18)*

1. Energy efﬁciency of products: Target product categories expanded in 2022 from 7 to 13

-2020-2021 7 major product categories (refrigerator, air conditioner, washer, TV, monitor, laptop, and smart phone)

- 2022 13 major product categories (refrigerator, air conditioner, washer, dryer, microwave oven, vacuum cleaner, TV, monitor, PC,

smart phone, tablet, wearable, and base station)

2. Energy efﬁciency of products: BAU base year changed from 2008 to 2021

-2020-2021 Reduction compared to 2008 BAU

-2022 Reduction compared to 2021 BAU

* Compared to 2008 BAU, the reduction in 2022 stands at 18,909,000 tonnes CO

e, which is equivalent to an average energy

consumption improvement of 18%.

Resource efficiency of products 2020 2021 2022

Plastic with recycled resin

Cumulative use

Tonnes 276,972 310,291 409,117

Amount used by year Tonnes 30,992 33,319 98,826

Percentage of Plastic with recycled resin used

% 4.3 4.4 13.9

Recycled packaging

Tonnes 13,529 13,788 13,011

1. Cumulative use: From 2009

2. Percentage of Plastic with recycled resin used: amount of Plastic with recycled resin used / total amount of plastic used

3. Recycled packaging: Based on data collected in Korea

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Waste management 2020 2021 2022

Amount of waste generated

Amount of waste generated Tonnes 1,181,741 1,324,972 1,413,365

General waste Tonnes 835,875 903,753 931,929

Hazardous waste

Tonnes 345,866 421,219 48 1,436

Amount of waste treated

Amount of waste treated Tonnes 1,181,741 1,324,972 1,413,365

Amount of waste recovered for recycling Tonnes 1,125,037 1,268,985 1,364,367

Incineration (off-site) Tonnes 23,346 26,078 25,479

Landfill (off-site) Tonnes 19,758 19,480 14,927

Others Tonnes 13,600 10,430 8,59 3

Percentage of waste recovered for recycling

Percentage of waste recovered for recycling % 95 96 97

1. Hazardous waste: Based on monitoring standards of individual countries where our business sites are located

Collection and recycling of e-waste 2020 2021

2022

Cumulative amount of e-waste collected

Tonnes 4,540,155 5,099,436 5,699,938

Amount of e-waste collected

Amount of e-waste collected Tonnes 506,627 559,281 600,502

Europe Tonnes 279,902 311,687 332,373

Americas Tonnes 41,426 46,584 50,955

Asia and Oceania Tonnes 185,299 201,010 217,174

1. Cumulative amount of e-waste collected: From 2009

2. 2021 Figures updated (due to the delay in data collection in some countries)

Amount of e-waste collected by year and product type

2020 2021 2022

Amount of e-waste collected by year and product type Tonnes 113,850 120,718 132,681

Heat exchanger Tonnes 97,544 75,463 75,879

Telecommunications service equipment Tonnes 6,948 9,249 10,644

Display Tonnes 4,170 3,292 1,930

Other electric and electronics equipment Tonnes 5,188 32,715 44,228

Amount of materials recovered for recycling

Amount of materials recovered for recycling Tonnes 97,815 103,716 111,406

Scrap metal Tonnes 52,666 55,843 57,763

Nonferrous metal Tonnes 11,779 12,489 11,996

Synthetic resin Tonnes 26,741 28,354 33,157

Glass Tonnes 2,883 3,057 4,068

Others Tonnes 3,747 3,973 4,422

1. Amount of e-waste collected by year and product type: From 2009

* E-waste classiﬁcation system changed in 2021 from the existing system of “large-sized equipment, telecommunications service

equipment, medium-sized equipment, and small-sized equipment”

2. Amount of materials recovered for recycling: Based on data collected in Korea

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Water management 2020 2021 2022

Water intake

Water intake 1,000 tonnes 141,648 163,660

172,811

Municipal water (surface water) 1,000 tonnes 141,063 163,102 172,113

Underground water 1,000 tonnes 585 558

698

Wastewater discharge

Wastewater discharge 1,000 tonnes 109,201 130,955 136,118

Water reused

Water reused 1,000 tonnes 70,181 93,949 116,590

Ultra-pure water reused

Supply 1,000 tonnes 57,226 61,986 70,989

Recovery 1,000 tonnes 19,691 22,543 24,731

Suppliers’ water consumption

Suppliers’ water consumption 1,000 tonnes 70,128 84,737 94,814

1. 2. 2021 data updated for error correction

3. Suppliers’ water consumption: Based on the water consumption for Samsung Electronics product manufacturing by the top 90% of

suppliers in terms of transaction scale

Workplace environment management 2020 2021 2022

Investment in EHS KRW 100 million 9,412 13,997 21,836

Violations of environment-related laws

and regulations

Cases 0 0 2

1) 2)

Pollutant management

2020 2021 2022

Air pollutant emissions

NOx Tonnes 652 717 785

SOx Tonnes 6 19 35

Tonnes 71 68 95

HF Tonnes 18 22 19

Tonnes 210 163 207

Volatile organic compound emissions

Volatile organic compound emissions Tonnes 289 314 394

Water pollutant discharge

COD Tonnes 1,033 906 846

BOD Tonnes 315 266 313

SS Tonnes 377 393 411

F Tonnes 428 520 576

Heavy metals Tonnes 9 13 16

Consumption of ozone depleting

substances (CFC-11 eq)

Consumption of ozone depleting

substances (CFC-11 eq)

Tonnes 2 1 2

1. To mitigate air pollutant emissions, we are pushing ahead with the introduction of a NOx reduction system, implementation of a

catalytic oxidation process, and installation of electric dust collection facilities. In accordance with the Montreal Protocol, all of our

business sites are gradually replacing the refrigerants for freezers and air conditioners with alternatives with less ozone depletion

potential (ODP). We are also working to remove water pollutants through our optimized wastewater treatment facilities prior to

wastewater discharge.

2. Previous dust emissions disclosure standards changed

3. Scope of data collection: Korea

Chemicals management

2020 2021 2022

Chemicals consumption

1,000 tonnes 455 520 578

Discharge of major hazardous substances Cases 0 0 0

1. Scope of data collection: Korea

2. Chemicals consumption: Based on the European Pollutant Release and Transfer Register (E-PRTR) from 2018

1. On 13 October 2022, the Gwangju City Hall imposed a ﬁne of KRW 3.2 million on Samsung Electronics for violating Article 39 (Self-

Measurement), Paragraph 1 of the Air Environment Conservation Act regarding the recording of self-measurement results of air

pollutants. Samsung Electronics voluntarily paid the fine and conducts periodic cross-measurements to improve the reliability

of its measurements. For reference, the events related to the imposition of the above fines are as follows: On 2 March 2021, the

Yeongsan River Basin Environment Agency of the Ministry of Environment (MOE) notiﬁed Samsung Electronics' Gwangju Plant of

the cancellation of its designation as a green company, citing Article 16(3)(1) of the Environmental Technology and Environmental

Industry Support Act (Cancellation of Designation of Green Companies). On 7 July 2022, the Gwangju District Court sentenced two

employees of Samsung Electronics to a ﬁne of KRW 3 million each for violating Article 18 of the Environmental Testing and Inspection

Act, and the sentence was upheld.

2. On 22 December 2002, the Ministry of Environment imposed a ﬁne of KRW 1.6 million on Samsung Electronics for violating Article

31 (Operation of Emission Facilities and Prevention Facilities) of the Atmospheric Environment Protection Act. Samsung Electronics

has voluntarily paid the ﬁne and is striving to comply with relevant laws and regulations by strengthening inspections of air pollution

prevention facilities.

