Samsung Display accelerates ESG management

Samsung Display CEO Choi Joo-sun speaks during a Samsung Tech Day event in Silicon Valley in this Oct. 17, 2018, file photo. At the time of the event, Choi was a senior executive at Samsung Electronics. Yonhap

By Kim Yoo-chul

Samsung Display said it will further boost environmental, social and governance (ESG) measures, which have become important features in measuring the sustainability and ethical impact of investments.

The world agreed back in 2015 to limit global warming to less than 2 degrees Celsius, which was the crux of the Paris Agreement. As a result, companies increasingly feel the need to adopt sustainable ways of doing business as they face tougher standards to qualify for investments.

In a statement, Samsung Display said it has joined the responsible business alliance (RBA), the world's largest industry coalition dedicated to corporate social responsibility in global supply chains, as part of plans to take the initiative among local producers in moving forward with ESG-focused management strategies.

It is fair to say that identifying ESG has a strong impact on manufacturing companies such as Samsung Display by improving risk management and ultimately helping investors make better financing decisions.

"As a global leader in the display industry, Samsung Display has been prioritizing environmental and social values in the entire process of product manufacturing," Shin Jae-ho, chief of the company's display management office, was quoted as saying in the release. "Moreover, we will further evolve into a global company that earns trust from our customers and members of society," said Shin.

RBA sets out and holds members accountable to the "RBA Code of Conduct" based on a number of global standards to achieve a higher level of corporate ethics. RBA has more than 160 global companies, including Samsung Electronics, Apple, and Intel as members.

Through the RBA membership, Samsung Display is expected to gain additional momentum to go beyond just conforming to relevant domestic laws, and thoroughly incorporate global codes of conduct into the company's management strategy with regard to five critical sections of the RBA Code ― labor, health and safety, environment, business ethics, and management systems.

"The company plans to reinforce onsite audits and objective due diligence on management systems and working environments. Specifically, Samsung Display will undertake the validated assessment program (VAP), an onsite compliance verification audit, as well as get onsite assessments of its compliance to the RBA Code of Conduct from reputable organizations," according to the statement.

Also, the Samsung affiliate will be committing company-wide efforts to bolster its ESG performance. Samsung Display formed a consultative body on ESG strategy for all of its business departments.

Earlier this year, the company presented mid- and long-term strategies focusing on the five following areas ― climate change, resource circulation, sustainable products, win-win collaboration with partners, and local community, in order to lay the groundwork for the systemic implementation of ESG management.

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