SAMSUNG C&T Sustainability Report 2021

SAMSUNG C&TSustainability Report 2021

Company Overview

About Samsung C&T

Business Portfolio

Global Network

ESG Strategy & Core Issue

Message from the Chairman of the ESG Committee

Strategy and System

Environmental

Social

Governance

ESG ManagementReporting

1. Risk Management

2. R&D and Innovation

3. Environmental Management

4. Organizational Culture

5. Product/Service Accountability

6. Information Security

7. Social Contribution

8. Compliance

Appendix

Stakeholder Engagement

Materiality Assessment

Activities Linked to UN SDGs

Key Management Issues

Sustainability Performance Indicators

GRI Index / SASB / TCFD

Independent Verification Statement

Awards and Association Memberships

Company Overview

About Samsung C&T 02

Business Portfolio 04

Global Network 08


Message from the Chairman of the ESG Committee 12

Strategy and System 13

Environmental: Net Zero Roadmap and Contribution to Realization of Circular EconomyKey area 1. Strengthening GHG ReductionKey area 2. Improving Resource Consumption Efficiency

16

Social: Respect for Basic Rights and Spreading a Corporate Culture of Mutual CooperationKey area 3. Achieving Zero Serious AccidentsKey area 4. Raising the Level of Human Rights ManagementKey area 5. Strengthening Collaboration with Partner Companies

20

Governance: Realizing Board-centered Responsible Business ManagementKey area 6. Practicing Transparent, Responsible Business Management

31

ESG Management Reporting

1. Risk Management 38

2. R&D and Innovation 40

3. Environmental Management 42

4. Organizational Culture 44

5. Product/Service Accountability 47

6. Information Security 50

7. Social Contribution 52

8. Compliance 55

Appendix Stakeholder Engagement 59

Materiality Assessment 60

Activities Linked to UN SDGs 62

Key Management Issues 64

Sustainability Performance Indicators 65

GRI Index / SASB / TCFD 86

Independent Verification Statement 93

Awards and Association Memberships 96

Report OverviewSamsung C&T publishes the Sustainability Report (formerly titled “CSR Report”) every year to disclose information on the company’s non-financial activities and the results of such activities to stakeholders in a transparent manner. The previous year’s edition was issued in July 2020.

Reporting StandardsThis report was prepared according to the Comprehensive Option of the Global Reporting Initiative (GRI) Standards, which is the global standard for sustainability reporting. Additionally incorporated were indicators developed by the United Nations Sustainable Development Goals (SDGs), Task Force on Climate-Related Financial Disclosures (TCFD), and Sustainability Accounting Standards Board (SASB).

Reporting Scope and PeriodThis report contains information on the activities and achievements made from January 1, 2020 to December 31, 2020. The scope of this report includes all business establishments that belong to the compa-ny’s four business groups, which are located in the Republic of Korea and other countries. For quantitative analysis of the achievements, the related data for the past 3 years is provided to enable the reader to assess the annual trends. Some of the qualitative data includes results of activities conducted in the first half of 2021.

Additional Information concerning the ReportThis report is published in Korean and English, and can be viewed and downloaded from the official Samsung C&T website at www.sam-sungcnt.com. If you have any inquiries regarding the Sustainability Report, please contact us via the information below.

Contact Information for Report InquiriesPrepared by: Corporate Management Team,

Corporate Strategy Office, Samsung C&T CorporationAddress: (05510) 123, Olympic-ro 35-gil, Songpa-gu, Seoul Telephone: 02-2145-2172 Email: [email protected]

AboutThis Report

Contents

SAMSUNG C&T CORPORATION Company Overview ㅣ ESG Strategy & Core Issue ㅣ ESG Management Reporting ㅣ AppendixSAMSUNG C&TSustainability Report 2021

2 3

About Samsung C&T

The current Samsung C&T began as Samsung Everland, established in 1963 with the intent of national land development. It has expanded to include lei-sure, food & beverage, and landscaping businesses as a leading service provider in Korea. In December 2013, Samsung Everland acquired the fashion business of Cheil Industries, a textile company that has led Korea’s fashion industry, after which the company changed its name to Cheil Industries and focused on establishing itself as a lifestyle company.

The former Samsung C&T, which originates from the “Samsung Sanghoe” established in 1938, was designated in 1975 as Korea’s first general trading company to lead overseas sales operations. In 1995, the company merged with Samsung Construction, and has since been actively engaged in global businesses through its offices in more than 50 countries. The former Samsung C&T and Cheil Industries, which had been building their reputations as leading companies in their respective industries, merged in September 2015, enabling the company to grow into a global business partner and lifestyle innovator across the sectors of construction, trade, fashion, and resorts.

Auditing Team Compliance TeamCorporate Strategy Office

Board of Directors Secretariat

E&C Group

CEO Secheol Oh

Building & Civil Business Unit

High-Tech Business Unit

Plant Business Unit

Global Business Division

T&I Group

Chemicals Division

Steel Division

Energy/Metal Division

Materials Division

Lifestyle Industry Division

New Business Development Team

CEO Jungsuk Koh

Fashion Group

Men’s Apparel Division

BEANPOLE Division

Women's Apparel Division

8 seconds Division

Overseas Merchandising Division 1·2

Executive Vice President Joonseo Lee

Report Group

Resort Business Division

Golf Business Team

Landscape Business Team

CEO Seunghwan Han

Samsung C&T

Board of Directors(four executive directors,

five independent directors)

ESG Committee

Compensation Committee

Related Party Transaction Committee

Audit Committee

Independent Director Recommendation Committee

Management Committee

Company status (as of end-2020)

Organization chart As of March 2021

*Reports directly to Audit Committee

Company name Headquarters address Date of establishment

Samsung C&T Corporation 26, Sangil-ro 6-gil, Gangdong-gu, Seoul December 23, 1963

16,075 persons 54.3317 trillionKRW

KRW30.2161 KRW trillion 857.1 billion

Number of employees

Revenue

Total assets

Operating profit

(worldwide)

Vision

Global BusinessPartner

LifestyleInnovator

Total Life Service

Global Business Partner & Lifestyle InnovatorGlobal Value Creation Company that provides total lifestyle services

E&C Group T&I Group Fashion Group Resort Group

Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix










In the housing sector, Raemian, Korea’s first apartment brand, continues to hold top ranking in various indices such as the National Customer Satisfaction Index (NCSI) and Korea Brand Power Index (K-BPI). The group has been steadily working to find solutions to issues related to housing through the estab-lishment of a Floor Impact Noise Laboratory and a Residential Performance Laboratory, and has been proposing new hous-ing trends through strategic marketing and communication with customers.

4 5

Business Portfolio

Qurayyah IPP, Saudi Arabia

Burj Khalifa, UAE

Incheon Bridge, Korea

The Engineering & Construction (E&C) Group provides the highest added value for our customers through use of its top-class profession-als and technical capabilities in the fields of construction, infrastruc-ture, plant, and housing.

In the building sector, the E&C Group is raising its status as a global top-tier builder of skyscrapers, having constructed several of the world’s tallest buildings including the Burj Khalifa in the UAE.

Building business

In the infrastructure sector, the group constructed the Incheon Bridge, which is one of the top 10 cable-stayed bridges in the world. Over-seas, the group is building key transportation infrastructures in major global cities, including large underground motorways in Australia and Singapore as well as subway systems in Hong Kong and Saudi Arabia.

·Skyscrapers ·Office buildings · Eco-friendly buildings

· High-tech industrial facilities (clean rooms) ·Airports/hotels ·Sports arenas

· Education/cultural facilities ·Medical facilities

Otelinox precision stainless steel production plant, Romania

Wind and solar power development complex, Ontario, Canada

Palm Farm, Indonesia

In the living and industrial sector, the group engages in tex-tile trading, and is currently seeking to expand into consumer goods such as mobile accessories.

The T&I Group is also actively promoting the development of new businesses in prospective fields that will drive future growth such as e-commerce, mobility, hydrogen, and more.

The Trading & Investment (T&I) Group engages in a wide range of businesses in the fields of chemicals, steel, energy, and materials by leveraging its talented workforce, global network, and extensive busi-ness experience.

In chemicals, the group deals in a wide range of upstream and down-stream chemical products such as synthetic resins, petrochemicals, fertilizers, methanol, organic and inorganic chemicals, and mining chemicals. The Group is continuously expanding its areas of special-ization to meet client needs.

In steel, the T&I Group operates a variety of global trading projects for industrial steel products such as crude steel, steel sheets, and stainless steel, targeting a wide range of clients including those in the automotive, electronics, and construction industries. It operates coil centers and precision stainless steel manufacturing plants through-out the world, providing top-quality services to clients by expanding the value chain from the processing to distribution of steel products.

In the energy field, the group actively develops renewable energy proj-ects such as solar projects to keep up with increasing global demand for energy diversification. The T&I Group also participates in the bio-fuel market, which utilizes palm kernel shells (PKS), and engages in project organizing in the fields of LNG trading and infrastructure, where it provides one-stop-shop solutions that encompass functions such as financing, EPC, etc.

In the materials sector, the group implements various business mod-els in the fields of steel, IT, etc., and continues to strengthen its busi-ness of trading in major metals/minerals such as copper, providing dif-ferentiated services to cater to client needs such as the remarketing of IT-related manufacturing facilities and SCM solutions for process materials.

Engineering & Construction Group Trading & Investment Group

In the plant sector, the E&C Group has successfully completed large-scale plant projects around the world including the Qurayyah IPP in Saudi Arabia, the world's largest thermal power plant, followed by UHP in Qatar, Rabigh 2 in Saudi Arabia, and a nuclear power plant in the UAE. The group is also increasing its participation in renewable energy proj-ects, such as a solar power project in Guam and the Yulchon fuel cell project, and is rising as a global top player in the power plant market.

Infrastructure business

·Bridges ·Ports ·Tunnels

·Subway /Express railroads

· Dredging/reclamation

· Water treat-ment facilities ·Dams

Plant business

·Nuclear energy ·Renewable energy

·Energy storage facilities (LNG, LPG) ·Combined cycle power generation

Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix










6 7

KUHO

Gapyeong Benest Golf Club

8 seconds

Traditional casual apparelBEANPOLE

SPA8 seconds

Women’s apparelKUHO, LEBEIGE

Men’s apparelGALAXY, ROGATIS

Multi-brand shops10 CORSO COMO, BEAKER

BEANPOLE

The Fashion Group has accumulated success experience through its major brands that include GALAXY and BEANPOLE. The Fashion Group is currently expanding its scope of business to women's clothing brands such as KUHO, LEBEIGE, and the SPA brand 8 seconds while establishing a competitive portfolio of imported brands.

The multi-brand stores 10 CORSO COMO and BEAKER also present trendy lifestyles, and the group's partnership projects with fashion brands such as AMI, MAISON KITSUNE, and LEMAIRE have achieved significant growth and solidified their position as trend-setting brands in 2020 based on major support from Generation MZ consumers.

Everland

Everscape

GolfAnyang Country Club, Gapyeong Benest Golf Club, Anseong Benest Golf Club, Dongrae Benest Golf Club, Glen Ross Golf Club

LandscapingEverscape

Resort Everland, Caribbean Bay, Speedway

Revenue of major products and services (2020)

Fashion Group Resort Group

The Fashion Group of Samsung C&T has served the role of a pioneer of the Korean fashion industry. The group will promote digital transformation to improve internal processes and enhance online businesses, thinking from the perspective of customers in line with the changing world and customer demands, through which it will maintain its leadership in the Korean fashion industry. Meanwhile, the group will also offer opportunities for younger designers to realize their dreams by operating the Samsung Fashion & Design Fund (SFDF), a support program for young designers.

Business Type Product category Sales (KRW million)

E&C Group Services Construction and Housing Businesses 11,701,957

T&I GroupGoods, Products Chemicals, Steel, Energy, Materials, etc. 13,154,863

Services Chemicals, Steel, Energy, Materials, etc. 96,720

Fashion Group Goods, Products Apparel/Textile Manufacturing and Sales 1,545,511

Resort Group Other Park Facilities, Golf, Landscaping 425,987

Other Products, Services, etc. Catering Service, Food Distribution, Biopharmaceutical Manufacturing, etc. 3,291,081

Total 30,216,119

The Resort Group offers services that are closely connected with the lifestyles of our customers, such as resorts, country clubs, landscap-ing, and food & beverage based on the powerful “Everland” brand.

The Resort Group achieved the number one ranking in the Korean Customer Satisfaction Index (KCSI) for 26 consecutive years through its extensive history of innovation and ambition, such as with the opening of the first family-themed park and the first indoor-outdoor hybrid waterpark in Korea. Its luxury country clubs provide moments of relaxation and bliss to customers. Additionally, the group designs pleasant and carefree spaces through its landscaping business based on its professional capabilities and expertise. After launching the food business in 1982, Samsung Welstory, which grew into the largest food service company in Korea, separated to become its own corporation in 2013 and is currently expanding its food & beverage culture worldwide.

Through these services, the Resort Group strives to deliver happi-ness and joy to customers’ lives and to create a new service culture with the aim of becoming a company that is loved by people as well as a leading service provider in the world.

Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









CanadaOntario

USANew Jersey

MexicoMexico City

ColumbiaBogota

PeruLima

ChileSantiago

BrazilSao Paulo

PanamaPanama

BangladeshDhaka

AlgeriaAlgiers

EgyptCairo

TurkeyIstanbul

GhanaAccra

Republic of South Africa

Johannesburg

IranTeheran

SpainMadrid

MoroccoEl Jadida

SenegalDakar

ItalyMilano

Saudi ArabiaRiyadh Qatar

Doha

RomaniaBucharest

UkraineKievSlovakia

Voderady

UAEDubai

ThailandBangkok

Hong KongHong kong

IndonesiaJakarta

AustraliaSydney

TaiwanTaipei

PhilippinesManila

SingaporeSingapore

VietnamHanoi

MyanmarYangonIndia

Delhi

JapanTokyo

ChinaBeijing

RussiaMoscow

MongoliaUlaanbaatar

KazakAlmaty

PolandWarszawaGermany

Frankfurt

United KingdomLondon

UzbekistanTashkent

KuwaitKuwait

MalaysiaKuala Lumpur

KenyaNairobi


8 9

Samsung C&T is a multi-business corporation consisting of four business groups: E&C, T&I, Fashion, and Resorts. The company actively engages in business around the world through its network of over-seas offices in 47 countries worldwide.

ASIA &OCEANIAMIDDLE EAST &

AFRICA

EUROPE& CIS

Number of countries 10

Number of subsidiaries 9

Number of branches/ offices 8

Overseas employees 821








Overseas employees 6,077

AMERICAS

Number of countries

47Number of branches/ offices

6149Number of subsidiaries Overseas employees

8,046

Global Network





Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix










Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









From 2015 to 2017, Samsung C&T focused on building an ESG-oriented operating system, and from 2018 to 2020 established its long-term direction for ESG based on this operating system and focused on its execution. For the next 3 years starting in 2021, Samsung C&T will focus on reinforcing the sustainability of the company with the aim of establishing a board-centered ESG management system.

12


13

Strategy and System

16

Environmental

20

Social

31

GovernanceESG Strategy &Core Issue


12 13


Strategy and System

I would like to express my gratitude to all of our stakeholders for their interest and support for Samsung C&T.

During the year 2020, Samsung C&T worked hard to create economic value based on differentiated business competitiveness despite uncertainties in the management environment posed by the COVID-19 pandemic, while also putting forth our best efforts to fulfill our social and environmental responsibilities.

We reaffirmed our commitment to eco-friendly management by declaring coal-free, taking the lead in achieving win-win development with business partners and local communities and striving to create a safe and healthy working environment.

Furthermore, we have gathered the opinions of diverse stakeholders to newly establish our ESG Strategy for the next three years. Going forward, we intend to transparently disclose the outcome of the strategy's execution. The main contents are as follows.

First, Samsung C&T will participate in making global efforts to respond to the climate crisis and stimulate resource circulation.

We have established goals for improvements in greenhouse gas emissions reductions and resource recycling rates throughout our businesses, and will diligently put them into practice going forward. We will continue to expand our renewable energy businesses including solar and wind, while also enhancing our environmentally friendly products and services.

Second, Samsung C&T will take its responsibilities seriously to create a society where our employees, partners, and the local community can live happily and safely.

We will strive to protect the rights of not only our employees but all stakeholders including those within our supply chain by rein-forcing ESG risk assessment for our business sites and partners. We will pay special attention to securing health and safety and to the prevention of serious disasters at our business sites and our partners under the philosophy of “safety first”.

Third, we will establish an ESG management system led by the Board of Directors.

In 2021, Samsung C&T formed a new Board of Directors and expanded and restructured the existing Governance Committee into the ESG Committee. The company, through the ESG Committee which is participated by all of the company’s independent direc-tors, we will do our best to identify opportunities for sustainable growth and to manage risks.

This year’s Sustainability Report covers the achievements that Samsung C&T has made over the past year, and the direction in which Samsung C&T intends to move forward. I would like to thank you for your support for Samsung C&T, and ask for your con-tinued support and interest.

Thank you.

Byung Suk ChungChairman of the Board of Directors and ESG Committee

Samsung C&T Corporation

3-year strategy of Samsung C&T (2021-2023)

ESG Management System

Realization of sustainable growth through corporate social responsibility

Establishing execution monitoring system by area

Maintaining the corporate-level risk management system

· Reinforcement of GHG mitigation activities to transition to a low- carbon society

· Improvement of resource utilization efficiency, reflecting business characteristics

Net Zero roadmap and contribution to realization

of circular economy

· Realization of zero serious accidents via prevention of non-compliance with safety regulations

· Establishment of human rights management systems in business sites and partner companies

· Strengthening collaboration with partner companies

Respect for basic rights and spreading a corporate culture of

mutual cooperation

Environmental (E) Social (S) Governance (G)

· Enhancing independence, profession-alism, and diversity within the struc-ture of the Board of Directors

· Expansion of the role of the Board of Directors in strategic decision-making

· Maintaining internal stability of the Board of Directors and expanding external communication

Realization of board-centered responsible business

management

Enabler(monitoring and

management system)

Strategic objectives

Direction in each area

Vision

Execution of Key Tasks

Risk Management

Execution Monitoring

Establishment of the ESG Manage-

ment System

In 2018, Samsung C&T, with the vision of realizing sustainable growth through fulfillment of corporate social responsibility (CSR), established its 3 Strategic Directions (preemptive response to climate change, rein-forcing social responsibilities throughout all business processes, and creation of value in cooperation with society) and 6 Strategic Tasks (pre-vention of global warming, production and purchase of eco-friendly products, sustainable supply chain management, labor and human rights risk management on business sites, creation of shared value and expansion of impact measurement, and promotion of integrated social contributions). It disclosed the status of execution for the next three years, also strengthening its execution capacity.

As a result, Samsung C&T achieved its company-wide greenhouse gas emission reduction goals, and has established ESG risk assessment cri-teria for business sites operated by Samsung C&T and partners. The company has made a positive impact on the local community through social contributions that are specialized based on the characteristics of its businesses.

Additionally, in 2020, Samsung C&T developed a 3-year strategy (2021-2023) to establish an ESG management system. The existing CSR policies were reviewed to identify key tasks in each area of ESG and to set more proactive goals in the environmental and social areas. Furthermore, quantifiable indicators were set for each strategic objective with the aim of building an ESG monitoring system and a risk management system led by the Board of Directors. By managing these indicators through

KPIs, Samsung C&T has established a foundation to internalize the stra-tegic objectives for ESG throughout the company’s business areas and business sites.

Samsung C&T intends to achieve sustainable growth through the respon-sible ESG management system at the level of the Board of Directors.

Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix










14

Performance Highlights & 2023 Targets

15

Performance highlights (2018 ~ 2020) 2023 targets (2021 ~ 2023)

* ESG strategy was established in 2020, with the current levels written based on 2019 performance

Strategic direction Key area Target for 2023

Sector Strategic direction Key area KPI Current level (2019)* Target for 2023

Respect for basic rights

and spreading a corporate culture of

mutual cooperation

0.24% 0.09%Accident rate

Excellent (E&C)

Evaluation of ESG at business sites 77% 100%

Top rank (E&C)

3cases 0casesNumber of serious

accidents

Mutual growth rank

Good (Fashion)

Evaluation of ESG of partners 27% 100%

Top rank (Fashion)

Achievingzero serious

accidents

Raisinglevel of human rights

management

Strengthening collaboration with partner companies

Net zero roadmap and contribution to realization

of circular economy

Strengthening GHG reduction

Improving resource consumption

efficiency

GHG emission volume

(Scope 1+2)242,000

tCO2e214

tCO2e/KRW 100 million

Emission volume per unit revenue

(Scope 1+2)

0.87 tCO2e/KRW 100 million

0.69 tCO2e/KRW 100 million

Waste recycling rate 27.7% 42.9%

Waterrecycling rate 20.2% 25.3%

Strategic direction Strategic task Description

Other major achievements Received awards at Safety, Health, Environmental Award Convention hosted by Singapore LTA*

Reinforc-ing social

responsibility throughout all business processes

Expansion of CSR assessment of partners for management of sustainable supply chain- 73% of partner companies have received the assessment

Labor/human rights inspections conducted on business sites- 79% of business sites received inspections in 4 groups

Sustainable supply chain management

Labor and human rights risk management

on business sites

Creation of value in coop-eration with

society

Launch of adaptive clothing brand HEARTIST (clothing brand for people with disabilities)

15,871 employees participated in social contribution programs Operated Junior C&T Academy in 20 schools

Creation of shared value and expansion of impact measurement

Promotion of integrated social

contribution

Other achievements

Prevention of global warming

Production and purchase of eco-friendly products

Preemptive response to climate

change

Achievement of internal GHG reduction goals- 28% reduction in GHG emissions in comparison to

2016, goal achieved (1.23 tCO2e/KRW100 million → 0.99 tCO2e/KRW100 million)

Increase in sales for eco-friendly material product category- 10%p increase in production/purchase ratio of

eco-friendly products in comparison to 2018

* Land Transport Authority

Sector Strategic direction Description

Realization of board-centered

responsible management

Improving indepen-dence, professionalism, and diversity within the

structure of the Board of Directors

Expanding the role of the Board of Directors in strategic decision-

making

Ensuring effectiveness of the Board of Directors, and increasing external

communication

Strengthen professionalism and diversity of independent directors

Increase monitoring function for mid- to long-term strategies (business/finance/ESG) Implement corporate-level risk management system, etc.

Establish evaluation system for board activities Increase disclosure of ESG-related information

With Planet

With Responsibility

Strengthening of independence and responsibility of the Board

of Directors

Separated Chairman and CEO roles Introduced Lead Independent Director System

Expanded appointment criteria and candidate pool for independent directors Recruited female and global management specialist board members

Expanded scope of agenda for the Board of Directors; established 2-day board meetings Implemented/operated board evaluation system and strengthened related training programs Introduced electronic voting system

Reinforcement of professional-ism and diversity of independent

board members

Reinforcement of operation and stability of the Board of

Directors

With Transparency &Accountability

Envi

ronm

enta

lSo

cial

Gov

erna

nce

Became first non-financial company to declare coal exit ISO14001 certification in new & renewable energy sector; expansion of solar energy business Achieved zero direct landfill waste at construction sites

Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix










16

Environmental Net Zero roadmap and contribution to realization of circular economy

Samsung C&T is actively participating in global efforts for carbon neutrality and recycling of resources to overcome the climate crisis, minimizing negative environmental impacts generated during business processes while increasing positive contributions to the environment through expansion of eco-friendly products and services.

Key area 1. Strengthening GHG reduction

Advance the emissions management system in correspondence with global efforts to reduce GHG emissions

Key area 2. Improving resource consumption efficiency

Build the groundwork to increase the proportion of water/waste recycling to improve resource consumption efficiency

17

Key area 1

Strengthening GHG reductionIn 2020, major countries around the world declared Net Zero targets for 2050, making climate change response one of the most critical global challenges of our time. As a signatory state of the Paris Agreement, the Republic of Korea also submitted the targets to the United Nations for achieving carbon neutrality by 2050 and reducing the nation’s emissions by 24.4% from 2017 levels. Samsung C&T also set internal targets to reduce GHG emissions, which it has been actively working to achieve. The company also prepared an information disclosure system by 2022 according to the Task Force on Climate-Related Financial Disclosures (TCFD) standards, and established 2030 emissions targets by 2023 implementing the SBTi standards.

GHG emission reduction goals(2018-2023) (Unit: tCO2e / Scope: Scope 1+2)

297,782239,395 226,607 213,901

298,067306,419

2018 2019 2020 2021 2022 2023

GHG emissions from Samsung C&T (Unit: tCO2e / Scope: Scope 1+2)

2016 2017 2018 2019 2020

231,637 242,377189,180

232,224

362,535

Management of GHG emission reduction goalsTaking the initiative to respond to the global trend of climate change response, Samsung C&T has set and is executing internal GHG emis-sions reduction goals across the company. The company met the inter-nal target for 2020 of limiting direct and indirect emissions to 297,782 tons, producing only 189,180 tons of emissions, a 36% reduction beyond the internal goal. As a result, Samsung C&T put its name in the Hall of Fame at the 2020 CDP Korea Awards for its 5th consecutive year.