For the status of sanctions related to environmental violations by other companies, please refer to the Business (Semi-Annual) Report.

 On 10 June 2022, the Texas Commission on Environmental Quality (TCEQ) issued a Notice of Corrective Action regarding the

wastewater spill at the Samsung Austin Semiconductor LLC. (SAS) of the subsidiary of Samsung Electronics' DS Division, and no

ﬁnancial sanctions such as ﬁnes were imposed as of the reporting date.

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Water intake Water discharge

Total amount of

intake

Water intake from third-party sources

(local governments, water utility

companies, etc.)

Direct intake

Total amount of

discharge

Direct discharge

into freshwater

ecosystems

Treatment and

discharge by third-

party agencies

Amount of water

used

Amount of water

reused

Basins

Region

Surface water Underground water Surface water Underground water

2021 2022 2021 2022 2021 2022 2021 2022 2021

2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022

Korea

1,000

tonnes

121,272 130,959 121,026 130,664 - - - - 246 295 97,720 103,786 64,974 63,633 32,746 40,153 23,552 27,171 64,787 86,331

4 including

the Han River

China

1,000

tonnes

18,716 18,733 18,716 18,733 - - - - - 15,327 15,324 - - 15,327 15,324 3,389 3,409 22,271 22,917

3 including

the Huang He

River

Europe

1,000

tonnes

208 365 205 329 - - - - 3 36 97 224 - - 97 224 111 142 3 -

2 including

the Danube

River

Russia

1,000

tonnes

100 56 100 56 - - - - - 31 30 - - 31 30 68 26 44 23

The Volga

River

Southeast Asia

1,000

tonnes

11,977 10,901 11,977 10,901 - - - - - 9,729 8,541 203 213 9,526 8,328 2,248 2,361 2,729 2,555

4 including

the Hong

River

Southwest Asia

1,000

tonnes

426 493 426 493 - - - - - 54 35 - - 54 35 372 458 215 199

2 including

the Ganges

River

North America

1,000

tonnes

10,380 10,734 10,380 10,734 - - - - - 7,654 7,894 - - 7,654 7,894 2,727 2,840 3,824 4,557

4 including

the Lower

Colorado

River

Central and

South America

1,000

tonnes

334 381 25 14 - - - - 309 367 117 115 100 96 17 19 217 267 13 8

2 including

the Amazon

River

Africa

1,000

tonnes

247 188 247 188 - - - - - 226 169 - - 226 169 22 19 61 -

2 including

the Nile River

Total

1,000

tonnes

163,660 172,811 163,102 172,113 - - - - 558 698 130,955 136,118 65,276 63,942 65,679 72,176 32,706 36,691 93,949 116,590

Available Water Resources by Region

1. Relevant ﬁgures changed due to the correction of direct underground water intake in 2021

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Performance by Division

Supply chain management

DX DS Total

2021 2022 2021 2022 2021 2022

Comprehensive supplier evaluation

Suppliers evaluated

% 97 91 82 83 93 89

Suppliers rated outstanding

% 65 59 77 74 68 62

Suppliers with ISO 14001 certification

% 88 90 89 92 88 90

Suppliers with OHSAS 18001 certification % 45

56 67 47 50

Supplier Training

Participating companies Companies 535 552 376 501 911 1,053

Participating individuals Persons 6,641 8,677 12,084 12,230 18,725 20,907

Supply chain work environment

management

Third party-audited first-tier suppliers Companies 84 93 24 28 108 121

1. All suppliers, excluding those registered for less than a year, evaluated in 8 areas

2. Higher score taken into consideration if evaluated for both DX and DS

3. ISO 14001 or equivalent certiﬁcation required in the Standard Supplier Agreement

4. Including 12 SA8000-certiﬁed suppliers

5. Including 23 SA8000-certiﬁed suppliers

Environment

DX DS Total

2021 2022 2021 2022 2021 2022

GHG emissions from

business sites

1,000 tonnes CO

e 1,790 366 15,610 14,687 17,400 15,053

Direct emissions 1,000 tonnes CO

e 263 254 7,341 5,718 7,604 5,972

Indirect emissions 1,000 tonnes CO

e 1,527 112 8,269 8,969 9,796 9,081

Other indirect emissions 1,000 tonnes CO

e 109,951 14,764 124,715

Energy consumption at

business sites

GWh 4,396 4,327 27,926 30,850 32,322 35,177

Electricity GWh 3,143 3,067 22,624 25,249 25,767 28,316

Others GWh 1,253 1,260 5,302 5,601 6,555 6,861

Renewable energy

consumption

GWh 556 2,856 4,722 5,849 5,278 8,704

Transition to renewable

energy

% 18 93 21 23 20 31

Waste generated Tonnes 348,427 329,861 976,545 1,083,504 1,324,972 1,413,365

General waste Tonnes 290,851 274,126 612,902 657,803 903,753 931,929

Hazardous waste

Tonnes 57,576 55,735 363,643 425,701 421,219 481,436

Water intake 1,000 tonnes 19,392 18,822 144,269 153,988 163,660 172,811

Municipal water

(surface water)

1,000 tonnes 18,833 18,124 144,269 153,988 163,102 172,113

Underground water

1,000 tonnes 558 698 0 0 558 698

Chemicals consumption

at business sites

1,000 tonnes 8 6 512 572 520 578

1. Market-based GHG emissions that reﬂect renewable energy use

2. Based on the monitoring standards of individual countries where our business sites are located

3. Relevant ﬁgures changed due to the correction of direct underground water intake in 2021

4. Scope of data collection: Korea

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Sustainability Value Creation

In order to quantitatively measure the positive and negative effects of our sustainability activities, we have

utilized the True Value method of KPMG since 2016. We also developed a set of indicators based on the results

of our research on the economic value of our socioeconomic activities to convert the measured effects

into monetary value. Our sustainability value consists of 1) financial value, 2) socioeconomic value, and 3)

environmental value, which are marked with + (positive) or – (negative).

Sustainability Value in 2022

We have continually monitored the latest global trends in socioeconomic value measurement research as

an extension of our efforts to more accurately assess the value of our sustainability activities. As a result,

we began to include wages and taxes, GHG emissions reduction in the product use stage, etc., in the set of

indicators to measure our socioeconomic value in 2023. Our total sustainability value created from January

1 to December 31, 2022, stands at around KRW 116.88 trillion. Our ﬁnancial value reaches KRW 55.65 trillion,

a 39% increase compared to 2021. Our socioeconomic value stands at KRW 61.23 trillion incurred due to a

drastic rise in the amount of corporate tax paid (KRW 13 trillion) and wages and welfare beneﬁts paid to our

employees (KRW 37.61 trillion). In 2023, our ﬁnancial value is projected to decrease substantially due to the

global economic recession and industry stagnation. The drawback of the current measurement method is that

the sustainability value is heavily inﬂuenced by changes in the ﬁnancial value. As such, we will continue to

strive to advance the measurement method by monitoring and analyzing related research trends.

