Samsung Electronics Sustainability Report 2024 ENG

Samsung Electronics Sustainability Report 2024
A Journey Towards
a Sustainable Future
Our Company Materiality Assessment
Message from Our CEO 04 Materiality Assessment 08

About Us 05
Stakeholder Engagement 06
Planet People Principle
[DX Division] Our People 31 Compliance & Ethics 53
A Journey Towards Governance and Major Progress

Climate Change
12
13
Sustainability in Supply Chain
Empowering Communities
39
45
a Sustainable Future Circular Economy 15 Privacy Protection & Security 48
Water & Pollution 17 Customer Safety & Quality 50
Samsung Electronics Sustainability Report 2024 [DS Division]

Governance and Major Progress 19
Climate Change 20
Water 23
Waste 26
Pollution 28
Facts & Figures Appendix
Economic Performance 56 Independent Assurance Report 70

Social Performance 57 Verification Statement on Scope 1, 2
Environmental Performance 62 Greenhouse Gas Emission 71
Available Water Resources by 65 Verification Statement on Scope 3
Region Greenhouse Gas Emission 72
Performance by Division 66 GRI Index 74
TCFD Index 77
SASB Index 79
Collaboration Efforts on Climate Action 81
About This Report 82
Samsung Electronics Sustainability Report 2024 Our Company Materiality Assessment Planet People Principle Facts & Figures Appendix 02
Our Company
04 Message from Our CEO

05 About Us
06 Stakeholder Engagement
Our Company
Message from
In addition, the EU is consistently strengthening its environmental In the social sector, Samsung Electronics aligned with our Global Human
regulation through means like the Carbon Border Adjustment Rights Principles (announced in February 2023) to establish a Global
Our CEO
Mechanism (CBAM) and Bat ter y Regulation. Interest in human Grievance Resolution Policy in March 2024, setting up standards for
rights continue to grow as well as, seen by Germany’s Supply Chain our grievance submission channels’ resolution process and submitted
Due Diligence Act, mandating supply chain human rights and work grievance resolution principles. We are also expanding our supply chain
environment management, coming into effect in 2023, and the EU work environment management scope to include non- and second-tier
Corporate Sustainability Due Diligence Directive (CSDDD) being manufacturing suppliers, depending on risk analysis results.
approved in May 2024 by member states.
Samsung Elec tronics also seeks to fulfill our corporate social
Samsung Electronics continued our efforts for a sustainable future in line responsibility. For example, the DS Division established a standard
with this trend. Samsung Electronics announced our New Environmental workplace for people with disabilities, named 'Stellar Forest', as a
Dear Shareholders, Customers, Partners, and Employees, Strategy in September of 2022, which includes our goals to join in overcoming subsidiary in March 2023. Stellar Forest is dedicated to providing a stable
Samsung Electronics faced a very challenging year in 2023 due to the global climate crisis through achieving net zero Scope 1, 2 emissions by workplace for individuals with development disabilities, starting with
macroeconomic uncertainties with high interest rates, inflation, and 2050, maximizing resource circularity to contribute to a circular economy, and operating a confectionary manufacturer that supplies baked goods to
geopolitical issues as well as a sluggish memory industry and increased tackling environmental challenges through technological innovation. Samsung Electronics employees.
competition for various product lines. It is thanks to the interest and Our two divisions are pursuing a number of environmental efforts. The This year’s Sustainability Report is organized in line with global
encouragement of our stakeholders that we have been able to invest DX Division, aiming to be net zero Scope 1, 2 emissions by 2030, recorded disclosure regulation frameworks to identify our company’s key
KRW 28.3 trillion in R&D, the highest level ever, and KRW 53.1 trillion in a Renewable Energy (RE) transition of 93.4% by the end of 2023. This sustainability management issues and to faithfully communicate these
strategic facility investments to strengthen our technology leadership, includes a 100% RE transition for our major manufacturing facilities world- key issues’ governance structure, strategy, implementation activities
responding to mid- and long-term needs in advance, laying the wide including the United States, EU, China, Republic of Korea, Vietnam, and current status. We also designed the Sustainability Report to closely
foundation for sustainable growth even in such challenging internal and India, and Brazil. The DX Division is also working in line with our Resource connect to Samsung Electronics’ newly launched Sustainability Website.
external environments. Once again, I would like to express my deepest Circularity Roadmap and applied recycled resin in 25% of procured
As Samsung Electronics experiences an era where environmental, social,
gratitude. plastic parts.
and economic risks and geopolitical uncertainties have become part of
Reflecting this rapidly changing economic situation, the field of corporate The DS Division installed 16 new process gas treatment facilities everyday life, sustainability is an unwavering indicator of the direction
sustainability is also facing many changes. In particular, information (Regenerative Catalytic Systems, RCS) on 4 production line buildings we must take and a driving force for business competitiveness and
disclosure regarding corporate sustainability activities is entering a to achieve net zero Scope 1, 2 emissions by 2050, and strived to reduce technological innovations. As the saying goes, “Difficulty is the Nurse of
new era in line with the spread of global non-financial information greenhouse gas (GHG) emissions by expanding our liquid natural gas Greatness”, and Samsung Electronics will continue to do our best to seek
disclosures. The International Financial Reporting Standards Foundation (LNG) waste heat recovery system. We proved our water management new heights through sustainability and meet the expectations of our
(IFRS Foundation) issuing its sustainability disclosure standards in June system’s excellence by obtaining the highest level of certification stakeholders with even greater progress.
2023, the EU’s Corporate Sustainability Reporting Directive (CSRD) and (‘Platinum’) from the Alliance for Water Stewardship (AWS) for our
Thank you.
the United States Securities and Exchange Commission’s (U.S. SEC) Giheung, Hwaseong, Pyeongtaek (Korea) and Xi’an (China) facilities with
subsequently confirming their climate disclosure rules all demonstrate the goal of reducing our water withdrawal to 2021 levels in 2030. We also
CEO and Vice Chairman of DS Division Head and Vice Chairman of
the beginning of an era of mandatory ESG information disclosure. aim to reduce our waste generation and are expanding the number of Samsung Electronics Co. Samsung Electronics Co.
resource circularity certifications obtained from the Republic of Korea’s Jong-hee Han Young-hyun Jun
Ministry of Environment. The list current stands at 49 items including 9
new certifications for items like wafer boxes in March of 2024.
Our Company
About Us
Samsung Electronics Co., Ltd. (Samsung Electronics) aims to be a global first-class company that contributes to society by creating the best products
and services based on a talented workforce and advanced technology. To this end, Samsung Electronics has established five Key Values that reflect
the company's management philosophy and refined the core values into principles and behavioral guidelines , or the Global Code of Conduct .
Samsung Electronics will continue to grow by internalizing these five core values in our corporate culture, using the Global Code of Conduct as the
standard for all corporate activities.
About Our Organization

Samsung Electronics is divided into two Divisions, Device eXperience (DX) and Device Solutions (DS), operated independently according to product
characteristics. The DX Division produces and sells finished products such as TVs, refrigerators, washing machines, air conditioners, smartphones,
network systems, and computers, while the DS Division consists of the Memory Semiconductor Business, Foundry Business, and System LSI Business
which produce and sell semiconductor components such as DRAM, NAND Flash, and mobile APs.
Major Business Units
Sales Operating Profit Mobile eXperience Visual Display Digital Appliances
DX Device eXperience KRW 169.9923 trillion KRW 14.3847 trillion Networks

Health & Medical
Equipment
Sales Operating Profit

Memory Foundry System LSI
DS Device Solutions KRW 66.5945 trillion KRW (-) 14.8795 trillion

※ T he sales and operating profits above are based on 2023 figures, including intersegment
transactions and excluding the performances of Harman and Samsung Display Company (SDC).
Regional Headquarters1) Sales Offices2) Manufacturing Sites Procurement Centers
15 109 32 6
R&D Centers Design Centers Others3) Total Employees Suppliers4) Operations in R&D expenditure
40 7 23 232 267,860 2,515 76 countries KRW 28.3 trillion
1) Regional classification is based on Samsung Electronics’ internal management criteria. 2) Sales subsidiaries, branches, etc. 3) Distribution subsidiaries, IP Offices, etc. 4) Suppliers of parts used in the manufacturing of Samsung Electronics products.
Our Company
Stakeholder
Active communication with our stakeholders is an important part of fulfilling our responsibility as a global corporate citizen. Samsung Electronics
transparently and timely discloses relevant information on our Sustainability Website .
Engagement
In addition, we seek to strengthen our relations and align ourselves with our stakeholders on issues regarding sustainability through active
communication via multiple channels, including stakeholder forums, surveys, and on-site visits.
Stakeholders Key Interests Communication Channels Major Activities

Customers · Quality of products and services · Accurate product · Customer satisfaction surveys · Samsung Semiconductor Newsroom ·R
einforce quality and safety management ·R esolve issues identified through Voice of the
(B2C & B2B) · Safety in product use information · C ontact centers, service centers · Sustainability Website systems Customer (VOC)
· Environmental impact of products throughout their life · Transparent communication · Samsung Electronics Newsroom · Sales Channels ·O
ffer product information via country-specific · S taff sustainability specialists at the subsidiary
cycle · Samsung.com · Product Environmental Report websites and business levels
Shareholders and · Economic performance · ESG agenda, including · Annual General Meeting · Investors Forum · Forecast business performance and environment · Release corporate governance information
Investors · Risk management environmental, social, and · Non-Deal Roadshows, Investor Meetings · Investor ESG Roadshow · Update shareholder return policy · Share environmental and social performances
· Information disclosure governance · Earnings Releases · IR Website · Publish disclosures · P ool shareholder, investor views
Employees · Safe and healthy work environment · Employment and benefits · Labor unions, work councils · Communications with the executive ·O ffer tailored career development programs · Mentor executive management by younger
· Diversity, equity, and inclusion · Labor relations · Counseling centers management ·H ost town halls by individual business units generation employees
· Training and career development · Organizational culture · Satisfaction surveys (work concentration, · Online comm. platforms, including Samsung · Perform collective bargaining · Manage our business sites’ work environment
organizational health, employee experience) NOW · Operate labor-management relations advisory · Foster a culture of trust and communication
· Sustainability Website · Compliance and ethics whistleblowing channels group · Carry out Employer Branding Activities
· Industrial Safety and Health Committee ·O perate health promotion programs
(diet programs, etc)
Suppliers · Partner Collaboration · Worker human rights · Global Supplier Relationship Management · Partner Collaboration Academy · Support employee training and innovation · P rovide funding and technology support
· Workplace EHS (Environment, Health & Safety) protection System (G-SRM) · Partner Collaboration Day, supplier dialogues · Manage GHG emissions reduction · Manage and take responsibility for suppliers’ work
improvement · GHG emissions reduction · Hotline, online whistleblowing channels · Sustainability Website environment
· Fair Trade · Collect and resolve grievances
Local Communities · Local employment & economic development · Conservation of local · Local volunteer centers · CSR Website · S upport SMEs, including Smart Factory ·R
un community outreach programs on education
· Indirect economic effects, incl. investment/employment environment · Sustainability Website construction and employment(Samsung Stepping Stone of
· Philanthropic activities · C onserve river ecosystems near our business Hope, Samsung SW Academy for Youth, etc.)
sites
Intl. Organizations, · Social responsibilities for local communities, human rights, · UN SDGs contributions · Corporate dialogues ·M eetings between civil society groups and · C ollect global NGO opinions · E ngage with UNGC1)
NGOs, Associations, and the environment (climate action, etc) ·N GO meetings executive management. · E ngage with RBA1), RMI2), BSR3) · E ngage with ACEC2), SCC3)
Specialized · Cross-regional & business sector collaboration · Transparent and timely · S takeholder forums · Labor-human rights stakeholders workshops 1) Responsible Business Alliance 1) United Nations Global Compact
Organizations information disclosure · Sustainability Website · Industrial Associations 2) Responsible Minerals Initiative 2) Asia Clean Energy Coalition
3) Business for Social Responsibility 3) Semiconductor Climate Consortium
Government · Indirect economic effects, incl. investment/employment · Fair trade · Policy conferences · Policy advisory boards · S upport SMEs in collaboration with the ·O
perate joint venture investment windows in
· Occupational health and safety · Compliance · National Assembly · Sustainability Website government collaboration with the government
· Business Ethics · Policymaking public hearings
Media · Strategy, performances for major products, business units · HR, labor relations, health · Press releases · Samsung Electronics Newsroom · S upport media coverage of global IT · Participate in interviews & press conferences
· Future growth strategies such as investment, R&D, and M&A & safety, patents, product & · Sustainability Website · Samsung Semiconductor Newsroom exhibitions and unpack events · Participate in media days
· ESG progress (Net Zero, etc) service quality, etc. · Media dialogues · Implement planned promotional activities
Materiality
Assessment
Materiality Assessment DMA Process Reflecting DX/DS Divisional Characteristics Samsung Electronics
Samsung Elec tronic s’ DMA process consis t s of four s teps: ① strived to reflect our Divisional characteristics during the DMA process.
Materiality
understanding the business, ② identifying impacts, risks, and In the value chain analysis step we identified individual value chains by
opportunities (IROs), ③ evaluating IROs, and ④ selecting material DX, DS Divisions and their respective Business Units to comprehensively
topics. consider sector-specific ESG topics in issue pool composition and
Assessment Step 1. Understanding the Business

Understanding the business involved analyzing our business’ internal/
assessment. We also identified and performed surveys/interviews with
Division specific employees, customers, and suppliers while evaluating
stakeholder groups.
external environments and value chain, then identifying primary topics.
In the internal/external environment analysis, we reviewed disclosed [Derive Primary Topics]
company data such as our Annual Business Report and internal company Samsung Electronics formed an issue pool of 115 issues, constructed
data such as stakeholder inquiries to secure base materials for future from 92 sub-topics as suggested by the European Sustainability
evaluation processes. Reporting Standards (ESRS) and 23 additional, sector specific issues.
We also conducted a value chain analysis to derive ESG topics that Each issue was evaluated against four criteria (alignment with company
comprehensively consider relevant stakeholder characteristics within strategy, alignment with global initiatives, key issues in the industry,
the value chain. We first organized the value chain into ‘upstream (raw and results of value chain analysis) to derive 52 issues, and 13 primary
materials, parts, and other suppliers) – own operations (manufacturing, topics were selected to encompass these 52 issues based on the topic
Samsung Electronics conducts materiality assessments identifying sales) – downstream (transportation, sales, repairs/services)’ phases taxonomy of the ESRS.
and prioritizing key sustainability issues material to our business, and identified each phase’s key stakeholders’ industrial sectors and
transparently disclosing the processes and results. In 2024, We business activities. We then analyzed ESG topics for each industrial Primary Topics
conducted a Double Materiality Assessment (DMA) adapted from the sector referencing the Sustainability Accounting Standards Board (SASB) Climate Change Working Conditions - Information Security
European Financial Reporting Advisory Group‘s (EFRAG) materiality standards, after which we derived material ESG topics for each Division and Energy Employees and Protection
assessment implementation guidance. and Business Unit’s individual value chain phases. Pollution Equal Treatment Product Quality and
Water and Opportunities - Safety
We also identified key stakeholder groups interested in our sustainability Employees
Resource Circularity Accessibility
DMA Definition activities in order to widely gather stakeholder opinions during the Forced Labor -
and Waste Business Conduct
Samsung Electronics' 2024 DMA evaluates topics of potential materiality assessment process. We also established various opinion gathering Employees
Governance
to Samsung Electronics’ sustainability, considering both relevant plans to accommodate our diverse stakeholders’ characteristics. Supply Chain
company activities’ impacts to the external environment and relevant

external factors’ financial impacts to the company in order to ascertain Double Materiality Assessment Process
material topics for Samsung Electronics’ sustainable management.
Understanding the Business Identifying IROs Evaluating IROs Selecting Material Topics
Analyze internal/external Identify environmental and social Set evaluation criteria and scales for
External environments impacts material topic selection Combine IRO evaluation results
Environ- Classify positive/negative and actual/ and stakeholder inputs
Environmental & 1 ment
Social Impacts Understand and analyze potential impacts
Selection of ESG Topics the value chain Assess Assess
Material to Samsung (Upstream / Own operations Identify financial impacts environmental/ financial risks/
Electronics / Downstream) Classify risks/opportunities social impacts opportunities
Report DMA results to
Corporation 2 Financial Risks &
company board
Opportunities Derive primary topics Gather internal/external key stakeholder opinions
Step 2. Identifying IROs Step4. Select Material Topics
Stakeholder Engagement-Based Assessment
Samsung Electronics identified environmental/social impacts and Samsung Electronics selected eight material topics based on a
financial risks/opportunities for the 13 primary ESG topics. We first Stakeholder Surveys combination of quantitative and qualitative analyses of the survey
prepared identification bases for primary topics including related In March 2024, we conducted an online survey for relevant internal/ results, including: climate change and energy, water, resource circularity
regulations, media, Sustainability Website and Report contents as well as external stakeholders including Samsung Electronics employees, and waste, working conditions - employees, supply chain, information
requests from key stakeholders like our customers, investors, and rating customers, partners, investors, NGOs, and international organizations. security and protection, product quality and safety, and business conduct.
agencies, then analyzed topic relevant Samsung Electronics business We distributed assessment guides and video material s to aid Due to sectoral differences between each Division, we further selected
activities. Next we identified environmental/social impacts of relevant stakeholders in understanding the survey. We also held separate briefing environmentally material issues by Division. The DX Division’s material
value chain business activities and classified each impact into positive/ sessions for our employees to inform them in detail of survey purpose, environmental issues included climate change and energy, water, resource
negative and actual/potential traits. Using the identification bases, participation method, evaluation scale, and result usage. circularity and waste, while the DS Division’s material environmental
issues included climate change and energy, water, resource circularity
we also identified and analyzed how topical external environments Executive Management Interviews
and waste, and pollutants. After management review, selected material
can financially impact us and classified each impact into risks and In March 2024, we conducted in-person and written interviews with DX/
issues were reported to the Sustainability Committee under the Board of
opportunities, analyzing the respective account subjects. DS Division sustainability-related executives to obtain their views on
Directors.
ESG topics material to the company.
ID Bases Identifying IROs
Legal/Regulative Issues ·C
ompany activity’s EU Stakeholder Forum
Environ- Qualitative Results Quantitative Results
Externally disclosed environmental and social In March 2024, we held a sustainability forum in Brussels, Belgium,
mental/ Env./Social Financial Risks/ Executive Management
information (media, impacts related to ESG topics titled ‘Innovate & Empower: Samsung’s Sustainability Journey’ for EU Interview Results
Social Impacts Opportunities
Sustainability Website, ·C
lassified as positive/negative,
Impacts
actual/potential stakeholders. Key stakeholders including European government agencies
Sustainability Report, etc.) Identifying IROs
such as EFRAG and DG GROW, international organizations such as the
Stakeholder requests Financial · Combined qualitative and quantitative analyses results to select final
· E xternal environmental impacts ILO, OECD, UNDP, UNEP, UNGC, and UN PRI, associations such as the RBA
(customers, investors, Risks/ on company finances related to material topics1)
suppliers, rating agencies,
Opportu- ESG topics
and WBCSD, and professional organizations discussed major challenges · 8 material topics selected(3 environmental, 4 social, 1 governance)
etc.) and opportunities for non-financial disclosure standards and regulations,
nities ·C lassified as risks/opportunities 1) Information security and protection, product quality and safety, business conducted
climate action, resource circularity, and labor rights in Europe. Samsung selected as new material topics compared to previous assessment
Electronics also identified areas for improvement through meetings with

Step 3. Evaluating IROs
stakeholders, and plans to continue to strengthen communication with
Samsung Electronics designed evaluative scales for identified primary
stakeholders in the future. Final Material Topics
topics’ IROs referencing EU ESRS requirements and per formed
evaluations based on robust stakeholder participation. Environmental Social Governance
Climate Change and Working Conditions - Business Conduct
Classification Assessment Standard Energy Employees
Scale Size of impacts Water Supply Chain
Social Impacts
Env./
Scope Geographic/physical reach of impacts Resource Circularity Information Security

and Waste and Protection
Remediability Time required to remediate negative impacts Product Quality and Safety
Likelihood Time estimated for potential impacts to occur
Quantitative Quantitative size of risks/opportunities considering
Opportunities
Financial Risks/
size company sales, net worth, net income before tax, etc.
Qualitative reach of risks/opportunities considering
Qualitative
expected or realized time of executive managements’
reach
strategy formation and decision making
Likelihood Time expected for financial risks/opportunities to occur
Material Topic Management
Samsung Electronics identifies the impacts of selected material topics on the company, and reports on company activities to manage these topics.
2024 Material Topics UN SDGs Governance Strategy Risk Management (Policy) Activities (Major Progress)
·S
ustainability Committee under the · DX Division: net zero Scope 1, 2 emission by 2030 · Board of directors approved New · Reduce direct emissions, expand renewable
Climate Change Board of Directors oversees sustainability · DS Division: net zero Scope 1, 2 emission by 2050 Environmental Strategy energy, reduce external GHG emissions
and Energy management (including environmental · Operate Environmental Management Task
management) strategy Force
and progress
· DX Division: replenish 100% of water used globally by · Board of directors approved New · Expand scope of AWS1) certification for Korean
·S
ustainability Council (chaired by CEO) and 2030 Environmental Strategy manufacturing sites
Environmental Management Task Force · Operate Environmental Management Task
· DS Division: achieve zero increase in water intake 1) Alliance for Water Stewardship
Water (consisting of relevant departments) and Force and Net Zero Committee
relative to 2021 levels by 2030
decide on current issues · A ssess water resources risk assessment and
· I nvest over KRW 7 trillion in environmental establish response strategy by region
management activities by 2030 (including
process gas reduction and water resource · DX Division: apply recycled resin to all plastic parts by · Board of directors approved New · Set up product waste retrieval system, attain
Resource
preservation) 2050 Environmental Strategy Zero Waste-to-Landfill certifications at
Circularity
· DS Division: achieve 99.9% waste recycling rate across · Operate Environmental Management Task business sites
and Waste
all Korean manufacturing sites Force and Net Zero Committee
·S
ustainability Committee under the Board of · Respect human rights based on management · E stablish various policies and standards · Observe freedom of association and right to
Directors, Sustainability Council chaired by philosophy of “People First”, continue to pursue safe including fundamental principles of human collective bargaining
the CEO and Labor and Human Rights Council work environment, and create positive workplace rights, grievance policy, environmental health · Analyze and improve living wage gap
Working
oversees and manages employee and supply culture and safety policy · Operate manufacturing site safety
Conditions - chain labor and human rights at various
· Operate employee communication and management programs and employee health
Employees levels
grievance channels and perform human promotion programs
rights due diligence · Provide fringe benefits and work policies for
work-life balance
· Secure sustainable supply chain by assisting supplier · E stablish various policies and standards · Perform force labor, child labor special audits
labor and human rights, occupational health and including supplier Code of Conduct, global · Perform regular ESG audits, consulting and
safety, and talent development as well as business purchasing Code of Conduct training for suppliers
Supply Chain competitiveness
· Provide supplier employee comm. channels, · Operate Partner Collaboration Academy
grievance channels, and operate integrated
workplace environment management process
·C
PO (Chief Privacy Officer) and Information · Provide strategic direction through the Three Privacy · E stablish global privacy protection policy, · Operate Privacy Legal Management System
Information Protection Center head, acting as CISO Principles and Four Pillars of Cybersecurity operate Samsung privacy website (PLMS) and educate employees
Security and (Chief Information Security Officer), perform · Operate security platform Samsung Knox and
Protection control tower role and operate Privacy Samsung Knox Vault
Protection Committee and Security Council · Semiconductor technology security
·G
lobal CS Center (Customer Satisfaction ·A
nnounce Code of Conduct based on vision of top class · Operate quality assurance system and · Secure product safety and improve product
Product Quality
Center) and business unit organizations in pursuit of quality incident response process quality
and Safety
charge of quality perform operations
·B
oard of directors and affiliated committees ·E
stablish and specify employee and business · CPMS1) based risk management · Operate education and reporting programs,
Business Conduct provide oversight on compliance, Compliance guidelines 1) Compliance Program Management System evaluate corruption risk
Committee performs operations
Planet
We dream of a better world, a better planet.
DX Division
12 Governance and Major Progress
13 Climate Change
15 Circular Economy
17 Water & Pollution
DS Division
19 Governance and Major Progress
20 Climate Change
23 Water
26 Waste
28 Pollution
DX Division Governance evaluations in its organizational reviews in 2021, and added items such as
RE transition, energy-efficient product development, and waste recycling
Samsung Electronics’ Sustainability Committee under the Board of performance to organizational and executives’ performance reviews in
Directors, as its highest governance body, recognizes the environmental
Governance and
2023, expanding the list in 2024 to include water resource management.
field (encompassing issues like climate change and resource circularity) We will continue to enhance incorporation of sustainability issues in our
as a core management area that directly connects to company business organizational and executives’ performance reviews.
Major Progress and financial progress. The Sustainability Committee under the Board
approves the company’s Environmental Strategy and targets, overseeing DX Division Governance Bodies
relevant major activities. In 2022, the Board resolved Samsung Electronics’ Sustainability Committee
New Environmental Strategy , which encompasses mid- to long-term Reports to Board of Directors composed of independent directors,
climate change response and resource circularity goals. In 2023, ‘Major oversees sustainability strategy and progress at least once per quarter
Achievements of the 1st Anniversary of the New Environmental Strategy'
Sustainability Council
was reported to the Board.
Discuss sustainability issues at least once per quarter with executives
In the DX Division, the CEO has responsibility and authority over key of all relevant units and chaired by CEO
issues such as establishing environmental strategies, identifying
Environmental Management Task Force
implementation tasks, and implementing investments. The CEO
Reviews and updates corporate Environmental Strategy action items,
presides over the company’s Sustainability Council with Business Unit discusses and makes decisions on current issues
heads and operative department heads. In addition, the Environmental
Management Task Force, a company-wide council composed of
Environmental Carbon Disclosure
executives from environment-relevant departments, establishes Eco-Council
Safety Meetings Council
environmental management plans and checks on implementation Oversees, manages Reviews progress Establishes carbon
status. The Corporate Sustainability Center, Global EHS office, regional GHG emission and on environmentally emission calculation
reduction action items responsible products standards and system
environmental organizations, and Business Unit sustainability offices are
in charge of implementing action items/projects to respond to climate
Environmental Management System Environmental Risk Management
change. The DX Division started GHG emission reduction performance
Environmental Targets and Major Progress in 2023

Environmental Targets Progress in 2023
Net 2027 2030 · DX Division RE transition at 93.4%
Zero · 100% RE transition for DX business sites · Achieve net zero Scope 1, 2 emissions for DX Division ·A pplied ultra-power-saving technologies to major
· Replace all corporate vehicles in Korea with · Improve power consumption of major models in seven product models in seven product categories1), improved
100% zero-emission vehicles (EV, hydrogen) categories1) by 30%2) energy efficiency by 25% compared to 2019
2025 2030 2050
Resource ·A pplied recycled resin to 25% of plastic product
· Obtain Underwriter · Apply recycled resin to 50% of plastic parts · Apply recycled resin to all
Circularity parts
Laboratories (UL) highest used in our products3) plastic parts3)
level certification (Platinum) · Expand e-waste recovery to all global sales regions · Cumulatively collect · Operating e-waste recovery programs in
for Zero Waste-to-Landfill at · Cumulatively collect the industry’s largest 25 million tonnes of e-waste approximately 70 countries globally
Climate Change all our manufacturing sites amount of e-waste at 10 million tonnes · Obtained Platinum Zero Waste-to-Landfill certification
in 2 Korean, 12 global manufacturing sites world-wide5)
Circular Economy 2024 2030
Water · Expand water replenishment program (3 Korean sites, 8 global sites at 4 countries) · Replenish 100% of · Performed water replenishment pilot projects
Water & Pollution · Obtain highest level certification (Platinum) from Alliance for Water Stewardship (AWS) water used globally at 3 Korean locations
for 3 Korean4) and 3 Vietnamese manufacturing sites for DX Division
1) Based on comparable specifications for 7 electronic products: smartphones, TV, refrigerators, washing machines, air conditioners, PCs, monitors
2) Compared to 2019 3) Pure recycled resin ratios differ by part 4) Certified in January 2024 5) As of March 2024
Planet / DX Division Risk Management Activities
The DX Division identifies tangible financial or strategic impacts of Direct GHG Emission Reduction
Climate Change
climate change related risks, develops response strategies based on The DX Division prioritizes minimizing its own emissions through
each issue’s importance and impact on our business and incorporates improving the energy efficiency of business sites, reducing energy use,
said strategies into our decision making process. Risks include global and transitioning energy sources, while identifying and executing GHG
climate frameworks, increased regional regulations, market change, reduction projects to offset emissions that cannot be reduced through
stakeholder requests, and changes in the physical environment. For our own reduction activities. We also continue to reduce energy use at
example, Korean manufacturing facilities in particular are performing our global manufacturing subsidiaries while setting energy use reduction
our legal obligations for GHG emission management under the K-ETS targets relative to the previous year1).
(Korean Emission Trading Scheme).
In 2023, we secured a total of 250,000 tonnes of carbon credits through
We anticipate that GHG emission reduction targets assigned to agroforestry and mangrove projects in India and Indonesia. We are
companies subject to K-ETS according to the Republic of Korea’s especially focusing on reduction projects that not only reduce GHG
Nationally Determined Contribution (NDC) will continue to be emissions but also improve the quality of life and income levels of the
strengthened. In the short term, we expect increases in investment local community such as cookstoves and agroforestry. We also plan to
due to increasing carbon prices, adopting energy efficient technology, transition to 100% zero-emission vehicles (electric and hydrogen cars) in
Strategy and responding to extreme weather caused damages to be potential Korea by 2027. We plan to continue to implement GHG reduction projects
risks. We also expect easing of carbon pricing sensitivity due to securing to achieve our direct emission reduction and net zero targets.
The DX Division plans to achieve net zero Scope 1, 2 emissions by 2030
external carbon credits and energy cost reduction due to deploying 1) 2024 target: energy use reduction
in line with the New Environmental Strategy announced in 2022. To
highly energy efficient technology to be potential opportunities.
this end, we are minimizing direct emissions through process energy
We also anticipate change in consumer spending patterns and preference
efficiency improvement and expanding our use of renewable energy Direct GHG Emission Reduction Roadmap
for environmentally responsible products to be potential mid-term
(RE). We are also pursuing various GHG emission mitigation activities in
opportunities, while expecting physical impacts like temperature rise 2023 ‧ Reduce GHG emissions through means such as retrofitting
our business sites and across our entire value chain, including product
and water resource depletion to be potential long term risks. facilities with high-efficiency equipment, and automation
logistics, sales, and use. including application of Internet of Things to our systems
Climate Change Risks‧Opportunities
Climate Change Strategy ‧ Reduce energy use through facility heating and cooling
operation optimization
‧ Cooperate with global institutes specializing in emission
reduction
Direct GHG Emission Reduction Renewable Energy Expansion Value Chain Carbon Reduction 2024 ‧ Secure external carbon credits through forestation projects
and mangrove projects
‧ Energy reduction activities including ‧ Joined RE100, a global initiative ‧ Apply power-saving technology to major models for
‧ Reduce business site energy use through means such as LNG
energy efficiency equipment purusing RE transition, in 2022 smartphones, TVs, refrigerators, washing machines, air
use efficiency improvement
installment and manufacturing process ‧ Utilize diverse RE procurement options to conditioners, PCs, and monitors
optimization economically and sustainably secure RE ‧ Support supplier GHG emission calculation and reduction 2030 ‧ Achieve net zero Scope 1, 2 emissions
‧ GHG reduction project implementation ‧ Transition to 100% RE by 2027 target setting (guidance development, training)
for remaining emission reduction ‧ Reduce value chain carbon emission from entire life cycle of a
Direct Emission Reduction Activities
‧ Achieve zero net direct emission by product, including in material procurement, manufacturing,
2030 transportation, usage, disposal, and recycling
Expansion of Renewable Energy Use Renewable Energy Transition Status by Region Value Chain Carbon Reduction
The DX Division has set a target of transitioning to 100% RE at all of U.S. Our U.S. subsidiaries have increased their renewable energy use The DX Division is striving to reduce value chain carbon emissions
our business sites by 2027 and is continuously expanding our RE usage by means like installing solar power generating facilities in company from a product life cycle perspective including material procurement,
by utilizing procurement means available to the global market. We are buildings and purchasing Renewable Energy Certificates (RECs). As a production, transportation, usage, disposal, and recycling as well as
also increasing the number of our Power Purchase Agreements (PPAs) result, our U.S. subsidiaries achieved 100% renewable energy transition pursuing net zero Scope 1, 2 emissions by 2030. In particular, we plan
in order to secure stable sources of RE and seeking to qualitatively in 2020. to decrease 2030 power use in major models for smartphones, TVs,
and quantitatively improve our RE supply through such measures as refrigerators, washing machines, air conditioners, PCs, and monitors by
installing solar power generation facilities on spare grounds in our Europe Our European manufacturing sites have transitioned 100% of 30% on average compared to 2019 models with equivalent performance
business sites. their electricity use to renewable energies by adopting the Green Pricing and specifications. In 2023, we decreased the power use in our major
System and purchasing RECs. models by 25% relative to comparable 2019 models.
Carbon emissions reduction in the product use stage
Renewable Energy Transition Roadmap
India Our Indian manufacturing sites completed the transition to 100%
2018 ‧ Declared plan to expand RE use (100% transition by 2020 in renewable energy in 2022 by signing PPAs with local solar, wind, and
U.S., European and Chinese business sites) Energy Efficient Products Roadmap
biomass power stations, purchasing RECs, and installing solar power
2020 ‧ Completed 100% transition in U.S., European and Chinese 2023 ‧ Energy efficiency of leading models of 7 major product
generating facilities.
business sites categories1) improved by 25% compared to 2019 using high
energy efficiency technologies
2022 ‧ Completed transition to 100% RE at all DX Division business Vietnam and China Our Vietnamese manufacturing sites transitioned to
sites in Korea and manufacturing sites in Vietnam, India, and 2030 ‧ Improve energy efficiency of leading models of seven major
Brazil 100% renewable energy in 2022 by purchasing RECs, while our Chinese
product categories1) by 30% compared to 2019
manufacturing sites also transitioned to 100% renewable energy by
2025 ‧ 100% transition in Central and South America 1) 7 major models (2023): Refrigerators (RF85C9241AP), air conditioners
adopting PPAs and purchasing RECs. We plan to expand the number of (AR10DYEAAWK/ST), washing machines (WF25CB8795BK), TVs
2027 ‧ 100% transition for DX Division
renewable energy PPAs for both countries. (KQ75QNC900FXKR), monitors (LS49AG950NKXKR), PCs (NP960XFG), smartphones
(SM-S918)
RE Transition Status by Key Regions
Central and South America Our Brazilian manufacturing sites