Furthermore, Samsung C&T has incorporated total GHG emissions and emissions per unit of revenue as the strategic indicators for the GHG emission reduction activities. The goals are to limit the total emissions to 213,901 tons and 0.69 tons per unit revenue by 2023. This ambitious goal of reducing emissions per unit revenue to more than 20% below the current level in 3 years reflects Samsung C&T's strong commitment to join the climate change mitigation efforts and accelerate the emissions reduction momentum of the 2016-2020 period.

Eco-Drive campaignSolar and wind energy complex in Ontario, Canada

GHG mitigation activities

Improvement in energy efficiency at business sitesSamsung C&T has been discovering and implementing various emis-sions reduction methods in order to reduce GHG emissions generated in business establishments and sites. The E&C Group identifies major sources of GHG emissions in construction sites, and explores and imple-ments various GHG emission reduction methods. Various reduction methods and procedures have been explored and implemented in con-sideration of the unique characteristics of each construction site. These include improving concrete curing methods during the winter season, which consumes much energy, and changing the method of lighting in temporary offices and construction equipment. In 2021, the group plans to run a pilot plant by installing solar energy facilities in construc-tion sites to increase the use of new renewable energy. Through the pilot plant, the group will be able to set up installation standards and an operation manual that reflect unique situations in construction sites, and gradually expand their implementation to the rest of the business.

The E&C Group has also been continuously implementing GHG emissions and fine dust reduction activities through the Eco-Drive campaign, which calls for better operation practices for construction vehicles, machines, and equipment, and improved fuel efficiency. The group also plans to gradually increase the use of electric vehicles in construction sites.

The T&I Group has replaced all fluorescent lamps used in the interior and exterior spaces with LED lights, and installed heat sensor lights in areas that are used sparsely such as toilets. In addition, plant roofs were partially replaced with transparent materials in order to minimize the use of light-ing devices during the daytime. The group’s palm plantations in Indone-sia use palm wastes to produce bio-diesel, contributing to GHG emissions reduction by using it as a substitute for the standard diesel fuel.

Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix










18 19

Busan Echo Delta Smart City Wind and solar power development complex, Ontario, Canada

Efforts to improve resource efficiencyIn order to improve the resource efficiency of construction materials used in the construction process, the E&C Group optimizes building structures, develops new materials, and minimizes the amount of raw materials such as concrete and steel bars used on site. Through this, the group reduces GHG emissions generated during construction material manufacturing processes and minimizes wastes generated when build-ings are disposed after use.

In 2020, the E&C Group achieved zero direct landfill, in comparison to 800 tons of landfilled wastes in 2019, by improving the construction waste treatment process during the construction stage. In the case of construc-tion waste wood and waste gypsum boards, which are highly recyclable, 95% were recycled in 2020 as raw ingredients for products and fuel.

In order to increase the recycling rate of water used in construction sites, the group plans to establish standards and procedures to use the water as spray water after processing in internal and external water treatment facilities. In addition, the group plans to develop standard facilities that can be installed in construction sites to store rainwater to boost the water recycling rate even more.

The T&I Group uses palm wastes generated in the palm plantations and palm oil production plants in Indonesia as biomass fuel. All of the waste water produced in the palm oil plant that contains residual organic materials is used as fertilizer in the plantation. The palm oil plant plans to increase the amount of recycled biomass each year, and to manage valu-able natural environments within the plantation grounds that are worth preserving such as wetlands, creeks, and protected lowlands to continu-ously reduce GHG emissions. In addition, the coil centers located in Malay-sia, Slovakia, and Santiago de Querétaro, Mexico, recycle the majority of steel scraps occurring from processing steel as raw materials.

The Fashion Group has established KPIs for water and waste management to manage the Gumi textile mill that is operated directly by the group. The group also monitors the progress toward the annual goals by designating an water and waste manager at the plant. It performs an intensive inspec-tion at least once each month to detect potential leakage in all facilities that use water and to make improvements as necessary, and is develop-ing ways to convert existing wastes that are either landfilled or incinerated into recyclable wastes.

The Fashion Group has pledged with partner companies to make mutual efforts to protect human rights and the environment. The group is actively developing and expanding the use of eco-friendly materials, utilizing recy-clable or biodegradable materials that contribute to a circular economy, and reducing the use of harmful materials in the manufacturing process. Nine brands owned by the Fashion Group, including BEANPOLE, 8 sec-onds, KUHO, and ROGATIS, produce t-shirts, jackets, and pants made from recycled plastics. The group is also planning and producing suits made from biodegradable fabrics. As a result, the eco-friendly material product category of the Fashion Group achieved a 300% increase in sales in 2020 in comparison to the previous year.

The Resort Group is investigating and classifying disposable products that can be replaced with eco-friendly products to reduce the amount of disposable products used at business sites. In particular, the group purchases eco-friendly products instead of plastic tools and bags that are used in large quantities, and strives to expand the use of eco-friendly products over a wider area. The group has also launched the “Save the Earth campaign” to encourage employees to use reusable cups instead of disposable goods.

The Fashion Group reduces energy consumption levels by installing automatic switchgears for the heating steam lines at its textile manu-facturing site, and lighting devices with high energy efficiency in logis-tics centers. Meanwhile, in an effort to save energy during the summer season, the Fashion Group prohibits retails stores from propping entry doors open during operation, which contributes to a significant reduc-tion in GHG emissions.

The Resort Group is managing its energy use and improving efficiency based on the ISO 50001 certification obtained in 2014. The group is seeking ways to apply renewable energy to reduce GHG emissions at Everland and Caribbean Bay, making efforts to minimize energy waste. In particular, the Resort Group signed an agreement with the Yongin city government to supply waste heat to the business establishments (waste heat from Geumeori Incineration Plant) to utilize new & renewable energy. In order to eliminate sources of energy waste, the group has also launched energy saving campaigns for employees, which involve keeping entry doors closed in retails stores, complying with the indoor temperature standards, and turning off engines of work vehicles when not in use.

Expansion of eco-friendly businessesSamsung C&T strives to produce more eco-friendly products and ser-vices. In October 2020, it became the first company outside the finan-cial sector to declare an exit from coal, based on which it is determined to avoid investment and participation in projects related to coal-fired power generation, and to instead actively seek participation in renew-able energy projects.

The E&C Group added the renewable energy criteria in the ISO14001 standard in 2020 in effort to scale down on coal-fired power generation projects and expand to the renewable energy construction market. Its Saudi Arabia office acquired a local certificate in the renewable energy sector, and is preparing for active participation in the renewable energy market in the Middle East region.

Furthermore, the E&C Group strives to improve the energy efficiency of buildings and minimize GHG emissions that occur during their opera-tion. The group developed external panels with excellent insulation

capacities and new technologies that improve the efficiency of air-con-ditioning facilities based on data in order to improve the operation effi-ciency of industrial plants, which consume a tremendous amount of energy. In the residential project for the Busan Echo Delta Smart City, the group applied a new construction technique called Insulation Double Wall (IDW), which reduces energy consumption by improving the insula-tion capacity of the building. In 2020, a total of 5 projects conducted by the group including KB Bank, Raemian, and DMC Lucentia were certified by G-SEED, a South Korean green building certification system.

In particular, the group developed a new dry construction technique, which minimizes the amount of concrete and the number of construc-tion workers required on site through pre-fabrication in the plant. This method of construction is applied to the E&C Group’s apartment brand Raemian. The group also uses recyclable thermoplastic materials for interior finishing materials, windows and doors, and electrical equip-ment and products, leading the use of eco-friendly materials. It is work-ing hard to expand the range of eco-friendly construction techniques, such as developing furniture finishing materials made of recycled PET bottles and self-powered touch-type sink faucets.

Since its declaration to exit from coal, the T&I Group has closed its exist-ing coal-related projects earlier than schedule, and shifted its focus to developing low-carbon and eco-friendly businesses. In 2020, the group expanded its solar power generation business in the United States, securing a project pipline worth 5.5W in 12 states including California, Georgia, and Texas, which are promising regions for the solar power energy industry. In addition, to respond to the rapidly changing mar-ket, the group has entered a solar power and Energy Storage System (ESS) integration project and has signed a Power Purchase Agreement (PPA) in California. The group also contributes to GHG reduction through its operation of palm planations in Indonesia. The T&I Group produces crude palm oil (CPO) at the plantations, which is used as a raw ingre-dient for bio-diesel, and recycles the biomass generated during the oil extraction process to fuel the plant. Oil collected from waste water gen-erated at the farm is also sold as a raw ingredient for bio-diesel and surfactant.

Efficient use of resourcesThe company set recycling rates for water and waste as strategic goals to improve efficiency in the use of resources. It plans to make efforts to achieve a 25.3% increase in the water recycling rate and a 42.9% increase in the waste recycling rate.

(unit: %)

Key area

Strategic objective KPI

Cur-rent level

Goal

2021 2022 2023

Environ-ment

Improve resource utilization efficiency, reflecting character-istics of the business

Water recycling rate 20.2 23.2 24.0 25.3

Waste recycling rate 27.7 36.0 38.5 42.9

B-CYCLE PIQUE (BEANPOLE MEN)

The Fashion Group has devel-oped a new material made using cotton threads mixed with polyester threads recycled from reprocessed PET bottles, and applies them to its products.

NAMOO BAG (BEANPOLE ACCESSARY)

Unlike leather bags, this bag is made from an eco-friendly material that requires almost no water in the manufacturing pro-cess and produces no harmful substances.

Recycle Belted Jacket (8 seconds)

This jacket is made of polyester recycled from PET bottles.

Key area 2

Improving resource consumption efficiencySamsung C&T has devised and implemented various plans to contribute to a circular economy by using resources efficiently and increasing the rate of recycling.Company Overview

About Samsung C&T

Business Portfolio

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Social

Governance


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8. Compliance

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20

Key area 3. Achieving zero serious accidents

Improve accident prevention systems and monitoring activities at business sites and partner companies

Key area 4. Raising the level of human rights management

Improve human rights and labor evaluation systems at business sites and partner companies

Key area 5. Strengthening collaboration with partner companies

Identify and improve programs that drive mutual growth with partner companies

21

Safety and health policyThe E&C Group announced its safety and health policy which places top priority on the safety and health of clients, employees, and workers. Accordingly, the group has established and implemented the Occupa-tional Health and Safety Management System (Samsung OHSMS).

The E&C Group establishes a consistent health and safety policy and relevant targets that apply to the entire company, business groups, construction sites, and partner companies according to the OHSMS. In 2020, a total of 74 departments defined and completed 148 health and safety targets. Furthermore, the group conducts construction site inspections and improvement activities lead by the management at least once a month.

To observe the safety regulations of each country and establish health and safety systems suitable for local environments, the E&C Group also implements an HSE Plan Template in 8 countries including Saudi Arabia, Singapore, and Malaysia. In 2020, the company converted the KOSHA certification which it previously acquired to KOSHA-MS, and renewed its ISO45001 certification as part of efforts to establish an autonomous health and safety management system.

The T&I Group also implements a consistent policy and manual for pre-venting safety-related accidents across business division and overseas production sites. The headquarters sets long-term targets, and supports and conducts on-site inspections, while overseas business sites conduct regular manager inspections, and operates cooperative bodies led by the head of each subsidiary under compliance with the local health and safety regulations of the host country as the basic principle.

The Fashion Group applies the same health and safety policy and health and safety targets across all business sites. In order to meet the health and safety targets, the group has established 2 sets of health and safety regulations and health and safety rules. In particular, the Gumi textile mill and the Bucheon logistics center, where there are high risks of safe-ty-related accidents, make and implement their own health and safety regulations, and regularly update the regulations in accordance with the related laws and requirements.

The Resort Group manages its health and safety system based on the “ISO45001 management system” international safety standard. Each

and every department of the Resort Group establishes internal health and safety targets and action plans to manage risk in accordance with the principle of “safety first”, and devises health and safety guidelines that reflect characteristics of each business site based on the health and safety manual and 16 procedures.

Key elements of the Occupational Health and Safety Management System (Samsung OHSMS)

Plan

Business groups, business sites, and partners develop a consistent health and safety policy and identify key tasks.

Do

All employees, partners, and workers strictly follow the work

standards and processes

Check

Conduct auditing to monitor compliance with the health and safety regulations

Action

Continuously improve the process and work safety

environment

Plan

Check

Do

Action

P3 site, Samsung Electronics Pyeongtaek campus

Social Respect for basic rights and spreading a corporate culture of mutual cooperation

Samsung C&T strengthens its responsibility in business activities through building workplaces where safety always comes first, preventing human rights violations at business sites and partner companies, and establishment of an ecosystem for mutual cooperation and co-prosperity.

Key area 3

Achieving zero serious accidentsUnder the management principle of “safety first”, Samsung C&T strives to provide a safe and accident-free workplace for employees and partner company employees, and facilities that are free of accidents for consumers and clients. To achieve this, the company has established a system for preemptively managing accident risk at business sites, and works to continuously improve the system.

Company Overview

About Samsung C&T

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Environmental

Social

Governance


1. Risk Management







8. Compliance

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22 23

Health and safety competency enhancement program

Health and safety trainingThe first step in accident prevention is helping workers to accurately identify risk factors and to take appropriate actions. In this regard, Sam-sung C&T diligently offers safety-related information and training pro-grams throughout all of its business areas.

The E&C Group operates an organization dedicated to safety training called the Safety Academy. The Safety Academy has revamped its entire training system including the training infrastructure and content to offer more relatable and engaging training programs for workers. The group also provides risk-related information to business sites daily in order to secure the safety of on-site workers. The group has launched a SMS text notification service to enable workers to easily access safety-related information, and has opened a page dedicated safety information page within the company blog.

Each year, the T&I Group identifies business sites that have a high num-ber of accidents and potential risks and conducts an accident prevention training program focusing on case studies. In addition, the group always encourages on-site managers to develop their competencies such as by acquiring safety-related certificates.

Front view of the Safety Academy

Plaque for the Singapore LTA Safety Contest Construction Industry Health Management Best Practice Awards

The Fashion Group regularly shares cases of accidents and safety and health-related information with all employees every month. The group also conducts additional safety training programs customized to accord-ing to the unique characteristics of each business site, such as the textile manufacturing site.

The Resort Group runs a “daily safety operation process”, which enables all employees to access accurate safety-related information. The daily safety operation process consists of checking the health status of workers, body stretching, announcements, safety training, risk prediction training, and more. In the last step of the process, the safety risks requiring special attention on that day are selected and checked by all employees.

Operation of the disaster prevention systemSamsung C&T actively uses ICT technology such as the Internet of Things (IoT), Big Data, and Artificial Intelligence (AI) to prevent accidents at major project sites. In addition to this, the company develops and dis-tributes accident prevention systems such as checklists and safety man-agement regulations based on historic data on disasters and safety-re-lated accidents, and conducts thorough inspections.

The E&C Group proactively responds to potential accidents and risks by building an IoT-based smart safety management system that detects various risk factors to predict the occurrence of safety-related acci-dents in real time. The group also utilizes intelligent CCTV, smart tags, and drones to identify risks in real time, and uses a Big Data analysis technique combined with AI technology to provide an accident predic-tion solution in each stage of the construction process. This enables the group to take the necessary measures in vulnerable areas and to con-duct intensive safety training. Such safety management systems of Sam-sung C&T are highly recognized in Korea and abroad. In 2020, Samsung C&T won awards in 6 categories at the Singapore LTA Safety, Health, and Environmental Award Convention, and the Best Practice Award at the Health Management Best Practice Contest hosted by the Korea Occupa-tional Safety and Health Agency (KOSHA).

Drilling robot Raised floor installation robot

The E&C Group also runs a “risk reporting mileage program” to reward individual workers who discover potential accident risks or suggest new ideas to improve safety. As a result, a total of 360,000 accident risks were reported in 2020 alone through active participation from on-site workers.

The E&C Group also guarantees the “right to stop work” to enable work-ers to stop working immediately and require improvements in cases where an accident risk has been recognized. A future plan of the E&C Group is to insert a clause within construction contracts that warrants compensation for losses incurred by partner companies due to workers’ exercise of the right to stop work. The group is also planning to intro-duce an incentive program that rewards workers who practice the right to stop work and contribute to the removal of potential risk factors. A reporting platform will be established that includes a dedicated mobile application and a hotline that can quickly notify workers of situations where they need to stop work.

The T&I Group operates various business models and business sites throughout the world, so the group needs to discover and manage potential risks by means of customized inspections for each business site. Accordingly, the group assesses overseas subsidiaries and classifies them into different risk levels by analyzing the frequency and severity of previous accidents. The headquarters leads on-site inspections and conducts third-party consulting and inspections to cross-check for risks, and collects a potential risk detection report every month to supervise improvement. The subsidiaries also implement voluntary safety man-agement. For example, when a potential risk is discovered, the person who discovered the risk attaches a red sticker on the risk area after writ-ing down information such as “Potential risk / Name of person / Date of discovery” in order to prevent accidents. Steel plants have a particularly high risk of construction worker fatality caused by crushing injuries. In order to prevent crushing injuries, the group installs access blockage sensors and devices in combination with other measures.

The Fashion Group has established and is operating a safety inspection system and safety management regulations for all processes, from man-ufacturing plants to distribution centers and retail stores. At manufac-turing plants, extreme safety risks such as falling, fire, and explosion are managed, and safety training for each employee level is conducted. The logistics centers have revised their safety management regulations to reflect the new Occupational Safety and Health Act enacted in Korea on January 2020, and retail stores use checklists established based on major accidents to perform inspections.

A new plan that the group is currently exploring for 2021 involves apply-ing robotics technology to construction processes that pose high safety risks. In April 2021, the group successfully introduced a robot in a con-struction site for the first time in Korea. The robot was used to apply a refractory material on steel columns and beams. This is typical construc-tion process that is classified as a high-risk task, as it involves a high risk of exposure to a harmful substance and is often performed in high places. In addition to this, the group is continuously developing robotics technologies that can perform high-risk tasks, such as a drilling robot for reinforced concrete columns, access floor installation robot, and auto-matic welding robot.

Detailed structure of the Occupational Health and Safety Management System (Samsung OHSMS)

Business groupsCorporate Project sites

Health and safety management plan

Collection and sharing of information on hazardous

substances

Listening to and sharing of opinions of partner

companies

System education

Business groupsRISK ASSESSMENT

Execution plan of business groups

Practical implementation

On-site safety patrol

Record keeping

Accident information DB

Business group audit

Record keeping

System improvement

Critical health and safety management plan

Check legal and other requirements

Laws and administrative guidelines Agreements with industrial groups Management philosophy and administrative guidelines Company policies, standards, and others

System education

On-site opening

Construction management process PCM, construction

cycle, risk assessment

Monthly risk assessment meeting

(labor-management council)

Record keeping

Completion of construction

Practical implementation

Checking work safety guidelines/instructions

On-site health and safety practice plan

On-site health and safety policy

On-site health and safety targets

Internal inspection

Monthly health and safety management plan

Emergency response plan

Business site RISK ASSESSMENT

Reflecting opinions of employees and business

partners

Accident and disaster responseDisaster prevention discussion

Accident and disaster response

Review of plan

System improvement

Health and safety policy

Critical target implementation items

Critical targets

Accident and disaster response

[RISK ASSESSMENT]Specifics of critical risk task

In-house computer system

Company Overview

About Samsung C&T

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Strategy and System

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Social

Governance


1. Risk Management







8. Compliance

Appendix










24 25

The Resort Group is doing its best to eliminate potential risks that threaten customers safety, and to provide facilities that are safe to cus-tomers. New and renewed facilities undergo risk assessments to ensure their safety before opening to customers. In addition, the group runs a daily program called “Safety Steps”, where workers at the forefront of safety management answer safety-related quizzes, and publishes a weekly Safety Magazine focusing on health and safety issues both inside and outside of the company and helping workers to check and manage the safety management checklists.

Supporting safety in partner companiesSamsung C&T conducts inspections on all partner companies in order to protect the life and safety of all workers throughout the global value chain, and provides consistent support for safety competence development.

The E&C Group subsidizes labor costs so that partner companies can hire qualified professional safety managers and establish a basic health and safety management system. The group has also developed a “safety manager development and employment support” program in connec-tion with a government project, and has successfully fostered 60 skilled professionals. Of the professionals who have completed the program, 24 people later found employment with partner companies of the E&C Group, and 5 found employment with other non-partner companies. The experience-driven safety training of the Safety Academy was also made available to employees of partner companies. In 2020, a total of 726 people including safety and construction managers in partner com-panies completed the safety-related training programs.

Special page: zero serious accident policy

Securing the safety of our employees, partner companies, and custom-ers is the most important issue for Samsung C&T as it operates a con-struction business, which is an industry with a relatively higher risk of accidents than others, and a resort facility that is visited by about 8 mil-lion people annually. Samsung C&T is taking all necessary measures to protect life and secure safety, which is the foundation of human integrity. In particular, the company always operates with the target of zero seri-ous accidents including fatal accidents. With this goal, it set up serious accident eradication task forces in all of its business groups in 2021. In February 2021, the Board of Directors received health and safety man-agement plans for each area of business, and in April, the ESG Commit-tee discussed the main content of the Serious Accident Punishment Act and its implications on the company, enhancing health and safety man-agement from the level of the Board of Directors.

Key directions of implementationTo eradicate serious accidents, Samsung C&T has set company-wide key directions for implementation and instructed the serious accident eradica-tion task forces in each group to establish detailed action plans.

operating guidelines and by conducting intensive inspections and fun-damental improvements of the processes and tasks that are vulnerable to serious accidents.

The E&C Group will continue to implement the tasks in the latter half of 2021. This includes improving the competency of the health and safety organization, improving the health and safety operation systems of part-ner companies, establishing Design for Safety (DfS) work standards, and preventing fundamental causes of defects in materials and products to remove risk factors related to the use of faulty raw ingredients. The group will also continue to work hard to establish a safety culture by conducting additional risk analyses in accordance with the promulgation of the enforcement ordinance, devising a direction of response, and sup-plementing the existing operating system.

The T&I Group formed its task force with 13 employees from related fields including the human resources, legal, and RM departments. The task force is currently analyzing the recently enacted and amended safe-ty-related laws and their implications on business operations, and is training employees in the relevant content. The task force also analyzes potential risks associated with each business model and prepares and implements methods of improvement.

In particular, the task force identifies areas of business that have high risks of serious accidents, such as the chemical tank terminal project, and operations that involve disassembly and sale of facilities of related companies. For those high-risk business areas, a dedicated inspector is permanently assigned or visits the site regularly to perform inspections. In addition to this, carriers and in-house vehicles also receive regular inspections in order to prevent accidents that can occur during domestic transportation or business trips.

The Fashion Group’s task force is formed with the participation of 11 related departments including safety, human resources, legal, manufac-turing, logistics, and sales strategy. In order to establish accident preven-tion systems at business sites, the group will conduct safety awareness training for all employees in the latter half of 2021, inspect and analyze manufacturing processes and tasks vulnerable to serious accidents, improve the foundation and competency of safety management organi-zations, and reinforce the safety and environment standards, operating guidelines, and emergency response procedures.

The Resort Group is under special obligation to prevent safety-related accidents involving customers that use the business facilities as well as occupational accidents for employees. As such, it has established a com-pany-wide accident prevention system by creating a task force with the participation of business divisions including Safety, Human Resources, Legal, and Management Support and assigning a safety management role to each division. It first reviews and analyzes the appropriateness of the current safety management at tourist attractions, zoos, and others, then establishes management plans by deducing additional risk factors. In particular, attractions, facilities, hazardous machinery, and equipment have undergone a safety diagnosis from a external dedicated organiza-tion in the first half of 2021. The group also completed safety training for all employees, executives, and partner companies, and is currently operat-ing a professional inspection group for on-site safety management. It will revise the construction-related partner company management guidelines and distribute safety guidelines by the end of the first half of this year.

Serious accident eradication activitiesThe serious accident eradication task force of the E&C Group at Samsung C&T consists of members from all departments, including the ENG Center, M&E Center, Procurement Office, and Human Resources Team. The task force has identified 30 detailed tasks that need to be achieved for actual prevention of accidents, which involves improving vulnerable factors and risks in constuction sites as well as potential legal risks.

By specifying the details of the tasks, the E&C Group is realizing the establishment of a safety culture. In 2021, the group conducted safety awareness training for all employees, creating a consensus around the importance of safety. Furthermore, the group improved the health and safety system by reorganizing the safety and environment standards and

Logistics center safety inspection checklist

Fire risk inspection

· Evacuation and fire prevention facilities: Whether emer-gency exits and fire shutters are free of obstacles, etc.

· Firefighting facilities: Whether pipes and fire detectors are secured properly, etc.

· Electricity: Whether too many cables are connected in one outlet

· Non-smoking in construction sites

Facility inspection

· Safety facilities: Handrails, stairs for mobility, etc.· Conveyor: Emergency stop switch normal operation · Lift

Other health and safety management-related activities

· Compliance with forklift safety regulations (qualification of drivers, key management, etc.)