Sustainability Value in 2022

55.65

10.53

37.61

116.88

0.99

0.44

0.0001

-1.34

-0.001

-0.004 0

Financial

value

Socioeconomic

value

Environmental

value

Development of

local communities

GHG emissions reduction

in the product use stage

GHG emissions

Impacts on the atmospheric

environment

Impacts on aquatic

ecosystems

Impacts of waste on

the environment

True Value

Government

Net income

Investor value

Employees

Supplier support

1. G. Psacharopoulos and H.A. Patrinos, Returns to investment in education: a further update (2004)

2. EPA, Technical update of the social cost of carbon for regulatory impact analysis (2013)

3. EEA, Revealing the cost of air pollution from industrial facilities in Europe (2011), Transportation Cost and Beneﬁt Analysis II – Air

Pollution Costs, Victoria Transport Policy Institute (2011)

4. TruCost PLC, Natural capital at risk: the top 100 externalities of business (2013)

5. A. Rabl, J. V. Spadaro and A. Zoughaib, Environmental impacts and costs of solid waste: a comparison of landﬁll and incineration (2009)

* KRW 1,267 per USD and KRW 1,351 per euro based on the exchange rates on December 30, 2022

Value Measurement Methods

Category Type

Calculation Method

Financial value Benefit Net income of the year

Socioeconomic

value

Government support Benefit Corporate taxes paid to the government

Investor value Benefit Dividends and interest paid to investors and creditors

Employee support Benefit Wages and welfare benefits paid to employees

Supplier support Benefit Based on the amount of support through the Coprosperity Fund

Development of local

communities

Benefit

Donations for the resolution of individual communities’ issues

Calculation of the ROI (118%) of educational project

investment costs

Environmental

value

GHG emissions reduction

in the product use stage

Benefit

Calculation of social benefits for GHG emissions reduction in

the product use stage

GHG emissions from

business sites

Cost Calculation of social costs concerning GHG emissions

Impacts on the

atmospheric environment

Cost

Calculation of social costs concerning air pollutant

(NOx, SOx, and PM) emissions

Impacts on aquatic

ecosystems

Cost

Calculation of social costs concerning water consumption

based on the water stress levels of individual regions where

our business sites are located

Impacts of waste on the

environment

Cost

Calculation of social costs concerning the burial, incineration,

and recycling of waste

(Unit: KRW 1 trillion)

* The sustainability value in 2022, measured using indicators of the previous years, stands at approximately KRW 66.27 trillion.

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Materiality Assessment

Every year we conduct the materiality assessment to identify key interests of our stakeholders and signiﬁcant issues that affect our business, and communicate the ﬁndings to our stakeholders in a transparent manner. We

conducted the 2023 materiality assessment at the headquarters level and at our subsidiaries in Europe adopting the method proposed by EU's Corporate Sustainability Reporting Directive (CSRD). The double materiality

assessment as deﬁned by CSRD takes into consideration both the level of social and environmental impacts of corporate activities and the impact of sustainability issues such as climate change and inequality on corporate value.

 Assessing the positive and negative impacts of the assessed company on the

environment and society in the short term and mid-to-long term and related

sustainability issues

 Assessing the social and environmental impact of individual material issues

through the quantification of the sustainability issues covered by the media

recently, competitors’ material issues, analysis of various international ESG

standards, and surveys of internal and external stakeholders

- Analyzing media reports and competitors’ issues

- Analyzing international standards (GRI, ESRS, UN SDGs)

- Conducting employee surveys

- Conducting external stakeholder surveys

 Creating a comprehensive list of material issues including those already

identified in the previous sustainability report and new global issues

 Identifying 21 issues based on global sustainability standards (GRI, UN SDGs,

TCFD, SASB), domestic indicators (K-ESG, KCGS), and analysis of the latest

industry trends

Pooling Material Issues Assessing Social and Environmental Impact

 Assessing the financial impact of sustainability issues on the assessed company’s

economic value creation

 Assessing the financial impact based on the findings from the analysis of ESG

information by key financial institutions and rating agencies, shareholders’ and

investors’ interests, and internal cost and profit analysis

- Analyzing ESG-related inquiries by financial institutions

- Analyzing ESG information disclosure by financial institutions and rating

agencies

- Conducting employee surveys and external stakeholder surveys

Assessing Financial Impact

Materiality Assessment Process

The double materiality assessment consists of three stages including surveys of internal and external stakeholders, to identify material issues based on their social and environmental as well as ﬁnancial impacts.

 Climate action and energy management

 Sustainable supply chain

 Talent development and quality of life

 Human rights management

 Circular economy

 Water resource management

 Corporate governance

 Diversity and inclusion

 Community development and corporate citizenship

 Occupational safety and health

 Compliance and ethics

 Waste management

 Product safety and quality

 Privacy protection, data security,

and freedom of speech

 Air pollution management

 Stakeholder engagement

 Transparent information disclosure

 Biodiversity

 Accessibility

 Harmful substance management

 Responsible technology use, marketing,

and customer relations management

Double Materiality

Risks and opportunities that

affect financial value

Impact on the environment

and society

Social and

Environmental Materiality

Financial

Materiality

Issue Pool

Area Issue

Social and

environmental

impact

Financial

impact

UN SDGs Response Activities

Sections for

reference

Social

Human rights

management

● ●

We ensure that current and potential employees at all of our business

sites are guaranteed equal opportunities. We do not discriminate against

employees or applicants based on their gender, race, ethnicity, nationality,

religion, age, marital status, sexual orientation, sexual identity and

manifestation, social status, disability, pregnancy, military service status,

genetic information, political inclination, etc.

· Expanding employment opportunities for persons with disabilities

· Operating an the in-house advisory group of persons with disabilities for

accessibility improvement

· Launching of Operating Hopes and Stars Forest, a subsidiary-type

workplace for employees with disabilities

· Supporting Employee Resource Group (ERG) activities

Diversity,

Equality, and

Inclusion

Sustainable

supply chain

● ●

We strive to help our suppliers to improve their performance in

human rights, environment, and health and safety as well as their

business competitiveness, to make our supply chain responsible

and environmentally aware.

 ESG diagnosis and consulting for suppliers

 Working environment and climate change management for suppliers

 Establishment and operation of a grievance handling system for

suppliers

 Partner collaboration activities such as Partner collaboration academy

and funding support

Sustainability

in Supply Chain

Talent

development

and quality of

life

● ●

We strive to create an environment where our employees can work

without worrying about health and safety. We also focus on minimizing

the impact of harmful chemical substances on the environment and our

employees’ health.

· Regular physical examinations for employees

 Access to a Range of Capacity-Building Programs, Opportunities to

Switch Jobs Internally

 The UniverSE

 SCI(Samsung Culture Index)

Human Rights,

Human

Resource

Management

Environmental

Climate action

and energy

management

● ●

We identify and prioritize climate change issues based on their business

impact and probability of occurrence, analyze risks and opportunities, and

establish response measures accordingly. We strive to reduce our footprint

by investing in GHG emissions reduction equipment and optimizing

operations of our equipment.

 Reducing energy for manufacturing and process gases

 Expanding use of renewable energy

 Identifying and implementing projects of GHG emissions reduction

 Monitoring and managing suppliers' GHG emissions

 Capturing carbon and reducing particulate matter

Climate Action,

Clean Tech

Ecosystem

Circular

economy

● ●

We reuse and recycle resources to ensure resource circularity and a

minimized environmental impact. We strive to expand the use of recycled

materials, improve product durability, reduce packaging sizes, minimize

the sourcing mining of new resources, and extend product lifecycles.

· Applying recycled and recyclable materials in products

· Researching on technologies contributing to a circular economy

· Expanding e-waste collection system

· Engaging in responsible minerals sourcing

Circular

Economy,

Sustainability

in Supply Chain

Water

resource

management

● ●

We ensure water resource efficiency by reducing water use and reusing

and recycling water. Our in-house standards for wastewater treatment

are more stringent than the legal requirements of individual countries. We

strive to minimize our impact on water resources.

· Monitoring and improving aquatic ecosystems

· Attaining Alliance for Water Stewardship (AWS) Platinum Certification

Sustainability

in Operations

Materiality Assessment Results

The issues of materiality identiﬁed through the 2023 double materiality assessment were climate action and energy management, sustainable supply chain, talent development and quality of life , human rights management,

circular economy, water resource management, and diversity and inclusion.