completed the transition to 100% renewable energy in 2022. Our Solving the climate crisis facing the world is a task that requires
Mexican manufacturing site expanded its share of renewable energy to everyone’s participation, and we want to create a journey together
DX Division RE Transition Rate (Usage, GWh)
70% in 2023 from 4% in 2020 through power contracts including REC with our suppliers. Samsung Electronics joined the CDP 1) supply chain
(as of 2023)
purchases. We are pursuing additional renewable energy PPAs and plan program in 2019. We established an operational system to promote
93.4% 93.1% (2,856) 93.4% (2,720) to achieve our transition target by 2025. GHG reduction in 2022 and are implementing substantive reduction
activities. We developed a guide to help our suppliers calculate their GHG
Republic of Korea The DX Division completed the transition to 100% emissions and set reduction targets, as well as operating a step-by-step
renewable energy in 2022. Our Suwon manufacturing site has installed support program for reduction activities.
14.4% (470) 17.7% (556)
1) CDP: Environmental Disclosure Platform (formerly Carbon Disclosure Project)
solar power generation facilities on site while our Gumi and Gwangju
manufacturing sites has implemented in-situ renewable energy PPAs to Responding to Climate Change with Our Suppliers
2020 2021 20221) 20231) supply themselves with solar powered electricity.
1) 2022 electricity usage: 3,067 GWh, 2023 electricity usage: 2,914 GWh
Planet / DX Division We enhance the durability, repairability, and upgradability of select
Activities
products, support regular software upgrades, and operate the Samsung
Expand Recycled and Recyclable Materials Use
Circular
Care+ program to minimize customers’ burdens with maintenance and
The DX Division is striving to apply recycled and recyclable materials.
repair, helping them use our products longer.
We took note of plastic waste, considered the largest threat to marine
Economy
environments, and developed innovative technologies to recycle
Risk Management discarded fishing nets. We are also continually expanding our use of
recycled and recyclable materials such as recycled aluminum and glass.
The DX Division manages resource circularity risks in 4 stages: risk
Continual Expansion of Recycled Materials
recognition, assessment, treatment, and progress management. We
recognize resource circularity related risks in waste treatment cost Samsung Electronics reduces environmental impacts by replacing
increase, treatment facility and technology limits, and lack of consumer plastics and vinyl used in several products’ packaging with recycled
awareness, and resource circularity opportunities in waste reduction materials while reducing GHG emissions in our product transportation
via recycling, including plastics, and new market opportunities from through miniaturizing and lightweighting our packaging. The Galaxy S24
recycling technology development. series launched in 2024 used 100% recycled paper in package boxes as
well as for protection papers attached to product front and rear.
Strategy
The DX Division aims to enhance the resource circularity of our entire Resource Circularity Risk Management Process Recycled and Recyclable Packaging Material Use Case by Product
product life cycle ranging from raw material procurement to production, Category
1 Identify potential risks from a life cycle perspective from product
disposal, and recycling. We aim to develop the resource circularity design to disposal Visual Displays / Mobile Appliances
process through producing electronics with recycled materials, Digital Appliances
2 Prioritize identified risks
collecting end-of-life and discarded products, recovering resources,
3 Develop, implement, and monitor responses to each risk
and applying the recovered resources to new products. We work to
4 Manage progress on each risk, evaluate management efficiency and Recycled and Recyclable Materials Roadmap
extend our products’ lifecycles and minimize our environmental impact. continually improve risk management effect
2022 ‧ Ocean-bound plastic recycled and applied to DX Division
manufactured products
‧ Circular Economy Lab established
Expand Use of Recycled and Recyclable Operate E-waste Collection System Achieve business site Zero Waste to Landfill Certification 2023 ‧ Applied recycled resin to 25% of plastic parts in products1)
Materials ‧ Operate e-Waste collection and recycling ‧ Set Zero Waste to Landfill policy to promote recycling
2030 ‧ Apply recycled resin to 50% of plastic parts in products
‧ Developing innovative technology for recycling systems in approximately 70 countries to ‧ Achieve Zero Waste to Landfill1) certification from global environment purchased by DX Division1)
discarded fishing nets to address plastic debris ensure that waste products are recycled and safety certifier UL for all manufacturing sites ‧ Establish recycling system for minerals extracted from all
‧ E xpand recycled and recyclable materials use into materials for new products ‧ Achieve highest level certification (Platinum) for all DX Division waste batteries collected by us
‧ Apply recycled resin to 50%/100% of DX ‧ E xpand e-Waste collection system to manufacturing sites by 2025
Division purchased product plastic parts approximately 180 countries by 2030 2050 ‧ Apply recycled resin to 100% of plastic parts in products
1)UL(Underwriters Laboratories) Zero Waste to Landfill Certification:
by 2030/2050 evaluates a company's resource circularity efforts and assigns four levels of purchased by DX Division1)
‧ Cumulatively collect 10 million tonnes of
certification based on the percentage of waste generated by a business that is
e-Waste by 2030 and 25 million tonnes by diverted from landfills. Platinum 100%, Gold 95-99%, Silver 90-94%, Certified 1) Weight based. Recycled resin rates differ by part
2050 80% or higher (decimals are rounded up, 99.5% is rounded up to 100%)
E-waste Collection System Extend Product Lifecycles
The DX Division is operating various recycling programs for waste We research and apply ways to extend our product life cycles considering Platinum Certification1) Gold Certification1)
products regardless of brand in over 70 countries including the Republic their impacts on the environment, given shorter product life cycles Korea: Suwon, Gwangju Korea: Gumi
of Korea. We consider national traits in operating our e-waste recovery increase resource usage and carbon emissions. In addition to enhancing Global2): (Chennai, Noida), Global2): Hungary, Vietnam
Brazil (Campinas, Manaus), Poland, (Ho Chi Minh), Thailand, Mexico
and recycling programs, either directly operating recycling centers or our products’ durability and repairability and upgrading their software,
Egypt, Vietnam (Hanoi (2)), (Queretaro), Indonesia, United
collaborating with recycling associations and companies. we replace all used parts with 100% authentic Samsung parts through
Mexico (Tijuana), Turkiye States, Malaysia
We have recovered a total of 6.297 million tonnes of e-waste from our Certified Re-Newed (CRN) program in the United States, England,
1) As of March 2024
2009 to 2023. We will expand our waste product recovery system to all and France (as of March 2024). All CRN approved smartphones have new 2) Global refers to all non-Korean regions
countries with product sales, or approximately 180 countries, and plan batteries installed. We extend our product lifecycles by collecting used
to recover a total of 10 million tonnes of e-Waste by 2030 and 25 million smartphones and selling CRN approved smartphones via such trade-in
Business Site Zero Waste-to-Landfill Roadmap
tonnes by 2050 from 2009. programs.
2021 ‧ DX Division obtained first Platinum Zero-Waste-to-Landfill in
E-waste Take-Back Operation Activities to Extend Product Lifecycles our Slovakia site1)
1) from global safety certifier UL(Underwriters Laboratories)
Recycling Programs Waste Product Requirements for Increase Durability Consider Reparability
by Country Recovery System Recycling Service 2023 ‧ DX Division received Platinum certification at 14
by Region Partners Upgradability Product Repair Services manufacturing sites
2025 ‧ Receive Platinum certification at all manufacturing sites
Research Recycling Technologies

We established the Circular Economy Lab in July 2022, which specializes
Amount of Collected e-waste
(Base year: 2009, Units: 10,000 tonnes)
in research on material recycling process and technology, and the Expanded Business Site Recycled Waste List
application of recycled materials to products to maximize resource
● Annual amount 569.8 629.7 Waste Item Previous Improved
● Cumulative amount 509.9 circularity. Through the Lab, we have collaborated with various research Glass panel with deposition
Landfill Reused into glass raw material
institutions and corporations to research material recycling and waste- for refrigerators
to-resource technologies with the aim of ultimately manufacturing all of Open cell panel for TVs Landfill Reused into cement raw material
55.9 59.9 59.9
our products with recyclable materials. Waste battery Landfill Extracted into valuable metals
Cafeteria waste,
Incinerate Manufactured into fertilizer and feed
2021 2022 2023 Obtain Business Site Zero Waste-to-Landfill Certification landscaping byproduct
DX is targeting Zero Waste-to-Landfill certifications for all of our

manufacturing sites to recycle resources and reduce environmental Reduce Company Waste
E-waste Collection and Recycling Roadmap
impacts. Our manufacturing sites are recycling manufacturing process In order to minimize the use of disposables, the DX Division distributed
2023 ‧ Operate e-waste collection programs in approximately waste, previously sent to the landfill or incinerated, into cement raw reusable bags to all employees in Korea to minimize the use of single-use
70 countries materials and recycled fuel. We have maximized our recyclable waste plastic bags and are using reusable cups and cutlery in Korean business
2030 ‧ Operate e-waste collection programs in approximately 180 sorting capabilities by establishing new waste sorting processes, and site cafeterias and cafes. We also have installed approximately 480
1)
countries and cumulatively collect 10 million tonnes of are recovering energies via heat and steam where materials that are not food processors at our Suwon and Gwangju business sites to sort food
e-waste waste from general waste, converting them into fertilizer. We plan to
recyclable are incinerated. We raised our recycling rate through these
2050 ‧ Cumulatively1) collect 25 million tonnes of e-waste means and plan to acquire the highest level of Platinum Zero Waste-to- strengthen these types of business site waste reduction activities and
Landfill certification at all manufacturing sites by 2025. expand them to other sites.
1) base year of 2009
Zero Waste-to-Landfill Status Company Waste Reduction
Planet / DX Division Direct and the Registration, Evaluation, Authorization, and Restriction
of Chemicals (REACH) Regulation of the EU and the Toxic Substances DX Division Business Site Water Risk Status (as of 2023)
Water &
Control Act (TSCA) of the U.S.. Water Unit Sites Withdrawal Release
EU REACH Declaration Total 1,000 Tonnes 25 17,270 13,042
Pollution
Water Risk Regions 1,000 Tonnes 91) 2,450 1,493
Systemic Water Resource Management 1) Number of water risk sites by country: India(2), Mexico(2), Poland(1), Egypt(1), China(1),
∙R
educe and recycle water used in manufacturing process through Thailand(1), United States(1)
detailed water resource management at global manufacturing sites
The DX Division, based on the Standards for Control of Substances Used
∙O
btain Alliance for Water Stewardship water management
certifications
in Products , performs risk assessments for all business site work
processes and facilities handling substances of concern whenever new
Restore Water Resources
facilities are installed, personnel or process deployed, or work order and
∙ Preserve water resources through water replenishment projects for all
manufacturing sites conditions changed.
∙ Restore 100% of globally used water for DX Division by 2030 We analyze risks upon confirmation based on its occurrence possibility,
Product and Manufacturing Process Substances of Concern (SoC) causal factors, and control measures and predict its potential impacts
Management based on possible accident scenarios
∙ C omply with regulations and strengthen management of SoCs in
Strategy products and business site chemical substance regulation compliance
Activities
The DX Division categorizes used water into sewage, wastewater, process
Systemic Water Resource Management
water, and ultra-pure water to increase the reutilization rate of water Risk Management The DX Division seeks to decrease water withdrawal and increase
used for manufacturing across approximately 20 global manufacturing We perform annual analysis on whether a business site is located in a water reuse at all business sites by means like installing water saving
sites. We calculate monthly reutilization rates by category to reduce water stress or water risk region, detailing potential water resource risks. facilities, treating wastewater, and expanding graywater reuse. We are
the amount of water withdrawn. Furthermore, water that is ultimately We apply internationally recognized water resource management tools also pursuing various water use reduction activities including using
consumed and not returned to the local environment is restored through like the World Resource Institute’s (WRI) Aqueduct Water Risk Atlas1) to
groundwater and rainwater for landscaping and everyday purposes.
external water replenishment projects in an effort to preserve water identify water stress or risk regions, then establish and execute response
resources. strategies per water resource risk based on the Carbon Disclosure
Project (CDP) Water Guidance. Water reduction Water reuse
We also perform Responsible Business Alliance (RBA) assessments of
our suppliers, reviews Water, Sanitation and Hygiene (WASH) services,
1) A queduct Water Risk Atlas standard: Regions evaluated as High(3) based on metrics
including water resource quantitative and qualitative data, regulation and reputation risk
1,553 thousand tonnes 3,470 thousand tonnes
and provides consulting on water resource treatment facilities. Each Withdrawal reduced by 8% Reuse rate increased by 3%
manufacturing site also formed cooperative systems with local Key water resource risk response strategies include preparing for droughts relative to 2022 levels relative to 2022 levels
by installing and operating water storage tanks and reuse facilities to
governments, NGOs, and local residents to protect and improve water
operate manufacturing facilities, preparing for floods through annually
resources in watersheds near our sites. Water Resource Management Process
renewing disaster insurances, and preparing emergency response systems
Water Resource Management Mission and Vision
and performing regular response drills. We also are managing our effluent
We strive to minimize the impact of substances of concern that may standards to legal levels as well as rigorous internal levels and performing
enter our products, as well as chemicals used in the frontlines of various activities raise employee awareness of the importance of water,
manufacturing, on the health of our customers and employees. Our such as partaking in Water Day events.
internal regulations are stringently managed according to global
Water Risk Assessment
standards, including the Restriction of Hazardous Substances (RoHS)
Water Resources Risk Analysis and Countermeasure Strategies
Product and Manufacturing Process Hazardous Substance Pollutant Discharge Minimization and
DX Division Water Resource Flow Chart (2023) (unit: 1,000 tonnes)
Management Incident Preparedness
Source of Supply The DX Division encourages our suppliers to ac tively engage In order to minimize air and water pollutant discharge that occurs during
in environmental management ac tivities through Eco-Par tner the product manufacturing process, we are applying both legal and
Surface Water 16,485 Groundwater 786
Certifications managing hazardous substances in the supply chain. rigorous internal standards for discharge and each manufacturing site
DX Division Suppliers submit product environmental assurance reports that analyzes atmospheric discharge outlets and effluent analysis more often
Production guarantee data and hazardous substance information from their than is legally required.
Process Reuse raw material providers. Samsung Electronics evaluates and certifies
Off-site treatment We secure an additional capacity of more than 10% in our air and water
On-site treatment 3,470 companies’ compliance to Standards for the Control of Substances Used
facilities 10,600 pollutant prevention facilities at all times so as to prepare in advance
facilities
2,442 in Products and only works with certified suppliers.
for sudden pollutant inflow increases, and doubly install key preventive
Control of Substances Used in Products
Discharged into sewage facilities so that even in emergency incidents such as facility breakdown
treatment plant Discharged into river As chemical substance regulations are strengthened world-wide and preventive facility operations are not hindered.
national regulatory subjects and standards become diversified, more
We are also prepared to immediately lock down pollutant discharge
The DX Division’s Suwon, Gumi, and Gwangju business sites obtained professional chemical substance management is necessary. Samsung
through the installment of blocking facilities such as automated
the highest level of ‘Platinum’ certification from the Alliance for Water Electronics regularly updates chemical substance regulation database
floodgates and valves and surveillance facilities such as meters and
Stewardship (AWS) in February 20241). We consider this a testament to for 16 countries with manufacturing sites including China, Vietnam, and
CCTVs at rainwater final discharge locations in accordance to the specific
the superiority of our water resources management system and plan to India, while minimizing risk by applying our own standards and through
traits of treated substances and external watersheds.
expand certifications to global locations like Vietnam’s in 2024. integrative management.
AWS Certifications
We are also enhancing our chemical substances management history Voluntary Local Community Agreements
1) AWS is a global membership collaboration for water management jointly founded by the
UNGC (UN Global Compact), CDP (Carbon Disclosure Project), and other international process and system to readily identify whether internally regulated The DX Division’s business sites entered voluntary agreements with local
organizations. AWS certifies a company’s water resource management system into
three levels of ‘Platinum’, ‘Gold’, and ‘Core’ based on a total of 100 evaluative items like substances are contained in any chemical products that our employees environmental agencies in Korea so as to ensure air quality control and
the company’s ▲water management stability ▲water contaminant management ▲ intend to use, and testing for such chemicals. To secure chemical prevent negative air quality impacts on the local population’s health,
water quality and hygiene ▲impact on aquatic ecosystem in nearby watersheds, and
▲governance structure. substance use safety, we manage all chemicals-related activities from including those of our employees.
procurement to disposal via our system.
Water Replenishment Projects The Suwon site entered into a voluntary agreement to reduce seasonal
Chemical Substance Management Process
Water usage is a necessary part of a product’s manufacturing process particulate matter with the Korean Ministry of Environment’s Metropolitan
Manufacturing Process Used Regulated Substance
and while used water is treated and returned to the natural environment, Air Quality Management Office and is voluntarily reducing key particulate
some water is inevitably consumed in the process. The DX Division matter substance use by over 10% of legal requirements during high
Water Resources Replenishment Roadmap
established a goal to return as much water as is consumed in its ‘100% concentration particulate matter seasons (December ~ March).
water restoration by 2030’ target. We minimize our environmental 2023 ‧ Sign MOU with the Korean Rural Community Corporation , run 3
The Gwangju site signed a voluntary agreement to reduce air pollutants with
impact by returning utilizable water resources to stakeholders and local pilot projects for water resources replenishment in Korea
the Youngsan River Watershed Office of the Environment to reduce annually
communities through such water replenishment projects. For example, 2024 ‧ Expand replenishment projects to 3 Korean sites and across 8 emitted pollutants to less than 95% of legally allowed limits until 2024.
we signed a Memorandum of Understanding (MOU) with the Korean Rural business sites in 4 countries globally*
Community Corporation to support agricultural water reuse in island ‧ Develop additional replenishment projects globally*(11 countries,
communities facing water shortages. In 2024, we will identify and develop 12 business sites)
replenishment projects not only in Korea but around the world where we 2030 ‧ Restore 100% of globally used water for DX Division
have manufacturing sites to contribute to preserving water resources.
Status of Water Restoration in DX Division
DS Division Governance
The Sustainability Committee under the Board of Directors, as our
overarching decision-making body, oversees environmental issues DS Division Environmental Management Governance Bodies
Governance and at large including climate change and water resources, which are key
areas of management directly connected to our company’s business
Sustainability Committee
Major Progress
Reports to Board of Directors composed of independent directors,
and financial success. The Sustainability Committee approves corporate
oversees sustainability strategy/progress at least once per quarter
environmental management strategies/targets, oversees key relevant
activities, and makes key decisions. In the DS Division, the ESG
ESG Management Council
Management Council (CEO-presiding) reviews strategies, targets, and
Discuss sustainability issues at least once per quarter with executives
progress for our environmental management.
of all relevant units and chaired by head of Division
DS Division Sustainability Management Meetings chaired by the Corporate
Management Office head makes decisions on detailed strategies, and the Net Zero Committee DS Sustainability Management
Net Zero Committee chaired by the FAB Engineering & Operations Head Meetings
Engineering & Operations Head
sustainably pursues its environmental strategy. Working committees presiding, discusses carbon Corporate Management Office
in the carbon, pollutants, waste, and water reuse fields develop action relevant issues every other head presiding , discusses ESG
month issues at least once per quarter
items and review progress based on this decision-making process.
The DS Division has assigned items such as GHG emission reduction,
renewable energy transition, and electricity use reduction as core Environmental
categories in evaluating the performance of executives and organizations, Carbon Reduction Reuse Expansion
Preservation
Committee Committee
depending on the responsibilities (including for the Chief Safety Committee
Officer as the officer overseeing our manufacturing). We will continue Climate Change Pollutants, Waste Water
connecting environmental progress results with rewards to reinforce our
environmental management system.
Environmental Targets and Major Progress in 2023

Environmental Targets Progress in 2023
Net Zero 2030 2050 · Expanded installment of process gas treatment facilities (RCS)
· Develop innovative technology to improve process gas treatment efficiency · Achieve Net Zero (Scope 1, 2) for · Reduced fuel usage of boilers through expansion in
· Improve energy efficiency of FAB facilities through cooperation with facility DS Division waste heat recovery
companies · Expand renewable energy such as signing new solar power PPAs
Water 2024 2030 · Developed ecological status maps for areas influenced by DS
Resources · Expand ecological status map development for areas influenced · Reduce DS Division water withdrawal at Division sites (Giheung, Hwaseong)
by DS Division business sites Korean business sites to 2021 levels · Obtained first AWS Platinum certification in Korea in
· Expanded sites with AWS1) Platinum certification(Giheung, ※ through means such as reuse of effluent water from March(Hwaseong)
public wastewater treatment plants
Hwaseong, Pyeongtaek, Xi’an)
1) Alliance for Water Stewardship
Waste 2025 2030

Climate Change · Obtain highest grade in Zero-Waste-to-Landfill (Platinum) · Achieve 99.9% waste recycling rate for
·M
aintained high level Zero-Waste-to-Landfill certifications1)
1) 7 Platinum, 1 Gold
Water certification for all manufacturing sites DS Division Korean manufacturing sites · Achieved Korean manufacturing site waste recycling rate of
98.4%
Waste
Pollutants 2030 2040 · Developed high efficiency air, water pollutant treatment
Pollution · Zero detection rate in sections where workers are · Treat DS Division manufacturing site air, facilities and processes that don’t use pollutants
directly exposed to chemicals water pollutants to natural levels · Managed chemical substances exposure at levels 10% lower
※ Develop new technology to treat pollutants to natural than legally required
levels
Planet / DS Division Climate-Related Financial Risks and Opportunities Activities
Assessment
Environmental risks and opportunities affect not only products and
Climate Change
We conducted a pilot assessment of future financial impacts using
services but also manufacturing processes, supply chains, R&D, and
2021 as a base year to respond to shifts in the industry paradigm due
other business activities. The DS Division monitors risks from global
to climate change. Because understanding climate related risks and
operations according to risk management processes and manuals in
opportunities is important for creating new businesses and entering
environmental safety, climate change and energy, and compliance. We
future markets, we identified physical and transition risk factors from
have established and disclosed our environmental safety policies.
climate change and analyzed their financial impacts.
The DS Division identified heat waves, storms, and coastal erosion as Direct GHG Emission Reduction
key physical risks. We installed rain screens at our manufacturing sites, The DS Division's direct carbon emissions (Scope 1) are mainly due to the
and accounted for the highest level of wind speed recorded-capable use of process gas during the semiconductor manufacturing process
of significantly impacting semiconductor production facilities-when and use of fuels such as LNG. By 2030, the DS Division plans to develop
establishing wind resistance standards during facility construction. The innovative technologies that will significantly improve the efficiency of
DS Division will consider such key issues when selecting new business process gas treatment and expand carbon emission reduction facilities
sites and expanding production lines. We identified cost increases on production lines. In addition, to reduce the use of LNG boilers, we will
due to GHG emission increases to be a key transition risk, thus we expand the utilization of waste heat and consider introducing electric
Strategy are continuously investing in reducing emissions including installing heat sources. We also plan to convert 100% of Korean business vehicles
The DS Division announced net zero Scope 1, 2 emissions by 2050 in the additional RCS1), or process gas treatment facilities. to zero-emission vehicles (electric and hydrogen vehicles) by 2027.
New Environmental Strategy in 2022. We are strengthening our carbon 1) Regenerative Catalytic System
reduction activities through various projects including GHG treatment

Climate Change Risk Assessment GHG Emission Reduction Roadmap
and energy efficiency improvement technology implementation and
cooperation with government and industrial bodies. Physical Risk: assessed impacts on corporate value due to 3 of 10
2023 ‧ Operate bimonthly Net Zero Committee and Carbon Reduction
identified major climate related disasters (heat wave, storm, coastal
1
Committee to establish and execute DS Division GHG reduction
erosion) based on RCP ⁾ 8.5 (greater than 4℃ increase)
Risk Management action items
Transition Risk: estimated impacts on corporate value of GHG emissions ‧ Expand process gas treatment facility (RCS) installation
The DS division identifies regulation risks and opportunities by country (Scope 1, 2, 3) at large focusing on low carbon transition under NGFS2) ‧ Reduce LNG boiler usage through expansion of waste heat
related to climate change and integrates them into our company risk scenarios of the REMIND3) model based on SSP4) recovery
management system. Risks and opportunities include global regulations 1) Representative Concentration Pathway 2024 ‧ Develop/apply high efficiency RCS catalyst
and market trend change by region that can impact our business 2) Network for Greening the Financial System
‧ Expand the utilization of waste heat recovery system
3) Regional Model of Investment Shared Socioeconomic Pathways
and reputation. Identified risks and opportunities are reported to 4) Shared Socioeconomic Pathways
2030 ‧ Develop innovative technologies for improving process gas
management through relevant environmental governing bodies. treatment efficiency
‧ Improve energy efficiency of FAB facilities through cooperation
Climate Change Risk
Climate Change Risk Management Process with facility companies
Physical Risk Transition Risk
‧ Integrate climate change related regulation risk by country into company 2050 ‧ Achieve net zero Scope 1, 2 emissions for DS Division
‧ Heat wave, extreme cold, storms, ‧ Cost increase due to GHG emission
risk management system
coastal erosions, etc. increase (Scope 1, 2, 3)
‧ Risks include global regulations and market trend change that can impact ‧ Damage-related costs from 10 extreme
company business and reputation climate and natural disasters
Climate Change Risk and Opportunities
Process Gas Emissions Reduction Fuel Use Reduction Renewable Energy Status by Key Region
The DS division is reducing direct GHG emissions by increasing process gas The DS Division recovers and recycles waste heat generated during U.S. In November 2019, we signed a PPA for 75MW of wind power with
treatment efficiency, reducing gas usage, developing alternative gases, and business operations to reduce the amount of fuel (LNG) used within Apple, eBay, and Sprint to source renewable energy for U.S. Austin sites.
continuously expanding investment in RCS facilities. business sites. We maximized recovery of waste heat generated from Based on such efforts, the U.S. subsidiary achieved the transition to 100%
facility cooling water/wastewater effluents at our Giheung, Hwaseong, renewable energy in 2020. The U.S. subsidiary also received the Green
and Pyeongtaek plants to use as a heat source for process water and air Power Leadership Awards for Excellence in Green Power Use from the U.S.
1 Process Gas Treatment
conditioning systems. This has the effect of reducing GHG emissions by EPA (Environmental Protection Agency) in September 2019.
‧E
xpand installations of large-scale process gas treatment
systems (RCS) reducing the amount of LNG used as a conventional heat source. The DS
China Our China operations have converted 100% of their electricity
‧D
evelop and apply new catalysts, increase process gas Division plans to develop technologies to improve waste heat recovery
treatment efficiency (up to 97%) to renewable energy in 2020. We will gradually diversify our portfolio
rates and introduce/expand facilities that can replace LNG-based heat
in accordance to local renewable energy-related schemes and market
2 Reduce Process Gas Usage sources to minimize direct GHG emissions at its sites.
conditions.
‧O
ptimize process time, steps, and Clean Recipe to minimize
the usage of process gas
Fuel Use Reduction Activities Korea The DS Division signed a PPA with SK E&S in Nov. 2023 and with
3 Develop alternative gases Samsung C&T in Mar. 2024 to supply approximately 76.2 GWh of renewable
‧D
evelop alternative process gases with low global warming LNG Use Reduction
‧ Maximized waste heat recovery using cooling water/wastewater effluents energy annually from a 60 MW solar power plant for 20 years for a total of
potential and replace PFCs in some product processes
(Developed ‘G1 gas’, an alternative to C4F8) ‧ Evaluated facilities that can replace LNG-based heat sources 1,466 GWh1) of renewable energy, starting in 2025. So far, we have installed
a total of 2.8 MW of solar power generation facilities and generated 2.8GWh
of energy in 2023 for on-site use. We also installed 1,372 RT 2) worth of
Large Scale Integrated Process Gas Treatment Facility (RCS ) The DS Division
1) DS Division GHG Emission geothermal heating and cooling facilities at our Korean business sites,
Reduction Project Progress in 2023
developed and is using the semiconductor industry's first and only large- including 1.5 MW at the Giheung site and 0.7 MW at the Pyeongtaek site.
(Unit: tCO 2 e) 8%
scale integrated process gas treatment facility, known as RCS. RCS We will continue to expand both PPAs and facilities utilizing renewable
collectively treats process gas at site rooftops using catalysts by leveraging ● Process Gas Treatment Facility energy.
Operation
36%
the feature that all facility outlets are connected to rooftops. Compared to
10,059
● Renewable Energy Use 1) accounting for reduction in guaranteed supply due to solar panel degradation
2) Ton of Refrigeration
● Process Efficiency Improvement
existing individual treatment facilities, the DS Division’s RCS can treat gas at & Alternative Gas Use 1,000tCO e
2
56%
a lower temperature, reducing fuel use and generating fewer air pollutants
such as nitrogen oxides. We continue to reduce our direct emissions by
installing new RCS facilities on lines that can be installed, 16 process gas
treatment facilities (RCS) were built in 4 production line buildings in 2023.
1) Regenerative Catalytics System
Expand Renewable Energy Use
While the DS Division has a large electricity demand due to its industrial
The RCS Treatment Process
nature, Korean renewable energy supply conditions are relatively
1 Pre-treatment scrubber: treats high concentration acidic gas
unfavorable compared to major countries overseas. We nevertheless
2 RCS facility: uses catalysts to decompose PCFs (perfluorocarbons)
at low temperatures plan to transition our global power use to renewable energy by 2050.
3 Post-treatment scrubber: HF (hydrogen fluoride) treatment Additionally in the United States and China, where we already achieved our
4 Primary acid scrubber: primary treatment of acidic gas using renewable energy targets, we will expand our power purchase agreements
cleaning facilities (PPAs) focusing on regions with existing renewable energy supplies.
5 Secondary acid scrubber: secondary treatment of acidic gas to
minimize atmospheric pollutants
Reduce Electricity Use Semiconductor Product Life Cycle Assessment (LCA)
Memory Semiconductors
The DS Division is optimizing our improvements to the semiconductor Process
manufacturing process to minimize the increase in GHG emissions by Reduce global data center power use The DS Division has established a Life Cycle Assessment (LCA) process
reducing power use through shortening facility test times, improving ‧ Develop data center specific high-performance SSDs1) and improve to identify environmental impacts and calculate the carbon footprint
operating temperature conditions for auxiliary facilities, and applying energy efficiency over previous generation products
of semiconductor products throughout their entire life cycle. We also
- PM9D3a: approximately 60% more energy efficient than PM9A3
high-efficiency equipment. We also aim to increase power efficiency by completed third-party verification of the LCA process in accordance
replacing and supplementing facilities and optimizing operations. Develop next generation low-power DRAM
with ISO 14040, 14044, and 14067 international standards to ensure the
‧ Minimize power consumption and improved performance over the
reliability of the data generated through the process.
previous generation with such new technologies as EUV2), HKMG3), TSV4),
Electricity Use Reduction Activities and DVFS5) Based on this experience, the DS division has built its own automated
- LPDDR5X: Achieved 20% reduction in power consumption compared to carbon footprint calculation system, which calculates the emissions of
Reduce electricity use in semiconductor manufacturing process the LPDDR4X
final products based on the emissions of each unit of the semiconductor
‧ Shorten facility test times ‧ Develop energy saving technologies - LPCAMM2: Achieved 60% less power consumption compared to the
SODIMM
produc tion process to reflec t produc t charac teristics such as
‧ Improve auxiliary facility operating for facility power
temperature conditions ‧ Apply Sleep Mode to production miniaturization.
1) Solid State Drives 2) Extreme Ultra Violet 3) High-K Metal Gate
equipment 4) Through Silicon Via 5) Dynamic Voltage and Frequency Scaling
In the long term, we will strive to minimize our environmental footprint by
‧ Use energy saving technologies
establishing a comprehensive management system to evaluate not only
such as energy efficient chillers
System Semiconductors carbon emissions but also the overall environmental impact, including on
water and other resources.
Value Chain Carbon Reduction Reduce power use and develop high-performance semiconductors LCA Third Party Verification Statement
‧ Mobile processor Exynos 2400: Installed deca-core CPU1) and hexa-
Since 2009, the DS Division showcased low-power memory solutions
core GPU2) to reduce power usage on mobile devices, improved CPU Strengthen Other Indirect Emissions (Scope 3) Management
every year.
performance by 70% compared to previous generation products and Identify Reduction Action Items
We are also strengthening our technical capabilities to increase product ‧ I mage Sensor: Develop leading micropixel technology to maximize The DS Division has been operating a company internal committee
energy efficiency, reducing carbon emissions in product use phase through resolution and minimize required energy for HDR3) movement through
since 2022 to strengthen our Scope 3 management and reduction. In
design optimization
the development of innovative ultra-low power technologies. We are 2022, we enhanced our Scope 3 calculation methodology by category
1) Central Processing Unit 2) Graphics Processing Unit
obtaining various environmental certifications through key product carbon 3) High Dynamic Range and completed third party verifications. We will continue to enhance
footprint and carbon reduction factor calculations. our calculation methodology for more accurate emission calculations.
In particular, we plan to secure ultra-low-power technologies that will Calculated Scope 3 emissions are disclosed through channels like the
enable us to significantly reduce the power consumption of memory Sustainability Report and Carbon Disclosure Project (CDP) reports. Also,
used in data centers and mobile devices in 2025. Scaling down of we continue to identify various reduction action items in our supply chain,
semiconductors and advances in low-power design technology will not resource circularity, logistics, and other subjects to establish mid- to long-
only contribute to reducing GHG emissions by reducing the power used term reduction targets and have implemented pilot projects for hydrogen
by various IT products and data centers but will also allow us to develop vehicles in our Pyeongtaek site’s employee transit buses.
products with the same performance using fewer raw materials.
Planet / DS Division Water Risks and Opportunities and Response Strategies
Reduce Water Use
The DS Division applied the WRI Aqueduct Water Risk Atlas, an
‧ Optimize manufacturing process to reduce manufacturing
Water
use water internationally recognized water resources management framework
‧ Stop water supplies to non-active facilities and tool, to identify water resource risks1). We identified 4 risks factors
‧ Manage facility water use time and 1 opportunity factor and establish response strategies by region
‧ Improve processes for facility operations
accordingly.
Ecological Preservation 1) A queduct Water Risk Atlas standard: Regions evaluated as High(3) based on metrics
‧ Secure stream flows by release cleanly treated water including water resource quantitative and qualitative data, regulation and reputation risk
‧ Contribute to improving water quality and enhancing biodiversity
Water Risks and Response Strategies