· Cleanliness of workshop, breakroom, changing room, etc.

The Resort Group establishes safety management standards for all part-ner companies and conducts training and inspections, with awards given twice a year for partner companies that demonstrate excellent safety management. In 2020, the group was able to provide systematic support for enhancing the safety and health management capabilities of partner companies working at Everland and Caribbean Bay by participating in the mutual growth program conducted by the Korea Occupational Safety and Health Agency (KOSHA). As a result, the Resort Group and all of its part-ner companies acquired an “A” grade from KOSHA in recognition of their improvements in the safety management criteria.

Main safety indicators1)

Distinction 2018 2019 2020

Number of accidents(cases)

Total 94 204 224

Korea 77 186 214

Overseas 17 18 10

Employees 12 20 9

Partners 82 184 215

Number of fatalities(persons)

Total 4 42) 1

Employees 1 1 0

Partners 3 3 1

1) The safety indicators include employees and partner companies. “Employees” include per-manent, contract, locally hired, and part-time employees

2) Correction of the number of fatalities and accidents in 2019 with the approval of industrial accidents (non-work-related) by the Korea Worker's Compensation & Welfare Service in April 2021

Establishment of safety management organization and competency

improvement plans and reinforcement of the IT system

3

Reviewing and reinforcing safety and environment standards,

operating guidelines, and emergency procedures

4

Safety awareness training for all employees

1

Intensive inspection and fundamental improvement of manufacturing

processes and tasks that are vulnerable to serious accidents

2

The Fashion Group supports regular safety management for logistics center partner companies. In 2020, safety inspections were conducted together with logistics center partner companies more than once a week, accounting for a total of 72 inspections in one year. Improvement measures for non-compliance matters were also discussed and exe-cuted immediately. Furthermore, risk evaluations are conducted for all processes of partner companies through an external specialist company, and the group offers support for the establishment of improvement measures for the risks discovered in each process. Also, when establish-ing a new consignment sales store, a safety meeting for preventing con-struction accidents is held with the construction partner company where risks are preemptively identified and handled, and more than one safety inspection is conducted each week during construction.

Construction Safety Employment Academy for partner companies

Company Overview

About Samsung C&T

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Social

Governance


1. Risk Management







8. Compliance

Appendix










26 27

Key area 4

Raising the level of human rights management

Samsung C&T deeply agrees with the belief that human rights are a universal value that the entire human race should uphold. In line with this belief, the company has independently established a human rights management system in order to respect the integrity and value of all stakeholders who come to have a relationship with the company in the global supply chain, and to fulfill their social responsibilities. Samsung C&T also respects the freedom of association for all workers, and guarantees the three labor rights protected under the Constitution of the Republic of Korea. The company will continue to strive to make positive impacts on the lives of all customers, local communities, workers, and other stakeholders throughout our business sites while minimizing any negative impacts caused by our business activities.

Human rights management policy Samsung C&T not only strictly follows the laws and regulations related to labor and human rights, but has also adopted “Respect for basic rights and spreading a corporate culture of mutual cooperation” as a key prin-ciple to the successful establishment of an ESG management system, and has built an ESG inspection system for its business sites and part-ner companies. The ESG inspection system also involves inspection and assessment of human rights risks, and ensures fulfillment of the respon-sibility to respect human rights according to the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multina-tional Enterprises. Furthermore, Samsung C&T conducts ESG inspec-tions covering human rights and environmental risks on partner compa-nies, and includes human rights-related items in its criteria for selecting new partner companies.

Human rights violation risk inspection

Inspection of human rights protection in business sitesSamsung C&T uses checklists based on international regulations to inspect the ESG criteria for business sites in each group. Through this process, the company identifies labor and human rights issues and areas of vulnerability, and business sites where such issues and vulner-abilities are found and formulates plans for improvement. Execution of such improvement measures are regularly monitored to ensure that they are properly implemented and that actual improvements are made.

The inspection is basically done through document reviews to allow cov-erage of as many sites as possible, although on-site visits are also made for critical management sites. In particular, external labor and human rights experts participate in the on-site inspections in order to ensure objectivity and professionalism. Various methods including document review, on-site inspection, and interviews are used to hear the voices of stakeholders and identify practical human rights issues.

According to business site inspection results, the E&C Group per-formed additional training sessions to prevent non-completion of compulsory training courses such as sexual harassment prevention training. The group also revised the content of labor contracts so that working conditions of daily wage workers are visibly expressed in the employment contract. The T&I Group inspected major overseas busi-

Business site inspection outcome

Business site inspection standard

ness sites, revised work contracts so as to explicitly express prohi-bition of child labor, and expanded daycare centers. The group also reviewed and improved the work shift system in order to comply with legal working hours stipulated by local laws, and reinforced training programs to increase legal compliance and work competency levels to ensure that the rights of workers operating in overseas business sites are protected.

Partner company inspection outcome

* Changed the number of business sites for inspection from 99 to 100 for 2019 (including one Gumi textile mill in the Fashion Group)

Inspection items Key inspection items

Voluntary labor Creation of work contract, prohibition of forced labor, prohibition of ID storage, etc.

Child labor Strictly verify the legal age

Legalworking hours

Comply with 52-hour workweek system and the weekly rest system

Wages and benefits

Respect the legal minimum wage and state information related to wages on work contracts, etc.

Humane treatment

Respect maternity protection measures such as mater-nity leave; operate a monitoring channel against sexual harassment and violence; guarantee severance pay, etc.

Anti-discrimination

Do not discriminate based on sex, religion, race, or type of employment, promotion, and education opportunities

Freedom of association

Guarantee freedom of association; eradicate disadvantages for labor union activists, etc.

Provision of opportunities for

education and training

Whether education opportunities are provided; proportion of employee benefits; proportion of

long-term employees, etc.

Other Whether summer breaks are guaranteed and local human rights issues are monitored

Group Partner companies for inspection Results of inspection

E&C 532 construction partner companies 441 companies

Fashion 223 sewing partner companies 119 companies

Resort 8 partner companies with over KRW 3 billion in annual transactions 8 companies

Total 763 companies 568 companies (inspection rate 74%)

* Number of partner companies subject to inspection at each business group differ from 2020 due to change in target selection criteria

2019 2019 20192020 2020 2020

10281 79%

10077 77%

Number of business sites for inspection

Number of business sites inspected Inspection rate

Inspection of human rights protection in partner companiesAll business groups of Samsung C&T operate an ESG inspection sys-tem for partner companies in effort to fulfill their social responsibility to respect the human rights of all stakeholders throughout the supply chain both domestically and abroad. The evaluated items include crite-ria in the fields of labor, human rights, safety, environment, and compli-ance. In the future, Samsung C&T will expand the system to include eval-uation criteria concerning environmental pollution, energy and water consumption, atmosphere and chemical management, and others to drive the ongoing growth of partner companies. Furthermore, Samsung C&T contributes to the promotion of human rights in the supply chain by reviewing their ESG evaluation results when determining contract renewal or new contract signing with partner companies.

Key inspection items for partner companies in relation to labor/human rights

Item Major content of inspection

Training Whether training on labor/human rights has been conducted

Work contract Creation, distribution, and storage of work contracts for individual workers

Working hours Enforcement of overtime and weekend holiday systems, payment for overtime, etc.

Discrimination Whether inequalities exist in promotion and training opportunities based on employment type, nationality, etc.

Child labor Prohibition of employment under age of 18, and compliance with legal requirements for workers under 18

Forced labor Compliance with regulations on overtime consent, and prohibition of storing ID without consent

Migrant workers Legality of hiring foreign workers in construction sites, and input work

Establishment of inspection plans

for next year* Improving proce-dures and checklists

as necessary

* The size and importance of partner companies are considered to vary the method and frequency of inspections in different areas.

Inspection process

· Establishment and execution of improvement plans for each busi-ness site and partner company

Implementation of improvement

activities

· Monitoring progress of improvement areas

Monitoring implementation of

improvement activities

· Communication of major annual activities through Sustainability Report, etc.

External communication

Risk assessment

· Inspection of current status (inter-nal inspection/inspection by visit)

· Identification of problems; identifying improvement areas

The E&C Group conducts a “Construction Performance Competency Evaluation” for construction partner companies twice a year. This evalua-tion includes ESG criteria such as environmental, safety, and quality, and the companies whose safety evaluation scores are at the bottom 10% of each trade are excluded from registration, or restricted from bidding. The group also stops trading with the companies whose overall evalua-tion scores are in the bottom 10%.

Since 2019, the E&C Group has included 13 items related to labor and human rights in addition to technical, financial, and management com-petence in the annual partner company selection process. Of the 1,380 companies that are subject to the evaluation, the group has completed the labor and human rights evaluation for 1,100 companies. For partner companies which had never worked with Samsung C&T before, a meet-ing was held for each in the first and second half of the year to share the E&C Group’s main policies. The group will continue to issue guidance on a regular basis and provide training to ensure that our partner compa-nies fulfill their responsibility to respect human rights in accordance with the UN Guiding Principles on Business and Human Rights.

Efforts to protect human rights

Eradication of forced labor and child laborSamsung C&T agrees that forced labor and child labor represent seri-ous human rights violations that cannot be permitted under any cir-cumstance. The company is also participating in various efforts by the international community to eradicate such practices. Samsung C&T strictly forbids the use of forced labor and child labor in all business sites and partner companies. In order to prevent violations of human rights caused by faulty work contracts, the company’s policy requires all busi-ness sites to prepare work contracts in the native language so that local workers can accurately understand the full content of the work contract. The human rights risk evaluation process conducted by Samsung C&T for partner companies also includes items on forced labor and child labor.

Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

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28 29

The E&C Group hosts various themed meetings for female employees to help them with networking. In 2020, the E&C Group became the first in the construction industry to appoint a female executive, and is con-stantly working hard to increase female representation in the group.

The T&I Group runs a training course targeting excellent overseas employees in order to diversity the nationality profile of the employees and foster global talents. The group also dispatched female employees to MBA courses and regional study programs to increase representa-tion of females in leadership positions and foster the next generation of female leaders.

Each business department (team) of the Resort Group runs its own com-munication channel for female employees called “With Me”. The group also hosts meetings with female employees at least twice a month to encourage interaction between female employees and to facilitate com-munication with the company on various problems including potential gender discrimination issues.

Number of employees who used parental leave(Unit: persons)

(Unit: %)

2018

2018

2019

2019

2020

2020

211

44

8884

88

8384

90

180

30

255

86

Number of male employees who used parental leave (persons)

Number of employees who used parental leave

Rate of return from parental leave

Rate of employees staying with the company for more than 12 months after returning

Furthermore, Samsung C&T published a guidebook containing informa-tion on various support systems that are available for the employees in relation to maternity and parenting in order to minimize difficulties, from applying for maternity leave to returning to work.

Protection of maternitySamsung C&T has put various systems and programs in place to ensure that employees with new family members do not face career disruption or discrimination in the process of childbirth or child rearing. Such pro-grams include flexible adjustment of work hours, childcare centers in the workplace, and family care leaves.

In 2019, the paid paternity leave for male employees was extended from 5 days to 10 days so that both male and female employees can focus on the new family member and other domestic matters regardless of their gender. In 2020, 320 employees benefited from the paid leaves through this program. In addition to this, the group extended the parental leave from 1 year to a maximum of 2 years, introduced the family care leave program, and extended the eligibility criteria for the family care leave. In 2020, 384 employees used the family care leave to promote their work-life balance.

In addition to this, the group has implemented internal policies related to maternity protection, and is currently operating maternity rooms, which are safe spaces exclusively available to female employees. The group is also trying its best to create a family-friendly organizational cul-ture by providing childbirth allowances and gifts.

As a result of such efforts, the number of employees who used parental leave increased by 40% in 2020 in comparison to the previous year. As a proud result of the group's effort to create a family-friendly organiza-tional culture, the number of male employees who used parental leave increased significantly.

Key area 5

Strengthening collaboration with partner companiesTo Samsung C&T, partner companies are not merely counterparts, but are companions for sustainable growth. Samsung C&T strictly follows the laws and regulations concerning fair trade and subcontracting. Samsung C&T not only pays fair prices for services provided by partner companies, but also promotes mutual growth with partner companies by offering financial support, technical support, human resources development, joint overseas projects, and so on.

Mutual growth strategyTo promote sustainable mutual growth with partner companies, Sam-sung C&T has established the “three major strategies for mutual growth” and has continued promoting activities to uphold subcontract transpar-ency, strengthen mutual cooperation systems, and enhance competi-tiveness of partner companies.

Fair and transparent transactionSamsung C&T is implementing various policies to prevent risks that can occur in business relationships with partner companies and to reinforce mutual cooperation.

The E&C Group operates all transaction processes transparently by run-ning the “Partner’s Portal” system to eradicate unfair contract elements in each step of the transaction. The group also uses a subcontract pay-ment monitoring system to ensure that there are no overdue payments. The “Co-prosperity Payment System” also prevents partner companies from delaying payment to workers or secondary subcontractors. In 2020, a total of KRW 3.7 trillion was paid to 368 partner companies in 49 sites through the co-prosperity payment system.

Three major strategies for mutual growth

· Secure fairness and transparency in every step of the partner company selection-contract-payment process

· Listen to VOC from partner companies· Discover tasks for co-prosperity

· Subsidize joint technology development

· Protect technology· Training for partner company employees

Uphold subcontract transparency

Strengthen mutual cooperation systems

Enhance competitiveness of partner companies

Diversity and anti-discriminationSamsung C&T respects the diversity of all employees, and it is the compa-ny’s belief that organizations that embrace members from diverse back-grounds can achieve continuous innovation. Accordingly, the company has implemented various policies that encourage integration of this pro-motion of diversity and tolerance into the corporate culture and policy.

Samsung C&T offers various training courses on this subject to all of its business groups in order to prevent inequalities concerning employ-ment, dismissal, promotion, pay grade, education and training opportu-nities, and so on based on sex, race, age, disability, religion, and social status, and to raise awareness of employees regarding this matter.

Training related to diversity and anti-discrimination

Group Description

AllPrevention of sexual harassment and workplace bullying, and raising awareness regarding people with disabilities - Mandatory training courses for all employees

E&CDiversity & Inclusion- Included in training program for new employees, Global

Leadership Course, Global Appreciation Course, etc.

Fashion Gender equality training- Mandatory training courses for all employees

Overseas employee programs offered by the T&I Group

Target Program Description

Excellent overseas

employees

GA (Global Assignee), GT (Global Trainee)

Training and work in headquarters

Excellent overseas leaders

GEC (Global Executive Course),

GDC (Global Director Course)

Increasing understand-ing of the group’s global

business strategy and improving leadership

Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix










30 31

The Fashion Group signed a “fair trade and mutual growth agreement” with 102 top-tier partner companies in 2020. The Fashion group also encouraged the top-tier partner companies to engage in fair trade with the lower-tier partner companies, leading 33 top-tier partner companies to sign a “fair trade and mutual growth agreement” with 49 lower-tier partner companies. In addition, a payment monitoring system was intro-duced in 2019 to monitor the proportion of cash payments between the top and lower-tier partner companies and the payment due dates. Through such efforts, the Fashion Group prevents delays in payment and encourages partner companies to improve payment delivery terms.

The Resort Group also clearly states and strictly follows the terms related to fair trade in contracts signed with all partner companies.

Strengthening cooperation with partner companiesSamsung C&T constantly initiates partnership activities to share the vision of mutual growth with partner companies and strengthen the relation-ship based on mutual trust. The E&C Group is strengthening the rela-tionship based on mutual trust by engaging in various activities at “part-ner company meetings” such as listening to difficulties and performing improvement activities. In 2020, the E&C Group hosted an online “Part-ners’ Day” to award 10 excellent partner companies. Aside from this, the group is offering project briefing sessions for partner companies who wish to expand together with us into overseas projects, and is making efforts to strengthen partnerships by joint participation in bidding.

Governance Realization of board-centered responsible business management

Enhance independence, diversity, and professionalism of the Board of Directors, and pursue sustainable growth through transparent, responsible management centered on the Board of Directors.

Key area 6.

Practicing transparent, responsible business management

Improve the structure and role of the Board of Directors and strengthen communication

E&C Group online Partners’ Day

Fashion Group’s Mutual Growth Day

Online Mind-set Program for Partner Companies

57th General Shareholders' Meeting

Enhancing competitiveness of partner companies

Financial support for partner companiesThe E&C Group at Samsung C&T implemented an advance payment sup-port system to secure financial liquidity for partner companies in early stages of projects. Through this system, 108.4 billion KRW was provided in advance payments, and the group also waived the surety commissions for partner companies in line with this system. Other than that, the group has prepared 20 billion KRW in funds dedicated to interest-free manage-ment funds, and has also prepared 80 billion KRW in co-prosperity funds which can be loaned by partner companies to finance their operation. The Fashion Group funded co-prosperity funds of KRW 15 billion to guarantee partner companies' interest reductions or exemptions for loans for facility investment and technology development. The Resort Group, on the other hand, provides office spaces, dormitories, and warehouses free of charge to small and small business partners, and grants the privilege to use our commuter buses to employees of partner companies.* Co-prosperity funds target size for 2021: 95 billion KRW

Technical support for partner companiesSamsung C&T actively supports partner companies to improve their technical competencies to promote mutual growth. The E&C Group proactively provides technical support for partner companies through annual events such as joint R&D projects, joint patent registration and application, and the technical data bailment system. In 2020, the group provided supports for technical development support totaling 3.75 billion KRW to partner companies. The Fashion Group continues to improve technology and quality through professional technicians (QM). In the Resort Group, whenever training sessions or meetings related to technology are held, the Department of Planning and the Department of Design also attend the meetings to share their know-how and experi-ence in order to ensure that the construction partner companies for the resort park can effectively absorb the technology.

Human resource management support for partner companiesThe E&C Group offers training programs for employees hired by part-ner companies on topics such as work efficiency, quality improvement, human rights protection, and more. In 2020, a total of 181 partner com-pany employees completed online training programs on project man-ager competency, labor rights, and human rights. The group also offered educational programs for self-development and core competency which were completed online by 4,845 employees.

The Fashion Group hosted a “Mutual Growth Day” online, and awarded 15 excellent partner companies. The group also listens to and resolves difficulties that partner companies experience via the complaint report-ing system, called Sinmungo, as well as through meetings. The Resort Group encourages partner companies to actively participate in the oper-ation of the business sites through various routes instead of being con-fined to a passive role as contractors. The group adopts opinions from partner companies with an open attitude, and rewards partner compa-nies accordingly.

Company Overview

About Samsung C&T

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Social

Governance


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8. Compliance

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32 33

Key area 6

Practicing transparent, responsible business managementSamsung C&T will strive to establish a governance system that corresponds to global standards by enhancing the independence, diversity, and professionalism of the Board of Directors.

Key governance improvement activities

Enhancement of independence, diversity, and professionalism of the Board of DirectorsSamsung C&T separated the chairman of the Board of Directors (BOD) and the CEO roles to ensure the independence of the BOD in 2018, and adopted the lead independent director system in 2020 to represent independent directors. In March 2021, an independent director was appointed as the chair of the BOD to further strengthen the indepen-dent checks and balances function of the board.

Additionally, Samsung C&T’s directors consist of individuals of diverse races, sexes, and nationalities, with experience and skills in a variety of fields. Philippe Cochet, who was the Chief Productivity Officer at GE, was recruited as a director in 2018. In 2020, female financial expert Jan-ice Lee, employment/labor policy expert Byung Suk Chung, and fair trade and corporate governance structure expert Sang Seung Yi were appointed as independent directors. In March 2021, administrative and financial expert Joong Kyung Choi, who maintains a global network, was appointed to the BOD so that the board could execute the functions of company management, strategic decision-making, and effective super-vision of management.

Enhancement of shareholder-friendly policiesSamsung C&T has strived to enhance the rights and convenience of shareholders by introducing an electronic voting system at the general meeting of shareholders in 2020 and the electronic proxy solicitation in 2021 and by broadcasting the general meeting of shareholders in real time online and via mobile phones.

Also, in 2020, a shareholder return policy for the next three years (2020-2022) was announced to create resources for future growth and to enhance shareholder value. Based on this, the predictability of dividends will increase and a gradual increase in the total amount of dividends is expected. In April 2021, dividend payments amounted to 379.4 billion KRW, a 15% increase compared to last year.

Communication with stakeholdersSamsung C&T appoints at least one Shareholder Advocate among its independent directors in the ESG Committee to enhance communi-cation between external stakeholders and the Board. The Shareholder Advocate works to create policies and activities for protecting share-holder rights through various means, such as delivering meaningful suggestions to the Board and the ESG Committee after meeting with key shareholders, investors, and financial institutions. In 2020, two inde-

Category Name Sex Area of expertise Major career Date offirst appointment End of term

Indepen-dent

director

Byeong Suk Chung Male Administration and

Employment/Labor StandardsHonorary professor at Korea University

of Technology and Education Mar. 20, 2020 Mar. 20, 2023

Phillippe Cochet Male Business Management Former Chief Productivity Officer at GE Mar. 22, 2018 Mar. 19, 2024

Janice Lee Female Finance/Accounting andRisk Management

Former Vice President of Standard Chartered Korea;Advisor at Kim & Chang Law Firm Mar. 20, 2020 Mar. 20, 2023

Sang Seung Yi Male Fair Trade and

Governance Structure Professor of Economics at Seoul National University Mar. 20, 2020 Mar. 20, 2023

Jong Kyeong Choi Male Administration and

Finance/Accounting Chairman of the Board at GuideStar Korea Mar. 19, 2021 Mar. 19, 2024

Executivedirector

Jung Suk Koh Male Business Management President & CEO (T&I) Mar. 22, 2018 Mar. 19, 2024

Secheol Oh Male Business Management President & CEO (E&C) Mar. 19, 2021 Mar. 19, 2024

Seunghwan Han Male Business Management President & CEO (Resort) Mar. 19, 2021 Mar. 19, 2024

Joonseo Lee Male Business Management Executive Vice President (Fashion) Mar. 19, 2021 Mar. 19, 2024

Composition of the Board of Directors (As of March 2021)

pendent directors, including a non-Korean independent director, were appointed as Shareholder Advocates to expand the scope of communi-cation with overseas shareholders and investors.

Meanwhile, Samsung C&T has been publishing a Corporate Governance Report since 2017 to disclose the status of governance structure policies, shareholder rights, the BOD, and audit organizations to the public. In 2020, the company complied with 14 of the 15 key indices of establish-ing a transparent governance structure put forth by the Korea Exchange.

Type Key indexCompliance

⃝

Share-holders

① Provide 4-week prior notice of Annual General Meeting (AGM) ∨

② Implement electronic voting system ∨

③ Avoid holding AGM on AGM-concentrated date ∨

④ Notify dividend policy and future dividend plan to shareholders at least once a year

∨

BOD

⑤ Prepare and operate CEO succession policy (including contingency appointment policy)

∨

⑥ Prepare and operate internal control policy ∨

⑦ Separate BOD chairperson and CEO roles ∨

⑧ Adopt cumulative voting system ∨

⑨ Establish policy to prevent appointment of executives who are accountable for a decrease in enterprise value or a violation of shareholders’ right

∨

⑩ Non-existence of long-term independent directors appointed for more than 6 years

∨

Audit organi-zations

⑪ Provide training for internal auditing body at least once a year ∨

⑫ Establish an independent internal audit organization (internal audit support organization)

∨

⑬ Appoint accounting or financial expert(s) to the internal auditing body

∨

⑭ Hold a meeting with external auditors by the internal auditing body once every quarter without the participation of management

∨

⑮ Prepare procedures by the internal auditing body to access important management information

∨

Compliance with key indices (as of March 2021)

Board of Directors

Composition of the Board of DirectorsIn order to guarantee the independence and professionalism of the BOD, Samsung C&T operates a BOD with a majority of independent direc-tors – five independent directors and four executive directors. The five independent directors are those whose interests and qualifications have been verified by the Independent Director Recommendation Committee based on the related regulations and company rules. According to the Articles of Incorporation, Samsung C&T excludes candidates who are or have been executives or employees of the company or its affiliates within the past two years, major shareholders, or those who are related by blood to other directors. The term of directors is three years, and they are appointed through the approval of the general meeting of share-holders.

Operation of the Board of DirectorsThe meetings of the Samsung C&T BOD are separated into regular and temporary meetings based on Article 7 of the Regulations of the BOD. The regular meetings are held once every quarter, and the temporary meetings are held whenever deemed required. In 2020, a total of eight BOD meetings were held to discuss matters related to the general meet-ing of shareholders, external donations, transactions with specially related persons, and others.

Additionally, various programs such as briefing sessions on agenda items, visits to domestic and overseas workplaces, and management status briefings are provided to independent directors to enable them to thoroughly understand the businesses and operational environment of Samsung C&T.