*Materiality:

●

High impact

●

Medium impact

●

Low impact

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Alignment with UN SDGs

Adopted at the United Nations General Assembly in September 2015, the Sustainable Development Goals (SDGs) aim to mobilize the international community’s efforts to establish a sustainable world by engaging in community

outreach, environmental preservation, and inclusive economic growth activities. The program began in earnest in 2016 with the aim of achieving the goals by 2030. As a responsible corporate citizen, we have strived to help

advance the achievement of the SDGs through our business operations. We have identiﬁed the goals with the highest relevance to our business areas and promote various activities according to the goals.

SDGs Objectives Activities Sections for reference

We help youth around the world develop the capabilities required to build a better future

based on our ICT expertise and knowledge.

· Samsung Solve for Tomorrow and Samsung Innovation Campus

· Samsung SW Academy for Youth and Samsung Junior SW Academy

· Samsung Stepping Stone of Hope

Empowering Communities

Based on our belief that access to equal opportunities is the key to economic growth,

political stability, and positive social change, we strive to offer women around the world

various channels to improve their lives.

· Female leadership goals

· Next generation female leader ship workshops

· Global self-diagnoses of gender equality

· Monitoring of gender pay gap

Diversity, Equity, Inclusion

We strive to expand our use of renewable energy to combat climate change. We take a

variety of different measures at our global business sites, from solar panel and geothermal

unit installation to renewable energy supply contracting and green pricing.

· Joining RE100

· Participating in ACEC

· Expanding renewable energy use

Climate Action

We strive to improve the accessibility of our IT devices and technologies to ensure that all

individuals benefit equally from our innovations. We comply with cybersecurity-related

international laws and regulations to protect consumers and maintain world-class product

and service security.

· Developing products based on accessibility technologies

· Reinforcing security based on the Samsung Knox platform

Tech for All

We take action to minimize any possible adverse impacts of our business sites on

biodiversity. We strive to preserve ecosystems by identifying endangered flora and fauna

near our business sites and engaging in activities to protect their habitats.

· Preserving river ecosystems

· Less microfiber cycle and filter in Washer

Sustainability in Operations,

Clean Tech Ecosystem

We share our advanced technologies to contribute to the resolution of a diverse range

of social issues (education, healthcare, employment, and environment). We also operate

programs that have been optimized for different local communities in cooperation with

stakeholders.

· Samsung Global Goals app

· Participation in the government-led Industrial AI Standardization Forum

· Samsung Software Developer Conference

· Samsung Future Technology Cultivation Initiative

Business Sustainability, Tech for All

*See “Materiality Assessment” for details on SDG-aligned activities linked to the issues of materiality

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Appendix

118

Independent Assurance Report

119

Veriﬁcation Statement on Scope 1,2

Greenhouse Gas Emisson

120

Veriﬁcation Statement on Scope 3

Greenhouse Gas Emisson

121

GRI Index

125

TCFD Index

127

SASB Index

128

About This Report

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Samsung Electronics Sustainability Report 2023

Veriﬁcation Target

Korean Foundation for Quality (hereinafter “KFQ”) has conducted the verification of “2022 Report on Quantity of emitted

Greenhouse gas Consumption (hereinafter ‘Inventory Report”) for Samsung Electronics Co..,Ltd (hereinafter “Company”)

Veriﬁcation Scope

In this verification, domestic corporations and 25 overseas subsidiaries under operational control of Samsung Electronics

Co.,Ltd , and reported emission is including Scope 1 and Scope 2 emission.

Veriﬁcation Criteria

The verification process was based on ‘Rules for verification of operating the greenhouse gas emission trading scheme

(Notification No. 2022 279 of Ministry of Environment)’, GHG Protocol Scope 2 Guidance’ and ‘ISO 14064-1,32006’

Level of Assurance

The Verification has been planned and conducted as the ‘Rules for verification of operating the greenhouse gas emission

trading scheme’, and the level of assurance for verification shall be satisfied as reasonable level of assurance. And it

confirmed through the internal review whether the process before the verification conducted effectively.

Veriﬁcation Limitation

Accuracy and completeness of emission data reported in the ‘GHG Inventory’ are subject to inherent limitations due to their

nature and the methodology used in determining, calculating and estimating such data.

Veriﬁcation Opinions

Through the verification process according to the ‘ISO 14064-32006’ KFQ could obtain reasonable basis to express following

conclusion on the Greenhouse Gas Emission Report

1) 2022 Samsung Electronics Co.,Ltd ., Greenhouse Gas Emission Report was prepared against ‘Samsung Electronics Co.,Ltd

., Greenhouse Gas Inventory Guideline’ developed based on the ‘Guidelines for GHG emission reporting and certification of

GHG emission trading scheme’, GHG Protocol Scope 2 Guidance’ and ‘ISO 14064-12006’

2) As a result of materiality assessment on 2022 domestic Greenhouse Gas Emission, material discrepancy is less than the

criteria of 2.0% for the organization which emits more than 5,000,000 tCO

eq/year in accordance with the requirements

of the ‘Guidelines of verification for Greenhouse gas emission trading scheme’.

3) For the 25 overseas subsidiaries, document review was conducted for entire 25 subsidiaries as well as Company self

assessment. The result of material discrepancy is less than 2.0%.

4) The efficiency of process emission reduction technology that affects the calculation of greenhouse gas emissions has to

reflect the values guaranteed by the government and third parties. However, the efficiency was calculated based on the

Company’s' own methodology, and errors are not included in the verification opinion.For the overseas subsidiaries, each

national net caloric value and electricity emission factor were preferentially used but net caloric value and electricity

emission factor were adopted from IPCC Guidelines or Korean Energy Law Enforcement Regulation in any change of these

parameters or factors. Also, in case of buying credits(ex. RECs) in the market, the offset credit is applied to evaluate the

emission and record separately in market base section.

5) Except unconsidered emission source in the ‘Samsung Electronics Co.,Ltd , Greenhouse Gas Inventory Guideline’, material

error, omission or insignificant issues was not found in 2022 Samsung Electronics Co.,Ltd ., Greenhouse Gas Emission

Veriﬁcation Statement on 2022 Scope1, 2 Greenhouse Gas Emisson Report

GHG Emission veriﬁcation results

(Unit: ktCO

eq)

Division

Total Domestic Overseas

Location

based

Market

based

Location

based

Market

based

Location

based

Market

based

Scope 1 5,972 5,972 5,100 5,100 872 872

Scope 2 13,920 9,081 9,830 8,935 4,090 146

Total 19,892 15,053 14,930 14,035 4,962 1,018

DX GHG Emission veriﬁcation results

(Unit: ktCO

eq)

Division Location based Market based

Scope 1 254 254

Scope 2 1,681 112

Total 1,935 366

DS GHG Emission veriﬁcation results

(Unit: ktCO

eq)

Division Location based Market based

Scope 1 5,718 5,718

Scope 2 12,239 8,969

Total 17,957 14,687

April 18

2023

CEO Ji Young Song

Korean Foundation for Quality

Organization

Samsung Electronics Co..,Ltd

Emission calculation period

The emission caculation period is from January 1 to December 31, 2022

 Total emissions may differ ±1 ktCO

eq due to rounding differences in the summation process.

