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(Làm File Brochure Giống Này) Interactive - 2022 Samsung Engineering Sustainability Report (Eng)
(Làm File Brochure Giống Này) Interactive - 2022 Samsung Engineering Sustainability Report (Eng)
02
Report Period
Environmental
The report primarily covers activities that took place between January and December 2022, including certain
significant issues from the period before 2022 and early 2023. In some instances, three-year data from 2020
to 2022 has been included to illustrate trends over time. Social
Report Scope
This report encompasses all our business locations in Korea and abroad, including project sites and Governance
subsidiaries. When reporting data with varying scopes, such as including suppliers, it is clearly indicated.
* The report scope for the three-year data is provided on p.64.
Appendix
Report Verification
To ensure objectivity and enhance the credibility of the report’s contents, a third-party verification has been
conducted by an independent external verification agency. The results of this verification are provided on
p.81.
Additional Information
To enhance information accessibility for stakeholders, this repor t is publicly available on Samsung
Engineering’s website (http://www.samsungengineering.co.kr/).
INTERACTIVE GUIDE
The report was published as an interactive PDF with features such as navigation to relevant pages within the
report and links to related webpages.
HOW TO USE
Contents
2022 Samsung Engineering
04 CEO Message Environmental Sustainability Report
24 Environmental Management
26 Environmental R&D
28 Climate Change Response_TCFD Report
CEO Message
43 Social Contribution
Environmental
Social
Sustainability Strategy Governance
12 Differentiated Execution Model 46 Corporate Governance Governance
13 Addressing Societal Challenges with Technology 50 GSOR : Companywide Operational Baseline Principles
14 ESG Management Framework 52 Risk Management Appendix
55 Ethics and Compliance
58 Information Security
CEO Message
2022 Samsung Engineering
Sustainability Report
As the world order undergoes great changes with the development of AI technology and the adoption of green CEO Message
energy, the global economy continues to face uncertainties such as economic downturns, exchange rate and
oil price fluctuations, and the restructuring of global supply chains. Amid this dynamic business landscape,
Overview
Samsung Engineering has been actively preparing for the future by accelerating innovation in our business
execution, investing in strategic technology and partnerships, specifically designed to address societal
challenges, while proactively sustaining a consistent trajectory of growth. In addition, we established the ESG Sustainability Strategy
Committee within the Board of Directors in March 2022 to enhance our ESG management efforts. Moreover,
we have worked diligently to align our work processes with global standards by obtaining international Sustainability Performance
certifications.
The 'Global Risk Report 2023' released by the World Economic Forum (WEF) ranked 'failure of climate change
Environmental
adaptation' as the number one threat the world faces over the next decade. In response, Samsung Engineering
has established a roadmap to transition to 100% renewable energy by 2030 and achieve Net Zero by 2050. We Social
are actively participating in efforts to overcome the global climate crisis through step-by-step implementation.
Viewing energy transition as the duty of our era, we are determined to advance our technological prowess
Governance
in green solutions such as hydrogen, ammonia, and carbon capture, utilization, and storage (CCUS) and
will actively drive project development in these areas. In the field of environmental infrastructure, we are
dedicated to increasing investments in water treatment technologies and further enhancing our expertise in Appendix
the operation of water treatment plants to establish a solid foundation for sustained growth.
Safety management is our business management's first principle and is a crucial indicator of a company’s
competence and stature. That is why we are devoted to preventing safety incidents through the continuous
enhancement of operational safety procedures and the integration of smart safety management systems.
As a company, we foster an inclusive corporate culture that celebrates diversity and equality, regardless of
nationality and gender. Our goal is to grow alongside our diverse stakeholders by providing strategic support
to our partners and go beyond by taking the initiative to address global challenges that affect our humanity,
aligning with the 2030 United Nations Sustainable Development Goals (UN SDGs). We will contribute to the
industrial development of emerging countries through the construction of social infrastructure and improve
the quality of life of local residents by hiring local workers and giving back to the local community.
Drawing strength from our 50-year legacy of embracing challenges, we are ready to
embark on a new journey toward becoming a centennial company. Drawing strength from our 50-year legacy of embracing challenges, we are ready to embark on a new journey
With the aim of creating a better world through our advanced technology, toward becoming a centennial company. To this end, we are streamlining our execution capabilities with our
Samsung Engineering will take on the challenges of our time and deliver new values to unique execution model in our conventional EPC business while securing technologies that do not yet exist in
the world to capitalize on early opportunities in the energy transition. With the aim of creating a better world
humanity. We are committed to “Enabling a Sustainable Future Ahead.”
through our advanced technology, Samsung Engineering utilizes its problem-solving competence and cutting-
edge technology to boldly take on the challenges of our time and deliver new values to humanity. We are
CEO & President committed to “Enabling a Sustainable Future Ahead.”
Hong Namkoong We sincerely appreciate your ongoing interest and unwavering support. Thank you.
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
05
CEO Message
Overview
Sustainability Strategy
Sustainability Performance
Environmental
Social
Governance
Appendix
Overview
06 Samsung Engineering at a glance
08 Global Network
09 Financial Performance
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
06
Samsung Philosophy
Social
Human resources, technology, and contribution to humanity are the very reasons for Samsung’s existence and Slogan
the ultimate objectives we pursue. Samsung Engineering will devote its human resources and technology to Leveraging Our Core to Deliver Exceptional Value to Clients and Beyond
create superior products and services, thereby contributing to a better global society.
Governance
Appendix
SECL Professionalism Values Practices
People
le
sib W
on a n e co • Think outside the box to innovate
sp d
05 01
r e ze n e t mp l • Build expertise through continuous learning and
hi
y
ll citi c a y wi We create new value Creativity
cia l s th experience
s o r a te ta
e a r po n d la w • Take on challenges without fear of failure
r
a co ar s
e ds
W
Core Values Co-Prosperity We will devote our human Excellence
resources and technology • Achieve results together through teamwork
to create superior • Promote open communication and constructive
We collaborate with
na l l e a n
ur e
open-mindedness
h ea
aniz tain a
04 02 partnership
for
atio
main
t he
fe t y
We
Samsung Business Principles • P rioritize safety as the No. 1 principle of management
or g
We respect clients,
• Uphold excellence in quality for ourselves and the
shareholders and We are committed and
Commitment company
employees trustworthy professionals
• Fulfill our role and responsibility with a sense of
Samsung Values 03 ownership
Integrity Change
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
07
Samsung Engineering at a glance
Overview
Samsung Engineering at a glance
Global Network
Financial Performance
Global Network
2022 Samsung Engineering
Sustainability Report
To effectively navigate the rapidly evolving global business landscape, we have established a robust overseas network spanning across 15 countries,
including key regions such as the United States, Asia, and the Middle East.
CEO Message
Overview
Samsung Engineering at a glance
Global Network
Financial Performance
Environmental
15
ASIA
02 14
03
Financial Performance
2022 Samsung Engineering
Sustainability Report
In 2022, we achieved our highest annual performance in the past decade, driven by a relentless pursuit of innovation in project execution. Our financial results surpassed the business targets set at the beginning of the year, with sales reaching an impressive
10 trillion KRW, operating profit of 700 billion KRW, and new orders amounting to 10.2 trillion KRW.
CEO Message
Financial Performance 1) Key Performance 2)
Overview
Revenue by Business Divisions Revenue (Unit: Billion KRW)
Samsung Engineering at a glance
Hydrocarbon
10,054 Global Network
Non-Hydrocarbon
Number of executed projects Financial Performance
Operating Profit
1,572
Operating Profit
7,487 703 projects
Sustainability Strategy
361
Environmental
5,235
Number of countries where
projects were executed
4,820
Social
46
3,900
3,587
countries
3,359 3,390
Governance
Appendix
2020 2021 2022
New Orders
16,430
17,902
(Unit: Billion KRW) 10.2 trillion KRW
Order Backlog
3)
16,385
10,234
9,601 Order backlog at the end of 2022
7,044
17.9 trillion KRW
1) Sales, operating profit, new orders, and order backlog are presented in consolidation standards.
2) The number of executed projects and countries where projects were executed represents the cumulative figures as of the end of 2022.
3) Correct with 2021 Project backlog rounding difference adjustment. (Previous value 163,853)
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
10
CEO Message
Overview
Sustainability Strategy
Sustainability Performance
Environmental
Social
Governance
Appendix
Sustainability Strategy
12 Differentiated Execution Model
13 Addressing Societal Challenges with Technology
14 ESG Management Framework
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
11
Sustainability Strategy
2022 Samsung Engineering
Sustainability Report
Samsung Engineering aims to become an engineering company that creates a better world through its advanced technology, to respond to the dynamic business
landscape such as the restructuring of global supply chains, shift to green energy, and economic downturns. To this end, we are solidifying our execution capabilities
in existing businesses with our differentiated execution model to establish the SECL-WAY(AHEAD)1), and quickly seize opportunities in new businesses related to CEO Message
energy transition by securing technologies. In order to execute these strategies, we will create an organizational culture of respect, empathy, and communication.
Overview
Environmental
Social
SLOGAN
Leveraging Our Core to Deliver Exceptional Value to Clients and Beyond Governance
Appendix
• Fulfill the SECL-WAY(AHEAD), our unique EPC • Outline a technology roadmap to acquire
‘unchartered technology’ in energy • Achieve results with joy and passion
project execution model
transition and the environmental business • Grow and share the success together
• Complete, integrate and enhance our • Cultivate an organizational culture that
• Seize business opportunities based on core
innovative solutions prioritizes safety(S.A.Y : Safety Around You)
technologies
CEO Message
Samsung Engineering aims to stabilize and internalize innovation by perfecting, integrating, and improving its existing innovation strategies. We will maximize our innovation
competitiveness and overcome volatility and low productivity in the EPC industry. Overview
Samsung Engineering is continuously refining and advancing its innovation solutions by selecting core products to developblock modules and introduce field automation. We are also
establishing a sustainable and profitable business structure through innovation strategies customized for clients. Sustainability Strategy
Differentiated Execution Model
Addressing Societal Challenges with Technology
Post
Sustainability Performance
1) Engineering Data Platform 2) Samsung Advanced Work Package 3) Market Intelligence 4) Technology Intelligence
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
13
CEO Message
Energy Transition: Early Technology Discovering New Products for the Circular Overview
Acquisition and Project Development Economy and Expanding the Business Model Flagship Project_H2biscus
Samsung Engineering recognizes the potential of 'hydrogen' as a future Samsung Engineering has introduced a circular economy model to In January 2022, Samsung Engineering signed an MOU with Malaysia’s Sustainability Strategy
energy along with renewable energy as a solution to the societal address the societal challenges of environmental pollution. We Sarawak Economic Development Corporation Energy (SEDC Energy)
challenge of the climate crisis. To supply clean electricity by 2030, we are preparing for future business opportunities by diversifying our along with other Korean partners, Lotte Chemical and Posco. This was a Differentiated Execution Model
are developing hydrogen-related technologies and promoting flagship portfolio utilizing waste recycling technology to minimize final waste significant first step to embark on the development of Malaysia Sarawak Addressing Societal Challenges with Technology
projects in Korea and overseas. and expanding our environmental business model. H2biscus Clean Hydrogen Project. ESG Management Framework
This collaborative effort between the four companies aims to construct
Regarding hydrogen-related technologies, we are making strategic Based on the circular economy model, we are investing in waste a green hydrogen and ammonia plant in the Sarawak region, leveraging
the findings of the feasibility survey conducted in 2022. The front-end
investments to secure core electrolysis technology and are participating recycling technologies such as biogas and waste plastics, which have Sustainability Performance
in the integrated demonstration of ammonia decomposition and high growth potential, and water reuse technologies for treatment, engineering design (FEED) is set to commence in 2023.
hydrogen power generation. In order to guarantee a reliable supply of and promoting product expansion through development collaboration.
The resulting green ammonia will be imported to Korea and made Environmental
clean ammonia, we are developing the H2biscus project in Malaysia We will also utilize data accumulated from operating environmental
available to Korean companies, making substantial contributions to
and plan to proceed with basic design from 2023. Through these O&M businesses such as water treatment and incineration facilities
Korea’s net zero aspirations while propelling the advancement of the
activities, we aim to secure "technologies that do not yet exist in the to develop proposal-type businesses such as process technology
hydrogen economy. Social
world" and expand our business model through the development of advancement for environmental facilities to our customers. We are
flagship projects. seeking to improve the profitability of O&M projects by differentiating
O&M technologies.
Governance
Appendix
Blue Ammonia+
Natural Gas CO2 Blue Ammonia
Carbon Capture
Green Hydrogen
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
14
CEO Message
At Samsung Engineering, we hold a deep commitment to creating value for our shareholders and investors while upholding the common values shared by all stakeholders. Our unwavering
dedication to sustainable management drives us to fulfill our corporate social and environmental responsibilities to the fullest extent. With a steadfast focus on advancing human society Overview
and diligently serving as a responsible member of the future society, we have established a dedicated team for sustainable management, guiding us in making valuable decisions. Building
upon the pillars of “environmental,” “social,” and “governance,” considerations, we have set key directions to ensure the integration of sustainable management throughout our operations.
Sustainability Strategy
By actively monitoring global initiatives and seeking insight from external evaluations, we continuously identify areas for improvement, striving to enhance our existing practices. As a
testament to our efforts, we have consistently received recognition for our remarkable achievements year after year. Differentiated Execution Model
Addressing Societal Challenges with Technology
Governance for Sustainable Management ESG Committee Support Group ESG Management Framework ESG Management Framework
in March 2022, we established the ESG Committee, consisting solely Within our Communication Team, we have a dedicated group that
of outside directors, to report on ESG strategies, key action plans, provides support to the activities of the ESG Committee. This group plays Sustainability Performance
Board of Directors
and collaboration initiatives. Their valuable input has guided us in a pivotal role in ensuring the committee’s smooth operation, establishing
approving an environmental management plan that includes the net and implementing strategic directions for our ESG initiatives, and fostering
zero emissions goal by 2050. Through these efforts, we are dedicated the sustainable growth of our company. They also handle crucial tasks, Environmental
to ensuring the sustainable growth and development of our company. such as disclosing ESG-related information and addressing evaluations. ESG Committee
Social
ESG Group
Sustainable Solution Provider
solving social challenges with technology Governance
Appendix
Environment (E) Social (S) Governance (G)
Respect for people and the environment Reliable Partnership
Responsible Growth
Safety & Health, Human Rights, Climate change response, Shared Growth with Suppliers, Community contribution,
Board-Driven Accountability, Ethics, Compliance
resource circulation social responsibility Environmental
safety and health Corporate Governance
Management
Human Right
Response to Climate
Environment Employees and Supply Local Ethics and Corporate Management / Ethics / Compliance
Change
and Safety Workplace Chain Community Compliance Governance Development of Talents
Suppliers /
Environmental R&D Information Security
Shared Growth
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
15
CEO Message
Overview
Sustainability Strategy
Sustainability Performance
Environmental
Social
Governance
Appendix
Sustainability Performance
17 Combating Climate Change
18 Pioneering New Projects and Markets
19 Strengthening Safety and Health
20 Fostering Fair Transaction
21 Proactive Risk Management
22 Enhancing Information Security
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
16
Sustainability Performance
2022 Samsung Engineering
Sustainability Report
CEO Message
Combating Climate Change
Joining the Global Effort for Climate Change and Achieving Net Overview
Zero Emissions by 2050
Sustainability Strategy
• Pursuing 100% Renewable Energy by 2030 and Achieving Net Zero Emissions by 2050
• SHIFT LEFT and AHEAD: Shifting the EPC Industry Paradigm with Experience-Based Innovation Governance
• Addressing Societal Challenges with Environmentally-Friendly Business Solutions
Appendix
• Upholding the Zero-Accident Principle: An Autonomous, Preventive and Innovative Safety Culture
• Key to Safety Culture: Right Policies, Goals, and Investment Enhancing Information Security
• Advancing Safety and Health: Expanding Investments and Initiatives
Safeguarding Technology and Client Data
• Korea’s First ISO 31000 Certified Risk Management Capability and Framework
• Leveraging Risk Information Assets for Proactive Risk Alerts
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
17
Combating Climate Change Joining the Global Effort for Climate Change and Achieving Net Zero
2022 Samsung Engineering
Emissions by 2050
Sustainability Report
We are dedicated to joining the global fight against climate change by striving to achieve net zero emissions by 2050 and promoting resource circulation. Leveraging our
technical expertise, we aim to take a leading role in addressing complex societal challenges. CEO Message
Overview
Sustainability Strategy
Pursuing 100% Renewable Energy by 2030 and Achieving Net Zero Emissions by 2050 Sustainability Performance
Our roadmap includes achieving net zero direct and indirect carbon emissions (Scope 1 and 2) by 2050. To reduce direct carbon emissions (Scope Zero Waste to Landfill Certification Combating Climate Change
1), we plan to enhance energy efficiency across all our sites by obtaining ISO 50001 certification, an international standard for energy management Pioneering New Projects and Markets
In October 2022, the Songdo Edison 4 site in Korea became the first in
systems. By 2030, we also aim to replace our domestic business vehicles with zero-pollution cars, such as electric and hydrogen vehicles. Additionally, the construction industry to receive the 'Zero Waste to Landfill Certificate' Strengthening Safety and Health
to minimize indirect carbon emissions (Scope 2) stemming from electricity usage, we will adopt green electricity tariffs and purchase renewable from UL Solutions, a global certification organization specializing in safety Fostering Fair Transaction
energy certificates. Our goal is to transition to 100% renewable energy by 2030, and we have already taken the initial step by purchasing 500MWh of and science. The Zero Waste to Landfill Certificate is a system that assigns Proactive Risk Managemen
renewable electricity at a green premium in Korea in February 2023. grades based on the percentage of waste generated at a business site that
Information Security
is recycled into resources, and the Songdo Edison 4 site was the first in
the construction industry to receive the 'Gold' certification, recognizing
its recycling performance of 95% to 99% of waste and excellent waste
management capabilities. We will continue our efforts to improve resource Environmental
The Net Zero Emissions Roadmap
circulation through waste reduction and management.
Scope 2
office building, Procurement of renewable Appendix
energy(Green pricing, Renewable Energy
2018 2030 2050 Certificates)
Korea's Nationally Determined Pursuing 100% Achieving Net
Contribution (NDC), Renewable Energy Zero Emissions ※ Promoting offset absorption projects for residual emissions after major reduction
Samsung Engineering Baseline activities to achieve net zero emissions
Pioneering New Projects and Markets Advancing Future Technologies to Address Societal
2022 Samsung Engineering
Challenges
Sustainability Report
As a responsible company, we recognize our obligation to address a wide range of social issues, encompassing climate change, quality, safety, and economic crises. Our
commitment lies in creating new values as a business. As a leader in future technologies dedicated to addressing societal challenges, we are unwavering in our pursuit of CEO Message
technological advancements that provide solutions to diverse challenges faced by businesses, society, humanity, and the environment.
Overview
Sustainability Strategy
SHIFT LEFT and AHEAD: Shifting the EPC Industry Paradigm with Experience-Based Innovation Sustainability Performance
Partnering with OMV: Forging a Path as a Solution Leveraging our extensive experience assets and profound industry knowledge, we achieved a remarkable ten-year financial record milestone in 2022. Combating Climate Change
Provider in the Era of Energy Transition The introduction of SHIFT LEFT and AHEAD has revolutionized our project execution methods and processes, propelling us beyond the conventional Pioneering New Projects and Markets
boundaries of the EPC business. This transformation has firmly established us as a leading total solution provider, driving enhanced innovation Strengthening Safety and Health
In May 2023, Samsung Engineering entered into a memorandum of competitiveness, improved profitability, and effective risk minimization. Fostering Fair Transaction
understanding (MOU) with OMV, a global integrated energy company that
is based in Austria. This collaboration focuses on the application of module Proactive Risk Managemen
technologies in projects and the facilitation of energy transition. The MOU Enhancing Information Security
carries substantial significance for our Project Delivery Solution, specifically SHIFT LEFT and AHEAD
our module technology, and contributes to our Beyond EPC Solution in the
energy transition domain. This partnership marks a significant step towards
realizing our vision of becoming a leading solution provider. Two Key Innovations at Samsung Engineering Environmental
Innovation in Project Execution Methods and Processes
Social
A total solution approach, leveraging our extensive know-how from abundant project A fundamental innovation in project execution, utilizing a digital knowledge database
Appendix
experience to offer comprehensive consulting services for project development during its for IT-driven systematic project management for the entire project lifecycle, ensuring
early stages, securing the subsequent EPC phase of the project. effective risk identification and minimizing uncertainties.
Safety accidents, which can tragically claim the lives of our family and loved ones in an instant, cannot be solely prevented through strict punishment regulations. At Samsung
Engineering we are committed to fostering a culture of “autonomous, preventive and innovative safety,” where employees autonomously adhere to the safety standards, CEO Message
proactively prevents safety accidents, and continuously enhance our safety processes.
Overview
Sustainability Strategy
Upholding the Zero-Accident Principle: An Autonomous, Preventive and Innovative Safety Culture Sustainability Performance
In line with our unwavering belief that “Safety is the first principle of business management,” we have maintained a remarkable streak of zero serious JMJ’s Incident and Injury-Free (IFF) Program Combating Climate Change
accidents since 2016 in Korea and 2018 overseas, with no serious accidents reported in 2022. Pioneering New Projects and Markets
Building on the momentum from 2021, we extended the operation of the
Incident and Injury-Free (IIF) program in 2022 in collaboration with JMJ at Strengthening Safety and Health
our Vietnam SEMV site. Operating under the vision, “The biggest gift to your Fostering Fair Transaction
family is your safety,” a cumulative total of 386 managers have completed Proactive Risk Managemen
the Tool Box Meeting (TBM) leader training to date. Bolstered by these efforts,
Key to Safety Culture: Right Policies, Goals, and Investment
Enhancing Information Security
our goal is to launch Samsung Engineering's unique safety culture brand
and amplify genuine safety awareness. In doing so, we intend to fortify the
Aligned with the increased societal awareness and strengthened national safety policies, and to
incorporation of safety culture across our organization.
meet our clients’ demands, we prioritize proactive measures, goal-setting, and the internalization
of our safety policies. Environmental
Summary of IFF Program at Vietnam SEMV Site
Strengthening proactive measures : Significantly investing 52.6 billion KRW in safety initiatives (April 2022 - February 2023)
Setting appropriate goals : Establishing safety and health objectives based on the principles of Social
“autonomous, preventive, and innovative,” complemented by safety commitment ceremonies •C
ore Leadership Activities: 17 key personnel, including the Project Manager (PM),
Fostering safety culture : Acquiring ISO 45001 and KOSHA-MS certifications, and implementing Safety Team Leader, Construction Team Leader, and Subcontractor’s Site
Manager, participated in 11 core leadership sessions. Governance
initiatives such as S-CAR1) and IFF2) Program.