Droughts, Water Outage
Risk Management ‧ Diversify water sources: establishment of emergency supply system
capable of providing water from water suppliers; alignment with criteria
The DS Division has established an ESG risk management system to
set by water suppliers when evaluating water risks
identify ESG risks including for water resources. Key management risks ‧ Calculate expected drought damage costs
based on monitoring and risk assessment are reported to executive Increases in South Korean Water Stress Index
management and ultimately applied to DS Division sustainability ‧ Annually review business site water stress/risk levels, detail risks and
Strategy strategies. prepare response strategies accordingly
As Samsung Electronics expands semiconductor lines in Korea, the Water Resource Depletion, Pollution
Site Water Stress Level
amount of industrial water required for DS Division manufacturing sites ‧ Participate in activities commemorating World Water Day to raise
Korea (Giheung/Hwaseong/Pyeongtaek/Cheonan/Onyang) Medium-High awareness of the importance of water
in 2030 is expected to continue to grow from 2021 levels. In response, we
China (Xi’an/Suzhou) Extremely high ‧ Engage with local communities including joint activities for water risk
have set a 2030 water intake reduction target aimed at reducing water
prevention and river and marine ecosystem conservation with public,
consumption to 2021 levels and are striving to achieve this goal through China (Tienjin) Medium-High
civic, and academic organizations in proximity to our business sites
various efforts, such as building wastewater reuse systems and signing United States (Austin/Taylor) Medium-High
Water Regulations
agreements to reuse our treated sewage effluents. The DS Division will ‧ Observe local environmental policies and regulations
continue to work on minimizing our water resources impacts of Korean ‧ Maintain management standards at legal levels as well as rigorous
and global manufacturing sites. internal levels
Water Opportunities and Response Strategies

Expand Water Reuse Secure comparative competitiveness through value chain water
resources management support
Establish Water Reuse System ‧ Annually monitor water use savings, share water use savings knowhow,
‧ Maximize industrial water reuse rate through wastewater effluent reuse and seek partner company cooperation through value chain water
system and invest in new technology development footprint management
‧ Apply technology for wastewater by concentration levels
‧ Reuse concentrated wastewater generated during ultra-pure water
production
‧ Develop membrane-based water reuse technologies
Utilize External Wastewater

‧ E xpand water supply through agreements to expand wastewater reuse
Water Resource Regulation Risk and Opportunity Water Resource Management Process
Water Resources Management Roadmap
Management The DS Division, to increase our manufacturing process water reuse rate,
The DS Division is actively responding to regional regulation changes classify our water resources into sewage, wastewater, process water, and
2023 ‧ Develop ecological status map for areas within DS Division site
including such laws like the Water Environment Conservation Act, the influence (Giheung, Hwaseong) ultra-pure water and manage them by entering reuse rates per category
1)
Promotion of and Support for Water Reuse Act , the Water Supply and ‧ March – obtain AWS Platinum certification, a Korean first per site in our environment management system on a monthly basis.
(Hwaseong)
Waterworks Installation Act, and the Sewage Act in Korea. According to We prevent cont aminat ion wi t h si te - ins t alle d groundwater
health and safety protocols we continue to modify our health and safety 2024 ‧ Expand ecological status map for DS Division (Pyeongtaek, contamination prevention facilities and safely treat effluents via on-
incident management policies and manage water resource outflow at Cheonan, Onyang)
and off-site treatment facilities. We apply legal and rigorous internal
‧ Expand AWS Platinum certified sites (Giheung· Hwaseong,
both legal and rigorous internal standards. We deliver our opinions on management standards when directly releasing effluents to stream via
Pyeongtaek, Xi’an)
policies to regulation agencies via communication channels such as on-site treatment facilities.
relevant associations and indirectly participate in water related policy and 2030 ‧ Net zero water withdrawal increase for DS Division Korean sites
compared to 2021 levels
regulation improvement.
※ by means such as wastewater treatment plant effluent reuse
DS Division Water Resource Flow Chart1) (2023) (unit: thousand tonnes)
Our Giheung, Hwaseong, Pyeongtake, Onyang sites have earned
the Green Company status under Article 16-2 of the Environmental Source of Supply
Technology and Environmental Industry Support Act, as assigned by the Water Use Reduction
Ministry of Environment to applicable companies in accordance with the The DS Division’s manufacturing sites reduced our water use through Surface Water Groundwater
Act’s Enforcement Decree. Green Company designation is dependent operation optimization, changing wastewater treatment methods and 160,090 0
on meeting all qualifications including environmental assessments, process control values. We will maximize water reuse through systemic
DS Division
pollutant management status, environmental improvement planning, and enhancements including for the production process or reuse systems
Manufacturing
demonstration of compliance with environmental laws. In addition, the and for our low concentration wastewater reuse. We also plan to reuse Process
DS Division has also performed environmental management activities in Off-site treatment Reuse
public wastewater treatment plants’ effluents.
On-site treatment 119,421
setting management standards at legal and rigorous internal levels and facilities
71,800 facilities
was designated Green Company status in recognition of such activities. 63,942
DS Division Annual Reduction
1) Promotion of and Support for Water Reuse Act Total Water Reuse
of Water Use
Discharged into river
Activities 12,7101) 119,4211) Discharged into sewage
treatment plant
58,153
thousand tonnes2) thousand tonnes
1) Based on global manufacturing site annual
Expand Water Reuse 1) approximate 1) approximate cumulative usage
The DS Division is reducing our newly withdrawn water by maximizing 2) Amount relative to water use
under business as usual conditions
our process water reuse. DS Division required water withdrawals are such as not performing water
saving projects Acquiring Alliance for Water Stewardship (AWS) Certification
forecast to continue growing by 2030 relative to 2021 levels, but we will
maximize our water reuse to reduce withdrawal to 2021 levels. The DS Division’s Hwaseong site obtained the highest level of Platinum
Daily reduction activities Systemic improvements cer tification from the Alliance for Water Stewardship in March of
Water Reuse (units: thousand tonnes) ‧E
nhance manufacturing process 2023. We have since expanded our Platinum certification status to our
‧O ptimize site operations
‧P
rocess optimization: reduce Giheung·Hwaseong and Pyeongtaek sites in January of 2024 and to our
‧R eplace aged facilities
2021 89,977 ultra-pure water usage Xi’an, China site in February of 2024. Samsung Electronics plans to expand
‧ I mprove operation standards
2022 113,108 ‧E
stablish reuse system AWS certifications to our key global sites.
AWS Certification Progress
2023 119,421
Ecological conservation Biodiversity Recovery and Conservation efforts
Woncheon-ri Stream-Hwangguji Stream, Hwaseong
In order to secure the ecological health of discharging rivers and Osan stream near the Giheung site is fed with a daily average of 45,000
‧8 families and 21 species of fish (dominated by freshwater minnows, crucian
preserve their biodiversity, Samsung Electronics' DS Division has been carp, common carp, and goby minnows) tonnes of purified effluents from our site, and the stream ecosystem
conducting river monitoring and conservation activities since 2007 at ‧ 3 7 families and 57 species of benthos (high proportion of aquatic insects) has been restored to the point where otters (Class I endangered wildlife,
‧ 1 ,369 counts of 34 bird species (Class II endangered wildlife bean goose Korean Natural Monument) now inhibit the area. In 2023, we conducted
Osan Stream, which activity has now been expanded to all worksites.
spotted)
Furthermore, we are in the process of establishing an ecological status ‧9 species of mammals (class I endangered wildlife Eurasian otter and class II the first analysis using genes in otter feces and confirmed that at least
map of areas under DS influence, which analyzes and evaluates the endangered wildlife leopard cat spotted in Huangguji Stream) four otters (three males and one female) live along Osan stream and
‧W ater flea acute toxicity test shows no ecotoxicity impact to streams from discovered traces of various mammals such as leopard cats, raccoon
current status and impacts on the natural and ecological systems
effluents
around the business sites in various ways, starting with the Giheung and dogs, and water deer. We also conducted removal of wildlife that
Hwaseong sites in 2023. Osan Stream, Giheung disturbed the ecosystem, and our employees in cooperation with local
‧ 1 2 families and 26 species of fish (dominated by crucian carp, common carp, residents planted native riverside plants and cleaned up the stream.
Stream Ecosystem Management bass, and freshwater minnows)
‧ 37 families and 55 species of benthos (high proportion of aquatic insects) The Hwaseong site has featured a natural area of approximately
Korean sites regularly measure water quality indicators such as biological
‧ 8,861 counts of 90 bird species (8 class II endangered wildlife including the 290,000 m 2 including the Donghak Mountain conservation forest
oxygen demand (BOD), total phosphorus (T-P), pH in discharge rivers, common spoonbill, eagle, hawk, bean goose, and long-billed plover spotted)
‧ 5 species of mammals (class I endangered wildlife Eurasian otter,
(46,000 m2 of natural forest) within the site. In accordance with the
and biological indicators such as fishes, benthos, birds, and mammals in
class II endangered wildlife leopard cat spotted) Korean Environmental Impact Assessment Act, the site preserved a
order to manage and monitor their impact on the ecosystem. Based on
‧ Otter gene survey1) confirmed existence of at least 4 Eurasian otters percentage of the natural area in consultation with the project approval
these monitoring results, we carry out activities to improve and preserve (3 male, 1 female)
‧ Water flea acute toxicity test shows no ecotoxicity impact to streams from
agency and created ecological ponds, landscape ponds, and recreational
the natural environment and biodiversity.
effluents forests. In addition, our Onyang and Cheonan site has been working
1) Survey process: Collection of otter feces → Amplify mitochondrial DNA →
Freshwater Ecosystem Monitoring and Improvement with public-private partnerships since 2006 to install sand collectors,
Sequence analysis using genetic markers
In order to protect the ecosystem and biodiversity of rivers near our sites, remove ecosystem disturbances, and collect ocean waste at least
we regularly monitor the status of aquatic ecosystems (fishes, benthos, Seojeong-ri Stream – Jinwi Stream, Pyeongtaek biannually to preserve the ecology and landscape of the Sohwang Sand
‧ 5 families and 15 species of fish (dominated by freshwater minnows, crucian
vegetation, etc.), terrestrial ecosystems (mammals, birds, etc.), water Dune1) in Boryeong, Chungcheongnam-do, South Korea. The entirety
carp)
quality, vegetation, and biological habitats to identify impacts on the ‧ 2 3 families and 32 species of benthos (high percentage of aquatic insects) of the Dune is well preserved and designated as an ecological and
ecosystem in accordance with the Guidelines of the National Institute of ‧W ater flea acute toxicity test shows no ecotoxicity impact to streams from landscape conservation area and a coastal landscape reserve (Ministry
effluents
Environmental Research¹⁾. of Environment, Ministry of Oceans and Fisheries), and is home to
1) National Institute of Environmental Research Notification 2024-1, enacted on Jan. 1, 2024 Gokgyo Stream, Onyang-Cheonan endangered wildlife such as the Mongolia racerunner (Eremias argus)
‧ 8 families and 23 species of fish (dominated by freshwater minnows, goby and Swinhoe's egret (Egretta eulophotes).
minnows, and stone moroko) 1) Sohwang-ri Coastal Sand Dune, the only unspoiled coastal dune in Korea (2 km of coastline
‧ 34 families and 45 species of benthos (high percentage of aquatic insects) and an area of about 120,000 m2), home to 391 species of flora and fauna, including many
‧ 684 counts of 34 bird species (Class II endangered wildlife long-billed plover, endangered wildlife.
kestrels spotted)
‧ 9 species of mammals (class I endangered wildlife Eurasian otter, class II Wildlife near Osan Stream Wastewater Outlet
endangered wildlife leopard cat spotted)
Jiaohe Stream, China

‧8
families and 21 species of fish (common carp, crucian carp, etc.)
‧ 5 3 families and 92 species of benthos (high percentage of arthropods)
‧ Ecotoxic luminescent bacteria composite toxicity test SOS/UMU genotoxicity
testing shows no stream impacts from effluents
Eurasian Otter Leopard cat Water deer
Planet / DS Division Risk Management Activities
The DS Division has implemented an ESG risk management process to Developing waste recycling technologies
Waste
identify significant waste-related risks stemming from our materiality Wastewater Sludge Recycling
assessment. Adhering to ISO 14001, ISO 50001, and other environmental The DS Division routinely analyzes the composition of wastewater sludge,
management system standards, the EHS Center, DS Sustainability which makes up over 50% of the waste generated at DS manufacturing
Management Office, and other pertinent departments evaluate risks sites, aiming to utilize sludge as a resource. By leveraging our analysis of
on an ongoing basis. Key environmental concerns are then reported wastewater sludge that can be monitored through our in-house system,
to management and incorporated into the DS Division's sustainability we have identified and broadened the scope of reclaimed wastewater.
management strategy, inclusive of risk management and identification of We extract copper from wastewater sludge and recycle it. Additionally,
opportunities within relevant councils. we employ various methods to decrease the amount of sludge produced,
such as reducing the water content of sludge and modifying the
chemicals utilized in wastewater treatment plants.
Risk Management Process
1 Identify and assess risks

Evaluating risks associated with business operations, product Korean Waste Recycling Rate Progress and Target
planning, and external trends based on environmental
Strategy management system standards like ISO 14001 and ISO 50001
by relevant departments such as EHS, marketing, sales, and
Waste Recycling Rate at DS Sites
The DS Division is actively working towards achieving a recycling rate 2022 97.8%
compliance.
of 99.9% by 2030 through various activities such as recycling waste, 2 Manage risks and opportunities 2023 98.4%
developing recycling technologies, and minimizing the use of disposable ‧ Monitoring risks and opportunities pertaining to GHG emissions, 2030 99.9%
waste, renewable energy usage, water resources, pollutants, and
products. Collectively, our goal is to attain the Platinum Zero Waste to
more
Landfill Certifications1) at all manufacturing sites by 2025. ‧D iscussing matters at global workplaces during regular
1) Zero Waste to Landfill Certification: Assesses a company's resource diversion initiatives and meetings like the DS Sustainability Management Meeting,
assigns a four-tier rating according to the percentage of waste produced by the business
subsequently making decisions in the ESG Management Commitment to Recycling Semiconductor Process Byproducts
that is diverted away from landfills.
Council. Transition to Recycling We have recycled SUS1) pipes and waste quartz2)
3 Integrate into enterprise risk management processes that were initially disposed after verifying that they are non-hazardous
Develop Waste Recycling Technologies ‧D
esignating significant environmental issues as topics for general wastes through multi-component analyses: certain pipes and
‧ Create technologies to recycle different types of waste, including periodic internal reporting; implementing investment, waste quartz wastes are recycled into raw materials for aluminum alloys
wastewater sludge procurement, and operational plans while reporting on
and glass, respectively.
critical milestones.
‧ Utilize cleanroom supplies like dust-free suits and wipes constructed 1) Steel Use Stainless
from recycled clear PET bottles 2) used in chemical or gas processes
‧ Convert waste wafers into raw materials such as recycled aluminum alloy
‧ Rematerialize organic waste liquids through purification
Achieve Zero Waste to Landfill Certification

‧ Obtained Platinum Zero Waste to Landfill Certifications at 7 DS
manufacturing sites and Gold Certification at 1 DS manufacturing site
Expansion of Reused Materials Absorbents used in the DS Division's Drive to Zero In-house Disposables
Zero-Waste-to-Landfill Certification Progress and Target
air pollutant abatement equipment were previously incinerated, but now The DS Division is providing reusable bags to all employees in Korea,
are being reused, as an adsorbent producer has developed a technology to 2020 ‧8
semiconductor manufacturing sites received Gold Zero-Waste- expanding the use of reusable tableware and reusable beverage cups,
to-Landfill certifications
produce regenerated adsorbents through a firing and molding process. As a and simultaneously replacing plastic beverage bottles with cans, glass
result, we reuse approximately 200 tonnes of waste absorbents annually. In 2023 ‧ Retained Zero Waste to Landfill certification status1) bottles, and paper in order to achieve zero disposables by 2023 at
1) 7 Platinum, 1 Gold certified sites
2019, we developed the world's first regenerated CMP (Chemical Mechanical company restaurants and cafes at all operation sites in Korea.
2025 ‧ Plan to achieve highest designation (Platinum) for all locations
Polishing) pads, which are made of polyurethane and used in wafer polishing,
and registered a joint patent. Currently, we reuse approximately 700 sheets
per month, gradually increasing the number since 2021. Waste Management
Recognition of Circular Resources Disposable Disposable Dinnerware Containers
Updated Recycling Items for DS Division The circular resources recognition policy, in effect since 2018, recognizes plastic bag cups
Waste Item Before After waste material as resources exempt from waste-related regulations on
Wooden parts of composite the condition that said materials meet the standards of the 'Framework
Recycle using material Reduced the use of disposables by 1,007 tonnes per year
materials and outdoor air Incineration Act on Resources Circulation' 1), such as not being hazardous to human
separation technology
conditioning filters
health and the environment. In December 2019, waste materials from
Wafer polishing consumables Extracting precious metals the DS Division's Onyang site became the first in the industry to be
Incineration
containing hazardous materials from consumables for recycling Recycled Packaging Materials
granted the recognition of 'Circular Resources' by the Geumgang River
Recycle as raw material for In 2020, the DS Division started replacing consumer SSD’s1) plastic trays
Pipes Incineration Basin Environmental office. In 2023, we obtained 'Circular Resources'
aluminum alloys to paper trays. By 2023, paper trays were applied to portable SSDs and
recognitions for 6 additional items from the Onyang site, including
Waste oil Incineration Recycling to renewable fuels heat sinks. In 2024, we will introduce paper trays for our 2.5" and M.2
solder ball containers. We reduced the amount of waste generated by
products, as we continue our efforts to reduce plastic packaging in our
Recycled as raw materials for 2,243 tonnes per year through such recognitions. In October 2020, the
Waste glass Incineration products. We also recycle and apply waste aluminum to the cases of
recycled glass
DS Division's Onyang site obtained the Quality Mark Certification for
our portable SSD T7 Shield products. The cases are certified as recycled
Circular Resources for wafer boxes and IC-Trays from the Korea Institute
Achieve Zero Waste to Landfill Certification material by, Germany's private certification authority.
1)
of Environmental Industry and Technology. 1) Solid State Drive
Eight of DS Division's sites have obtained Zero Waste to Landfill
1) T he Transition to a Circular Economy Promotion Act has replaced the Framework Act
Certification from Underwriters Laboratories (UL), a global environment on Resources Circulation on December 31st, 2022. The Transition to a Circular Economy
Promotion Act has been amended and is in enforcement since 2024.
and safety certifier. We maintained UL's highest endorsement of Zero
Waste to Landfill Certification at seven sites, Platinum, in 2023, in
Waste Reduction through Recognition of Recycled and
recognition of efforts such as minimizing residue in chemical storage Recyclable Materials
drums used in-house, recycling waste wafers, and recycling coffee
2022 2023
capsules in offices. Furthermore, we are on track to achieve Platinum
Release film1), paper tubes, Solder ball containers,
certification for all of our operations by 2025. cover trays, etc. reel tape, etc.
1) U.S. Austin site maintains Gold status Total 29 items Total 34 items
Platinum Certified 1)
Gold Certified 1) 1) Release film: a type of film used for product protection purposes
Korea: Giheung, Hwaseong, U.S.: Austin 2021 2,227 tonnes

Pyeongtaek, Onyang, Cheonan 1) As of January 2024
2022 3,024 tonnes
China: Xi’an, Suzhou 20231) 2,243 tonnes
1) Total recycled amount decreased relative to 2022 due to production reduction
Planet / DS Division Risk Management We also monitor upstream and downstream water quality at least
six times a year, focusing on outfalls, to monitor the impact of our
The DS Division shares it s ac tivities for developing pollutant
Pollution
wastewater on local rivers where DS Division discharges wastewater.
reduction technology and reducing pollutants through the bimonthly
Environmental Conservation Committee. We establish and achieve In addition, the DS Division is promoting activities to reduce the amount
internal pollutant management standards that are stronger than the of sulfuric acid used to reduce water pollutants, conducting tests to
current legal standards. convert chlorine-based chemicals for wastewater treatment to non-
chlorine-based chemicals, and is developing new treatment technologies
In addition, we strictly comply with international environmental
such as separation membrane technology and ion separation and
regulations such as RoHS and REACH for responsible chemical
concentration technology to treat and discharge water pollutants at
management, and will continue to monitor and respond to new
natural levels by 2040.
regulatory trends such as PFAS1) systematically.
1) Per- and polyfluoroalkyl substances
Constructing a Multi-Layer Defense System Against Water Pollution
The DS Division is prepared for possible environmental accidents at
Activities
wastewater treatment plants. We have installed triple interception
facilities across the inlet stage, process stage, and discharge stage of
Air and Water Pollution Control Roadmap for Korean Sites
the wastewater treatment plant. Each interlock is activated in real time
Strategy 2023 ‧ Development of highly efficient air/water pollutant treatment to initiate an emergency recovery of wastewater when the pollutant
The DS Division is developing technologies to reduce air and water facilities and of pollutant-free processes concentration is assessed to exceed our standards. This ensures that no
pollution with the goal of reducing discharged pollutants to natural levels 2040 ‧ Treat air and water pollutants at DS manufacturing sites to their untreated wastewater is discharged into the river.
by 2040. We plan to treat water pollutants generated in the semiconductor natural state prior to discharge
※ Develop new technologies to treat pollutants to their natural state prior
production process with more advanced technologies and discharge them
to discharge
into clean water upstream of our manufacturing sites and further develop
technologies to minimize our water impact.
Minimize Water Pollutant Discharge
In addition, to reduce air pollutants, we established the Air Science
The DS Division has established and operates a four-stage wastewater
Research Center responsible for reducing fine dust through research
treatment process to minimize the discharge of water pollutants. At
to analyze root cause of air pollution and to develop fundamental
the Green Center, an advanced wastewater treatment facility, we purify
technology to reduce air pollution in collaboration with global
wastewater and discharge it into local rivers. The Central Control Room
universities and research institutes.
(CCR) monitors all treatment processes from wastewater purification to
Minimize Water Pollutant Discharge discharge in real time, and automates 97% of related tasks.
‧ Reduce chemical usage
‧ Developing substitutes for hazardous materials When discharging wastewater treated through wastewater treatment
‧ Improving the efficiency of wastewater treatment process facilities directly into the sewer, the DS Division applies both legal and
‧D eveloping Chemical Removal Filters
rigorous internal standards in terms of concentration of water pollutants,
‧S eeking alternatives for water treatment chemical and membrane
technologies water temperature, and ecological toxicity. For Korean sites, some
Develop Technologies to Reduce Air Pollution pollutants (TOC, SS, T-N, etc.) are monitored in real time in accordance
‧A
pplying optimal prevention technology to treat air pollutants generated with relevant laws and regulations, while other pollutants such as
during semiconductor manufacturing sulfate, chlorine ions, and fluoride ions are monitored through regular
‧A
dvancing existing processing technologies and research and development
water analysis.
Develop Air Pollutant Reduction Technologies Manage Workplace Chemicals Chemical Substance Safety Management
The DS Division has established a mid to long-term roadmap to reduce All chemicals used in Samsung Electronics' sites world-wide are strictly To minimize damage in the event of a chemical-related incident, we have
air pollution, aiming to discharge air pollutants to a level that does not restricted in line with country-specific laws and regulations and the strengthened chemical management for all buildings in DS Division
affect the surrounding environment by 2040. company's 'Controlled Substance List'. To ensure that employees and sites. At DS Division manufacturing sites, we monitor environmental
We ensure that the treated pollutants meet internal standards that suppliers use chemicals in safe working conditions, we support various regulations by conducting legal impact assessments and chemical pre-
are stricter than the legal emission standards by applying BAT (Best activities such as on-site inspections and workplace improvements. assessments to comply with regulations. We conduct risk assessments
Available Technology) to refine the treatment process for pollutants prior to work involving hazardous tasks, and then apply different levels of
generated in the manufacturing process and applying multi-stage Chemical Management Progress and Target on-site safety management according to the risk level. In particular, we
treatment (3~5 stages) per pollutant characteristics. In particular, we have developed and introduced automation technologies for chemical
are developing new technologies and upgrading existing treatment 2023 ‧ Manage chemicals by setting chemical exposure rate targets
handling tasks and work at heights to eliminate the risk of accidents.
at 10% below legal standards
technologies such as adsorption, combustion, and cleaning scrubbers by We also strictly comply with international environmental regulations by
installing ozone oxidation facilities (De-NOx) to reduce nitrogen oxides, 2030 ‧ Ensure zero incident rates of workers directly exposed to
managing the level of substances of concern in various raw materials for
chemicals
replacing steam supply facilities for boilers, and introducing ultra-low semiconductors such as PCBs, EMCs, and packaging materials used in
NOx burners. the wafer and packaging processes.
In addition, we strive to realize a safe workplace by installing spare Improve Chemical Substance Regulation Response Furthermore, the DS Division conducts semi-annual drills for employees
treatment facilities for all lines and establishing a monitoring system to As global chemical regulations tighten and countries have different and monthly drills for related departments such as the fire brigade and
prepare for possible environmental accidents. regulator y target s and s tandards, more specialized chemical ERT1). Drill themes include substance leakage (chemicals, etc.) to improve
management is required. The DS Division regularly updates and emergency response capabilities in the event of an accident.
Research on Particulate Matter Reduction Technologies
integrates a database of chemical laws and regulations from 16 agencies 1) Emergency Response Team
In January 2019, the DS Division established the Particulate Matter
to minimize related risks.
Research Center (now the Air Science Research Center) to develop
In addition, we strengthened the process by improving the system so Reinforce Chemical Control
new filters and air purification systems to detect, analyze, and remove
that employees can easily recognize whether the chemical products ‧ Automate chemical injection
particulate matter.
‧ Secure firefighting and disaster prevention equipment
they intend to use contain internally regulated substances and conduct a
We developed the world's first air purification filter technology that ‧ Install discharge wall
complete inspection. ‧ Facility-specific overhauls
removes particulate matter and harmful gases simultaneously with a
single filter and can be used for up to 20 years with simple water washing. ‧ Establish system for early detection of and response to leakage
The DS Division is carrying out the Share the Clean Air (ShareAIR) project Chemical Management Process
Minimizing Leakage Risks
to verify original technologies for particulate matter management and to
Pre-inspection ‧ E stablish system to detect and respond to leakage at different points
build an eco-conscious workplace. ShareAIR is piloted in air conditioning including building interiors and exteriors, rainwater drainage pipes, and outer
Expert group commissioned Expert group Chemicals
facilities such as buildings, bus terminals, and underground parking for pre-inspection gives approval purchased fences
lots at the Hwaseong site, as well as in test rooms and offices of partner ‧ F ocus on research related to chemical mixing risks to prevent relevant
companies. We plan to expand ShareAIR applications from 2030. Tracking the Entire Process accidents
Used chemicals are safely discarded through our preset procedures. ‧E stablish chemical mixing prevention system
Voluntary Agreement for Seasonal Control of Fine Particulate Matter Chemicals Identify amount used and Chemicals ‧R einforce construction and work standards around chemicals
The DS Division participated in the Korean Ministry of Environment's brought in inventory discarded
voluntary seasonal particulate matter management (for 2 years between Chemical Substance Safety Management Activities
‧P rovide regular training for handling facilities and personnel
February 2023 to March 2025) to strengthen the target concentration of 3 Steps of Chemical Substitution/Reduction
‧ I nspect handling facilities (usage, storage, etc.)
nitrogen oxide by 10% compared to the legal standard during the control Develop technologies for Apply to mass
Analyze effects ‧ E stablish safety measures for chemical handling facilities with expert
system season (December-March) and agree to operate prevention alternatives, use reduction production
diagnostics from specialized organizations
facilities in optimal conditions.
People
We move together into the future while fulfilling our social responsibility.
31 Our People
39 Sustainability in Supply Chain
45 Empowering Communities
48 Privacy Protection & Security
50 Customer Safety & Quality
People Governance System
The People Team develops training programs on respecting human rights
and related policies for our employees, and leads due diligence programs,
including third-party Responsible Business Alliance (RBA1)) audits and
Our People Board of Directors (Sustainability Committee)
Oversee sustainability direction and implementation