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Organization

Samsung Electronics Co..,Ltd

Emission calculation period

The emission caculation period is from January 1 to December 31, 2022

Company Scope3 Emissions veriﬁcation Results

(Unit: ktCO

eq)

Category Scope3 Emissions

Purchased goods & services 14,596

Capital goods 1,508

Fuel-and Energy-Related Activities Not Included in Scope1 or Scope2 900

Upstream Transportation and Distribution 3,965

Waste Generated in Operations 246

Business Travel 87

Employee Commuting 303

Upstream Leased Assets 107

Downstream Transportation and Distribution 366

Processing of sold products 142

Use of Sold Products 101,236

End-of-Life Treatment of Sold Products 1,206

Downstream Leased Assets 1

Franchise N/A

Investments 52

Total 124,715

 Data used for calculating suppliers' emissions - in the categories of Purchased goods & services, Capital goods, and Processing of sold

products - are based on 2021.

Veriﬁcation Statement on 2022 Scope3 Greenhouse Gas Emisson Report

Veriﬁcation Target

Korean Foundation for Quality (hereinafter ‘KFQ’) has been engaged by  Samsung Electronics Inc.  to independently verify

its 2022 Scope3 Greenhouse Gas Emissions and Energy consumption Report (hereinafter ‘GHG Inventory’). This verification

is for the purpose of a limited guarantee that Scope3 is free from material errors and distortions in technical content.

Veriﬁcation Scope

The verification of other indirect emissions (Scope 3) was carried out in the self selected category according to the following

criteria.

* Verification Category: Purchased goods & services, Capital goods, Fuel and Energy Related Activities Not Included in Scope1 or

Scope2, Upstream Transportation and Distribution, Waste Generated in Operations, Business Travel, Employee Commuting, Upstream

Leased Assets, Downstream Transportation and Distribution, Processing of Sold Products, Use of Sold Products, End of Life Treatment

of Sold Products, Downstream Leased Assets, Investments

Veriﬁcation Criteria

Technical Guidance for Calculating Scope 3 Emissions, Carbon Emission Factor (Korea Environmental Industry Institute),

World Resource Institute (WRI), GHG Emissions Calculating tool emission factor, National LCI database information network

and overseas information network, etc.

Level of Assurance

The verification was performed according to the procedure stipulated in ISO 14064-3, and through the verification and

cross validation of the Scope3 emission calculation results, there is limited assurance that the data applied to the emission

calculation is accurate and that the emission is calculated appropriately according to the verification criteria above. We

planned and conducted verification to obtain.

Veriﬁcation Limitation

This verification is not for the purpose of verifying the validity of the calculation criteria set by the company itself. Assurance

results contain inherent limits of uncertainty inherent in the company's own calculation standards. Depending on our own

calculation standards, significant differences may occur in the emission calculation results, which may affect comparability.

Veriﬁcation Opinions

Through the verification process according to the ‘ISO 14064-32006’ KFQ could obtain reasonable basis to express following

conclusion on the Greenhouse Gas Emission Report.

1) Scope 3 emissions for 2022 of Samsung Electronics Co., Ltd. were properly calculated according to verification standards.

2) For Scope 3 emissions, no significant errors or omissions were found, except for emissions information that was not

considered within the scope of the selected category. In the process of estimating the emissions, it was confirmed that the

estimates were reasonably based on objective grounds so that the emissions were not underestimated or overestimated

when estimating some activity data.

3) The standards set, estimated/assumed, and the relevant process when calculating emissions were transparently reflected

in the internal calculation process.

4) No material errors, omissions or inappropriate matters were found in the 2022 Scope 3 emission information and data

of Samsung Electronics Co., Ltd., except for emissions information not considered in the Samsung Electronics Co., Ltd.

greenhouse gas calculation guidelines.

April 21

2023

CEO Ji Young Song

Korean Foundation for Quality

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GRI 3 Universal Standards

Disclosures on

Material Topics

3-1 Processes to determine material topics



114-115

3-2 List of material topics



114-115

3-3 Management of material topics



114-115

GRI 200 Economy

Economic

Performance

201-1 Direct economic value generated and distributed



101

201-2

Financial implications and other risks and

opportunities due to climate change



124

201-3

Define benefit plan obligations and other retirement

plans



Refer to the Annual Business

Report

Market Presence

202-1

Ratios of standard entry level wage by gender

compared to local minimum wage



43, 60,

Indirect

Economic

Impacts

203-1 Infrastructure investments and services supported



87-92

203-2 Significant indirect economic impacts



87-92

Procurement

Practices

204-1 Proportion of spending on local suppliers



Anti-corruption

205-1 Operations assessed for risks related to corruption



97-99

205-2

Communication and training about anti-corruption

policies and procedures



97-99

205-3 Confirmed incidents of corruption and actions taken



Refer to the Annual Business

Report

Anti-

competitive

Behavior

206-1

Legal actions for anti-competitive behavior, anti-trust,

and monopoly practices



Refer to the Annual Business

Report

Tax

207-2 Tax governance, control, and risk management



Refer to the Website

207-3

Stakeholder engagement and management of

concerns related to tax



Refer to the Website

207-4 Country-by-country reporting



101

GRI Index

GRI Standards No. Disclosures Status Page Notes

GRI 2 Universal Standards

The organization

and its reporting

practices

2-1 Organizational details



5, 6

2-2

Entities included in the organization’s sustainability

reporting



Refer to the Annual

Business Report

2-3 Reporting period, frequency and contact point



128

2-4 Restatements of information



Disclose the changes to the

report

2-5 External assurance



118

Activities and

workers

2-6 Activities, value chain and other business relationships



4-5, 6,

74-86

Refer to the Annual Business

Report

2-7 Employees



103-

104

2-8 Workers who are not employees



103

Governance

2-9 Governance structure and composition



94-96

2-10

Nomination and selection of the highest governance

body



94-96

2-11 Chair of the highest governance body



94-96

2-12

Role of the highest governance body in overseeing the

management of impacts



7, 94-

2-13 Delegation of responsibility for managing impacts



2-14

Role of the highest governance body in sustainability

reporting



2-15 Conflicts of interest



94-96

2-16 Communication of critical concerns



94-96

2-17 Collective knowledge of the highest governance body



2-18

Evaluation of the performance of the highest

governance body



94-96

2-19 Remuneration policies



Refer to the Annual

Business Report

2-20 Process to determine remuneration



Refer to the Annual

Business Report

2-21 Annual total compensation ratio



We made the decision to

keep this information private

based on the necessities of

our company.

Strategy,

Policies, and

Practices

2-22 Statement on sustainable development strategy



2-23 Policy commitments



97-99 Refer to the Website

GRI Standards No. Disclosures Status Page Notes

Strategy,

Policies, and

Practices

2-24 Embedding policy commitments



16, 24,

42, 43,

47, 59,

66, 71,

76, 79,

2-25 Processes to remediate negative impacts



43, 48

2-26 Mechanisms for seeking advice and raising concerns



97-99

2-27 Compliance with laws and regulations



110 Refer to the website

2-28 Membership associations



7, 40,

Stakeholder

Engagement

2-29 Approach to stakeholder engagement



2-30 Collective bargaining agreements



43, 77

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GRI Index

GRI Standards No. Disclosures Status Page Notes

GRI 300 Environment

Materials

301-1 Materials used by weight or volume



We made the decision

to keep this information

private based on the

necessities of our company.

301-2 Recycled input materials used



24-26,

108-

109

301-3 Reclaimed products and their packaging materials



108-

109

Energy

302-1 Energy consumption within the organization



22, 108

302-2 Energy consumption outside of the organization



We made the decision

to keep this information

private based on the

necessities of our company.

