SAMSUNG SDI operates the ESG Due Diligence on Partners scheme to foster a responsible supply chain environment. Through this
scheme, we preemptively manage ESG risks across the areas of safety, environment, ethics, and human rights that may arise within our
supply chains. We also provide training on the latest legal and regulatory developments concerning labor, environment, and other issues,
along with compliance guidelines and case studies, supporting our partners in faithfully fulfilling their social responsibility. Furthermore,
we perform ESG due diligence on partners in the mineral supply chains to ensure that no social issues such as environmental pollution or
human rights violations occur during the mining process, and actively participate in global responsible minerals sourcing initiatives
together with our customers and partners.
Our ESG risk review and improvement activities undertaken through ESG Due Diligence on Partners are planned, executed, and
completed under the management responsibility of our leadership, with regular reporting to top management through the
Sustainability Management Council. The operational results of ESG Due Diligence on Partners are also reflected in setting the annual
goals of the responsible executive(head of the Procurement team) and are managed accordingly.
SAMSUNG SDI has established and operated the SAMSUNG SDI Supplier Code of Conduct by reflecting the global social responsibility standards set out in the RBA(Responsible Business Alliance) Code of Conduct, we require our partners to submit a confirmation of compliance, pledging adherence to the code, to promote sustainability management across the entire supply chain. The Supplier Code of Conduct applies to all companies within the supply chain. Based on this, supply chain risks are systematically managed through education and support, risk assessment and identification, monitoring, and improvement activities—from the partner selection stage to the termination of business relationships. Moreover, we updated the Supplier Code of Conduct to reflect the latest changes made to the RBA Code of Conduct and the key requirements of customers and other stakeholders and have provided trainings, meetings, and notifications on the amended Code of Conduct to encourage partners' voluntary compliance and implementation. We also strive to raise awareness and communicate our policies among internal and external stakeholders, including customers, investors, leadership, and the procurement department.
Based on global regulations and internationally recognized standards, SAMSUNG SDI has established a supply chain due diligence policy for responsible supply chain management. Under this policy, SAMSUNG SDI strictly prohibits violations of the Supplier Code of Conduct and the use of minerals that pose risks as specified in its Responsible Mineral Sourcing Policy. In addition, through the operation of a due diligence process, SAMSUNG SDI seeks to prevent, mitigate, and remediate negative social and environmental impacts within the supply chain, thereby establishing a sustainable supply chain.
SAMSUNG SDI endorses and adheres to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-
Affected and High-Risk Areas. We strictly ban the use of minerals sourced in a manner that may cause adverse social and environmental
impacts, including funding armed groups, serious human rights violations, health and safety risks, and environmental destruction.
Accordingly, SAMSUNG SDI established the Responsible Mineral Procurement Policy to procure minerals in a sustainable and ethical manner and to promote responsible procurement practices across the supply chain.
This policy applies to conflict minerals such as tin, tantalum, tungsten, and gold mined in conflict-affected areas, as well as responsible
minerals used in battery production, including cobalt, nickel, lithium, manganese, graphite, and mica, which may have significant
negative social and environmental impacts.
To strengthen the implementation of this policy, SAMSUNG SDI requires all suppliers of raw and subsidiary materials to sign and submit a
pledge of compliance. We also publicly disclose the policy through our website to partners, customers, employees, and all other
stakeholders. Additionally, we provide annual online and offline training sessions to suppliers and internal related departments to ensure
full understanding and implementation of SAMSUNG SDI’s policies in their daily operations.