Samsung’s compliance committee to up ESG monitoring with factory site visits

A rendering of Samsung Biologics Co.’s Songdo Campus in Incheon [Photo provided by Samsung Biologics]

Samsung Group’s Compliance Monitoring Committee will directly visit production facility construction sites of affiliated firms in a move to strengthen its environmental, social, and governance (ESG) monitoring efforts.

The inspection list includes Samsung Biologics Co.’s Songdo Campus in Incheon and Samsung Electronics Co.’s new semiconductor factory under construction in Pyeongtaek, Gyeonggi Province.

The committee - launched in 2020 - is tasked with overseeing Samsung Group’s adherence to laws and regulations.

According to sources on Sunday, Samsung Electronics and the Compliance Monitoring Committee are currently in discussion regarding the timing and locations of the visits.

The Samsung Biologics factory is considered a highly probable candidate for the first construction site visit by the committee.

Samsung Biologics is investing 7.5 trillion won ($5.73 billion) to establish a second campus by 2032. Samsung Biologics, which is regarded as a future core growth driver for Samsung Group, gained attention when Samsung Electronics Chairman Jay Y. Lee attended the opening ceremony of the company’s fourth Songdo plant in October last year.

Samsung Display’s new headquarters that is under construction in Yongin, Gyeonggi Province, is also considered as a potential site for the inspection.

Recently, three workers at the construction site were involved in an accident resulting in a fall, prompting the police and labor authorities to launch an investigation.

The committee is also considering a visit to the construction site of Samsung Electronics’ new Pyeongtaek campus. The site plans to construct a total of six production lines by 2030.

The committee is reviewing the possibility of holding regular meetings at each construction site to institutionalize on-site visits. Until now, monthly meetings have been held at Samsung Life Insurance Co.’s Seocho Tower in Seoul.

The committee’s move expands its role beyond Samsung Electronics into other Samsung Group companies. The committee currently operates based on agreements with seven major subsidiaries, including Samsung Electronics, Samsung C&T, Samsung SDI, Samsung Electro-Mechanics, Samsung SDS, Samsung Life Insurance, and Samsung Fire & Marine Insurance.

It also signifies the committee’s intention to strengthen ESG monitoring, which marks the key focus of its second cycle that started last year.

“I believe vitality has been injected into the relationship between the committee and Samsung, and we will expand our role accordingly,” said Committee Chairman Lee Chan-hee.