•O
n-site Coaching: 20 safety managers, including subcontractor
1) Safety-Corrective Action Request
representatives, were provided with on-site coaching that focused on three
2) Incident and Injury Free
skills: two-way communication during TBMs, consistent reinforcement of Appendix
safety behaviors, and correcting unsafe practices.
•W orkforce Engagement: A collective total of 4,550 workers participated in
the IIF safety culture innovation program, which aimed to enhance safety
awareness levels and induce behavioral changes.
•O utcomes: The safety culture assessment indicated a notable improvement
Advancing Safety and Health: Expanding Investments and Initiatives in individual awareness, behavior, culture, and system.
In 2022, we allocated 52.6 billion KRW towards safety and health, exceeding the budget of 49.8 billion KRW with an execution rate of 105.5%. Notably,
as a result of our business expansion and the relaxation of COVID-19 regulations, there was a 41.2% increase in the procurement of protective
equipment and a 36.6% rise in worker health assessment costs at domestic sites. In 2023, in addition to prioritizing site safety, we will continue
investing in preventing major incidents by advancing the health management system and enhancing the HSE platform.
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
20
The EPC industry is a collaborative and enduring journey where experts across various fields, including engineering, equipment, material, procurement, and construction,
come together with a shared objective to create a masterpiece. Within this process, our suppliers are not mere outsiders but valued members of our unified team. In order CEO Message
to ensure mutual growth and a sustainable future with our suppliers, we have established a comprehensive framework for monitoring fair transactions and implementing
various support programs. Overview
Sustainability Strategy
local projects. Additionally, we provided support to our suppliers in their local overseas market entry, recruitment, and training, fostering shared growth with our suppliers. Fostering Fair Transaction
investments and network building efforts within Saudi Arabia.
Cultivating a Sustainable Supply Chain
Proactive Risk Managemen
Enhancing Information Security
Key Activities Participating companies To affirm the sustainable management practices among our suppliers and encourage continuous improvement, we provide support for ESG
Formed S-PEpC Partnership with Petronash, ZEECO Middle East, Sulzer, assessments and offer consulting in the areas of environment and social responsibility. In 2022, we extended our assistance to 50 small and medium-
local vendors WESCOSA, OMS, Kanoo, ABB sized companies, facilitating their ESG evaluations conducted by credit rating agencies. Notably, 12 of these companies received a rating of third or
Environmental
higher out of a total of 7 ratings.
WAROM, CEG, Doosan Mecatec, Hyosung
Supported suppliers in entering
Goodsprings, Hanwha Power Systems,
the Saudi market 2022 Support Results
Dae Heung Industrial Social
Category Contents Support outcome in 2022
Governance
•P
roviding zero-interest loans •Z
ero-interest loans totaling 20.8 billion KRW provided to 41
•O ffering loans with reduced special rates suppliers
Financial •E asing payment conditions •L oans with reduced special rates amounting to 8.9 billion KRW
Support •R educing contract performance bond fees offered to 27 suppliers Appendix
•E nabling earlier payment prior to the •C ash payment to all small and medium-sized suppliers
holiday season •E arly payment of 42.8 billion KRW made to suppliers
Technology
Organized 2022 ConTech Contest in collaboration with Samsung C&T and Samsung Heavy Industries
Development
•S
upporting suppliers in entering new
Overseas overseas markets and providing bid •A
ssisted 12 suppliers in participating in 16 projects and new
Market Entry participation opportunities to expand their contracts worth 65.7 billion KRW
market presence
•O
perated 10 recruitment programs and hired six supplier
employees
•S upported online training courses for 385 supplier employees in
•O
rganizing online and offline job fairs
areas such as business management, technology, and language
Recruitment •P roviding online training programs
skills
and Training •S upporting ESG management assessment
•P rovided offline training courses for 182 supplier employees,
and consulting
including BIM and smart plant building program
•A ssisted 50 suppliers in undergoing ESG evaluation conducted
by credit rating firm
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
21
In the current market environment, characterized by increasing uncertainties such as pandemics, earthquakes, and geopolitical conflicts, it is imperative to be prepared
for diverse risks that may arise in business operations. With this in mind, we have established a robust risk management governance framework. Through regular risk CEO Message
assessments, an autonomous risk management team, and the application of risk assessment indexes, we cultivate a companywide culture of risk management and devise
strategies that minimize business risks posed by market uncertainties. Overview
Sustainability Strategy
As a trailblazer in Korea, we successfully completed the ISO 31000 Certification in the Project Category Pioneering New Projects and Markets
1) I ntegration and operation of the business
verification, a global risk management standard that provides a operating system and the risk management In November 2022, we achieved a remarkable milestone as the first company
Strengthening Safety and Health
framework for effective risk management based on eight principles. system
worldwide to obtain certification for all four international standards in the Fostering Fair Transaction
This achievement validates our competency in risk management and 2) Involvement of the executive management in risk project category, namely ISO 21502 to ISO 20505. As a result of a three- Proactive Risk Managemen
demonstrates the competitiveness of our risk management framework. management
phased assessment covering 66 criteria, we obtained level 5, the highest Enhancing Information Security
3) S
tructure of risk identification, analysis, and rating, in all four international standards. This recognition underscores our
response
world-class project management capabilities.
• I SO 21502: Guidance on project execution processes, systems, and human Environmental
resources
• I SO 21503 & ISO 21504: Guidance on program management (large projects)
and portfolio management (project area unit) Social
• I SO 21505: Guidance on comprehensive project, program, and portfolio
management
Governance
Leveraging Risk Information Assets for Proactive Risk Alerts
We effectively manage risks throughout the entire process using our IT system. Our extensive database stores a wealth of accumulated risk Appendix
management information, serving as an invaluable asset. Since 2022, we have proactively provided expected risks and risk alerts for each phase by
analyzing the database, with the aim of creating a system that enables early recognition of potential issues and facilitates proactive measures.
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
22
In today’s information-centric world, where the value of data is paramount, protecting information assets has become a critical undertaking for companies. At
Samsung Engineering, we have established a robust information security framework that adheres to global standards, allowing us to address evolving security threats. CEO Message
Simultaneously, we make continuous investments in information security technologies to safeguard our proprietary technology and client data.
Overview
Sustainability Strategy
CISO(Chief Information
Security Officer)
Environmental
Compliance Information Security
Team Committee
Social
HQ Security
Information Security Center
Manager
Governance
• E
stablish company-wide
information policy
Leading the Construction Industry in Information Security Investment
• O
versee response to security
incidents In 2022, our steadfast commitment to investing in information security technology was recognized by the Appendix
• P
rovide employee trainings Ministry of Science and ICT. Among the companies mandated to disclose their information security status, we
on information security
• S
ecurity inspection at offices emerged as the top investor in information security within the construction industry. In 2021, we allocated 3.2
• F
acility security management billion KRW, accounting for 4.8% of our total investment in information technology, solely towards information
• M
onitor symptoms of security security. As the significance of information assets continues to grow amidst the digital transformation, we remain
Incidents
• P
ersonal information security dedicated to ongoing investment and the implementation of effective information protection measures.
•E
stablish group-wide security policy •M
anage IT security system
•C
ollect/announce group-wide •R eview/implement new
security tasks Solutions
•E
xamine SSI (Samsung Security •R espond to security incidents
Index) •R espond to security control
•A
nnounce and guide the affiliates Events
on new security weakness •C ompany-wide IT security
•R
espond/analyze security incidents check
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
23
CEO Message
Overview
Sustainability Strategy
Sustainability Performance
Environmental
Social
Governance
Appendix
Environmental
24 Environmental Management
26 Environmental R&D
28 Climate Change Response_TCFD Report
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
24
Environmental Management
With a firm commitment to minimizing our environmental footprint across all aspects of our business operations, 2022 Samsung Engineering
we have set ambitious mid-term targets spanning a decade and implemented a range of environmentally-friendly
initiatives. In 2022, we exceeded our goals set in 2020 for waste reduction and greenhouse gas emissions, Sustainability Report
demonstrating our dedication to environmental responsibility.
CEO Message
Environmental Management Initiatives Preserving Biodiversity Environmentally-Friendly Green Purchasing 2022 Samsung Engineering
Advancing Waste Resource Circulation We are deeply committed to protecting biodiversity by adhering to We advocate for the purchase of eco-friendly products for the civil Sustainability Report
relevant regulations outlined in our environmental policy. We establish and architectural materials, and plant equipment at all our sites, as
In pursuit of waste resource circulation, we leverage our Sustainable and implement robust biodiversity protection plans in accordance with well as for computer supplies, office supplies, and consumables at our
Environmental Initiative System (SEIS) to monitor waste generation international standards and local requirements, and conduct regular business locations. Our commitment lies in minimizing the impact on
and treatment across different waste types throughout our project monitoring activities. These comprehensive measures to safeguard both human health and the environment through the procurement
processes. In 2022, we became the first company in the construction biodiversity are applied throughout our company, suppliers, and other of green products. To further promote the use of environmentally-
industr y to receive a "Gold" rating as a landfill-free company in contracted parties. friendly products in the daily lives of our employees, we have replaced
recognition of our efforts to recycle waste from the Songdo Edison CEO Message
plastic straws at the company cafeteria with corn-based alternatives.
4 project in Korea. In 2023, we remain commit ted to obtaining Regional Initiatives for Biodiversity Preservation
Zero Waste to Landfill Cer tification at additional domestic sites. Within each project, we conduct environmental impact assessments Environmental Training Programs Overview
Simultaneously, we aim to elevate recycling rates at overseas sites and and implement a range of protection activities to preserve the local
have implemented a robust plan to reduce waste generation by 2.2% We provide environmental training to all members of our organization,
biodiversit y. In cer tain regions, we enforce restricted access to
annually. Our ultimate goal is to achieve a 20% reduction in the waste- including suppliers. We closely manage the monthly training hours
sensitive areas and supervise these zones to ensure the conservation Sustainability Strategy
to-sales ratio by 2030, compared to our 2020 baseline. dedicated to environmental topics for each employee and utilize
of biodiversity. Furthermore, we actively engage in local environmental
their involvement in environmental improvement activities as a key
Strengthened Waste Treatment Management and Supervision cleanup campaigns in collaboration with government agencies.
indicator to encourage their continuous participation. Additionally,
Sustainability Performance
To comply with the environmental laws of each project’s country, we we offer tailored on-site training to our employees, focusing on
conduct thorough environmental impact assessments and develop waste management, dust control, and chemical substance handling.
tailored waste management plans. For our domestic projects, we Suppliers also receive monthly environmental training specific to the Environmental
place utmost importance on rigorous management and supervision of Mexico DBNR Project site requirements.
waste treatment companies. Our selection process is based on clear Environmental Management
In order to protect the mangrove ecosystems, we have designated restricted
criteria including their technological expertise, and we also monitor Environmental R&D
areas within the site that encompass the mangroves and their adjacent
their secondary treatment processes. In the case of overseas projects, Climate Change Response_TCFD Report
regions. These areas receive vigilant management and oversight to ensure
we exercise meticulous care in selecting lawful waste treatment their preservation.
companies, while consistently overseeing their management processes
and closely supervising their post-management activities. Social
Environmental R&D
At Samsung Engineering, we are deeply committed to addressing challenging social issues through the development of diverse technologies 2022 Samsung Engineering
aimed at treating hazardous materials and reducing energy consumption. In 2022, we prioritized the adoption of technologies that enhance
our competitive edge in project acquisition, leading to a notable reduction in operational costs. Moreover, we have developed environmental
Sustainability Report
technology strategies to explore new opportunities for environmentally-friendly projects.
CEO Message
Smart O&M
• Automation of core processes within sewage • Securing equal level of technology to competitors through automation of all processes within sewage
treatment treatment
• 50% automation of sewage treatment processes • 100% automation of sewage treatment processes
Technology Development Status Development of an organic anaerobic waste treatment system 2022 Samsung Engineering
This anaerobic waste treatment system collects methane from organic
Development of multi-functional catalyst process to eliminate bad wastes, including sewage sludge, and reuses it as an alternative
Sustainability Report
odors at sewage and wastewater treatment facilities energy source. It prevents the organic waste from dissolving into the
environment and producing greenhouse gases, while enabling its
This environmentally-friendly dry treatment technology eliminates conversion into a new bioenergy resource.
the use of hazardous chemicals, addressing the limitations of the
existing deodorization system that generates wastewater and employs
hazardous chemicals. CEO Message
Overview
Sustainability Strategy
Sustainability Performance
Environmental
Environmental Management
The technology was installed at the site in February 2023
and commenced commissioning in March 2023. Environmental R&D
Quantitative achievement: Reduction of hazardous chemicals Climate Change Response_TCFD Report
by approximately 500 tons per year.
Social
Hazardous gas wet treatment technology
This high-efficiency wet scrubber utilizes a non-packing method that Governance
treats water-soluble hazardous gases. It is more than 30% smaller in
size compared to conventional scrubbers and achieves a treatment
efficiency of over 99%, even without the need for packing, which is Appendix
difficult to maintain and repair. Pilot testing is currently underway.
_TCFD Report
greenhouse gas emission reduction activities and progress. In 2021, we raised the bar by transitioning from measuring
Sustainability Report
emissions intensity to measuring absolute emissions as the unit for our emission reduction target, adopting a more stringent
standard. Furthermore, we have increased our 2030 emissions target to an ambitious 45%, a doubling of our previous target.
We have designated 2023 as the pivotal year to commence our journey towards net zero emissions. Our focus is on establishing
a robust climate change response framework, devising detailed strategies, and working towards obtaining ISO 50001
certification for our energy management systems.
CEO Message
Governance
Respond to climate change
Implementation
Strategy
Risk Management Pioneering the Net zero Emissions Roadmap Overview
risks and seize opportunities Analyze climate change risks Samsung Engineering has introduced a company-wide climate change Recognizing our responsibility as a global company to address climate
under the leadership of the across different scenarios risk and opportunity management process to identify and respond to change, we have established the 2050 Net Zero Emissions Roadmap to
Board of Directors, ESG and develop a response
pave the way towards a carbon-neutral society. This comprehensive Sustainability Strategy
Committee and a dedicated roadmap risks and opportunities in advance.
environmental team
roadmap outlines detailed targets, including the achievement of net zero
emissions by 2050 and a 45% reduction in carbon emissions compared to
Risk Management Process Sustainability Performance
the 2018 baseline, achieved through the exclusive utilization of renewable
energy sources. To accomplish these goals, we are actively reducing direct
Identify •I dentify business-level impacts and issues through
emissions by transitioning to zero-pollution business vehicles and embracing Environmental
Regulations and scenario analysis based on domestic and overseas
Trends Related environmental shift in climate change and regulations eco-friendly fuels. Moreover, we are firmly committed to investing in
Climate to Environmental technological advancements to further reduce carbon emissions. Environmental Management
•U
nderstand requirements from other stakeholders
Change Issues
Response (domestic and overseas ESG evaluators and investors) Environmental R&D
Direction Climate Change Response_TCFD Report
Distinguish Risks
•D
raw short, mid, and long-term physical/transitory Implementation Initiatives
risks and opportunities based on climate change
and Opportunities
scenarios Monitoring and Reducing Greenhouse Gas Emissions Social
In line with our mid and long-term reduction goals, we diligently monitor
•R
eview impacts on workforce, structure during three key greenhouse gases – CO2, CH 4,and N 2O – emitted from our
Risk Management Indexes and Goals construction and transport of raw materials, machine processes, among the six major contributors. To ensure the accuracy of our Governance
Risk Analysis and equipment through external experts
Establish a risk
management
Implement a system for
managing carbon neutrality •A
nalyze financial impact due to climate change risks
measurements, we engage in third-party verification. Furthermore, starting
from 2021, we have adopted a more rigorous approach by shifting from
Appendix
framework goals and tracking progress and opportunities
measuring emission intensity, a practice employed until 2020, to tracking
Governance •L
ink directions and strategies of climate change by
absolute emissions as the primary metric for our emission reduction targets
and planning. This transition underscores our unwavering commitment to
Establish analyzing methods of risk reduction and opportunity
Climate Change Execution Team Response validation stringent greenhouse gas management practices.
Strategies •D
raw tasks for climate change response and monitor
In October 2022, the ESG Committee approved environmental manage-
ment strategies, demonstrating our active commitment to the global
progress Enhancing Energy Efficiency and Embracing Renewable
fight against climate change. Our goals include pursuing a 100% Energy
transition to renewable energy by 2030 and achieving net zero emissions In our pursuit of emission reduction, we are dedicated to achieving 100%
Implementation Strategy
by 2050. renewable energy usage across our domestic and overseas sites, as
well as our head office and global offices, by 2030. A significant step
We have conducted an analysis of the risks and opportunities associated with was taken towards this goal in February 2023 when we purchased
Board of
Directors
• Decision-making on ESG Management climate change, identifying significant transition risks and physical risks that 500MWh of energy at a green premium in Korea. We are also actively
affect our business. Through this analysis, we have evaluated the potential working towards obtaining ISO 50001 certification for our energy
business and financial impacts of these risks. management systems in 2023.
• Decision-making on climate change
ESG Committee response
• Operation of climate change risk system Climate Change Impact analysis
We have conducted an analysis of global climate change scenarios to identify
• Establish and implement climate change
ESG Environmental response strategies short and medium-term physical risks and transition risks that may impact our
Management Sites • Identify climate change risks and business and finances. In addition, we have identified opportunities and are
Group Group opportunities currently in the process of developing corresponding response strategies.
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
29
Climate Change Response_TCFD Report
Business, financial impact and strategy of climate change 2022 Samsung Engineering
Sustainability Report
Business impact analysis Financial impact analysis
Per Like How to mitigate risks and
Type Category Level Level
iod lihood realize opportunities
of Business Impact of Financial Impact
Impact Impact
• Increased
operating costs due to rising prices of GHG emission rights
• Increase in emissions reduction cost when selected for a emissions
Policy • Increased financial burden due to failure to secure emission rights and • Proactive
management of emissions through
and
GHG emissions Mid-
High High
trading enterprise
Low exceeding allocation establishment of carbon neutrality strategy CEO Message
trading scheme term • Fewer contracting opportunities due to a decline in oil and gas projects
Legal • Increased equipment and fuel costs due to the introduction of a global and implementation of GHG reduction
following the introduction of carbon taxes
carbon price
Stricter disclosure
Overview
• Need for data systems to collect, manage, and disclose GHG and other • Establishment of information collection
Transi- requirements in
Mar- Long- related data on subsidiaries due to strict disclosure requirements • Increased costs to build and manage data systems process and IT system introduction
tion PQs and bids when High High High
Risks
ket
doing business
term • Damage to corporate reputation and pressure to reduce GHGs due to • Changes in enterprise value as technology and assets are revalued plan in accordance with the disclosure
Sustainability Strategy
exposure of low-carbon business unit data requirements of global initiatives (CSRD)
overseas
• Introducing
eco-friendly technologies
Transition to • Increase
in costs of eco-friendly product development and R&D expenses in existing businesses and promoting Sustainability Performance
Tech- Mid- • Increased demand for continuous R&D promotion organization,
green, low-carbon High Medium Medium • Increased financial risk due to the failure of new technology investments eco-friendly solution business through
nology term investment, andactivities
technologies • Need for early disposition of existing assets investment in eco-friendly R&D and
diversification of business portfolio Environmental
• Distribute
supplies to prevent heat-related
Environmental Management
illnesses
Risks • Delays
in the construction schedule of overseas projects due to heat • Real-time weather forecast at each site to Environmental R&D
• Damages to production and employees from extreme heat
illness outbreaks and human damage caused by heat illnesses prevent risks in advance Climate Change Response_TCFD Report
• Establish work hour adjustment policies
under hot weather and unusual climate
Heavy rain, • Financial
loss from physical and management damages to facilities • Quarterly
facility checkup in preparation of
Acute heavy snow,
Short-
Medium Medium • Facility damage High including project timeline extension, facility collapse or damage, water heavy rain, extreme heat, and heavy snow
Social
term
extreme heat pollution, and delays in transportation of equipment and materials • Construction insurance
Phy-
sical • Diversify
supply chain channels to prevent
Governance
Risks construction delays
• Financial
loss from delays in transportation of materials and raw • Devise handling and storage guidelines for
• Delays in raw materials supply and transport
materials supply transportation of raw materials
• Prepare on-site raw materials handling and Appendix
storage guidelines
• Arrange
climate change response manuals
Rise in sea
Mid to at each site through regular climate data
level, average • Additional
costs due to risk preparation for construction in flooded areas
Chronic long- Medium Medium • Flood
on site, limits on the number of workdays for employees High monitoring and analysis
temperature, • Delayed construction period due to reduced work efficiency
term • Secure workdays by automating on-site
average rainfall
work
Provision of
• Develop new infrastructure service through innovation and R&D
eco-friendly Mid- • Increase
the number of global projects by developing eco-friendly • Leading
the market through leading R&D
Markets High High • Increase demands on carbon capture and expansion of hydrogen High
products and term constructionmethods/processes and securing technological competitiveness
business
services
Enabling
• Expanding business opportunities at the national level when promoting
government • Leading
government policies and national
Policy and Mid- eco-friendly solutions such as carbon capture and hydrogen projects • Hedging
the risk of developing new technologies through joint projects
policies and High High High projects by developing leading eco-friendly
Legal term • Opportunities for business participation in joint projects and joint between countries
support for green solutions
research on eco-friendly technologies between countries
technologies
Oppor-
tunities • Reducing
operating costs through GHG reduction activities
Operational Increase in resource Short- • Establishing
a systematic GHG management
High Medium • Proactive response to the strengthening of national policies and laws Medium • Reducing waste disposal costs by reducing waste generation and
efficiency efficiency term and resource circulation monitoring system
increasing recycling
• Develop response plans to mid to long-term risks and enhance
capabilities by participating in global initiatives regarding climate
• Promote
internalization of carbon neutrality
change/renewable energy • Securing
supply chain stability
Internal Increase in Long- and GHG reduction activities through
High Low • Reinforce risk management capabilities in environmental sectors such High • Increase in market value and inflow of investment funds due to positive
capabilities Resilience term campaigns, internal indicators, intensive
as GHG reduction and energy management by responding to the global evaluation by global investors
education, etc.
initiatives including CDP (Carbon Disclosure Project) and providing
responses to external evaluations
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
30
CEO Message
Overview
Sustainability Strategy
Sustainability Performance
Environmental
Social
Governance
Appendix
Social
31 Safety
34 Quality
36 Employees
41 Suppliers
43 Social Contribution
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
31
Safety
At Samsung Engineering, the safety and health of our clients, employees, and local community are paramount. We dedicate our efforts to 2022 Samsung Engineering
safeguarding all stakeholders through our robust safety and health system. We actively set, execute, and monitor safety goals and plans,
sharing results transparently for continuous improvement. This rigorous safety management approach is deeply embedded in all facets of
Sustainability Report
our business operations, ensuring optimal safety control.