Human Rights Impact Assessments. A designated staff under the People
team manages day to day human rights risks. In 2017, we established the
performance through the Board of Directors and its
European Employee Relations Office (EEO) and hired an external human
Sustainability Committee
rights expert to enhance engagement with external stakeholders.
In addition, the Global EHS Office establishes standards related to
Sustainability Council led by the CEO
occupational health, safety and environment in our workplaces and
supports its implementations in our workplace and supply chain. The
Discuss sustainability issues at least twice per year
with executives of all relevant units
Corporate Legal Office, Investor Relations Team, and the Corporate
Sustainability Center communicate global legislative developments
and stakeholder expectations, including those of investors, within the
organization. The Partner Collaboration Center, Vendor Management
Labor and Human The UniverSE/ Improvement Task Force, and Global Technology Research are
DEI Office
Rights Council DS University responsible for monitoring the implementation of human rights policies
Governance Discuss labor and Plan/execute DEI Integrated
in the supply chains.
1) Responsible Business Alliance: an industry coalition dedicated to responsible business
Samsung Elec tronic s oversees and manages agendas such as human rights risks in strategies and employee training conduct in global supply chains.
labor and human rights, diversity, equity, and inclusion (DEI), and operations and supply programs
chain
talent development across the business at various levels, led by DEI Office
the Sustainability Management under the Board of Directors, the A dedicated organization within the People Team to promote and
Sustainability Council chaired by the CEO, and interdepartmental enhance diversity, equity, and inclusion, the DEI Office establishes
councils. Labor and Human Rights Council company-wide DEI strategies and implements various programs
The Sustainability Committee, reporting to the Board of Directors, The Labor and Human Rights Council is a council of departments that to improve DEI with business units, regional heads, and corporate
provides the Board with more focused oversight of sustainability- discusses labor and human rights matters. The Council consists of representatives. Company-wide issues related to DEI are discussed
related issues. The Committee reviews our sustainability management the People Team, Partner Collaboration Center, Vendor Management through the DEI Council with four departments, including the Corporate
direction and considers issues on sustainability related to employees, Improvement Task Force, Global Technology Research, Global EHS Office, Sustainability Center, Global Marketing Office, Communication Team,
such as labor and human rights, diversity, equity, and inclusion, and Corporate Legal Office, Investor Relations Team, and the Corporate and Design Management Center. Since 2023, the DS Division has been
human resource development, which we consider an integral part of our Sustainability Center. The Council acts as an office to review response operating a DEI Advisory Group as well. In collaboration with external
business-related decision-making process. In 2023, the Sustainability measures to human rights risks, and discusses and coordinates labor experts, we conduct leadership seminars for all our leaders, including
Committee discussed the progress of The UniverSE (University at and human rights issues at Samsung Electronics' business sites and among executives and staff, to improve DEI awareness. We have also
Samsung Electronics) and the status of ESG disclosure requirements and across our supply chains. Depending on the saliency and urgency, agenda developed DEI training videos to educate all employees.
responses. items discussed at the Labor and Human Rights Council are escalated
to the Sustainability Council chaired by the CEO, and the Sustainability The UniverSE/DS University
The Sustainability Council, chaired by the CEO, consists of sustainability The UniverSE is an education governance structure that unifies employee
Committee.
leaders from each relevant department and business unit to review and education organizations that were previously scattered by job function
manage company-wide issues. into one organization, enabling employees to grow independently. In
addition, the DS Division provides job training through DS University.
Strategy Risk Management Child Labor Prohibition Policy
Samsung Electronics considers child labor to be a serious criminal
Samsung Electronics respects the values of human rights, diversity, and Policies act that is unacceptable at any stage of its business activities. We
inclusion based on its ‘People First’ corporate philosophy and strives Samsung Electronics maintains and practices a human rights policy built established and apply a zero-tolerance policy against child labor, which
to ensure that these values are reflected in our corporate practices. In on internationally recognized human rights standards that reflects the is prohibited by international standards and laws.
addition, we continuously promote improvement activities to create executive managements’ commitment to respect human rights.
a safe work environment and create/foster a corporate culture that is Migrant Worker Policy
conducive to work by actively supporting their personal growth. We also We protect the rights of migrant workers, who may be particularly
Samsung Electronics Global Human Rights Principles
conduct activities to expand positive impacts on and mitigate negative vulnerable to the risks of human trafficking and forced labor, and maintain
In Februar y 2023, Samsung Elec tronics released the Samsung
impacts from sustainability issues related to employees. a zero-tolerance policy against workers paying recruitment fees.
Electronics Global Human Rights Principles (the Policy) which outline our
commitment to respect human rights and its basic principles. The Policy Anti-Discrimination and Harassment Policy
Management Process is an expression of our intention to respect the human rights of all people We do not discriminate against any current or prospective employees
in accordance with international human rights standards and principles, based on gender identity, race, ethnicity, nationality, religion, age,
our commitment to prevent human rights violations of our stakeholders marital status, sexual orientation, among others or in HR matters such
that may occur during our global business activities, and our promise as job assignment, promotion, compensation and disciplinary measures.
Governance
of providing effective remedies if any harms occur. The Policy also We also recognize and seek to prevent harassment, which includes
introduces human rights due diligence methods, 11 salient human rights inappropriate, unwelcome behavior and threats that result in physical,
Human
rights due Policies impacts identified as the company's actual and potential human rights psychological, sexual, or economic harm.
diligence risks, and human rights governance addressing how to manage these
Global Grievance Resolution Policy
risks, to fulfill our commitment.
In April 2024, Samsung Electronics unveiled its Global Grievance
Grievance Employee Resolution Policy to handle incoming grievances more fairly and
communi-
Resolution consistently. The policy is the standard for handling all grievances
cation
received by Samsung Electronics, and includes a comprehensive list of
grievance channels, handling procedures, and principles for handling
Respect for International Human Rights Standards grievances. To minimize any gaps between the policy and actual
operations, we reviewed the status of grievance handling operations
Key Sustainability Issues for Employees As a global company with rights-holders around the world,
Samsung Electronics is committed to respecting all human rights
at global business sites, subsidiaries, and all departments that handle
- civil, political, economic, social, and cultural. The international grievances individually or collaboratively gathered together to discuss
Working Conditions
human rights standards that Samsung Electronics respects integrated standards. We also listened to the voices of various internal
‧ Freedom of association and collective and external stakeholders, including employee representative bodies,
include the following:
bargaining intergovernmental human rights organizations, and international
‧ Right to an adequate standard of living ‧ Universal Declaration of Human Rights
organizations with expertise on grievance handling.
‧ Health and safety ‧ International Covenant on Civil and Political Rights
‧ Work-life balance and benefits ‧ International Covenant on Economic, Social and Cultural Rights (ICCPR) Environment, Health & Safety Policy
‧ ILO conventions set out in the ILO Declaration on Fundamental Principles and
Samsung Electronics strives to realize a safe workplace in accordance
Equal Treatment and Opportunity Forced Labor Rights at Work
with its environmental safety policy. To ensure a safe work environment,
‧ United Nations Guiding Principles on Business and Human Rights
‧ Non-discrimination ‧P
revention of forced labor we seek to nurture a safety culture in which all employees participate
‧ OECD Guidelines for Multinational Enterprises
‧ Empowerment of women in the and prevent major disasters and create a workplace without accidents
‧ UN Convention on the Rights of the Child (CRC)
workforce by continuously promoting employee health and improving the
‧ UN Trafficking in Persons Protocol (Protocol to Prevent, Suppress and Punish
‧ Support for employees with disabilities identification of safety risk factors.
Trafficking in Persons, Especially Women and Children)
‧ Talent development Samsung Electronics' various human rights policies and standards
Employee Communication Samsung Electronics' grievance channels are open to internal and
Organizational Culture Diagnostic Results external stakeholders, including all employees of Samsung and all
Employee Representative Bodies
Employee representative bodies communicate with the company to 2012 ‧ Initiated SCI diagnostics (focus on job satisfaction) partners in our value chain, consumers, civil society organizations,
improve working conditions and convey workers' opinions on strategic and others. Most channels are operated at the company level, but in
2022 ‧ Enhanced diagnostics to Organizational Health Assessment
(focus on identifying and improving the strengths and
some countries, we partner with third-party organizations to provide
decisions. The company communicates with employee representative
weaknesses of organizational culture) additional channels.
bodies through collective bargaining and regular meetings, and collect
Complainants can report grievances anonymously. The company
employee opinions. 2023 ‧ E xpanded participation to 132 locations, 210,000 employees
worldwide maintains the confidentiality of received grievances, information
Labor Unions We have 33 labor unions representing our employees ‧ Result: 8 4% overall company satisfaction provided by the complainant and related parties with respect to
at our operations around the world. Samsung Electronics negotiates (up 1%p year-over-year) privacy and data protection rights. Samsung's grievance mechanism
employment terms and conditions and concludes collective bargaining is designed by adopting the effectiveness criteria for 'non-judicial
grievance mechanisms' set forth in Article 31 of the 'United Nations
agreements with labor unions in accordance with respective countries’ Communications with the Executive Management
Guiding Principles on Business and Human Rights'. Received grievances
laws. As of the end of 2023, collective bargaining agreements apply to Town hall meetings are held by the heads of each Division and Business are handled promptly in accordance with internal procedures and
34.5% of all global employees. Unit to share management philosophy, business direction, and effective remedies are provided to complainants in cases where human
major management issues, and to answer employees' questions and rights violations are confirmed. We also investigate root causes and if
Works Councils We have works councils at 45 sites around the world,
suggestions. Team and group leaders also build rapport with employees necessary, change our systems, processes, and work practices to prevent
depending on the laws of each country and the circumstances of each
through monthly meetings and organizational activation events, and recurrence of grievances. Furthermore, we provide training to our
site. Employees at each work site directly and anonymously elect their
listen to employees' concerns through one-on-one interviews and employees and persons in charge of handling grievances on grievance
representatives and works councils at each site meet regularly to
occasional meetings. channels and procedures, listening to and reflecting on their opinions.
discuss wages, benefits, and other issues to improve employees' working
conditions. DX Division Through "DX Connect," a company-wide town hall meeting
hosted by the Division head, all employees communicate about business Grievance Filing Status in 2023
Organizational Culture Diagnostics strategies and issues. We are also strengthening communication
The Samsung Culture Index (SCI) is an annual organizational culture
Total 20,577 cases received
between management and employees through events like the "CEO One
assessment conducted among Samsung Electronics employees Table (small roundtable meetings)," where employees who wish to talk to
99.9% resolved (as of Dec. 2023)
worldwide. The diagnostic areas of the SCI are Work Engagement', executives can apply directly; and the "JH Listens" online program, which Grievances Reported to Channels
‘Team Collaboration', and ‘Company Pride', and for each area, we provide collects employees’ voice on various topics. 30.3% 30.2% 27.5% 12.0%
'outcome' questions to identify the current state of organizational culture
Hotline Online Offline Employee
and 'driver' questions to identify improvement points, making it easy to DS Division We strive to share organizational visions and listen to voices
Representative
identify problems and draw improvements. from our workplaces through various measures like town hall meetings Bodies
and discussion hosted by each business manager/organizational leader.

We perform organizational culture consulting for departments with Grievance Resolution by Type
low SCI. Specialized consultants are engaged as needed to identify Grievance Resolution Suggestions on
Administration Interpersonal
organizational culture issues through surveys and interviews with Samsung Electronics is committed to conducting thorough due diligence Inquiry on HR & Infrastructure Relationships
employees, and the department head and department members work to prevent our business operations from causing or contributing to any 42.8% 19.7% 14.6%
together to come up with a plan to address identified issues. We check adverse impacts on human rights or engaging in human rights abuses.
for actual improvements through pre- and post-consulting Pulse Surveys When an individual or group of individuals submits a grievance for Other Task Health and
11.7% Transition Safety Inquiries
and provide the results to the department head to help them continue to experiencing negative impacts from the company's business activities, 7.2% 4.0%
improve the organizational culture of the department. the company endeavors to provide effective remedies to affected
individuals or groups.
Human Rights Due Diligence work environment, and diversity, equity, and inclusion. The company Human Rights Impact Assessment and Saliency Analysis
Samsung Electronics is committed to identifying, preventing, mitigating, annually assesses each business site’s conditions and conducts a A Human Rights Impact Assessment (HRIA) reviews impacts of business
and remediating actual or potential impacts on human rights across its simplified human rights impact assessment for workplaces in need of activities on rights holders such as employees, supply chain workers,
global operations, supply chains, and other business relationships. We improvement. community members, and consumers. HRIA typically involves more
strive to incorporate lessons and implications gained from human rights in-depth consultation with affected stakeholders than other forms of
due diligence activities into our 'Human Rights Respecting Activities Simplified Human Rights Impact Assessment Our internal labor and human rights assessments. A human rights saliency analysis is a form
Process' to ensure that appropriate policies and management systems of human rights due diligence that focuses on the actual and potential
human rights experts identify business sites that need improvement
human rights impacts based on the severity of the human rights risk
are in place. In addition, the company considers expanding the frequency based on the results of the BHRB, and take an in-depth look at the level
(e.g., the scope, scale, and remediability of the impact) and the likelihood
and types of due diligence as deemed necessary based on changing of respect for labor and human rights in the country of operation, the
of occurrence. A human rights saliency analysis helps companies focus
conditions such as entry into new markets, onboarding of new suppliers, organizational culture assessment results, grievances received, workforce
their resources on managing human rights risks that are likely to have a
or newly identified human rights challenges in certain markets. changes, potential violations of company policies, and previously negative impact, and concludes with the identification of salient human
identified human rights risks. The Simplified Human Rights Impact rights risks.
Samsung Electronics’ Salient Human Rights Impacts
Assessment is a streamlined methodology of a human rights impact
To identify actual or potential human rights risks, Samsung Electronics Samsung Electronics conducted its first human rights impact assessment
assessment conducted by external human rights experts. We conduct
conducts various assessments, including internal experts' assessments at its subsidiaries in Vietnam in 2018 and a human rights saliency analysis
interviews with vulnerable groups in our operations and stakeholders
of our worksites, third-party audits based on RBA standards, and human in Türkiye prior to opening a manufacturing site in 2022.
close to our operations to identify and assess the potential and actual
rights impact assessments conducted by external human rights experts.
We also analyze reports from civil society organizations, media articles, human rights impacts of our operations, execute measures to cease, RBA Validated Assessment Program (VAP)
conversations with various stakeholders such as human rights experts prevent, and mitigate identified impacts, and track our progress. In 2023, As a member of the Responsible Business Alliance (RBA), Samsung
we conducted a Simplified Human Rights Impact Assessment for our U.S. Electronics is committed to implementing the RBA Code of Conduct. We
and investors, and grievances and complaints reported by employees
manufacturing site of the DX Division. We engaged with 'The Center', an conduct RBA Self-Assessment Questionnaires at our manufacturing sites
to identify human rights risks related to our business activities. As a
institute with expertise on children’s rights, to understand actual and every year, and conduct on-site audits based on the RBA's third-party
result, in February 2023, we identified 11 salient human rights impacts
verification (VAP) standards1) at least once every two years at all of our
of Samsung Electronics and disclosed them through the Samsung potential human rights impacts of our operations on employees at the
manufacturing sites, including high-risk sites. Manufacturing sites where
Electronics Global Human Rights Principles. business, our value chain and the community.
non-compliances are found are required to develop a corrective plan to
address the findings and implement systems to prevent recurrence, which
Assessments by Internal Experts Topic-Specific Assessments We created an assessment tool that
is approved by auditors. The approved corrective plan is completed within
Based on the Labor and Human Rights Risk Management System, complies with international standards for vulnerable groups in the
the timeframe set by RBA standards.
Samsung Electronics assesses the level of respect for human rights company such as migrant workers and female employees, and conduct 1) Labor, Health and Safety, Environment, Ethics, Supply Chain Management
at each business site and conducts simplified human rights impact on-site audits. Based on RBA methodology and key industry references,
assessments and topical assessments.
we conduct migrant worker audits in four subsidiaries that employ RBA VAP Performance in 2023
Labor Rights Risk Management System In 2023, we upgraded the foreign migrant workers to ensure compliance with our migrant worker DX Division DS Division
monitoring system, developed in 2013 to support workplace labor rights policy and policy implementation guide.
12 Business Site Audits 3 Business Site Audits
compliance and legal management, to the 'BHRB (Business & Human We also use our Gender Equality Self-Assessment Toolkit, developed ∙ 9 of 15 sites earned full marks with no noncompliances, while 6 sites
Rights Benchmark) System. The BHRB assesses each workplace's with reference to UN Women's Women Empowerment Principles, the had some findings in labor, health and safety, ethics, and supply
chain management
compliance with international human rights standards such as the RBA methodology, and the World Benchmarking Alliance's Gender
→ Corrective actions were completed during the audit for issues
International Labour Organization (ILO) Declaration on Fundamental Benchmark methodology to identify discriminatory practices in the that could be addressed immediately, and countermeasures were
Principles and Rights at Work, and the UN Guiding Principles on Business workplace against female employees. developed and implemented in accordance with VAP standards
for issues requiring more time.
and Human Rights. BHRB consists of 159 detailed indicators of 39 items
under four categories: labor and human rights, organizational culture, 2023 RBA VAP Summary
Activities their local communities and learn from other companies' good practices. and collective bargaining and the do's and don'ts for leaders to ensure
In addition, our human rights training emphasized respect for all employee rights are protected and practiced.
Preventing Forced Labor
employee’s rights and the prevention of forced labor, including content
While there are many factors that can lead to forced labor, recruitment
on forced labor indicators and the employee's right to refusal. In 2023, Protecting the Right to an Adequate Standard of Living
fees that workers, especially migrant workers, pay to find and keep jobs
training completion rate for eligible employees was 95.5%. Paying a living wage is essential to guarantee an adequate standard of
are one of the most widely recognized factors that can lead to forced
living, resolve inequality, and ensure decent working conditions such as
labor situations. Samsung Electronics regularly assesses the overall Ensuring Freedom of Association and Collective Bargaining
decent working hours. While there is no universal consensus on what a
working conditions at its manufacturing sites through assessments by Freedom of association is the right of workers to form and join
living wage is and how it should be calculated, it is generally perceived
internal experts and third-party audits in accordance with the RBA Code organizations. Collective bargaining is one of the key vehicles that help
as an employee’s received remuneration for a standard workweek which
of Conduct, which considers "Prohibition of Forced Labor" as one of the employers and legitimate trade unions jointly work toward fair working
is sufficient for the worker and dependent family members to afford a
key indicators of working conditions. We pay particular attention to conditions, equal opportunities, and sound industrial relations.
decent standard of living. Samsung Electronics is committed to providing
manufacturing sites located in Malaysia, Poland, Hungary, and Slovakia Samsung Electronics respects labor unions and all other forms of
a decent standard of living for its employees, which means providing
that employ foreign migrant workers. We developed a customized employee representative activities. We ensure that no workers are
compensation at a level that meets the basic needs of workers and their
assessment tool for manufacturing sites that employ migrant workers discriminated against, retaliated against, harassed, or adversely affected
families who depend on them.
and conduct various activities to prevent forced labor, including on-site by joining or forming a labor union, requesting collective bargaining,
audits of manufacturing sites and off-site dormitories, as well as face-to- participating in collective bargaining, or exercising their right to organize Samsung Electronics is collaborating with the Business for Social
face interviews with foreign migrant workers to check their working and or bargain collectively. Samsung Electronics engages in collective Responsibility (BSR) to calculate the living wage. To ensure the accuracy
living conditions. In November 2023, Samsung Electronics Malaysia held bargaining with an open attitude based on mutual trust between labor of the living wage calculation, we applied the widely accepted Anker
a compliance conference, inviting the local government, international and management, and strives to resolve issues in good faith and through Methodology, which uses economic indicators published by authoritative
organizations specializing in migration, and suppliers to present the constructive discussions, taking into account the labor practices of the organizations such as the OECD, the United Nations, and Eurostat to
results of key supplier audits, including the main issues found in the respective region. identify items such as household food and non-food expenses, and the
employment of migrant workers, and the company's activities to protect number of workers and dependents in a household in the regions where
We have a labor relations advisory group comprising of 4 external
the rights of migrant workers. In November 2023, our manufacturing site manufacturing sites operate. Based on this calculation, we analyzed the
experts under the Board of Directors, who review labor relations
in Poland participated in a conference organized by a local labor rights living wage gap for manufacturing workers at 20 manufacturing sites
practices at Samsung Electronics and provide mid- to long-term
NGO to showcase the company’s efforts to integrate migrant workers in around the world, and we are improving wages and benefits at some
recommendations on labor relations practices to the executive
manufacturing subsidiaries to align them with the living wage estimated
management and People Team leaders. We also provide annual human
Preventing Forced Labor by the Anker Methodology.
rights trainings for employees on their rights to freedom of association
2019 ‧ International Organization for Migration (IOM) workshop to
raise awareness on labor rights protection (~2022, targeting
Freedom of Association and Collective Bargaining Living Wage Calculation
manufacturing subsidiaries/suppliers employing migrant
workers)
2020 · E stablished the Labor Relations Advisory Group under 2018 · Started to collaborate with BSR to calculate living wages in
2020 ‧ Revised migrant worker policy and developed policy the Board of Directors regions where our manufacturing sites are based
implementation guidelines
2021 · Negotiated with joint labor union bargaining committee and 2022 · Analyzed the living wage gap for manufacturing employees in 20
2022 ‧ On-site/dormitory audits of 4 manufacturing subsidiaries signed the first collective bargaining agreement (Korea) manufacturing subsidiaries
employing migrant workers (with interviews to check working
2022 · Concluded the first wage agreements covering wages, leaves, 2023 · Recalculated living wage in collaboration with BSR and developed
conditions of migrant workers)
and more (Korea) plans to align with updated figures
2023 ‧ USD 136 reimbursement of unpaid transportation expenses for 3
2023 · Conducted quarterly seminars organized by the Labor Relations
newly hired migrant workers
Advisory Group to build healthy labor-management relations
※ Based on average currency exchange rate in 2023: USD 1.00 = HUF 395.0
(Korea)
Health and Safety employees' incident response capabilities and promote safety in their Work-life Balance and Benefits
Samsung Electronics has a health and safety management system for daily lives, including fire evacuation, earthquake response, and emergency Samsung Electronics operates a flexible and efficient work system
each business division, and continuously identifies potential risks and first aid skills improvement. that considers each job function’s circumstances. Employees flexibly
assesses risks. The Head of Global EHS for DX Division and the Head of In particular, the DS Division acquired international explosion-proof structure working hours according to individual circumstances
Global Manufacturing & Infrastructure for DS Division serve as the Chief certifications (IECEx¹⁾ CSF²⁾) in 2022 to prepare for explosion accidents that through the selective working hours system and annual vacation plan,
Safety Officers (CSO) to ensure the health and safety of employees. can lead to major disasters. The Giheung and Hwaseong manufacturing strengthening their autonomy and responsibility and enabling them to
sites became the first in Korea to obtain international explosion proof establish a work-smart culture.
Workplace Safety Management
organization certification in February 2022, followed by Pyeongtaek in July Samsung Electronics also provides a variety of welfare programs to all
Samsung Electronics operates based on a health and safety management
and Onyang and Cheonan sites in October so that all Korean sites operate in employees regardless of contract type to improve their quality of life,
system. All manufacturing sites are required to obtain ISO 45001
accordance with international explosion protection standards. In addition, enhance job satisfaction, boost morale, and enable work immersion.
certification, an international standard for occupational health and safety
a dedicated risk assessment organization composed of experts with In Korea, we provide individual pensions to help employees secure
management. Every year, we conduct specialized environmental safety
internationally recognized certifications such as Functional Safety Expert their retirement and support their families with education and medical
diagnosis to identify potential risks and inspect the implementation of
(FSE) and National Examination Board in Occupational Safety and Health expenses. We also cover employees' medical checkups and group
laws and regulations and facility management sites. A system for major
(NEBOSH) conducts risk assessment expert training courses. insurance, and provide welfare programs that offer benefits tailored to
disaster risk diagnosis is also in place in which internal and external
1) International Electrotechnical Commission Certification System for Explosive Atmospheres their individual lifestyles.
professional organizations participate to diagnose the health and safety 2) Certified Service Facility
management system and standard management status of workplaces,
and continuously identify and address risk factors on site. In addition, Development day for self-improvement (Korea)
Health and Safety 2023 Performance
we conduct various training, education, and campaigns to strengthen If employees meet the monthly required working hours, they can skip work on
DX Division Friday of the pay week to use as time for self-development and recharging.
12,838 cases 2,175,588 hours 461 Remote working for work-family balance
Identified potential Employee safety Risk assessment We are implementing remote working even after the end of the COVID-
Incident Prevention Process Incident Response Process
risks training experts trained 19 pandemic to maintain a better work-life balance, and increasing
1 Identifying risk factors1) 1 Incident occurrence collaboration and work efficiency through remote working under a pre-
∙ Outdated equipment ∙D isseminating information DS Division
∙ Safety regulation about occurrence planned schedule.
compliance failure ∙ I dentifying incident type and 20,452 cases 1,562,325 hours 2,238 Pregnancy, childbirth, and parenting support (Korea)
∙ Inadequate on-site crisis stage
Identified potential Employee safety Risk assessment To ensure that employees' careers are not interrupted by pregnancy
management 2 Emergency action risks training experts trained and childbirth, we expanded the period for female employees to apply
2 Establishing ∙ F orming crisis management
∙ Equipment life span committee for reduced working hours during pregnancy to the entire pregnancy
projection ∙ Implementing emergency period and operate a spousal maternity leave of 15 days (20 days for
∙ Safety regulation evacuation and first aid multiple births) and infertility leave of 5 days with pay. We also support
compliance measures Employee Wellness Promotion
3 Investigation work-life balance by providing non-statutory programs such as spousal
∙ On-site management ∙A nalyzing incident causes Samsung Electronics strives to manage employee health by focusing
system miscarriage and stillbirth leave (3 days with pay). We operate the largest
∙ T aking action to prevent
3 Taking Remedial Action secondary incidents
on four main health activities: health promotion, disease prevention, children's center in Korea and have introduced a reboarding program
∙ Equipment monitoring business traveler health management, and work environment to support employees returning from parental leave with training,
4 Restoration
∙ Safety training ∙ I mplementing restoration mentoring, and telecommuting.
∙ On-site investigations improvement so that employees can focus on their work in a healthy
measures
Flexible workspace (Korea)
4 Monitoring ∙ I mplementing business manner throughout their working hours. In addition to conducting basic
∙ Performance continuity plan Samsung Electronics has eight flexible workplaces, including three off-site
management employee health checkups, we operate a Musculoskeletal Disorder offices in Seoul (Seocho Office Building), Daegu (ABL Tower), and Bundang
5 Recurrence Prevention
∙ Process improvement Prevention Exercise Center and conduct anti-smoking and moderation (Mirae Asset Place), and five flexible work zones at its business sites, including
∙E
stablishing recurrence
prevention measures Digital City (Suwon), Future Technology Campus (Suwon), Seoul R&D Campus
in drinking campaigns. We also have an in-house health clinic to prevent
∙R
eviewing incident response (Seoul), Smart City (Gumi), and Green City (Gwangju).
1) including risk analyses system effectiveness infectious diseases among employees, and we continue to measure and
eliminate harmful factors in the work environment.
Non-Discrimination Empowering Women in the Workforce Supporting Employees with Disabilities
The International Labor Organization (ILO) defines discrimination Samsung Electronics is committed to promote the values of diversity and Samsung Electronics strives to create an inclusive work environment
as any distinction, exclusion, or preference based on race, color, sex, inclusion, including gender equality, to ensure that all employees have where employees with disabilities can demonstrate their potentials and
religion, political opinion, national or social origin. Discrimination the opportunity to demonstrate their potential. to expand our employment of employees with disabilities.
adversely affects equality of opportunity or treatment in employment · Identifying functional roles – such as user experience research and accessibility
or occupation. In the global ICT industry, women make up a large
Women Leadership Targets
features enhancement – that can benefit from the experiences and perspectives
Samsung Electronics is continuing its efforts to increase the number and
proportion of the labor force and it is necessary to consider their needs of employees with disabilities
quality of female leaders, with a goal of more than doubling our baseline · Enhancing accessibility of facilities (e.g., low-floor buses, table bell system at
in the workplace. As a member of the Responsible Business Alliance
number of women executives in 20221) by 2030. We do this by managing in-house cafeterias, installation of standing desks)
(RBA), Samsung Electronics prohibits discrimination on the basis
the representation of women in hiring, evaluation, and retirement, and · P rocuring services from companies registered as a standard workplace for
of gender, pregnancy, etc. in our hiring and employment practices,
persons with disabilities (services include car wash, laundry, printing, software
by running programs like the Next Generation of Women Leadership
including for workplace health and safety, promotions, rewards, and verification, and florists)
workshops and networking among women executives to help high-
training opportunities related to the work of pregnant and nursing
caliber women develop into leaders. In 2023, we reviewed disability-related infrastructure at our overseas
mothers, in accordance with the RBA Code of Conduct. We also take
1) 6.9% subsidiaries and made necessary improvements, including accessible
appropriate measures to eliminate or reduce the risks that pregnant and
Category 2013 2018 2023 parking lots, restrooms, and elevator Braille signs.
nursing mothers may face in hazardous work environments and provide
them with necessary facilities. We established policies and guidelines Percentage Development (%) 16.0 17.2 19.2
to prohibit discrimination and harassment, developed our gender of Women
by Job Type Sales and Marketing (%) 31.0 30.8 34.0
equality self-assessment toolkit for business sites, and continue to train
employees to reduce instances of discrimination. Women in Executives (%) 3.8 6.3 7.3
Leadership Managers (%) 11.8 14.2 17.6
In 2022 and 2023, our Vietnamese manufacturing site, which has many
female employees, partnered with the Vietnam office of an international Accessible Parking Spaces at
Managing the Gender Pay Gap Indian Institute of Technology
NGO and a local Vietnamese NGO to provide training on gender
We are committed to a policy of equal pay for all employees with
equality and reproductive health to internal trainers, who then train all
equivalent levels of experience and performance, regardless of gender.
employees to raise awareness of gender equality and women's rights. Stellar Forest, a Subsidiary of Samsung Electronics
The gender pay gap analysis by Career Level (CL) showed that as of
We established Stellar Forest, a subsidiary-type standard workplace for
2023, for the CL 1 group, women employees are paid 5% more than male employees with disabilities, in March 2023 through a 100% equity investment
Progress in Non-Discrimination employees. On the other hand, the average wages of male professionals as an extension of our efforts to create jobs for persons with developmental
in CL 2, 3, and 4 are 1~2% higher than women. Nevertheless, an analysis disabilities. As of December 2023, 150 employees with disabilities have been
2018 · Developed anti-harassment guidelines baking cookies, muffins, and more that are supplied to our in-house cafeterias.
of average wages of the workforce in Korea found a notable gender gap
2020 · Released Anti-Discrimination and Harassment Policy Stellar Forest plans to diversify into other fields to create more jobs for persons
of 24.2%, a slight increase from the previous year. Samsung Electronics
with disabilities.
2022 · Developed gender equality self-assessment toolkit with is making efforts to close the gender pay gap by gradually increasing * A business site equipped with
144 indicators and conducted self-assessments at 20 women’s representation in senior positions by operating programs such accessible production, convenience,
manufacturing sites and auxiliary facilities that has a
as the Women Leadership Targets. workforce composed of employees
· Developed and distributed the Essential Guide to Gender with disabilities whose percentage
We also transparently disclose the gender pay gaps at our U.K. and
Equality meet the national requirements
France subsidiaries.
2023 · DEI Hands-on Workshop: A training to make our products and
services more diverse and inclusive
Talent Development Samsung Electronics' employees have the opportunity to explore all Job Function Switching Opportunities
Talent Pipeline Management the courses offered by the company and self-select ones they need Job Posting is a system that provides employees with the opportunity
Samsung Electronics has established and continuously develops an twice a year during STaR Week. We provide customized programs for to switch jobs through an internal system. Over the past three years,
internal talent pipeline to secure an overwhelming technological professional growth and leadership capabilities by job function and role, 3,223 employees have switched to their desired jobs, creating a win-
advantage in a rapidly changing business environment. Based on a and in particular, employees can apply for courses in other functions as win situation for both employees and company. We also provide mindset
careful review of the company's business conditions and future core they see fit, rather than being restricted to training specific to their job training for change management, mentoring, and job skill training for
technology fields, we forecast mid- to long-term recruitment needs by function. job switchers to actively support their transition. We also operate a
field in advance, and secure and manage a pool of talented employees Free Agent (FA) system and the Samsung Talent Exchange Program
DS University
through various channels, including new recruitment and internal (STEP). The FA system officially grants employees working in the same
Samsung Electronics DS Division operates DS University to foster
training. job or department for more than five years the opportunity to switch
creative and challenging talents and strengthen their expertise. As an
to their desired job or department and provides them with preliminary
educational program that helps all employees grow into job experts, DS
The UniverSE competency enhancement opportunities. The STEP program is a new
University provides a variety of career development contents that fit
The DX Division launched The University of Samsung Electronics (The talent development system that allows outstanding employees all
their growth paths, including practical training for more than 1,000 jobs
UniverSE), which unifies the education organizations that were scattered subsidiaries to exchange work for up to two years and utilizes Samsung
and levels, leadership classes, language courses, and more.
in each job function, to actively respond to the needs of employees who Electronics' global network.
want to grow professionally and sustainably in their work. The UniverSE Training Programs
provides job and leadership improvement training for all employees, Samsung Electronics employees, including contract employees, can also Employee Performance Assessments and Regular Feedback
including part-time and contract employees, at 12 schools in three participate in various external training programs. We support academic Processes
academies, and operates various programs to establish an employee- training, visiting researchers, and MBA / EMBA programs in collaboration Samsung Electronics sets individual work goals based on team-
led growth culture, build practical education closely related to the with Korean and global universities. specific ‘Ground Rules’ defined at the beginning of the year, and
workplace, and converge between jobs and fields. provides 1:1 performance feedback through department heads at all
Samsung Institute of Technology (SSIT), which started as an in-house
times throughout the year. Department heads refer to peer reviews to
semiconductor technical college in 1989 to enhance technical capabilities
Leadership Advanced Technology Global CX systematically manage individual performance and growth, and conduct
in the field, was approved as a regular university in 2002 and became the
Academy Academy Academy performance evaluations for all employees in Korea at the end of the
first in-house university in Korea. It offers regular bachelor's programs
Leadership School S/W School
Sales & Marketing year.
in semiconductor and display fields, including process/facility and
School
infrastructure, through a highly qualified faculty comprised of external We also provide HR system training to department heads and employees
Global School Procurement
R&D School scholars and our own employees. 1,142 students have graduated from to improve their understanding of the performance management system
Business School
SSIT to date as of February 2024. and distribute performance management guidebooks to department
Support School Manufacturing & Design School
Production Technology We also opened the Department of Semiconductor Display Engineering heads. We also have an appeals process in place to ensure fairness in
Humanitas School
School and Digital Media Communication (DMC) Engineering at Sungkyunkwan evaluations.
Onboarding School
CS School University as an in-house graduate school to foster the next generation
of technology leaders. By February 2024, 877 master's and 98 doctoral
students have graduated from the program. In line with the trend of
globalization, we operate the 'Local Expert' system, introduced in 1990.
The ‘Local Expert’ system is a self-managed overseas training program for
employees who have been employed for three years or more to learn local
language and culture for one year. To date, the program has trained more
than 3,600 regional experts in more than 80 countries around the world.
People Strategy Risk Management
Samsung Electronics strives to build a sustainable supply chain by Policies
Sustainability in
supporting not only the business competitiveness of its suppliers but Supplier Code of Conduct
also labor and human rights, health and safety, and human resource Samsung Electronics' suppliers reflect the RBA1) Code of Conduct and
Supply Chain
development. To this end, we operate supply chain-related policies, ESG global norms along with local laws and regulations regarding human
audit procedures, communication processes with suppliers' workers, and rights, environment, health and safety, and ethics. We require our
grievance channels. We also conduct improvement activities to expand suppliers to adhere to our Code of Conduct and specify compliance
positive impacts and mitigate negative impacts on major sustainability with the Code of Conduct in our contracts, requiring an annual pledge
issues in the supply chain. of compliance. We also provide a Code of Conduct guide to help our
suppliers voluntarily comply with the Code of Conduct and practice
Management Processes sustainable management.
1) Responsible Business Alliance (RBA), an industry coalition dedicated to social responsibility
in the global supply chain.
Governance
Global Purchasing Code of Conduct
Samsung Electronics oversees land manages labor and human rights Governance
The Global Purchasing Code of Conduct contains core rules and ethical
across its business, including for the supply chain, at various levels, led
standards for purchasing managers, superseding any other rules or
by the Sustainability Committee under the Board of Directors and the ESG Audit Policies manuals.
Labor and Human Rights Council, a council of departments in charge of
human rights.
Ethical Procurement Standards of Practice
At the 2023 Sustainability Committee, supply chain-related agenda Worker
Responsible · W hen sourcing new suppliers, Samsung Electronics evaluate ESG items in
included discussions on the EU Supply Chain Due Diligence Directive and purchasing- communica- addition to price and technology to register competitive suppliers, and provide all
practices tion global companies with ample opportunities to do business with us through means
ESG disclosure requirements.
such as our Open Sourcing Program.
The Partner Collaboration Center, Suwon Complex Support Center, Global Grievances * As of 2023, the average transaction period with suppliers is 13 years.
Technology Research, and each subsidiary’s dedicated departments are · Purchasing unit price is agreed with the supplier after undergoing steps of market
responsible for ensuring the day-to-day implementation of the human research, cost review, price discussion, and price decision.
rights policy within our supply chain. The Partner Collaboration Center · Samsung Electronics may not request supplier technical data for us or any third
party unless there is good cause.
oversees the establishment of standards for respecting human rights
and the implementation of due diligence programs and conducts training · Samsung Electronics provides needs forecasts such as for materials for mass
Key Sustainability Issues in the Supply Chain production so suppliers can prepare in advance.
and capacity-building activities to ensure responsible purchasing
· Samsung Electronics operates a system-based automated ordering system based
from manufacturing suppliers, while the Suwon Complex Support Forced Labor on order quantities, lead times, etc. agreed with suppliers.
Center oversees and trains in-house resident suppliers and the Global
‧ Preventing forced labor · Samsung Electronics applies the principle of 100% acquisition of the order
Technology Research oversees and trains manufacturing suppliers on quantity, and unilateral change or cancellation of the quantity and delivery date
‧ Preventing child labor
consignment. is prohibited without consent from the supplier. If changes are required due
to discontinuation, specification change, or demand change, the order change
Conducting audits, improvement efforts, and disclosure of information Working Conditions Equal Treatment and 0pportunity process must be agreed upon with the supplier.
to improve supplier ESG management levels are reflected as KPIs for · P ayment shall be determined in consultation with the supplier and paid in
‧ Appropriate working hours ‧ Talent development
executives and working-level staff in responsible departments. Target ‧ Health and safety ‧ Partner collaboration
accordance with the terms and conditions set forth in the contract.
* In 2023, 100% of 574 Korean SME suppliers were paid within 10 days.
achievement is linked to compensations including salaries and bonuses.
Worker Communication Grievance System Construction and Operation We are committed to resolving cases as quickly as possible in a
We listen to our suppliers and their workers when selecting new Hotline responsive, transparent, and fair manner. We strive to provide amicable
suppliers, conducting ESG audits, and designing grievance procedures. Samsung Electronics' DX Division operates the Hotline to receive reports resolutions to issues requiring legal interpretation or lengthy review,
of violations of work environment standards or human rights violations at even if it takes time.
Communication Step Content its suppliers through phone calls and emails, and then verifies the facts All reports subject to verification through means such as inter-
Conduct surveys/interviews with vulnerable workers and takes remedial measures. The identity of the whistleblower is strictly departmental committee formations and resolution development.
Selecting new
to verify prohibition of forced labor, which is a protected throughout the process so that employees can report without
suppliers Agreements and feedback are provided.
mandatory assessment item.
fear of retaliation. Posters about the Hotline are posted in local languages
Interview workers and managers in the square root of in offices, hallways, manufacturing sites, dormitories, restaurants, etc.
Cyber Sinmungo 2023 Operational Performance
On-site audit and third the total number of employees at the supplier being Samsung Electronics’ organizational unit dedicated to grievance handling
party audit audited.
verifies the facts of all cases within one week, sends a remedial action Submitted Improvements
※ 2,298 interviews at third-party audit in 2023
plan to the whistleblower, and checks whether the supplier has improved.
To finally confirm that the grievance process proceeded without any
Total 79 cases 77 cases resolved 1)
Gather input from workers during on-site audits,