302-3 Energy intensity



108

302-4 Reduction of energy consumption



20-24

302-5

Reductions in energy requirements of products and

servcies



10-13,

16, 21,

Water and

Effluents

303-1 Interactions with water as a shared resource



35-37,

110-111

303-2 Management of water discharge-related impacts



35-37

303-3 Water withdrawal



35-37,

110-111

303-4 Water discharge



35-37,

110-111

303-5 Water consumption



35-37,

110-111

Biodiversity

304-1

Operational sites owned, leased, managed in, or adjacent

to, protected areas and areas of high biodiversity value

outside protected areas



304-2

Significant impacts of activities, products, and services

on biodiversity



304-3 Habitats protected or restored



304-4

IUCN Red List species and national conservation list

species with habitats in areas affected by operations



Emissions

305-1 Direct (Scope 1) GHG emissions



108, 111

305-2 Energy indirect (Scope 2) GHG emissions



108, 112

305-3 Other indirect (Scope 3) GHG emissions



108,

113

305-4 GHG emissions intensity



108

305-5 Reduction of GHG emissions



17, 21,

23-24

305-6 Emissions of ozone-depleting substances (ODS)



108,

110

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other

significant air emissions



110

Waste

306-1 Waste generation and significant waste-related impacts



25-29,

108-

109

306-2 Management of significant waste-related impacts



25-29,

108-

110

306-3 Waste generated



25-29,

108-111

306-4 Waste diverted from disposal



25-29,

32-33,

110

306-5 Waste directed to disposal



25-29,

32-33,

111

Supplier

Environmental

Assessment

308-1

New suppliers that were screened using environmental

criteria



74, 84,

105

308-2

Negative environmental impacts in the supply chain and

actions



GRI Standards No. Disclosures Status Page Notes

Our Company AppendixApproach to Sustainability Facts & Figures PrinciplePlanet

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GRI Standards No. Disclosures Status Page Notes

GRI 400 Society

Employment

401-1 New employee hires and employee turnover



103-

104

401-2

Benefits provided to full-time employees that are not

provided to temporary or part-term employees



57-58

401-3 Parental leave



104

Occupational

Health and

Safety

403-1 Occupational health and safety management system



50-53

403-2

Hazard identification, risk assessment, and incident

investigation

50-53

403-3 Occupational health services



50-53

403-4

Worker participation, consultation, and communication

on occupational health and safety



50-53

403-5 Worker training on occupational health and safety



50-53

403-6 Promotion of worker health



50-53

403-7

Prevention and mitigation of occupational health and

safety impacts directly linked by business relationships



50-53

403-8

Workers covered by an occupational health and safety

management system



50-53

403-9 Work-related injuries



104

403-10 Work-related ill health



Training and

Education

404-1 Average hours of training per year per employee



105

404-2

Programs for upgrading employee skills and transition

assistance programs



54-56

404-3

Percentage of employees receiving regular performance

and career development reviews



Diversity

and Equal

Opportunity

405-1 Diversity of governance bodies and employees



59-60

405-2 Ratio of basic salary and remuneration of women to men



Non-

discrimination

406-1 Incidents of discrimination and corrective actions taken



Freedom of

Association

and Collective

Bargaining

407-1

Operations and suppliers in which the right to freedom

of association and collective bargaining may be at risk



43-44,

Child Labor

408-1

Operations and suppliers at significant risk for incidents

of child



44, 80,

GRI Index

Forced or

Compulsory

Labor

409-1

Operations and suppliers at significant risk for incidents

of forced or compulsory labor



42, 44,

74, 80

Security

Practices

411-1

Security personnel trained in human rights policies or

procedures



N/A

Local

Communities

413-1

Operations with local community engagement, impact

assessments, and development programs



33, 45,

47, 87-

Supplier Social

Assessment

414-1 New suppliers that were screed using social criteria



105

414-2

Negative social impacts in the supply chain and actions

taken



74-82

Public Policy

415-1 Political contributions

Use of company funds for

political contributions

is prohibited by the

corporate Code of

Conduct

Customer Health

and Safety

416-2

Incidents of non-compliance concerning the health and

safety impacts of products and services

Refer to the Annual

Business Report

Marketing and

Labeling

417-1

Requirements for product and service information and

labeling

Refer to the Website

417-3

Incidents of non-compliance concerning marketing

communications

Refer to the Annual

Business Report

GRI Standards No. Disclosures Status Page Notes

· Statement of Use: Samsung Electronics has reported in accordance with the GRI standards for the covered period (from

January to December, 2022) .

· GRI 1 used: GRI 1 : Foundation 2021

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Samsung Electronics Sustainability Report 2023

TCFD Index

Category Our Performance Page

Governance a) Describe the board's over-

sight of climate-related

risks and opportunities.

We believe all environmental issues, including climate change, directly affect our business operations and financial performance. As such, these issues are supervised by the Board of Direc-

tors, our overarching decision-making body. The Board of Directors approves all strategies and goals related to environmental management, oversees their latest developments, and regu-

larly reviews our relevant activities through the Sustainability Committee comprised of independent directors. Our corporate environmental strategy encompassing mid-to-long-term climate

actions and resource circularity goals was passed by the Sustainability Committee in September 2022.

P.20, P.96,

P.124

CDP: C1

b) Describe management's

role in assessing and man-

aging climate-related risks

and opportunities.

The CEO establishes environmental management plans and reviews implementation progress through the Sustainability Council composed of the top executives of relevant units. We continue

to reinforce our environmental management capacity by strengthening environmental indicators in the performance evaluations of our business units. In addition, the Environmental Man-

agement Task Force defines action items/projects - including those related to climate action - and monitors progress. Each business manages and monitors their environmental issues on site

through their respective EHS meetings. The Eco-Council establishes strategies for developing environmentally responsible products while ensuring their quality.

P.20,

P.96,

P.124

CDP: C1

Strategy a) Describe the climate-re-

lated risks and opportuni-

ties the organization has

identified over the short,

medium, and long term.

The risks and opportunities posed by climate change are affecting our products and services, as well as our manufacturing processes, supply chain, R&D, and other business activities. Sam-

sung Electronics monitors the risks arising from its global operations in accordance with risk management processes and manuals in each field, including environmental safety, climate change

and energy, and compliance. To understand the financial impact of risks and opportunities arising from climate change, Samsung Electronics categorizes risk factors into transition risks and

physical risks and analyzes the risks; while and opportunities arising from them. In the short term, we see rising carbon credit prices, extreme weather events, and the introduction of high-ef-

ficiency technologies as potential risks, securing carbon credits and reducing energy costs are recognized as opportunities. In the medium term, we anticipate changing consumption patterns

and expansion of renewable energy use as opportunities, and physical impacts such as rising temperatures as long-term risks. For long-term risks, we establish response plans in line with

the Nationally Determined Contributions (NDCs) under the Paris Agreement, the Representative Concentration Pathways (RCP) scenarios of the International Panel on Climate Change (IPCC)

assessment report, and the International Energy Agency's (IEA) energy technology outlook.