CEO Message
amalgamation of all EPC innovation solutions, devised from our technological Employees
expertise, project experience, and DT technology. Number of innovative technologies applied Suppliers
Drive DT innovation 63 cases
to reduce safety and health accidents
Social Contribution
Safety Management Activities Design For Safety (DFS) – Ensuring Safety from the Daily S-Cycle: Systematic Management Activity for 2022 Samsung Engineering
Engineering Phase Safety Managers
Investment in Safety Management Sustainability Report
We employ DFS to identify and implement design options that enhance Daily S-Cycle, Samsung Engineering’s unique safety management process, is
Samsung Engineering has consistently invested in innovative IT solutions
safety right from the engineering phase. In 2022, we operated a designed to preemptively identify and mitigate potential risk factors within
to strengthen incident prevention and streamline our safety operations.
comprehensive DFS task force that facilitated collaboration among our each day’s work scope before activities commence. This cultivates an elevated
In 2022, we allocated 240 million KRW to enhance our Health, Safety,
construction, engineering, and safety teams. We identified 832 items, level of safety awareness among on-site workers. Launched in 2019, the
and Environment (HSE) platform. We further committed 90 million KRW
of which 159 items were proposed to the engineering team and 13 were procedure is now entering its fourth year of successful implementation. The
towards the development of a QR-Code-based safety training system,
successfully integrated into the engineering phase. In 2023, our objective Daily S-Cycle meetings are attended by our site supervisor, safety manager, CEO Message
specifically designed for temporary site workers such as vehicle drivers,
is to expand our DFS database by involving suppliers and broadening as well as supplier manager and foreman. In 2023, our goal is to further refine
to eradicate potential safety blind spots. Additionally, we invested 100
participation beyond our in-house teams. Furthermore, we plan to this operational process by providing more detailed role definitions, such as
million KRW into the development of project manager (PM) evaluation
modules, ensuring an objective and efficient evaluation of PM as safety
conduct promotional activities, such as training sessions on process implementing a grading system to the tool box meeting (TBM) leaders. Overview
examples and DFS applications, at least twice a year for our safety
and health management personnel.
personnel and supplier managers. We will also hold presentation sessions
showcasing exemplary DFS applications, underscoring our commitment Daily S-Cycle Process Sustainability Strategy
New Safety Technology Exhibition to eliminate risk factors at their roots.
In 2022, the Safety & Quality Division hosted the New Safety Technology Daily S-Cycle Standard Model
Sustainability Performance
Exhibition. This gathering served as a unique platform for our employees
to engage directly with new safety technologies. The event showcased Mobile Safety Training via QR Codes
advancements like VR Safety Training, Smart Control Center, Smart CCTV, We have implemented a mobile safety training system using QR codes Before the task After task
Environmental
AI Camera. It also featured displays of industrial robots and a dedicated to facilitate consistent and immediate safety training for our employees,
interactive center for experiencing GSIL’s integrated safety management irrespective of their location – whether on the site or at the head Risk Coordi Tool Box
system firsthand. The exhibition underscored how technology can be office. QR or NFC1) panels are strategically installed across our head assessment
S-PCM2)
A
Work
nation Meeting
Monitoring
Social
leveraged to reinforce safety measures and prevent accidents in potential office and sites. Employees can scan these panels with their mobile from time Meeting (CCL3) &
Permit Safety
safety blind spots. phones to gain instant access to safety training materials. This not to time Coaching)
only provides readily available safety training but also automates the Quality
collection of training performance data for efficient management. We 2) Safety Pre-Construction Meeting Employees
have established a system that allows workers to register and utilize 3) Critical Check List Suppliers
Samsung Engineering invests in GSIL, a start-up in smart safety innovation additional training courses tailored to their work characteristics in the field. Social Contribution
1) Near Field Communication Safety-Corrective Action Request (S-CAR): A Mobile Platform for
Risk Identification, Now Incorporating Suppliers
Launched to monitor the safety and health status of workers and Governance
identify potential risks, the S-CAR program broadened its scope in 2022
to include suppliers. Beyond its initial role as a company-wide safety
incident prevention system, it now serves as a comprehensive tool aimed Appendix
at preventing safety incidents for all workers. In 2022 alone, the S-CAR
program identified 58,141 cases. Notable cases were recognized and
rewarded: 51 individuals received the Division Head Award and seven
were honored with the CSO Award, with the total prize money amounting
to 22.9 million KRW.
Awarded cases included prevention of fall incidents through the
installation of safety blocks when working atop tanks, and measures to
cover the excavation surfaces to avert rainwater influx and mitigate soil
collapse risks. These valuable cases were shared across all domestic and
overseas sites, serving as training materials to eliminate risk factors. With
the completion of the S-CAR mobile platform, the program has evolved
into a highly accessible IT system for site workers, facilitating continuous
identification, analysis, and prevention of safety issues.
Impro-
Potential Monitoring Prevention
S-CAR vements
risks and of similar
is and
are S-CAR S-CAR cases
issued corrective
identified analysis in the future
Invests in GSIL measures
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
33
Safety
Operation of SECL Training Center Activities for Prevention of Serious Accidents Recognition for Exemplary Contributions to Industrial 2022 Samsung Engineering
As part of our commitment to bolstering the safety capabilities of In compliance with Chapter 2 Article 4 (Measures for Establishment of Incident Prevention: Stone Tower Order of Industrial Sustainability Report
our employees and preventing incidents, we mandate companywide Safety and Health Management System and Implementation Thereof) and Service Merit
training that includes practical experiences in CPR, plant safety Article 5 (Managerial Measures Necessary to Perform Duties under Safety In July 2022, our site manager Seong Sick Yoo, who has been with
management, fire drills, and virtual reality (VR) simulations. In 2022 and Health-Related Statutes or Regulations) of the Enforcement Decree of our company since November 2006 and has consistently served as a
alone, we conducted 101 training sessions with 865 participants, the Serious Accidents Punishment Act, we report the results of nine key dedicated site safety & health manager, was honored with the Stone
resulting in a cumulative total of 2,470 trainees since the opening of compliance items to our CEO. Tower Order of Industrial Service Merit. This esteemed recognition
SECL Training Center in 2019. Additionally, we aim to boost safety In 2022, we conducted two emergency response drills organized by celebrates Mr. Yoo’s exceptional performance as a safety & health CEO Message
awareness within the local community. To this end, we have signed a the Safety & Health Team at the head office, with one held in each half manager, achieving zero serious accidents throughout his tenure.
Memorandum of Understanding (MOU) for safety experience training of the year. After each drill, we analyzed the results and determined His exceptional achievements are a testament to his commitment to
with the Gangdong-gu District Office. improvements, thereby setting the implementation plans for the 2023 fostering a strong safety culture through the active implementation Overview
emergency response drill. of our safety and health system, conducting safety training at the site,
and operating risk assessment discussion groups.
Implementation Identification and Formulation and
Sustainability Strategy
outcomes of safety and mitigation of hazardous execution of safety Safety Mileage Program
health plan risk factors and health budget
Since the second half of 2021, we have implemented a safety mileage Sustainability Performance
program at our sites to promote efficient safety activities and the
Appraisal results of Emergency response
safety and health
Feedback collected from
drills and subsequent
achievement of zero accidents. Through this program, we reward sites
leaders
employee opinion surveys
improvements that successfully reach the targeted goal of zero accident manhours, Environmental
which is determined based on the construction price. As of 2022, a
Assessment of Findings from incident Execution of legally total of 50 million KRW has been granted to the employees at 12 sites,
supplier safety and
cause investigations
mandated items and recognizing their hard work and providing continued motivation to Social
and plans for recurrence
health practices prevention safety training outcomes strive for zero accidents. Safety
Quality
Management of Incident Rates with a Focus on Serious
Achievements in Safety Management
Provide hands-on training on site safety, life safety, and VR Employees
Accidents
Operation of SECL
Training Center experiences to enhance safety awareness for all employees Suppliers
Online and group training sessions focused on safety and Enhanced Safety Compliance at Domestic and Overseas In 2022, we placed a strong emphasis on transparent site safety Social Contribution
Overseas
Assignees Training
health principles and standards, specifically designed for
Sites management, including the expansion of our S-CAR program to
employees delegated to overseas sites incorporate suppliers. While there was a slight increase in both the
A comprehensive program aimed at developing emergency Building upon our efforts from 2021, we assessed the safety level and lost time injury rate (LTIR) and total recordable incident rate (TRIR)
Emergency
response plans, facilitating swift and organized responses to safety leadership capabilities at 28 domestic and overseas sites in 2022. compared to 2021, the number of serious injuries decreased in Governance
Response Drill
protect lives and assets during various disaster scenarios relation to the total number of industrial incidents. We attribute this
The findings indicate a consistent enhancement in safety leadership
Regular team-level discussions held before significant competencies, showing a positive trend that commenced in 2021 and positive trend to the enhanced awareness of incident reporting and
‘Safety Talk’ Appendix
meetings, focusing on safety or environmental topics continued throughout 2022. compensation among workers, facilitated by the implementation
of our transparent incident reporting policy at the site. Despite an
approximately 24% increase in work exposure time, totaling 150
Safety Leadership Level (unit : Point)
million manhours (MH), due to the growth in sales and workforce, we
Safety Level at Domestic Sites/Safety Leadership Level at Domestic Sites Safety Level at Overseas Sites/Safety Leadership Level at Overseas Sites successfully prevented any fatal accidents from occurring.
81.8
80.2 80.2
79.7 79.3
79.0
78.1 78.7
77.6 77.7
2020 2021 2022 2020 2021 2022 2021 2022 2021 2022
※ On-site inspection of the leadership safety level in 2020 was not conducted due to the spread of the COVID-19 virus
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
34
Quality
At Samsung Engineering, we have established a proactive quality management platform that encompasses all stages of engineering, 2022 Samsung Engineering
procurement, construction and commissioning. Our aim is to continuously enhance and integrate a culture of quality throughout the
organization. Through the implementation of autonomous quality management practices at sites, we have observed a consistent
Sustainability Report
improvement in quality awareness year after year. To achieve our ultimate objective of zero costs associated with quality issues, we are
actively conducting ongoing improvement activities in collaboration with our “Right at First Time Process” and the quality index system.
CEO Message
Quality Management Framework Enhancing and Streamlining the Preemptive Quality Management Platform Overview
Quality Management Goals 2023 Our companywide preemptive quality management platform, implemented in 2021, actively addresses quality issues at every phase of project execution,
encompassing pre-work, pre-construction, construction, and post-construction stages. In 2022, we focused on continuous improvement by actively
Each year, we set ambitious goals based on our achievements from the listening to the voice of customers (VOC) and enhancing our system environment. Additionally, we are dedicated to improving the efficiency of our quality Sustainability Strategy
previous year. These goals are communicated with all employees to foster management processes through seamless system integration.
companywide culture of quality awareness. Our primary objective is to
achieve a score of zero in the recurring quality error index. Additionally, Sustainability Performance
we operate the progress index to measure project performance and
accomplishments at the lowest management level, ensuring efficient
quality management. In cases where projects fall short of their goals, we Environmental
implement improvement tasks to ensure a continuous cycle of quality System-Based Preemptive Quality Management System
management and drive ongoing progress.
Social
Safety
S-ARMS Employees
TOTAL QPS mPAR
Integrated Proactive Quality Management System IT System (Quality Proactive Solution) (Mobile Preventive Action Request)
(Smart-Augmented Reality Inspection Platform Suppliers
Management System) Social Contribution
We proactively identify necessary preventive measures for the smallest
work units of each personnel. These measures are then communicated
two weeks prior to the completion of the work units, aiming to eliminate
the recurrence of quality issues at their source. Governance
Preemptive management of Mobile prevention management AR quality / construction Operation of automated on-site
EPC quality system management inspection system
Appendix
• Integrated Quality Prevention System : WBS1), quality prevention database Advancement
management based on project schedules, automatic notifications for Points of Streamline project inspection
employees based on project schedules System Horizontalizing to partners for activities by connecting with
• A ctivity Unit Based Quality Process Management : Providing detailed quality Prevent issues in the full-scale mobile preventive existing systems and make
management guidelines for minimum work unit per employee in charge Changing from a system for
production phase by expanding management partners and inspections paperless and create
and managing related/follow-up quality processes for each construction reference to a management
the application from the increase utilization. a One Click Handover Dossier in
type tool utilized as a process and conjunction with Handover.
• A ctivity Unit Based Quality Process Management : Tracking each manager’s existing execution level to
quality management tool for
adherence to quality process management procedures and preventive vendors Prevent production
actions (Prevention process tracking if quality issues arise)
each function.
issues from occurring
• M inimal Work Unit-Based Quality Improvement : Quality improvement Hydrocarbon : 6,963 Executed nearly 27,000 APOC
based on minimum work unit for each manager after securing record Non-Hydrocarbon : 54,925 projects
visibility apart from the quality management activity without designated
target
1) Work Breakdown Structure Management
System Activity Unit Based Quality Process Management Activity Unit Based Quality Process Management Minimal Work Unit-Based Quality Improvement
Providing detailed quality management guidelines Tracking each manager’s adherence to Quality improvement based on minimum work unit
for minimum work unit per employee in charge quality process management procedures for each manager after securing record visibility
and managing related/follow-up quality processes and preventive actions apart from the quality management activity
for each construction type (Prevention process tracking if quality issues arise) without designated target
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
35
Quality
Daily Q-Cycle: Quality Management from a Risk Perspective Client Satisfaction Survey Quality Issue Management at Source through Experience 2022 Samsung Engineering
We have implemented the Daily Q-Cycle, a quality risk analysis and In line with ISO 9001 requirements, we conduct annual client satisfaction Asset Database Sustainability Report
monitoring activity centered on tool box meeting (TBM) leaders, to sur veys to under s tand their ne eds and implement immediate Our database stores all experience assets generated throughout the
effectively manage quality in “risk” units. In 2022, we successfully improvements. In 2022, we received responses from 97 clients across 23 project cycle and seamlessly integrates with QPS, a key component of our
applied the Daily Q-Cycle to our domestic industrial and environmental projects, including 32 clients from 9 hydrocarbon projects and 65 clients proactive quality management platform.
projects, resulting in a significant reduction of weekly nonconformance from 14 industrial and environmental projects. The survey respondents
rates by 52.1%. Building on this achievement, our plans for 2023 include comprised client project managers, construction managers, major CUBE KM (Knowledge Management) Contents Status (As of March 2023)
expanding the application of the Daily Q-Cycle to overseas industrial and discipline engineers, and QC personnel. Due to various factors, including
CEO Message
environmental projects, as well as hydrocarbon projects. This expansion remote work during the COVID-19 pandemic, the response rate was Number of
Experience Assets Category
aligns with our commitment to developing a comprehensive quality 7.62% lower than the previous year. Nevertheless, we maintained a registrations
management plan from a risk perspective. similar overall satisfaction level of 80.8 points. Overview
Daily Q-cycle 운영 프로세스 Function/Construction
Practice 265
Type/Estimate/Execution
Daily Q-Cycle Operation Process
Client Satisfaction Survey Core Lessons Learned 298 Function/Construction Type/
Sustainability Strategy
작업별 품질 Q-PCM시
Establish preventive TBM리더
Conduct 운영 현황
Continuously Estimate/Execution/ Nation
Analyze measures (Unit : Point)
Risk 분석 예방지침 수립 주관 교육
training 지속 모니터링
monitor 1,397 State/ Licensor/ PMC /
1)
CTQ (Cost Time Quality)
quality risks at Q-PCM Sustainability Performance
83.5
by operation Activity/ Inconsistency/
for each work (Pre-Construction
Meeting) TBM leaders status Cause/Item/Estimate Stages/
80.8 General L/L2), B/P3) 10,779 Execution Stages
1 Remote Inspection 2 3D Augmentation Program Mold Measurement 3 Intellectual Compacting Management System 4 Remote Inspection of Equipment Alignment
This Inspection Platform(I/P) based real-time video Leveraging augmented reality (AR), this program By installing sensors on vibration rollers used for road surface Utilizing the laser alignment tool, this technology digitalizes
sharing inspection system enables seamless sharing of enables 3D augmented mold measurements, enhancing compaction, this system detects the resistance strength of the alignment information, enabling real-time transmission
inspection activities through computers in the office inspection accuracy and providing an easy-to-manage ground and manages the compactness level and status of the and storage of alignment data in the cloud or on external
during remote inspections. record of inspection videos. ground. It replaces the traditional field density test (FDT). storage devices.
Tablet photography in the site > Suppliers Screen sharing to Office PC > SECL/Client
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
36
Employees
Samsung Engineering respects and practices the values of human rights, diversity, and inclusion based on the 'People First' corporate 2022 Samsung Engineering
philosophy. We strive to create a good working culture by recruiting excellent human resources and supporting the development of
employees' capabilities. We strive to create a great corporate culture by recruiting talented employees, supporting their competency
Sustainability Report
development, and providing various welfare programs.
CEO Message
Human Rights Management Pledge to Foster a Culture of Mutual Respect Human Rights Protection Channels Overview
At Samsung Engineering, we are deeply committed to establishing a All employees at Samsung Engineering are required to sign and adhere Employee Reporting Channels for Human Rights Protection
strong foundation for a culture that upholds and respects human rights to the Pledge to Foster a Culture of Mutual Respect. By doing so, we
collectively commit to preventing human rights infringements and
To ensure the protection of human rights for our employees, we have Sustainability Strategy
across all our worksites. We support and comply with globally recognized implemented two reporting channels: “Ethical Management Report” on
standards on human rights and labor, including the Universal Declaration actively practicing mutual respect in all aspects of our work.
our intranet, and “Report an Issue” on our website. Upon submitting
of Human Rights, UN Guiding Principles on Business and Human Rights, a report, employees are provided with a notification that outlines Sustainability Performance
and International Labor Organization (ILO) agreements. Our dedication to Pledge link
the principles for handling their reports, with a strong emphasis on
human rights extends to identifying any human rights risks that may arise maintaining their anonymity. Furthermore, we offer the Hue Counseling
within our business operations, and we have zero tolerance for any form Pledge to Foster a Culture of Mutual Respect Center, which provides mental counseling services to support the well- Environmental
of infringement. To ensure that our employees actively practice human being of our employees.
rights in all their work activities, we require them to abide by our Code of
Conduct and sign the Pledge to Foster a Culture of Mutual Respect. These Social
Site Labor Inspection
documents are made publicly available to stakeholders through our Human Rights Risk Management Process Safety
Sustainability Report. We actively engage in regular discussions and conduct labor risk
To prevent human rights infringement risks and ensure the effective Quality
assessments at both domestic and overseas sites to promote policy
implementation of our human rights policies, we conduct regular Employees
improvements and gather feedback on employee treatment and welfare.
assessments to identify potential risks and perform inspections and Suppliers
In 2022, we organized discussion sessions and labor risk assessments
monitoring activities at our sites on an annual basis. Focusing on the Social Contribution
involving 95 employees at 10 domestic sites and 348 employees at 20
major human rights risks identified through our risk assessments,
Human Rights Mandates within the Code of
overseas sites across 11 countries, which enabled us to identify and
we develop comprehensive mitigation plans, implement necessary
address potential human rights risks within the sites.
Conduct improvements, and continuously monitor our progress.
Governance
Code of Conduct link Site labor inspection process
Human Rights Risk Management Process
Human Rights Mandates within the Code of Conduct Feedback and Appendix
Site due
We respect human rights based on international organizations’ human rights Document Site worker development
• Analyze global guidelines, domestic, and foreign media reports diligence and
protection and labor standards including the Universal Declaration of Human review interview of corrective
Step 1 • Identify risks at each stage by taking risk frequency and assessment
Rights, UN Guiding Principles on Business and Human Rights, and ILO Declaration measures
on Fundamental Principles and Rights at Work. We do not tolerate any actions Analysis seriousness into account
that violate human rights. • Analyze cases of internal/external human rights violation
• We guarantee the labor based on a free will. We ban forced labor deriving from
mental or physical detention including slave work or human trafficking. Supplier Human Rights Risk Management
• We strictly ban child labor in all domestic or overseas sites and do not hire • Design human rights risk assessment
children and teenagers under the age of 15. In case of hiring underaged persons Step 2 • Conduct human rights risk assessment By implementing a dedicated voice of customer (VOC) channel within our
defined by respective national law, we do so by complying with local regulations Assessment • Dispatch inspectors and conduct inspection at high-risk sites Partner Portal for suppliers, we have established an effective system for
and adhering to law of labor relations with an agreement from either a parental • Identify key issues and vulnerable classes reporting unfair transactions, corruptions, and other relevant matters. This
authority or a guardian. We ban underaged persons from engaging in dangerous
or harmful work. channel allows reporters to submit their concerns and receive a response
• Working hours and wages observe national or regional regulations. We observe from the responsible team.
Step 3
lawful standards on the minimum wage, overtime payments, insurance • Draw improvement plans for each risk
Relief Plan
membership, rest, and vacations. • Perform human rights management improvement Supplier VOC reporting process
Establishment
• We do not discriminate employees or applicants based on their gender, race,
nationality, religion, age, disability, and marital status. Assign Receive response
• We guarantee the freedom of association and the right to collective bargaining • Report to the management on required improvements and Submit responsible team from responsible Process
and do not impose disadvantages on the grounds of membership, activities, Step 4
established action plans report (organized by team and take completed
and formation. Monitoring necessary action
• Execute action plans and monitor human rights risks Media Group)
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
37
Employees
Human Rights Training Hiring and Talent Development Talent Development Framework 2022 Samsung Engineering
To foster a culture of sensitivity and enhance human rights management At Samsung Engineering, we share Samsung Group’s firm belief that Directions of Talent Fostering Sustainability Report
among our employees, we conduct regular training sessions focused on “people are the company.” We recognize that individuals with their
human rights. In 2022, we organized an online “Mandatory Employee unique capabilities and potential are the driving force behind progress
Training for Practicing Mutual Respect” which covered important topics in the world. Guided by this principle, we select and employ talented
such as workplace harassment, sexual harassment, improving attitudes individuals through a transparent and fair hiring process.
towards individuals with disabilities, and mental health.
CEO Message
Hiring and Talent Placement Expertise Autonomy Change-Oriented
Achieved 100% employee participation Ensuring a structured recruitment process, we prepare and post Overview
in the 2022 “Employee HR Mandatory
Training (Human Rights Training)” 100 % recruitment advertisements on our Samsung Careers website and
manage the applicant status throughout the process. Additionally, we
Experts in each field
leading innovation
Autonomous learning
for growth at all times
Dynamic organizational
culture that adapts to
utilize an employee work history management system to effectively change Sustainability Strategy
track and manage the professional histories of our employees, allowing
us to make informed decisions regarding talent placement in suitable
positions within the company. Sustainability Performance
Since 2021, we have implemented the Global Human Resource Policy
(GHRP), which focuses on managing the workforce in overseas sites Employee Training Framework Environmental
Pledge to Foster based on their individual roles and job responsibilities, irrespective of
Employee
a Culture of nationality or race. To facilitate the continuous self-development and professional growth of
Code of Conduct Mutual Respect our employees, we have implemented a structured training process. Our
employees are categorized into growth phases, with specific capability Social
reinforcement programs conducted at each stage. In 2022, we dedicated Safety
Talent Hiring Process
a total of 467,547 training hours and invested 3.28 billion KRW to support Quality
Global the ongoing advancement of our employees. Employees
Job
Application Samsung Medical
Suitability Interview Suppliers
Submission Aptitude Checkup
Screening Social Contribution
Test Category Training Purpose Training Program
Enhance leadership
Leadership - Leadership training by class
capabilities required at
training - Leadership Special Lectures
different levels
Employee Training Programs Enhancements in Online Training Fair Performance Appraisal and Compensation 2022 Samsung Engineering
Project Leader Development Program Building on the progress made in 2021, we significantly expanded At Samsung Engineering, we uphold a fair and objective appraisal system Sustainability Report
our online EPC training program in 2022. In addition to the 81 that assesses work performance and capabilities on an annual basis.