Designing a grievance
compliance workshops, etc. to build a reliable problems, we conduct a satisfaction survey from the whistleblower. 1) Unresolved cases are continuing discussions to derive solutions
procedure
grievance system
Hotline History Partner Collaboration Portal Grievance Reporting Channel

Samsung Electronics DS Division receives grievances from suppliers
Worker Satisfaction Survey 2013 ‧ Hotline goes live
through various channels, such as anonymous and authenticated
In 2023, Samsung Electronics' DX Division conducted a ‘Worker 2020 ‧ Launched a whistleblower satisfaction survey boards on the Partner Collaboration Portal , phone calls, and emails,
Satisfaction Survey' among employees of its four first-tier
2023 ‧ 50 total reports received (28 wage-reports) and continuously promotes grievance channels to improve the work
suppliers in Vietnam through a global ESG consulting firm (ELEVATE), and
※ 10 duplicate grievances from the same supplier environment of suppliers. In addition, we run 'CEO ON-TALK' for CEOs of
collected various opinions on the overall work environment from about
2,700 employees. suppliers to share grievances in the management of suppliers and seek
Hotline Reporting Status Grievance Handling Cases solutions to grievances. In 2023, we held monthly face-to-face and non-
The results of the satisfaction survey showed that all four companies had
excellent overall work environment management, above the average face-to-face meetings with 383 suppliers in the DS Division to share
level in the electronics industry. Employees were able to freely express Cyber Sinmungo (Online Whistleblowing Channel) accident analysis and environmental safety policies.
their opinions by utilizing Samsung Electronics' hotline channel and the Since 2010, Samsung Electronics' DX Division has been listening to the
grievance suggestion system of the suppliers themselves, and received concerns and suggestions of various stakeholders, including first-tier Partner Collaboration Portal Grievance Reporting
perfect scores in overall satisfaction, manager competency evaluation,
suppliers, as well as second-tier and non-manufacturing suppliers, with Operational Performance in 2023
workplace safety, and mutual respect culture.
whom it deals directly or indirectly, and mediating in case of disputes
For some areas that need improvement, we asked suppliers to establish Submitted Improvements
through the online whistleblowing channel Cyber Sinmungo.
and implement improvement tasks through a briefing session. For
example, some of the respondents did not fully understand the The channel is accessed through the homepage, partner collaboration
Total 444 cases 422 cases resolved 1)
salary calculation method, so the company decided to strengthen portal, email, etc. and receives various grievances like business 1) Unresolved cases are continuing discussions to derive solutions
related education such as salary composition and payment standards, relationship improvements, payment, compensation, supplier support
understanding of pay stubs, etc. in future educations. programs, humane treatment, excessive working hours, unfair dismissal,
We plan to further review the effectiveness of the Worker Satisfaction restriction of freedom of movement, non-payment of salary, etc.
Survey internally before deciding whether to implement the survey in the
future.
Responsible Purchasing Policies Systems-based Risk Management
Samsung Electronics strives to operate a sustainable supply chain Key Evaluation Metrics
Selecting New Suppliers
Samsung Electronics thoroughly selects new suppliers based on by responding to potential risks within and without the supply chain
six criteria: 1) Purchasing, 2) Quality (including Eco-partners), 3) in a timely manner. We defined various risk items, such as supplier
Environment and Safety, 4) Labor and Human Rights, 5) Anti-corruption, irregularities and natural disasters, and manage them using an
and 6) Finance, with in-house experts in each criteria conducting on-site integrated Purchasing system. Technology Responsiveness Cost Finance
audits of suppliers. Some labor and human rights items are designated
Supplier Risk Samsung Electronics regularly monitors its suppliers’
mandatory to protect vulnerable workers with separate surveys and
financial status, labor and human rights, environment, health and
interviews conducted. Through this process, we thoroughly verify our
safety, and use of responsible minerals and hazardous substances, and
suppliers’ labor and human rights situations, including the journey of
proactively manages these issues through our systems. Quality Delivery time ESG
migrant workers, payment of recruitment fees, dormitory assignments,
discriminatory treatment, and working hours, from the new registration Corruption risk Samsung Electronics conducts businesses transparently
stage. by systematically blocking abnormal business processes related to
corruption, and regularly conducts spot checks and monitors compliance 2023 Comprehensive Supplier Evaluation Results
New Supplier Selection Results with laws and regulations related to fair trade and subcontracting.
We conducted a comprehensive evaluation of 92% of our suppliers¹⁾
2021 ‧ Prohibition of forced labor, inhumane treatment, and and found that 71% were rated excellent and 2.2% needed
Natural disaster risk Samsung Electronics connects with major global
discrimination as mandatory assessment items 1)
improvement.
disaster information organization systems to obtain information,
2022 ‧ Begin conducting surveys and interviews with vulnerable and when a disaster occurs, it analyzes the supply chain impact using Company-wide
workers the location information of suppliers registered in the system and
71% 2.2%
2023 ‧ DX Division: 87 new suppliers registered in total automatically shares it with purchasing managers.
Outstanding Improvement required
※ No suppliers were eliminated for failing to comply with required labor 1) GDACS (Global Disaster Alert and Coordination System), USGS (United States Geological
rights assessments, but 1 company was not selected due to non- Survey)
compliance with required evaluation criteria in environmental safety DX Division
assessments, such as not installing sprinklers.
‧ DS Division: 12 new suppliers registered in total Comprehensive Supplier Evaluation 67% 2.7%
※ No suppliers failed for registration To encourage suppliers to improve their capabilities, Samsung Outstanding Improvement required
Electronics conducts a comprehensive evaluation of all suppliers every
year and reflects the evaluation results in the next year's purchasing DS Division
Standard Supplier Contract policy. The DX Division grants preferential trading incentives to excellent 86% 0.4%
Samsung Electronics is committed to strengthening its supplier ESG suppliers. Outstanding Improvement required
management by including compliance obligations within our Standard
1) Suppliers registered for less than one year excluded from evaluation
Supplier Contracts’ Supplier Code of Conduct1).
Global contracts utilized by overseas subsidiaries are written in various

languages, such as English, Chinese, Vietnamese, and Portuguese,
in accordance with local legal regulations to make them easier to
understand for local workers. We revised the Standard Supplier Contract
in 2023 to allow us to terminate contracts in the event of a major disaster
for which the supplier is legally responsible.
1) Require prohibition of child labor and forced labor, compliance with legal minimu m wage, etc.
ESG Audit
Samsung Electronics operates an integrated work environment Self-assessment Achievements in 2023
management process consisting of self-assessment, on-site audit, ∙ D eveloped a self-assessment tool based on RBA standards and distributed it to all suppliers¹⁾, and
suppliers use it to conduct self-assessments once a year.
2,0851) suppliers
and third-party audit. The main results of the on-site audit and third-
∙ To encourage the acquisition of international standards related to corporate social responsibility (e.g., ISO, - DX Division: 1,772 suppliers
party audit are reflected in the comprehensive evaluation and policy
SA 8000, etc.), self-assessment items are reflected, and important items such as forced labor, child labor, - DS Division: 363 suppliers
improvement for the following year, and incentives such as cash prizes
recruitment fees and industrial accidents are weighted to proactively identify potential risks of suppliers.
and additional points in the comprehensive evaluation (DX Division) are - Sampling on-site audits:
provided to outstanding suppliers. Through the Supplier ESG Reward

∙ Conduct separate annual on-site audits of suppliers found to be in violation of material items
121 suppliers (DX Division)
1) Excludes purchasing agencies, distributors, agents, etc. without manufacturing facilities 1) Excludes duplicates
Program, which has been in operation since 2023, we provide incentives¹⁾
such as cash prizes to suppliers that have demonstrated excellent
performance and considerable efforts to improve in the areas of labor On-site audit Achievements in 2023
and human rights and the environment.

395 high-risk suppliers
1)
∙ For high-risk suppliers , led by an expert from the responsible department who performs an independent Audited all
1) 2 suppliers per ESG area in 2023, 6 suppliers in total verification function (DX is an RBA Auditor qualified)
∙ Review documents such as worker salary information, contracts, policies, etc. and interview workers and - DX Division: 367 suppliers
In addition, Samsung Electronics is expanding our scope of management managers of suppliers to identify problems and improvement tasks for the work environment (registered/ - DS Division: 28 suppliers
to include not only first-tier suppliers but also second-tier and non- managed in G-SRM)
manufacturing suppliers. We have revised the Supplier Code of Conduct ∙ Require immediate remediation of serious violations, such as the use of child labor or forced labor or those that
to require first-tier suppliers to conduct due diligence on their sub- can be remedied immediately on site, and verify the completion of corrective action plans within three months
of registration of the audit findings, which is typically the case for all others
suppliers and manage their execution improvement by referring to
1) High-risk supplier selection criteria for: Suppliers with geopolitical risks related to ESG or suppliers with significant influence
RBA standards or standards provided by Samsung Electronics to the (transaction amount and proportion of transactions exceeding a certain size, suppliers
extent that it does not violate the laws of the relevant country. In 2023, related to labor environment issues raised by NGOs, etc.) 18.9% of all first-tier suppliers
with manufacturing facilities (as of 2023)
we introduced third-party audits for select second-tier suppliers in
Asia to more objectively diagnose working conditions. Furthermore, we
expanded the scope of the Supplier Code of Conduct from manufacturing
suppliers to all suppliers that provide products and services to Samsung Third-party audit Achievements in 2023
Electronics. ∙ Third-party audit of the top 90% of first-tier suppliers by annual transaction amounts1) on a 3-year cycle
∙ RBA certified third-party audit firms conduct an Initial Audit in the form of Customer-Managed Audits (CMA)
102 supplier audits
based on the RBA Validated Assessment Program (VAP) protocol 2), and immediately corrects any possible - First-tier: 93
improvements on-site after the audit, and verifies the implementation of the improvements through a Closure (DX Division: 70, DS Division: 23)
Audit. - Second-tier: 9 (DX Division)
∙ In 2023, introduced third-party audits for nine second-tier suppliers in Asia including Vietnam, Samsung
Electronics' main production base, for the first time.
1) 4.5% of all first-tier suppliers with manufacturing facilities (in 2023), 15.4% (cumulative 2021-2023)
2) Document review (worker payroll information, contracts, policies, etc.), worker and manager interviews (at least the square root
of the total number of employees), on-site audits (initial and closure audit), and improvement
Monitoring Progress on Improvement
Activities Preventing Child Labor Appropriate Working Hours
Samsung Electronics has a zero-tolerance policy for suppliers who Samsung Electronics operates a function within its purchasing system
Preventing Forced Labor
employ child workers. As part of our efforts to prevent the employment to manage the working hours of its suppliers' employees in order to
Samsung Electronics has worked diligently to ensure that no forced
of child workers, we conduct special audits at the recruitment sites of our monitor that they are not exposed to excessive overtime and to serve
labor exists in our supply chain based on publicly available information
first-tier and second-tier suppliers every year during the middle and high as a basis for active prevention activities. The average working hours
gathered through government, academic and non-profit sources. We
school vacations, when child workers are likely to be recruited. We verify and maximum working hours of all employees at each workplace are
take our responsibility for compliance with our human rights policies
actual and potential risks by collecting various information through aggregated on a monthly basis, and the severity of violations is graded to
seriously and have conducted rigorous due diligence as we gathered any
job postings, recruitment policies, identity verification, and employee help ensure compliance with the working hours regulations of Samsung
potential allegations. Samsung Electronics prohibits forced labor and
recruitment fee payments1) of migrant workers in our suppliers through interviews. Electronics’ suppliers.
our Supplier Code of Conduct , and if we find that a migrant worker Based on the results of third-party audit, we also analyze and disclose
has paid a recruitment fee the relevant supplier must compensate the Prohibition of Child Labor Performance the compliance rate of individual employees based on three months of
worker within 90 days. We conducted rigorous due diligence as we have working hours, including one month each for peak, off-peak, and routine
gathered any potential allegations. We also monitor recruitment fees and 2015 ‧ Begin special audits for child labor
periods, and weekly day-off data. Samsung Electronics continues to
costs through interviews with supplier employees and management in 2018 ‧ E xpand special audit scope to second-tier suppliers work with its suppliers to improve working hours by providing them with
all processes, including the selection of new suppliers, self-assessment, 2023 ‧ DX Division: Audited 50 first-tier suppliers, forecasts in advance, practicing responsible purchasing practices such as
on-site audits, third-party audits, and special audits of forced labor. 32 second-tier suppliers in East Asia minimizing contract changes, and providing consulting on their working
Violations related to recruitment fees for migrant workers are classified ‧ DS Division: Audited 62 first-tier suppliers in East Asia
hour management procedures.
as serious forced labor violations. We may lower the comprehensive ※ None of the suppliers employed child workers, but three companies were
found to have gaps in their recruitment process, such as not having facial
evaluations rating depending on whether the supplier amends said recognition to verify identity. Samsung Electronics and suppliers took
violations, or suspend transactions if the same violation continues. steps to improve the situation. Working Hour Compliance Rate Analysis for 2023
※ Winter and summer, twice a year, with overlap
We analyzed working hour compliance rate1) by first-tier suppliers based on
In 2023, Samsung Electronics resumed special audits on forced labor
third-party audited results and found that in 2022, the rate was 93%, up from
for migrant workers, which were temporarily suspended due to COVID- 87% in 2021, but in 2023, the rate dropped to 85% (82% for DX and 99% for
19, for its suppliers in Southeast Asia and Europe, including Malaysia, DS), showing a return to the previous level. This is understood to be due to the
Hungary, and Slovakia, which utilize a large number of migrant workers. Responsible Minerals increase in factory utilization rates, which had been reduced due to COVID-19.
Samsung Electronics also provides training on responsible recruitment Results show that the Southeast Asia region, where Samsung Electronics' DX
Responsible minerals are minerals that are mined in a socially responsible
procedures to improve under standing of the recruitment process for Division's major manufacturing sites are located, is somewhat vulnerable.
manner that respects human rights and the environment. Samsung Electronics
migrant workers. is committed to eradicating human rights violations such as child labor 1) Employees must adhere to standard 48-hour work week and must not work more than 60
hours per week including overtime, with a guarantee of at least one day off per week.
1) Based on ILO core conventions, including Convention No. 29 (Forced Labor Convention) and exploitation and sexual violence that occur during the mineral mining process
Convention No. 105 (Abolition of Forced Labor Convention) and protecting the health and safety of mine workers.
※ Percentage of migrant workers from high-risk suppliers: 2.1%
Samsung Electronics Responsible Minerals Management Report
Prohibition of forced labor activity performance
2020 ‧ Begin migrant forced labor special audits
2021 ‧ Begin responsible recruitment procedure training
2023 ‧ Resume special audit of forced labor: 3 countries, 21 suppliers

‧ Reimbursed $81,549 in recruitment fees to 247 migrant
workers
‧ Training on responsible recruitment procedures:
568 HR staffs from 358 suppliers
Health and Safety Talent Development Consulting Center Samsung Electronics operates 'Consulting
Samsung Electronics operates a dedicated organization to support Partner Collaboration Academy Centers' comprised of experts in areas such as manufacturing, quality,
environment and safety issues at its suppliers, with the Global EHS Samsung Electronics established the Samsung Electronics Partner development, and purchasing to support suppliers' innovation activities.
Director for DX Division and the Head of Global Manufacturing & Collaboration Academy in 2014 to practice collaborative growth with its In 2023, the DX Division helped 54 suppliers eliminate inefficiencies,
Infrastructure for DS Division serving as Chief Safety Officers (CSOs) to suppliers. The academy is an approximately 9,917 m2 learning center for streamline low-value-added costs, increase manufacturing productivity
manage environment and safety risks at the same level as employees. suppliers near our Suwon business site, and provides free support for and transform quality as well as improve human resources, finance,
We operate programs such as fostering outstanding suppliers through various consulting, training, and recruitment programs for suppliers. systems, environment and safety, training, and sales and marketing
environment and safety consulting, providing special support to suppliers The Partner Collaboration Academy is composed of three centers: operations.
with dangerous processes, and supporting acquiring ISO international the Learning Center, which provides training courses in leadership, The DS Division consulted for 37 Korean material, parts, and equipment
certifications. We also communicate with suppliers employees through the
manufacturing, quality, purchasing, and sales proven through the suppliers.
Environment and Safety Portal for Our Suppliers' and implement the Right
training of Samsung Electronics employees; the Youth Job Center,
to Work Suspension to suppliers, train risk assessment experts, and verify
which supports employees recruitment for suppliers having difficulty
supplier risk assessment results to discover and improve risk factors. Semiconductor Business Consulting Support
securing talent; and the Consulting Center, which shares and transfers
The Right to Work Suspension system includes preemptive measures to 1. C
ustomized consulting to Korean materials, component, and equipment
technologies and know-how that developed over 50 years to suppliers.
suppliers
prevent discovered dangerous situations. Samsung Electronics operates
‧ In-house expert consultants visit 1st and 2nd tier supplier sites to help identify
the Right to Stop Work Study Committee to analyze risks in order to Learning Center The Learning Center offers more than 350 different
challenges, resolve issues and support innovation activities
operate an effective Right to Stop Work system. training programs for employees of suppliers. Leadership training for
‧ Training in desired areas of development, manufacturing, quality, environment
various levels from new employees to executives, and job training and safety, purchasing, sales and marketing, and consulting support for 37
In addition, we conducted verification of the results of the risk assessment
in manufacturing, quality, purchasing, sales, etc. are developed and projects in 2023
of our suppliers' work to help them identify and improve hazardous or
operated for each supplier, and we are expanding training not only to 2. Business management advice
dangerous factors in their work to prevent major disasters in advance. We
first-tier suppliers but also to second- and third-tier suppliers. ‧ Transferring field experience and know-how in specialized areas to suppliers’
supported them to establish and implement improvement plans for the
executives
risk groups and awarded them for their excellent practices. In addition to environment and safety and fair trade, we have recently
‧ Management advisory engagements on 19 assignments for 15 companies in 2023
added GHG reduction and target management, supply chain due 3. Consulting to strengthen manufacturing
Health and Safety 2023 Performance diligence response, and other ESG management-related courses to ‧ Visit secondary suppliers, identify challenges, and support manufacturing-
strengthen our suppliers’ employee capabilities. and quality-driven improvements
DX Division
4. E xpert dispatch
498 primary suppliers 453 supplier employees Youth Job Center Samsung Electronics operates the Youth Job Center, ‧ Dispatching specialized personnel in each field such as technology,
Regular health and safety audits Health and Safety Training manufacturing, and management to the 1st partner company (2 years)
a dedicated recruitment support organization, to help its suppliers
‧ Cumulative from 2013 to 2023: 79 companies, 176 people
46 suppliers ranked vulnerable secure talented employees. The center helps recruit job seekers that
Provided environment and safety accident prevention support (consulting) reflect the needs of our suppliers, holds job fairs for Samsung's suppliers,
and operates an online recruitment center exclusively for Samsung's Semiconductor facilities Technology Academy (SfTA)
DS Division
suppliers in connection with online recruitment sites. The DS Division opened the SfTA in 2018 and is training semiconductor piping
15 courses, 61 companies ranked vulnerable construction personnel to provide our suppliers with technical personnel,
206,780 individuals Provided environment and safety
Partner Collaboration Academy Achievements in 2023
increase supplier technical capacity, and contribute to youth employment. The
accident prevention support (consulting)
Health and Safety Training academy operates training courses for new piping specialists, blueprints and
Learning Youth Jobs Consulting technologies certifications, and education programs including for demolition.
3,458 cases 7 industries, 54 companies 32,566 1,051 91 185 people completed the program in 2023 (766 cumulatively) and we plan to
Health and Safety questions Subject to stop work order
supplier employees supplier employees suppliers expand the program for new piping specialists in 2024 to 3 sessions.
submitted by suppliers (Scope expanded to suppliers with
regular site entry) * I ncludes DX/DS Division
overlap
People Activities Samsung Solve for Tomorrow
Samsung Solve for Tomorrow is an idea contest for youth designed to
Education for Future Generations
Empowering
advance their STEM (Science, Technology, Engineering and Mathematics)
Samsung strives to empower young minds to drive innovation and
competencies and creative problem-solving skills required for the future
positive social change. To this end, we actively support young people
workforce. Teachers and Samsung employees serve as mentors to help
Communities
by leveraging our expertise, knowledge, experience, and resources to
students in Samsung Solve for Tomorrow identify the root cause of
help them develop the multifaceted skills needed for the future, such
problems, find viable solutions, and turn these ideas into action. In 2023,
as creative thinking, curiosity, and empathy, as well as technology.
we provided a total of KRW 23.4 billion in funding to Samsung Solve for
Moreover, we partner with government institutions and organizations to
Tomorrow.
provide education programs around the world.
Samsung Innovation Campus Operational Performance in 2023

Since 2013, Samsung has been conducting various job-ready training
Participating countries Participating students
programs for youth, vulnerable groups, and women to foster digital
technology professionals. In 2019, we updated and reconfigured these 66 222,337
programs into the Samsung Innovation Campus. Samsung Innovation
Governance Campus of fers a range of curricula, from programming to AI, in
Samsung manages its community-related agenda through the Board partnership with local education authorities, academic institutions, and Samsung Youth SW Academy
of Directors (BOD), the Sustainability Committee, and the Sustainability civil society organizations in various countries. Samsung Innovation Samsung Software Academy for Youth (SSAFY) was established in 2018,
Council chaired by the CEO. In 2023, the BOD discussed contributing Campus helps young students and adults develop skills required for IT in collaboration with the Korea Ministry of Employment and Labor.
financial resources to run social contribution programs and continuing functions such as programming, AI, IoT, and big data through theoretical Since then, we have offered young Korean students aspiring to become
the promotion of smart factory support projects. The Corporate and hands-on training. It also provides various soft skills such as creative software developers a one-year program of basic courses on algorithms,
Citizenship Office (CCO), ESG & Smart Factory Support Center, and thinking, communication skills, and empathy. In 2023, we provided a total coding, and web design, and practical training in utilizing AI, IoT, and
Creative Development Center are responsible for running CSR flagship of KRW 8 billion in funding to Samsung Innovation Campus. other advanced technologies. In 2023, we provided a total of KRW 41.7
programs. billion in funding to SSAFY.
Strategy
Under its "Together for Tomorrow! Enabling People" vision, we are Operational Performance in 2023 Operational Performance in 2023
implementing programs that focus on providing quality education to all Participating countries Participating students Training Operations Center Trainees
youth, with no student left out of educational opportunities, while also
transferring Samsung's management know-how to SMEs and startups.
33 57,812 5 2,300
Vision
Themes
Enhancing future capabilities Rising together with local
Education for Future communities & partner companies
Generations Mutual Growth
Samsung Junior SW Academy Samsung Dream Class Blue Elephant
Samsung Junior SW Academy was launched in 2013 as part of a Samsung Dream Class, started in 2012 as a combination of after- Blue Elephant is a program that provides cyber-violence prevention
partnership agreement with the Korea Ministry of Education. Since then, school classes and vacation camps in Korea, was revamped in 2021 education to youth and supports the healing of students affected by
we have trained teachers to deliver software education to elementary as a comprehensive education program built on three pillars: career cyber-violence with the Blue Tree Foundation. In order to solve the
and middle school students. In 2021, the program was reorganized with development, future skills training, (e.g., global communication, coding, problem of cyber-violence among youth, Blue Elephant conducts
a focus on AI, providing teachers with AI education content developed math, logic), and academic curriculum. The program engages Samsung cyber-violence prevention activities with the goal of reaching 3 million
with education experts, and students with educational programs and employees and field experts as mentors. In 2023, we provided a total of participants nationwide by 2029. The program is centered on five pillars,
hands-on kits. In 2023, we provided a total of KRW 2.5 billion in funding KRW 8.1 billion in funding to Samsung Dream Class. including preventive education and campaigns, psychotherapy for victims,
to Samsung Junior SW Academy. academic research, and cyber-violence prevention system. Prevention
education is a program that conducts professional education activities
Operational Performance in 2023 Operational Performance in 2023
to induce internal changes of young students rather than conduction
Participating students Participating teachers Middle school students College students guidance through punishment. The program also provides prevention
education training to instructors to settle the education culture in the
53,502 731 6,905 700 long term. Blue Elephant offers professional psychological counseling
and treatment programs to support the recovery of victims, and strives
to foster a culture of non-violence through awareness-raising content
Samsung SmartSchool Samsung Stepping Stone of Hope and campaigns targeting all corners of society. Furthermore, the program
Samsung Smart School supports schools in rural and remote areas that Stepping Stone of Hope provides a residence for adolescents in Korea suggests various policies to improve laws and systems by participating
lack digital educational resources with smart devices, training solutions, who are forced to leave protective care facilities at the age of 18 due to the in policy councils, meeting with government officials, advising major
learning content, and interior remodeling to narrow the regional nationally-set age limit. Stepping Stone of Hope provides independence organizations, and holding academic conferences. In 2023, we provided a
education gap and strengthen future skills of youth. We have supported training and experience to adolescents who are still staying in the total of KRW 900 million in funding to Blue Elephant.
193 classes in 98 schools in Korea since 2012, and in 2022, we supported facilities. When those adolescents have to leave the facilities, Stepping
ten exemplary schools in Korea selected in 2021. Smart School also Stone of Hope offers a residence and integrated management services Operational Performance in 2023
provides teachers of beneficiary schools with regular training and access for up to two years. In 2023, we launched Stepping Stone of Hope 2.0,
to external support on utilizing smart devices. The smart devices, as an employment and career design program supporting individuals' All participants Preventive education
well as online counseling services, are offered to the schools for up to economic independence. We are operating effective independence 277,887 118,197
two years. We provided a total of KRW 3.75 billion in funding to Samsung programs through various job training courses, such as for electronics/
Smart School from 2020 to 2023. IT manufacturing technicians and semiconductor precision piping Spread culture of prevention Psychotherapy
technicians. In 2023, we provided a total of KRW 3.88 billion in funding to
142,140 2,144
Stepping Stone of Hope.
Operational Performance in 2023 Operational Performance in 2023
Domestically (Korean) International (India) Independent living Independent living training/support