Company Overview

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34 35

* Attendance by four previous Governance Committee members and two previous CSR Committee members

ESG Committee Independent Director Rec-ommendation Committee Audit Committee Related Party Transaction

CommitteeCompensation

CommitteeManagement

Committee

Byeong Suk Chung (Committee Chair)Phillippe Cochet

Janice LeeSang Seung Yi

Jong Kyeong Choi

Phillippe Cochet (Committee Chair)Byeong Suk Chung

Sang Seung Yi

Janice Lee (Committee Chair)Byeong Suk Chung

Sang Seung Yi

Lee, Sang-seung (Committee Chair)

Janice LeeJong Kyeong Choi

Jong Kyeong Choi (Committee Chair)Byeong Suk Chung

Janice Lee

Jung Suk Koh (Committee Chair)

Secheol OhSeunghwan Han

Joonseo Lee

Prior review of matters related to company management that

have a significant impact on shareholder value; policy pro-posal to improve shareholder value; deliberation of matters

related to corporate social responsibility

Recommendation of candidates for indepen-dent directors after veri-

fying their independence, expertise, and suitability

Review of the adequacy of the company's financial statements; procedures

and results of audits conducted by accounting firms; review of the results

of business audits and compliance audits

Monitoring of large-scale internal transactions that exceed a specified value;

Review of reports on internal transactions;

ordering of investigations; request for corrections

Review and decision on the maximum remuneration

for registered directors and compensation system; other remuneration-related mat-ters delegated by the BOD

Review and decision on matters delegated by

the BOD; other import-ant management-re-

lated matters

Committees within the Board of Directors

Composition of committeesSamsung C&T operates six committees under the BOD: The ESG Committee, Independent Director Recommendation Committee, Audit Committee, Related Party Transaction Committee, Compensation Committee, and Man-agement Committee. All committees, excluding the Management Commit-tee, consist entirely of independent directors to maintain independence from company management. In particular, the Audit Team, which is responsible for conducting internal auditing activities, is situated under the Audit Committee to ensure independent execution of accounting and business audits.

The decisions from the committees on matters entrusted to them from the BOD maintain equal power with decisions made by the BOD. Matters on the composition, operation, and permissions of all committees follow the written regulations for each committee.

ESG CommitteeSamsung C&T expanded and reorganized the Governance Committee

Evaluation and compensation of the Board of Directors

Evaluation of the Board of Directors Samsung C&T analyses and evaluates the annual operation of the BOD and the activities of board members. Key evaluation criteria include directors’ rate of participation in BOD and committee meetings, their compliance with responsibilities, level of understanding of company management, professionalism, and others. In 2020, the activities of the BOD and its committees were evaluated from an objective perspective by an external advisor under the ESG committee. The results were then used as reference materials to decide on matters for improving future governance and for identifying implementation tasks.

Compensation of directors The limit of compensation for the directors of Samsung C&T is consid-ered based on the business performance and level of compensation of competitors. It is determined by the Compensation Committee and approved at the general meeting of stockholders. The compensation of executive directors consists of an annual salary and bonuses, perfor-mance-based goal incentives, performance incentives, and long-term performance incentives, and are determined in consideration of posi-tion grade, nature of duty, and performance.

from the BOD to the ESG Committee in 2021 with consideration for the importance of ESG management. The ESG Committee conducts reviews and inspections of non-financial achievements, risks, and enhancement of shareholder value for the sustainable development of Samsung C&T. The Committee consists of all five independent directors.

The ESG Committee meets once every quarter in principle, and more often if required. In 2020, a total of six meetings were held to review and make decisions on plans for non-financial sectors, future plans for the coal business, and activities to protect the rights and interests of shareholders.

Furthermore, an external advisory group under the ESG Committee was formed in May 2020 to enhance expertise in the ESG field and provide insight from an objective perspective. The selected experts in academia and related organizations of the management structure, labor, human rights, mutual growth, and environment sector engage in regular communication, consultations, topic research, communication with related parties, and training with the ESG Committee.

Activities of 2020 (previously the “Governance Committee”)

Date Proposal Details Attendance

Jan. 21, 2020

1. Additional appointment of Shareholder Advocate Approval

6/6*2. 2020 Report on governance improvement measures Report

3. 2019 4Q Report on the activities of Shareholder Advocates Report

Feb. 20, 20201. 2020 Report on plans for the non-financial sectors Report

4/42. Shareholder return policy evaluation Evaluation

May 27, 2020

1. Appointment of Shareholder Advocates Approval

4/42. Report for external advisory panel operation (plan) Report

3. 2020 Corporate Governance/CSR Report Report

Jul. 20, 2020

1. Report on the activities of the E&C and Fashion Groups for non-financial sectors Report

4/42. Report on external donation achievements for the first half and plans for the second half Report

3. Report on plans and results for Shareholder Advocates' activities Report

4. Report on the application of GHG emissions trading Report

Sep. 23, 2020 1. Review on participation on the Vietnam Vung Ang 2 Coal-fired Power Plant project Report 4/4

Oct. 23, 20201. Report on Shareholder Advocates' activities Report

4/42. Discussion on future plans related to the coal business Report

Goal incentives are provided twice a year according to the achievement rate of management goals, and are based on a comprehensive evalu-ation of financial and non-financial KPIs such the price-earnings ratio, safety and environment indicators, Performance incentives are provided once a year in the case of EVA (Economic Value Added) surpluses, and long-term performance incentives are paid out in installments over three years based on achievement sin terms of performance indicators such as return on equity, return per share, and pre-tax profit.

For other members of management, goals related to ESG management such as safety, environment, partner company management and mutual growth, organizational culture (employee satisfaction), and compliance are assigned according to the characteristics of the work and reflected in the Management by Objectives (MBO), which is then linked to short-term and long-term performance compensation.

Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix










Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









38

Risk Management

50

Information Security

40

R&D and Innovation

52

Social Contribution

42

Environmental Management

55

Compliance

44

Organizational Culture

47

Product/Service Accountability



Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









38 39

Direction 11 core risks

Preemptive response to change

1. Economic environment - Economic/natural disasters, exchange rate/interest rate, etc.

2. Policy/regulatory changes - Changes in government policies, laws, and regulations

Creation of economic growth and value

3. Business portfolio - New businesses/investments, M&A, business adjustments, etc.

4. Financial stability - Cash flow/financial structure, credit rating

5. Business group operations - Core risks related to operations of business groups

Operation of a transparent organization

6. Transparency in accounting - Accounting/payment settlement, public disclosure, taxes

7. Compliance with laws and ethics - Compliance with laws, corruption, information security

Fulfillment of social responsibilities

8. Labor/human rights - Labor/human rights policies, working environment/labor-management

9. Safety/environment - Climate change, emissions/pollution, safety/health

10. Mutual growth - Mutual growth and sustainability of partner companies

Communication with stakeholders 11. Stakeholders - Shareholders/investors, rating agencies, NGOs, etc.

11 core risks for Samsung C&T

Risk management process

Implementation of a corporate-level risk management systemIn accordance with increasing uncertainties in the business environ-ment, Samsung C&T is operating a corporate-level risk management system from the perspective of sustainable management. Samsung C&T has defined 11 core risk areas—including economic environment, policy/regulatory change, business portfolio, financial stability, sectoral business operation, transparency in accounting, compliance with laws and ethics, labor/human rights, safety/environment, mutual growth, and stakeholders—all of which require corporate-level management, and has established management processes for these risks.

Risk

allo

catio

n m

atrix

BOD

‧ Economic environment‧ Business group operations‧ Financial stability

‧ Policy/regulatory changes‧ Transparency in accounting‧ Compliance with laws and ethics

‧ Compliance with laws and ethics‧ Labor/human rights‧ Safety/environment‧ Communication with stakeholders‧ Co-prosperity‧ Information security

Management Committee ESG Committee Audit Committee Related Party Transaction Committee

E&C T&I Fashion Resort

Economic environment Changes in policy/regulations Business portfolio Compliance with laws and ethics Stakeholders

Risk Management Committee (RMC)

Corporate Strategy Office

Risk Management

1

Through risk management, Samsung C&T intends to internally pro-mote economic growth and creation of value and to operate a trans-parent organization while externally focusing on preemptive responses to change, fulfillment of social responsibilities, and clear communication with stakeholders.

Risk management operating systemSamsung C&T delegates the 11 core risks to the BOD and professional committees according to their importance and characteristics. Through this delegation, Samsung C&T establishes a risk management process that is complete and can be operated continuously, as well as a commu-nication system that connects the board, the company, and its business groups.

Risk management for each businessSamsung C&T conducts activities to identify risks in each area of business and preemptively respond to such risks in order to turn them into new opportunities.

The E&C Group is witnessing ever-growing risks as well as an increase in large-scale overseas projects. The group is thus constantly monitor-ing for risks that could impact business management and classifying such risks into two separate types–project risks and business environ-ment risks. For project risks, the group preemptively manages poten-tial risks at each step, from bidding to project execution, through the “PLCM (Project Life Cycle Management) Five-step Process System”, which applies the concept of a step-by-step life cycle, mainly by the risk management department. For business environment risks, the group selected core factors—fluctuation of commodity prices and exchange rate/oil prices, global recession, intensifying competition, compliance, and safety-related accidents. Accordingly, the group operates a routine risk management system that detects weekly changes and reports their business impacts to management. Moreover, the group strives to iden-tify mega-trends in the construction industry, such as population aging, the 4th Industrial Revolution, and climate change, as well as to produce response measures and business opportunities based on its human resources and technological capabilities.

The T&I Group leverages regional imbalances in supply and demand and price gaps to mediate transactions and engage in sales between the demand side and the supply side. Trading is thus largely impacted by global economic fluctuations and the conditions of the commod-ity market. The project organizing business has specific characteristics that require consideration of various factors, including global economic movements and the political and economic situations in each nation. In particular, there are ever-present risks of a global slowdown in growth or trade triggered by external shocks, such as the COVID-19 pandemic. Regarding the rapidly changing external environment, the T&I Group utilizes all 73 of the regional headquarters in 43 nations around the world to monitor clients, the industry, and the market in real time and

respond accordingly. Furthermore, the group manages risks preemp-tively through the “Global Risk Management Platform (GRMP)”, which standardizes management methods and procedures in the areas of market, country, partners, and claims.

The Fashion Group, in order to establish a sustainable business envi-ronment, introduced climate change as a major risk factor and is cur-rently reviewing the entire value chain thoroughly. The ongoing trend of strengthening public-private environmental regulations and the rapidly changing consumer awareness accelerated by the COVID-19 pandemic demand fulfillment of social responsibilities throughout the entire pro-cess of goods and service production and consumption. In particular, players in the fashion industry are expected to face greater challenges due to the industrial characteristics of consuming resources and produc-ing waste in large volumes. As such, the Fashion Group plans to preemp-tively respond to climate change risks in various ways such as by mak-ing products using eco-friendly materials and manufacturing methods, using recyclable packaging, and cutting down on fabric waste.

The Resort Group closely watches trends both in Korea and abroad in order to overcome risks that influence the business in general, such as changes in the domestic and international business environments and increases in uncertainty. The group also established a sustainable busi-ness system by setting up long-term strategies to boost the effective-ness of business and solidify the foundation for future growth. Although the unexpected variable of COVID-19 is prolonging low growth around the world, the 4th Industrial Revolution led by Big Data and AI should present new opportunities. Furthermore, the changing demograph-ics of the “aging population and growth of single-person households” should also present opportunities in a new market. Various regulations are being reinforced in the environmental field, but the concurrently emerging “eco-friendly” trend will become a powerful driving force in implementing new business. The Resort Group is devising and imple-menting a variety of strategies to transform risks from mere threats into new opportunities.


Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









Samsung C&T intends to improve the technological capabilities of the company through R&D, strengthen the competitiveness of its four groups and promote the ongoing growth and creation of maximum economic value through cooperation with customers and partners.

40 41

R&D investment and activitiesSamsung C&T is making company-wide efforts to achieve results in sus-tainable management based on differentiated technology. The E&C Group is expanding R&D investment to respond to social issues such as quality, safety, and environment while promoting the development of related technologies. In 2020, a total of 96.3 billion KRW was invested in R&D. 50 technologies that require preliminary verification of perfor-mance and applicability in relation to their quality and safety, such as the development of construction robots and the prefabricating method, were implemented as technological development tasks to enhance the completeness of the technologies. Productivity was improved through this, reducing the number of on-site personnel, which produced qual-ity improvement effects such as a reduction in defects. Also, the Fash-

ion Group and Resort Group are operating an R&D organization for the development of materials and lawn management to secure differentiated competitiveness.

Securing business competitiveness of business groupsThe E&C Group is establishing a competitive business portfolio based on advanced technologies with a focus on profitability-based stable growth, aiming to secure contracting competitiveness by enhancing customer sat-isfaction while concentrating on products with global competitiveness such as skyscrapers, roads, railways, energy generation, and storage facilities. Also, the standard of business management is being enhanced by strengthening work and risk management competitiveness in the ear-lier steps of each project.

Furthermore, support for technological advancement of partner companies is provided to secure a more fundamental competitiveness, with patents and utility models released for partner companies to use freely. In 2020, the company jointly applied for 18 patents and registered 17. There were also 49 cases in which 3.75 billion KRW was provided in terms of support through technological development contests.

R&D and Innovation

2In 2020, the E&C Group at Samsung C&T conducted a joint R&D project contest based on “Open Innovation”. The purpose of the contest was to discover new construction integration technology ideas and improve business competitiveness while expanding partnerships with the small-and medium-sized enterprises that possess such technologies to pursue mutual growth. Through the contest, the group received a total of 118 technology ideas and selected 32 projects from 29 companies as finalists. The winners included partner companies (20 companies) as well as non-partner companies (9 companies), and covered a wide range of technologies in areas including digitalization, modulation, and automation. The group financed the development of the selected technologies and commenced joint development processes. The group also supported field application by test bed.

Samsung C&T’s bilateral co-funding R&D project contest, “Open Innovation”

Combination of co-prosperity and innovation

Group R&D area Key examples of use in 2020

E&C

Construction-based technology, residential performance, floor impact noise

- Problem-solving and enhancement of project productivity by providing technological solutions

- Development of new technologies to reduce between-floor noise and enhance residents' satisfaction

- Increase in work efficiency through application of smart technologies

- Developed new technology based on digitalization/modularization/automation

- Expanded development of differentiated technologies for improving residential environments

Fashion Material development and fabric design

- Analysis of seasonal trend materials- Development and planning of new materials

- Established key brand materials- Developed new materials with appropriate

price points

Resort Lawn management - Lawn analysis and related consulting and research services

- External consulting for grass analysis contracting

The T&I Group provides total solutions for customers based on exper-tise in the chemical, steel, energy, material, and living industrial busi-nesses. In the chemical and steel trading business, the T&I Group is driv-ing growth by discovering new collaborative businesses with customers and partners, expanding the value chain, and developing adjacent prod-uct items. For the energy, materials, and living and industrial division, the group is developing and expanding business models in the renew-able energy and industrial material fields in line with the industry trends. The group is also actively promoting the development of new businesses in prospective fields that will drive future growth, such as e-commerce, mobility, and hydrogen.

The Fashion Group has strengthened its online business in line with the changing consumer shopping trends, and is steadily discovering new brands to develop into independent businesses through multi-brand stores. The group is improving the work processes of its online business with the goal of establishing SSFSHOP as a representative lifestyle plat-form in Korea. In order to strengthen the brand portfolio of the platform, the group has added its own online-exclusive brands and expanded con-tent outsourcing. In particular, the Fashion Group provides a new online shopping experience to customers by operating a customized product and styling recommendation service that utilizes AI algorithms. It is also giving full efforts to develop new content that appeals to Generation MZ consumers and to expand its live commerce business to increase contact points with customers that are not confined to physical spaces.

The multi-brand business steadily identifies new up-and-coming brands based on systematic operation and management of imported brands as well as the group’s multi-brand stores BEAKER and 10 CORSO COMO. Brands that are embraced by Generation MZ consumers as the new luxury brands, such as MAISON KITSUNE, AMI, and LEMAIRE, recorded more than double growth compared to the previous year despite the slowdown of the fashion market in 2020. The Fashion Group will con-tinue its efforts to identify new promising brands to satisfy new markets and customer demands.

The Resort Group endeavors to provide unique customer value by maxi-mizing its soft competitiveness, such as in the areas of plants, animals, and culture. The first birth of a baby panda in Korea delivered a message of hope to people amidst the suffering caused by the COVID-19 pandemic. It was a meaningful event through which the group’s expertise in animal breeding was able to receive external recognition. The group opened a new animal zone for young children, called “Pupa Town”, and introduced various programs such as close-up viewing of animals such as sloths and animal feeding, providing various experiences for customers.

Furthermore, the Resort Group creates new value in customers’ lives through new products/services and business strategies. The group introduced large LED screens and safari trams at Everland with the goal of transforming it into a digital smart space. It also collaborated with Kakao Mobility to improve the in-park transit system and introduce new customer services based on data and digital technologies such as smart queuing and mobile ordering.

The group is also expanding its landscaping business to indoor spaces, which differs from the previous direction of the business that mainly focused on outdoor spaces. Reflecting the trends in the market and cus-tomer demands, the Resort Group has launched a “planterior” business and is currently operating a plant-based air purifier business.


Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









Samsung C&T is making great efforts to strengthen the environmental management systems of business sites while minimizing negative impact on the environment in the course of conducting businesses. In order to strengthen the environmental management systems, the company has established global-level internal standards that go beyond mere compliance with the related laws and regulations, applying such standards to all business sites in Korea and abroad. In addition, the company’s four business groups identify negative environmental risks such as industrial waste and hazardous substances based on the characteristics of each business and preemptively inspect and manage such risks. If necessary, the groups also develop and perform customized systems that can mitigate such risks without delay.

42 43

Strengthening of the environmental management systemBefore commencing construction work, the E&C Group preemptively iden-tifies and manages environmental risks with consideration for the local conditions and characteristics of the project throughout the entire con-struction process. When opening a construction site of certain scale, the group designates an exclusive environment manager, and establishes an environmental management plan by reflecting the specific construction characteristics conducted by each of the partner companies. The environ-mental department at headquarters reviews and approves the field envi-ronmental management plans to manage all construction sites in a sys-tematic manner.

The E&C Group separately manages procedures that involve major envi-

Online water management monitoring using CCTV and TMS

Holding sumpCCTV

Public drainInspection sump

Monitoring Boundary hoarding

TTS meter Treatmentplant

Environmental Management

3The T&I Group has revised the internal regulations of overseas subsid-iaries and business sites in accordance with the trend of reinforcing local environmental regulations, and has reinforced inspections in compli-ance with such regulations. The group applies stricter standards than the local environmental laws in terms of asbestos, wastewater, air pol-lutants, and chemicals in order to prevent potential violations of regula-tions that can occur during business operations.

The Fashion Group amends, complies with, and manages internal reg-ulations in line with global requirements in order to prevent various potential environmental risks such as wastewater, air pollutants, and chemical waste that may arise during the product manufacturing and distribution stages.

Since its designation as the first “Green Company” in the Korean service industry in 1997, the Resort Group has been receiving regular inspec-tions from governmental authorities regarding environmental perfor-mance such as water quality, air, and waste. As a result of the environmen-tal management standards review, which is performed every three years, the Resort Group was designated as a “Green Company” by the Han River Basin Environmental Office for the sixth consecutive time in June 2019.

Efforts to minimize negative environmental effectsAll four groups of Samsung C&T listen to the voices of stakeholders to actively identify and resolve potential environmental impacts in advance. Since different environmental risks such as from noise, particulate mat-ter, hazardous chemicals, waste, and disposable products can arise depending on the characteristics of the business, each group estab-lishes its own inspection system and strictly enforces it.

Management of partner companies in relation to waste disposal

In 2009, the E&C Group introduced a designated waste disposal com-pany registration system in order to minimize environmental and social impacts caused by construction waste. To legally dispose of waste gen-erated in the construction process and promote recycling, the group registers only the companies that have successfully undergone annual inspections and evaluations as partner companies. It is also mandatory for all construction project sites to work only with verified designated companies. The registered partner companies undergo a rigorous eval-uation and screening process every year, through which the group ver-ifies and manages the partner companies’ management competencies, technological capabilities, and legal waste treatment capabilities. After the selection process, the group verifies the legality of the companies at the contract signing stage. Once the contract is signed, the group monitors whether the companies legally process waste through the “Allbaro System” of the Korea Environment Corporation every month. It also conducts at least one on-site inspection per month for all sites to check whether the waste generated at the sites is processed through the appropriate procedures. The group plans to build a system to identify excellent companies that can promote recycling, such as with reusable waste concrete, waste asphalt concrete, waste gypsum board, and waste wood, and to form partnerships with such companies to make proactive contributions to a circular economy.

Systematic management of hazardous chemicals

The T&I Group makes special efforts to eliminate risks related to hazard-ous chemicals handled during the trading of various chemical products. The group designates personnel in the Chemical Business Division and in the Risk Management Department to systematically manage chemi-cals, and conducts specialized training. The group also regularly inspects and upgrades chemical storage tank terminals, facilities at overseas

business sites, wastewater treatment facilities, and chemical storage warehouses to comply with the chemical-related laws and regulations.

The Fashion Group is also working hard with partner companies to pre-vent leakage of hazardous materials and to replace risky substances with safer substances. To substitute and reduce the use of hazardous chemi-cals, the group has formed a task force with affiliates, identified the sub-stances that need to be managed, and established management plans which are to be implemented in the latter half of 2021. The group also installs CCTVs and leakage detection sensors to detect leaks in all busi-ness sites where hazardous chemicals are used, and holds emergency drills to prepare for potential leakage of hazardous substances.

To achieve “zero use of hazardous chemicals” and prevent safety-related accidents, the Resort Group is gradually reducing the amount of sodium hydroxide used to control pollutants during wastewater treatment. Through this, the amount of hazardous substances generated as well as the risks associated with chemical accidents have been minimized.

Management of noise and particulate matter

The E&C Group takes necessary measures as early as the planning stage to minimize inconveniences caused to local communities by noise and dust from construction. Such measures include establishing plans for the installation of soundproofing facilities and equipment through a noise prediction simulation as well as dust reduction facilities such as washing, sprinkling, and dust collecting facilities. These plans are then also reflected in the environmental management plans.

The group has also developed a smart environmental management sys-tem using IoT technology to preemptively manage noise and dust levels. The IoT-based noise and dust monitoring system that the group devel-oped and implemented in 2019 involves installing noise and dust sensors at the perimeters of construction sites, then using telecommunication technologies to monitor the data on noise and dust in real time so that immediate actions can be taken as necessary. Through various analyses of the big data accumulated through the operation of this system, the group also develops and implements noise and dust reduction technolo-gies and construction methods. Implementation of this system has been mandated for all sites opened starting in 2020. As of now, this system has been installed and is being operated in 27 locations of 12 sites.

As part of efforts to reduce the scattering of dust, which is the main cause of particulate matter generation, the E&C Group entered into a voluntary agreement on reduction of highly concentrated particulate matter with the Ministry of Environment in 2017. As such, the E&C Group actively maintains a close system of cooperation with the government in order to minimize inconveniences to local communities caused by the group’s construction projects.

With the growing concern among customers regarding the use of amusement parks due to the increasing levels of particulate matter in the atmosphere, the Resort Group has installed particulate matter reduction solutions near the front entrance of Everland to be operated during the period of operation of the government’s seasonal particu-late matter management system. As a result, the solutions successfully improved the air quality in the surrounding area by about 20%. Also, in accordance with the seasonal particulate matter management system, the group always limits the operation of Class 5 vehicles and facilities that produce air pollutants.

ronmental risks, such as the dismantling of asbestos and installation or closure of wastewater treatment facilities, by designating them as "high environmental risk work". In the case of dismantling of asbestos, a detailed work plan must be prepared at the construction site, and a qualified EPA asbestos supervisor from headquarters then reviews and approves the plan based on its adequacy. In addition to this process, a three-step guidance and inspection process is operated before, during, and after the project. The group further performs environment-themed inspections in each season in order to preemptively manage seasonal environmental risk factors. Special attention is placed on particulate mat-ter during the dry seasons of spring and autumn and on settling basins right before the storm and flood season.

Major overseas project sites are subject to third-party inspections and CCTV monitoring in real time. Additional monitoring is also conducted depending on the requirements of each country. In project sites in Sin-gapore, the on-site water treatment facility that is installed and oper-ated, called ECM Plant, is managed with special care according to the cli-mate conditions of the country. A regional office monitors other sites in real time via CCTV and Tele Monitoring Systems (TMS) to check whether the water treatment facilities are operating properly on a regular basis. Through this outstanding level of effort for environmental management, the E&C Group has continuously maintained the highest rank (“STAR” rank) in the Green and Gracious Builder Scheme (GGBS) run by the Building & Construction Authority (BCA) in Singapore that awards eco-friendly construction companies.


Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









Samsung C&T constantly strives to provide autonomous and healthy work environments to increase work engagement as well as to help employees find a good work-life balance and alleviate stress at work. The company also works hard to enhance value for employees through fair evaluation and compensation programs and various training programs.