The Project Leader Development Program is designed to enhance contents in 2020, we introduced 71 new contents in areas such as This system encompasses two major evaluation categories: performance
the job skills and leadership capabilities required for individuals marketing, project management, procurement, and construction in evaluation and capability evaluation. By incorporating diverse evaluation
serving as leaders overseeing various function. This comprehensive 2021. Furthermore, we added approximately 100 more contents in results, individuals can enhance their capabilities, while the company
program provides practical training in key areas of project execution, 2022, bringing the total to 254. Notably, we placed special emphasis benefits from a broader range of viewpoints to ensure a more equitable
including crucial management aspects in engineering, procurement, on developing industrial and environmental contents to provide our appraisal process.
and construction, as well as effective interface management with CEO Message
employees with expanded learning opportunities in the company’s
other functions. Through engaging in team assignments and mutual new project areas. Directions of Talent Fostering
learning activities, trainees are able to broaden their perspective and
deepen their understanding of their roles as project leaders. In 2022, Overview
Performance Evaluation Capability Evaluation
we operated PM Academy, P/CM Academy, EM training, PCM training,
and CM training programs to train future project leaders.
Evaluation Assess short-term Assess mid/long-term Sustainability Strategy
Criteria performance capabilities growth potential
Leadership Training Program
To cultivate effective leadership within our organization, we have Implement a year-round target Conduct a comprehensive Sustainability Performance
developed a comprehensive training program tailored to meet the achievement management process capability assessment by
Detailed Provide coaching for the achievement combining the annual job
specific requirements of each leadership role within our hierarchical
structure. In 2022, we conducted specialized training courses for new
Description of work goals and personal growth capability assessment and Environmental
Provide immediate feedback upon goal peer-review based on core
team leaders and new group leaders, with a focus on internalizing achievement value structure
their leadership roles and fostering team motivation towards company
Social
direction and innovation. Performance Management Process
Safety
creating synergy in our local business operations. Our training programs evaluation and peer-review Social Contribution
achievement personal growth
are tailored to the unique characteristics of each region, aiming to enhance
the job capabilities of our local workforce. We also provide various Year-round Target Achievement Management Process
opportunities for highly talented individuals, including reassignment to
Step 1 Step 2 Step 3 Governance
the next project site, transfer to a permanent contract, or placement at the
head office, to support their growth as future global managers. Increase of Online Training Satisfaction with Online EPC Job Establish targets Progress Approve and provide
In 2022, we selected and invited high-performing employees from our Contents Training Courses management feedback on goal
Set targets at the
achievement throughout
Appendix
overseas subsidiaries to our head office, where they received training to (Unit : contents) (Unit : %) beginning of the Regularly monitor
year and continuously work progress and the year, providing immediate
deepen their understanding of the company’s changes and innovative assessment and feedback
add new targets as adjust or redefine target
practices. This training aimed to cultivate their development as effective needed if necessary upon goal completion
global leaders. 91.8 91.8
254
90.9 Compensation Process
At Samsung Engineering, we have implemented an individual annual
salary program that takes into account the unique capabilities and the
evaluation results of performance achievements for each employee.
Additionally, we provide various forms of compensation, including job
allowances, individual performance pay, target incentives, performance
81 incentives, project incentives, new project award incentives, innovation
incentives, and more. This approach allows us to reinforce long-term
compensation by differentiating the level of compensation based on role
execution and achievements. Furthermore, our salary for new employees
2020 2022 Overall Application Satisfaction graduating from university is approximately 1.5 times the minimum wage
Satisfaction to Actual with Contents set by law on an hourly rate basis, and we maintain equal pay without
Jobs
discrimination based on gender.
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
39
Employees
Social
Safety
Quality
Employees
Suppliers
Social Contribution
1. The response rate for the employee satisfaction survey is calculated based on the
Governance
number of employees who responded, both in Korea and at our overseas subsidiaries.
(Overseas subsidiaries were not included in the 2022 survey.)
2. Starting from 2022, the survey questions and evaluation criteria were revised, and the Appendix
score for the 2021 survey has been adjusted according to the new evaluation method.
Change Agent Program We have established the Change Agent Program to promote a positive organizational culture. In 2022, 71 change agents conducted 117 activities in their respective teams and projects to improve work culture and foster an active organization.
In-house Discussion We facilitate a variety of discussion sessions, including employee discussions with the CEO and sessions with the HR Team Leader, to provide a platform for executives to actively listen to and address the concerns and suggestions of
Sessions employees from diverse groups, such as working moms, new employees, and new team leaders.
Townhall Meeting Our townhall meetings, hosted by division heads, serve as a communication forum where operational updates of the division are shared with members and various ideas can be exchanged.
Complaint Handling Channel We actively collect employee complaints and address them through online/anonymous channels, such as "HR Complaints" and "Talk to the Employee Representative."
Labor Union We uphold our employees' rights to engage in group negotiations, including salary negotiations and improvements in labor conditions, through the formation of a labor union, voluntary sign-ups, and group agreements.
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
40
Employees
Suppliers
Through our partnership with suppliers, Samsung Engineering has actively implemented fair transaction monitoring and engaged in 2022 Samsung Engineering
cooperative activities to promote mutual prosperity. Our primary goal is to achieve sustainable growth through these collaborative efforts.
We are proud to announce that our commitment has been recognized with the highest rating in the Win-Win Index of Korea Commission for
Sustainability Report
Corporate Partnership for two consecutive years in 2022(2021 results).
CEO Message
Supply Chain Management Framework Supplier Evaluation Process Comprehensive Supplier Evaluation Criteria
Overview
At Samsung Engineering, we have established a Supplier Code of Conduct for our We have implemented a fair and transparent supplier evaluation process Category Evaluation Criteria
suppliers, setting clear standards for their operations. Through comprehensive to select competent suppliers and establish strategic partnerships. To
assessments, we evaluate the environmental and social impact of our operations
Sustainability Strategy
continuously expand our network of suppliers, we actively engage in [Registration Evaluation Conducted annually]
and identify areas for improvement. In 2022, our ESG Committee received public hiring through our online platform, Partner Portal, and provide • Basic capability evaluation: Performance capability (80), financial
updates on our mutual prosperity collaboration plans and actively reviewed risk channels for proposing individual collaborations. The selection of capability (20) Sustainability Performance
management strategies to ensure their successful implementation. The valuable suppliers is carried out based on specific evaluation criteria tailored Detail • Additional evaluation (plus/minus points): Performance quality and
insights provided by the committee are incorporated into our decision-making to each area of operation. Through regular and year-round evaluations engineering cooperation level (±20), ESG evaluation certification (+2), awards and
process, ensuring effective execution of these collaborative efforts. companies penalties (±3)
conducted annually, we assess the risks associated with suppliers and Environmental
encourage their commitment to sustainability management. We also [Year-round Evaluation]
Supplier Code of Conduct identify certain suppliers and provide them with additional support and • Performance quality evaluation (quarterly)
assistance.
• Quality check plan (QCP) evaluation (at the end of the contract)
Social
Our Supplier Code of Conduct was established in 2017 to drive sustainability
management at a global level. It applies to all suppliers, including those Safety
[Registration evaluation]
engaged in engineering, procurement, construction, and services. The Code Quality
• Assess cost competitiveness, design capability, and ability to meet
encompasses the entire scope of sustainability management, such as human quality requirements through pre-qualification (PQ) and survey (due Employees
rights, labor practices, ethics, environment, safety, and health. To ensure diligence) Suppliers
compliance with these principles, we have integrated supplier due diligence Vendors [Performance evaluation] Social Contribution
into our Supplier Code of Conduct. • Project management (80): Order management (25-40) / schedule
management (30-40) / quality management (10-15)
Supplier Code
• Business management (20): Business stability (16) / quality, safety, and
Governance
‘Supplier Code of Conduct ’ link of Conduct
environmental management (4)
Supplier Sustainability Management Framework Shared Growth Supplier Communication Enhancement 2022 Samsung Engineering
Due Diligence of Subcontractor Supply Chain Samsung Engineering’s commitment to achieving shared growth with our To better understand supplier needs and continuously improve fair Sustainability Report
suppliers has been acknowledged with the highest rating in the Win-Win transactions and collaboration for mutual prosperity, we have implemented
We collaborate with Samsung C&T (Construction) to oversee domestic various communication initiatives for vendor, construction subcontractors,
Index by Korea Commission for Corporate Partnership for two consecutive
construction subcontractors. Once they successfully pass the basic and detailed engineering companies.
years in 2022(2021 results). Our comprehensive supplier support program
capability assessment, subcontractors undergo a comprehensive due
covers a wide range of areas, including financial support, technology
diligence process for their supply chain. This process is initiated when Vendors
development, overseas market entry, and recruitment and training.
subcontractors submit their registration documents on the Partner Through the Seongjohwoe, the alliance of Korean Vendors, we facilitate
We also prioritize proactive management of construction payment to
Portal, following our year-round registration process. During the due regular discussion meetings with domestic vendors. These meetings serve CEO Message
ensure timely salary payments for supplier employees. Additionally, we
diligence, we evaluate various aspects, including the subcontractors’ as a platform to listen to their concerns, share suggestions, and foster
integrate shared growth activities into the performance evaluation of our
major business area, main clients, estimated sales, primary construction collaboration. Additionally, we organize procurement seminars to share
executives, encouraging their voluntary engagement in promoting fair Overview
methods, safety practices (such as safety teams), and more. We also vital information about the EPC industry and keep vendors informed of
transactions and cooperation for mutual prosperity.
conduct additional assessments and assign plus/minus points based on market updates for major materials.
their compliance, labor practices, and human rights commitment.
Supplier Support Program Construction Subcontractors Sustainability Strategy
Support External ESG Evaluations for Suppliers We are dedicated to fostering shared growth and enhancing the Our annual Partners Day event, held at the beginning of each year, brings
capabilities of our suppliers. To achieve this, we have implemented together exceptional domestic construction subcontractors. In 2022, we
In addition to our biannual evaluations, we actively support and Sustainability Performance
a comprehensive support program covering various areas, including introduced new awards to acknowledge outstanding performance and
encourage our suppliers in their sustainability management efforts. safety management, culminating in a prize of 30 million KRW presented on
finance, technology, market entry, and recruitment.
We cover the expenses associated with ESG evaluation and consulting, Partners Day. This event serves as a platform to showcase exemplary cases
facilitated by an external ESG evaluator (Ecredible). In 2022, we supported Environmental
and celebrate achievements. Furthermore, we actively seek feedback from
the ESG evaluation of 50 small and medium-sized companies, and we • Providing
zero- major overseas construction subcontractors in six key areas – proposal,
reward suppliers with plus points during the registration evaluation based interest loans Support outcome in 2022
• Offering
loans with • Zero-interest
loans totaling 20.8 engineering, procurement, construction, safety and quality – incorporating Social
on their assessment results. KRW provided to 41 suppliers their suggestions to enhance our processes.
reduced special rates
• Loans
with reduced special rates Safety
• Easing
payment
Operation of Global Partnership Agreement (GPA) Suppliers Financial conditions amounting to 8.9 billion won Detail Engineering Companies Quality
Support • Enabling earlier offered to 27 suppliers To enhance the quality competitiveness of our detail engineering companies and Employees
To establish long-term partnerships and foster collaboration for mutual payment prior to the • Cash
payment to all small and
holiday season promote better communication, our teams conduct regular company discussion
prosperity, we have implemented an incentive program for high-performing medium-sized suppliers Suppliers
• Reducing
contract meetings, technology seminars, and workshops. In 2022, we held approximately
suppliers. Since 2017, we have recognized and classified exceptional suppliers performance bond
• Early
payment of 42.8 billion KRW Social Contribution
made to suppliers 40 discussion meetings and seminars, providing training in various areas such as
as GPA suppliers, providing them with special ratings and corresponding fees
program utilization and sharing of quality issues.
incentives for both proposal and project execution.
Appendix
• Supporting
suppliers
in entering new
overseas markets Support outcome in 2022
Overseas and providing • Assisted 12 suppliers in participating
Market Entry bid participation in 16 projects and new contracts
opportunities to worth 65.7 billion KRW
expand their market
presence
• Operated
10 recruitment programs
and hired six supplier employees
• Organizing
online • Supported
online training courses
and offline job fairs for 385 supplier employees in areas
Recruitment • Providing
online such as business management,
and training programs technology, and language skills
• Supporting
ESG • Provided offline training courses for
Training management 182 supplier employees, including BIM
assessment and and smart plant building program
consulting • Assisted
50 suppliers in undergoing
ESG evaluation conducted by credit
rating firm
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
43
Social Contribution
Aligned with our social contribution vision of “Building a Future Together, Enabling People,” we have implemented significant programs in the areas of 2022 Samsung Engineering
youth education and collaboration for mutual prosperity. In addition, we actively engage in various local community contribution programs that align with
the essence and unique characteristics of our business.
Sustainability Report
In the field of youth education, we prioritize two primary programs: Dream Class and the Stepping Stones of Hope. These programs are designed to support
the education and practical independence of our future generation. To foster collaboration for mutual prosperity, we have introduced a new program
dedicated to supporting vulnerable teenage. In addition, we have implemented Nanum* Kiosks at our office building, offering employees a convenient way
to make donations throughout the day. Furthermore, we actively in engage in local community contribution programs such as Global Hope Library and Eco-
Generation Class. These initiatives extend beyond the borders of Korea and encompass the countries where our projects are located. Through these diverse
support activities, we strive to nurture the development of our youth, equipping them with the essential qualities needed to become the talents of the future. CEO Message
* “Nanum” translates to “sharing” in Korean.
Sustainability Performance
Together for Tomorrow! Enabling People
Environmental
Social
Safety
Quality
Employees
Suppliers
Youth Education Win-Win Cooperation Local Community Contribution Social Contribution
Governance
We support capacity building education and self-reliance for Contribute to the local community near the workplace and raise
Support the socially disadvantaged.
future generations. environmental awareness for future generations. Appendix
Employee Engagement in Social Contribution Decision Social Contribution Activities 2022 Samsung Engineering
-Making Global Hope Libraries Sustainability Report
Since 2022, we have established a process that empowers our Category Contents Social Impact In March 2023, we successfully established Hope Libraries in three schools located
employees to actively participate in every stage of the CSR process, in Bintulu, Sarawak, Malaysia. Through renovation efforts, we transformed the
from generating new project ideas to implementing them. This We provide separate living spaces existing library facilities at each school, and provided approximately 1,500 books
inclusive approach has allowed us to recently launch a suppor t for youth aged 18 to 25 who have along with educational equipment including computers and tablets. To ensure
Hopeful the sustainable and effective operation of these libraries, we are committed to
program for teenage family caregivers, as a part of Samsung’s CSR Steppingstone
outgrown children’s residential homes.
Through personalized 1:1 training, we providing librarian training programs and engaging reading activities for the
initiative to assist socially vulnerable individuals. students. CEO Message
support their practical independence.
Process for Launching New CSR Programs University students, experts, and our Provide children
employees serve as mentors, providing and adolescents Overview
Idea generation Dream-Class training and career guidance to middle living in
Step 1 • All employees are encouraged to contribute their project school students facing challenging challenging
ideas. educational conditions. circumstances Sustainability Strategy
with the
opportunity
Vulnerable
Supported the independence of at- to envision a
Step 2
Project selection Teenage
risk youth who are experiencing social brighter future Sustainability Performance
• Employees participate in online voting to select project. Support
isolation and economic difficulties. and support their
Program
growth towards
becoming future Environmental
NGO collaboration Our Nanum Kiosks at the office talents.
Step 3 • Employee representative joins in evaluating and selecting building enable employees to make Social Contribution Accomplishments
the suitable NGO. easy donations by tagging their
Social Contribution Achievements and Management Social
Nanum Kiosks employee ID cards, contributing 1,000
KRW per tag. Donations have provided (Donation, etc.) Safety
living and education subsidies for six
Program launch and participation Quality
underprivileged children.
Step 4 • Employee representative and all employees join the Employees
Total Donation1) Charitable Donation2) Employee Volunteer Activity Hours 3)
launching event and engage in volunteer activities.
Suppliers
Build libraries in (Unit : 1 million KRW) (Unit : Hours)
Global Every year, we establish Global Hope areas near project Social Contribution
Hope Libraries in countries where our locations for
Donation Matching Grant Program Library projects are located. youth and provide 7,977
1,087
librarian training.
Under our donation matching grant program, we match the contributions 2,190 Governance
made by our employees, effectively increasing the total donation amount. Enhance
Through Eco-Generation Class and 2,576
These collective donations, made by both employees and the company, environmental 2,496
TUNZA Eco-Generation websites, we
are allocated to suppor ting our primar y CSR programs and local offer diverse environmental learning
awareness among Appendix
children and 1,943
community contribution initiatives, further strengthening our overall Eco- content and mentoring programs for adolescents, who
1,891 1,873
social contribution efforts. Generation teenagers in Korea and overseas.
1,300
represent the
Class
future generation,
Donation Approval Process Eco-Generation Class
and build their
2020 2021 2022
environmental
To uphold fairness and transparency in the use of donations, we have leadership skills.
implemented a specific donation policy. This policy prohibits donations that 1) Starting from 2022, we introduced matching funding equal to the amount of employee
donation, resulting in total donation increase of 550 million KRW.
are politically affiliated, intended to secure unlawful benefits, or aimed at Each of our teams have an affiliation
Employee 2) The charitable donation amounts for 2020 and 2021 were adjusted to exclude time donations, leading
exerting influence on a third party. Additionally, we recognize that expenses with a social welfare facility near our
Volunteer to a reduction compared to the 2021 report (2020: 2,600 million KRW, 2021: 2,400 million KRW).
office and engage in regular volunteer
related to national policy influences can pose potential risks from a mid Activities Engage
activities at those facilities. employees 3) The implementation of the Walk and Donate campaign through a mobile app in the first and
and long-term business perspective. Therefore, we diligently manage the second half of 2022 contributed to the significant increase in employee volunteer activity hours.
in social
donation history and amount at the company level. contribution
Employees contribute their steps using
Walk and activities.
a mobile app, and the accumulated
Donate
donations support underprivileged
Program
children.
Step 1 Step 2 Step 3
Prior Donation Post-donation
assessment confirmation assessment Eco-Generation
Class
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
45
CEO Message
Overview
Sustainability Strategy
Sustainability Performance
Environmental
Social
Governance
Appendix
Governance
46 Corporate Governance
50 GSOR : Companywide Operational Baseline Principles
52 Risk Management
55 Ethics and Compliance
58 Information Security
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
46
Corporate Governance
In line with Samsung’s business philosophy of “We will devote our human resources and technology to create superior products and services 2022 Samsung Engineering
thereby contributing to a better global society”, and our slogan to “Engineering Excellence, Delivering Value”, we are constantly refining
our governance structure at Samsung Engineering. We adhere to a management approach that is transparent and responsible, based on a
Sustainability Report
balanced governance structure involving the executive management, our Board of Directors, and shareholders. This is further strengthened
by the independent operation of our Board of Directors, demonstrating our commitment to robust governance practices.
CEO Message
revised to allow directors, including outside directors, to serve as GSOR : Companywide Operational Baseline Principles
the Board Chairman, a role previously reserved solely for the CEO. In Risk Management
Management Outside Director Internal Trading Compensation the Board of Directors meeting held on January 18, 2023, CEO Hong Ethics and Compliance
Audit Committee ESG Committee
Committee Nomination Committee Committee Committee Namkoong was appointed as the Board Chairman through the agenda Information Security
item of “Appointment of Chairman of Board of Directors.”
Il Dong Park Male (Former) Vice President of EXIM Bank of Korea 03/22/2018 03/17/2024 Regulations on the BoD’s Independence
1. On BoD Chairman
Professor, Department of Chemical and Biomolecular Engineering,
Il Moon Male 03/21/2019 03/16/2025 Article 31 The chairman of the BoD is elected among the directors based on the
Outside College of Engineering, Yonsei University
BoD’s resolution.
Directors Professor, Department of Environmental Science and Engineering, Article 27, Paragraph 1 The company maintains three to eight directors, all of
Jung Hyun Choi Female 03/17/2022 03/16/2025
ELTEC College of Engineering, Ewha Womans University whom are elected at the shareholders’ meeting. The number of outside directors
should be no less than three and must form the majority of the total number of
Yong Dae Kim Male Senior Partner at Doul, (Former) Chief Judge of Seoul Family Court 03/16/2023 03/15/2026 directors. The outside directors are elected upon recommendation from Outside
Director Candidate Recommendation Committee.
※ The composition of the Board of Directors outlined above is current as of April 30, 2023.
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
47
Corporate Governance
Professional Expertise of the Board of Directors External Director Training Overview Diversity of the Board of Directors 2022 Samsung Engineering
To enhance the depth of expertise within our Board of Directors, we To ensure diversity within the Board of Directors, we uphold a non-
Attendance Sustainability Report
prioritize the appointment of professionals who specialize in areas such Date Training content discriminator y approach that embraces individuals regardless of
rate
as economics, society, law, and technology as our outside directors. nationality, ethnicity, race, gender, religion, and other factors. This
In March 2023, we further reinforced our commitment to compliance 05/11/2022 - Site visit to Songdo Edison 4 Project principle is reflected in our publicly available documents, such as the
in business management and expanded our dedication to social Corporate Governance Report and Sustainability Report, as part of our
responsibility by appointing a legal expert as an external director. 06/01/2022 - Imminent ESG Revolution: One-month online training dedicated commitment to communicate it to the public.
In line with our commitment to diversity, we appointed Professor
Skill Matrix of Directors - Understanding the Serious Accidents Punishment
Jung Hyun Choi from the Department of Environmental Science and
CEO Message
Act and adherence measures
06/23/2022 Engineering at Ewha Womans University as our first female external
Business Finance & - Compliance training: Responsibilities of outside 100%
Name Technology Law ESG director in March 2022. Furthermore, on March 16, 2023, we welcomed
Management Accounting directors in monitoring compliance
Overview
Yong Dae Kim, a senior partner at Doul, as an external director. These
Hong Namkoong ● ● - Site visit to UAE CF Project (August 15, 2022 -
08/15/2022 appointments, drawing from diverse backgrounds, have allowed us to
August 19, 2022)
expand the expertise and diversity in the fields of environment and law, Sustainability Strategy
Ju Seong Choeng ● ●
- Visit to Environmental Technology Center and enabling the Board of Directors to make well-informed decisions based
05/11/2023
Gun Ho Hyun ● ●
Yongin Sewage Treatment BTO Project on the broad perspective of various stakeholders.