Operated Schools Operated Schools
234 10,071
10 10
Nanum Kiosks
Nanum Kiosk is a fund-raising program designed to support children Support Basic/Intermediate/Advanced Female Training for Digital I Inclusion
in need with Samsung employees' voluntary donations. Employees Samsung provides digital skill training to raise digital inclusion of women and vulnerable groups and to help future generations equip with basic, intermediate,
donate a certain amount of money every time they tag their employee ID and advanced digital skills.
cards to kiosks installed on site, and when donations reach the targeted
For basic digital education, Blue Elephant provides online safety education for
amount, they are delivered to children of vulnerable demographic youth to prevent cyber violence. Stepping Stone of Hope offers digital education Operational Performance in 2023
groups. Nanum Kiosk is installed and operated at all business sites in to adolescents who need to stand on their own feet. In France, E-Junior/My First Basic Training
Korea, and are currently operating in five additional countries (Vietnam, Telephone program provide education for safe internet use to the youth.
Participants Amount of support Labor Input1)
India, Mainland China, the United States, and Thailand), starting with At the intermediate level, Dream Class provides youth with the training they
Vietnam in 2019. need for future skills and academics, including career exploration activities to 288 K KRW 4.94 billion 9
help them discover their aptitudes and dreams. In India, the Digital & Offline
Skills Training (DOST) program offers employment-related training (e.g., Intermediate Training
Operational Performance in 2023
electronics repair) to youth.
Participants Amount of support Labor Input1)
Supported Total amount Participating For advanced education, Samsung Innovation Campus, Samsung Junior SW
Children raised employees Academy, and Samsung Software Academy for Youth provide teens and 13 K KRW 12.09 billion 6
young adults with a wide range of training in AI, IoT, big data, programming,
1,107 KRW 1.56 billion 82,300 data analytics, network management, and more to help foster the digital Advanced Training
professionals of tomorrow. Participants Amount of support Labor Input1)
In addition, to increase digital inclusion of women, STEM Girls was launched
in 2018 in China to support girls in developing digital skills, and Samsung
114 K KRW 52.15 billion 88
SME & Startup Support Innovation Campus in Spain, Argentina, the United States, and Chile provides
Female Training
Through the Smart Factory Support Initiative, approximately 170 of programs for women to enhance digital skills.
Samsung's experts in a variety of fields, including quality assurance, Participants Amount of support Labor Input1)
Furthermore, we provided IT devices and digital learning content to schools
logistics, and molding, work with SMEs at their sites and share their in rural areas or with special needs in India to improve the connectivity and 11 K KRW 1.31 billion 18
knowledge and know-how in establishing production systems and learning capabilities of youth. In Korea, we strived for digital inclusion by
supporting the latest educational environments, including IT device support IT support
automation solutions and advancing production innovation through
through Smart School.
technology. We supported a total of 3,274 SMEs in Korea from 2015 to Participants Amount of support Labor Input1)
2023.
Smart Factory Support Initiative
109 K KRW 0.25 billion 8
1) Labor Input: Total number of social contribution managers within
We operate C-Lab to develop innovative ideas into business opportunities
Samsung Electronics per program
and contribute to bolstering the Korean startup ecosystem. As of March
2024, C-Lab has fostered a total of 912 in-house ventures and startups
(406 in-house and 506 external). The cumulative investment amount for
startups incubated outside C-Lab has reached KRW 1.9 trillion.
Startup Support: C-Lab (Creative Lab)
People In addition, we operate a regular security council with the company-wide
Risk Management
CISO serving as the Secretariat to make decisions on major information
Samsung Electronics has established a Global Privacy Policy to protect
Privacy
protection policies, discuss security improvement measures, and
personal information and operates it for all business divisions. In
respond to security incidents/issues.
addition, we provide employees with guidelines related to personal
Protection &
information protection, such as the 'Privacy Protection Guidelines for
Strategy Employees' and the Guidelines on Third Party Personal Information
Samsung Electronics collects and uses personal information minimally,
Security
Processing', and conduct training to improve their understanding.
transparently, and securely for the purposes for which it is intended and Samsung operates the Samsung Privacy site to allow users to
respects your right to choose. We also stay ahead of risks and utilize access, delete, and update personal information associated with their
robust security technologies. account at one time and to view Samsung's privacy policy, and the
Samsung Security Reporting Portal to receive and promptly process
The Three Privacy Principles vulnerabilities for continuous security enhancement.
1 Transparency
We transparently share the details on our collection and use of personal
Governance
information. Activities
2 Security Privacy System Operations and Training
Samsung Electronics manages sustainability issues involving privacy All our products are designed to provide reliable services and securely
protect users’ personal information Privacy Legal Management System (PLMS)
and security with the Chief Privacy Officer (CPO) and Chief Information
3 Choice We check privacy-related issues at each stage from planning,
Security Officer (CISO) serving as control towers.
We enable users to choose the type and extent of personal information development, operation, and discontinuation of products and services
to be collected, accessed, and shared.
to prevent risks by linking to the product R&D and PLMS within a system
to comply with privacy-related laws and regulations. We also provide
Organizational Units in Charge of Privacy The Four Pillars of Cybersecurity privacy protection news and materials to help employees understand
1 Preventing & Hardening: Our security system is built to meet stringent the latest trends.
Global Privacy Team Privacy Steering Committee standards
‧E
quip products with hardware chipsets with proprietary technology
‧ Build privacy strategy, policies, ‧C
ompany-wide council of
against physical hacking and provide separate, dedicated security Privacy Protection Training
and processes executive management
processors All employees in Korea, including top management, are required to
‧ Privacy legal advice and support ‧D
eciding on key privacy policies
‧ Employee education and and safeguards 2 Prediction: We are ready for the future complete annual privacy protection training. Employees who handle
awareness ‧S
hare issues and discuss ‧ Validate your solution with regular mock diagnostics
personal information in the course of their work complete annual privacy
countermeasures by product, ‧ Security expertise + big data analytics + AI technology
→ deliver better security systems protection training specific to their job duties.
service, and business unit
3 Detection: We remain vigilant at all times Starting in 2020, we are providing video guides for each step of the data
‧M
onitor digital devices and network events and issues collection, use, and discard process, based on our global privacy policy.
‧D
etect malicious intrusions and deploy immediate defenses
Business Unit Privacy Regional Privacy
‧D
etect and proactively block everyday threats like malicious apps
Protection Officers Protection Officers
and phishing
‧ Perform privacy audits and ‧P
rivacy reviews and training for 4 Response: We respond quickly and accurately
training within business units regional offices ‧A
nalyze exactly what issues were found, what environments were
‧ Apply and manage privacy ‧R
espond to issues as needed vulnerable, and what damage could be expected.
technologies ‧Q
uickly respond to hacking attempts detected by security systems
‧D
eliver the best security patches and latest security solutions
Data Breach Response Process Security Platform Samsung Knox Semiconductor Technology Security
Samsung Electronics operates a data breach response process that Expanding from smar tphones, tablets, and smar t TVs to smar t Semiconductor core technologies are designated as South Korea's
identifies the current situation and establishes and implements appliances, IoT, and 5G devices, Samsung Knox protects products and National Key Technologies and National High-Tech Strategic Technologies
countermeasures as soon as it becomes aware of a data breach incident. services step-by-step, from the chipset to the operating system (OS) and are protec ted by the Ac t on Prevention of Divulgence and
In addition, we notify and report the breach to users and relevant to the application, to prevent hacking and unauthorized access. This Protection of Industrial Technology, and the Act on Special Measures for
Strengthening the Competitiveness of, and Protecting National High-Tech
authorities without delay in accordance with the Privacy Act, and inform ensures that the data customers store on their products is protected at
Strategic Industries. Samsung Electronics has established the National
users affected by the breach of the items of personal information boot-up and in real-time during use.
Core Technology Security Management Guidelines and designated
breached, the time and circumstances of the breach, how to minimize the Samsung Knox Security Principles
executive-level management officers for each core technology. They
damage caused by the breach, countermeasures taken by the company,
review the technical security, finalize the process and protection
and the contact information of the department in charge for damage Samsung Knox Vault
measures of national core technologies, and sign NDAs (Non-Disclosure
consultation through emails, notices on the website, etc. Starting with the Galaxy S21, Samsung Knox Vault combines a secure Agreements) with corporate customers to strengthen customer
processor with a new security memory chip to isolate and secure your information management by limiting access to customer information to a
Samsung Electronics prevents data breaches in advance through
most sensitive information, including PINs and passwords, biometrics, select employees. In addition, we apply a mail filtering service (Compliance
technical, administrative, and physical protection measures. In the event
digital certificates, and keys for security, in a separate location. Guide Service, CPGS) to block the sending of mail containing customer
of a breach, we immediately eliminate direct and indirect causes of the
Because Knox Vault provides an Android-independent operating information to prevent employees from sharing customer information
leak to prevent further breach and strive to minimize the damage to
environment, applications running within Knox Vault and user unauthorizedly.
users by supplementing protection measures and conducting personal
information can be protected from attacks that exploit Android security Samsung Electronics Semiconductor National Core Technology
information protection training to prevent recurrence. and National High-Tech Strategic Technology
vulnerabilities.
Privacy Breach Response Process
International Security Certifications
· Industry-leading security chipset (CC EAL1) 4-5+ certified)
Efforts to Ensure Responsible Advertising In addition to protecting our information assets, Samsung Electronics
· Secure Processor to protect against hardware-level attacks
Samsung has a strict privacy policy for ads served directly through develops and applies secure security features for each product and
· Add tamper-resistant security memory
service to provide customers with a safe environment in using our
mobile devices and IoT devices. 1) A ccredited for the Common International Security Criteria‘s Common Criteria
Evaluation Assurance Lab
products, protection from external data breach attempts, and protection
When we use consumer information to serve personalized ads, we use a from personal information breaches. We verify this by regularly obtaining
separate, randomly generated ID. This ID may be reset on user request, international security certifications for our management system, major
in which case we will stop using any user information collected under the Mobile Security Updates products and infrastructure solutions.
old ID. Samsung is committed to regular and rapid security updates. We work
On mobile and IoT devices, we give users the option to opt out of closely with our Android operating system (OS) and chipset partners, · Korea Internet & Security Agency (KISA) Information Security Management
as well as more than 200 telecommunications operators around the System (ISMS) certification
receiving targeted ads. If we collect and use personal information for
· ISO27001 (International Standard for Information Security Management System)
targeted advertising purposes, we will provide users with a clear notice world, to ensure that billions of Galaxy devices are updated with security
Certification - DS Division (Memory business unit, Foundry business unit,
of the purpose and obtain user consent. If users do not want to receive patches when security vulnerabilities are discovered. We work with more TSP General Manager), DX Division (Network business unit, Mobile eXperience
targeted advertising, they can turn it off at any time in their settings, in than 1,000 partners to set security standards for all Android devices, and business unit, Video Display business unit)
which case they will not see ads that are not relevant to their interests. we collaborate with a diverse security research community to provide · Common Criteria (CC) Certification - DS Division (S.LSI business unit, Foundry
users with the most secure mobile experience possible. business unit, TSP Head), DX Division (Visual Display business unit, Samsung Research)
We also identify ads that may have a harmful effect on consumers and
· Payment Card Industry Data Security Standard (PCI DSS) Certification -
filter them. Starting in January 2024, we are extending security update support for DX Division (Mobile eXperience business unit, Video Display business unit)
List of Prohibited Content in Advertisements Galaxy mobile devices up to 7 years to help Galaxy users enjoy the latest · Service Organization Control (SOC)2 Certification - DX (Mobile eXperience
user experience more securely. business unit)
※ Availability and timing of Android OS upgrades and security updates may vary by product · Security Accreditation Scheme for UICC Production (SAS-UP) Certification -
and market. DS Division (S.LSI business unit)
People
Quality Management Code of Conduct
Activities
Ensure Product Safety
Customer
Customer-centric
We add value to our customers by listening to their real and potential Samsung Electronics operates internationally accredited testing
needs and incorporating them into our products. laboratories qualified to test various standards around the world to
Safety & Quality

Fidelity to the Basics evaluate and certify product safety, communication standards, and
Quality is our conscience and is never compromised, so we strictly electromagnetic compatibility (EMC). We also respond to newly regulated
adhere to our rules and processes.
standards in a timely manner by continuously securing technology
Professional mindset and investing in facilities. We have introduced a double safety design
With a zero-defect quality mindset, we practice accountability: quality
for products and components to prevent accidents from escalating in
is in my hands.
the event of an accident, such as product burnout, and conduct safety
Creating luxury goods
verification in consideration of customers' unusual methods and use in
We embody luxury quality with our commitment to use the Samsung
logo only on products of attractive quality. harsh environments. In addition, major components (batteries, power
supplies, chargers, etc.) that are highly related to safety accidents are
Customer creation
We resolve customer VOCs quickly, accurately, and compassionately to subjected to intensive safety audits in multiple stages.
create lifelong customers based on trust and confidence.
Improve Product Quality
Governance Samsung Electronics operates a smart quality management system that
Samsung Electronics prioritizes product quality and customer safety Risk Management collects, analyzes, processes, and manages all quality data from around
from the product planning and development stage. We provide prompt the world in a database. We analyze quality data and Customer Service (CS)
Samsung Electronics operates a quality assurance system that manages
and convenient services should issues arise during product use. information to take urgent improvement measures such as early warning
quality throughout all stages of product planning, development,
The Global CS Center and business division quality management and stopping production if there is a problem with product quality.
production, and sales. It also monitors risks to ensure product quality and
organizations conduct real-time monitoring to prevent product quality prevent customer safety accidents and operates an accident response To ensure the highest level of quality, we have documented standards for
and customer safety in advance and operate a quality response process process to immediately report any accidents to management. We also all tasks and processes, and we are constantly checking and improving our
that immediately reports any issues to management and ensures prompt monitor risks to ensure product quality and prevent customer safety compliance with rules and processes.
cause analysis and measures to prevent recurrence. accidents and operates an accident response process to immediately
We manage parts quality and processes when developing new products
report any accidents to management.
and operate the Customer Satisfaction (CS) certification system in stages
Strategy to proactively secure product quality that satisfies customer expectations.
Samsung Electronics has declared a code of conduct based on its vision Quality Assurance For new technologies and functions, we conduct durability, reliability, and
for quality of "Perfection in Quality and Service for the Best Customer 1 Development: Quality assessment by stage (CS Certification System) practical use tests with new verification techniques to achieve the quality
Experience" and quality ownership and responsibility practices. required by customers before production through the SQCI system, and
2 Parts Purchasing: Supplier Quality Control for Components
(SQCI1) system) apply penalties such as the three-strikes out system (volume adjustment
3 Production: Manufacturing site process and delivery quality to suspension of transactions) if there are problems with parts quality. For
innovation (SQA 2)) Korean and global manufacturing sites, the SQA (Samsung Quality Award)
4 Sales: Obtain market defect data → Analyze and improve system evaluates their quality level and guarantee system to ensure
(Quality Information System - Market Quality)
that the highest quality products that satisfy customers are produced
1) Supplier Quality Control Innovation
2) Samsung Electronics Quality Awards uniformly no matter where they are produced.
Customer Service Improve Service Quality Customer Communications
Samsung Electronics' service aims to increase customer value by Samsung Electronics provides standardized services by creating guides Samsung Electronics collects customer VOCs such as product purchase,
recognizing customer needs and emotions and providing quick and on the standards and processes of service centers and call centers repair, and usage inquiries through its call center and website through
accurate actions. We are innovating our service operation system to and sharing them with all Korean and global subsidiaries through the the Global VOC Integrated Management System to resolve customer
improve the speed and accuracy of repairs, pursue customer emotional company-wide work standard system. Based on the global guide, each complaints. Through the system, we analyze customer needs and share
care, and manage service status in real time by linking all processes of local subsidiary conducts training with manuals localized to market them with each department to improve products and services. We
product service with the system. Samsung Electronics provides global characteristics and shares the manuals through the Knowledge Portal, also conduct regular customer satisfaction surveys for experienced
common service channels and service channels optimized for country- an internal system. customers through the Service Customer Satisfaction Survey Service
specific characteristics to help global customers receive quick and and share the results with relevant departments to improve items that
convenient after-sales service. Local subsidiaries are receiving good Service Standard Details
are not satisfactory or lack competitiveness.
responses from providing services tailored to various customer groups, · Operations manuals by service process:
such as people with disabilities. In addition, to maintain the quality of Standard operating Contact center, service intake, technical training,
various services operated around the world at a certain level, we conduct manual for services troubleshooting, results reporting, Happy Call, billing,
activities such as on-site audits for compliance with service standards claims handling, etc.
and workforce training. · Guide to adding in-store services features:

In-store service
We operated 13,784 service centers in 216 countries at the end of 2023 In-store service definitions, service features, layout,
guide
etc.
to help consumers repair their products. Service center managers and
repairers follow service process guides to provide the best possible Technical guides · Technical guide for product repair
service to our customers. Along with product repairs, we also operate
training programs such as product usage guides and new product feature We also regularly evaluate our service centers for compliance with
introductions. Galaxy Consultants perform simple product actions service standards, technical skills, repair equipment, infrastructure,
such as OS upgrades, account settings, and data migration, as well as materials management, and financial health. We set improvement
application installation and utilization consultations, demonstrations, targets for each size of service center and provide incentives such as
and product usage training for customers. We are also expanding our fee increases and center of excellence awards depending on the level of
smartphone consultant services to include simple repairs at retail stores. achievement.
The Samsung Members application provides FAQs, inquiries, and self-
We provide training programs for service center managers and repairers
help functions to help customers resolve issues they encounter while
on new product repair techniques and customer service. Remote video
using our products.
training or group training is conducted depending on the characteristics
of each country and product, and training videos and technical materials
Samsung Electronics Service Channels can be viewed and acquired at any time through the in-house system.
Service Intake and Product Inquiries Product Repair
· Contact center: phone/chat/email/ · Visit a customer service
remote consultation center
· Webpage Support Menu: · Door-to-door repairs,
Self-Diagnostics, Instructions drop-off repairs, and
· In-Store: Galaxy Consultant more
· Samsung Members application
Principle
We practice responsible management for a sustainable future.
53 Compliance & Ethics
Principle
Business Conduct Guidelines for Employees
Board of Directors · Translated into 15 languages, including Korean, and published on our
Compliance &
intranet
Board of Directors and its affiliated committees
· D etails shared with all our global employees(including contract
(Management Committee, Sustainability Committee, Audit Committee,
employees) at least once a year through offline, online trainings and
Ethics
Related Party Transactions Committee, etc.) provide direction,
visual education session
management, and oversight of compliance and ethics.
Business Guideline for Partner Companies
·W e strive to establish a transparent culture in our transactions by
providing guidelines to our partner companies
Compliance Team(Chief Compliance Officer),
Corporate Auditing Team
Operate compliance and ethics program, Risk Management
report to Board of Directors, Compliance Committee
Samsung Electronics operates the Compliance Program Management
System (CPMS), an IT system for compliance management, and manages
risks with departments in charge of key areas such as anti-corruption,
Samsung Compliance Committee
fair trade, intellectual property rights, privacy protection, labor and
(external and independent)
human rights, and environment and safety, and manages risks in the
Governance Strengthen compliance monitoring and control at Samsung Member stages of prevention, monitoring, and response.
Companies, provide recommendations and opinions to improve the
In the prevention stage, we publish compliance policies and guides on
Samsung Electronics’ Board of Directors and its affiliated committees compliance program
our CPMS, stay on top of regulatory trends to reduce the risk of non-
(Management Committee, Sustainability Committee, Audit Committee,
compliance, operate training programs, and provide 1:1 consultation on
Related Par ty Transactions Commit tee, etc.) provide direction,
compliance.
management, and oversight of compliance and ethical management.
Strategy In the monitoring phase, inspections are conducted annually by a
The corporate compliance team operates compliance and ethical
dedicated organization or dedicated personnel and the main results are
management programs with the corporate auditing team. The Samsung Electronics conducts its business in a legal and ethical manner
reported to the Board of Directors at least once a year. We also receive
compliance team head (Chief Compliance Officer) attends all Board and for a fair and transparent management, based on compliance with law
reports of legal or regulatory violations or corruption charges by the
Management Committee meetings to support their decision making and and ethics as our top priority business principle, in order to fulfill our
company or our employees through a dedicated whistleblowing channel.
reports major issues to the Board. social responsibility and create a clean organizational culture.
In the response phase, we assess the company's legal risks, evaluate the
The Samsung Compliance Committee was also launched in February We are also trying our best to fulfill our corporate role and social
effectiveness of the compliance control system, and analyze the results
of 2020 as a separate, independent external organization under the responsibilities by observing laws and ethics in cooperation with our
of audits, whistleblower reports, and responses to issues to establish
aim of practicing integrity-based management, one of Samsung’s employees, business partners, and external stakeholders. To this end, we
recurrence preventive measures such as process improvements. We
key values. Since its launch the Committee continues to offer various established and specified management principles and guidelines based
also implement improvement measures such as disciplinary actions or
recommendations and opinions to improve compliance monitoring on compliance and ethics.
training in accordance with internal standards, taking into account the
policies and strengthen compliance monitoring and control over seven severity of the issue.
major member companies1) of the Samsung group.
1) Samsung Electronics, Samsung C&T, Samsung SDI, Samsung Electro-Mechanics, Samsung
SDS, Samsung Life Insurance, and Samsung Fire & Marine Insurance
Activities Operate Training Programs Corruption Risk Review Process
Samsung Electronics conducts compliance training and fraud prevention The External Sponsorship Council conducts a preliminary review of
Compliance and Ethics Audits training, including on anti-corruption and fair trade, once a year for all all external sponsorships of KRW 10 million or above and reports the
Compliance and ethics audits are conducted at all our business sites and employees (including contract and part-time employees), and additional review results to the Audit Committee. External sponsorships of KRW 1
reported to the Board of Directors at least once a year. Based on audit training on Korea’s Improper Solicitation and Graft Act is provided to billion or above in annual amount require the approval of the Board of
results, issues requiring improvement are reflected in our management contractual administrative function employees who are dispatched by Directors. Furthermore, approval from the Compliance Team is required
activities. In 2023, we began to divide the quarterly audit areas, such partner companies in order to emphasize the importance of compliance for new vendor registration and signing of contracts in line with the anti-
as conducting external sponsorship risk checks to comply with anti- and ethical management. We also provide customized training for job corruption review process.
corruption and anti-bribery laws, policies, and guidelines. Overall, this functions and top management training to foster leadership.
approach generated satisfactory results. Evaluation and Awards
Compliance and Ethics Whistleblowing To foster a culture of compliance, we strive to improve the evaluation
Major Audit Activities in 2023 We receive reports through various whistleblowing systems such as system of employees and operate an award system. We have increased
internal and external whistleblowing channels, email, telephone, and the weight of compliance items in the evaluation of executives
Period Topic Description Areas
fax. Whistleblowing channels provide information on whistleblower and include compliance items in the evaluation of organizational
Compliance of South Korean quality Trade secrets,
protection. In addition, we operate in accordance with the principle of performance. Moreover, SEC Annual Awards are presented by the CEO to
organizations technology misuse
Q1 not providing disadvantages to protect the identity of whistleblowers employees and organizations for their contributions to building a culture
Compliance of third-party production Technology leakage,
by stipulating in the internal regulations of ‘confidentiality of of compliance.
partners in South Korea and overseas product liability
whistleblowers and report content’, ‘prevention and suspension of any
Voluntary compliance of overseas Compliance program unfavorable dispositions against whistleblowers and investigation
Samsung Compliance Committee
subsidiaries operation status The Samsung Compliance Committee holds monthly regular meetings
Q2
supporters, remedial actions for damage, and sanctions on those who
and special meetings to review various issues including external
Risks related to infringement of incur unfavorable dispositions.’ Upon receiving a report, we conduct an
Trade secrets
customer trade secrets sponsorship and internal transactions. It also operates a separate
investigation to confirm the relevant facts, take action in accordance with
whistleblowing channel to receive reports on violations of compliance
Compliance of subsidiaries Trade secrets, privacy internal standards, and take disciplinary action against the perpetrators
obligations. In addition, the Committee conducted various activities,
Q3 Consumer protection, and responsible persons for cases of violation of company processes. In
Compliance of online sales sites including visits to Samsung Electronics' Pyeongtaek semiconductor
dark patterns addition, for fraudulent reports that are confirmed to be true, disciplinary
site, visits to Samsung SDI’s Cheonan campus, and Samsung Member
action is taken depending on the severity of the case, and the results are
Risks related to external sponsorships Companies Compliance Workshops.
Anti-corruption, fair trade reported to the Audit Committee twice a year.
and internal transactions
Q4 The Compliance Committee of Samsung Electronics continuously
Compliance of patent application Technology misuse,
process trade secrets
Assess Legal Risks, Compliance Control System Effectiveness provides various recommendations and opinions to improve the
We categorize major violations of laws and regulations in areas such as compliance monitoring system of Samsung member companies, and
fair trade and anti-corruption, analyze the likelihood and impact of such Samsung Electronics has prepared and executed implementation plans
violations, select key risks, and reflect the results of the risk assessment in response to these recommendations and opinions.
into compliance programs such as employee training.
We also evaluate whether the Company's compliance controls have

operated in accordance with applicable regulations and report findings
to the Board of Directors.
Facts & Figures
56 Economic Performance
57 Social Performance
62 Environmental Performance
65 Available Water Resources by Region
66 Performance by Division
Economic Performances
Key Financial Performance1) 2021 2022 2023 Economic Value Distribution 2021 2022 2023
Sales KRW 1 trillion 279.6 302.2 258.9 [Suppliers] Purchasing costs KRW 1 trillion 192.0 219.8 212.8
Operating profit KRW 1 trillion 51.6 43.4 6.6 [Local communities] CSR costs KRW 1 trillion 0.4 0.4 0.4
Net income KRW 1 trillion 39.9 55.7 15.5 [Shareholders and investors]
KRW 1 trillion 9.8 9.8 9.8
Dividends
1) Based on consolidated financial statements [Shareholders and investors]
% 25 18 68
Dividend payout ratio
Sales by Division1) 2021 2022 2023
[Creditors] Interest costs KRW 1 trillion 0.4 0.8 0.9
Sales by division (absolute value)
[Employees] Personnel expenses KRW 1 trillion 34.6 37.6 38.0
DX KRW 1 trillion 166.3 182.5 170.0
[Government] Taxes and public duties by region
DS KRW 1 trillion 95.4 98.5 66.6 [Government] Taxes and
KRW 1 trillion 10.2 13.0 8.2
SDC KRW 1 trillion 31.7 34.4 31 public duties by region
Harman KRW 1 trillion 10.0 13.2 14.4 Asia % 14.0 11.0 19.1
Sales by division (percentage) Korea % 67.0 74.0 58.1
DX % 55 56 60 Americas and Europe % 16.0 14.0 21.5
DS % 31 30 24 Others % 3.0 1.0 1.3
SDC % 11 10 11 Percentage of distributed economic value
Harman % 3 4 5 Suppliers1) % 77.0 79.3 78.8

Local communities2) % 0. 1 0.1 0.2
1) Based on net sales
3)
Shareholders and investors % 3.9 3.5 3.6
Sales by Region1) 2021 2022 2023
Creditors4) % 0.2 0.3 0.3
Sales by region (absolute value)
Employees5) % 13.9 13.6 14.1
Americas KRW 1 trillion 97.9 119.0 92.1
Government6) % 4.9 3.2 3.0
Europe KRW 1 trillion 50.3 50.3 48.1
1) Suppliers: Costs related to all materials, products, equipment, and services purchased for businesses
Korea KRW 1 trillion 44.0 48.7 45.6 2) Local communities: Total costs of CSR activities
3) Shareholders and investors: Dividends
Asia and Africa2) KRW 1 trillion 87.4 84.3 73.1
4) Creditors: Interest costs
Sales by region (percentage) 5) Employees: Sum of wages, retirement benefits, and welfare benefits included in sales costs, SG& expenses, and R&D expenses
Americas % 35 39 35 6) Government: Sum of corporate taxes (based on cash flow statement) and other taxes and public duties
Europe % 18 17 19
Korea % 16 16 18
Asia and Africa2) % 31 28 28
1) Based on net sales

2) Starting in 2023, Asia and Africa data includes China data
Social Performance
Compliance and Ethics 2021 2022 2023 Corporate Citizenship 20213) 2022 2023
Compliance training Employee volunteer hours
Compliance training1) Individuals 141,723 126,867 138,742 Total employee volunteer hours1) Hours 824,329 1,068,867 652,677
Anti-corruption training Volunteer hours per employee Hours 3.04 3.95 2.44
2) 2)
Anti-corruption training Individuals 198,592 254,045 254,511 Cumulative number of beneficiaries
Compliance whistleblowing Samsung SW Academy for Youth Individuals 3,950 6,250 8,550
3)
Compliance whistleblowing Cases 911 1,098 1,400 Samsung Dream Class Individuals 112,602 116,999 124,604
Corruption whistleblowing Samsung Smart School3) Individuals 5,917 5,917 5,917
4)
Corruption whistleblowing Cases 929 999 892 Samsung Junior SW Academy Individuals 112,341 156,061 210,294
Corruption whistleblowing rate % 12 13 16 Samsung Stone of Hope Individuals 10,476 16,760 27,065
Consumer complaint rate % 30 34 36 Samsung Blue Elephant Individuals 353,201 662,142 940,029
Others % 58 54 49 Samsung Solve for Tomorrow Individuals 2,146,951 2,397,255 2,619,592
1) Scope of data collection for compliance training: Employees at our business sites in Korea (including part-time employees) Samsung Innovation Campus Individuals 74,984 119,807 177,619
2) Scope of data collection for anti-corruption training: Employees at our business sites in Korea and other regions
1) Total employee volunteer hours: Including employees at all of our business sites in Korea and other regions
3) Compliance whistleblowing data: Based on statistics from our compliance microsite https://sec-compliance.net
2) Korean youth education programs jointly operated by all Samsung Member companies
4) Corruption whistleblowing data: Based on statistics from our ethics microsite https://sec-audit.com
3) Samsung Smart School: 2021 beneficiaries maintained until 2023
SME Support 2021 2022 2023

Status of Sanctions
The Republic of Korea Personal Information Protection Commission issued a corrective order and imposed Beneficiaries of smart factory support
on Samsung Electronics a penalty surcharge of KRW 875.6 million and a fine of KRW 2.4 million for violation Beneficiaries of smart factory support1) Companies 284 268 196
of Enforcement Decree 48-2(1)2 of Article 29 (Obligations to Take Safety Measure) of the Privacy Act on Partner companies in our supply chains Companies 24 35 26
August 18th, 2023, which was paid in full. Samsung Electronics is striving to comply with relevant laws Non-partner companies Companies 260 233 170
through training our system operation partners and strengthening security-related contracts. For the 1) Beneficiaries of smart factory support: 2022 figures corrected after publication of 2023 Sustainability Report due to business discontinuation
status of other sanctions imposed on the company, please refer to Samsung Electronics’ Semi-Annual of nine beneficiary companies
Business Report.
Privacy Protection 2021 2022 2023
In-house consulting Cases 6,273 5,858 8,302
Response to government request for information1)
Requests Cases 179 187 594
Responses Cases 122 126 456
Response rate % 68 67 77
1) Response to government requests for information: Compiled statistical data with regards to warrants issued by Korean courts in accordance
with applicable Korean laws
Employee Status 2021 2022 2023 2021 2022 2023
Number of employees Number of non-Samsung Electronics Employees6)
Total number of employees1) Individuals 266,644 270,278 267,860 Men Individuals 31,951 32,883 36,734
Korea Individuals 111,126 117,927 120,756 Women Individuals 13,270 16,786 20,383
Global* Individuals 155,518 152,351 147,104 Others** Individuals 4,888 4,917 5,133
Number of employees by employment type Number of non-Samsung Electronics employees by region
Non-fixed-term employees Individuals 262,415 266,233 264,131 Korea Individuals 34,428 38,492 43,902
Fixed-term employees2) Individuals 4,229 4,045 3,729 Asia Individuals 4,859 5,153 7,669
Number of employees by age group North America and Central and South America Individuals 4,007 3,654 3,711
Under 30 Individuals 89,897 83,155 72,525 Europe Individuals 5,004 5,847 5,479
30s Individuals 108,459 111,607 113,874 CIS Individuals 1,108 579 504
40 and above Individuals 68,288 75,516 81,461 Middle East and Africa Individuals 703 861 985
Number of employees by job type Welfare benefit expenses in Korea and abroad
Development Individuals 75,218 80,423 83,729 Welfare benefit expenses in Korea and abroad KRW 1 billion 5,073 6,092 6,473
Manufacturing Individuals 122,811 117,190 109,722 1) N umber of employees: As of year end (excluding those dispatched by partner companies, on leave, interns, and full-time students)
2021 and 2022 figures updated due to changes in calculation standard
Quality assurance and EHS Individuals 19,457 19,763 21,386
2) F ixed-term employees: Those hired pursuant to the Act on the Protection of Fixed-Term and Part-Time Employees at our business sites in
Sales and marketing Individuals 23,257 24,703 25,136 Korea and subcontractors and apprentices at our global business sites
3) Working-level employees: Encompassing those opting for flexible work arrangements and those not categorized under the manager and
Others Individuals 25,901 28,199 27,887 executive levels
Number of employees by rank 4)E xecutive-level employees: Including those at the vice president level or higher (excluding Masters, Fellows, and advisors) at our Korean
business sites and at the vice president level and higher at our global business sites (excluding global advisors since 2023)
3)
Working level Individuals 184,718 182,323 174,060 5) Number of employees by region: Starting in 2023, Southeast Asia, Southwest Asia, Japan, and China figures combined and Middle East and
Africa values combined
Manager level Individuals 80,532 86,498 92,315
6) Number of non-Samsung Electronics employees: including those dispatched by partner companies, interns (including those experiencing
Executive level 4) Individuals 1,394 1,457 1,485 work for educational or training purposes) at global sites. 2021, 2022 data updated due to changes in calculation standard.
* "Global" refers to countries excluding Korea
Number of employees by region5)
** Those who chose not to indicate their gender
Korea Individuals 111,126 117,927 120,756
Percentage of New Female Hires and Retirement Rate 2021 2022 2023
Asia Individuals 112,376 106,790 100,938
Percentage of new female hires
North America and Central and South America Individuals 25,694 27,166 27,882
Korea % 27.5 27.9 28.1
Europe Individuals 10,424 11,709 12,001
Global % 33.0 29.4 28.4
CIS (Commonwealth of Independent States) Individuals 2,279 1,756 1,611
Retirement rate1)
Middle East and Africa Individuals 4,745 4,930 4,672
Total retirement rate % 13.9 12.9 10.6
2)
Retirement rate of men % 7.6 7.0 5.9
Retirement rate of women2) % 6.3 5.9 4.6
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
Diversity, Equity, and Inclusion 2021 2022 2023 2021 2022 2023
Percentage of female employees In-house daycare centers maximum capacity
Percentage of female employees1) % 36.3 35.1 33.7 In-house daycare centers maximum capacity4) Individuals 2,608 2,628 2,642
Percentage of female employees by job type Number of in-house daycare centers

