Samsung Biologics, a leading contract development and manufacturing organization (CDMO), has experienced significant growth in recent years. Following a 35% revenue increase in 2021, the CDMO reported 96% year-over-year growth in the first quarter of 2022. Amid this revenue growth, Samsung Biologics is investing in increasing its capacity and diversifying its portfolio, constructing new facilities, and expanding its capabilities in mRNA vaccine production and biosimilars.
As Samsung Biologics continues to grow, it’s focusing on strategies for ensuring sustainable practices and reducing emissions across its operations. President and CEO John Rim explained the company’s emphasis on sustainability in a statement announcing the first-quarter 2022 earnings.
“Samsung Biologics’ strong start to the 2022 fiscal year was driven by building momentum around our long-term growth strategy and expanding capacity. Our first-quarter financial performance demonstrates a significant and sustained level of customer demand in our services and capabilities,” said Rim. “Turning to the present and future, Samsung Biologics has also committed to making sustainability a key component of the way we work and engage with our partners and communities. In our mission to build a healthier future for all while creating enduring and sustainable value, we are investing in initiatives to mitigate the risks of climate change in the greater areas we impact.”
This commitment to sustainability is represented in the CDMO’s Energy Management Policy, which outlines targets and strategies for reducing emissions and improving energy efficiency.
In a message announcing the policy, Rim explained: “Samsung Biologics pledges to mitigate the impact of climate change caused by energy use and fulfill its role and responsibility in protecting the environment as a contributing member of society. As a global leading CDMO company, we hereby establish and will actively implement our Energy Management Policy to pursue sustainability.”
Responding to Climate Change
As part of the implementation of its Energy Management Policy, Samsung Biologics established an in-house consultative body tasked with monitoring and reporting on greenhouse gas emissions and other environmental issues. This Environmental, Social, and Governance Committee conducts risk assessments and tracks emissions and energy efficiency performance across the CDMO’s operations to determine whether it’s meeting short-term, medium-term, and long-term goals.
In addition to establishing its internal ESG Committee, Samsung Biologics has committed to providing environmental impact data in line with the recommendations of the Financial Stability Board’s Task Force on Climate-Related Financial Disclosures (TCFD) and the Carbon Disclosure Project (CDP), a nonprofit that manages a global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts.
In 2021, Samsung Biologics was honored at the CDP’s Korea Awards for its implementation of carbon mitigation policies and environmentally friendly management systems. It also received an ‘A’ ESG rating from the Korea Corporate Governance Services (KCGS) and became the first Korean pharmaceutical company to be added to the Dow Jones Sustainability World Index.
Samsung Biologics is involved in several initiatives dedicated to responding to climate change. This includes the Sustainable Markets Initiative, which is focused on building sustainable markets through private sector innovation. The initiative focuses on reforming the global financial system to better incentivize sustainable investment and climate change mitigation efforts.
And the CDMO is taking steps to reduce emissions beyond carbon, reducing air and water pollutants at its plants. This process involves continuous monitoring as well as the utilization of resource-recycling facilities for waste separation and water reuse.
The implementation of this enhanced Energy Management Policy comes as Samsung Biologics continues to grow and the policy aims to ensure minimal environmental impact of this growth.
Samsung Biologics is in the process of constructing its fourth plant in Songdo, South Korea. The plant, which is expected to begin partial operations in October 2022 and full operations by early 2023, will provide 256,000 liters of capacity. The CDMO also recently announced it will soon begin constructing a second Bio Campus in Songdo. In May 2022 it completed a new facility designed to provide drug substance services for mRNA vaccine production.
As Samsung Biologics establishes these facilities, its commitment to environmental monitoring and emissions mitigation strategies will be crucial to minimizing its carbon footprint.
In addition to careful environmental monitoring, Samsung Biologics is focused on installing environmentally friendly equipment at its plants. A Samsung Biologics ESG report issued in 2021 noted that it will install solar power generators and apply eco-friendly refrigerants to new plants. The report also notes that Samsung Biologics facilities are equipped with low-nitrogen-oxide (NOx) burners and that ultra-low-NOx burners will be applied to the new factory boilers under construction. These burners reduce the emission of nitrogen oxides that enhance the greenhouse effect.
While Samsung Biologics continues to pursue a multidimensional growth strategy by expanding facilities and capabilities, its Energy Management Policy has been put in place to ensure that this growth occurs alongside the pursuit of a sustainable future.