Samsung Biologics, one of the world’s largest contract development and manufacturing organizations (CDMOs), spent 2022 continuing to focus on ensuring sustainable business practices. The CDMO, which partners with pharmaceutical companies to develop and manufacture biologics such as mRNA vaccines and monoclonal antibodies, was recognized for its consistent approach to sustainability, with the Dow Jones Sustainability World Index including it in its list of companies for the second consecutive year.
Introduced in 1999, the DJSI selects publicly traded companies across a variety of industries based on an evaluation of environmental, social, and governance policies and accomplishments. Samsung Biologics ranked in the top 10% of the over 2,500 companies evaluated by the index. The CDMO is the second-highest rated company in the DJSI’s Life Science Tools & Services Sub-Industry index.
Building a Sustainable CDMO
Samsung Biologics was founded in 2011, and in just over a decade of operations, it’s become an industry leader in manufacturing capacity. For CEO John Rim, one of the keys to the CDMO’s success is its ability to construct facilities at an unprecedented pace.
“There’s no company in the world that can build facilities faster than Samsung and that really comes down to the Samsung DNA,” he said in a recent interview. “Having that track record, having that experience, enables us to do simultaneous construction at the same time. In record time [we do] engineering, procurement, construction, validation … facility ramp-up to [good manufacturing practices], probably 40% faster than all our competition. So that’s been spectacular.”
But while Samsung Biologics has focused on building capacity to meet increasing demand for CDMO services, it’s grown with a commitment to sustainable expansion. The company’s addition of new facilities has come alongside its involvement in several sustainability initiatives and its implementation of policies aimed at achieving a goal of net-zero emissions by 2050.
In its most recent ESG report, Samsung Biologics outlined the details of these initiatives and policies.
“Amid the growing attention on ESG around the world, which puts a greater focus on the roles and responsibilities of corporations, Samsung Biologics is making a full-fledged effort to establish an ESG-driven management structure by doubling our environmental, social, and governance activities, publishing the ESG report, and establishing an ESG committee,” wrote Rim in the report’s introduction. “In particular, we have also taken proactive steps to respond to climate change through participation in the Sustainable Markets Initiative and Carbon Disclosure Project [CDP].”
As the lone CDMO participating in the SMI, Samsung Biologics is leading the initiative’s efforts to reduce the carbon footprint of the pharmaceutical supply chain. Samsung Biologics works alongside health systems leaders from the private and public sectors as part of the SMI’s Health Systems Task Force, which was launched at the 2021 United Nations’ COP26 climate conference held in Glasgow, Scotland.
“We are the only CDMO represented in the SMI’s Health Systems Task Force along with AstraZeneca, Sanofi, GSK, Novo Nordisk, the [World Health Organization], the [National Health Service], and UNICEF,” explained Rim in an interview with Pharma Boardroom. “This foregrounds our positioning as a strategic partner to pharma and a contributor to the betterment of society, global health, and the planet.”
Samsung Biologics’ participation in the CDP involves transparent and consistent reporting of emissions stemming from its operations, as well as a commitment to reducing its carbon footprint by implementing sustainable technology and energy policies. The CDMO received CDP’s Honors Award for carbon management in 2021 and in 2022.
In addition, Samsung Biologics developed a climate risk management model in collaboration with the Korean government as part of its Frontier 1.5D project, which aims to keep global temperature rises from preindustrial levels below 1.5 degrees Celsius.
The Korea Corporate Governance Service also awarded Samsung Biologics an A rating in the areas of environmental management, social responsibility, and governance structure for two years in a row. Samsung Biologics was the first Korean biopharmaceutical company to receive an A rating.
This recognition was in part due to Samsung Biologics’ certifications from the International Organization for Standardization in areas related to ESG, including ISO 22301 (Business Continuity Management System), ISO 45001 (Safety & Health Management System), ISO 14001 (Environment Management System), and ISO 50001 (Energy Management System).
For Rim, the CDMO’s prioritization of climate change mitigation is a necessary response to the healthcare industry’s environmental impact.
“The health care industry is a large source of greenhouse gases, accounting for 4% of global CO2 emissions. The industry produces 2.4 [gross tons] of CO2 per year and about 50% of that is created in the upstream supply chain, which corresponds with many biopharma CDMOs’ Scope 3 emissions,” he explained in a discussion of Samsung Biologics’ ESG policies.
“For a biopharma company like ours, addressing these supply chain emissions is critical because it accounts for approximately 80% of our total [greenhouse gas]. Therefore, it is vital that we actively work to engage with our suppliers to transition to net-zero emissions in multiple areas and invest in clean energy.”
Community Support
Environmental stewardship is a key consideration for the DJSI, but the index also factors companies’ support of local communities.
On this front, Samsung Biologics has invested in scholarships and mentorship for at-risk youth. The CDMO partnered with the Incheon Human Resources Development Foundation to establish the Global Talent Development Scholarship for students from the Incheon, South Korea, region where the company is headquartered. It also provides Bio Dream Plus scholarships for underprivileged youths in Incheon. These scholarships connect students with mentors in the biopharmaceutical industry and are designed to help build successful careers in the booming field of biotech.
Samsung Biologics has also invested in improving access to health care for elderly members of the Incheon community, covering medical expenses for those facing financial difficulties, as well as providing free devices to monitor elderly community members with dementia.
As Rim emphasized, Samsung Biologics sees this community support and commitment to sustainability as the responsibility of a growing industry leader.
“With our mission to create a sustainable and enduring value for all, we are continuing to grow based on our three core pillars of our multidimensional growth plan, which includes expanded manufacturing capacity, continued advancements in business portfolio, and a greater global footprint,” said Rim. “We are actively looking into implementing more environment-conscious practices and technology across our entire business to become a green CDMO partner.”