Development % 18.8 19.2 19.2 Number of in-house daycare centers 4) Centers 11 11 11
Manufacturing % 46.8 45.1 43.0 Number of employees with disabilities

Quality assurance and EHS % 42.3 40.8 38.6 Number of employees with disabilities5) Individuals 1,632 1,732 1,931
Sales and marketing % 32.3 33.6 34.0 Percentage of employees with disabilities
Others % 36.0 35.9 36.8 Percentage of employees with disabilities6) % 1.6 1.6 1.8
Percentage of female employees by region 1) Percentage of female employees: Based on the total number of employees
2) Number of employees on parental leave: Based on the number of employees at business sites in Korea
Korea % 25.1 25.2 25.3
3) Rate of return to work after parental leave: Based on the number of employees at business sites in Korea
Asia % 48.6 47.0 44.2 4) In-house daycare centers maximum capacity and number of in-house daycare centers: Based on Samsung Electronics operated daycare
centers (2021, 2022 data updated due to exclusion of Samsung Display operated daycare centers)
North America and Central and South America % 34.9 34.4 33.6
5) Number of employees with disabilities: Based on the number of employees with disabilities at our business sites in Korea as reported to
Europe % 33.8 34.0 34.0 the Korea Employment Agency for Persons with Disabilities (including those hired by our subsidiary standard workplace for people with
disabilities since 2023); 2021, 2022 data updated due to changes in figure calculation standards
CIS % 35.0 40.8 41.8 6) Percentage of employees with disabilities: Based on the percentage of employees with disabilities at our business sites in Korea as reported
to the Korea Employment Agency for Persons with Disabilities (including those hired by our subsidiary standard workplace for people with
Middle East and Africa % 17.9 19.1 20.4
disabilities); 2021, 2022 data updated due to changes in figure calculation standards
Percentage of female employees by rank
Working Level % 45.3 43.9 42.5 Safety and Health 2021 2022 2023
Manager Level % 16 16.9 17.6 Incident frequency rate1) % 0.106 0.155 0.103
Executive Level % 6.8 6.9 7.3 Injury rate2) % 0.022 0.031 0.025
2)
Number of employees on parental leave Injury rate of suppliers3) % 0.076 0.094 0.065
Men Individuals 999 1,310 1,304
1) Incident frequency rate: (Number of incidents / Total working hours) x 1,000,000; based on employees in Korea and at our global manufacturing
Women Individuals 2,936 3,054 3,17 3 sites
2) Injury rate: (Number of incidents / Number of on-site employees) x 100; based on employees in Korea and at our global manufacturing sites
Rate of return to work after parental leave3) 3) Injury rate of suppliers: Based on suppliers stationed at our sites
Men % 96.3 96.5 97.7
Women % 98.9 98.9 99.0
Career Development 2021 2022 2023 Sustainable Supply Chain 2021 2022 2023
Number of training sessions Global network
Total 10,000 cases 818 914 950 Global number of suppliers1) Companies 2,129 2,131 2,515
Korea 10,000 cases 452 508 463 Comprehensive supplier evaluations
Global 10,000 cases 366 407 487 Percentage of evaluated suppliers2) % 93 89 92
Hours of training per employee Percentage of suppliers rated outstanding % 68 62 71
Hours of training per employee1) hours 54.9 60.1 66.9 Percentage of suppliers with environmental management
% 88 90 87
Korea hours 67.7 70.5 77.5 system (ISO 14001, etc.) certification3)
Global hours 45.7 52.1 58.2 Percentage of suppliers with health and safety system
% 47 50 51
(ISO 45001, etc.) certification4)
Average hours of training by gender
Global Purchasing Code of Conduct compliance
Men hours 58.2 61.1 66.0
Korean SME suppliers paid 100% within 10 days Companies 576 589 574
Women hours 48.2 58.3 68.6
Partner Collaboration Fund support
Average hours of training by employment type
Partner Collaboration Fund Support KRW 100 million 9,734 9,942 10,359
Regular employees hours 54.8 60.5 67.3
2) First-tier suppliers KRW 100 million 6,590 6,997 6,953
Non-regular employees hours 43.8 40.3 42.4
Second-tier and third-tier suppliers KRW 100 million 3,144 2,945 3,406
Training expenses
Supplier incentives
Total training expenses3) KRW 100 million 1,321 1,853 2,090
4) Supplier incentives KRW 100 million 893 931 650
Training expenses per employee KRW 1,000 1,188 1,571 1,731
Companies participating in supplier training
Ratio of training expenses to sales5) % 0.05 0.07 0.08
Companies participating in supplier training5) Companies 911 1,381 1,739
Ratio of training expenses to personnel
% 0.8 0.5 0.5 First-tier suppliers Companies 520 865 1,114
expenses6)
Re-employment through the Career Consulting Center7) Second-tier and third-tier suppliers Companies 391 516 625
Re-employment applicants Individuals 7,940 8,246 8,838 Employees participating in supplier training
Re-employed Cases 6,982 7,286 7,653 Employees participating in supplier training6) Individuals 18,725 22,924 32,566
Rate of Re-employment % 87.9 88.4 86.6 First-tier suppliers Individuals 17,423 20,722 30,417
1) Average training hours per employee: Online training + offline training Second-tier and third-tier suppliers Individuals 1,302 2,202 2,149
2) Non-regular employees: subcontractors + apprentices 1) Global number of suppliers: Sum of suppliers by country since 2023
3) Total training expenses: Employees in Korea 4. Training expenses per employee: Total training expenses / Total number of employees in Korea 2) Percentage of evaluated suppliers: Annual comprehensive supplier evaluation - in 7 areas - applies to all suppliers, except for those registered
5) Ratio of training expenses to sales: Total training expenses / Sales (sales of DX division (absolute value) + sales of DS division (absolute value)) for less than a year
6) Ratio of training expenses to personnel expenses: Total training expenses / Total compensation for employees of the headquarters in Korea 3) P ercentage of suppliers with environmental management system (ISO 14001, etc.) certification: Fulfillment of ISO 14001 or equivalent is
7) Cases of re-employment support through the Career Development Center: Cumulative sum since 2001 required as part of the Standard Supplier Contract
4) Percentage of suppliers with health and safety system (ISO45001, etc.) certification: Includes 23 suppliers with SA8000 certification
5) Companies participating in supplier training: Sum of Partner Collaboration Academy training cases between DX and DS Divisions, including
overlap, updated since 2022 to account for DS Division Partner Collaboration Academy training progress
Transparency in Responsible Minerals Sourcing Management 2021 2022 2023

1)
On-site audits of suppliers Companies 493 438 315
1) On-site audits of suppliers aimed at eradicating the use of conflict minerals
Innovation Support for First-tier Suppliers 2021 2022 2023 Supplier Third-Party Audit Compliance Rate by Area1) 2021 2022 2023
Innovation support for first-tier suppliers 1)
Companies 30 66 91 First-tier Second-tier
Korea Companies 30 61 88 Ethics
Global Companies 0 5 3 Corporate ethics % 98 100 98 100
Supply-chain work environment management Prohibition of ill-gotten gains % 98 100 100 100
First-tier suppliers performing third-party audits Companies 108 121 93 Information disclosure % 100 100 100 100
Intellectual property % 100 99 100 100
1) Innovation support for first-tier suppliers: Sum of consulted DX Division suppliers and component equipment consulting supported DS Division
suppliers Confidentiality and prohibition of retaliation % 100 100 100 100
Privacy protection % 99 100 100 100
Supplier Third-Party Audit Compliance Rate by Area1) 2021 2022 2023
Management System
First-tier Second-tier
Will of compliance % 100 98 100 100
Labor and human rights
Management responsibility % 100 95 99 100
Freely chosen employment 2) % 98 98 99 100
Risk assessment % 97 92 100 100
Guarantee of freedom of movement % 99 100 99 100
Training % 100 98 99 100
Prohibition of child labor % 100 100 100 100
Communication % 99 97 100 100
Protection of underage workers % 100 100 99 100
Employee feedback % 99 100 99 100
Working hours % 87 93 85 78
Remedial action % 98 95 97 92
Guarantee of at least one day off per week % 97 97 96 95
3) Management of business improvement targets % 98 93 97 100
Wages and benefits % 91 96 95 92
Humane treatment % 100 100 99 100 1) Figures include improvement implementation results based on each year’s third-party audit, performed on 102 suppliers in 2023 (93 1st-tier, 9
2nd-tier suppliers)
Non-discrimination4) % 100 100 100 100 2) Freely chosen employment: Including prohibition of forced labor and establishment of relevant policies, labor contract-signing, guarantee of
5) freedom of movement and prohibition of keeping the original copy of an employee’s identification document
Freedom of association % 99 98 99 100
3) Wages and benefits: Including accurate calculation and payment of wages, provision of wage statements, prohibition of delay in the payment
Safety and Health 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
Occupational safety % 96 95 96 100 and pay, establishment of non-discrimination policies and procedures, provision of spaces for religious gathering
Emergency preparedness % 95 94 98 96 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
Occupational injury and illness % 99 98 99 100
Physically demanding work % 99 97 99 100
Machine safeguarding % 99 98 96 100
Sanitation, food, and housing % 99 99 99 100
Environment
Pollution prevention % 98 99 98 100
Hazardous substances % 99 96 98 100
Wastewater and solid waste % 100 98 99 100
Air emissions % 100 99 99 94
Materials restrictions % 100 100 100 100
Environmental Performance
GHG Emission Management (Scope 1, 2) 2021 2022 2023 GHG Emissions Management (Scope 3)1) 20212) 2022 2023
1)
(Market based) GHG emissions 1,000 tonnes CO₂e 17,400 15,053 13,291 Use of sold products 1,000 tonnes CO₂e 101,236 94,776
Scope 3 emissions
Direct emissions (Scope 1) 1,000 tonnes CO₂e 7,604 5,972 3,733 Disposal of sold products 1,000 tonnes CO₂e calculated with 1,206 1,339
Indirect emissions (Scope 2) 1,000 tonnes CO₂e 9,796 9,081 9,558 Leased assets 1,000 tonnes CO₂e new standards 1 3
since 2022
(Region based) GHG emission 1,000 tonnes CO₂e 20,170 19,892 18,303 Investments 1,000 tonnes CO₂e 52 169
Direct emissions (Scope 1) 1,000 tonnes CO₂e 7,604 5,972 3,733 1) Internal calculation standard of 14 categories has been set in 2022 and all the categories have been assured by an independent 3rd party. Data
used for calculating some Scope 3 emissions (Purchased goods & services, Capital goods, and Processing of sold products) are calculated based
Indirect emissions (Scope 2) 1,000 tonnes CO₂e 12,566 13,920 14,570 on previous year's data when suppliers' emissions data was available.
2) Scope 3 emissions and assured categories in 2021: 123,235,000 tonnes CO2e, sum of 12 categories (NOT including capital goods, processing of
GHG emissions intensity 2), 3) Tonne CO₂e/KRW 100 million 6 5 6
sold products, and franchises)
GHG emissions3), 4)
CO₂ 1,000 tonnes CO₂e 11,005 10,336 10,778
CH₄ 1,000 tonnes CO₂e 3 3 3
N2 O 1,000 tonnes CO₂e 489 530 540
HFCs 1,000 tonnes CO₂e 902 679 314
PFCs 1,000 tonnes CO₂e 4,787 3,333 1,533
Energy Management 2021 2022 2023
SF6 1,000 tonnes CO₂e 214 173 124
1) GHG emissions from business sites: Energy consumption at business sites
Calculated based on country-specific GHG management guidelines, the IPCC Guidelines, and ISO 14064
Energy consumption at business sites GWh 32,322 35,177 36,399
2)G HG emissions intensity: GHG emissions from business sites (Scope 1, 2) / Sales (sales of DX division (absolute value) + sales of DS division
(absolute value), KRW 100 million) Electricity GWh 25,767 28,316 29,956
3) Market-based GHG emission
4) NF3 emission calculation methodology is under developed and planned to be released in our 2025 Sustainability Report Korea GWh 19,132 21,360 23,217
China GWh 3,161 3,409 3,304
India GWh 132 148 161
GHG Emissions Management (Scope 3)1) 20212) 2022 2023
Southeast Asia GWh 1,655 1,581 1,522
Other indirect emissions (Scope 3) 1,000 tonnes CO₂e 124,715 119,730
North America GWh 1,516 1,635 1,579
Purchased products and services 1,000 tonnes CO₂e 14,596 12,880
Europe GWh 137 135 126
Capital goods 1,000 tonnes CO₂e 1,508 2,663
Africa and Middle East GWh 34 48 47
Fuel- and energy-related activities 1,000 tonnes CO₂e 900 3,058
1)
Scope 3 emissions Others GWh 6,555 6,861 6,443
Upstream transportation and distribution 1,000 tonnes CO₂e 3,965 4,098
calculated with 2) MWh/
Waste generation and treatment 1,000 tonnes CO₂e 246 156 Energy intensity 12.4 12.5 15.4
new standards KRW 100 million
Business trips of employees 1,000 tonnes CO₂e since 2022 87 108 Renewable energy consumption GWh 5,278 8,704 9,289
Commuting of employees 1,000 tonnes CO₂e 303 300 Renewable energy transition rate % 20.5 30.7 31.0
Rented assets 1,000 tonnes CO₂e 107 9
1) Others (Energy consumption at business sites): LNG
Downstream transportation and distribution 1,000 tonnes CO₂e 366 40 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)
Processing of sold products 1,000 tonnes CO₂e 142 131
Collection and Recycling of E-waste 2021 2022 2) 2023 Energy Efficiency of Products1) 2021 2022 2023
1)
Cumulative amount of e-waste collected Tonnes 5,099,436 5,698,008 6,297,161 Energy efficiency improvement rate
Amount of e-waste collected Product energy consumption reduction rate % 13.3 16.4 25.1
Amount of e-waste collected Tonnes 559,281 598,572 599,153 1) Product energy consumption reduction rate for each year relative to 2019 identical performance/specification models for 7 major product
categories
Asia and Oceania Tonnes 311,687 220,357 235,197
*Data for amount of GHG emissions reduced in the product use phase by year is being reviewed to refine its consistency with the GHG protocol
Americas Tonnes 46,584 45,842 54,014
Europe Tonnes 201,010 332,374 309,942
Resource Efficiency of Products 2021 2022 2023
1) Cumulative amount of e-waste collected from 2009
Plastic with recycled resin
2) 2022 figures updated (due to delay in data collection in some countries)
Cumulative use1) Tonnes 310,291 409,117 567,056
Amount used by year Tonnes 33,319 98,826 157,939
Amount of E-waste Collected by Year and Product Type1) 2021 2022 2023
Percentage of Plastic with recycled
Amount of e-waste collected by year and % 4.4 13.9 25
Tonnes 120,718 132,681 140,162 resin used2)
product type
Recycled packaging
Heat exchanger Tonnes 75,463 75,879 89,754
Recycled packaging3) Tonnes 13,788 13,011 15,273
Display Tonnes 9,249 10,644 12,840
1) Cumulative use from 2009
Telecommunications service equipment Tonnes 3,292 1,930 2,155
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
Other electric and electronics equipment Tonnes 32,715 44,228 35,414
Amount of materials recovered for recycling2)

Waste Management 2021 2022 2023
Amount of materials recovered for recycling Tonnes 103,716 111,406 117,025
Amount of waste generated
Scrap metals Tonnes 55,843 57,763 61,422
Amount of waste generated Tonnes 1,324,972 1,413,365 1,314,923
Nonferrous metal Tonnes 12,489 11,996 12,356
General waste Tonnes 903,753 931,929 881,175
Synthetic resin Tonnes 28,354 33,157 35,752 1)
Hazardous waste Tonnes 421,219 481,436 433,748
Glass Tonnes 3,057 4,068 3,183
Amount of waste treated
Others Tonnes 3,973 4,422 4,312
Amount of waste treated Tonnes 1,324,972 1,413,365 1,314,923
1) Amount of e-waste collected by year and product type: Based on data collected in Korea Amount of waste recovered for recycling Tonnes 1,268,985 1,364,367 1,276,662
*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” Incineration (off-site) Tonnes 26,078 25,479 31,007
2) Amount of materials recovered for recycling: Based on data collected in Korea
Landfill (off-site) Tonnes 19,480 14,927 4,622
Others Tonnes 10 8,593 2,632
Percentage of waste recovered for recycling
Percentage of waste recovered for recycling % 96 97 97
1) Hazardous waste: Based on monitoring standards of individual countries where our business sites are located
Water Management 2021 2022 2023 Pollutant Management1) 2021 2022 2023
Water intake Air pollutant emissions
Water intake 1,000 tonnes 163,6601) 172,811 177,361 NOx Tonnes 717 785 720
Municipal water (surface water) 1,000 tonnes 163,102 172,112 176,575 SOx Tonnes 19 35 43
2)
Groundwater 1,000 tonnes 558 698 786 NH₃ Tonnes 68 95 125
Wastewater discharge HF Tonnes 22 19 16
2)
Wastewater discharge 1,000 tonnes 130,955 136,118 142,995 PM Tonnes 163 207 142
Water reused Volatile organic compound emissions
Water reused 1,000 tonnes 93,949 116,590 122,891 Volatile organic compound emissions Tonnes 314 394 398
Ultra-pure water reused Water pollutant discharge
Supply 1,000 tonnes 61,986 70,989 71,487 TOC (Korea)3) Tonnes - - 294 3)
Recovery 1,000 tonnes 22,543 24,731 22,004 COD (Global) Tonnes 906 846 5343)
3)
Supplier’s water consumption BOD Tonnes 266 313 412
Supplier’s water consumption 1,000 tonnes 84,737 94,814 97,482 SS Tonnes 393 411 931
1), 2) 2021 data updated for error correction F Tonnes 520 576 626
3) Suppliers’ water consumption: Based on the water consumption for Samsung Electronics product manufacturing by the top 90% of suppliers
Heavy metals Tonnes 13 16 17
in terms of transaction scale
Consumption of ozone depleting substances (CFC-eq)4)
Consumption of ozone depleting substances (CFC-eq) Tonnes 1 2 1
Workplace Environment Management 2021 2022 2023
Investment in EHS KRW 100 million 13,997 21,836 20,284 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
Violations of environment- gradually replacing the refrigerants for freezers and air conditioners with alternatives with less ozone depletion potential (ODP). We are also
Cases - 2 1 1) working to remove water pollutants through our optimized wastewater treatment facilities prior to wastewater discharge.
related laws and regulations
2) Previous dust emissions disclosure standards changed
1) For details please refer to pg.68 of the Sustainability Report 3) Apply data separately into TOC (Korea) and COD (Global) starting from 2023
4) Scope of data collection: Korea
Chemical Substance Management1) 2021 2022 2023

2)
Chemical substance management 1,000 tonnes 520 578 518
Major hazardous substances leakages Cases - - -

2) Chemicals consumption: Based on European Pollutant Release and Transfer Register (E-PRTR) from 2018
Available Water Resources by Region
Water intake Water discharge

Water intake from third-party sources
(local governments, water utility Direct Intake Direct discharge Treatment and
Region Amount of Amount of Basins
Total intake companies, etc.) Total discharge into freshwater discharge by third-
water used water reused
ecosystems party agencies
Surface water Groundwater Surface water Groundwater1)
2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023
4 including
1,000
Korea 130,958 139,527 130,664 139,210 - - - - 295 317 103,786 113,198 63,633 60,225 40,153 52,973 27,171 26,318 86,331 94,231 the Han
tonnes
River
3 including
1,000
China 18,733 16,386 18,733 16,386 - - - - - - 15,324 13,309 - - 15,324 13,309 3,409 3,076 22,917 21,537 the Huang
tonnes
He River
2 including
1,000
Europe 365 256 329 243 - - - - 36 13 224 171 - - 224 171 142 85 - - the Danube
tonnes
River
1,000
Russia 56 19 56 17 - - - - - 2 30 17 - - 30 17 26 2 23 18 Volga River
tonnes
4 including
1,000
Southeast Asia 10,901 10,470 10,901 10,470 - - - - - - 8,541 8,448 213 230 8,328 8,218 2,361 2,022 2,555 2,763 the Hong
tonnes
River
2 including
1,000
Southwest Asia 493 489 493 384 - - - - - 106 35 178 - - 35 178 458 311 199 243 the Ganges
tonnes
River
4 including
1,000 the Lower
North America 10,734 9,675 10,734 9,675 - - - - - - 7,894 7,364 - - 7,894 7,364 2,840 2,312 4,557 4,093
tonnes Colorado
River
2 including
Central and 1,000
381 360 14 11 - - - - 367 349 115 158 96 140 19 18 267 202 8 7 the Amazon
South America tonnes
River
2 including
1,000
Africa 188 179 188 179 - - - - - - 169 152 - - 169 152 19 27 - - the Nile
tonnes
River
1,000
Total 172,811 177,361 172,113 176,575 - - - - 698 786 136,118 142,995 63,942 60,595 72,176 82,400 36,691 34,356 116,590 122,891
tonnes
1) Groundwater values includes rainwater
Performance by Division
2021 2022 2023 20212) 2022 2023

GHG Emissions Management (Scope 1, 2) DX Division DS Division DX Division DS Division DX Division DS Division 1) DX DS DX DS DX DS
GHG Emissions Management (Scope 3) Division Division Division Division Division Division
1)
(Market Based) GHG emissions 1,000 tonnes CO₂e 1,790 15,610 366 14,687 313 12,978
Processing of sold products 1,000 tonnes CO₂e - 142 - 131
Direct emissions (Scope 1) 1,000 tonnes CO₂e 263 7,341 254 5,718 211 3,522 Scope 3
Use of sold products 1,000 tonnes CO₂e 92,365 8,871 86,023 8,753
Indirect emissions (Scope 2) 1,000 tonnes CO₂e 1,527 8,269 112 8,969 102 9,456 emissions
Disposal of sold products 1,000 tonnes CO₂e calculated with 1,200 7 1,338 1
GHG emissions2)
Leased assets 1,000 tonnes CO₂e new standards 1 - 2 1
CO₂ 1,000 tonnes CO₂e 1,781 9,224 364 9,971 311 10,467 since 2022
Investments 1,000 tonnes CO₂e 26 26 156 13
CH₄ 1,000 tonnes CO₂e - 3 1 2 0.5 2
N₂O 1,000 tonnes CO₂e 8 481 1 529 1 539 1) Internal calculation standard of 14 categories has been set in 2022 and all the categories have been assured by an independent 3rd party. Data
used for calculating some Scope 3 emissions (Purchased goods & services, Capital goods, and Processing of sold products) are calculated based
HFCs 1,000 tonnes CO₂e 1 901 - 679 - 314 on the previous year's data when suppliers' emissions data was available.
2) Sum of Scope 3 emissions and assured categories in 2021: 123,235,000 tonnes CO2e, sum of 12 categories (NOT including capital goods,
PFCs 1,000 tonnes CO₂e - 4,787 - 3,333 0.2 1,532 processing of sold products, and franchises)
SF₆ 1,000 tonnes CO₂e - 214 - 173 - 124
1) GHG emissions from business sites: Calculated based on country-specific GHG management guidelines, the IPCC Guidelines, and
ISO 14064
2) We are developing calculation methodology for NF3 emissions and plan to release emission figures in the 2025 Sustainability Report 2021 2022 2023
Energy Management DX Division DS Division DX Division DS Division DX Division DS Division
Energy consumption at business sites

Energy consumption at business sites GWh 4,396 27,926 4,324 30,850 4,015 32,384
Electricity GWh 3,143 22,624 3,067 25,249 2,914 27,042
20212) 2022 2023 Others1) GWh 1,253 5,302 1,257 5,601 1,101 5,342
1) DX DS DX DS DX DS Renewable energy consumption
GHG Emissions Management (Scope 3) Division Division Division Division Division Division
Renewable energy consumption GWh 556 4,722 2,856 5,849 2,720 6,569
Other indirect emissions (Scope 3) 1,000 tonnes CO₂e 109,951 14,764 101,639 18,091
Renewable energy transition rate % 17.7 20.9 93.1 23.2 93.4 24.3
Purchased products and services 1,000 tonnes CO₂e 11,735 2,861 9,383 3,497
1) Others (Energy consumption at business sites): LNG
Capital goods 1,000 tonnes CO₂e - 1,508 - 2,663
Fuel- and energy-related activities 1,000 tonnes CO₂e Scope 3 163 737 433 2,625
emissions
Upstream transportation and distribution 1,000 tonnes CO₂e 3,727 238 3,925 173
calculated with
Waste generation and treatment 1,000 tonnes CO₂e new standards 27 219 42 114
Business trips of employees 1,000 tonnes CO₂e since 2022 69 19 79 29
Commuting of employees 1,000 tonnes CO₂e 229 74 218 82
Rented assets 1,000 tonnes CO₂e 53 53 6 3
Downstream transportation and distribution 1,000 tonnes CO₂e 357 9 34 6
2021 2022 2023 20212) 2022 2023
1)
Energy Efficiency of Products DX Division DS Division DX Division DS Division DX Division DS Division Collection and Recycling of E-waste DX Division DS Division DX Division DS Division DX Division DS Division
Energy efficiency improvement rate Glass T** 3,057 N/A 4,068 N/A 3,183 N/A
Product energy consumption Other T** 3,973 N/A 4,422 N/A 4,312 N/A
% 13.3 N/A 16.4 N/A 25.1 N/A
reduction rate 1) Cumulative amount of e-waste collected: from 2009
1) Product energy consumption reduction rate for each year relative to 2019 identical performance/specification models for 7 major product categories 2) 2022: Figures updated (due to the delay in data collection in some countries)
*Data for amount of GHG emissions reduced in the product use phase by year is being reviewed to refine its consistency with the GHG protocol 3) Amount of e-waste collected by year and product type: from 2009
*e -waste classification changed in 2021 from the existing system of “large-sized equipment, telecommunications service equipment, medium-sized
equipment, and small-sized equipment”
2021 2022 2023 4) Amount of materials recovered for recycling: based on data collected in Korea
** T = Tonnes
Collection and Recycling of E-waste DX Division DS Division DX Division DS Division DX Division DS Division
2021 2022 2023
Cumulative amount of e-waste
1) T** 5,099,436 N/A 5,698,0082) N/A 6,297,161 N/A Resource Efficiency of Products DX Division DS Division DX Division DS Division DX Division DS Division
collected
Amount of e-waste collected Plastic with recycled resin
Amount of e-waste collected T** 559,281 N/A 598,5722) N/A 599,153 N/A Cumulative use1) T* 310,291 N/A 409,117 N/A 567,056 N/A
Asia and Oceania T** 311,687 N/A 220,357 2)
N/A 235,197 N/A Amount used by year T* 33,319 N/A 98,826 N/A 157,939 N/A
Americas T** 46,584 N/A 45,8422) N/A 54,014 N/A Percentage of Plastic with recycled
% 4.4 N/A 14 N/A 25 N/A
Europe T** 201,010 N/A 332,3742) N/A 309,942 N/A resin used2)
Recycled packaging
Amount of e-waste collected by
year and product type3) Recycled packaging3) T* 13,788 N/A 13,011 N/A 15,273 N/A
Amount of e-waste collected by year 1) Cumulative use: from 2009

T** 120,718 N/A 132,681 N/A 140,162 N/A 2) Percentage of plastic with recycled resin used: amount of plastic with recycled resin used / total amount of plastic used
and product type
3) Recycled packaging; based on data collected in Korea
Heat Exchanger T** 75,463 N/A 75,879 N/A 89,754 N/A * T = Tonnes
Telecommunications service
T** 9,249 N/A 10,644 N/A 12,840 N/A 2021 2022 2023
equipment
Display T** 3,292 N/A 1,930 N/A 2,155 N/A Waste Management DX Division DS Division DX Division DS Division DX Division DS Division
Other electric and electronics Amount of waste generated

T** 32,715 N/A 44,228 N/A 35,414 N/A
equipment Amount of waste generated T* 348,459 976,513 329,861 1,083,504 307,325 1,007,598
Amount of materials recovered for recycling4) General waste T* 290,841 612,912 274,126 657,803 254,748 626,427
Amount of materials recovered for Hazardous waste1) T* 57,618 363,601 55,735 425,701 52,577 381,171
T** 103,716 N/A 111,406 N/A 117,025 N/A
recycling Amount of waste treated
Scrap metal T** 55,843 N/A 57,763 N/A 61,422 N/A Amount of waste treated T* 348,459 976,513 329,861 1,083,504 307,325 1,007,598
Nonferrous metal T** 12,489 N/A 11,996 N/A 12,356 N/A Amount of waste recovered for
T* 321,520 947,465 308,670 1,055,697 284,484 992,177
Synthetic resin T** 28,354 N/A 33,157 N/A 35,752 N/A recycling
Incineration (off-site) T* 8,444 17,634 7,069 18,410 18,509 12,499
Landfill (off-site) T* 18,135 1,345 13,809 1,118 3,920 702
Others T* 361 10,069 314 8,279 412 2,220
Percentage of waste recovered for recycling
Percentage of waste recovered
% 92 97 94 97 93 98
for recycling
1) Hazardous waste: Based on monitoring standards of individual countries where our business sites are located
* T = Tonnes
20211), 2) 2022 2023 2021 2022 2023
Water Management DX Division DS Division DX Division DS Division DX Division DS Division Pollutant Management1) DX Division DS Division DX Division DS Division DX Division DS Division
Water intake Air pollutant emissions

