CDMO Samsung Biologics Charts a Course to Net-Zero Emissions With New ESG Report

The contract development and manufacturing organization industry has grown exponentially in recent years to accommodate increasing demand for biopharmaceuticals, ranging from treatments for arthritis to mRNA vaccines. As the industry grows, the leading companies are paying attention to the environmental impact of biopharmaceutical manufacturing, including development, manufacturing, and transport of materials.

Samsung Biologics, one of the leading CDMOs, has just released its third environmental, social, and governance report to address this and other issues, and it has outlined a course of action to lead to net-zero emissions across its biomanufacturing supply chain.

“Samsung Biologics is fully committed to engaging in sustainable business practices for the positive impact it has on our clients, society, and the wider community,” said John Rim, president and CEO of Samsung Biologics. “We will continue to leverage our expertise and experience to accelerate the delivery of net-zero health care and engage with our suppliers and partners to amplify our collective efforts.”

In addition to discussing its approach to environmental stewardship, the report highlights Samsung Biologics’ approach to engaging in socially responsible business practices and giving back to the community, as well as its emphasis on transparent corporate governance.

What’s in the Report

According to the report, Samsung Biologics aims to slash 32% of its direct emissions by 2030, escalating to a 62% reduction by 2040. Additionally, the targets include a decrease of 36% of suppliers’ emissions by 2030, further expanding to 73% by 2040.

The CDMO has also committed to running its operations on 100% renewable power, as it joined the RE100 initiative. This decision has already begun to positively impact the company’s carbon footprint, reflecting an alignment with global climate goals.

These efforts are part of a broader vision that Samsung Biologics has for a greener future, looking ahead to a net-zero target by 2050 or earlier. The goal is to integrate sustainable practices successfully into the business model without compromising efficacy or profit margins.

“ESG is no longer just a strategy or initiative but the competitiveness of the company itself,” said Samsung Biologics CFO Dong Joong Kim in the report. “Accordingly, we aim to carry out the ESG strategies that we have established to sharpen our competitive edge.”

Initiatives for CDMO Sustainability

Samsung Biologics has been recognized for its leadership in sustainability. The report notes that it recently became the first CDMO to receive the Terra Carta Seal from the Sustainable Markets Initiative. This honor signifies alignment with the Terra Carta, which is described as an international recovery plan for nature, people, and the planet.

Furthermore, the company has taken on a leadership role in the SMI’s Health Systems Task Force. It’s actively engaging in the Supply Chains Working Group initiative as the lone CDMO representative. This group is tasked with exploring new carbon reduction strategies within various supply chains, including that of the pharmaceuticals industry.

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Samsung Biologics has also joined the United Nations Global Compact. This initiative asks its members to adhere to 10 principles that encompass responsibilities related to human rights, labor standards, the environment, and anti-corruption.

Risk Management and Transparency

Transparent governance is key to Samsung Biologics’ sustainable approach. By implementing an enterprisewide risk management system, the company seeks to solidify its efforts to maintain sustainability across all operational aspects.

The establishment of an ESG committee tasked with overseeing governance, reporting, and ESG-related policies emphasizes their commitment to transparent operation. The report notes that the CDMO’s recent acquisition of the ISO37001 (Anti-Bribery Management Systems) certification further exemplifies a rigorous approach to ethics and transparency.

“In order to strengthen our sustainable operations, we strive to refine our metrics and frameworks used to measure our performance and have also implemented an enterprise-wide risk management system,” said Rim. “Our ESG committee works closely with management to determine how we deliver on our responsibility to shareholders, including actively responding to changes in the internal and external business environments.”

Engaging the Supply Chain

Samsung Biologics is actively engaging with suppliers by conducting comprehensive ESG assessments to minimize risks, formulate green strategies, and facilitate carbon neutrality. This collaboration is a crucial component of building a sustainable network that supports the broader objectives of the company and of the pharmaceutical industry as a whole.

By taking steps to reduce emissions and implement sustainable practices across its network, Samsung Biologics aims to foster a collaborative approach that extends well beyond its immediate operations.

“Alongside our work to eliminate carbon emissions from our own operations, we believe that the primary way to effectively tackle global climate challenges is by engaging with our suppliers and partners to amplify our collective impact and find solutions to decarbonize at all levels,” s