44 45

Creation of an enjoyable work cultureHealthy organizational culture

Samsung C&T runs various programs to increase work engagement as well as to help employees find a good work-life balance and alleviate stress at work. According to the Samsung Culture Index Survey con-ducted for all employees, average employee satisfaction has exceeded 70% for 3 consecutive years.

The organizational culture activities of the E&C Group are based on the three items of “autonomy and responsibility“, “leadership and followership“, and “mutual respect“. First, in accordance with the principle of “autonomy and responsibility“, the group makes various efforts to motivate workers at construction sites, such as by encouraging a culture of immediate rewards to incentivize workers to proactively initiate their own work and by introduc-ing duty allowance for on-site workers. For “leadership and followership”, the group provides leadership coaching for all employees and establishes a virtuous circle of knowledge and experience through programs such as best practice-sharing session. The group also enhances communication between different business divisions while identifying and encouraging departments with great teamwork through Interface Day, ultimately build-ing a culture of mutual consideration and respect.

Organizational Culture

4

2018 2019 2020

Results of employee satisfaction survey (Unit: %)

70.6 72.3 71.1

Autonomous work culture

Samsung C&T strictly complies with the 52-hour workweek system, and is continuously developing and implementing new systems for the establish-ment of a 40-hour workweek system. The E&C Group allows each business site to autonomously apply the work system that is most ideal based on the characteristics of the workplace, such as flexible hours, staggered hours, and selective hours. The T&I Group has adopted a compressed hours sys-tem in which employees can autonomously determine their own working hours as long as they work at least 4 hours a day and 40 hours between Monday and Friday. The group strictly oversees that no employee works over 52 hours a week. The group also introduced an online conference meeting system using mobile phones and PCs to support the smooth oper-ation of the work-from-home system. The Fashion Group has implemented a selective hours system to foster a free and creative organizational culture, reflecting the characteristics of the industry. Employees can freely choose every aspect of their work hours as long as they work at least four hours a day. The group has also introduced an hourly annual leave system. The Resort Group operates with a flexible hours system, reflecting the nature of the business where work hours are influenced by external factors such as weather and public holidays. Work hours are adjusted flexibly according to the number of visitors, and employees can check their work hours in real time through the attendance system.

Horizontal organizational culture

Samsung C&T establishes a position grade system that minimizes restric-tions placed according to position grade and seniority, and enables employ-ees to perform tasks and take on roles based on their individual capabili-ties. Through a restructuring project in 2017, the company simplified the position grade system to four position grades in the E&C Group and Resort Group, three gradesin the T&I Group, and two in the Fashion Group. Within the T&I Group, Fashion Group, and Resort Group, employees address each other with the same title, “Pro”, to signify that every employee has the same status of being a professional. The group has also standardized employee benefits and the performance-based incentive pay system between employ-ees to ensure equality in employee benefits.

Fair evaluation system and long-term compensation systemSamsung C&T operates with a personalized annual salary system that rewards employees based on evaluation of their individual capabilities and performance. The company is continuing its efforts to strengthen long-term rewards for employees through a compensation system and incen-tives based on work responsibilities and outcomes, such as duty allow-ance, pay based on individual performance, objective incentives based on accomplishments, and performance incentives.

The E&C Group conducts general performance reviews twice a year on individual employee capabilities and performance. The T&I Group, Fash-ion Group, and Resort Group conduct separate evaluations on individual capabilities (first half of the year) and work performance (second half of the year). In order to ensure fairness, the group holds an “HR Session” where department heads, team leaders, and human resources teams participate to finalize the evaluation grades. The Fashion Group conducts a coaching and performance management training course for depart-ment heads and provides individual feedback based on the results of the employee satisfaction survey to department heads.

Employee capacity-building training programsThe goal of employee capacity-building programs at Samsung C&T is to cultivate talented individuals through the fostering of comprehensive tal-ents, going beyond promotion-oriented training.

The E&C Group establishes a talent growth system to achieve profitable growth based on engineering, enhancing core competitiveness and sup-porting the growth of employees. To foster leaders and professionals who lead the business, the group continues to offer the “Project Manager Development Course”, “Intensive MBA Course at Seoul National Univer-sity”, “Commercial Expert/Intensive Course”, “Leadership Course”, and overseas training programs. To reinforce the fundamental competency for construction business, the group offers at least ten language courses annually to enhance the global capabilities of employees. The group has also provided extensive job training programs online. The group also intends to foster a culture of self-directed development and continuous learning in which employees voluntarily accumulate knowledge and expe-rience in the areas where improvement is needed. To achieve this, the group offers over 500 online courses, with an average of 1,000 employees participating in the learning every month including courses outsourced.

The T&I Group increases the value of individual employees and builds a foundation for the business’s growth by designing its talent develop-ment system in such a way that individual employees can develop into the experts required by the business strategy. To strengthen expertise within individual business divisions, the group has defined three core areas of training: core capability training, overseas dispatch, and job rotation. For core capability training, the group conducted external association semi-nars and internal training on trade business practices in the areas of item, region, function, and customer. Contractual workers are given the same opportunities to participate in the internal and external training courses to develop their individual capabilities. For overseas dispatch programs, the group operates assignments to Work Bank, EBRD, and an LL.M. program, through which employees can gain global experiences while also running an EMBA program in Korea to develop executive leadership. Job rotation programs include Job Posting, Career Challenge, and strategic job rota-tion. Such programs help employees grow into global leaders by allowing them to handle various items and broaden the scope of their expertise.

The Fashion Group is currently working in various fronts to help employ-ees to improve their individual capabilities through diverse work expe-riences, ultimately strengthening the overall competitiveness of the group. To stimulate employees’ creativity and help them to gain greater insight, the group operates the “Insight Lecture”, where guest speakers from diverse backgrounds including fashion and trends are invited every other month. In response to COVID-19 in 2020, the group held small face-to-face lectures in combination with online streaming in real time so that employees could participate in the lectures safely and flexibly. The group also created an exclusive studio for online streaming inside the company building to promote non-contact training courses. The studio is open to all employees and is being used for various purposes such as seasonal product presentations, sales point training, and production of instructional videos.

For customer service staff, the group runs the “Healing Program” to help alleviate stress related to emotional labor. In 2020, the group held an online meditation course designed to help employees manage their men-tal and emotional health. It was later reported that the course had a posi-tive impact on employee satisfaction and work competency.

The T&I Group pays attention to the mental and emotional health of employees using various methods. The group opened the in-house consultation service to not only employees but also family members of employees (psychological tests for couples/children) to achieve the goal of “zero mental and emotional health accidents”. The group also conducts a survey on the Happiness Care Index (HCI) for all employees semi-annu-ally, and operates a guest lecturer program with renowned lecturers. The group also actively supports club and social activities in order to promote healthy cultural activities and diversity among employees.

To care for the mental and emotional health of employees, the Fashion Group operates various programs such as the book cafe “Shwim” inside the Counseling Center, and the “Healing Cinema” and “Meditation” pro-grams. In April 2020, the group opened an anonymous online community page called “Jasinikge”, which works as an open communication channel among employees, to encourage various types of communication within the group. The group also convenes the “Intergenerational Committee” comprised of employees from each generation once a month in order to increase mutual understanding between different generations and pro-mote a culture that respects diversity.

The Resort Group runs a resilience training program for employees whose work involves frequent emotional labor. The program helps employees to recognize and control their emotional state objectively and develop the ability to communicate and empathize with others. This training course had a high attendance rate (99%) and satisfaction level (4.7/5.0). In 2020, the group introduced the “Refresh Holiday Program” to encourage employees to take the breaks that they need and to allow those with fam-ily members needing care to apply for a short leave during the COVID-19 pandemic. The group also selected and awarded the “Most Valuable Peers (MVP)” in order to foster a culture of compliments and create further moti-vation for employees. The group also started the “Dream Fund” to support “small successes” of employees.


Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









46 47

Without becoming complacent in its current position, Samsung C&T makes consolidated efforts across the company to advance its technological and project competencies in order to reach a level of quality and safety management that exceeds current customer expectations. Furthermore, Samsung C&T always considers the perspective of consumers first and reflects customer opinions to improve products and services through various channels.

Product/service liability policiesSamsung C&T believes that providing top-quality products and services is the foundation to customer satisfaction, and accordingly, operates var-ious quality improvement processes. It has established a Quality Man-agement Policy, operates a well-organized management system for pre-venting defects and improving quality.

Since the E&C Group's first acquisition of the ISO/KS Q 9001 certifica-tion for the quality management system in 1994, Samsung C&T has con-tinuously renewed the certification every three years. In May 2021, the group successfully renewed the ISO/KS Q 9001:2015 certification for the new and renewable energy business as well as the existing construc-tion, engineering, and plant facility businesses in accordance with the expanded scope of business operation.

The Fashion Group establishes strict internal quality standards for raw materials and operates with a system that inspects raw materials and fin-ished products in the different stages of production. The group also imple-ments an internal quality monitoring system for the finished products delivered to logistics centers. Through this process, the group prevents the storage and sale of products that do not meet the quality standards.

Plan Establishment of Quality Management Policy and plan

Operation of business according to standards and processesDo

Monitoring and audit for compliance with standardsCheck

Continuous improvement in suitability, adequacy, and efficiency of Quality Management SystemAction

The Resort Group secures the safety of products by checking whether products meet the statutory standards for hazardous substances for each type of product and the internal quality standards at the stages of delivery and storage.

Production of raw materials

· Mandatory physical and chemical inspections for raw materials before storage

· Visual inspections of sample or entire batch of finished products

· Mandatory verification of suitability of supplier (children’s clothing) and wash test

Production of finished products

· Monitoring and inspection of finished product qualityLogistics center

Delivery of raw materials

Delivery of finished products

Product /Service Accountability

5

Job competency program

Basic competency program

Life design course

LDC Ⅰ

LDC Ⅱ

LDC Ⅲ

Turning point

Check-up point

Jumping-up point

‧ Necessity of life design‧ Know-how on career management‧ Designing mid to long-term career plan

‧ Career search and design‧ Career development and case sharing‧ Materializing the career plan

‧ Career plan after retirement‧ Lifelong income and healthcare‧ Execution of the career plan

Group Key programs Operational achievements in 2020

E&C PM training courseTraining project managers through learning of technologies, management, and work-related knowledge (47 people)

T&I Internal trade academy

Nurturing of basic trade competencies and basics of the trade business for new employees and transferees (20 people)

Fashion Insight lectureSpecial lectures by experts from various field for catching fashion trends (435 people)

ResortTraining for obtaining

industrial safety officer certification

Cultivation of internal industrial safety officers (43 people)

Group Key programs Operational achievements in 2020

E&C Global Talent Language Course

Securing linguistic competencies for overseas field work through intensive language education (94 people in 2019)

T&I Domestic EMBA course

Nurturing of leadership candidates by acquiring management knowledge and expanding business connections (8 people)

FashionFashion Global Program (FGP)

overseas training

Strengthening of global competencies by applying for short-term courses at the Fashion Institute of Technology (FIT) in New York City (total of 10 people starting in 2015)

ResortOrganizational Management

Workshop

Nurturing of role recognition and organizational/achievement management competencies for new department heads (10 people)

Support for retired and former employeesAll four business groups of Samsung C&T have established a career con-sulting center, which supports the “second chapter” in the lives of mid-dle-aged and retired employees and provides necessary re-education courses. In the Life Cycle Design Program available for employees of 52, 55, and 58 years of age, their work-life balance is assessed through various lectures on topics including work, finance, relationship, family, health, and leisure. The Fashion Group offers up to two years to prepare for the future after retirement for middle-aged and senior employees over 50 years of age, and operates a Restart Program that allows them to experience what it is like to open a startup or take on a new career path.

Samsung C&T also provides special lectures on interview skills, and shares job-related information for those retired employees who wish to change their career to help them stay employed. The group provides the necessary space for activities related to looking for a job and helps employees with consultation with experts, writing a resume, practicing for interviews, and administrative processing after retirement.

To foster fashion specialists, the Fashion Group operates the Fashion Global Program (FGP) for junior employees, which supports their train-ing through short courses at international fashion schools. The group also helps employees to increase their competencies through work experience in various roles by granting them job rotation opportunities. Employees who want to transfer to other positions need simply to regis-ter their desired department or job position and wait for the next avail-able vacancy.

The Resort Group also offers various programs to enhance the compet-itiveness of its businesses by developing professionals in each sector. First, the group provides professional training courses to help employees acquire professional qualifications in the relevant areas of business, and encourages self-directed learning by operating internal study groups and clubs and providing congratulatory gifts to celebrate the acquisi-tion of job-related qualifications. Particularly for technical positions, the group has established a competitiveness development system based on the Career Development Program (CDP) to help employees set person-alized career goals through an analysis of their individual capabilities. For new recruits, the group provides an On-the-Job Training (OJT) course.


Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









48 49

The Resort Group makes sure all products sold at amusement park (dolls, stationery, toys, etc.) meet statutory safety standards and tests, and manages potential safety risks of products to prevent them from causing physical harm to customer’s bodies caused by the structure, material, and method of use. Before order placement and product ship-ment, the group checks whether products have received KC certifica-tion, reviews the test results, and conducts a sample test for each type of product before warehousing to ensure product safety. In 2020, the group checked the safety of 2,947 types of products through the safety certification and supplier suitability inspection. In addition, employees in charge of development and operation also regularly receive training on safety standards and legal labeling standards by participating in the training program on safety standards for children’s products and indus-trial products provided by the Korean Institute of Product Safety.

Provision of services to improve customer convenience

The E&C Group operates the “Hestia Lounge” inside Raemian apartment complexes, through which the group can communicate with customers and resolve customer complaints. The group also offers various “Hestia Services” including an apartment cleaning service, cultural classes, and social contribution activities.

The Fashion Group has improved its customer personal information management system. In 2020, the group introduced a simplified online account creation process to minimize the exposure of custom-ers’ personal information. Through the process, customers who join the group’s membership program in stores can simply use a QR code to create an online account. The group also reminds customers to reg-ularly check and update their personal information in order to manage the customer information that the group uses for marketing purposes in a more systematic manner.

The Resort Group provides various services designed to increase cus-tomer convenience, such as a boarding reservation service for cus-tomers with disabilities, general information desks, and an online lost and found system for quick processing of lost property (LOST 112).

Customer service training courses

The E&C Group runs various training programs to improve the quality of customer services. Customer service workers of the group receive the Customer Service (CS) Mindset training and job-specific training to improve customer service quality.

For the Fashion Group, CS training is very important for maintaining high levels of customer service, as contact with customers is a regular part of daily store operation. In response to the COVID-19 pandemic, the group swiftly switched to an online training system to fill in gaps and maintain the levels of CS in 2020. In 2021, the group plans to add more structure to the online training system to make it more active and to run an on-site consulting program in major stores.

The Resort Group launched a service campaign with fun elements to increase customer satisfaction across different age groups. Senior employees were also invited as guest speakers for the Service Education Program to share real-life customer service experience and expertise and to improve the quality of training. The group also provided mobile access for online training to maintain the high level of service quality despite the COVID-19 pandemic.

Product/service accountability activitiesProduct quality and safety enhancement activities

The E&C Group systematically manages the quality of its Raemian brand apartments by conducting pre-move-in inspection for all units and invit-ing tenants for pre-move-in inspections. In 2020, the group created a vir-tuous quality cycle system and enhanced the quality management func-tion in each stage including planning, construction, maintenance, and management. In particular, the group reinforced the Lessons Learned (LL) feedback program and compliance check activities in order to pre-vent major defects and achieve fundamental improvements in terms of quality.

The Fashion Group established and operates its own quality inspection system that conforms to the recommended quality standards of the Korea Consumer Agency (KCA). The system performs step-by-step qual-ity inspections, from fabric to finished product (chemical test, washing test, garment inspection, etc.). Matters related to safety such as hazard-ous substances are managed under regulations that are stricter than the legal standards.

Hazardous substance Statutory standards

Internal standards

Nonylphenol (children’s) 100mg/kg 30mg/kg

FormaldehydeAdult clothing (outer wear) 300mg/kg 100mg/kg

Other (adult inner wear, underwear, children’s) 75mg/kg 20mg/kg

Arylamine 30mg/kg 10mg/kg

Chromium 6 3mg/kg 1mg/kg

pHAdult clothing (outer wear) 4.0 ~ 9.0 4.5 ~ 8.5

Other (adult inner wear, underwear, children’s) 4.0 ~ 7.5 4.5 ~ 7.0

Indicator Business group Results in 2020

National Customer Satisfaction Index

(NCSI)

Apartment Business E&C 1 (for 23rd

consecutive year)

Men's Casual Clothing Division Fashion 1 (for 4th

consecutive year)

Korean Customer Satisfaction Index

(KCSI)

Comprehensive Leisure Facilities Resort 1 (for 26th

consecutive year)

Water Park Business Resort 1 (for 9th

consecutive year)Complaint VOC composition (Unit: %)

E&C

Warranty services

Warranty services

Human resource services

Regulations and policies

Hygiene and safety

Distribution /Contract Design/Construction

Customer reception

Other (online, policy/system, marketing, etc.)

Other (odor near pigpen, animal welfare, etc.)

Products

Guidance Quality

Membership

End of warranty /Other

58 18 13 11

62 1811 5 4

Fashion

26

Resort

22 19 19 11 3

Number of positive VOCs received in Resort group

(Unit: per 10,000 customers)

2018 2019 2020

827 1,038

2,282

For the fundamental improvement of product quality, the group also provides training for employees, executives, and partner companies. In 2020, the group operated a monthly training course on the prod-uct safety and quality management processes, including type of defect by product category (t-shirt, sweater, formal dress, etc.), Korean Certi-fication (KC), and physical and chemical tests. The group also held the “Faulty Product Exhibition”, sharing information on quality risk manage-ment measures and non-contact quality management, with 926 employ-ees from the Planning, Sales, and Production Departments and 101 partner companies. On “Mutual Growth Day”, a program designed to strengthen partnerships with partner companies, the group gave a pre-sentation on the sourcing policies and emphasized the importance of quality and product safety.

Legal compliance of products/servicesAll four groups of Samsung C&T regularly monitor amendments made to the relevant laws and regulations and report such amendments to each department to achieve customer satisfaction through compliance with the legal requirements. Through such efforts, the company has achieved zero violations of product-related laws and regulations in all business areas.

Customer satisfaction surveys

Samsung C&T conducts customer satisfaction surveys through profes-sional agencies in order to provide products and services of premium quality. In the National Customer Satisfaction Index (NCSI) supervised by the Korea Productivity Center, Raemian of the E&C Group has ranked number one for 23 consecutive years in the apartment category, and BEANPOLE of the Fashion Group has ranked number one in the men’s casual clothing category for four consecutive years. The Resort Group has also ranked number one in the Korean Customer Satisfaction Index (KCSI) supervised by the Korea Management Association (KMA) for 26 consecutive years.

VOC management and response

The E&C Group has been enhancing their Voice of Customer (VOC) activities to increase customer satisfaction level. The group convenes the VOC Improvement Committee to share the status of VOCs and develop areas of improvement that need to be reflected in products, quality, and services. The group also developed the “Hestia” system, through which customers can submit service requests using their mobile phones and check their progress. In 2020, the number of VOCs saw a 47.2% drop compared to the previous year. Of all VOCs, inquiries and service requests accounted for 99.7% and customer complaints only accounted for 0.3%.

The Fashion Group discloses the content and processing results of VOCs transparently to all employees. The group conducts an on-site consult-ing program for those stores where customer complaints are reported and visits stores that receive positive customer feedback to congratu-late and encourage them, and shares positive or negative VOCs with all stores every week. In 2020, the group received the same level of nega-tive VOCs as the previous year, and negative customer feedback in the area of customer service at stores decreased slightly (4%).

Although the number of visitors has decreased due to the COVID-19 pandemic, the Resort Group achieved the highest level of positive VOCs ever (2,282 positive VOCs per 10,000 customers). The Resort Group receives VOCs through various channels, including the customer con-sulting room, call center, mobile app, and website. The group's policy is to process all VOCs within 48 hours from the time of receipt. In 2020, the average response time improved from 1.7 days to 1.2 days. The group also hosts weekly VOC innovation meetings to conduct root-cause anal-ysis and discuss ways to prevent recurrence of the same issues, and management hosts monthly VOC meetings to improve the fundamental causes of issues and achieve more permanent solutions.


Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









50 51

In 2020, Samsung C&T continued to make various efforts to protect the company’s information assets, such as customer information and company products and services, against various threats including cyber hacking. Particularly in 2020, the company swiftly implemented guidelines and security measures for the increased number of work-from-home arrangements and virtual conferences driven by the spread of COVID-19.

Information security policySamsung C&T operates an information security policy and system to pro-tect personal information, intellectual property rights, trade secrets, and information related to research and development. The company defines information assets that need to be protected by establishing information protection regulations, and controls the leakage of these information assets through security for systems and documents. Samsung C&T also requests that all employees submit the Information Protection Pledge in order to promote awareness regarding the protection of information assets and to instill a sense of responsibility.

Samsung C&T not only carries out due diligence to fulfill the legal responsibilities to protect information assets and customer information, but also establishes a security policy which suggests a direction of action for employees to ensure that customers, shareholders, employees can safely enjoy the IT products and services provided by the company.In particular, for strict management of the information provided by cus-

tomers, Samsung C&T establishes guidelines such as internal personal information management plans in accordance with the Personal Infor-mation Protection Act throughout the life cycle of information including its collection, use, and destruction. The company also implements tech-nical measures such as encryption and access control to protect per-sonal information from hackers.

Time and method of destruction

· Destruction time · Destruction process · Destruction method

Method of consent to collection purpose and collected items

· Consent from the information subject· Collection of information from users

under 14 years of age· Principle of minimum information collection

· Prohibition of collection of resident registration numbers without justification

· Collection of unique identifiers· Prohibition of the use of personal information

outside the stated purpose

Safety measures and management

· Establishment of internal management plan · Technical and administrative measures to protect personal information · Management of access rights · Auditing

Consent to consignment notice or transfer

· Distinction between consignment and third-party provision

· Management and supervision of consignees

· Procedures for third-party provision

Life Cycle of Personal

Information

Dest

ru

ction Collection and use

Storage and management Consignment ·tra

nsfe

r

Information Security

6

1. We observe legal requirements related to information security. 2. We do our best to protect the information and privacy of our customers.3. We maintain stability of our IT products and services.4. We actively implement security protection activities based on

a deep understanding of information security.5. We detect and prevent risks to information security in real time and

preemptively respond to such risks through preemptive inspections.

Core information security policy

Information security operation organization

In 2019, Samsung C&T appointed a chief information security officer (CISO) and created the Information Security Team within the Corporate Strategy Office. The Information Security Team defines and manages core manage-ment indicators such as the completion rate of information security train-ing, rate of pledge submission, and rate of service prevention inspection. The team systematically performs information security-related tasks such as risk response through organic collaboration between information secu-rity organizations in each business group. The team also provides con-tinuous support for information security policies and risk response activi-ties. Furthermore, Samsung C&T practices information security that meets global standards in accordance with the unique characteristics of the four business groups of E&C, T&I, Fashion, and Resort.

Information security teams

BOD ESG Committee

Corporate strategy office CISO (Information Security Team)

Business groups Information Security Centers in each business group

Activities to enhance information security capabilitiesMonitoring of security risks and elimination of vulnerabilities

There is a growing number of security risks that threaten various types of businesses and companies. In an effort to respond to such risks, Sam-sung C&T studies new threats and infringement cases reported in security risk prediction reports prepared by professional security companies and related institutions to take preemptive action. The company constantly engages in activities to improve security, such as eliminating vulnerabili-ties by hiring information security professionals, benchmarking, research-ing and developing new technologies, and providing security guidelines to project sites. To prepare for potential accidents, the company has also acquired cyber security insurance to prepare against unforeseen losses.

Furthermore, in order to improve the competencies of personnel in charge of information security, which is directly linked to the standards of the busi-ness’s information asset protection, Samsung C&T provides support for external seminars and training courses where employees can learn about the latest trends and technologies. The company also conducts monthly online technology seminars with external experts in order to enhance the necessary capabilities in relation to the COVID-19 pandemic.

Reinforcement of cyber security

Samsung C&T has recently recognized new types of security threats such as email attacks targeting specific individuals and attacks on industrial sites using malicious codes that incapacitate industrial control facilities in addi-tion to hacking attacks on websites and clouds, and has been strengthening countermeasures. By utilizing its security system and awareness of employ-ees surrounding security, the company will detect external threats and take preemptive actions based on professional guidelines.

Enhancement of digital product and service security

Samsung C&T ensures the safe operation of digital products and services

provided to customers, blocking security threats to its IT systems by taking necessary security measures throughout the development process includ-ing the product planning, analysis and design, and testing stages. The com-pany has constructed a new security inspection system to ensure the stable operation of IT products and systems provided to customers. According to the new inspection system, all IT products and systems produced by Sam-sung C&T undergo security inspections provided by external security experts before finally being delivered to customers, and the company makes imme-diate corrections if vulnerabilities are found. Customers only receive IT prod-ucts and systems whose safety has been secured through such a system.