Water intake 1,000t4) 19,391 144,269 18,823 153,988 17,270 160,090 Total pollutant emissions
Municipal water NOx Tonnes 32 685 33 752 46 674
1,000t4) 18,833 144,269 18,124 153,988 16,485 160,090
(surface water)
SOx Tonnes - 19 1 34 2 41
Groundwater 1,000t4) 558 - 698 - 786 -
NH₃ Tonnes 3 65 2 93 0.5 125
Wastewater discharge
HF Tonnes - 22 - 19 0.03 16
Wastewater discharge 1,000t4) 13,576 117,379 12,682 123,436 13,042 129,953 2)
PM Tonnes 94 69 143 64 72 69
Water reused
Volatile organic compound emissions
Water reused 1,000t4) 3,972 89,977 3,483 113,108 3,470 119,421
Volatile organic compound emissions Tonnes 314 - 10 384 7 391
Ultra-pure water reused
Water pollutant discharge
Supply 1,000t4) 2,131 59,855 2,219 68,770 2,098 69,389
TOC (Korea)3) Tonnes - - - - 2 292
Recovery 1,000t4) 412 22,131 - 24,731 - 22,004
COD (Global) Tonnes 244 662 286 560 433 101
Suppliers’ water consumption3)
BOD Tonnes 59 207 85 228 161 251
Suppliers’ water consumption 1,000t4) 57,002 27,735 63,236 31,578 65,783 31,699
SS Tonnes 143 250 154 257 206 725
1), 2) 2021 data updated for error correction
F Tonnes 1 519 2 574 1 625
3) Suppliers’ water consumption: based on water consumption for Samsung Electronics product manufacturing by the top 90% of suppliers in terms
of transaction scale
Heavy metals Tonnes 2 11 1 15 2 15
4) 1,000t = 1,000 tonnes
Consumption of ozone depleting
substances (CFC-11 eq)4)
2021 2022 2023
Consumption of ozone depleting
Tonnes 1 0.3 2 0.2 1 -
Workplace Environment Management DX Division DS Division DX Division DS Division DX Division DS Division substances (CFC-11 eq)
1) To mitigate air pollutant emissions, we are pushing ahead with the introduction of a NOx reduction system, implementation of a catalytic oxidation
KRW process, and installation of electric dust collection facilities. In accordance with the Montreal Protocol, all of our business sites are gradually
Investment in EHS 2,170 11,827 1,248 20,588 1,117 19,167 replacing the refrigerants for freezers and air conditioners with alternatives with less ozone depletion potential (ODP). We are also working to
100 million remove water pollutants through our optimized wastewater treatment facilities prior to wastewater discharge.
Violations of 2) Previous dust emissions disclosure standards changed
3) Apply data separately into TOC (Korea) and COD (Global) starting from 2023
environment-related Cases - - 2 - 11) -
laws and regulations
1) On 23 August 2023, the Gwangju City Hall issued an administrative action (warning notice) to and imposed a fine of KRW 2 million on Samsung 2021 2022 2023
Electronics for violating Article 31 (Operation of Emission Facilities and Prevention Facilities), Paragraph 2 of the Clean Air Conservation Act.
1)
Samsung Electronics has paid the fine and is striving to comply with relevant laws and regulations by strengthening the computerized input Chemical Substance Management DX Division DS Division DX Division DS Division DX Division DS Division
management process for the operation of emission facilities and prevention facilities.
Chemical substance use2) 1,000t 3) 6 514 6 572 6 512
For the status of sanctions related to environmental regulation violations by the company, please refer to the Business (Semi-Annual) Report.
※ On 18 June 2021, the Texas Commission on Environmental Quality (TCEQ) issued a Notice of Corrective Action regarding a failure to report on Discharge of major hazardous
Cases - - - - - -
wafer shredding equipment at the Samsung Austin Semiconductor LLC. (SAS) subsidiary of Samsung Electronics' DS Division. On 10 June 2022, substances
the TCEQ issued a Notice of Corrective Action regarding the wastewater spill at SAS. TCEQ issued a fine of 93K USD to SAS on 8 March 2024,
taking into account that SAS independently obtained environmental certification and performed internal management actions for the wafer 1) Scope of data collection: Korea
shredding equipment while actively carrying out remediation activities to address the wastewater spillage as soon as SAS became aware of the 2) Chemicals consumption: Based on the European Pollutant Release and Transfer Register (E-PRTR) from 2018
incident. SAS developed and deployed preventive measures (pre-evaluation systems, development of monitoring, control systems). 3) 1,000t = 1,000 tonnes
Appendix
70 Independent Assurance Report

71 Verification Statement on Scope 1, 2 Greenhouse Gas Emission
72 Verification Statement on Scope 3 Greenhouse Gas Emission
74 GRI Index
77 TCFD Index
79 SASB Index
81 Collaboration Efforts on Climate Action
82 About This Report
Independent Assurance Report
Verification Statement on Scope 1, 2 Greenhouse Gas Emission
Verification Statement on Scope 3 Greenhouse Gas Emission
Verification Statement on Scope 3 Greenhouse Gas Emission
GRI Index
GRI Standards No. Disclosures Status Page Notes GRI Standards No. Disclosures Status Page Notes
GRI 2 Universal Standards Strategy, 16, 23,

The organization 2-1 Organizational details 5 Policies, and 32,
●
Published on the
and its reporting Practices 2-24 Embedding policy commitments ● 34-35,
Entities included in the organization’s sustainability Sustainability Website
practices 2-2 ● 82 37, 39,
reporting 42, 49
2-3 Reporting period, frequency and contact point ● 82 2-25 Processes to remediate negative impacts ● 33, 40
2-26 Mechanisms for seeking advice and raising concerns ● 53-54
Disclose the changes to the
2-4 Restatements of information ● - Refer to the Annual Business
report 2-27 Compliance with laws and regulations ● 57, 68
Report 460~468p
2-5 External assurance ● 70 2-28 Membership associations ● 6, 81

Activities and Stakeholder 2-29 Approach to stakeholder engagement ● 6
workers 5-6, 8 Refer to the Annual Business Engagement
2-6 Activities, value chain and other business relationships ● 2-30 Collective bargaining agreements ● 33, 35
39-44 Report
GRI 3: Universal Standards
Disclosures on 3-1 Processes to determine material topics ● 8-10
2-7 Employees ● 58-59
Material Topics 3-2 List of material topics ● 9
2-8 Workers who are not employees ● 58 3-3 Management of material topics ● 10
Governance 2-9 Governance structure and composition ● - GRI 200: Economy
Nomination and selection of the highest governance Economic 201-1 Direct economic value generated and distributed ● 56
2-10 ● - Performance
body Financial implications and other risks and
201-2 ● 77
2-11 Chair of the highest governance body ● - opportunities due to climate change
Role of the highest governance body in overseeing the Define benefit plan obligations and other retirement Refer to the Annual Business
2-12 ● - 201-3 ● -
management of impacts Refer to the IR website plans Report 92, 97p
2-13 Delegation of responsibility for managing impacts ● - Market Presence Ratios of standard entry level wage by gender
202-1 ● 35, 37
Role of the highest governance body in sustainability compared to local minimum wage
2-14 ● -
reporting Indirect
203-1 Infrastructure investments and services supported ● 45-47
Economic
2-15 Conflicts of interest ● 53-54
Impacts
2-16 Communication of critical concerns ● 8-10 203-2 Significant indirect economic impacts ● 45-47
Refer to the Corporate Anti-corruption 205-1 Operations assessed for risks related to corruption ● 53-54
2-17 Collective knowledge of the highest governance body ● -
Governance Report 56p
Communication and training about anti-corruption
Evaluation of the performance of the highest 205-2 ● 53-54
2-18 ● - policies and procedures
governance body
Refer to the Corporate Refer to the Annual Business
205-3 Confirmed incidents of corruption and actions taken ● -
2-19 Remuneration policies ● - Governance Report Report 460~468p
57~59p, 78p Anti-
2-20 Process to determine remuneration - competitive Legal actions for anti-competitive behavior, anti-trust, Refer to the Annual Business
●
206-1 ● -
Behavior and monopoly practices Report 460~468p
We made the decision to Tax Refer to the Sustainability

keep this information private 207-2 Tax governance, control, and risk management ● -
2-21 Annual total compensation ratio ○ - Website
based on the necessities of
our company. Stakeholder engagement and management of Refer to the Sustainability
207-3 ● -
concerns related to tax Website
Strategy, 2-22 Statement on sustainable development strategy ● 4
Policies, and 207-4 Country-by-country reporting ● 56
Practices 2-23 Policy commitments ● 53-54
GRI Index
GRI 300: Environment Biodiversity Operational sites owned, leased, managed in, or
Materials We made the decision 304-1 adjacent to, protected areas and areas of high ● 25
to keep this information biodiversity value outside protected areas
301-1 Materials used by weight or volume ○ - private based on the
necessities of our Significant impacts of activities, products, and
304-2 ● 25
company. services on biodiversity
304-3 Habitats protected or restored ● 25
301-2 Recycled input materials used ● 63, 67 IUCN Red List species and national conservation list
304-4 ● 25
species with habitats in areas affected by operations
Energy 302-1 Energy consumption within the organization ● 62, 66 Emissions 305-1 Direct (Scope 1) GHG emissions ● 62, 66
We made the decision 305-2 Energy indirect (Scope 2) GHG emissions ● 62, 66
to keep this information
302-2 Energy consumption outside of the organization ○ - private based on the 305-3 Other indirect (Scope 3) GHG emissions ● 62, 66
necessities of our
company. 305-4 GHG emissions intensity ● 62
302-3 Energy intensity ● 62 13-14,
305-5 Reduction of GHG emissions ●
13-14, 20-22
302-4 Reduction of energy consumption ●
20-22
305-6 Emissions of ozone-depleting substances (ODS) ● 64, 68
Reductions in energy requirements of products and 14, 22,
302-5 ●
services 63, 67 Nitrogen oxides (NOx), sulfur oxides (SOx), and other
305-7 ● 64, 68
significant air emissions
Water and 17-18, Waste
Effluents 23-25, 15-16,
303-1 Interactions with water as a shared resource Waste generation and significant waste-related
●
64-65, 306-1 ● 26-27,
impacts
68 63-64
17-18, 15-16,
23-25, 306-2 Management of significant waste-related impacts 26-27,
303-2 Management of water discharge-related impacts ● ●
64-65, 63, 67
68
23-25, 15-16,
303-3 Water withdrawal ● 64-65, 306-3 Waste generated ● 26-27,
68 63, 67
17-18, 15-16,
23-25, 306-4 Waste diverted from disposal ● 26-27,
303-4 Water discharge ●
64-65, 63, 67
68
17-18, 15-16,
23-25, 306-5 Waste directed to disposal ● 26-27,
303-5 Water consumption ●
63, 67
64-65,
68 Supplier New suppliers that were screened using 41-42,
Environmental 308-1 environmental criteria
●
60
Assessment
Negative environmental impacts in the supply chain
308-2 ● 41-42
and actions
GRI Index
GRI 400: Society Forced or

Employment Compulsory Operations and suppliers at significant risk for incidents
409-1 ● 43, 61
401-1 New employee hires and employee turnover ● 58 Labor of forced or compulsory labor
Benefits provided to full-time employees that are not Security Security personnel trained in human rights policies or No applicable cases
401-2 ● 36 Practices 411-1 ● -
provided to temporary or part-term employees procedures occurred
401-3 Parental leave ● 59 Local
Occupational Communities Operations with local community engagement, impact 18,24,
403-1 Occupational health and safety management system ● 36 413-1 ●
Health and assessments, and development programs 45-47

Hazard identification, risk assessment, and incident
Safety 403-2 ● 36
investigation Supplier Social 414-1 New suppliers that were screed using social criteria ● 41, 60
403-3 Occupational health services 36 Assessment
●
Negative social impacts in the supply chain and actions
414-2 ● 41-43
Worker participation, consultation, and communication taken
403-4 ● 6, 36
on occupational health and safety Public Policy
Use of company funds for
403-5 Worker training on occupational health and safety ● 36 political contributions
415-1 Political contributions ● - is prohibited by the
403-6 Promotion of worker health ● 36 corporate Code of
Conduct
Prevention and mitigation of occupational health and
403-7 ● 36 Customer Health Refer to the Annual
safety impacts directly linked by business relationships Incidents of non-compliance concerning the health and
and Safety 416-2 ● - Business Report
safety impacts of products and services
Workers covered by an occupational health and safety 460~468p
403-8 ● 36
management system Marketing and Requirements for product and service information and
Labeling 417-1 ● - Refer to company Website
403-9 Work-related injuries ● 59 labeling
Training and 404-1 Average hours of training per year per employee ● 60 Refer to the Annual
Incidents of non-compliance concerning marketing
Education 417-3 ● - Business Report
Programs for upgrading employee skills and transition communications
404-2 ● 38 460~468p
assistance programs
Percentage of employees receiving regular performance
404-3 ● 38
and career development reviews
Diversity Refer to the Corporate
405-1 Diversity of governance bodies and employees ● 58
and Equal Governance Report 26-27p
Opportunity
405-2 Ratio of basic salary and remuneration of women to men ● 37
Non-
discrimination 406-1 Incidents of discrimination and corrective actions taken ● 37, 40
Freedom of
Association
Operations and suppliers in which the right to freedom
and Collective 407-1 ● 42, 61
of association and collective bargaining may be at risk
Bargaining
· Statement of Use: Samsung Electronics has reported in accordance with the GRI standards for the covered period (from
Child Labor January 1st to December 31st, 2023).
Operations and suppliers at significant risk for incidents
408-1 ● 43, 61
of child · GRI 1 used: GRI 1: Foundation 2021
TCFD Index
Category Our Performance Page
Governance a) Describe the board's oversight We believe all environmental issues, including climate change, directly affect our business operations and financial performance. As such, these issues are super- P.12, P.19, P.77
of climate-related risks and vised by the Board of Directors, our overarching decision-making body. The Board of Directors approves all strategies and goals related to environmental manage- CDP: C1
opportunities. ment, 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.
b) D
escribe management's role The CEO establishes environmental management plans and reviews implementation progress through the Sustainability Council composed of the top executives P.12, P.19, P.77
in assessing and managing of relevant units. We continue to reinforce our environmental management capacity by strengthening environmental indicators in the performance evaluations of CDP: C1
climate-related risks and our business units. In addition, the Environmental Management Task Force defines action items/projects - including those related to climate action - and monitors
opportunities. 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.
Strategy a) Describe the climate-related 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 P.13, P.20, P.77
risks and opportunities the business activities. Samsung Electronics monitors the risks arising from its global operations in accordance with risk management processes and manuals in each CDP: C2
organization has identified over field, including environmental safety, climate change and energy, and compliance. To understand the financial impact of risks and opportunities arising from cli-
the short, medium, and long mate change, Samsung Electronics categorizes risk factors into transition risks and physical risks and analyzes the risks; while and opportunities arising from them.
term. In the short term, we see rising carbon credit prices, extreme weather events, and the introduction of high-efficiency technologies as potential risks, securing car-
bon credits and reducing energy costs are recognized as opportunities. In the medium term, we anticipate changing consumption patterns and expansion of renew-
able 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.
Climate Change Risks and Opportunities Financial Impacts of Climate Change Risks Financial Impacts of Climate Change Opportunities
❶ GHG emissions trading scheme · Emission allowance prices falling due to the post-pandemic economic slowdown · Minimize purchases with greenhouse gas reduction activities
Short-
* Refer to Annual Business Report · Mitigate carbon price sensitivity by securing external carbon
Term
Transition Risk and Opportunity
** Dropped to KRW 7,200 on the same day (August 28th, 2023) credits
❷ High-efficiency technology Short- · Increased investment in high-efficiency facilities, greenhouse gas reduction · Reduce workplace GHG emissions and reduce energy costs
development Term facilities, and water recycling facilities · Create business opportunities such as energy management
· E xpand R&D investments to secure new carbon reduction technologies systems
❸ Customer consumption pattern Mid-

· High-efficiency and environmental product certification costs increased · Increase sales of launching high-efficiency, environmentally
· Sales of low-energy efficiency products decreased responsible products
changes Term
· R&D investment in high-efficiency and environmentally responsible products increased · Consumers’ awareness raised
❹ Expansion of renewable Mid- · Production costs increased due to a short-term electricity price spike · Electricity expenses reduced through renewable energy sup-
energy consumption Term · Customers’ demand for renewable energy ply contracts and participation in power generation projects
❺ Natural disasters · Investment in environmental/safety/disaster prevention equipment increased · Reducing insurance premiums by investing in facilities to
Short-
respond to natural disasters
Physical Risk
(e.g., storms, floods) · Costs related to restoration and business opportunity loss in the event of natural
Opportunity
Term
disasters increased · Creating new business opportunities such as national disaster
and
networks and safety communication networks

❻ Temperature rise and yellow sand Long- · Increased costs of operational costs such as cooling and heating facilities · Business expanded and sales increased (e.g., high-efficiency
dust pollution Term · Increased investment in air-pollution prevention facilities air conditioners, air purifiers, dryers)
TCFD Index
Category Our Performance Page
Strategy b) D
escribe the impact of climate-related risks As climate change continues to have adverse effects around the world, many countries are strengthening their relevant regulations. The costs related to natural disaster P.13, P.20, P.77
and opportunities on the organization’s busi- 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 CDP: C3.3, C3.4
nesses, strategy, and financial planning. 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.
c) Describe the resilience of the organization’s 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 P.13, P.20, P.77
strategy, taking into consideration different our business through various scenarios, which are classified into aggressive action scenarios that require our global stakeholders to reach more ambitious targets and CDP: C3.2a, C3.2b
climate-related scenarios, including a 2°C or passive action scenarios that focus on maintaining the status quo.
lower scenario. 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.
Risk a) Describe the organization’s processes for Our climate risks concerning business operations, product planning, and industry trends are assessed regularly by related organizational units - including EHS, marketing, P.13, P.20
Management identifying and assessing climate-related 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 - CDP: C2.1b, C2.2
risks. 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 organiza-
tional 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.
b) D
escribe the organization’s processes for 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 P.13, P.20
managing climate-related risks. 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 consul- CDP: 2.2, 2.2a
tative 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-induced business opportunities and shares the findings with pertinent organizational units for execution.
c) Describe how processes for identifying, Given the large amount of energy required in manufacturing semiconductors, the prices of emissions permit and renewable energy use are considered factors that directly P.13, P.20, P.77
assessing, and managing climate-related risks affect our business and are thus closely monitored. In addition, climate change-related regulations of individual countries are included in our company-wide risk manage- CDP: 2.2
are integrated into the organization’s overall ment system since they are likely to influence our business activities and reputation.
risk management.
Metrics and a) Disclose the metrics used by the organization To assess and manage the risks and opportunities related to climate change, we closely monitor metrics including GHG emissions, per-unit GHG emissions, energy con- P.12, P.19, P.62-68,
Targets to assess climate related risks and opportuni- sumption, 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 col- P.82
ties in line with its strategy and risk manage- lected, and average power consumption of products. CDP: C6, C7, C8
ment process.
b) D
isclose Scope 1 (direct emissions), Scope 2 We disclose our Scope 1, 2, 3 emissions via the Sustainability Report and CDP Report. P.62, P.66
(indirect emissions), and Scope 3 (miscella- CDP: C6, C7, C8
neous indirect scope) greenhouse gas (GHG)
emissions, and the related risks.
c) Describe the targets used by the organization Please refer to the targets of the New Environmental Strategy and relevant progress specified in the 2023 Sustainability Report. P.12, P.19
to manage climate-related risks and opportu- CDP: C4
nities and performance against targets.
SASB Index
Hardware
Sustainability Disclosure Topics and Accounting Metrics
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.48~49
Employee Diversity & Percentage of gender and racial/ethnic group representation for (1) management, (2) technical staff,
TC-HW-330a.1 P.59
Inclusion and (3) all other employees
We comply with global regulations (EU RoHS, REACH, TSCA, etc.) and manage internal rules in line with
Product Lifecyle Korean and international standards. We conduct rigorous pre-inspection and follow-up management of
Management TC-HW-410a.1 Percentage of products by revenue that contain IEC 62474 declarable substances all parts and raw materials used in our products. Please refer to p.19, p.29-30 herein and the Standards
for the Control of Substances Used in Products in the Sustainability Website for our efforts to manage
potentially hazardous substances.
· Computers: 63.1%
TC-HW-410a.2 Percentage of eligible products that meet the EPEAT registration criteria or equivalent1) · Mobile phones: 95.7%
· Displays: 24.9%
· Audio devices: 60.7%
TC-HW-410a.3 Percentage of eligible products that meet the ENERGY STAR® criteria1)
· Computers: 100%
TC-HW-410a.4 Weight of end-of-life products and e-waste recovered, percentage recycled P.16, P.63, P.67
Percentage of Tier 1 supplier facilities audited in the RBA Validated Audit Process (VAP) or equivalent,
Supply Chain Management TC-HW-430a.1 P.41~42, P.61
by (a) all facilities and (b) high-risk facilities
Tier 1 suppliers’ (1) non-compliance rate with the RBA Validated Audit Process (VAP) or equivalent and
TC-HW-430a.2 P.41~42, P.61
(2) associated corrective action rate for (a) priority non-conformances and (b) other non-conformances
Materials Sourcing TC-HW-440a.1 Description of risk management associated with the use of critical materials P.60, Samsung Electronics Responsible Minerals Report
1) 2023 data based on sales in North America (U.S. and Canada)
Activity Metrics
Code Topic Page and Comment

TC-HW-000.A Number of units produced by product category P.27-34, 2023 Annual Business Report (II. Business Overview)
TC-HW-000.B Area of manufacturing facilities 2023 Annual Business Report (II. Business Overview)
TC-HW-000.C Percentage of production from owned facilities P.27-34, 2023 Annual Business Report (II. Business Overview)
SASB Index
Semiconductors
Sustainability Disclosure Topics and Accounting Metrics
Code Accounting Metric Page and Comment

TC-SC-110a.1 (1) Gross global Scope 1 emissions and (2) amount of total emissions from perfluorinated compounds P.62, P.66
Greenhouse Gas Emissions Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions
TC-SC-110a.2 P.12, P.19, P.62, P.66
reduction targets, and an analysis of performance against those targets
Energy Management in (1) Total energy consumption, (2) percentage of electricity delivered from grids, and (3) percentage
TC-SC-130a.1 P.62, P.66
Manufacturing renewable
(1) Total water withdrawn, (2) total water consumed, percentage of each in regions with High or
Water Management TC-SC-140a.1 P.64~65
Extremely High Baseline Water Stress
Waste Management TC-SC-150a.1 Amount of hazardous waste from manufacturing, percentage recycled P.63, P.67
TC-SC-320a.1 Description of efforts to assess, monitor, and reduce exposure of employees to human health hazards P.36
Employee Health and Safety Total amount of monetary losses as a result of legal proceedings associated with employee health and
TC-SC-320a.2 2023 Annual Business Report (XI. Other Information) P.460~468
safety violations
Recruiting & Managing a
Global & Skilled TC-SC-330a.1 Percentage of employees that are (1) foreign nationals and (2) located offshore P.58~59
Workforce
We comply with global regulations (EU RoHS, REACH, TSCA, etc.) and manage internal rules in line with
Korean and international standards. We conduct rigorous pre-inspection and follow-up management of
Product Lifecycle TC-SC-410a.1 Percentage of products by revenue that contain IEC 62474 declarable substances all parts and raw materials used in our products. Please refer to p.19, p.29-30 herein and the Standards
Management for the Control of Substances Used in Products in the Sustainability Website 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-SC-440a.1 Description of risk management associated with the use of critical materials P.60, Samsung Electronics Responsible Minerals Report
Intellectual Property Total amount of monetary losses as a result of legal proceedings associated with anti-competitive
TC-SC-520a.1 P.462-463, 2023 Annual Business Report (XI. Other Information)
Protection & Competitive avior behavior regulations
Activity Metrics
Code Topic Page and Comment

TC-SC-000.A Total production P.27-34, 2023 Annual Business Report (II. Business Overview)
TC-SC-000.B Percentage of production from owned facilities P.27-34, 2023 Annual Business Report (II. Business Overview)
Collaboration Efforts on Climate Action
Initiative Carbon-Free Alliance (CFA) Partnership

Samsung Electronics is a member of the Carbon-Free Alliance, serving
Samsung Electronics seeks to contribute to climate change responses Samsung Electronics is actively participating in government conferences
on its Board of Directors and engaging in various working groups. This
through cooperation with various stakeholders by working with led by institutes including the National Assembly of Korea, Ministry of
public-private partnership has a mission to expand global Carbon-Free
initiatives world-wide, carrying out industry-wide collaborations and Trade, Industry, and Energy, and the Korea Energy Corporation to expand
Energy (CFE). Through the CFA, Samsung Electronics seeks to participate
external communications. the Korean renewable energy base. We also cooperate with various
in facilitating diverse CFE solutions and cooperates with various
developers and researchers to improve energy efficiency, expand PPAs,
innovative companies working on CFE technologies.
RE100 Initiative develop energy mix technologies, and implement a comprehensive
Samsung Electronics joined RE100, a global initiative that promotes solution for renewable energies. The DX Division has signed a renewable
Semiconductor Climate Consortium (SCC)
renewable energy transition, and strives to expand renewable energy energy supply contract with Gyeonggi-do, the Korean Midlands Power
Samsung Electronics serves on the Governing Council and in working
use. As a member of RE100’s Advisory Committee, we join discussions on Company, and Enel X Korea, and an MOU with the Korean Institute
groups of the SCC Initiative to establish industry-specific Scope 1, 2,
items such as the Initiative’s strategy and policy recommendations. of Energy Research to develop integrated solutions for renewable
3 calculation methodologies and decarbonization roadmaps, among
energy. The DS Division signed an MOU with the Korea District Heating
other action items. We are also making efforts to help renewable energy
Asia Clean Energy Coalition (ACEC) Corporation to utilize semiconductor industrial waste heat, increase
expansion in 5 countries of the Asia Pacific region through the Energy
Samsung Electronics joined ACEC, jointly established during UNFCCC energy efficiency between the semiconductor and energy industries, and
Collaborative (EC), led by SCC.
Conference of the Parties 27 (COP27) in 2022 by RE100 host organization reduce GHG emissions.
the Climate Group, global environmental think tank World Resources Sustainable Semiconductor Technologies and Systems We are also regularly corresponding with Samsung member companies
Institute (WRI), and others. Samsung Electronics is participating in (SSTS) such as SCD, SDI, Samsung Electro-Mechanics, and Samsung Biologics
ACEC’s Steering Committee and is pursuing renewable energy supply Samsung Electronics is participating in the SSTS program run by about environment-relevant activities through venues like the
expansion in the Asian region. As a collective initiative between global the Interuniversity Microelectronics Centre (IMEC), Europe’s largest Environment and Safety Innovation Day on issues regarding net zero,
corporations, renewable energy developers, and investors, ACEC seeks integrated semiconductor research institute. The SSTS is a program pollution reduction, resource circularity, and water resources.
to contribute to the formation of a renewable energy ecosystem in Asian intended to derive sustainable solutions throughout the semiconductor
nations, a global manufacturing production hub. Samsung Electronics is plans to continue our cooperation in order
industry’s value chain, and IMEC uses feedback from partner companies
to further encourage climate change response activities including
to create a simulation that calculates carbon emissions and then
Decarbonizing the Use phase of Connected Devices (DUCD) expansion of the renewable energy market in Asia through external
develops technologies and systems to reduce environmental impacts.
Led by the Carbon Trust, DUCD is an initiative aimed at providing communication and initiative participation.
guidance and establishing standards for connected devices’ use-phase
carbon emission and reduction methodologies. Samsung Electronics
participates in this initiative with Amazon, Meta, Microsoft, and Sky
(Comcast).
About This Report
The 2024 Sustainability Report – the 17th 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 Related Information Forward-Looking Statement

This report aligns with the Global Reporting Initiative (GRI) · Samsung Electronics Website 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
Standards: Core Option, and reflects the indicators of the UN http://www.samsung.com/sec
forward-looking statements that reflect Samsung’s current views with respect to future events and
Sustainable Development Goals (SDGs), Task Force on Climate- · Sustainability Website performance. These statements involve risks and uncertainties.
Related Financial Disclosures (TCFD), and Sustainability http://www.samsung.com/sec/sustainability/main You can identify forward-looking statements by the fact that they do not relate strictly to current or historic
Accounting Standards Board (SASB). facts. Examples of forward-looking statements include information concerning Samsung's outlook and
· IR Website
guidance, as well as any other statement that does not directly relate to any historical or current fact. In some
http://www.samsung.com/sec/ir cases, you can identify forward-looking statements by terminology such as "may," "will," "could," "should,"
Covered Activities
· Samsung Newsroom "forecasts," "expects," "intends," "plans," “aims to”, “goals,” “trying to,” "anticipates," "projects," "outlook,"
This report covers the activities of all of our business sites "believes," "estimates," "predicts," "potential," "continue," "preliminary," “strategy,” or the negative of these
http://news.samsung.com/kr
in Korea and other regions as well as our supply chains. Our terms or other comparable terminology.
http://news.samsung.com/global
consolidated financial performance is reported in accordance Although we believe that the expectations reflected in the forward-looking statements are reasonable, we
For More Information can give you no assurance these expectations will prove to have been correct. These statements are being
with K-IFRS, and our environmental performance is reported
provided for the purpose of assisting readers in understanding our approach to key sustainability topics,
based on data collected from 31 manufacturing sites in · Samsung Electronics Corporate Sustainability Center strategies and initiatives, and in obtaining a better understanding of our anticipated operating environment.
Korea and other regions. Samsung Electronics headquarters · Address: 129 Samsung-ro, Yeongtong-gu, Suwon-si, Gyeonggi-do (16677) Readers are cautioned that such information may not be appropriate for other purposes.
is located at 129 Samsung-ro, Yeongton-gu, Suwon-si, · Email: csr.partner@samsung.com 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
Gyeonggi-do, Republic of Korea. References targets, external sustainability commitments and operational strategies. Many risks, contingencies and
· Annual Business Report uncertainties could cause actual results to differ materially from Samsung’s forward-looking statements.
Covered Period
Such factors may include, but is not limited to, the following: statements related to the expected effects on
This report illustrates our economic, social, and environmental · Corporate Governance Report our business of geopolitical events, global economic conditions, fluctuations in cost and availability of raw
performance and activities from January 1st to December 31st, · Responsible Minerals Report 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
2023. Performance as of May 2024 has been included in some
· CDP Report tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business
areas. The report provides quantitative data of the last three disruptions, the effectiveness of our internal control over financial reporting, the results of governmental
years to illustrate recent YoY trends. · Global Code of Conduct investigations, and the unpredictability of existing and possible future litigation. Unlisted factors may
· Guidelines on the Global Code of Conduct present significant additional obstacles to the realization of forward-looking statements.
Reporting Cycle This Report also includes forward-looking statements regarding our sustainability; safety and health;
cybersecurity; culture; diversity, equity, and inclusion; community engagement; and related goals,
Annual – previous edition published in Jun 2023.
commitments and strategies.
Our actual future results, including the achievement of our targets, goals or commitments, could differ
Third-Party Assurance
materially from our projected results as the result of changes in circumstances, assumptions not being
Anjin Deloitte, an independent assurance provider, conducted realized, or other risks, uncertainties and factors.
a third-party verification to ensure confidence in the report- Although Samsung believes that the forward-looking statements in this Report is based on information,
making process and information disclosed, as per the 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
ISAE3000 verification criteria.
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.

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Samsung Electronics Sustainability Report 2024

Message from Our CEO 04 Materiality Assessment 08

Planet People Principle

[DX Division] Our People 31 Compliance & Ethics 53

A Journey Towards Governance and Major Progress

Samsung Electronics Sustainability Report 2024 [DS Division]

Facts & Figures Appendix

Economic Performance 56 Independent Assurance Report 70

04 Message from Our CEO

About Our Organization

Major Business Units

Sales Operating Profit Mobile eXperience Visual Display Digital Appliances

DX Device eXperience KRW 169.9923 trillion KRW 14.3847 trillion Networks

Sales Operating Profit

DS Device Solutions KRW 66.5945 trillion KRW (-) 14.8795 trillion

Regional Headquarters1) Sales Offices2) Manufacturing Sites Procurement Centers

Stakeholders Key Interests Communication Channels Major Activities

Assessment Step 1. Understanding the Business

company activities’ impacts to the external environment and relevant

Electronics also identified areas for improvement through meetings with

Scope Geographic/physical reach of impacts Resource Circularity Information Security

Environmental Targets and Major Progress in 2023

Central and South America Our Brazilian manufacturing sites

2025 ‧ Receive Platinum certification at all manufacturing sites

Research Recycling Technologies

DX is targeting Zero Waste-to-Landfill certifications for all of our

Status of Water Restoration in DX Division

Environmental Targets and Major Progress in 2023

Waste 2025 2030

reduction activities through various projects including GHG treatment

Climate Change Risk and Opportunities

products with the same performance using fewer raw materials.

‧ Contribute to improving water quality and enhancing biodiversity

Water Risks and Response Strategies

Water Opportunities and Response Strategies

Utilize External Wastewater

Jiaohe Stream, China

1 Identify and assess risks

Achieve Zero Waste to Landfill Certification

Korea: Giheung, Hwaseong, U.S.: Austin 2021 2,227 tonnes

Our People Board of Directors (Sustainability Committee)

Oversee sustainability direction and implementation

and discussion hosted by each business manager/organizational leader.

Gather input from workers during on-site audits,

Hotline History Partner Collaboration Portal Grievance Reporting Channel

Global contracts utilized by overseas subsidiaries are written in various

provided to outstanding suppliers. Through the Supplier ESG Reward

and human rights and the environment.

Monitoring Progress on Improvement

2020 ‧ Begin migrant forced labor special audits

2021 ‧ Begin responsible recruitment procedure training

2023 ‧ Resume special audit of forced labor: 3 countries, 21 suppliers

Samsung Innovation Campus Operational Performance in 2023

Operational Performance in 2023 Operational Performance in 2023

Domestically (Korean) International (India) Independent living Independent living training/support

Safety & Quality

and workforce training. · Guide to adding in-store services features:

53 Compliance & Ethics

We also evaluate whether the Company's compliance controls have

‧ Contribute to improving water quality and enhancing biodiversity

2023 ‧ Resume special audit of forced labor: 3 countries, 21 suppliers

and workforce training. · Guide to adding in-store services features:

❸ Customer consumption pattern Mid-