Sustainability Performance
Il Dong Park ● Performance Evaluation and Compensation
Il Moon ● The Board of Directors undergoes regular evaluations to assess Environmental
both their financial and non-financial performance as well as their
Jung Hyun Choi ● ● fulfillment of roles and responsibilities. The evaluation process for
1 2 3 for enhancing the effectiveness of the external director activities and Ethics and Compliance
Prior explanation Regular meetings Meetings for outside determining their reappointment. In accordance with our company Information Security
sessions of Board of with the executive directors policies, the compensation of the outside directors is not tied to
Director Meeting agendas management the evaluation. We maintain their impartial decision-making by not
providing additional compensation based on business performance,
Site visit to UAE CF Project (2022.08) Appendix
4 5 6 beyond their regular salary.
Visits to domestic Provision of training Operation of At Samsung Engineering, we operate a long-term deferred compensation
and overseas sites platforms covering a dedicated Board
compliance, ESG, and program that links the company’s long-term business performance with
support group
other relevant areas compensation. The maximum compensation for directors is determined
and approved through a resolution at the General Shareholders Meeting
Board of Directors Support Group Overview on an annual basis. In 2022, the approved maximum compensation was
10 billion KRW, while the actual compensation paid amounted to 8.9
Department Number Consecutive billion KRW.
of Years of Main Activities
Name Employees Service
Committees Within the Board of Directors Board of Directors Activity Results Auditing Organization 2022 Samsung Engineering
As per our Articles of Association and Board of Directors policies, the Status of Board of Directors Meetings
Composition of the Audit Committee
Sustainability Report
Board of Directors delegates professional authority to six committees
with the aim of enhancing the operational efficiency of the Board. To In 2022, a total of 10 Board of Directors meetings, including regular
In accordance with the transparency and independence standards
ensure independence, all committees, except the Business Management sessions, took place. Throughout these meetings, eight reports were
mandated by the Commercial Act, the Audit Committee comprises three
Committee, consist solely of outside directors. reviewed and 21 agenda items were processed. We are pleased to report
directors who are exclusively outside directors appointed at the General
that the attendance rate for the Board of Directors meetings in 2022 was
Shareholders Meeting.
a remarkable 100%.
CEO Message
Committee Overview ESG위원회 안건 Roles and Responsibilities of the Audit Committee
The Audit Committee plays a crucial role in monitoring, supervising
Name of
Committee
Composition Members Main Roles
Meeting of the
Board of Directors 10 times and providing support to the executive management of the company,
ensuring that they adhere to lawful procedures and make informed
Overview
Outside Conduct audits of the overall work carried out at the company by the Board of Environmental
Il Moon, 1. Appointment of Head of ESG Committee
Director 3 outside Recommendation of outside Directors, CEO, and other relevant parties
Il Dong Park, 2. A
ppointment of committee member responsible for Audit
Nomination directors directors candidates and Request sales-related reports from directors and employees, and investigate
Committee Jung Hyun Choi 03/17/2022 shareholder rights protection
Investi- company work and asset statuses Social
※R
eported during the meeting: ESG business management gation
Il Dong Park, Deliberation and decision- Review accounting-related documents, including financial statements, and
Internal framework and ESG Committee’s annual operation plan
3 outside making on internal assess the audit process and results conducted by the accounting firm
Trading
directors
Il Moon,
transactions between
Governance
Committee ※R
eported during the meeting: ESG strategy framework and key Conduct additional reviews of documents pertaining to the accounting books
Jung Hyun Choi affiliated companies 04/26/2022
activities that were reviewed by the accounting firm, and evaluate the audit outcomes Corporate Governance
Evalua-
Deliberation and decision- tion Assess the operational status of the internal accounting management program GSOR : Companywide Operational Baseline Principles
※R
eported during the meeting: Plans for shared growth and
Jung Hyun Choi, making on maximum 07/27/2022 Risk Management
Compensation 3 outside collaboration Evaluate the effectiveness of the internal audit system
Il Dong Park, compensation of registered
Committee directors Ethics and Compliance
Il Moon directors and compensation- Review the deliberations of the Management Committee and important
10/28/2022 1. Approval of environmental management plan Review Information Security
related polices business matters reported by directors
External Auditors
External auditors are appointed in accordance with the legal requirements
governing the appointment of external auditors. The selection process involves
a comprehensive evaluation conducted by the Audit Committee, considering
factors such as the auditing firm’s scale, proficiency in international auditing,
transparency and independence. Following the evaluation, Samil PwC was once
again selected as our external auditor at the end of 2022, and their appointment
will extend until 2025. Samil PwC keeps the Audit Committee updated on
accounting audit progress through regular and as-needed reporting. To ensure
financial transparency, interactions between the Audit Committee’s auditors
and the external auditors occur without the presence of executive management.
We utilize both face-to-face and written reports to enhance communication.
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
49
Corporate Governance
Shareholders Overview of Shareholder Composition Enhancing Shareholder and Investor 2022 Samsung Engineering
Shareholders are able to take part in critical company decisions by freely Communication Sustainability Report
exercising their voting rights during the General Shareholders Meeting.
Shareholder Participation in Decision-Making Suggestions made by shareholders are incorporated into business
Samsung Engineering maintains a variety of communication channels
for shareholders and investors, providing them with regular updates on
We take various measures to foster shareholder engagement in business policies and operational practices following careful evaluation and our business performance and future plans through quarterly business
decisions and ensure timely information delivery. In 2021, we incorporated approval by both the executive management and the Board of Directors. performance briefings, status updates, non-deal roadshows (NDR), and
an electronic voting process to facilitate shareholder involvement. The conferences.
agenda of the General Shareholders Meeting is actively disclosed through In the transformative year of 2022, navigating the post-COVID-19 CEO Message
diverse channels, while the convening and the outcomes of the meeting Listed on the Korea Exchange landscape, we executed international NDRs in locations such as
Listed Years
are announced on the Data Analysis, Retrieval and Transfer System (DART) (KRX) in 1996
Singapore, Hong Kong, and the UK, and attended various conferences.
– Korea’s electronic disclosure system – as well as our company website. In October 2022, we hosted analysts from domestic and international Overview
Furthermore, we have introduced a written voting process and also promote capital stock 98 billion KRW
stock companies at the Sarawak Methanol Project in Malaysia. These
the delegation of voting rights, thereby further enhancing shareholder initiatives provided a platform to showcase our ongoing business
Total number of shares issued 196 million shares
participation. operations and our environmentally-conscious projects (including Sustainability Strategy
Percentage of shares held by hydrogen production and carbon capture), alongside discussions on our
66.54%
minority shareholders future plans.
Sustainability Performance
Majority shareholders samsung SDI (11.69%)
Activities of the General Shareholders Meetings in 2022
Environmental
IR & Earnings link
Samsung SDI 22,918,426 shares (11.69%)
March 17, 2022 th Regular General Shareholders Meeting
55
- Approval of the financial statement
- Appointment of Il Moon as an outside director Samsung C&T 13,668,989 shares (6.97%)
- Appointment of Jung Hyun Choi as an outside director Social
Shareholding
- Appointment of the Audit Committee’s auditors Samsung Life
- Approval of the directors’ maximum compensation of the Insurance
IR & Earnings
262,852 shares (0.13%)
affiliate (client Governance
January 18, 2023
Extraordinary General Shareholders Meeting accounts)
persons
- Appointment of Hong Namkoong as an executive director Corporate Governance
Samsung GSOR : Companywide Operational Baseline Principles
March 16, 2023
56th
Regular General Shareholders Meeting
- Approval of the financial statement Fire & Marine 435,000 shares (0.22%) Risk Management
- Appointment of Gun Ho Hyun as an executive director Insurance
Ethics and Compliance
- Appointment of Yong Dae Kim as an outside director
- Appointment of the Audit Committee’s auditors National Information Security
- Approval of the directors’ maximum compensation Pension 17,601,099 shares (8.98%)
Shareholding Service
of the Jae Yong Lee (3,024,038 shares, 1.54%) Appendix
majority
shareholders Others Sung An Choi (124,748 shares, 0.06%)
CEO Message
Since 2015, GSOR1) has been the constitution of Samsung Engineering. Structure of GSOR
Overview
GSOR stipulates requirements that all Samsung Engineering employees
Philosophy
in Korea and overseas must comply. We enacted GSOR to achieve the
highest level of project quality in all projects conducted by Samsung L MARKE
OBA TR Sustainability Strategy
Engineering based on the first-class EPC execution capability and to ION GL E
build the fundamental base which aligns top quality performance
CT
T MANAGEM
PU
Sustainability Performance
U
and qualitative growth of company. GSOR consists of five steps from EC
OJ
SR
TAT
Philosophy of Management and to System of Management Operation.
CON
EN
PR
ION
Philosophy of Management presents directions that all employees
First NG Following
T
must follow in their daily course of work. The directions are specified in ERI Environmental
Management Themes, which are objectives that GSOR aims to achieve. Operational IN
E Quality
The Function/Job R&R and Operation Principles define specific Excellence G Growth
requirements that employees must satisfy to achieve the Management
EN Social
PRO
Themes. In particular, Operation Principles provide principles for each
N
work at respective phase of work so that all employees can perform
IO
Governance
CU
AT
EM
their duties based on identical criteria. RE
R
EN C
Lastly, the Management System defines principles that enables GSOR T CLIENT VALUE Corporate Governance
to become Samsung Engineering’s number one management manual GSOR : Companywide Operational Baseline Principles
of quality management system that mandates everyone to abide by, Risk Management
instead of imposing rules that are only recommended. Ethics and Compliance
In November 2022, Samsung Engineering’s business management Themes
structure, founded on GSOR principles, was awarded the ISO 21505 Global Employment Information Security
Professional Personnel Learning Organization Global Ethics
certification, confirming our compliance with globally recognized & Operation
standards.
1) Global Standard Operating Requirements Planning & Execution Strategic Portfolio Engineering based
Appendix
Global Collaboration
by Baseline Management Management
Resource
Principles
Function R&R Job R&R
Operating
Principles
Create the Work Plan the Work Work the Plan
Management
System
Structure of GSOR Compliance Link to the Evaluation
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
51
GSOR
OBA
L MARKE
Sustainability Strategy
Gate G1. G2. G3. G4. G5. G6. G7.
TR
ION GL E
CT
T MANAGEM (Company- Strategy Gate Strategy Gate Bid Gate Contact Gate Planning Gate Re-Baseline Close-Out Gate
PU
U
EC
Sustainability Performance
OJ
SR
TAT
wide) (S-Gate) (ST-Gate) (B-Gate) (C-Gate) (P-Gate) Gate(R-Gate) (CO-Gate)
CON
EN
PR
ION
First NG Following
T
RI
EE Pass Reconsideration Pass Reconsideration Pass Reconsideration Pass Pass
Operational Quality
LV.1 Reconsi- Reconsi- Reconsi-
Environmental
N
Excellence GI Growth deration deration Pass deration Reconsideration Pass
EN
PRO
N
IO
S5. S6.
CU
EM
Stage
E
R
CR
Project Execution Project Follow-up
EN
T CLIENT VALUE Sales Proposal negotiation Project Planning
(HQ/PJT) management
Governance
Corporate Governance
‘First Operational Excellence’ ‘Following Quality Growth’ S1.1. S2.1. S3.1. S4.1. S5.1. S6.1. GSOR : Companywide Operational Baseline Principles
Through EPC Innovation Agenda Proposal planning Contract Form PJT Engineering Maintenance Risk Management
management negotiation execution management
S2.2. organization S5.2. Ethics and Compliance
S1.2. proposal execution S3.2. Procurement S2.2.
Presales
S4.2. Information Security
Accomplishment of management innovation through (Draft Bid-Baseline) Draft Control Project evaluation
PJT Alignment S5.3.
Baseline
Integration Leadership of Project Management S1.3. S2.3. Construction and
S4.3. site management
based on the differentiated EPC competitiveness Agenda evaluation Proposal review S3.3. Draft Project Appendix
Proposal Baseline S5.4.
termination Commissioning
S5.5.
Quality
Substage management
LV.2
(HQ/PJT) S5.6.
• E
mbodiment of the concept starting with E and ending with E
HSE
mphasis on the importance of Constructability through the intersect between
• E
Engineering and Construction loops S5.7.
PJT Control
S5.8.
PJT Inspection/
reporting
S5.9.
PJT personnel
management
Infinite Qualitative Growth Through
S5.10.
Virtuous Cycle Dynamics PJT termination
preparation
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
52
Risk Management
In response to an increasingly uncertain market environment, we have implemented a well-structured risk management system. Utilizing 2022 Samsung Engineering
this robust framework, we proactively identify and mitigate both emergent and long-standing business risks, financial risks, and project-
specific risks. Furthermore, we integrate ESG risk assessment into our approach, ensuring a comprehensive and effective response to these
Sustainability Report
specific challenges.
CEO Message
Screen Projects
Risk Register (Risk Management System)
and Make Bids
ISO 31000 Risk Management
ISO 31000 outlines a risk management framework that operates on
eight fundamental principles: integrated, structured and comprehensive,
customized, inclusive, dynamic, best available information, human and
cultural factors, and continual improvement. Notably, this standard not
only verifies a company’s risk management systems but also assesses its Report to
comprehensive risk management competencies, such as integration with Actions Taken for Emergency Establishing Management
Risk Monitoring Delay
the business management processes and active participation of executive Detected Issues Meeting Countermeasures (CEO&Management
management. Committee)
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
53
Risk Management
Global Information
A total of
1,746 risks have been identified.
execution, we have implemented innovative corporate-level strategies, notably
modularization. Furthermore, module risk workshops involving our employees
and the client are conducted throughout the project execution phase.
and Financial Deployment of Integrated Finance Accounting
Statement Data Management (IFAM) System
Integration Among these, 1,387 risks have been addressed and 359 risks are under active
management. During project execution,
Project Funds
Management and
Formulation of project-specific fund balance management
process
※ Risk management status of 11 ongoing projects as of March 2023:
we identified
Addressed 49 of them, and currently
have 66 risks under management.
total 115 risks
Liquidity Monitoring
At Samsung Engineering, we reinforce our risk management capabilities through customized training programs. These initiatives aim to foster a proactive approach to risk management and establish a corporate culture of voluntary risk Sustainability Report
mitigation. Our curriculum covers diverse areas, from the fundamentals of the risk management process and basic management methods to the understanding of quantitative analysis techniques. In 2022, we conducted six risk management
training sessions.
Governance
Project PCM training course PM Academy & PM training course
Corporate Governance
GSOR : Companywide Operational Baseline Principles
Expert Course Expert risk course (advanced level)
Risk Management
Ethics and Compliance
Semiannual trainings for risk managers & meetings
Cultural Information Security
Settlement
Pre-Risk W/S & Quarterly meetings orientation
Risk Training
Development and Effectiveness of Risk Register (Online Course) Introduction to Samsung Engineering’s key risks and effective Risk Register creation All employees Online
Risk Management System and Risk Dashboard (Online Course) Understanding Samsung Engineering’s risk management system All employees Online
Risk Management Capability Training for Corporate Support General overview of risk management and introduction to Schedule Risk Analysis (SRA) Corporate Support Division Online
EPC Faculty - Schedule Risk Analysis Theoretical and practical aspects of Schedule Risks Analysis (SRA) All employees In-person
Project Introductory Course - Risk Management Risk management process and methodologies New project members In-person
General SI Training - Risk Management Identification and management of major risks during the construction phase General SIs Online
CEO Message
Ethics and Compliance Management Framework Ethics and Compliance Policy Overview
Compliance Management Organization Management Policy Employee Code of Conduct link
Our compliance management organization plays a vital role in At Samsung Engineering, we strive to be a responsible global corporate Samsung Business Principles Sustainability Strategy
supporting daily compliance practices of all employees. Operating citizen. To align with the guidelines set forth by various international
Principle 1. We comply with laws and ethical standards
independently, they provide assistance to compliance supporters in organizations and fulfill our intrinsic roles and social responsibilities as
establishing and implementing diverse policies aimed at mitigating a company, we have internally and externally announced the Samsung
Principle 2. We maintain a clean organizational culture
Principle 3. We respect clients, shareholders and employees
Sustainability Performance
risks and ensuring adherence to applicable laws. Furthermore, we Engineering Code of Conduct, which is based on Samsung’s business Principle 4. We care for the environment, health and safety
appoint compliance managers and compliance officers for each team, management principles. This Code of Conduct serves as the standard Principle 5. We are a socially responsible corporate citizen
overseas subsidiaries, branch offices, and sites, fostering a culture of that all our employees must adhere to when conducting business Environmental
autonomous compliance activities. and performing their work. It encompasses policies and guidelines Samsung Engineering’s Code of Conduct
pertaining to ethics, compliance management, respect for human
Chapter 1
Chapter 2 Social
rights, environmental protection, and other important areas. Basic Ethical Principles for
Integrity
Employees
Compliance
Compliance Committee Governance
organizational CEO 1-1 Compliance 2-1 Maintaining Honor and Dignity
structure and roles The Compliance Committee convenes annually to repor t on the Corporate Governance
1-2 Integrity 2-2 Sense of Responsibility
prog re s s , plans , an d major complian ce is sue s re late d to o ur 1-3 Fair Transactions 2-3 Respecting Each Other GSOR : Companywide Operational Baseline Principles
Chief Compliance compliance management activities. 1-4 Information Security 2-4 Information Security and Risk Management
1-5 Political Neutrality Responsible Asset Management Ethics and Compliance
2-5 Anti-Corruption Information Security
Compliance Team
2-6 Preventing Conflict of Interest
Legal Support System (LSS)
Team leaders,
Each functional Compliance Officer Chapter 3 Chapter 4
heads of global offices Our Legal Support System (LSS) facilitates access to professional legal advice
Respecting Stakeholders Legal and Social Responsibility
Appendix
team for our employees, anytime and anywhere. The system effectively addresses in-
Each project team house demand for legal guidance while minimizing contractual risks through the
Each global office Compliance Manager-level
utilization of standard contracts and pre-contract reviews. 4-1 Human Rights
Manager employees
3-1 Respecting Clients 4-2 Health and Safety
3-2 Respecting Shareholders 4-3 Protecting Environment
3-3 Respecting Suppliers 4-4 Contributing to Local
3-4 Respecting Employees Communities
Chief Suggest the company’s compliance management policies and
Compliance standards as chief officer in charge of operating compliance
Officer programs
Ethics Reporting System Ethics and Compliance Management Activities 2022 Samsung Engineering
CEO Compliance Message We operate an online/offline ethics reporting channel to enable the Ethics and Compliance Audit and Monitoring Activities Sustainability Report
We place great importance on nurturing an reporting of unfair work practices and corruption, both within our
ethics and compliance mindset among our domestic operations and internationally. Ensuring the utmost protection Year-Round Ethics Management Audit Activities
employees. To reinforce this commitment, of reporter identity, all reports are handled with strict confidentially,
we regularly share the CEO Compliance As the team directly reporting to the CEO, the Audit Team conducts
and personal information is meticulously managed in accordance with
Message. The messages delivered in 2022 independent audit activities throughout the year. They oversee
underscored the significance of not only relevant laws and regulations.
ethics and compliance management, including the operation of the
For corr uption-related repor t s, we conduc t thorough internal
achieving our goals but also prioritizing
ethics adherence system, anti-corruption training, investigation of CEO Message
how we achieve them for the sustainable investigations. If corruption is confirmed, appropriate disciplinary
reported cases, and assessment of work processes. The results of the
growth of our company. They emphasized actions are taken based on the severity of the offense and in accordance
the crucial role of compliance in our work, year-round compliance audit and operational audit of all functional
with established regulations. Following the implementation of Overview
highlighting the importance of adhering organizations are reported to the Audit Committee twice a year.
to laws and regulations with a compliance disciplinary measures, we share the outcome and institute preventive
mindset. Moreover, the messages measures, while continuously monitoring for any recurrence.
emphasized the collaborative effort required Sustainability Strategy
to build a unique compliance culture at our Ongoing audits conducted at domestic and overseas sites, as well
Ethics Report Handling Process as overseas subsidiaries and branch offices. Violations, including
company, rooted in mutual trust.
Compliance reported cases, are strictly addressed in accordance with company
Audit policies. System and policy revisions are implemented to prevent Sustainability Performance
recurrence, and case studies are shared through training to
01 Reporting
disseminate lessons learned.
Internalizing of Ethics and Compliance Environmental
• Stakeholders can submit reports through the Ethics Management Inspections aimed at identifying and eliminating unreasonable
We are committed to fostering a strong culture of ethics and compliance website, as well as via email, phone, mail, or fax. Operational
work practices. Identified issues are discussed with the relevant
management among our employees. To achieve this, we employ various • Both
real name or anonymous reporting options are available. Audit teams to develop and implement the improved work processes.
Social
media channels for effective internal communication. This includes
the publication of a monthly compliance magazine and newsletter,
02 Review and Collection
which keep our employees informed about recent compliance matters. Governance
Additionally, we organize special programs and quizzes to foster active Ethics Reporting System link
• Reports
undergo a thorough review process, and those not falling
engagement and deeper understanding of compliance management under the purview of the Audit Team are forwarded to relevant
Corporate Governance
practices. teams. Reports requiring investigation are classified as “collected” GSOR : Companywide Operational Baseline Principles
for further action. Risk Management
Ethics Reporting Ethics and Compliance
System
03 Investigation Information Security
Compliance Management Portal Site
Our Engineering Compliance System (ECS), a dedicated compliance management • Investigations involve gathering facts through internal systems
and conducting interviews with individuals closely involved. The
portal, offers employees comprehensive guidelines and recent case studies to
identity of the reporter is handled with strict confidentiality.
Appendix
support their adherence to compliance standards in their work.