P.22-23,

P.124

CDP: C2

Transition Risk and Opportunity

Physical Risk

and

Opportunity

Short-

Term

· Emission allowance prices falling due to the post-pandemic economic

slowdown - dropped to KRW 11,550 on the same day (April 27, 2023)

* Refer to Annual Business Report

· Minimize purchases with greenhouse gas reduction activities

· Mitigate carbon price sensitivity by securing external carbon

credits

· Increased investment in high-efficiency facilities, greenhouse gas reduction facil-

ities, and water recycling facilities

· Reduce workplace GHG emissions and reduce energy costs

· Create business opportunities such as energy management

systems

· High-efficiency and environmental product certification costs increased

· Sales of low-energy efficiency products decreased

· R&D investment in high-efficiency and environmentally responsible products increased

· Increase sales of launching high-efficiency, environmentally

responsible products

· Consumers’ awareness raised

· Production costs increased due to a short-term electricity price spike

· Customers’ demand for renewable energy

· Electricity expenses reduced through renewable energy sup-

ply contracts and participation in power generation projects

· Investment in environmental/safety/disaster prevention equipment increased

· Costs related to restoration and business opportunity loss in the event of natural

disasters increased

· Reducing insurance premiums by investing in facilities to

respond to natural disasters

· Creating new business opportunities such as national disaster

networks and safety communication networks

· Increased costs of operational costs such as cooling and heating facilities

· Increased investment in air-pollution prevention facilities

· Business expanded and sales increased (e.g., high-efficiency

air conditioners, air purifiers, dryers)

Climate Change Risks and Opportunities

❶

GHG emissions trading scheme

❷

High-efficiency technology

development

❸

Customer consumption pattern

changes

❹

Expansion of renewable energy

consumption

❺

Natural disasters

(e.g., storms, floods)

❻

Temperature rise and yellow sand

dust pollution

Financial Impacts of Climate Change Risks Financial Impacts of Climate Change Opportunities

Short-

Term

Mid-

Term

Mid-

Term

Short-

Term

Long-

Term

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Samsung Electronics Sustainability Report 2023

TCFD Index

Category Our Performance Page

Strategy b) Describe the impact of climate-related risks

and opportunities on the organization’s busi-

nesses, strategy, and financial planning.

As climate change continues to have adverse effects around the world, many countries are strengthening their relevant regulations. The costs related to natural disaster recovery

and lost business opportunities are expected to rise in line with the aggravation of climate change. We continue to make investments in the areas of environment and safety and

disaster-proof equipment to preempt the impacts of natural disasters as much as possible, which in turn is expected to decrease our insurance premiums.

As a company subject to Korea’s emissions trading scheme, we project that our costs for responding to reinforced GHG emissions regulations and renewable energy purchasing will

inevitably increase. In addition, failure to comply with global regulations and implement proper climate actions may compromise our brand value and adversely affect our sales.

P.124

CDP: C3.3,

C3.4

c) Describe the resilience of the organization’s

strategy, taking into consideration different

climate-related scenarios, including a 2°C or

lower scenario.

Climate risks are anticipated to have far-reaching effects through a set of highly complex channels. We strive to identify the socioeconomic impacts of climate change on our business

through various scenarios, which are classified into aggressive action scenarios that require our global stakeholders to reach more ambitious targets and passive action scenarios

that focus on maintaining the status quo.

In accordance with the aggressive action scenarios, products with low energy efficiency ratings are projected to decrease in sales in the long term, while environmentally responsible ,

high-efficiency products- including air conditioners, air purifiers, and dryers - are expected to record continued sales growth. To remain prepared for such scenarios, we plan to make

continued investments to develop ultra-low-power semiconductors and improve energy efficiency across our product categories. We will also take active measures to ensure GHG

emissions mitigation and the transition to renewable energy.

P.124

CDP: C3.2a,

C3.4

Risk

Management

a) Describe the organization’s processes for

identifying and assessing climate-related

risks.

Our climate risks concerning business operations, product planning, and industry trends are assessed regularly by related organizational units - including EHS, marketing, sales, and

compliance - based on the environmental management frameworks of ISO 14001 and ISO 50001. Individual business sites are required to enter their GHG data - including electricity,

fuel, and process gases - into the EHS System, and we review their changes on a monthly basis and analyze the causes of such changes. The organizational units in charge manage

GHG emissions of our business sites in Korea and other regions in an integrated manner. Annual third-party audits are conducted to ensure the credibility and alignment of emissions

data.

P.20

CDP: C2.1b,

C2.2

b) Describe the organization’s processes for

managing climate-related risks.

To manage climate risks, the corporate unit in charge EHS monitors our energy consumption, GHG emissions, and renewable energy use as well as the physical impacts of climate

change. Relevant issues affecting or expected to affect our business sites around the world are discussed at the EHS Council and other regularly convened consultative bodies to seek

optimal solutions.

The Sustainability Council discusses relevant risks and opportunities from a company-wide perspective and makes necessary decisions. The Eco-Council examines climate change-in-

duced business opportunities and shares the findings with pertinent organizational units for execution.

P.18, P.20

CDP: 2.2,

2.2a

c) Describe how processes for identifying,

assessing, and managing climate-related

risks are integrated into the organization’s

overall risk management.

Given the large amount of energy required in manufacturing semiconductors, the prices of emissions permit and renewable energy use are considered factors that directly affect our

business and are thus closely monitored. In addition, climate change-related regulations of individual countries are included in our company-wide risk management system since

they are likely to influence our business activities and reputation.

P.20, P.124

CDP: 2.2

Metrics and

Targets

a) Disclose the metrics used by the organization

to assess climate related risks and opportu-

nities in line with its strategy and risk man-

agement process.

To assess and manage the risks and opportunities related to climate change, we closely monitor metrics including GHG emissions, per-unit GHG emissions, energy consumption,

renewable energy use, and water consumption of individual business sites as well as the ratio of recycled materials used in products, amount of e-waste collected, and average power

consumption of products.

P.18,

P.20-24

CDP: C6, C7,

b) Disclose Scope 1 (direct emissions), Scope 2

(indirect emissions), and Scope 3 (miscella-

neous indirect scope) greenhouse gas (GHG)

emissions, and the related risks.

We disclose our Scope 1, 2, and 3 emissions via the Sustainability Report and CDP Report. P.108,

P.112

CDP: C6, C7,

c) Describe the targets used by the organization

to manage climate-related risks and oppor-

tunities and performance against targets.

Please refer to the targets of the New Environmental Strategy and relevant progress specified in the 2023 Sustainability Report. P.20

CDP: C4

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SASB Index

Code Accounting Metric Page and Comment

Product Security TC-HW-230a.1 Description of the approach to identifying and addressing data security risks in products P.66-70

Employee Diversity &

Inclusion

TC-HW-3 30a .1

Percentage of gender and racial/ethnic group representation for (1) management, (2) technical staff,

and (3) all other employees

P.103-104

Product Lifecyle

Management

TC-HW-410a.1 Percentage of products by revenue that contain IEC 62474 declarable substances

We comply with global regulations (EU RoHS, REACH, TSCA, etc.) and manage internal rules in line

with domestic and international standards. We conduct rigorous pre-inspection and follow-up

management of all parts and raw materials used in our products. Please refer to p. 42 herein for

our efforts to manage potentially hazardous substances.