Protection of information assets

Samsung C&T operates an information security management system designed to protect information assets such as intellectual property rights, trade secrets, technical information related to research and development, personal informa-tion, electronic documents, IT information assets, and storage media. The Infor-mation Security Team defines the information assets that need to be protected by establishing information security regulations, and controls leakage of such information assets through security of systems and documents.

Raising employee awareness

Samsung C&T shares the latest issues and cases related to information secu-rity through promotional activities within the company, such as in-house broadcasts and letters on information security, to encourage employees to recognize the importance of information security on a daily basis and to put the security guidelines into practice. To achieve this, the company regularly provides information security training courses so that employees can safely perform their tasks without violating information security regulations and related laws. Employees are subject to simulation training using examples of computer infections with malicious codes through malicious emails. The training increases awareness of employees surrounding malicious emails and provides instructions on how to respond to such emails.

Meanwhile, in 2020 there was a rapid increase in the number of employees working from home and meetings held online due to the spread of COVID-19. In response to this trend, Samsung C&T expanded the necessary infrastruc-ture to enable employees to work from home and hold online meetings safely and conveniently. The company also published a guidebook for the work-from-home arrangement and conducted regular monitoring for security threats to prevent potential security accidents. In addition, the company strengthened awareness-raising activities, such as sharing rules and guidelines to be fol-lowed by employees when holding virtual conferences and online meetings, in combination with security inspections of virtual conference equipment.

Information security outcomesThanks to such efforts, Samsung C&T has had no security accidents in all areas of business, including violations of personal information security reg-ulations or loss of customer information. The company has also acquired the Personal Information & Information Security Management System certifica-tion overseen by the government, and receives a maintenance audit annually and maintains the management system to meet the certification standards.

Certification standard

Date of certification Certification authority

ISMS-P August 2019 Ministry of Science and ICT

* Personal Information & Information Security Management System (ISMS-P)


Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









52 53

To contribute to sustainable social development, Samsung C&T promotes various social contribution activities in connection with the key areas of the United Nations Sustainable Development Goals (SDGs), such as social responsibility and future generation, as well as local communities. Although it was difficult to conduct face-to-face activities due to the restrictions brought on by the COVID-19 pandemic, the company did not stop in its efforts to create social value, and developed new activities to compensate for the restrictions.

The goal of all social contribution activities performed by Samsung C&T is to create social impacts based on trust and authenticity. To accomplish this goal, the company is closely cooperating and communicating with various partner companies, local governments, and social welfare organizations in local communities. In 2021, the company will continue to plan and execute non-contact social contribution activities to sustain interest in social contribution activities among employees and fulfill our social responsibilities as a member of society.

Social contribution strategy

Contribute to sustainable social development by actively engaging in social responsibility activities that add and share the value of life

· Creation of an environment that promotes the development of individual competencies

· Provision of equal opportunities (education, etc.)· Support for socially disadvantaged groups (scholarship programs)

· Contribution to local communities utilizing business infrastructure

· Improvement of living conditions by providing food, clothing, shelter, and rest

Future generations Local communities

E&C | Junior E&C AcademyT&I | Scholarship program for children from

multicultural familiesFashion| Support for children with disabilities,

HEART FOR EYEResort | Support for children with rare and

refractory diseases

E&C | Samsung VillageT&I | Support for farms with the “One Company

for One Village” campaignFashion| Clothing for people with disabilities,

HEARTISTResort | Provision of winter expenses for local

welfare facilities

Junior C&T Academy Emergency COVID-19 support

Field of activity and direction

of strategy

Goal

Brand

Major program

Programs by business group

Social Contribution

7Social contribution programs

Support for future generationsDue to COVID-19, Samsung C&T has held courses online in 2020 for the Junior C&T Academy, which is a corporate-level social contribution pro-gram participated by all four business groups. It was not an easy task to switch the curriculum that was originally designed for face-to-face par-ticipation to an online program in such a short period of time. However, the company was determined to develop the online program to resolve the deepening inequalities in education in rural villages. The learning materials and various experience kits that were originally provided to groups were sent to the individual students. The academy streamed online broadcasts in accordance with the original class timetable of each school so that students could participate in the classes in a systematic manner. To facilitate smooth communication and feedback about the classes, the academy hired a supplementary lecturer to be in charge of live chats, which increased the schools and student satisfaction.

Since 2015, the E&C Group has been offering interactive career education for construction-related jobs to children and adolescents. To change the perception among children that “construction is hard work and difficult”, the employees of the E&C Group participate in the development of text-books and give lectures to provide “theoretical and practical education on construction” that is easy for children to understand. Although the existing program was changed to an online version in 2020, 99 elementary school students and 320 middle school students participated in the educational program.

The T&I Group raised funds through employee donations and the group’s matching grant to provide scholarships for adolescents from multicultural families and to support psychological counseling for victims of school vio-lence. The group operates the scholarship program for adolescents from multicultural families through the Pearl S. Buck Foundation Korea. As of 2020, the program provided scholarships to a total of 28 adolescents with outstanding academic achievements and special gifts, providing educational opportunities to children from multicultural families to help them grow as talented individuals. The group also works with the Blue Tree Foundation (Youth Violence Prevention Foundation) to support the psychological rehabilitation of adolescents who were exposed to various forms of violence at school and home through cultural activities.

The Fashion Group has been supporting the education and independence of youth with disabilities through the art education program “HEART FOR ART” for children with disabilities since 2014. Together with the Gangnam Welfare Center for the Disabled, the employees of the group form pairs with children with developmental disabilities to draw self-portraits and make crafts together. Through the program, the children with disabili-ties learn how to communicate their emotions and thoughts through art and develop their social skills by forming new relationships. As it was dif-

Junior C&T Academy and Junior E&C Academy

ficult for the employees to engage in face-to-face activities in 2020 due to COVID-19, the group sent art kits to the home addresses of 48 children participating in the program to help fill the gaps in their education.

Also, the Fashion Group has been running the “HEART FOR EYE” campaign since 2006 as part of its healthcare and medical support program for future generations. In 2020, the group donated sales profits of 20 million KRW from the “HEART FOR EYE” collection of women’s clothing brand KUHO and LEBEIGE to the Samsung Medical Center to support visually impaired chil-dren for eye surgery expenses and other medical bills. As of 2020, since the launch of the campaign in 2006 the group has donated a total of 643 million KRW and supported 379 children. Furthermore, the group runs support programs for future generations in a wide range of areas such as by providing nutritious food and snacks and hosting cultural events for the children and adolescents at Sungrowon, ChildFund Korea, and Neutinamu Local Children’s Center. The group also helped Hanguk Wujin School, a school for children with brain lesions, to improve its educational environment by upgrading the school facilities.

The Resort Group has been providing support in the form of medical and rehabilitation expenses to children with rare and refractory diseases since 2004. As of 2020, a total of 833 children received scholarships and finan-cial support for rehabilitation expenses. Over the past 13 years, the group has also been hosting the “Sound of Hope” choir since 2007 to help chil-dren with rare and refractory diseases to boost their self-esteem and enjoy healthy social activities. Every year, the Resort Group invites children with chronic illnesses and their family members who are exhausted from the long battle against the diseases for a picnic in Everland. As of 2020, 13,119 children and their family members have participated in this program.

Support for local communitiesIn 2020, local communities experienced various difficulties as a result of the economic downturn caused by the COVID-19 pandemic. All four business groups of Samsung C&T have been working with rural villages through the “One Company, One Village” campaign to help alleviate their economic hardships. Samsung C&T worked hard with one mind and one goal to revitalize the local economy from the negative impacts of COVID-19 by opening a direct trading market during the Lunar New Year's and Chu-seok Holiday seasons where the employees could purchase agricultural products harvested with care in the affiliated rural villages. In November, Samsung C&T worked together with local volunteers to purchase freshly made kimchi from rural villages and delivered it to low-income households and senior citizens living alone.

The E&C Group is focusing on the regional development project “Samsung Village”, which upgrades housing, education, and sanitation facilities and helps local residents to strengthen their capabilities through education. The project started with Village 1 in Pasir Hallang, Indonesia in 2013, and the group completed the construction of Village 7 in the Phu Quong and Namao Region near the retrofit project site in Yên Bình, Vietnam in Decem-ber 2020. Since December 2019, the group has been working on the con-struction of Village 8, which includes improving the educational environ-ment of four local schools near the Dhaka Airport site in Bangladesh. In December 2020, the group commenced the Village 9 project to improve the housing, education, and sanitation environments near the JAWA Power Plant project site in Indonesia in addition to the Village 6 project. Mean-while in Korea, the group has been operating the “Samsung Village” pro-gram since 2016. Each year, the group selects 15 low-income households near the Gangneung Anin power plant project site through the program and improves and repairs the safety and sanitation facilities in their homes.


Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









54 55

HEARTIST Popup book to raise awareness for people with disabilities

To resolve the shortage of hospital beds in the capital area due to the resurgence of COVID-19 in August 2020, Samsung C&T provided their in-house training institute, the International Man-agement Research Institute, as a temporary medical facility for COVID-19 patients with mild symptoms.

During the first (September to October 2020) and second (Novem-ber 2020 to January 2021) rounds of operation, a total of 736 patients were admitted and discharged after receiving treatment. The facility is currently being used for a third round of operation. To provide an optimal treatment environment, Samsung C&T equipped the temporary treatment facility with a sampling room, a medical waste warehouse, CCTV, wireless Internet network, and X-ray and high-pressure oxygen therapy equipment. Sam-sung C&T also donated congratulatory gifts such as face masks and tumblers to patients who were discharged after treatment, and supported operational expenses of the temporary treatment facility including electricity and water bills, contributing a total of 3.6 KRW billion to society.

Besides this, Samsung C&T has donated personal protective equipment for medical professionals who are working hard on the forefront and supplied various disease control and preven-tion products including masks through the National Disaster Relief Association to overcome the hardships together with the local community.

International Management Research Institute provided by Samsung C&T as a COVID-19 treatment center (Yongin-si, Gyeonggi-do)

Samsung C&T’s efforts to help the country overcome the COVID-19 crisis

The E&C Group continuously donates emergency relief goods for victims of disasters both at home and abroad using donations from individual employees, executives, and the company. With the donations made in 2019 and 2020, the group produced 800 emergency relief items and the employees of the E&C Group donated their talents to build eight units of temporary residence for disaster victims.

The T&I Group steadily operates volunteer programs including overseas programs for employees, volunteer farm work in affiliated rural villages, and others; however, face-to-face volunteer activities were temporarily suspended due to the spread of COVID-19 in 2020. In May, the group pur-chased plants and flowers to help flower farms who were facing economic hardships due to COVID-19 and donated them to the various local insti-tutions where the company participated in volunteer activities. The group also held fundraisers for selling agricultural products produced in the sis-ter rural villages to employees, and donated the proceeds to organizations dedicated to the development of talented individuals.

In 2019, the Fashion Group launched HEARTIST, the very first adaptive clothing brand in the Korean fashion industry. Adaptive clothing is fashion that respects the diversity of consumers who do not feel comfortable in existing clothing. HEARTIST promotes clothing of a business casual style that is both comfortable and functional, with consideration for the physical characteristics of people with disabilities. The brand has developed nine clothing details for wheelchair users, and designs clothing that feels com-fortable in daily life and is easy to put on and take off even for those with limited hand movement due to spinal injuries. The brand has released 78 models as of 2020. The Fashion Group plans to donate all profits made from the sales to partner organizations in order to support programs for people with disabilities. Recognizing the excellent functionality of the cloth-ing designed by HEARTIST, the National Rehabilitation Center registered them as assistive equipment for the disabled. As a result, people with dis-abilities from low-income households are eligible for a government sub-sidy to purchase the clothes, making them available to more people.

Furthermore, the Fashion Group participates in various awareness-rais-ing volunteer activities for people with disabilities together with a partner NGO (Disabled First Practice Movement Headquarters) in order to create a healthy society where abled and disabled people coexist. In 2020, in place

of face-to-face activities, the group published 500 copies of a popup book to raise awareness for people with disabilities and distributed them to 250 elementary schools throughout the country. The group also operates a livelihood support program for socially vulnerable groups living near the business sites. The group provided groceries and necessities to 570 peo-ple from socially vulnerable groups based in Seoul, Gumi, and Gwangju. The group also donated clothing from the group’s brands to the childcare facility “Ggumnamu-maeul”, and 220 wheelchair cup holders handmade by the employees to five facilities for people with disabilities. The group

also supports the socially vulnerable in the local community through part-nerships with the Gangnam General Social Welfare Center and Gangnam Welfare Center for the Disabled.

Since 2012, the Resort Group has offered support for winter expenses to welfare facilities in local communities where their business sites are located. In 2020, the group covered heating expenses and fuel costs for ten facilities. Also, through non-contact volunteer activities, the group delivered fruits and cotton masks handmade by the employees to local welfare facilities.

For Samsung C&T, practicing compliance management is an important part of creating a transparent and fair corporate ecosystem and fulfilling corporate social responsibilities. In this regard, Samsung C&T operates a Compliance Risk Management System customized for each business group, led by the Compliance Team that is directly under the BOD. In 2020, Samsung Compliance Monitoring Committee was launched as an independent compliance monitoring organization. It has also revised a Code of Conduct for seven areas of compliance including integrity, fair trade, anti-corruption, information security, labor standards and employment, win-win cooperation, and quality of health and safety. Samsung C&T will not only strictly abide by the laws and regulations, but will also foster a culture of upright management that respects the social norms and principles of the international community and local community to gain the trust of stakeholders.

Compliance policies and systemIn 2020, Samsung C&T integrated and restructured the compliance risk management systems that were operated separately by each business group. The Samsung C&T Compliance Code of Conduct was revised and released on the company’s official website, based on the 7 risks of integ-rity, fair trade, anti-corruption, information security, labor standards and employment, win-win cooperation, and quality of health and safety iden-tified by the Compliance Risk Management System.

In particular, Samsung C&T strengthened anti-corruption risk manage-ment by developing the “Anti-Corruption Guide” as part of the Compli-ance Code of Conduct, clearly prohibiting the provision of money, goods, entertainment, and others, no matter the scale, to public servants both at home and abroad with the expectation of receiving rewards. The com-pany also reinforced various internal processes such as by applying a more rigorous deliberation process for external donations, requiring approval from the Compliance Team when registering a partner com-pany, and introducing a compliance risk filtering process through which contracts are reviewed specifically from the perspective of anti-corrup-tion. Samsung C&T also conducted special training on anti-corruption for all employees with a focus on subjects such as bribery, Korea’s Anti-Graft Act, and the US’s Foreign Corrupt Practices Act.

Samsung C&T conducts a compliance risk session every year based on a bottom-up approach in order to identify the company’s compliance risks related to the performance of business tasks by the business depart-ments. Samsung C&T holds two types of compliance risk sessions – Com-pliance Risk Assessment (CRA) to assess the risks of the existing Com-pliance Management System and Compliance Risk Suggestion (CRS) to identify new compliance risks. The Compliance Team utilizes the results from the sessions to continuously update the Compliance Risk Manage-ment System and conduct training programs and audit activities.

Compliance

8

Compliance risk

· No bribery· No improper solicitation

· Basics & principles· Honor & commitment

· Mutual respect

· Personal information protection

· Trade secrets

· No collusion or unjust support

· No false labeling or advertising

· No insider training

· Labor standards/labor-management relations

· Visas and permits

· Subcontracting · Safety/ environment/quality

· Prevention of internal misconduct

Anti-corruptionIntegrity Information protectionFair trade Employment

and laborWin-win

cooperationSafety/environ-

ment/qualityClean

organization


56 57

Compliance operation system

Compliance operation organizationAt Samsung C&T, the compliance organizations, which had been orga-nized under the Legal Affairs Teams of each business group, was con-solidated into the Compliance Team directly to the BOD, and a Chief Compliance Officer was appointed to establish compliance monitoring governance centered on the BOD. The Chief Compliance Officer attends all meetings of the BOD to support their legal decision-making, and also reports regularly to the BOD more than twice a year on the company’s compliance supporting activities, the results of compliance audit, and the results of the evaluation of effectiveness of the Compliance Control System in accordance with the compliance control standards. In 2020, Samsung C&T also formed the Compliance Committee directly under the CEO to foster a culture of integrity across the entire company.

Compliance risk session process

CRA

(Compliance Risk Assessment)

CP program

Reflection

CRS

(Compliance Risk Suggestion)

Working-level department

Compliance team

CP risk

Reflection in management system

Organization formation

BOD

Chief Compliance Officer

Compliance Team

Autonomous compliance organization and ombudsperson for each business group

In addition to the dedicated compliance organization directly under the BOD, the company designates compliance officers for each department to facilitate autonomous and consistent compliance activities. Samsung C&T also operates an ombudsperson system, which can freely consult on compliance issues of employees under the principles of confidentiality, neutrality and fairness, and non-retaliation.

Compliance training programsSamsung C&T operates systematic and in-depth compliance training pro-grams to minimize business-related legal risks. Every year, all employees both domestically and abroad receive common compliance training based on the Compliance Code of Conduct and Guidelines. The training was pro-vided in four languages: Korean, English, Chinese, and Vietnamese. In 2020, a total of 14,238 employees completed the training online.

Samsung C&T also operates the “Compliance Academy” where execu-tives, including the CEO, present their personal compliance experiences and discuss the implications. The Compliance Academy is broadcast live for all employees. More specifically, it is a representative training pro-gram of Samsung C&T that solidifies awareness surrounding compli-ance among all executives and employees including the top manage-ment level.

Samsung C&T operates a variety of separate training courses for employ-ees in various ranks and jobs, such as departmental training for depart-ments that face high legal risks and the Compliance Manager Confer-ence held for the compliance officers in each department. After the training is completed, the company evaluates the effectiveness of the training program and areas that need improvement to ensure high qual-ity of training. Samsung C&T operates a variety of other compliance pro-motion programs designed to form and maintain a culture of compli-ance in the company.

Compliance Academy Compliance campaign

The Samsung Compliance Monitoring Committee was officially launched on February 5, 2020 as an independent organization to practice upright management, a core value of Samsung, by strengthening the compliance monitoring and control functions of the seven major affiliates* of Samsung.

The committee can express opinions regarding the company's external donations, expenditures, and internal transactions to the BOD. The committee is working actively, making appropriate rec-ommendations to improve compliance monitoring programs and systems.

* Samsung C&T, Samsung Electronics, Samsung SDI, Samsung Electro-Mechanics, Samsung SDS, Samsung Life Insurance, Samsung Fire & Marine Insurance

Samsung Compliance Monitoring Committee

Number of participants in compliance and ethical management training

Basic principles of handling compliance reports(Unit: persons)

Compliance Risk Audit SystemThe Compliance Risk Audit System at Samsung C&T is divided into two areas: “On-site Audit”, which is conducted regularly or as needed by the dedicated compliance organization and the related departments con-cerning the items identified by the Compliance Risk Management Sys-tem including anti-corruption, and “Self-Audit”, which is conducted by each business organization on an as-needed basis according to the characteristics of the work. Samsung C&T prevents the reoccurrence of major risks identified in the compliance audits at all business operation sites and the headquarters by deriving improvement plans and manag-ing the implementation of the plans. In 2020, Samsung C&T conducted compliance risk audits at 230 business sites, including corruption risks at 133 business sites.Separately from this, the Compliance Team operates a range of report-ing channels that are open 24 hours and available in both Korean and English, through which not only employees but also third parties can report compliance issues such as those related to fair trade, anti-cor-ruption, information protection, employment and labor, subcontracting, and others. Regarding violations of laws and regulations, Samsung C&T received 120 reports in 2020 through the Legal Violation Reporting Sys-tem available on the Samsung C&T website, and completed investiga-tions and processing for all of the received reports. Samsung C&T also operates the Ombudsperson System, an open communication channel through which employees can freely receive consultation on difficulties, internal regulations, and work. It selects employees with excellent lead-ership skills and high reputation among colleagues to act as ombud-spersons. In 2020, the ombudspersons processed 1,023 cases of con-sultation.

Penalties and rewardsWhen a violation has been confirmed according to an investigation on a submitted report or the results of an audit, the Chief Compliance Office, on behalf of the company, implements disciplinary action depending on the severity of the violation. On the other hand, the company rewards exemplary employees, and departments to encourage compliance. In 2020, 17 employees and 6 departments received such compliance awards. Samsung C&T operates a Compliance Evaluation Program for all organizations and executives in connection with the compensation sys-tem to increase the effectiveness of the compliance program.

Compliance reporting channel

External reports Internal reports

(+82-2-3669-0007)

Help Desk>Report

Ombudsperson

[email protected]

Samsung C&T website

Hot-line

Email

Reports on legal violations

Compliance system

Face-to-face talk

Confidentiality Neutrality & impartiality No-retaliation

Culture of open communication

Trends and status of reports submitted in 2020

35%

27%

18%

12%

8%

120cases in total

42 issues related to partner companies33 issues related to business site operation21 issues related to customers14 issues related to HR10 other issues

2018 2019 2020

47,523

94,215101,697

Penalties for violation of compliance obligations in 2020

(Unit: number of cases)

Precaution

28

Warning

20

48Total

Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix










Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









Appendix

59 Stakeholder Engagement

60 Materiality Assessment

62 Activities Linked to UN SDGs

64 Key Management Issues

65 Sustainability Performance Indicators

86 GRI Index / SASB / TCFD

93 Independent Verification Statement

96 Awards and Association Memberships

Samsung C&T defines shareholders, investors, customers, employees, business partners, local communities, government, and the media as key stake-holders, and operates diverse communication channels to collect the opinions of the stakeholders and reflect them in business activities. Detailed policies and measures related to the issues are disclosed in the Sustainability Report.


Stakeholders Issues of interest Communication channel Impact on the value chain Our response

Shareholders · investors· Economic performance· Risk management· Governance

· Disclosure of information· Quarterly earnings report· Conferences, domestic and abroad

· Visiting meetings, etc.

· Checks and balances

· Stable revenue generation· Integrated risk management· Enhanced project execution capabilities

Employees

· Health and safety· Respect for diversity· Education and training· Employment and welfare benefits

· Labor-management relations

· Intranet· Webzine and blogs· Labor-management council

· Message from the CEO

· Sales, construction, and operations

· Product design· Technological R&D· Intellectual property

· Talent-oriented organizational culture

· Competency development· Occupational health and safety

· Benefits and incentives

Local communities

· Indirect economic impacts· Contribution to local communities

· Environmental improvements

· Social contribution activities

· Partnerships (NGO, etc.)

· Establishment of infrastructure

· Indirect economic effects

· Social contribution activities linked to project capacities, centered on domestic and overseas business sites

Customers

· Products and services· Customer health and safety· Marketing· Communication

· Website· Customer Center· Customer satisfaction survey

· Project contract· Product purchase

· B2B and B2C customer management

· Enhanced customer satisfaction and trust

Business partners

· Assessment of supplier’s impact on society

· Ethical management· Protection of human rights of workers

· Anti-corruption

· Partner companies’ portals

· Business Partners Council· Briefing sessions and forums

· Logistics, procurement, construction

· Fair trade· Competency building of partners

· Pursuit of mutual growth

Government · media

· Anti-corruption, protection of human rights

· Accident prevention, environmental protection

· Compliance

· Website· Public hearings· Press releases

· Project development· Management of customers and clients

· Competitiveness in winning contracts

· Participation in governmental policies

· Compliance with laws and regulations

· Disclosure of information

59


Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









60 61


OverviewSamsung C&T conducts a materiality assessment every year to identify important issues of interest to stakeholders and to communicate regard-ing the company’s activities related to these issues.

Samsung C&T determined a customized pool of issues by first analyz-ing the needs of its. To do this, the company analyzed the evaluations and disclosure requirements of domestic and overseas ESG initiatives, such as the Global Reporting Initiatives (GRI), Morgan Stanley Capital

Important issues for Samsung C&TSamsung C&T identified 20 important issues through the Materiality Assessment. The issue of the highest priority was “Response to Climate Change”, and about half (9 issues) of the important issues were derived from the social domain, such as employee safety/health and responsible management of the supply chain.