Compliance Audit and Monitoring Preventing Collusion and Corruption for Fair Transaction Ethics and Compliance Training 2022 Samsung Engineering
To effectively identif y and manage significant compliance risks,
Samsung Engineering provides mandator y ethics and compliance Sustainability Report
such as unfair transactions and unfair competition, we conduct Ongoing Management of Competitor Contacts for Fair Transaction
training to all employees. In 2022, we conducted targeted training
annual visits to both domestic and overseas sites, as well as global We are dedicated to preventing collusion risks with competitors through sessions for teams at higher risk of compliance issues.
subsidiaries and branch offices, for compliance system inspections and effective measures that limit employee contact with competitors. In Furthermore, we provide training through compliance guidelines on
training. In 2022, we visited seven overseas subsidiaries and branch unavoidable circumstances where our employees need to engage with risks that may arise in new teams. These guidelines are shared with
offices, three overseas sites, and 21 domestic sites to assess major competitor personnel, we provide them with precautionary guidelines to employees when they are transferred to new teams or deployed to
risks. The findings from these audits are utilized to enhance future ensure the integrity of these interactions. Additionally, our employees are different locations, both domestically and internationally. In 2023, we
audits and drive process improvements. Moreover, we conduct self- required to report such meetings in advance and record the outcomes
CEO Message
are dedicated to further enhancing our training programs, with a focus
assessments to evaluate the compliance mindset and legal knowledge in our competitor contact report system. This ensures transparency and on addressing high-risk areas in greater depth.
of our employees, providing them with compliance knowledge and helps to prevent collusion or any activities resembling collusion.
raising awareness. Additionally, we support the compliance managers Overview
and officers in voluntarily selecting specific risk areas for audits and Implementation of Bid Collusion and Anti-Corruption Guidelines New Training Programs in 2023
implementing corrective measures within their respective teams. In order to proactively manage the risks of bid collusion and corruption
Training Target Sustainability Strategy
in our business operations, we maintain and regularly update bid Category
Course Name Audience
Main Content Period
Major Compliance Audit and Monitoring Activities collusion and anti-corruption guidelines, along with information on
Project Anti-corruption, trade
significant cases and emerging trends, on our Engineering Compliance compliance
Project
secret protection, and Yearly Sustainability Performance
Category Targets Scope Dates System (ECS). This ensures that employees have convenient access to Manager
training subcontracting laws
the required information at any time. Additionally, we conduct regular
Project Anti-corruption, trade
Act on the Protection training sessions to educate employees on relevant topics. Leadership
Project
secret protection, and Yearly Environmental
Yongin, Giheung/ of Temporary Agency Leaders
Hwaseong, Tangjeong, Workers, Improper Advanced Training subcontracting laws
Fair Transaction Process for Suppliers
Cheonan, Pyeongtaek, Solicitation and Graft Act, Training Middle Project Anti-corruption, trade
Domestic
Songdo, Suwon, etc. personal information,
April and We have implemented a fair transaction process to ensure fair and Manager Middle secret protection, and Yearly
Social
Sites September
(11 projects in April and confidential business equitable contracts with our suppliers, guided by the principle of Training Managers subcontracting laws
10 projects in information, donation, mutual trust. We proactively monitor and improve our practices to Anti-corruption, trade
September) internal transaction
prevent any instances of unfair transactions. To foster a culture of Key Site New Project new
secret protection, and Monthly
Governance
process, etc. Hire Training hires
fairness and integrity among our employees and suppliers, we provide subcontracting laws Corporate Governance
Subsidiaries in US, Anti-corruption, easy access to our Business Guidelines on our website and partner GSOR : Companywide Operational Baseline Principles
Global Offices
Saudi Arabia, UAE, India, confidential business May and portal. Risk Management
Thailand, and Branch information, bid collusion, November Compliance Media
office in Mexico, Malaysia etc. Ethics and Compliance
Information Security
Anti-corruption, illegal
Overseas 3 sites in Vietnam, deployment, confidential
November
Sites Malaysia, etc. business information,
information security, etc.
Appendix
Self- Employees working in Knowledge and awareness May and
assessment Korea level October
New purchase
Internal
transactions of 100 Compliance with process October
Transactions
million KRW or more
Monthly Compliance Compliance Notice
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
58
Information Security
At Samsung Engineering, we place a high priority on information security and have implemented a technology and management system 2022 Samsung Engineering
that aligns with global standards. We have dedicated organization responsible for addressing diverse and evolving security threats. Our
commitment to information security includes staying updated on the latest trends, conducting regular security level assessments and
Sustainability Report
continuously improving our systems. In 2022, we obtained ISO 27001 certification, an international standard for information security
management systems. This certification has enhanced the trustworthiness of information security practices internally and externally and
strengthened our overall information security management system.
CEO Message
Information Security Management Framework Management Process Information Security System Overview
Information Security Governance In accordance with our Information Security Policy, we classify and
Information Security Management Process prioritize information assets that require protection. Our security
In March 2022, we appointed a Chief Information Security Officer (CISO) to system is designed to prevent unauthorized external disclosure of data Sustainability Strategy
enhance the capabilities of our information security organization. We also by implementing measures such as restricting unauthorized disclosure
strengthened our information security governance structure, enabling the Step 1 Step 2 Step 3 Step 4
of PC data and employing document encryption techniques. We also
CISO to directly report major information security issues to top management Planning Implementation Management Inspection Sustainability Performance
proactively conduct continuous monitoring activities to detect early
and take necessary actions. signs of security incidents and promptly take preventive measures.
• Laws and • Revision of • Operation of • Inspection
Investment in Information Security System Environmental
Regulations Regulations Security system • SSI inspection
CISO • Samsung Security • Training • Security • Regular To safeguard our vital information assets against internal and external
(Chief Information Security Standards • Implementation Monitoring Inspection threats, we consistently invest in information securit y. In 2021,
Officer) • Internal/External of New Security • Vulnerability • Guidance for Social
Assessment Violators we allocated 3.2 billion KRW, which accounts for 4.8% of our total
Security Issues System
• Simulated Hacking investment in information technology, to strengthen our information
Compliance Information Security • Internal Security • Improvement of
Team Committee Incidents Existing Security
• Employee Public security measures. This investment marked the highest level in the Governance
Relation Activities
• Other Security VOCs System market (construction industr y) for in 2022, as recognized by the
Corporate Governance
HQ Security Information Security Ministry of Science and ICT’s assessment of companies mandated to
Manager Center disclose their information security status. In 2023, we will continue GSOR : Companywide Operational Baseline Principles
Process of Information Security Problem-Solving our investment efforts to protect our critical information assets and Risk Management
• Establish company-wide
publicly share our information security initiatives and the amount Ethics and Compliance
information policy Step 1
Step 2 Step 3 invested in security measures. Information Security
• Oversee response to security Detect & Step 4
incidents 1st Analysis 2nd Analysis
Report Measures
• Provide employee trainings (D+30mins) (~D+2)
(D-Day)
on information security
• Security inspection at offices Appendix
• Facility security management
Simple
• Monitor symptoms of HR
security Incidents Information Incident
Management Corrective
• Personal information security SGSP Security
Team, System Measures
Center
Support Team
Information Security Policy and Activities Internalizing Information Security among 2022 Samsung Engineering
Information Security Policy Employees Sustainability Report
At Samsung Engineering, we adhere to an Information Security Policy Samsung Engineering is dedicated to fostering a strong culture of
rooted in global standard models. This policy undergoes annual reviews information securit y among our employees. To achieve this, we
and updates, considering factors such as domestic and international develop security training materials and conduct regular mandatory
security-related laws and regulations, evolving business environments, security training sessions.
emerging technology trends, and previous incident cases. Additionally, we encourage employees to incorporate information
protection practices in their daily routines by communicating real- CEO Message
life security incidents through various internal channels, including
the intranet, broadcast programs, and newsletters. We also organize
Information Security Policy Structure
campaigns to further promote adherence to information security Overview
Fundamental security principles that are essential for the practices. In cases of serious policy violations, we take appropriate
Policy company and all employees to follow in order to strengthen disciplinar y ac tion and issue company wide announcement s to
our competitiveness reinforce the importance of information security and raise awareness Sustainability Strategy
throughout the organization.
Implementation Detailed and technical standards for the implementation of
Procedure the policy Sustainability Performance
Information Security Training
Practical methods and technical details that provide guidance To enhance the security awareness of all staff members, we conduct
Guideline
on applying the implementation procedure at different sites annual information securit y training and personal information Environmental
protection training. In 2022, we collaborated with the Communication
Team to create a training program titled “Empowering Competitiveness
through Information Security.” This program was broadcasted seven Social
Strengthening Information Security at Sites
times, with a total airing time of 84 minutes, in addition to our regular
To enhance the level of information security at our domestic and training sessions.
overseas sites, we continuously review and revise our securit y Governance
management framework, which encompasses the security system,
Cyber Security Incident Response Process
Corporate Governance
workforce, and policies. In 2022, we conducted thorough inspections GSOR : Companywide Operational Baseline Principles
of major overseas subsidiaries to assess their security status and We have a strong commitment to prevent cyber security incidents Risk Management
identify areas for improvement. These efforts have allowed us to through the implementation of a robust incident response process.
Ethics and Compliance
strengthen our preventive measures against information leakage and This process is supported by 24-hour security monitoring and regular
enhance our response capabilities to cyber-attacks. simulated hacking exercises. We have prepared comprehensive Information Security
CEO Message
Overview
Sustainability Strategy
Sustainability Performance
Environmental
Social
Governance
Appendix
Appendix
61 Financial Performance
62 Materiality Assessment
64 ESG Data
77 External Evaluation and Awards
79 Associations
80 GHG Verification Statement
81 Third Party’s Assurance Statement
82 GRI Standards Index
83 SASB Index
84 TCFD Index
84 UN SDGs
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
61
Financial Performance
2022 Samsung Engineering
Sustainability Report
Consolidated Statement of Financial Position (Condensed)1) Consolidated Statement of Comprehensive Income (Condensed)1)
(Unit: KRW Million) (Unit: KRW Million)
CEO Message
Account 2020 2021 2022 Account 2020 2021 2022
Ⅰ. Current assets 3,135,850 4,442,487 5,947,655 Ⅱ. Cost of sales 6,076,895 6,625,376 8,973,419
Sustainability Strategy
Ⅱ. Non-current assets 1,619,726 1,616,235 1,901,068 Ⅲ. Gross profit 672,279 861,320 1,080,926
Total assets 4,755,576 6,058,722 7,848,723 Ⅳ. Operating profit 361,183 503,288 702,942 Sustainability Performance
Liabilities Ⅴ. Profit before income tax 351,850 529,538 715,715
Ⅰ. Current liabilities 2,961,081 3,852,685 5,013,013 Ⅵ. Profit for the year 252,136 351,071 595,319
Environmental
Ⅱ. Non-current liabilities 212,759 245,519 258,670 Ⅶ. Other comprehensive income 38,505 27,710 21,203
Social
Total liabilities 3,173,840 4,098,204 5,271,683 Ⅷ. Total comprehensive income 290,641 378,782 616,522
Equity Governance
Equity attributable to owners of the parent 1,600,698 2,002,308 2,693,177
Appendix
Ⅰ. Share capital 980,000 980,000 980,000
Financial Performance
Ⅱ. Retained earnings (accumulated losses) 688,893 1,011,607 1,676,536 Materiality Assessment
ESG Data
Ⅲ. Other components of equity △68,195 10,701 36,641
External Evaluation and Awards
Non-controlling interests △18,962 △41,790 △116,137 Associations
GHG Verification Statement
Total equity 1,581,736 1,960,518 2,577,040
Third Party’s Assurance Statement
Total liabilities and equity 4,755,576 6,058,722 7,848,723 GRI Standards Index
SASB Index
1) The financial statements are consolidated financial statements which have been prepared in accordance with Korean International Financial
TCFD Index
Reporting Standards (K-IFRS).
UN SDGs
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
62
Materiality Assessment
2022 Samsung Engineering
Sustainability Report
Pioneering
Economic
Social
Assessment Process New Projects • Differentiated Execution Model Sustainability
3 ● ● Performance
and Markets • Tackling Societal Challenges with Technology Strategy
2016 (201)
(△1)
• Prioritize issues based on the overall assessment analysis results of the double
Step 3)
materiality assessment In response to the declaration
Identify material
issues
• Conduct internal review within Samsung Engineering and seek input from external of net-zero emissions in 2022, We appointed the CISO and
We selected the top six material
experts we consolidated the major acquired the
ESG issues that are highly important
and aligned with our business
environmental issues for 2022 into
“climate change response.” ISO 27001 certification.
transition goals. Information security emerged as
Step 4)
Report material • Present materiality assessment results to the ESG Committee under the Board (2021) Energy reduction and one of our top material issues in line
issues to the of Directors for review (2021) 12 issues (2022) 6 ssues efficiency improvement, and climate
change response
with the digitalization of our project
execution.
Board of Directors
(2022) Climate change response
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
63
Materiality Assessment
Overview
• Client portal site
• Information
Security • Business divisions channels
Clients Sustainability Strategy
• Enhancement
of client satisfaction through quality management • Communication
network of sales offices
• Client
satisfaction surveys
Sustainability Performance
Environmental
• Entry
to new businesses and markets • General shareholders’ meeting
Shareholders • Preemptive
risk management • IR activities (non-deal roadshows and investor conferences)
& Investors • Strengthening
transparency and independence in governance • Corporate
disclosure Social
• Economic
value creation and distribution • Official
website
Governance
Appendix
• Strengthening
safety and health • Healthy
organizational culture and • Employee Council • Anonymous &TALK online bulletin
• Recruitment
and fostering job experts welfare benefits • Labor Union • Broadcast, company newsletter, Financial Performance
Employees • Respect
for Diversity of Employees • Pursuing
common interests between • Employee
satisfaction survey campaign Materiality Assessment
• Fair
performance evaluation and labor and management • In-house-intranet-meetings ESG Data
compensation External Evaluation and Awards
Associations
GHG Verification Statement
Third Party’s Assurance Statement
GRI Standards Index
• Fair
transaction • Partner portal site SASB Index
Suppliers • Strengthening
suppliers’ sustainability management • Online and offline training and support
TCFD Index
• Supplier
support and communications • Regular
meetings and seminars
UN SDGs
ESG Data
The scope of this ESG data is as follows and excludes overseas subsidiaries in the consolidated financial statements. In the future, we will 2022 Samsung Engineering
expand the scope of management according to the order of materiality of the data.
Sustainability Report
Environmental data: Head office and domestic and overseas sites, excluding overseas subsidiaries
※ Other workforce and educational data: including all overseas locations
CEO Message
Category Data Types Pages Category Data Types Pages Category Data Types Pages
Sustainability Strategy
1. GHG Emission Goals 1. Employee Status 22. Employee Satisfaction Rate
Employees 72
2. Employee Environmental Education and Results of
2. Employees by Age 68 23. Use of Childcare Leave Sustainability Performance
Participating in Improvement Activities
5. Energy Consumption 5. Employees by position (overseas) 3. Result of Suppliers’ Sustainability Management Evaluation Social
Environmental
6. Violation of Environmental Regulations 6. Employees by Country 69 1. Social Contribution Performance and Management
Management Local
73 Governance
7. Percentage of Female Employees, Female Managers, Community
7. Waste Generated and Disposed 2. Political Contributions and Membership Fees
Overseas Employees
8. General Waste 8. Average Years of Service by Gender 1. Independence of the Board of Directors Appendix
66
Financial Performance
9. Hazardous Waste 9. Status of Disability Hires 2. Diversity of the BoD
Materiality Assessment
74
10. Water Consumption 10. Employees by Contract Type 3. BoD Meetings ESG Data
Corporate
External Evaluation and Awards
Governance
11. Water discharge and Reuse Employees 11. Workers who are not employees 4. Committee Operation Associations
70
Environmental GHG Verification Statement
1. Status of Environmental Investment 67 12. Status of Hiring 5. Compensation of the Executives and Employees
R&D Third Party’s Assurance Statement
75
1. Safety & Safety Leadership Level at Domestic/Overseas Sites 13. Retirement Rate 6. Shareholder Composition GRI Standards Index
SASB Index
2. S-CAR Participation and Measure Rates, Daily S-Cycle 14. Inspection of On-Site Labor and Management 1. Ethics & Compliance System Management Status TCFD Index
UN SDGs
3. Status of Incident Rate 67 15. Status of Human Rights Grievances and Handled Cases 2. Status of Compliance Audit 75
Ethics and
Compliance
Safety 4. Safety Management Investment 16. Status of On/Offline Employee Grievances Handling 3. Employee Ethics & Compliance Training
71
5. Status of Employee Safety Training 17. Human Rights Education Hours 4. Legal Violations 76
1. Quality Goals 20. Evaluation on EPC Online Job Course 72 3. Information Security Violations
Quality 68
2. Clients Satisfaction Survey 21. Welfare Benefits and Equal Pay Status
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
65
ESG Data
Environmental fines1) KRW million 0 0 0.5 Incinerated with energy recovery ton 59 49 2,363
CEO Message
1) Disclosure of ‘matters related to sanctions, etc.’ in the 56th business report Incinerated without energy recovery ton - - -
Hazardous waste ton 320 897 4,522 10. Water Consumption Social
Waste disposed ton 175,020 196,070 156,128 Classification Unit 2020 2021 2022
8. General Waste 1) When including the water consumption in the commissioning of the Oman Duqum project in 2020, the total water consumption increased GRI Standards Index
significantly, so the figures including the Oman project are written in parentheses for comparison. SASB Index
Classification Unit 2020 2021 2022 2) In the 2022 Bahrain BMP project, seawater consumption was newly added because firefighting water (seawater desalination treatment water) of
the client's existing factory was used for the Hydro Test of the tank. TCFD Index
General waste disposed ton 174,700 195,173 151,606 UN SDGs
Reused Water 1)
ton 138,482 109,677 191,944
Recycled ton 99,367 68,193 96,099
Water Reuse
Water reuse rate % 14 11 20
※ Goals for general waste management in 2022 (Unit : ton)
- Goals for waste disposed : 167,075 - Goals for waste incinerated : 21,832 (Goal for waste incinerated with energy recovery : 21,832, Goal for Water discharge Water discharge ton 836,778 872,682 789,503
- Goals for waste landfilled : 50,213 waste incinerated without energy recovery : 0)
- Goal for waste recycled : 95,030 1) The above reuse amount is equivalent to replacing the water source for on-site spraying in Korea with the effluent from a sewage treatment plant.
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
67
ESG Data
Safety Social
4. Safety Management Investment
1. Safety & Safety Leadership Level at Domestic/Overseas Sites
Category Classification Unit 2020 2021 2022 Governance
Classification Unit 2020 2021 2022
Safety management Safety facility investment KRW 10K 67,380 133,410 63,637
Safety Level at Domestic Sites points 77.6 79.0 77.7
investment expense Appendix
(HQ)1) Safety education & training KRW 10K 5,483 13,330 2,625
Safety Leadership Level at Domestic Sites points 78.1 80.2 79.7
Financial Performance
Safety facility investment KRW 10K 918,014 856,362 938,689
Safety Level at Overseas Sites 1) points - 78.7 79.3 Materiality Assessment
Safety protective gear ESG Data
Safety Leadership Level at Overseas Sites 1)
points - 80.2 81.8 KRW 10K 600,288 623,842 931,644
Safety management investment3)
External Evaluation and Awards
1) Omission of overseas diagnosis due to COVID-19 in 2020 investment expense Safety education & training KRW 10K 17,763 32,545 66,430 Associations
(suppliers)2)
On-Site Diagnosis4) KRW 10K 78,049 94,779 122,804 GHG Verification Statement
Third Party’s Assurance Statement
Others5) KRW 10K 185,253 161,956 325,434
2. S-CAR Participation and Measure Rates, Daily S-Cycle GRI Standards Index
1) Labor cost, department operation cost, etc. not reflected 4) Correction of on-site audit for the direct year to on-site diagnosis SASB Index
Classification Unit 2020 2021 2022
2) Labor cost not reflected 5) Health care expenses TCFD Index
S-CAR Participation1) % 99.4 99.7 98.4 3) Increase in protective equipment investment costs due to the UN SDGs
increase in workers
S-CAR Measure 1)
% 99.7 98.8 99.3
Daily S-Cycle2) points 84.0 81.6 86.1 5. Status of Employee Safety Training
1) Number of on-site potential risks discovered and number of actions taken Classification Unit 2020 2021 2022
2) Prior safety management activities to identify risk factors and implement countermeasures before work
Employee safety management training 1)
persons 153,011 141,114 7,021
1) Due to COVID-19, the cumulative figures for employee participation in online safety training in 2020 and 2021 are included, and online safety
training has not been conducted since 2022
2) In 2022, face-to-face training was re-implemented with the lifting of the ban on gatherings following the mitigation of COVID-19, increasing the
cumulative number of supplier companies' participation.
