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Sustainability
in Supply
Chain

Samsung Electronics is striving to embed considerations for social and
environmental responsibility throughout its supply chain supporting
suppliers in improving their business competitiveness as well as their
labor and human rights, environmental, health and safety standards.

“Samsung Electronics tries to minimize the
possibility of risks that exist throughout the
supply chain by requiring our purchasers
to comply with the Global Purchasing Code
of Conduct and suppliers should adhere to the
Supplier Code of Conduct.

We also fulfill mutual cooperation with
suppliers to conform to sustainable
and responsible purchasing practices.”

- Jae-Hoon Um, Executive Vice President,
Head of Partner Collaboration Center, DX Division -

“Samsung Electronics is working to make its
semiconductor supply chain ecosystem more
sustainable, growing together with our
suppliers based on a philosophy of fairness,
openness, and mutually beneficial cooperation.

In addition to supporting supply chain
competitiveness, we promote a range of
mutually beneficial activities to strengthen the
semiconductor ecosystem. We operate a
responsible supply chain covering various ESG
areas, including labor and human rights, the
environment, and health and safety.”

- Hyun-Ki Ji, Executive Vice President,
Head of Partner Collaboration Center, DS Division -

Supply Chain Management

Working together with our suppliers

From selection
to operation,
management and
evaluation of suppliers

ESG Audit and Capacity-Building

To ensure our suppliers comply with the law and fulfill social responsibilities

Conscious of the scale of impact our operations and those of our suppliers have in the society at large,
we work with our suppliers to ensure we can strengthen our business competitiveness all the while increasing our sustainability performance.

Supplier Code of Conduct

Samsung Electronics integrates any updates to the RBA* Code of Conduct and global norms into the Supplier Code of Conduct, which is then shared with our suppliers for mandatory compliance. This is enforced through contract obligations with our suppliers and an annual compliance pledge.

We also provide the Supplier Code of Conduct Guide so suppliers can autonomously comply with the code and conduct ESG management practices. Suppliers must cooperate when Samsung Electronics conducts due diligence or requests relevant data, which includes on-site visits to evaluate compliance with the Supplier Code of Conduct.

* Responsible Business Alliance (RBA) is an industry coalition dedicated to advancing corporate social responsibility in global supply chains.
ESG Audit
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Self-Assessment
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On-Site Audit
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Third-Party Audit
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Monitoring Progress
on Improvement
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Partner
Collaboration

How we grow with our suppliers

We Buy Value, We Pay Trust. This is our procurement vision, and it drives our efforts for our suppliers' sustainable growth.
Such efforts allowed us to become the first Korean company to receive the highest grade for 12 consecutive years
in the ‘2023 Shared Growth Index Evaluation’ selected by the Korea Commission for Corporate Partnership.

*Note: The Act on the Promotion of Mutually Beneficial Cooperation between Large Enterprises and Small and Medium Enterprises aims to resolve
polarization issue between large enterprises and small and medium enterprises in Korea. Under this act, the Korea Commission for Corporate
Partnership evaluates the level of such a cooperation. The ‘Shared Growth Index’ evaluates factors as strengthening competitiveness of and
collaborating with supply chain, and fair trade practices.

Competitiveness of our suppliers

Environmental Health & Safety
and GHG Emissions Management

The first step toward incorporating
sustainability in products and
realizing clean production

Development and clean production of products with environmental considerations (e.g., high-energy efficiency and use of recycled materials) cannot happen without support for the supply chain. At Samsung Electronics, we are working with our suppliers to manage our environmental impact, reduce the production of harmful substances, improve health and safety, and handle grievances.

Responsible
Minerals

Responsible mining and
transparent management

Responsible minerals are minerals related to various issues such as child labor, human rights, and environmental issues
in Conflict-Affected and High Risk Areas. We strive to eradicate human rights violations, such as child labor and sexual violence,
during the mining process and to protect the health and safety of miners.

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