Materiality assessment results addressed in the report

Table of contents Issue Related GRI index (number) Page

ESG strategy &core issue

Key area 1. strengthening GHG reduction

1 Response to climate change

Raw material (301)Energy (302)

Emissions (305)17-18

12 Development of products considering environmental and social impacts

13 Energy saving

15 Reinforcement of raw materials management

Key area 2. improving resource consumption efficiency

1 Response to climate changeWater (303) 19

18 Response to water shortages

Key area 3. achieving zero serious accidents 2 Employee safety/health Occupational health and safety (403) 21-25

Key area 4. raising the level of human rights management

3 Responsible management of supply chain Child labor (408)Forced labor (409)

Human rights assessment (412)Social impact assessment of

supply chain (414)

26-2816 Prohibition of child/forced labor

17 Reflection of human rights factors in inspection when making investment decisions and agreements

Key area 6. practicing transparent, responsible business management 9 Responsible organization and operation of

the BOD General disclosure (102) 32-35

ESG management

reporting

1. Risk management 10 Integrated management of financial and non-financial risks (environment and social) General disclosure (102) 38-39

2. R&D and innovation 4 Securing new growth engines Economic performance (201) 40-41

3. Environmental management 20 Establishment of an environmental management system Compliance with environmental laws (307) 42-43

4. Organizational culture5 Fostering of an enjoyable corporate culture Employment (401)

Training & education (404)44-46

8 Development of talented individuals and fair compensation based on performance

5. Products/services accountability7 Reinforcement of responsibility for products/services

Consumer health and safety (416) 47-4911 Enhancement of customer satisfaction activities

6. Information security 19 Reinforcing protection of customer information Customer privacy (418) 50-51

7. Social contribution 14 Establishment of social contribution strategy and management of performance Local community (413) 52-54

8. Compliance 6 Strengthening of ethical management Anti-corruption (205) 55-57

International (MSCI), Corporate Sustainability Assessment (CSA), Korea Corporate Governance Service, Sustainalytics, Sustainability Account-ing Standards Board (SASB), and Taskforce on Climate-related Financial Disclosures (TCFD), conducted media research, and benchmarked com-panies with excellent ESG evaluations in each industry. Samsung C&T also conducted a survey on the importance of the identified issues with employees, and finally completed the materiality assessment by analyz-ing business relevance and stakeholder interest.

Result of materiality assessment

Process of materiality assessment

Identification ValidationPrioritization

Deriving ESG issue pool

Analysis of global initiatives - Evaluation of GRI, MSCI, CSA, CGS,

SASB, TCFD, and Sustainalytics (982 issues in total)

Creation of pool of important issues - Total of 35 significant issues derived

1) The purpose of this analysis was to select important issues2) The benchmarks were selected based on the companies

that received excellent ESG evaluations in the sectors of holdings, E&C, T&I, fashion, and resorts.

3) Conducted in March-April 2021

Employee survey 3)

Overview of survey on importance of issues - Assessment of importance of selected

issues for sustainable managementSurvey respondents

- Employees of major departments at Samsung C&T

Analysis of business relevance and stakeholder interest

X-axis: business relevance - Employee survey - Results of Materiality Assessment from

previous yearY-axis: stakeholder interest

- Results of benchmark analysis - Results of media analysis - Results of global initiative analysis

Final selection of important issues

Review by sustainable management expert

Review of data from the survey results - Comprehensive review of sustainable

management and related issues, characteristics of respondent group, number of respondents, etc.

Identification of importance of issues - Identification of importance of issuesChecking of results of Materiality Assessment

Prioritization of important issues

Review of pool of important issues

Overview - Review of significant issues based on

media, benchmarking, and global initiatives

Media analysis1)

- Review of news articles published in 2020 related to Samsung C&T (601 articles)

- Analysis of impact of news articles pub-lished in 2020 related to Samsung C&T

Analysis of benchmarks2)

- Review of pool of significant issues for conglomerates

- Analysis of pool of significant issues for conglomerates

The company addressed these 20 important issues in detail in a report to inform the stakeholders regarding their issues of interest. The report addresses the issues related to the long-term ESG strategies of Sam-sung C&T in connection with the key areas and discusses the remaining issues under “management issues”.

* Business relevance: results of employee survey* Stakeholder interest: comprehensive results of analysis of global

initiatives, BM companies, and media

2

5

8

19

11

3

21

24

2923

26 22

252830

2731

32333435

1

2018 15

13

4

6

1012

7917

1416

1st tier

2nd tier

Business relevance

Sustainability management issue matrix

Environment Society Economy Governance

Stak

ehol

der i

nter

est

Significant issues related to Samsung C&T's sustainability management

Enhancement of customer satisfaction activities

11

Establishment of social contribution strategy and management of performance

14

Establishment of an environmental management system

20

Strengthening of customer information protection

19

Securing new growth engines4

Strengthening of ethical management6

Development of talented individuals and fair compensation based on performance

8

Reinforcement of responsibility for products/services

7

Integrated management of financial and non-financial risks

10

Management issue

Net Zero roadmap and contribution to

realization of circular economy

Responsible organiza-tion and operation of the BOD

9Response to climate change

1

Development of products considering environmental and social impacts

12

Energy saving13

Reinforcement of raw materials management

15

Response to water shortages

18

Employee safety/health2

Responsible manage-ment of supply chain

3

Fostering of enjoyable corporate culture

5

Prohibition of child/forced labor

16

Reflection of human rights factors in inspec-tion when making investment decisions and agreements

17

Linking the key areas of ESG strategy with significant issues

Respect for basic rights and spreading a

corporate culture of mutual cooperation

Realization of board-centered

responsible business management


Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









ESG strategy framework and SDGs

Vision Realization of sustainable growth through corporate social responsibility

Strategydirection

Net Zero roadmap and contribution to realization of circular economy

Respect for basic rights and spreading a corporate culture of mutual cooperation

Realization of board-centered responsible business management

Key area· Strengthening GHG reduction· Improving efficiency of resource consumption

· Achieving zero serious accidents· Raising the level of human rights management· Strengthening collaboration with partner companies

· Improvement of independence, profes-sionalism, and diversity within the struc-ture of the BOD

· Expansion of the role of the BOD in strategic decision-making

· Maintaining internal stability of the BOD and expanding external communication

SDGs

Specific SDG targets

· Improvement in energy efficiency and increase of investment in development of clean energy technology

· Sustainable and efficient use of natural resources and reduction of waste

· Strengthening of necessary measures and capacities to mitigate climate change

· Creation of quality jobs and encouragement of establishment and growth of small businesses and SMEs

· Eradication of forced labor and human trafficking and prohibition of child labor

· Promotion of non-discriminatory laws and policies for sustainable development

· Securement of equal opportunities for women's participation and leadership

· Reduction of corruption· Establishment of effective, responsible, transparent systems

Key achievements

· Declaration of “coal exit”· Efforts to improve energy efficiency, i.e. operation of a solar plant at construction sites and improvement of energy efficiency of buildings

· Expansion of solar power generation businesses and manufacturing of products using upcycling

· Achievement of “zero” direct landfill of construction waste

· Establishment of a disaster prevention system using robotics, IoT, and Big Data technologies

· Execution of inspections of labor standards and human rights such as use of child labor and forced labor, and guaranteed labor rights (business sites/partner companies)

· Execution of diversity/anti-discrimination training for employees and encouragement of use of parental leave

· Appointment of external director as chair of the BOD

· Appointment of female and foreign independent director

· Expansion and reorganization of the ESG Committee

· Establishment of Compliance Team under the direct control of the BOD

Report 16-19 20-30 31-35

Social contribution strategy and SDGs

UN SDGs

1 No poverty

End all forms of poverty everywhere

2 Zero hunger

End hunger, achieve food security and improved nutrition, promote sustainable agriculture

3 Good healthand well-being

Ensure healthy lives and promote well-being for everyone of all ages

5 Gender equality

Achieve gender equality and empower all women and girls

4 Quality education

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

6 Clean waterand sanitation

Ensure availability and sustainable management of water and sanitation for all

7 Affordable andclean energy

Ensure access to affordable, reliable, sustainable, and modern energy for all

8 Decent work andeconomic growth

Promote ongoing, inclusive, and sustainable economic growth, full and productive employment, and decent work for all

9 Industry,innovation and infrastructure

Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation

11 Sustainble citiesand communities

Make cities and human settlements inclusive, safe, resilient, and sustainable

10 Reducedinequalities

Reduce inequality within and among countries

12 Responsibleconsumption andproduction

Ensure sustainable consump-tion and production patterns

13 Climate action

Take urgent action to com-bat climate change and its impacts

14 Life below water

Conserve and sustainably use the oceans, seas, and marine resources for sustainable development

15 Life on land

Protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably man-age forests, combat desertifi-cation, halt and reverse land degradation, and halt loss of biodiversity

16 Peace, justice and strong institutions

promote peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable, and inclusive institutions at all levels

17 Partnershipsfor the goals

Strengthen the means of implementation and revitalize global partnerships for sustainable development

The Sustainable Development Goals (SDGs) were adopted by the UN General Assembly in September 2015, and aim to build a sustainable society through social development, environmental protection, and inclusive economic growth from 2016 to 2030. As a member of the international com-munity that operates businesses around the world, Samsung C&T supports the UN SDGs and conducts various activities to practice the philosophy of “Leave no one behind.” Samsung C&T selects sustainable development goals where the company can contribute by linking them with Samsung C&T's ESG strategies and social contribution activities, then performs various activities to meet the specific goals.


GoalContribute to sustainable social development by actively engaging

in social responsibility activities that add to and share the value of life

Field of activity and direction of

strategy

Future generations Local communities

Fair start· Creation of an environment that promotes the develop-ment of individual competencies

· Provision of equal opportunities (education, etc.)· Support for socially disadvantaged groups (scholarship programs)

Safe & better community· Contribution to local communities utilizing business infrastructure

· Improvement of living conditions by providing food, clothing, shelter, and rest

SDGs

Specific SDG targets

· Equal access to education and vocational training for all, including children from socially disadvantaged backgrounds

· Promotion of social and economic inclusiveness for all· Achievement of universal health assurance

· Provision of assistance for the poor and vulnerable· Increase of income for small-scale farming households· International support for developing countries· Promotion of social and economic inclusiveness for all

Major programs Junior C&T Academy Emergency COVID-19 support

Programs by business group

E&C Junior E&C Academy E&C Samsung Village

T&I Scholarship program for children from multicultural families T&I Support for farms with the

“One Company, One Village” campaign

Fashion Support for children with disabilities, HEART FOR EYE Fashion Clothing for people with disabilities, HEARTIST

Resort Support for children with rare and refractory diseases Resort Provision of winter expenses

for local welfare facilities

Report 52-54 52-54

62 63


Company Overview

About Samsung C&T

Business Portfolio

Global Network



Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









64 65

Samsung C&T manages the three important issues identified through the Materiality Assessment as shown below. Furthermore, performance of the important issues is reflected in the MBO of executives in the related departments, which is then linked to short-term and long-term performance rewards.


Response to climate changeWith the declaration of the Net Zero policy by 2050 by major countries around the world and the rapidly changing consumer awareness accelerated by the COVID-19 pandemic, response to climate change has emerged as a critical assignment for corporate management across all business processes. Sam-sung C&T surpassed the internal GHG emissions reduction target for 2020 and established a long-term emissions goal to be met by 2030 based on the SBTi. Samsung C&T has also built the foundation for the disclosure of information (2022) based on TCFD standards, and has been steadily expanding its busi-ness portfolio in the area of eco-friendly business projects including renewable energy and upcycling.

Activities in 2020Declaration of “coal exit”, expansion of business portfolio to new and renewable energy, and development and distribution of GHG emission reduction methods that reflect the nature of the business such as operating a solar-powered pilot plant

(Unit: tCO₂e / Scope: Scope 1+2)

Performance

2016 2017 2018 2019 2020 2021(Target)

231,637 242,377189,180

239,395 232,224

362,535

Actual GHG emissions

* Reference: p17-18

Responsible management of supply chainResponsible management of supply chains is one of the core elements of ESG risk management at Sam-sung C&T, which operates construction and trade businesses around the world. The company oper-ates an ESG inspection system for partner compa-nies to assess their performance in areas including labor standards, human rights, safety, and environ-ment and to reflect the results when selecting new partner companies. It also promotes sustainable mutual growth with partner companies by providing financial, technological, and human service-related support to help them to strengthen their capabilities.

Activities in 2020Management of the supply chain through ESG inspection and evaluation, provision of financial and technical support for partner companies, strengthening of partnerships and capabilities, support for co-prosperity.

Performance

* Reference: p24, 27, 29-30

ESG inspection rate of partner companies

Results of shared growth index evaluation

2018 20182019 20192020 20202023(Target) 2023(Target)

74100

56

0

Excellent

Excellent

Excellent

Good

Excellent

Top Rank

Top Rank

Top Rank

E&C Fashion

Fatalities per 10,000 workers (E&C) Lost time injury rate (E&C)

(Unit: %)

Health and safetySamsung C&T operates a construction business, which is in an industry with a relatively higher rate of accidents compared to the other types of busi-ness, and a resort facility which is visited by around 8 million people annually. For this reason, the com-pany considers protection of the safety of workers and customers as its top priority. With the enactment of the Serious Accident Punishment Act in Korea in 2021, the importance of safety management has increased even more. Accordingly, Samsung C&T has enhanced the health and safety management sys-tem of the company while implementing health and safety management measures that are customized to each business sector to ensure the safety of our employees, partner companies, and customers.

Activities in 2020Operation of a company-wide health and safety policy based on Occupational Health and Safety Management Systems (OHSMS), operation of serious disaster eradication task force, safety training such as through the Safety Academy, prevention of disasters using technology, safety inspection of partner companies, support for enhancing capacities, etc.

Performance

2018 20182019 20192020 20202021(Target) 2021(Target)

0.12 0.004

0.00 0.002

0.54

0.0090.25

0.016

* Reference: p21-25

Consolidated statements of financial position57th period

(Jan. 1 - Dec. 31, 2020)56th period

(Jan. 1 - Dec. 31, 2019)55th period

(Jan. 1 - Dec. 31, 2018)Assets

Current assets 12,900,559 11,753,695 13,671,292 Cash and cash equivalents 2,402,466 2,704,409 2,903,538 Short-term financial products 442,083 451,729 638,374 Financial assets measured at fair value through profit or loss 710,107 210,040 540,081 Other inclusive income or loss – financial assets measured at fair market value 115 183 151

Trade receivables and other receivables 5,078,489 4,369,733 4,883,449 Other current assets 2,248,035 2,120,218 3,006,398 Inventory assets 2,019,263 1,897,382 1,699,301

Assets held for sale 23,050 0 0 Non-current assets 41,408,132 34,151,822 28,735,360

Financial assets measured at fair value through profit or loss 254,763 243,162 179,430 Other inclusive income or loss – financial assets measured at fair market value 30,013,815 22,596,168 17,948,249

Investment in affiliates and joint ventures 3,626,039 3,676,828 3,627,971 Tangible assets 4,851,261 4,926,029 5,024,404 Investment real estate 139,416 147,339 40,947 Biological assets 5,390 5,115 2,085 Intangible assets 779,575 883,360 1,061,448 Right-of-use assets 364,609 397,632 0 Deferred tax assets 111,801 117,921 97,804 Other non-current assets 1,249,504 1,158,268 753,023 Net defined benefit assets 11,958 0 0

Total assets 54,331,740 45,905,517 42,406,652 Liabilities

Current liabilities 10,888,459 10,929,358 13,016,831 Trade payables 2,001,152 1,558,089 1,685,645 Short-term borrowings 1,419,563 1,927,232 1,369,502 Current portion of long-term borrowings 707,415 785,783 1,893,832 Current tax liabilities 148,739 59,964 475,590 Other current liabilities 6,611,590 6,598,291 7,592,263

Debts to be sold 1,181 0 0 Non-current liabilities 10,496,618 8,284,062 6,840,886

Debentures and long-term borrowings 1,018,690 704,315 1,253,312 Net defined benefit liabilities 47,540 102,540 107,723 Deferred tax liabilities 8,097,093 6,250,333 4,964,980 Provisions 470,313 414,315 321,504 Other non-current liabilities 862,982 812,559 193,366

Total liabilities 21,386,258 19,213,420 19,857,717 Equity

Equity attributable to owners of parent company

30,197,978 24,096,134 19,946,590

Capital 18,851 19,132 19,132 Capital surplus 10,482,243 10,466,963 10,468,876 Other components of equity 11,369,762 6,009,046 2,509,117 Retained earnings 8,327,122 7,600,994 6,949,465

Non-controlling interests 2,747,504 2,595,962 2,602,345

Total equity 32,945,482 26,692,096 22,548,935 Total liabilities and equity 54,331,740 45,905,517 42,406,652

(Unit: KRW 1 million)

Sustainability Performance Indicators (Economic)


Company Overview

About Samsung C&T

Business Portfolio

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Strategy and System

Environmental

Social

Governance


1. Risk Management







8. Compliance

Appendix









66 67

Consolidated statement of comprehensive income57th period

(Jan. 1-Dec. 31, 2020)56th period

(Jan. 1-Dec. 31, 2019)55th period

(Jan. 1-Dec. 31, 2018)

Net sales 30,216,119 30,761,501 31,155,637 Cost of sales 26,850,633 26,958,672 27,170,328 Gross profit 3,365,486 3,802,829 3,985,309 Selling and administrative expenses 2,508,406 2,936,059 2,881,419 Operating profit (loss) 857,080 866,770 1,103,890 Other income 1,252,828 1,317,626 2,152,889 Other expenses 785,515 745,418 1,001,569 Financial income 169,529 157,813 254,238 Financial expenses 190,391 193,237 298,564 Share of profit of associates and joint ventures 195,825 140,888 349,608 Share of loss of associates and joint ventures 34,201 17,880 177,754 Profit (loss) before income tax 1,465,155 1,526,562 2,382,738 Income tax expense 304,504 478,671 634,494 Net profit (loss) for the year 1,160,651 1,047,891 1,748,244 Other comprehensive income for the year 5,374,223 3,445,007 (3,856,079)

Items that may be subsequently reclassified as profit or loss (78,377) 15,196 27,033

Capital change by equity method (33,090) (21,930) 29,493 Gain (loss) on foreign currency translation of foreign operations (45,406) 39,650 7,521

Gain (loss) from evaluation of derivatives for hedging cash flow risks 120 (2,524) (9,981)

Items that will not be reclassified as profit or loss 5,452,600 3,429,811 (3,883,111)Capital change by equity method (35,964) 37 (664)

Other comprehensive income or loss – Gains or loss from evaluation of financial assets measured at fair value

5,469,626 3,492,443 (3,825,037)

Remeasurement factor of net defined benefit liabilities 18,937 (62,670) (57,410)

Total comprehensive income 6,534,874 4,492,898 (2,107,835)Profit (loss) attributable to:

Owners' Stake in Parent Company 1,035,495 1,050,076 1,712,790 Non-controlling interest 125,156 (2,185) 35,453

Total comprehensive income attributable to:Owners' Stake in Parent Company 6,416,501 4,493,654 (2,150,130)Non-controlling interest 118,372 (756) 42,296

Earnings per share Basic earnings (loss) per share (unit: KRW) 6,278 6,366 10,384

(Unit: KRW 1 million)

CapitalShares of owners of parent company

Non-controlling interest Total capitalCapital Capital

surplusRetained earnings Other capital

Total shares of owners of

parent companyJan. 1, 2018 (capital at beginning of period) 19,132 10,468,265 5,755,405 6,313,950 22,556,752 2,594,498 25,151,250 Cumulative effect of accounting changes (130,096) (130,096) (21,224) (151,319)Profit (loss) for the year 1,712,790 1,712,790 35,453 1,748,244 Other comprehensive income or loss – Gains or loss from evaluation of financial assets measured at fair value (3,825,037) (3,825,037) 0 (3,825,037)

Other comprehensive income or loss – Reclassified due to disposal of financial assets measured at fair value (958) 958 0 0 0

Capital change in equity method 27,759 27,759 1,070 28,829 Gain (loss) on foreign currency translation of foreign operations 1,506 1,506 6,015 7,521

Gain (loss) from evaluation of derivatives for hedging cash flow risks (10,015) (10,015) 34 (9,981)

Remeasurement of net defined benefit liabilities (57,133) (57,133) (277) (57,410)Dividend income (329,938) (329,938) (11,055) (340,993)Additional acquisition of non-controlling shares 0 0 0 Cancellation of treasury stock 0 0 0 Non-controlling equity rights issue, etc. 611 (606) (3) 2 (2,170) (2,168)Dec. 31, 2018 (capital at end of period) 19,132 10,468,876 6,949,465 2,509,117 19,946,590 2,602,345 22,548,935 Jan. 1, 2019 (capital at beginning of period) 19,132 10,468,876 6,949,465 2,509,117 19,946,590 2,602,345 22,548,935 Cumulative effect of accounting changes (11,860) (11,860) 0 (11,860)Profit (loss) for the year 1,050,076 1,050,076 (2,185) 1,047,891 Other comprehensive income or loss – Gains or loss from evaluation of financial assets measured at fair value 3,492,443 3,492,443 0 3,492,443

Other comprehensive income or loss – Reclassified due to disposal of financial assets measured at fair value 4,701 (4,701) 0 0 0

Capital change in equity method (22,125) (22,125) 233 (21,892)Gain (loss) on foreign currency translation of foreign operations 36,626 36,626 3,024 39,650

Gain (loss) from evaluation of derivatives for hedging cash flow risks (2,352) (2,352) (173) (2,524)

Remeasurement of net defined benefit liabilities (61,014) (61,014) (1,655) (62,670)Dividend income (329,937) (329,937) (6,219) (336,156)Additional acquisition of non-controlling shares 0 0 0 Cancellation of treasury stock 0 0 0 Non-controlling equity rights issue, etc. (1,914) (436) 38 (2,312) 592 (1,720)Dec. 31, 2019 (capital at end of period) 19,132 10,466,963 7,600,994 6,009,046 24,096,134 2,595,962 26,692,096 Jan. 1, 2020 (capital at beginning of period) 19,132 10,466,963 7,600,994 6,009,046 24,096,134 2,595,962 26,692,096 Cumulative effect of accounting changes 0 0 0 Profit (loss) for the year 1,035,495 1,035,495 125,156 1,160,651

Other comprehensive income or loss – Gains or loss from evaluation of financial assets measured at fair value 5,469,626 5,469,626 0 5,469,626

Other comprehensive income or loss – Reclassified due to disposal of financial assets measured at fair value 5,248 (5,248) 0 0 0

Capital change in equity method (68,836) (68,836) (218) (69,054)Gain (loss) on foreign currency translation of foreign operations (35,246) (35,246) (10,160) (45,406)

Gain (loss) from evaluation of derivatives for hedging cash flow risks 139 139 (20) 120

Remeasurement of net defined benefit liabilities 15,323 15,323 3,615 18,937 Dividend income (329,937) (329,937) (2,478) (332,416)Additional acquisition of non-controlling shares 15,280 15,280 (18,440) (3,160)Cancellation of treasury stock (280) 280 0 0 0 Non-controlling equity rights issue, etc. 0 54,087 54,087 Dec. 31, 2020 (capital at end of period) 18,851 10,482,243 8,327,122 11,369,762 30,197,978 2,747,504 32,945,482

Consolidated statements of changes in equity (Unit: KRW 1 million)


68 69

57th period(Jan. 1 - Dec. 31, 2020)



Cash flows from operating activities 1,267,897 770,850 1,678,377 Cash generated from operations 914,401 759,909 1,201,368 Interest received 47,148 142,928 155,567 Interest paid (96,394) (127,222) (224,366)Dividends received 678,002 787,971 629,367 Income taxes paid (275,260) (792,737) (83,559)

Cash flows from investing activities (848,355) 607,140 167,792 Cash inflow from investing activities 1,756,555 2,450,097 2,727,519

Disposal of assets held for sale 10,700 46,600 63,589 Net decrease in short-term financial instruments 8,388 192,129 0 Decrease in short-term loans 0 127,391 0 Decrease in current portion of long-term receivables 0 0 58 Disposal of financial assets at fair value through profit or loss 1,549,323 1,771,420 750,024 Disposal of financial assets at fair value through other comprehensive income 11,427 21,341 1,253 Disposal of investments in subsidiaries 0 41,358 3,504 Disposal of investments in associates and joint ventures 5,374 66,808 793,208 Decrease in long-term receivables 40,087 92,677 3,128 Decrease in deposits 85,576 74,000 49,987 Disposal of tangible assets 39,541 12,333 184,712 Disposal of intangible assets 1,408 367 2,526 Disposal of investment properties 3,772 0 869,424 Disposal of other non-current assets 958 3,673 6,106

Cash outflow from investment activities (2,604,910) (1,842,957) (2,559,727)Increase in short-term financial products 0 0 (528,305)Increase in short-term loans (26,211) 0 (1,189)Acquisition of financial assets at fair value through profit or loss (2,044,061) (1,270,079) (1,290,442)Acquisition of financial assets at fair value through other comprehensive income (3,695) (1,298) (2,910)Acquisition of investments in associates and joint ventures (5,657) (29,650) (16,704)Increase in long-term receivables (133,496) (44,536) (18,035)Increase in deposits (60,635) (78,643) (79,310)Acquisition of tangible assets (284,855) (345,123) (540,363)Acquisition of intangible assets (36,879) (42,581) (64,389)Acquisition of investment properties 0 (21,103) 0 Cash outflow due to changes in scope of consolidation (195) (7) (17,170)Increase in other non-current assets (9,226) (9,936) (910)

Cash flows from financing activities (616,302) (1,612,355) (1,884,736)Cash inflow from financing activities 1,017,703 557,223 362,940

Net increase in short-term borrowings 0 491,491 0 Proceeds from debentures issuance 309,171 0 189,579 Increase in long-term borrowings 654,985 65,579 170,757 Increase in rental deposit 0 154 2,604 Non-controlling equity rights issue 53,548 0 0