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
68
ESG Data
6. Workers subject to the occupational safety and health management system Employees 2022 Samsung Engineering
Classification Unit 2020 2021 2022 Sustainability Report
1. Employee Status
Employees 1)
persons 5,280 5,265 5,612
Category Classification Unit 2020 2021 2022
Non-employee workers2) persons 33,732 31,448 41,011
Total Number of Employees persons 5,602 5,622 6,077
Percentage of employees % 13.5 14.3 12.0 Total Number of
Male persons 4,923 4,930 5,323
Employees
Percentage of non-employee workers % 86.5 85.7 88.0
Female persons 679 692 754
CEO Message
1) Refer to the electronic disclosure system data Total Number of
persons 4,743 4,729 4,937
2) Average number of people output per day based on manhour Employees (Korea) Overview
Total Number of
Employees (Korea) Male (Korea) persons 4,191 4,181 4,358
7. DFS Performance Female (Korea) persons 552 548 579 Sustainability Strategy
Total Number of
Classification Unit 2020 2021 2022 persons 859 893 1,140
Employees (Overseas)1)
Items discovered cases 1,113 711 832
Total Number of Sustainability Performance
Employees (Overseas) Male (overseas) persons 732 749 965
Items proposed for engineering cases 209 164 159 Female (overseas) persons 127 144 175
Environmental
Items accepted for engineering cases 90 66 78
1) Based on the number of employees with nationality other than Korean
※ Total employees target for 2022: 6,029
Items reflected in engineering cases 41 57 13
Social
SGR1) cases 0 113 71
2. Employees by Age
DFS standardization cases 0 10 0 Governance
Category Classification Unit 2020 2021 2022
1) Safety Ground Rules
Under 30 persons 362 373 563
Appendix
Employees by age 30s persons 2,685 2,413 2,300
Financial Performance
40s and over persons 2,555 2,836 3,214 Materiality Assessment
ESG Data
External Evaluation and Awards
1) The ratio of the revenue from clients who participated in the survey to the total revenue
1) PL4 (principal)
2) PL3 (senior)
1) The ratio of the revenue from clients who participated in the survey to the total revenue
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
69
ESG Data
Employees
Male persons 1,176 1,217 1,346 Others1) persons 3 3 10 Overview
by position Female persons 28 34 40 Middle East persons 79 80 100
(Korea)
Junior managers2) persons 2,221 2,358 2,492 Americas persons 39 43 49 Sustainability Strategy
Male persons 1,985 2,079 2,166 Europe and Africa persons 9 8 8
Category Classification Unit 2020 2021 2022 1) Includes both mid-level and junior managers Appendix
Total Number of Employees persons 859 893 1,140 Financial Performance
Materiality Assessment
Percentage of overseas managers1) % 4.1 4.0 4.0
8. Average Years of Service by Gender
ESG Data
Percentage of managers out of
% 17.4 16.9 14.1 Category Classification Unit 2020 2021 2022 External Evaluation and Awards
overseas employees2)
Associations
Executives persons 0 0 0 Total Average Total Average Years of Service years 10.4 10.8 10.4
GHG Verification Statement
Male persons 0 0 0 Average Years of Service (Korea) years 11.5 11.9 11.9 Third Party’s Assurance Statement
Female persons 0 0 0 Korea Male years 11.6 12.0 12.0 GRI Standards Index
SASB Index
Mid-level managers persons 2 1 2 Female years 10.2 11.0 11.2
Employees TCFD Index
by position Male persons 2 1 2 Average Years of Service (Overseas) years 4.6 5.0 4.1 UN SDGs
(overseas)
Female persons 0 0 0 Overseas Male years 4.6 5.1 4.1
Junior managers persons 148 150 159 Female years 4.8 4.7 4.0
Female persons 12 14 16
1) (Overseas executives and managers)/ (total executives and managers) *100 2) (Overseas executives and managers)/ (overseas employees) *100
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
70
ESG Data
1) The retirement rate is based on the annual average number of permanent employees of the headquarters in Korea and includes resignation at TCFD Index
the request of employees and retirement. UN SDGs
11. Workers who are not Employees 2) Correction of 2020 figures
15. Status of Human Rights Grievances and Handled Cases 18. Employee Training 2022 Samsung Engineering
Category Classification Unit 2020 2021 2022 Category Classification Unit 2020 2021 2022 Sustainability Report
Number of cases handled by Education & training expenses KRW million 1,103 2,487 3,286
Deliberation Committee on cases 3 7 3
Workplace Harassment
Training education per person KRW/persons 192,060 445,276 540,738
Human Rights Number of human rights grievances
cases 7 10 1
Grievances reported1) Total education hours 1)
hours 265,193 333,964 467,547
and Handled
Number of human rights grievances
cases 7 10 1 20s~30s (20~39) 2)
hours - 164,616 225,733 CEO Message
handled
Eduction hours for male employees hours - 289,760 393,796 Sustainability Strategy
16. Status of On/Offline Employee Grievances Handling Eduction hours for female employees hours - 44,204 73,751
Category Classification Unit 2020 2021 2022 Eduction hours per person hours/persons 46 60 77 Sustainability Performance
Number of offline
cases 392 464 470 Male hours/persons - 59 74
communication sessions
Environmental
Lunch meetings at the HQ cases 43 55 70 Female hours/persons - 64 98
Employee Eduction hours per person by age 20s
On-site meetings in Korea cases 14 16 15
training2) and 30s (20-39)
hours/persons - 59 79 Social
Meetings at overseas sites &
cases 7 7 11 Eduction hours per person by age 40s
global offices hours/persons - 62 80
(40-49)
On/Offline Counseling at SAU Council
Governance
cases 328 386 374 Eduction hours per person by age 50+
Employee Room hours/persons - 57 67
(50+)
communication
Number of online
cases 468 391 338 Proportion of employees receiving Appendix
communication session
regular performance and career % 100 100 100
development reviews3) Financial Performance
VOCs reported on the SAU
cases 340 303 278
Council website Materiality Assessment
Male % 100 100 100
Cases sent to the head of SAU ESG Data
council’s, head of women’s Female % 100 100 100 External Evaluation and Awards
cases 128 88 60
council’s, and SAU council’s
Associations
email account Others % 100 100 100
GHG Verification Statement
Proportion of employees in their 20s Third Party’s Assurance Statement
% 100 100 100
and 30s (20-39)
GRI Standards Index
17. Human Rights Education Hours Proportion of employees in their 40s
% 100 100 100 SASB Index
by age (40-49)
Category Classification Unit 2020 2021 2022 TCFD Index
Proportion of employees aged 50+ by
% 100 100 100 UN SDGs
Organizational age (50+)
Number of participants persons 5,421 5,252 5,549
culture training1)
1) Contractors are excluded from training performance and personnel counts
Number of human rights 2) Eduction hours by age are counted from 2021
hours 3 3 3
Human rights education hours per employee
3) All employees receive a performance and career development review regardless of position, age, or gender
training Completion rate for prevention
% 100 100 100
of sexual harassment training
1) Includes courses on diversity management and communication methods to overcome organization’s discriminatory factors (gender, nationality,
status, age, etc.)
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
72
ESG Data
19. Increase in Online Educational Contents 23. Use of Childcare Leave 2022 Samsung Engineering
Category Classification Unit 2020 2021 2022 Classification Unit 2020 2021 2022 Sustainability Report
Number of online Number of employees eligible for childcare
EPC Online training number 81 152 254 persons 2,293 2,317 2,306
education contents leave
Male persons 2,056 2,074 2,064
20. Evaluation Outcome on EPC Online Job Course Female persons 237 243 242
Category Classification Unit 2020 2021 2022 Number of employees on childcare leave1) persons 78 100 114 CEO Message
Satisfaction rate % 86.4 85.6 91.8 Male persons 33 52 70
EPC Online Job Applicability to work % 86.5 85.7 91.8 Female persons 45 48 44
Overview
Course
Satisfaction rate for Number of employees expected to return to
% 83.0 84.6 90.9 persons 77 97 104
contents work Sustainability Strategy
Male persons 36 43 60
21. Welfare Benefits and Equal Pay Status Female persons 41 54 44 Sustainability Performance
Category Classification Unit 2020 2021 2022 Number of employees returned to work persons 72 90 98
Employee welfare benefits KRW million 109,169 116,208 163,874
Male persons 31 38 54 Environmental
Welfare
benefits Employee retirement pension
KRW million 358,519 411,266 544,369 Female persons 41 52 44
(Cumulative accumulated amount)1)
Number of working a minimum of 12 months
Social
Gender pay gap among executives % 0 0 0 persons 107 48 88
after return to work2)
Equal pay
Gender pay gap among managers2) % 94.7 95.3 95.7
among men Male persons 41 15 37 Governance
and women Gender pay gap among non-
% 101.9 103.1 102.2 Female persons 66 33 51
managers2)
Return rate after leave1) % 94 93 94 Appendix
1) Sum of DB (Defined Benefit) & DC (Defined Contribution)
2) (Average female base salary)/ (Average male base salary) *100 Financial Performance
* Managers: principal (higher than PL4) Male % 86 88 90
※ The gender pay gap is caused by differences in job title and seniority, not by gender. Materiality Assessment
Female % 100 96 100
ESG Data
22. Employee Satisfaction Rate Rate of working a minimum of 12 months after External Evaluation and Awards
% 89 87 92
return to work
Associations
Category Classification Unit 2020 2021 2022 Male % 82 68 86 GHG Verification Statement
Employee satisfaction rate1) points 84 87(64) 65.5 Third Party’s Assurance Statement
Female % 94 100 96
Satisfaction rate GRI Standards Index
Male points 86 88(65) 66.4
(by gender) 1) Changed 2020, 2021 figures due to a change in the data collection method
SASB Index
Female points 69 79(55) 58.5 2) Number of employees who have been working for more than 12 months after returning from parental leave as of the end of the year
TCFD Index
Mid-level managers2) points 92 93(68) 68.7 UN SDGs
Satisfaction rate
Junior managers3) points 84 86(63) 64.0
(by position)
Staffs4) points 75 83(63) 65.1
1) Employee satisfaction survey results are calculated as an average of the three areas of "Enjoyable Work," "Colleagues," and "Proud Company"
due to changes in SCI (Samsung Culture Index) questions and evaluation criteria starting in 2022 (scores in brackets in 2021 are scores
converted to the new calculation method).
2) PL4 (Principal)
3) PL3 (Manager)
4) PL1~2 (Staff & Assistant Manager)
5) The response rate of the survey refers to the percentage of respondents out of total employees in Korea and global offices (For FY 2022,
Domestic sites only)
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
73
ESG Data
Category Classification Unit 2020 2021 2022 Category Classification Unit 2020 2021 2022
Number of suppliers financially number 56 42 57 Total donations 1)
KRW million 2,576 1,943 2,496
Financial supported
support Shared growth fund and loan KRW million 20,768 20,262 29,769 Social contribution donation2) KRW million 1,900 1,318 1,850
support
Donations
Investment in local CEO Message
Technology KRW million 676 625 646
Agreed amount for technology communities3)
development development support KRW million 11 33 Program replaced 1)
support Commercial activities KRW million - - - Overview
Number of construction
Overseas subcontractors entered foreign number 6 14 12 Charity donations KRW million 1,891 1,300 1,873
market entry markets
support
New foreign construction amount KRW million 23,510 146,309 65,672
Charity
donations
Cash donations KRW million 1,812 1,249 1,808 Sustainability Strategy
Hiring support Suppliers’ new hires persons 9 4 6 Management costs KRW million 79 51 65
Supplier Trainees from suppliers2) persons 412 359 567 Hours of volunteering4) hours 1,087 2,190 7,977 Sustainability Performance
training Training expenses for suppliers KRW million 9 9 17
Number of participants4) persons 262 1,231 1,492
Employee
External assessment and consultancy
fees for supplier ESG management KRW million 0 0 37.4 volunteering Environmental
Supporting Employees’ donation rate % 5 26 73
ESG Number of suppliers supported
Management by external ESG management number 0 0 50 Total employee donations KRW million 686 643 617
assessment and consultancy Social
1) Starting from 2022, we introduced matching funding equal to the amount of employee donation, resulting in total donation increase of 550 million KRW.
1) Excluded due to the operation of the ConTech Competition in 2022 (co-hosted by Samsung Engineering, Samsung C&T, and Samsung Heavy Industries)
2) Social contribution donation: sum of the company’s donation to activities including education, environment, social welfare, and culture and
2) In 2022, 567 employees were trained through online training (385) + outsourced training (182), and the number of suppliers was 66. employees’ donation Governance
3) Investment in local communities: operational expenses directly related to the operation of programs
2. Status of Suppliers 4) Volunteer hours and numbers are based on employees in Korea. / The launch of the Walk and Donate campaign via a mobile app in 2022 contributed
Vendors number 4,267 4,375 4,347 2. Political Contributions and Membership Fees Materiality Assessment
ESG Data
Korea number 1,729 1,767 1,687
Classification Unit 2020 2021 2022 External Evaluation and Awards
Asia (excluding Korea) number 939 969 987
Political contributions KRW million 0 0 0 Associations
Americas number 385 398 322
GHG Verification Statement
Europe & Africa number 595 608 620 Membership fees KRW million 774 752 866
Third Party’s Assurance Statement
Middle East & Others number 619 633 731 International Contractors Association of Korea KRW million 381 363 393 GRI Standards Index
Construction subcontractors number 4,849 4,874 5,306 SASB Index
Construction Association of Korea KRW million 213 191 261
Korea number 818 869 977 TCFD Index
Seoul Chamber of Commerce KRW million 103 103 103 UN SDGs
Asia (excluding Korea) number 1,735 1,681 1,861
Americas number 519 482 519 Others1) KRW million 77 95 109
Europe & Africa number 667 598 721 1) Korea Construction Engineers Association, Korea Institute of Registered Architects, Korea Fire Facility Association
Middle East & Others number 1,110 1,244 1,228
BoD meetings Items reported Participation rate % 100 100 100 Materiality Assessment
items 23 26 29
and voted for Compensation Committee ESG Data
Number of people persons 3 3 3
Participation rate % 100 100 100 External Evaluation and Awards
Number of outside Associations
persons 3 3 3
directors
GHG Verification Statement
Number of
counts 1 1 1 Third Party’s Assurance Statement
meetings
GRI Standards Index
Participation rate % 100 100 100
Outside Director Nomination SASB Index
Committee
Number of people persons 5 5 5 TCFD Index
UN SDGs
Number of outside
persons 3 3 3
directors
Number of
counts - - 4
meetings
Number of outside
persons - - 4
directors
5. Compensation of the Executives and Employees Ethics & Compliance 2022 Samsung Engineering
Classification Unit 2020 2021 2022 Sustainability Report
1. Ethics & Compliance System Management Status
Total compensation for top executives KRW million 6,683 3,555 8,553
Classification Unit 2020 2021 2022
Average compensation for top executives KRW million 2,228 1,185 4,277
Cases of legal advice and contract reviews cases 2,215 2,399 2,698
Total compensation for independent directors KRW million 329 341 363
Legal advice cases 787 812 900
Average compensation for independent directors KRW million 82 85 91
Contract reviews cases 1,428 1,587 1,798
CEO Message
Total compensation for employees KRW million 503,786 575,071 615,424
Number of reports to ethical management cases 84 132 149
Average of compensation for employees KRW million 95 110 120 Overview
Corruptions cases 24 39 36
Median of compensation for employees KRW million 92 110 114
Complaints cases 42 45 35
Ratio of average top executive pay to average total Sustainability Strategy
times 15 11 36
employee pay Others1) cases 18 48 78
Ratio of the annual total compensation for
the organization’s highest-paid individual to
Financial losses incurred due to bribery, corruption,
or legal proceedings on anti-competition
KRW million 0 0 0 Sustainability Performance
times 25 19 50
the median annual total compensation for all
employees(excluding the highest-paid individual) 1) Reported unrelated to Samsung Engineering
Category Classification Unit 2020 2021 2022 Compliance audits cases 9 11 7 Governance
Common shares 1)
1 million shares 196 196 196
1) As of December 31, 2021. All shares issued are common shares with no ‘Dual Class Shares’ with differentiated voting rights.
2) Ju Seong Cheong: Appointed on March 18, 2021
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
76
ESG Data
Instances for which fines were incurred cases 1 0 1 Inspection on the webpage weakness of external system times/year 12
Instances for which non-monetary sanctions Mock hacking practice on cyber businesses times/year 1
cases 0 0 0
were incurred
CEO Message
Internal system penetration testing/source code inspection times/year 66
Fines for instances of non-compliance with laws
KRW million 0 0 0
that occurred in the current reporting period DR (Disaster Recovery) training times/year 1
Overview
Fines for instances of non-compliance with Cloud MSP(Manage Service Provider) inspection times/year 1
regulations that occurred in the current KRW million 1 0 0.5
reporting period1) Infrastructure security checks (servers, etc.) times/year 1
Sustainability Strategy
1) May 16, 2019 Fair Trade Commission 「Act on Fair Subcontracting」 Article 22-2 Paragraph 2 (Subcontract Transaction Document Investigation)
Data requested on August 12, 2020 due to partial omission from the list of Suppliers, a fine of 1 million won was confirmed and paid. On
January 03, 2022, at the end of the accounting for the site completion of the Ulsan SDI UT expansion construction, the omission of the 2019 Sustainability Performance
waste permit and permit performance report was confirmed and voluntarily reported to the competent branch office, but was notified of 2. Information Security Training
a fine for not submitting within the reporting period, In accordance with Article 68, Paragraph 3 of the Waste Management Act and Article
66, Paragraph 3 of the Construction Waste Recycling Promotion Act, a fine of 500,000 KRW was confirmed and paid. For details of fines for
Classification Unit 2020 2021 2022
negligence above, refer to the footnote of ‘Violation of Environmental Regulations’ Environmental
The percentage of employees who completed
% 93 100 100
information security training
Social
Commission for Corporate Hosted by the Ministry of Employment and Labor Overview
Partnership, combined Domestic/ Samsung Electronics, Pyeongtaek P3 Green Complex Site
The 2021 Shared Growth Index 2022 Presidential Award for Excellence in Industrial Accident Prevention
Domestic Comprehensive Shared Growth Safety Establishment of "IOT sealing management system" for real-time monitoring of dangerous
/ The grand prize
Assessment, and Fair Trade Agreement gases in wastewater treatment facilities Sustainability Strategy
Implementation Assessment
Hosted by the Ministry of Employment and Labor
Oil & Gas Middle East, a Middle Domestic/ 2022 Ministry of Employment and Labor Award for Excellence in Industrial
Samsung Biologics, Songdo Edison 4 Site
Eastern energy magazine Rank by Safety Accident Prevention
Building and establishing a safe workplace system Sustainability Performance
2022 Oil & Gas Top 25 EPC performance in hydrocarbon sector in
Overseas
Contractors(12th) the Middle East and comprehensive Hosted by Korea Occupational Safety and Health Agency
evaluations on the company including Domestic/ Best Practice Competition on Construction Safety Activities/ the grand Samsung Electronics, Pyeongtaek P3 Ultra pure water Site Environmental
its financials Safety prize Establish a voluntary safety and health system based on a safety and health management
system
Middle East Economic Digest(MEED),
2022 Top 10 EPC Contractors a Middle Eastern economics magazine Hosted by Ministry of Land, Infrastructure, and Transportation Social
Overseas
(8th) Rank based on the project orders in Domestic/ Samsung Electronics, Pyeongtaek P2 & P3 Air pollution prevention Site
2022 Smart Construction Challenge/ Innovation Awards
the MENA Safety Smart safety practices: mobile TBMs, use of drones at heights, heavy equipment safety
management systems, etc. Governance
Engineering News-Record, an
2022 ENR The Top 225 Int'l American construction and Hosted by Samsung Biologics
Overseas Domestic/
Design Firms (54th) engineering magazine. Rank based on Samsung Biologics Safety Management Commendation Samsung Biologics, Songdo Edison 4 Site
overseas revenue
Safety
Identify safety risks and prevent disasters Appendix
Financial Performance
Listed on the Dow Jones Hosted by Samsung EHS Institute
Sustainability Indices (DJSI),
S&P DowJones, Robeco SAM.Rank Domestic/
2022 Samsung Safety and Environment Award/ Excellence Award Headquarters HSE Team Materiality Assessment
based on assessment of sustainability Environmental
Overseas Asia Pacific in the Construction Building HSE Platform, a DT Solution for Preventing and Responding to Serious Accidents ESG Data
in economic, social and environmental
& Engineering sector for the
aspects The 18th Construction Environment Management Awards/ Chairman Hosted by Ministry of Environment & Ministry of Land, Infrastructure, and Transportation External Evaluation and Awards
10th consecutive years
Domestic/
of the Environment and Labor Committee of National Assembly of the Samsung Biologics, Songdo Edison 4 Site Associations
Environmental
Republic of Korea First Korean construction industry to be certified as zero waste to landfill
GHG Verification Statement
Samsung Engineering has been listed on the Dow Jones
Dow Jones Hosted by UAE ADNOC Third Party’s Assurance Statement
Sustainability Indices (DJSI), a global sustainability Overseas/
ADNOC HSE Performance Award/CEO Appreciation ADNOC CF Project, UAE
Sustainability management benchmark by the DJSI Asia Pacific in the Safety GRI Standards Index
Reached 50 million man-hours without an LTI, etc.
Indices Construction & Engineering sector for 10 consecutive SASB Index
years.
Hosted by Saudi Aramco TCFD Index
Overseas/
2022 Saudi Aramco Safety Excellence Awards / Technology Award HUGRS (Hawiyah Unayzah Gas Reservoir Storage) Project, Saudi Arabia
Safety UN SDGs
Apply Smart HSE
We have been a participant in the Carbon Disclosure Project Overseas/ Hosted MEED, the Middle Eastern economics magazine
(CDP), an initiative to disclose business information related 2022 MEED Projects Awards Oil & Gas Sector GCC Winner
CDP Quality SABIC United EO-EG Ⅲ Project, Saudi Arabia
to climate change, since 2009. As a result of the assessment,
the company received a grade of Management B. Overseas/ 2022 MEED Projects Awards Hosted MEED, the Middle Eastern economics magazine
Quality Oil & Gas Sector and Mega Project Sector, Kuwait National Winner KNPC Clean Fuel Project, Kuwait
Current issue date: 3 March 2023 Original approval(s): Current issue date: 28 February 2023 Original approval(s):
Expiry date: 2 March 2026 ISO 9001 - 19 February 2014 Expiry date: 27 February 2026 ISO 14001 - 28 February 2011
Certificate identity number: 10505448 Certificate identity number: 10505174
Overview
Samsung GEC, 26, Sangil-ro 6-gil, Gangdong-gu, Seoul 05288, Republic of Korea Samsung GEC, 26, Sangil-ro 6-gil, Gangdong-gu, Seoul 05288, Republic of Korea
has been approved by LRQA to the following standards: has been approved by LRQA to the following standards:
Sustainability Strategy
This certificate forms part of the approval identified by approval number: 0065787 This certificate forms part of the approval identified by approval number: 0067962
The scope of this approval is applicable to: The scope of this approval is applicable to:
Project management, feasibility study, engineering, design, procurement, construction (civil, architecture, building & steel structure, Project management, feasibility study, engineering, design, procurement, construction (civil, architecture, building & steel structure,
mechanical/stationary, piping, electrical, instrument, fire-fighting), pre-commissioning, commissioning and supervision, mechanical/stationary, piping, electrical, instrument, fire-fighting), pre-commissioning, commissioning and supervision,
transportation and installation of petrochemical, chemical, refinery, gas, industrial, infrastructure, power, environmental, transportation and installation of petrochemical, chemical, refinery, gas, industrial, infrastructure, power, environmental,
metallurgical plant, subsea pipeline, offshore fixed platforms, FSRU, FPSO and FLNG. Design, research and development, metallurgical plant, subsea pipeline, offshore fixed platforms, FSRU, FPSO and FLNG. Design, research and development,
subcontract manufacturing, installation, operation and maintenance of water treatment and waste water treatment. subcontract manufacturing, installation, operation and maintenance of water treatment and waste water treatment.
Sustainability Performance
Environmental
Il-Hyoung Lee Il-Hyoung Lee
________________________ ________________________
Korea Operations Manager Korea Operations Manager
Social
Issued by: LRQA Limited Issued by: LRQA Limited
LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'. LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.
LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or
howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or
liability is exclusively on the terms and conditions set out in that contract. liability is exclusively on the terms and conditions set out in that contract.
Issued by: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom Issued by: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom
Page 1 of 1 Page 1 of 1
Governance
ISO 9001 - Quality management systems ISO 14001 - Environmental management ISO 45001 - Occupational health and ISO 27001 - Information security
systems safety management systems management systems
Appendix
Financial Performance
Materiality Assessment
ESG Data
External Evaluation and Awards
Certificate no.: Rev.: Initial certification date: Project No.: Certificate no.: Rev.: Initial certification date: Project No.: Certificate no.: Rev.: Initial certification date: Project No.: Certificate no.: Rev.: Initial certification date: Project No.:
Associations
GHG Verification Statement
C569271 0 24 November 2022 PRJN-449295 C576851 0 24 November 2022 PRJN-449295 C576852 0 24 November 2022 PRJN-449295 C576853 0 24 November 2022 PRJN-449295
This certificate consists of 2 pages including this page. This certificate consists of 2 pages including this page. This certificate consists of 2 pages including this page. This certificate consists of 2 pages including this page.
This is to certify that the management system of This is to certify that the management system of This is to certify that the management system of This is to certify that the management system of Third Party’s Assurance Statement
SAMSUNG ENGINEERING Co., Ltd.
Samsung GEC, 26, Sangil-ro 6-gil, Gangdong-gu, Seoul, Republic of Korea
SAMSUNG ENGINEERING Co., Ltd.
