Sustainability in Supply Chain > Environmental Health & Safety and GHG Emissions Management
Risk Assessment and Management of Our Suppliers
Amendment to the basic transaction agreement for suppliers
We provide suppliers with a list of our controlled substances, which includes two prohibited substances and nine restricted ones, along with their respective handling criteria.
If a supplier is found to be responsible for a significant violation, Samsung Electronics reserves the right to partially or fully terminate the supplier contract to avoid any legal issues.
Risk assessment for suppliers
We evaluated the accident prevention capacity of our suppliers in the 2023 comprehensive EHS capacity evaluations and reflected the results in the supplier selection process.
Right to Work Suspension System
In 2023, we aimed to broaden supplier participation in the work suspension system and analyze the root causes of risks, as well as to raise standards in on-site risk assessments. To achieve this, we expanded the Research Group for the Right to Work Suspension to include permanent suppliers. We then applied the system to 54 companies spanning seven industries.
Environment and safety risk management
We help our suppliers identify and eliminate risk factors through the operation of the right to work suspension system, risk assessment specialist training course, and audits on the results of work risk assessments. Through the risk assessment specialist training course, 1,497 employees received training to grow into experts capable of dealing with risk factors in 2023.
Moreover, we carried out a series of risk assessment audits on suppliers to evaluate and improve their capacity to identify and address potential work-related risks, thereby preventing serious disasters. After auditing 947 primary suppliers (498 for DX Division, 449 for DS Division) in 2023, we confirmed that overall were independently working to identify and resolve risk factors. For 107 suppliers(46 suppliers for DX Division, 61 suppliers for DS Division) who showed weaker performance in risk assessments, we provided tailored consultation services to help bridge knowledge gaps and build their capacity.
Disseminating best practices
Supplier Safety Management Day for suppliers
DS Division held a Supplier Safety Management Day for suppliers aimed at improving their safety capabilities. The convention included reviewing their activities, sharing knowledge, and discussing best practices for safety in various fields (▲Excellence in site safety management ▲Prescribing safety assessment [PSA] and process hazard analysis [PHA] activities, and ▲Behavior-based safety [BBS]). We also held special lectures, presented awards, and conducted other activities designed to help suppliers establish a robust safety culture and build safer working environments.
EHS Innovation Day for suppliers
DX Division hosts its Environmental, Health, and Safety (EHS) Innovation Day to bolster our suppliers’ environment and safety capabilities. This competition allows suppliers to showcase their independently developed best practices. The 2023 event, held at Samsung Electronics Vietnam Thai Nguyen’s (SEVT) Hanoi office for our Vietnamese suppliers, provided an opportunity to highlight challenges and share solutions. The top five companies presented their improvements through presentations, while other case studies also presented on-site showcased opportunities for voluntary benchmarking.
Health and wellness centers for our suppliers
We operate health and wellness centers at each of our business sites for our suppliers. At these centers, we offer 1:1 health consultations and personalized physical exercise programs to help employees prevent brain and cardiovascular diseases and musculoskeletal disorders. In 2023, the Health and Wellness Centers for Our Suppliers backed a total of 4,565 programs.
Comprehensive medical examinations for our suppliers
We offer comprehensive medical examinations for our suppliers to our resident suppliers’ employees aged 50 and older to help prevent brain and cardiovascular diseases. In addition to legally required examinations, we provide additional check-ups including ECG and HS-CRP. In 2023, a total of 2,502 employees benefited from this service.
Environment and safety academy for our suppliers
We offer environment and safety training courses at the Environment and Safety Academy for DS Division suppliers in Giheung since 2019 and Pyeongtaek since 2022.
As of 2023, our academies in the South Korean cities Giheung/Pyeongtaek/Cheonan have supported the training of 206,780 people through a total of 15 courses, including BBS specialist training and job certification courses. We strive to expand these courses to meet the needs of suppliers, improve their work skills, and provide training for their own autonomous safety systems.
Supplier CEOs On-Talk
We host CEOs On-Talk sessions to raise awareness of safety culture among our suppliers’ CEOs. These sessions encourage dialogue on accident prevention and encourage participants to realize positive changes in their workplaces. We also arrange seminars with external experts and hold monthly virtual meetings with DS Division supplier CEOs. These meetings serve as a platform to share recent accident analyses, updates on DS Division environment and safety policies, industry-specific accident data, and to award good practices of safety embedded in corporate culture. Additionally, we value suppliers’ voices and maintain open communication, demonstrating our commitment to continuous engagement.