SAMSUNG SDI preemptively manages ESG risks that may occur along our supply chains to advance responsible supply chains. We provide the same standard to partners and apply ESG due diligence policy. Furthermore, we also perform risk due diligence on our mineral supply chains to ensure social issues, ranging from environmental pollution to human rights violation, do not occur in the mining process while joining global mineral initiatives along with customers and partners to fulfill our social responsibility in line with international policies. 

ESG Due Diligence on Supplier Code of Conduct 

SAMSUNG SDI conducts ESG due diligence partners of key raw materials and components and provides them with a range of support. In selecting and managing partners, we perform paper-based assessment and due diligence. To ensure transparency and fairness, we established the SAMSUNG SDI Supplier Code of Conduct in reflection of the RBA* Code of Conduct. We also make our partners submit confirmation outlining their commitment to adhere to our Supplier Code of Conduct, driving sustainability management across the entire supply chains. Additionally, we provided trainings and meetings to encourage partners’ voluntary compliance and implementation.

* RBA(Responsible Business Alliance) sets out how businesses should fulfill social responsibility. 

Since 2023, we have performed ESG due diligence on our partners with the help of professionals working at RBA-accredited auditing organizations. We assess our suppliers for their compliance with our Partner Code of Conduct by referencing the standards suggested by the RBA, the RSCI (Responsible Supply Chain Initiative) and such international organizations as the ILO and the ISO* as well as market requirements. In addition to third-party professionals, our ESG personnel from the Procurement Strategy Group also participate in on-site due diligence.

*RBA (Responsible Business Alliance), ILO (International Labour Organization), ISO (International Organization for Standardization)

[ESG Due Diligence on Partners]

SAMSUNG SDI help partners submit their improvement plan and provide necessary support and based on due diligence findings. Partners identified for non-conformities through on-site due diligence are required to submit their improvement plan within one month, and the improvements made are verified through final review. For critical non-conformities related to compulsory labor and child labor, we apply the zero tolerance principle to encourage rigorous compliance for our partners.

[Partner ESG Due Diligence Conducted in 2023]

In 2023, due diligence was performed on 41 partners in Korea and 24 partners overseas (Malaysia, Vietnam and Japan). In 2024, we are making progress on the ESG due diligence plans in Europe, China, the Americas and Korea.

The Principle of Responsible Minerals Sourcing

Samsung SDI includes key minerals for which human rights violation or environmental destruction issues are raised in their mining and sourcing process in our scope of management to ensure we abide by the principle of responsible minerals sourcing. SAMSUNG SDI disclose the source of minerals in its supply chain by using forms like CMRT(Conflict Mineral Reporting Template and EMRT(Extended Minerals Reporting Template) from RMI (Responsible Minerals Initiative). Additionally, we ensure that all our partners source minerals exclusively from smelters and refiners that are conformant with the RMI’s RMAP.

*RMI: Responsible Minerals Initiative; more than 500 companies are members, helping them source minerals with responsibility and comply with regulations in conflict-affected and high-risk areas. 

*RMAP: Responsible Minerals Assurance Process; a program audited and certified by RMI to ensure responsible mineral sourcing in the supply chain. RMAP meets international regulatory requirements such as EU Council Regulation and the US Dodd-Frank Act. 

SAMSUNG SDI conducted third-party due diligence on our supply chains of minerals including cobalt, nickel, and lithium that are consumed as key battery raw materials. Between 2022 and 2023, due diligence was completed on three cathode suppliers, three precursor suppliers, and three smelters & refiners. According to due diligence findings, none of the minerals we use were sourced from mines at increased risk for human rights violation and environmental destruction. Meanwhile, some non-conformities were identified in risk management policy, so we provided guidance in implementing improvement plans. In 2024, we plan to expand third-party due diligence to include mining areas based on the results verified through due diligence.

Joining Responsible Minerals Global Initiatives

SAMSUNG SDI proactively engages global initiatives in addition to RMI to bolster sustainability management. Since 2019, we have participated in ‘Cobalt for Development’ project to improve working conditions and communities in the vicinity of cobalt mines in the Democratic Republic of the Congo. In March 2021, SAMSUNG SDI became the first in the battery industry to call for moratoriums on ‘deep seabed mining (DSB)’ in conjunction with BMW, Volvo and Google to protect the marine ecosystem. 

[Responsible Minerals Global Initiatives SAMSUNG SDI joined]

In addition, SAMSUNG SDI is proactive engaged in ESG activities by participating in global initiatives such as RE100, UNGC and GBA.