Samsung GEC, 26, Sangil-ro 6-gil, Gangdong-gu, Seoul, Republic of Korea
SAMSUNG ENGINEERING Co., Ltd.
Samsung GEC, 26, Sangil-ro 6-gil, Gangdong-gu, Seoul, Republic of Korea
SAMSUNG ENGINEERING Co., Ltd.
Samsung GEC, 26, Sangil-ro 6-gil, Gangdong-gu, Seoul, Republic of Korea GRI Standards Index
has been found to conform to the Guidance on Project Management: has been found to conform to the Guidance on Programme Management: has been found to conform to the Guidance on Portfolio Management: has been found to conform to the Guidance on Governance: SASB Index
TCFD Index
ISO 21502:2020 ISO 21503:2022 ISO 21504:2020 ISO 21505:2017
UN SDGs
This certificate is valid for the following scope: This certificate is valid for the following scope: This certificate is valid for the following scope: This certificate is valid for the following scope:
Project Management Governance, Project Sponsor, Pre-project, Initiation, Planning, Programme Sponsor, Programme Management Office, Programme Manager, Evaluation, Needs Assessment, Capability Analysis, Justification, Objectives, Framework, Roles & Overall Governance, Knowledge Management, Talent Management, Roles &
Benefits Management, Scope Management, Requirements Management, Resources Benefits Management, Planning, PMIS (Programme Management Information System), Responsibilities, System, Portfolio Charter, Planning, Assessing, Validating, Maintaining, Responsibilities, Governance, Assessing, Planning, Implementing, Improving,
Management, Schedule Management, Cost Management, Risk Management, Issue Controlling, Risk & Issue Management, Change Management, Quality Management, Stakeholders Management, Evaluating, Optimising. Sustainability and Ethics, Governance of Projects, Governance of Programmes,
Management, Change Management, Quality Management, Stakeholders Management, Resource Management, Schedule Management, Budget & Finance, Stakeholders Governance of Portfolios.
Communication & Reporting, Information & Documentation, Procurement Management, Management, Closure.
Lessons Learned, Closing/Terminating, Post-Project.
Seoul, 24 November 2022 This Certificate is valid until Seoul, 24 November 2022 This Certificate is valid until
for DNV 23 November 2025 for DNV 23 November 2025
Seoul, 24 November 2022 This Certificate is valid until
Seoul, 24 November 2022 This Certificate is valid until for DNV 23 November 2025
for DNV 23 November 2025
DNV Business Assurance Korea Ltd., 18th Floor, Kyobo Building, 1, Jong-ro, Jongno-gu, Seoul, Republic of Korea. Tel.: +82-2-724-8413 DNV Business Assurance Korea Ltd., 18th Floor, Kyobo Building, 1, Jong-ro, Jongno-gu, Seoul, Republic of Korea. Tel.: +82-2-724-8413 DNV Business Assurance Korea Ltd., 18th Floor, Kyobo Building, 1, Jong-ro, Jongno-gu, Seoul, Republic of Korea. Tel.: +82-2-724-8413 DNV Business Assurance Korea Ltd., 18th Floor, Kyobo Building, 1, Jong-ro, Jongno-gu, Seoul, Republic of Korea. Tel.: +82-2-724-8413
Page 1 of 2 Page 1 of 2 Page 1 of 2 Page 1 of 2
ISO 21502 - Project, programme and ISO 21503 - Project, programme and ISO 21504 - Project, programme and ISO 21505 - Project, programme and
portfolio management portfolio management - Guidance on portfolio management - Guidance on portfolio management — Guidance on
programme management portfolio management governance
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
79
Associations
Samsung Engineering complies with Korea’s Political Funds Act that prohibits political contributions, addresses social demands for anti- 2022 Samsung Engineering
corruption and fair transaction, and contributes to industrial and technological developments. In addition, we are aware that expenses
related to policy impacts may become potential risks from a mid to long-term business perspective. Thus, we manage the details and size of
Sustainability Report
donations at the company-wide level.
CEO Message
Construction Safety Managers Association (CSMA) Construction Safety Managers Committee (CSMC) KOSHA 18001 Council Sustainability Strategy
Maekyung SEL Club Construction Environment Association Construction Health Council Sustainability Performance
Seoul Chapter, Construction Association of Korea Korea Plant Industries Association Korea International Trade Association Environmental
Social
Korea Industrial Technology Association Korea Society of Fire Protection Professional Engineers Korea Fire Safety Institute
Governance
Korea Institute of Plant Engineering & Construction Seoul Chamber of Commerce Seoul Chapter, Korea Institute of Registered Architects
Appendix
International Contractors Association of Korea Korea Fair Competition Federation Korea Construction Engineers Association
Financial Performance
Materiality Assessment
Korea Professional Engineers Association Korea Fire Facility Association Korea Engineering & Consulting Association ESG Data
External Evaluation and Awards
Associations
Korea Electrical Contractors Association Korea Electric Engineers Association Korea Information Communication Contractors Association GHG Verification Statement
Third Party’s Assurance Statement
GRI Standards Index
SASB Index
TCFD Index
UN SDGs
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
80
Table 1. Summary of Samsung Engineering, GHG Emissions Report 2022 CEO Message
Tonnes CO2e
Scope of GHG emissions Overview
Domestic Overseas
LRQA Independent Assurance Statement
operations operations
Relating to Samsung Engineering Co., Ltd.’s Report for the calendar year 2022
Category 1 Direct GHG emissions 6,734 27,956 Sustainability Strategy
Terms of Engagement
This Assurance Statement has been prepared for Samsung Engineering Co., Ltd.
Category 2 Indirect GHG emissions from imported energy (Location-based) 15,241 4,535
LRQA was commissioned by Samsung Engineering Co., Ltd. (Samsung Engineering) to assure its GHG Report for the calendar year Sustainability Performance
2022 (hereafter referred to as “the Report”).
The Report relates to direct GHG emissions and indirect GHG emissions. Indirect GHG emissions from upstream transportation -transportation of modules
21,812
Samsung Engineering’s geographical boundary includes operations in the headquarters located at 26, Sangil-ro 6-gil, Gangdong- manufactured by subcontractors in domestic and overseas.
gu, Seoul, research institute, 25 domestic construction sites, 21 overseas construction sites and 3 O&M sites. The main activities Environmental
Category 3
of the organization include construction of civil, architecture, building & steel structure, mechanical/stationary, piping, electrical, Indirect GHG emissions from employee commuting - commuting by buses in domestic. 418
instrument, firefighting and the GHG emissions have been consolidated using operational control approach.
Indirect GHG emissions from business travel - international flights. 9,084 Social
Management Responsibility
Samsung Engineering’s management was responsible for preparing the claim, report and conformity with the ISO 14064–1:2018 Indirect GHG emissions from purchased goods and services - operation of construction
Category 4 157,597
and for maintaining effective internal controls over the data and information disclosed. LRQA’s responsibility was to carry out an equipment by subcontractors in domestic and overseas. Governance
assurance engagement on the Report in accordance with our contract with Samsung Engineering.
Ultimately, the Report has been approved by, and remains the responsibility of Samsung Engineering.
Indirect GHG emissions from use of sold products - operation of O&M facilities in
131,116
LRQA’s Approach
domestic and overseas. Appendix
Category 6
Our verification has been conducted in accordance with ISO 14064–3:2019, ‘Specification with guidance for verification and Financial Performance
validation of greenhouse gas statements’ to provide limited assurance that GHG data as presented in the Report have been Indirect GHG emissions from downstream leased assets - Samsung Engineering (as
3,851
prepared in conformance with ISO 14064–1:2018, ‘Specification with guidance at the organizational level for quantification and lessor)’s leased assets in domestic. Materiality Assessment
reporting of greenhouse gas emissions and removals’. ESG Data
To form our conclusions the assurance engagement was undertaken as a sampling exercise and covered the following activities: Location based and Market based are terminologies from Annex E of ISO 14064-1:2018. External Evaluation and Awards
• visited the headquarters of Samsung Engineering and reviewed processes related to the control of GHG emissions data and
records; Associations
This Assurance Statement is subject to the provisions of this legal section:
• interviewed relevant staff of the organization responsible for managing GHG emissions data and records; and LRQA Group Limited, its affiliates and subsidiaries, and their respective officers, employees or agents are, individually and collectively, GHG Verification Statement
• verified historical GHG emissions data and records at an aggregated level for the calendar year 2022. referred to in this clause as 'LRQA'. LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense Third Party’s Assurance Statement
caused by reliance on the information or advice in this document or howsoever provided, unless that person has signed a contract with
Level of Assurance & Materiality the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or liability is exclusively on the GRI Standards Index
In accordance with our contract agreement, the assurance was conducted at a limited level of assurance at a materiality of 5% for terms and conditions set out in that contract. SASB Index
Categories 1, 2, 3, 4 and 5. The opinion expressed in this Assurance Statement has been accordingly formed. The English version of this Assurance Statement is the only valid version. LRQA assumes no responsibility for versions translated into
other languages. TCFD Index
This Assurance Statement is only valid when published with the Report to which it refers. It may only be reproduced in its entirety. UN SDGs
LRQA’s Opinion Copyright © LRQA, 2023.
Based on LRQA’s approach nothing has come to our attention that would cause us to believe that the GHG emissions for
Categories 1, 2, 3, 4 and 5 disclosed in the Repo rt as summarized in Table 1 below are not materially correct and that the Report
has not been prepared in conformance with ISO 14064–1:2018, except for the following qualification:
• Samsung Engineering does not apply and document any process to determine which indirect emissions are to be included in
its GHG inventory.
Byung-Gil Lim
LRQA Lead Verifier
On behalf of LRQA
2nd Floor, T Tower, 30, Sowol-ro 2-gil, Jung-gu, Seoul, Republic of Korea
LRQA reference number: SEO00001219
Dated: 25 April 2023
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
81
To readers of Samsung Engineering Sustainability Report 2022 Conclusion and Opinion CEO Message
Based on the document reviews and interviews, we had several discussions with Samsung Engineering on the revision of the
Introduction
Report. We reviewed the Report’s final version in order to make sure that our recommendations for improvement and revision
Korea Management Registrar (KMR) was commissioned by Samsung Engineering to conduct an independent assurance of have been reflected. Based on the work performed, it is our opinion that the Report applied the GRI Standards 2021. Nothing Overview
its Sustainability Report 2022 (the “Report”). The data and its presentation in the Report is the sole responsibility of the comes to our attention to suggest that the Report was not prepared in accordance with the AA1000AP (2018) principles.
management of Samsung Engineering. KMR’s responsibility is to perform an assurance engagement as agreed upon in our
agreement with Samsung Engineering and issue an assurance statement.
Inclusivity Sustainability Strategy
Samsung Engineering has developed and maintained different stakeholder communication channels at all levels to announce
Scope and Standards
and fulfill its responsibilities to the stakeholders. Nothing comes to our attention to suggest that there is a key stakeholder
Samsung Engineering described its sustainability performance and activities in the Report. Our Assurance Team carried out group left out in the process. The organization makes efforts to properly reflect opinions and expectations into its strategies. Sustainability Performance
an assurance engagement in accordance with the AA1000AS v3 and KMR’s assurance standard SRV1000. We are providing a
Type 2, moderate level assurance. We evaluated the adherence to the AA1000AP (2018) principles of inclusivity, materiality,
Materiality
responsiveness and impact, and the reliability of the information and data provided using the Global Reporting Initiative Environmental
(GRI) Index provided below. The opinion expressed in the Assurance Statement has been formed at the materiality of the Samsung Engineering has a unique materiality assessment process to decide the impact of issues identified on its
professional judgment of our Assurance Team. sustainability performance. We have not found any material topics left out in the process.
Confirmation that the Report was prepared in accordance with the GRI standards 2021 was included in the scope of the Social
assurance. We have reviewed the topic-specific disclosures of standards which were identified in the materiality assessment Responsiveness
process Samsung Engineering prioritized material issues to provide a comprehensive, balanced report of performance, responses,
ㆍ GRI Sustainability Reporting Standards 2021 and future plans regarding them. We did not find anything to suggest that data and information disclosed in the Report do Governance
ㆍ Universal standards not give a fair representation of Samsung Engineering’s actions.
ㆍ Topic specific standards
- GRI 201 : Economic Performance
Impact Appendix
- GRI 206 : Anti-competitive Behavior
- GRI 305 : Emissions Samsung Engineering identifies and monitors the direct and indirect impacts of material topics found through the materiality Financial Performance
- GRI 403 : Occupational Health and Safety assessment, and quantifies such impacts as much as possible. Materiality Assessment
- GRI 418 : Customer Privacy
ESG Data
As for the reporting boundary, the engagement excludes the data and information of Samsung Engineering’s partners, Reliability of Specific Sustainability Performance Information
suppliers and any third parties. External Evaluation and Awards
In addition to the adherence to AA1000AP (2018) principles, we have assessed the reliability of economic, environmental, and
Associations
social performance data related to sustainability performance. We interviewed the in-charge persons and reviewed information
KMR's Approach on a sampling basis and supporting documents as well as external sources and public databases to confirm that the disclosed GHG Verification Statement
To perform an assurance engagement within an agreed scope of assessment using the standards outlined above, our data is reliable. Any intentional error or misstatement is not noted from the data and information disclosed in the Report. Third Party’s Assurance Statement
Assurance Team undertook GRI Standards Index
the following activities as part of the engagement: Competence and Independence SASB Index
ㆍ eviewed the overall Report;
KMR maintains a comprehensive system of quality control including documented policies and procedures in accordance with TCFD Index
ㆍ reviewed materiality assessment methodology and the assessment report;
ISO/IEC 17021·2015 - Requirements for bodies providing audit and certification of management systems. This engagement UN SDGs
ㆍ evaluated sustainability strategies, performance data management system, and processes; was carried out by an independent team of sustainability assurance professionals. KMR has no other contract with Samsung
ㆍ interviewed people in charge of preparing the Report; Engineering and did not provide any services to Samsung Engineering that could compromise the independence of our work.
ㆍ reviewed the reliability of the Report’s performance data and conducted data sampling;
ㆍ assessed the reliability of information using independent external sources such as Financial Supervisory Service’s DART
and public databases.
※ As of June 2023, Samsung Engineering has not applied sector standards because they are not applicable to the published sector standards.
Samsung Engineering has reported in accordance with the GRI Standards for the period from 1 January 2022 to 31 December 2022
GRI 1 : Foundation 2021 CEO Message
2-20 Process to determine remuneration 47-49 305-62) Emissions of ozone-depleting substances (ODS) -
GRI Standards Index
1) We do not disclose data for 2-30 Collective bargaining agreements under the "We do not
2-21 Annual total compensation ratio 75 SASB Index
305-73) Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air identify the number of labor union members covered by collective bargaining agreements
-
emissions to ensure their autonomy". (Reason for omission : Information unavailable / incomplete) TCFD Index
2-22 Statement on sustainable development strategy 4
Material topics 3. Pioneering New Projects and Markets (GRI 201: Economic 2) We do not disclose 305-6 Emissions of ozone-depleting substances (ODS) because UN SDGs
2-23 Policy commitments 24, 36, 41, 55 Performance 2016) "Samsung Engineering is an EPC company and does not deal with ozone-depleting
2-24 Embedding policy commitments 36-38 substances in its business activities". (Reason for omission : Not applicable)
3-3 Management of material topics 18, 62
3) We do not disclose data for 305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other
2-25 Processes to remediate negative impacts 56 201-1 Direct economic value generated and distributed 9 significant air emissions because "air pollutant emissions from unenclosed construction
2-26 Mechanisms for seeking advice and raising concerns 56 201-3 Defined benefit plan obligations and other retirement plans 72
sites are difficult to measure”. (Reason for omission : Information unavailable / incomplete)
2-27 Compliance with laws and regulations 76 4) We do not disclose data for "201-4 Financial support received from the government"
201-44) Financial assistance received from government - as "Samsung Engineering is carrying out the ammonia national project and is receiving
2-28 Membership associations 79 Material topics 4. Proactive Risk Management (GRI 201: Economic Performance 2016) government support, but it is difficult to disclose as confidential information”. (Reason for
omission : Information unavailable / incomplete)
2-29 Approach to stakeholder engagement 63 3-3 Management of material topics 21, 62
2-30 Collective bargaining agreements1) - 201-2 Financial implications and other risks and opportunities due to
28-29
Material topics climate change
Material topics 5. Fostering Fair Transaction (GRI 206: Anti-competitive Behavior 2016)
GRI 3 : Material topics
3-3 Management of material topics 20, 62
3-1 Process to determine material topics 62-63
206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly
3-2 List of material topics 62 76
practices
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
83
SASB Index
2022 Samsung Engineering
Sustainability Report
IF-EN-250a.1 Amount of defect- and safety-related rework costs Currency There were no cases of defects and safety-related rework costs in 2022.
Structural Sustainability Performance
Integrity & Total amount of monetary losses as a result of legal
Safety IF-EN-250a.2 proceedings associated with defect- and safety-related Currency There were no monetary losses as a result of legal proceedings associated with defects and safety-related incidents.
incidents Environmental
Workforce (1) Total recordable incident rate (TRIR) and (2) fatality
IF-EN-320a.1 % TRIR and fatality rate are announced through Status of Incident Rate (p.67) of this report.
Health & Safety rate for (a) direct employees and (b) contract employees
Social
Number of (1) commissioned projects certified to a third
IF-EN-410a.1 -party multi-attribute sustainability standard and Number There were no projects that were certified by the third party regarding sustainable management in 2022.
(2) active projects seeking such certification
Lifecycle Governance
Impacts of
When launching new businesses, Samsung Engineering’s each project team and related functional divisions put effort to enhance operational energy
Buildings & Discussion of process to incorporate operational-phase efficiency by considering applications of new technology and simulation system. We are actively participating in eco-friendly R&D investments and
Infrastructure IF-EN-410a.2 energy and water efficiency considerations into project technology application. By making sewage treatment facility smarter, we reduced over 10% of electricity cost. With TCO technology in place, we reduced 20% Appendix
planning and design of energy cost. In addition, we predict water use for effective water management and conduct 3R (Reduce, Reuse, Recycle) at the Middle East regions where
water supply is difficult. Financial Performance
As of the end of 2022, the order backlog for the related projects can be illustrated as following. Materiality Assessment
Amount of backlog for (1) hydrocarbonrelated projects
IF-EN-410b.1 Currency - Hydrocarbon-related projects: 16 cases, KRW 12.7 trillion ESG Data
and (2) renewable energy projects
- Renewable energy projects: not applicable
Climate External Evaluation and Awards
Impacts of Amount of backlog cancellations associated with Associations
IF-EN-410b.2 Currency As of the end of 2022, there is no project cancelled.
Business MixC hydrocarbon-related projects
GHG Verification Statement
Amount of backlog for non-energy projects associated Third Party’s Assurance Statement
IF-EN-410b.3 Currency As of the end of 2022, the order backlog for the related projects is as following. Carbon Capture related technology project: 4 cases, KRW 3 trillion
with climate change mitigation GRI Standards Index
(1) Number of active projects and (2) backlog in countries Number,
SASB Index
IF-EN-510a.1 that have the 20 lowest rankings in Transparency As of the end of 2022, there were no active projects in the criteria.
Currency TCFD Index
International’s Corruption Perception Index
UN SDGs
(Total amount of monetary losses as a result of legal
As of the end of 2022, there were no monetary losses as a result of legal proceedings associated with charges of bribery or corruption, and anticompetitive
Business IF-EN-510a.2 proceedings associated with charges of (1) bribery or Currency
practices.
corruption and (2) anticompetitive practices
Ethics
To prevent the risk of collusion among our competitors, Samsung Engineering limits employees from making contacts with competitors. When our
Description of policies and practices for prevention of employees inevitably make contacts with competitors’ employees, we send separate emails to inform them of precautionary items. We require employees
IF-EN-510a.3 (1) bribery and corruption, and (2) anti-competitive to submit reports before and after making contacts with competitors through competitors’ contact reporting system to forbid collusions and activities
behavior in the project bidding processes resembling collusions. To control risks of bidding collusion and corruption during the course of businesses, we provide relevant guidelines on the ECS (Ethics
and Compliance System) where employees can access examples and trends at all times as well as trainings on the topic.
IF-EN-000.A No. of active projects Number As of the end of May 2023, 41 sites in Korea and 31 sites in overseas are in progress.
Activity
IF-EN-000.B No. of commissioned projects Number The number of commissioned projects at the end of 2022 is one.
Metrics
IF-EN-000.C Total backlog Currency As of the end of 2022, total backlog is KRW 17.9 trillion.
CEO Message Overview Sustainability Strategy Sustainability Performance Environmental Social Governance Appendix
84
Category TCFD Recommendations Pages Category Samsung Engineering’s Execution of UN SDGs Pages
CEO Message
a Describe the board’s oversight of climate-related risks and opportunities. 28 Provision of regular medical checkups
Welfare benefits for maintaining health, such as parental leave and care 40, 72
Governance leave
b
Describe management’s role in assessing and managing climate-related
28 Overview
risks and opportunities.
Education/learning support such as Stepping Stones of Hope, Dream Class,
Global Hope Library, etc. 38, 44
a
Describe the climate-related risks and opportunities the organization has
28-29 Support for local manpower training by fostering global manpower Sustainability Strategy
identified over the short, medium, and long term.
Describe the impact of climate-related risks and opportunities on the Guarantee of equal pay for men and women
b 28-29 Appointment of the first female outside director in 2022
47, 72 Sustainability Performance
Strategy organization’s businesses, strategy and financial planning.
Describe the organization’s processes for identifying and assessing climate- Social
a 28 Establishment of 100% renewable energy use target by 2030
related risks. 11, 13, 17, 28
Entering new Energy Transition businesses such as clean hydrogen
Risk
b Describe the organization’s processes for managing climate-related risks. 28 Governance
Management
Systematic talent hiring and educational support
Describe how processes for identifying, assessing, and managing climate- 20, 37-38, 42, 71-73
Inclusive and Diverse Talent hiring
c
related risks are integrated into the organization’s overall risk management.
28 Appendix
Financial Performance
Disclose the metrics used by the organization to assess climate-elated risks
a 17, 28 Establishment of eco-friendly infrastructure through Energy Transition 7, 11, 13 Materiality Assessment
and opportunities in line with its strategy and risk management process.
ESG Data
Metrics and Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas External Evaluation and Awards
b 65 Social contribution activities to support the underprivileged youth
Targets (GHG) emissions, and the related risks. 43-44 Associations
Social contribution programs near by overseas business sites
GHG Verification Statement
Describe the targets used by the organization to manage climate-related
c 17, 28 Third Party’s Assurance Statement
risks and opportunities and performance against targets.
Obtained Zero Waste To Landfill(ZWTL) certification
17, 25, 43-44 GRI Standards Index
Social contribution programs for local communities
SASB Index
Increasing water use efficiency through 3R (Reduce, Reuse, Recycle) TCFD Index
activities UN SDGs
25-27, 66
Wastewater purification and GHG emission reduction through
environmental technology development