Risk Assessment and Management of Our Suppliers | Environmental Health & Safety and GHG Emissions Management | Sustainability in Supply Chain | Sustainability | Samsung Electronics
Sustainability in Supply Chain > Environmental Health & Safety and GHG Emissions Management
Risk Assessment and Management of Our Suppliers
Amendment to the basic transaction agreement for suppliers
We provide suppliers with a list of our controlled substances, which includes two prohibited substances and nine restricted ones, along with their respective handling criteria.
If a supplier is found to be responsible for a significant violation, Samsung Electronics reserves the right to partially or fully terminate the supplier contract to avoid any legal issues.
Risk assessment for suppliers
We evaluated the accident prevention capacity of our suppliers in the 2023 comprehensive EHS capacity evaluations and reflected the results in the supplier selection process.
Right to work suspension system
We aim to expand supplier participation in work suspensions and analyze the root causes of risks to elevate overall risk awareness at worksites. In 2024, Samsung Electronics distributed a collection of best practices on the right to work suspension among suppliers and operated the Research Group for the Right to Work Suspension with 33 suppliers across three high-risk industries.
Environment and safety risk management
We help our suppliers identify and eliminate risk factors through the operation of the right to work suspension system, risk assessment specialist training course, and audits on the results of work risk assessments. Through the risk assessment specialist training course, 2,986 employees received training to grow into experts capable of dealing with risk factors in 2024.
Moreover, we carried out a series of special audits on suppliers to evaluate and improve their capacity to identify and address potential work-related risks, thereby preventing serious disasters. After auditing 1,089 suppliers (481 for DX Division, 608 for DS Division) in 2024, we confirmed that most were in the process of independently identifying and resolving risk factors. For 220 suppliers (69 for DX Division, 151 for DS Division) who required special attention, we provided tailored consultation services to help bridge knowledge gaps and build their capacity.
Disseminating best practices
Supplier Safety Management Day for suppliers
DS Division held a Supplier Safety Management Day for suppliers aimed at improving their safety capabilities. The convention included reviewing their activities, sharing knowledge, and discussing best practices for safety in six key fields: safety culture, competency evaluation, risk assessment, work safety, prevention and improvement, and safety systems. We also held special lectures, presented awards, and conducted other activities designed to help suppliers establish a robust safety culture and build safer working environments.
EHS Innovation Day for suppliers
DX Division hosts its Environment, Health, and Safety (EHS) Innovation Day to bolster our suppliers’ environment and safety capabilities. In 2024, the event took place both at Samsung Electronics HCMC CE Complex(SEHC) in Ho Chi Minh City and in South Korea, where five suppliers at each location shared outstanding improvement cases. Best practices selected through a public competition were also showcased on-site, giving participants the opportunity to benchmark and learn from one another.
Health and wellness centers for our suppliers
We operate health and wellness centers at each of our business sites for our suppliers. At these centers, we offer 1:1 health consultations and personalized physical exercise programs to help employees prevent brain and cardiovascular diseases and musculoskeletal disorders. In 2024, the Health and Wellness Centers for Our Suppliers backed a total of 4,455 programs.
Comprehensive medical examinations for our suppliers
We offer comprehensive medical examinations for our suppliers to our resident suppliers’ employees aged 50 and older to help prevent brain and cardiovascular diseases. In addition to legally required examinations, we provide additional check-ups including ECG and HS-CRP. In 2024, a total of 6,292 employees benefited from this service.
Environment and safety academy for our suppliers
We offer environment and safety training courses at the Environment and Safety Academy for DS Division suppliers in Giheung/Cheonan since 2019 and Pyeongtaek since 2022.
As of 2024, our academies in the South Korean cities Giheung, Pyeongtaek, and Cheonan have supported the training of 258,173 people through a total of 20 courses, including risk assessment specialist training and job certification courses. We strive to expand these courses to meet the needs of suppliers, improve their work skills, and provide training for their own autonomous safety systems.
Supplier CEOs On-Talk
We host CEOs On-Talk sessions to raise awareness of safety culture among our suppliers’ CEOs. These sessions encourage dialogue on accident prevention and encourage participants to realize positive changes in their workplaces. We also arrange seminars with external experts and hold monthly virtual meetings with DS Division supplier CEOs. These meetings serve as a platform to share recent accident analyses, updates on DS Division environment and safety policies, industry-specific accident data, and to award good practices of safety embedded in corporate culture. Additionally, we value suppliers’ voices and maintain open communication, demonstrating our commitment to continuous engagement.