TC-HW-410a.2 Percentage of eligible products that meet the EPEAT registration criteria or equivalent

· Computers: 54%

· Mobile phones: 95%

· Displays: 22%

TC-HW-410a.3 Percentage of eligible products that meet the ENERGY STAR® criteria

· Audio devices: 65.8%

· Computers: 99.4%

TC-HW-410a.4 Weight of end-of-life products and e-waste recovered, percentage recycled P.13, P.17, P.28, P.109

Supply Chain Management

TC-HW-430a.1

Percentage of Tier 1 supplier facilities audited in the RBA Validated Audit Process (VAP) or equivalent,

by (a) all facilities and (b) high-risk facilities

P.45, P.105

TC-HW-430a. 2

Tier 1 suppliers’ (1) non-compliance rate with the RBA Validated Audit Process (VAP) or equivalent and

(2) associated corrective action rate for (a) priority non-conformances and (b) other non-conformances

P.45

Materials Sourcing TC- HW- 4 40a.1 Description of risk management associated with the use of critical materials P.86

1) Based on sales in North America (US and Canada)

Code Topic Page and Comment

TC-HW-000.A Number of units produced by product category P. 27-29, 2022 Annual Business Report (II. Business Overview)

TC-HW-000.B Area of manufacturing facilities P.6

TC-HW-000.C Percentage of production from owned facilities P. 27-29, 2022 Annual Business Report (II. Business Overview)

Hardware

Sustainability Disclosure Topics and Accounting Metrics

Activity Metrics

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SASB Index

Code Accounting Metric Page and Comment

Greenhouse Gas Emissions

TC-SC-110a.1 (1) Gross global Scope 1 emissions and (2) amount of total emissions from perfluorinated compounds P.21, P.108, P.112

TC-SC-110a. 2

Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions

reduction targets, and an analysis of performance against those targets

P.15-17, P.21

Energy Management in

Manufacturing

TC-SC-130a.1

(1) Total energy consumption, (2) percentage of electricity delivered from grids, and (3) percentage

renewable

P.13, P.108

Water Management TC-SC-140a .1

(1) Total water withdrawn, (2) total water consumed, percentage of each in regions with High or

Extremely High Baseline Water Stress

P.35, P.110-111

Waste Management TC-SC-150a.1 Amount of hazardous waste from manufacturing, percentage recycled P.109, P.112

Employee Health and Safety

TC-SC-320 a.1

Description of efforts to assess, monitor, and reduce exposure of employees to human health hazards P.50-53

TC-SC-320 a. 2

Total amount of monetary losses as a result of legal proceedings associated with employee health and

safety violations

P. 501-502, 2022 Annual Business Report (XI. Other Information)

Recruiting & Managing a

Global & Skilled

Workforce

TC-SC-330 a.1 Percentage of employees that are (1) foreign nationals and (2) located offshore P.103-104

Product Lifecycle

Management

TC-SC- 410a .1 Percentage of products by revenue that contain IEC 62474 declarable substances

We comply with global regulations (EU RoHS, REACH, TSCA, etc.) and manage internal rules in line

with domestic and international standards. We conduct rigorous pre-inspection and follow-up

management of all parts and raw materials used in our products. Please refer to p. 42 herein for

our efforts to manage potentially hazardous substances.

TC-SC- 410a .2 Processor energy efficiency at a system-level: (1) servers, (2) desktops, and (3) laptops N/A

Materials Sourcing TC-S C- 4 40a.1 Description of risk management associated with the use of critical materials P.86

Intellectual Property

Protection & Competitive avior

TC-SC-520a.1

Total amount of monetary losses as a result of legal proceedings associated with anti-competitive

behavior regulations

P. 498, 2022 Annual Business Report (XI. Other Information)

Code Topic Page and Comment

TC-SC- 000. A Total production P. 27-29, 2022 Annual Business Report (II. Business Overview)

TC-SC- 000. B Percentage of production from owned facilities P. 27-29, 2022 Annual Business Report (II. Business Overview)

Semiconductors

Sustainability Disclosure Topics and Accounting Metrics

Activity Metrics

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Samsung Electronics Sustainability Report 2023

About this report

The 2023 Sustainability Report - the 16

edition of the report - is published with the aim of communicating our economic, social, and environmental performances and relevant activities to our

stakeholders in a transparent manner.

Reporting Standard

This report aligns with the Global Reporting Initiative (GRI)

Standards: Core Option, and reflects the indicators of the UN

Sustainable Development Goals (SDGs), Task Force on Climate-

Related Financial Disclosures (TCFD), and Sustainability

Accounting Standards Board (SASB).

Covered Activities

This report covers the activities of all of our business sites

in Korea and other regions as well as our supply chains. Our

consolidated financial performance is reported in accordance

with K-IFRS, and our environmental performance is reported

based on data collected from 31 production sites in Korea and

other regions.

Covered Period

This report illustrates our performance and activities from

January to December, 2022. Performance as of May 2023 has

been included in some areas. The report provides quantitative

data of the last three years to illustrate recent YoY trends.

Reporting Cycle

Annual - previous edition published in June 2022.

Third-Party Assurance

Samil PwC, an independent assurance provider, conducted

a third-party verification to ensure confidence in the report-

making process and information disclosed, as per the ISAE3000

veriﬁcation criteria.

Related Information

· Samsung Electronics Website

http://www.samsung.com/sec

· Sustainability Website

http://www.samsung.com/global/sustainability/main

· IR Website

http://www.samsung.com/sec/ir

· Samsung Newsroom

http://news.samsung.com/kr

http://news.samsung.com/global

For More Information

· Samsung Electronics Corporate Sustainability Center

· Address: 129 Samseong-ro, Yeongtong-gu, Suwon-si,

Gyeonggi-do (16677)

· Email: csr.partner@samsung.com

References

· Annual Business Report

· Corporate Governance Report

· Responsible Minerals Report

· CDP Report

· Global Code of Conduct

· Guidelines on the Global Code of Conduct

Forward-Looking Statement

Certain statements made in our Sustainability Report, including those related to our sustainability targets and

strategies, may constitute forward-looking statements under applicable laws. This Report contains forward-looking

statements that reflect Samsung’s current views with respect to future events and performance. These statements

involve risks and uncertainties.

You can identify forward-looking statements by the fact that they do not relate strictly to current or historic facts.

Examples of forward-looking statements include information concerning Samsung's outlook and guidance, as well

as any other statement that does not directly relate to any historical or current fact. In some cases, you can identify

forward-looking statements by terminology such as "may," "will," "could," "should," "forecasts," "expects," "intends,"

"plans," “aims to”, “goals,” “trying to,” "anticipates," "projects," "outlook," "believes," "estimates," "predicts," "potential,"

"continue," "preliminary," “strategy,” or the negative of these terms or other comparable terminology.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we can give

you no assurance these expectations will prove to have been correct. These statements are being provided for the

purpose of assisting readers in understanding our approach to key sustainability topics, strategies and initiatives,

and in obtaining a better understanding of our anticipated operating environment. Readers are cautioned that such

information may not be appropriate for other purposes.

Forward-looking statements in this document may include, but are not limited to: statements regarding Samsung’s

greenhouse gas emissions, energy consumption, water consumption, and other environmental targets, external

sustainability commitments and operational strategies. Many risks, contingencies and uncertainties could cause

actual results to differ materially from Samsung’s forward-looking statements.

Such factors may include, but is not limited to, the following : statements related to the expected effects on our

business of geopolitical events, global economic conditions, fluctuations in cost and availability of raw materials,

our ability to maintain favorable supplier relationships and arrangements, economic and political conditions in the

markets we serve, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of

future legislation, the impact of environmental regulations, unexpected business disruptions, the effectiveness of

our internal control over financial reporting, the results of governmental investigations, and the unpredictability of

existing and possible future litigation. Unlisted factors may present significant additional obstacles to the realization

of forward-looking statements.

This Report also includes forward-looking statements regarding our sustainability; safety and health; cybersecurity;

culture; diversity, equity, and inclusion; community engagement; and related goals, commitments and strategies.

Our actual future results, including the achievement of our targets, goals or commitments, could differ materially

from our projected results as the result of changes in circumstances, assumptions not being realized, or other risks,

uncertainties and factors.

Although Samsung believes that the forward-looking statements in this Report is based on information, assumptions,

and beliefs that are current and reasonable, such forward-looking statements – and the underlying information,

assumptions, and beliefs – are necessarily subject to a number of factors, risks, and uncertainties, which could cause

actual results to differ materially from management's expectations and plans as set forth in such forward-looking

statements.

Any forward-looking statement speaks only as of the date on which such statement is made, and

Samsung

undertakes no obligation to update any forward-looking statement, whether as a result of new information, future

events or otherwise.