Cash outflow from financing activities (1,634,005) (2,169,579) (2,247,676)Payment of dividends (329,937) (329,937) (329,938)Net decrease in short-term borrowings (459,846) 0 (836,665)Repayment of current portion of long-term borrowings (602,166) (1,693,737) (1,038,750)Repayment of long-term borrowings (103,866) 0 (30,131)Decrease in leasehold deposits received (2,650) (3,960) (1,134)Acquisition of treasury stock 0 0 (3)Payment of leases (129,603) (134,054) 0 Additional acquisition of non-controlling interests (2,478) (1,493) 0 Capital reduction at cost on non-controlling interests 0 (178) 0 Dividend income on non-controlling interests (3,459) (6,219) (11,055)

Net increase (decrease) in cash and cash equivalents before reflecting effects of exchange rate changes (196,761) (234,365) (38,567)

Effects of exchange rate changes on cash and cash equivalents (105,182) 35,236 (51,047)Net increase (decrease) in cash and cash equivalents (301,943) (199,129) (89,614)Basic cash and cash equivalents 2,704,409 2,903,538 2,993,152 Cash and cash equivalents at the end of the year 2,402,466 2,704,409 2,903,538

Consolidated statements of cash flows (Unit: KRW 1 million)

Indicator Unit 2018 2019 2020

Number of business /project sites

Domestic sites 103 97 106

Overseas sites 37 34 36

Total sites 140 131 142

Revenue1) KRW 100 million 286,810 279,420 269,251

Sustainability Performance Indicators (Environmental)

0. Scope of data collection


Energy consumption

Total GJ 6,454,980 6,219,533 5,430,990

LPG GJ 11,089 13,470 16,371

Diesel GJ 2,298,117 1,772,038 2,025,028

City gas GJ 782,968 760,635 690,781

Kerosene GJ 148,968 157,140 32,805

Electricity GJ 2,710,373 2,976,620 2,363,464

Jet fuel GJ 168,971 243,630 40,801

Gasoline GJ 49,324 32,656 33,749

Heavy oil GJ 4,696 0 0

Other (heat, steam, etc.) GJ 280,475 259,922 227,991

Renewable energy GJ 0 3,421 4,891

Cost of annual energy consumption KRW 1 million 44,539 43,647 34,721

Energy consumption against revenue GJ/KRW 100 million 22.5 22.3 20.2

1. Energy consumption

1) Revenue of E&C, T&I, Fashion, and Resort Groups


Total emissions

Total tCO2e 381,193 359,622 301,393

Scope 1 tCO2e 87,115 80,911 76,943

Scope 2 tCO2e 144,523 161,466 112,237

Scope 3 tCO2e 149,555 117,245 112,213

Domestic

Total tCO2e 264,876 243,035 197,449

Scope 1 tCO2e 32,121 31,194 14,584

Scope 2 tCO2e 83,200 94,596 70,653

Scope 3 tCO2e 149,555 117,245 112,213

Overseas

Total tCO2e 116,317 116,587 103,944

Scope 1 tCO2e 54,994 49,717 62,360

Scope 2 tCO2e 61,323 66,870 41,584

Scope 3 tCO2e 0 0 0

GHG emissions against revenue

tCO2e /KRW 100 million 1.34 1.29 1.12


Water consumption

Total ton 8,489,794 8,789,881 6,855,115

Water supply ton 2,358,962 2,943,355 2,137,152

Stream water ton 2,379,164 2,180,448 1,565,520

Ground water ton 1,955,006 1,886,834 1,688,413

Other1) ton 0 0 77,878*

Recycled water ton 1,796,662 1,779,244 1,386,152

Proportion of recycled water % 21.2 20.2 20.2

Total water consumption in locations with water2)

Total ton 144,291 273,988 154,253

Surface water ton 144,291 273,988 145,478

Ground water ton 0 0 8,775

Other water sources ton 0 0 0

Water resources affected by water intake Units 21 16 13

2. Status of greenhouse gas emissions 3. Water consumption

1) “Other water use” refers to pond water of overseas construction sites.2) Locations with water shortages” refers to the water intake of each of the 44 countries

by the World Resources Institute (WRI) standard.

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70 71


Steel rebar ton 127,529 100,404 102,073

Ready-mixed concrete m³ 2,782,125 1,760,276 1,440,694

Recycled aggregate m³ 5,000 0 748

Cement ton 398,371 174,375 219,313

Sand m³ 75 942 11,733

Aggregate m³ 534,575 638,384 420,689

Asphalt concrete ton 84,042 42,136 57,358

Paper ton 639 638 620

Wool LB 1,824,017 1,518,227 1,284,293

4. Resource consumption


Construction waste

Waste ton 722,407 771,662 718,475

Recycled waste ton 204,202 61,126 54,009

Business site waste

Waste ton 43,205 231,002 219,919

Recycled waste ton 30,468 220,201 200,146

Designated waste ton 2,732 2,782 2,048

Amount of discharged

wastewater1)

Total ton 1,118,191 1,096,879 815,918

Surface water ton 1,118,191 1,096,879 815,918

Ground water ton 0 0 0

Sea water ton 0 0 0

5. Discharge of waste/waste water

1) Amount of wastewater consigned to a wastewater treatment company (excluding amount discharged after self-purification)


Amount of ODS produced tCFC-11 0 0 0

Amount of ODS imported tCFC-11 0 0 0

Amount of ODS exported tCFC-11 0 0 0

ODS intensity tCFC-11 0 0 0

6. Emissions of Ozone-depleting substances (ODS)


NOx ppm 167.3 242.3 189.1

SOx ppm 27.3 42.6 26.2

VOCs ppm 3.2 2.9 0.96

POPs kg 0 0 0

HAPs kg 0.3 0.3 0

Particulate matter (PM)1) mg/m3 166.6 166.8 68.8

Other emitted air pollutants2) kg 1125.6 550.7 356.3

7. Emissions of air pollutants

1) Data revised for 2018 and 20192) HF, HCl, NH3, etc.


Amount of hazardous chemical substances used1) metric ton 573 519 379

Cases of leakage of hazardous chemical substances cases 0 0 0

8. Hazardous substances

1) Hazardous chemicals are toxic/permitted/restricted/prohibited/accident-preparation materials as stipulated in the “Toxic Chemicals Control Act”, and other hazardous or dangerous chemicals.


Number of project sites withhigh value of biodiversity number 10 7 7

Protected or restored habitats number 13 8 8

Scale of location whose biodiversity was affected by

business activities, products, or serviceskm2 168 12 12

Period of time during which biodiversity was affected by

business activities, products, or servicesdays 3,408 2,555 2,310

Number of endangered species, designated by the International Union for Conservation of Nature (IUCN) and domestic regulations, inhabiting areas

affected by business projects

number 0 0 0

Number of protected wildlife species

Class 1 species 17 14 14

Class 2 species 2 1 1

Species whose capture is prohibited species 15 12 12

9. Biodiversity (E&C)

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Social

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1. Risk Management







8. Compliance

Appendix










72 73


Number of violations of environmental laws1) cases 16 8 5

Financial value of fines incurred due to violations of environmental laws KRW 1,000 59,083 9,300 14,240

Number of non-monetary sanctions imposed for violations of environmental laws cases 2 3 1

Indicator Unit Business sites Partner companies

Scope of application1) % 100 100

External certification (ISO14001)2) % 90 97

Internal Management System % 10 3

10. Environmental laws

11. Environmental management system certification (2020)

1) The above numbers are the number of cases of more than a fine for negligence, counted according to internal environmental accident regulations.

1) Based on 102 business sites operated by Samsung C&T and 15,512 partner companies2) 92 business locations with external certifications and 15,098 partner companies with such certifications applied


Environmental R&D costs KRW 1 million 17,243 6,677 14,078

Total environmental management expenses

Capital investments KRW 1 million 10,144 7,466 4,917

Operational expenses KRW 1 million 20,608 28,335 21,448

Total KRW 1 million 30,752 35,801 26,366

Environmental accident prevention expenses KRW 1 million 1,687 1,578 775

12. Total investment and expenses related to the environment


Building energy intensity kWh/m2 122.7 108.3 81.4

Building water intensity ton/m2 0.85 0.56 0.52

Building GHS emissions intensity tCO2e/m2 0.07 0.06 0.05

Construction project GHS emissions intensity

tCO2e/KRW 100 million 0.58 0.63 0.32

Indicator Unit Total amount Proportion to sales3) Reduction rate (%)

Greenhouse gas1) tCO2e 239,395 0.86 53.5

Water ton 7,272,302 26.1 24.6

Waste2) ton 787,238 2.82 28.6

1) The greenhouse gas goals are based on direct emissions (Scope 1) + indirect emissions (Scope 2)2) The waste goals apply to the E&C Group (construction waste), the T&C Group (construction/business site / designated waste), the Fashion Group

(business site / designated waste), and the Resort Group (business site / designated waste)3) Sales costs are based on performance per KRW 100 million in sales, and the reduction rate is based on 2016 sales costs

13. Construction industry-specific indicators

14. Environmental goals (2021)


Total number of employees people 17,274 16,580 16,075

GenderMale people 13,642 13,131 12,818

Female people 3,632 3,449 3,257

Location of Work

Domestic people 8,075 8,171 8,029

Overseas people 9,199 8,409 8,046

Middle East/Africa people 1,244 1,042 778

China people 763 590 560

Southeast Asia /Southwest Asia/Japan people 5,911 5,567 5,517

Europe/CIS people 921 844 821

North America/Central and South America people 380 366 370

Employment

Permanent

Total people 8,121 8,035 7,830

Male people 6,374 6,295 6,190

Female people 1,747 1,740 1,640

Contract

Total people 9,153 8,545 8,245

Male people 7,268 6,834 6,628

Female people 1,885 1,708 1,617

Age(based on

permanent employees)

20s people 913 730 565

30s people 3,444 3,328 3,100

40s people 2,768 2,760 2,752

50s and above people 999 1,217 1,413

Job title (based on


Executives

Total people 150 148 148

Male people 145 143 140

Female people 5 5 8

Managers

Total people 4,884 5,095 5,248

Male people 4,177 4,310 4,437

Female people 707 785 811

Staff

Total people 3,087 2,792 2,434

Male people 2,059 1,842 1,613

Female people 1,028 950 821

Sustainability Performance Indicators (Social)

| Employees |

1. Current employment status

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74 75


Employees with disabilities1)

(cumulative total)

Number of employees with disabilities people 2,567 2,409 2,511

Number of employees regularly employed people 154,632 152,663 143,572

Proportion of employees with disabilities % 1.66 1.58 1.75

New recruits(based on



(Ratio) (%) (2.9) (2.5) (1.5)

GenderMale people 125 113 86


Age

Under 30 people 157 121 64

30-50 people 86 77 52

Over 50 people 0 7 3

Turnover and retirement

(based on permanent employees)


(Ratio) (%) (7.0) (4.2) (3.8)



Age

Under 30 people 69 71 47

30-50 people 360 204 191

Over 50 people 148 70 68

Voluntary turnover (based on



(Ratio) (%) (6.7) (4.0) (3.8)



Averagenumber of employees

Total people 8,279 8,141 7,995

Male people 6,503 6,382 6,281

Female people 1,776 1,759 1,714

Average number of years of continuous service2) years 10.5 11.3 12.1

Average cost of employment per employee KRW 4,640,000 6,100,000 5,800,000

1) Based on the standards announced by the Korea Employment Agency for Persons with Disabilities within the Ministry of Employment and Labor2) Based on the company’s annual report


Rate of participation in labor-management council % 38.0 88.71) 89.8

Union membership % 0.3 0.3 0.3

4. Labor-management relations

Indicator Category Unit 2018 2019 2020

User of parental leave




Parental leave beneficiary

Total people 4,430 4,266 4,239



Returnee from parental leave


(Ratio) (%) 84 88 88



Expected returnee from parental leave




Employees who worked more than 12 months after returning from

parental leave


(Ratio) (%) 83 84 90



Employees expected to work more than 12

months after returning from parental leave




2. Number of employees on parental leave

Indicator Category Unit Base pay Base pay + bonuses

Female/male pay ratio

Executive % 72 58

Manager % 79 71

Non-manager % 78 77

3. Male/female equal compensation (2020)

1) Expanded target employee bracket from Junior-level employees only to all employees except executives and department heads

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76 77

1) Based on all employees including permanent, contract, and locally hired employees.


Total number of trainees

Total people 55,431 101,832 79,808


Female people 13,668 20,055 16,042

Total training hours

Total hours 655,986 656,974 514,892

GenderMale hours 515,399 519,717 417,185

Female hours 140,587 137,257 97,707

Total investment in training

Total KRW 1 million 9,616 9,385 5,884

GenderMale KRW 1 million 7,349 7,382 4,654

Female KRW 1 million 2,267 2,003 1,230

Training hours per person

Total hours 38.0 39.6 32.0

GenderMale hours 37.8 39.6 32.5

Female hours 38.7 39.8 30.0

Training investment cost per person

Total KRW 1,000 556.7 566.0 366.0

GenderMale KRW 1,000 538.7 562.2 363.1

Female KRW 1,000 624.2 580.7 377.6

5. Employee training1)


Fatalities per 10,000 people (domestic)1) 0.25 0.54 0.12

Lost time incident rate (overseas)2) - 0.016 0.009 0.004

7. Construction safety indicators (E&C)


Rate of accident and illness occurrence - 0.2783 0.4870 0.2266

Rate of days taken off due to work-related injuries or illnesses % 0.0015 0.0002 0.0001

Rate of absence days due to work-related injuries or illnesses % 0.0009 0.0010 0.0011

8. Accidents and illnesses of employees1)

1) Deaths per 10,000 people = Number of deaths * 10,000 / Total number of workers 2) Lost Time Incident Rate (LTIR) = Lost Time (LTI) * 200,000 / Labor time

1) Includes permanent, contract, locally hired, and part-time employees within Korea and overseas2) Rate of accident and illness occurrence = Number of disasters for each 1 million hours of work (limited to recognized industrial accidents)3) Rate of days taken off = Total number of days taken off due to work-related accidents or illnesses / total number of workdays for all personnel within the reporting period4) Absence rate = Total number of absences due to work-related accidents or illnesses / total number of workdays for all personnel within the reporting period

Indicator Type Unit 2018 2019 2020

Number of accidents

Total cases 94 204 224

Domestic cases 77 186 214

Overseas cases 17 18 10

Employees cases 12 20 9

Partner companies cases 82 184 215

Fatalities

Total people 4 4 1

Employees people 1 1 0

Partner companies people 3 3 1

| Occupational safety |

6. Safety indicators

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Social

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1. Risk Management







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Appendix










78 79

| Human rights |


Proportion of employees who have completed human rights education programs % 100 100 100

Human rights risk inspection rate of business sites1) % N/A 77 79

Rate of confirmed risk countermeasures % N/A 92 77

11. Human rights risk management

1) Performed human rights risk inspections for business sites since 2019


Proportion of workers working under the control of the company who are represented by an official

labor-management health & safety committee% 38.0% 88.7% 89.8%

9. Labor-management health & safety committee

Indicator Unit Location Partner Companies

Scope of application1) % 100 100

External certification (ISO45001)2) % 94 97

Internal management system % 6 3

10. Organizational health and safety management system (2020)

1) Based on 102 business sites operated by Samsung C&T and 15,512 partner companies2) 96 business locations with external certifications and 15,098 partner companies that have applied such certifications


Total number of partner companies companies 14,272 14,867 15,512

Total number of major partner companies companies 8,334 7,784 8,101Amount of purchase from partner companies

(including goods and services) KRW 100 million 81,357 48,868 75,295

Financial support for partner companies

Management funds KRW 100 million 222 211 229Co-prosperity funds KRW 100 million 950 950 950

Technical support for partner companies

Technical support for partner companies KRW 100 million 23 18 49

Overseas partner companies by region

(E&C)

Total companies 10,677 11,339 11,956 Asia Pacific companies 5,901 6,330 6,768 Middle East companies 2,978 3,229 3,396

Americas companies 465 477 477 Europe companies 1,019 960 980 Africa companies 195 197 197

Others companies 119 146 138

Amount of orders placed to overseas

partner companies(E&C)

Total KRW 100 million 10,395 16,132 30,128Asia Pacific KRW 100 million 9,198 14,683 18,576Middle East KRW 100 million 864 1,164 9,775

Others KRW 100 million 333 285 1,777

Amount of Purchases by item

(E&C)

Total KRW 100 million 19,085 14,884 19,955General Material KRW 100 million 5,461 3,320 5,597

Steel Material KRW 100 million 3,486 3,133 5,248Finishing Material KRW 100 million 3,437 2,673 2,552

M&E Material KRW 100 million 6,701 5,758 6,558

| Supply chain |

12. Current status of partner companies

Indicator Unit 2018 2019 2020Total number of new suppliers that

received inspections on environmental and labor-related practices

companies 587 426 374

13. New partner companies that received inspections on environmental and labor-related practices


Supply chain assessed on environmental/social impact

Number EA N/A 466 568Ratio % N/A 56 74

Supply chains where problems relating to the environment have been identified

Number EA N/A 0 0Ratio % N/A 0 0

Supply chains where problems relating to

society have been identified

TotalNumber EA N/A 44 40

Ratio % N/A 5.3 5.2Supply chains that have completed implementing

improvement measures

Number EA N/A 13 6

Ratio % N/A 1.6 0.8

Supply chains whose contract was

terminated

Number EA N/A 31 34

Ratio % N/A 3.7 4.4

14. Environmental/social impact assessment of supply chain

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Social

Governance


1. Risk Management







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Appendix










80 81


Staff who completed training people 9,817 8,808 7,860


National Customer Satisfaction Index (NCSI)

Apartment Business rank (points) 1 (84) 1 (85) 1 (85)

Men's Casual Clothing Division rank (points) 1 (78) 1 (78) 1 (78)

Korean Customer Satisfaction Index (KCSI)

Comprehensive Leisure Facility Business rank (points) 1 (79) 1 (83) 1 (84)

Water Park Business rank (points) 1 (78) 1 (81) 1 (81)

Korean Standard Service Quality Index (KS-SQI)

Theme Park Business rank (points) 1 (75) 1 (76) 1 (77)

Water Park Business rank (points) 1 (68) 1 (69) 1 (69)

| Product accountability |

15. CS training

16. Customer satisfaction


Number of health and safety impact assessments of products and services cases 233 373 255

Violations of laws and regulations on safety and health effects of products and services (punishments, fines) cases 0 0 0

Violations of self-regulations on safety and health impact of products and services cases 14 33 29

Number of violations of customer information protection and loss of customer information cases 0 0 0

17. Customer health and safety


Violations of legal regulations and self-regulations related to labeling cases 0 0 0

Violations of legal regulations and self-regulation related to marketing/communication cases 0 0 0


Environmental/social impact assessments

of products(E&C)

Ratio of products that completed LCA % 23.8 19.8 23.8

Violations of environmental permits/stan-dards/regulations during project execution cases 16 8 5

Projects related to hydrocarbon and renewable energy cases 1 4 0

Canceled projects related to hydrocarbon and renewable energy cases 0 0 0

Non-energy projects related to greenhouse gas reduction cases N/A N/A N/A

Projects that have acquired/implemented sustainability certification cases 11 8 5

Projects conducted in the bottom 20 countries of the Corruption Perceptions

Index(cases/amount)cases/KRW 0 0 0

Mitigation of environmental impact

of products(E&C)

Revenue from low-carbon products KRW 1 million 748,644 210,742 538,355

Revenue from major low-carbon products (buildings with Green Certification) KRW 1 million 748,644 210,742 538,355

Annual emissions avoided by major low-carbon products tCO2-eq N/A N/A N/A

Revenue from products that prevent third-party emissions KRW 1 million 2,115,388 1,027,617 1,540,774

Emissions prevented by major products that prevent third-party emissions tCO2-eq N/A N/A N/A

Proportion of revenue made from products with environmental labels (independent environmental labels

such as Type I, II, III, LEED)

% 6.2 1.8 4.6

Product disposal responsibilities % N/A N/A N/A

Improvements to product/service

quality (all groups)

Cost of rework due to product defects and safety-related improvements KRW 1 million 8,547 9,029 9,852

18. Labeling of products and services

19. Product stewardship

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Social

Governance


1. Risk Management







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Appendix










82 83


Number of participants in social contribution people 28,814 33,243 15,875

Number of hours spent on social contribution hours 103,629 110,079 55,179

Amount spent1) KRW 100 million 170 181 192

20. Participation and expenditures in social contribution

| Social contribution |


Input by type of social contribution

donation

Monetary value of employees volunteering during working hours KRW 1 million 5,231 5,345 2,653

In-kind giving KRW 1 million 1,590 1,338 976

Cash donations KRW 1 million 6,646 7,442 5,980

Management overheads KRW 1 million 670 723 162

Ratio by type of social contribution

activities

Community investments in local communities % 46 49 39

Charitable donations % 38 38 34

Commercial initiatives1) % 16 13 27

21. Social contribution programs

Indicator Unit 금액

Lobbyist/lobby group KRW 1 million 0

Political campaign/candidate KRW 1 million 0

Committee or exempt organizations2) KRW 1 million 1,727

1) Samsung C&T does not participate in politics according to the Samsung Management Principles and Compliance Code of Conduct, and does not involve itself illegal transactions such as provision of illegal political funds, money laundering, etc. in any way.

2) Donations to Associations in 2020 (top 3 institutions) 1. Construction Association of Korea (KRW 530 million): An institution entrusted by the government for evaluation of construction

capabilities, research on construction laws/systems, etc. (under the Framework Act on the Construction Industry) 2. International Contractors Association of Korea (KRW 381 million): A legal association for research, analysis, and overseas

construction performance management, etc. (under the Overseas Construction Promotion Act) 3. Korea Chamber of Commerce and Industry (KRW 100 million): A private economic organization for promoting commerce and

industry within Korea by improving business environments, facilitating international trade cooperation, etc.

22. Policy-related financial assistance1) (2020)

1) Activities for promoting products and services as well as enhancing brand recognition such as supporting universities, sponsoring events, etc.

1) Based on company’s annual report

1) Subsidiaries are based on ownership of 100% of shares

Sustainability Performance Indicators (Governance)

| Compliance |


Number of participants people 47,523 94,215 101,697

1) Each participant was subject to 1 hour of training

1. Compliance and ethical management training1)


Number of participants in self-diagnosis people 17,596 16,242 14,586

Self-diagnosis participation rate % 97.0 97.9 90.3

2. Compliance self-diagnosis

1) Business sites subject to assessment include headquarters, worksites, branches/corporations, and offices2) Corruption risk assessment (inspection) for all business sites every two years


Number of business sites subject to assessment1) sites 245 236 230

Number of business sites assessed (inspected) for risk of corruption2) sites 206 129 133

Percentage of business sites assessed (inspected) for risk of corruption % 84.1 54.7 57.8

3. Corruption risk assessment of business sites

1) Based on the company’s annual business report


Number of violations cases 0 0 0

Amount of fines issued KRW 1 million 0 0 0

Number of non-monetary penalties KRW 1 million 0 0 0

4. Legal actions taken in relation to compliance issues (anti-corruption, unfair competition, etc.)1)


Rate of application of code of conduct

Employees % 100 100 100

Contractors/suppliers/ service providers % 100 100 100

Subsidiary companies1) % 100 100 100

Percentage of signatures guaranteeing recognition

of code of conduct

Employees % 100 100 100


Subsidiary companies % 100 100 100

Ratio of training provided on code of conduct

Employees % 100 100 100


Subsidiary companies % 100 100 100

5. Ethical management

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Composition of the BOD

Number of members on BOD people 9 9 9

Proportion of independent directors % 55.6 55.6 55.6

Number of independent (external) directors or

auditors recommended by shareholders, etc.

people 0 0 0

Ratio of independent directors with conflicts of interest % 0 0 0

Diversity of the BOD Ratio of female members of BOD % 0 0 11.1

Independence of the BOD

Retention period of independent director’s chairmanship years 0 0 0

Efficiency of the BOD

Maximum number of concurrent job positions that independent

directors can takepositions 2 2 2

Number of external directors holding 4 concurrent job

positions or lesspeople 5 5 5

Average attendance rate to BOD meeting % 98 100 97.2

BOD meetings held sessions 10 7 8

Number of proposals that received objections or

amendment proposals from independent directors

cases 1 0 0

| Governance |

6. Composition of the Board of Directors


ESG Committee(previously the

“Governance Committee”)

Independent director attendance rate at meetings % 100 100 100

Number of meetings held sessions 8 9 6

Independent Director Recommendation

Committee

Independent director attendance rate at meetings % 100 N/A 88.9


Audit Committee

Ratio of qualified financial experts % 33.3 33.3 33.3



Compensation Committee



7. Operation of committees


CEO compensation

Policy

Ratio of deferred bonus for short-term CEO rewards % N/A N/A N/A

Performance period of CEO variable compensation years 3 3 3

Maximum period of retention of CEO variable compensation years 3 3 3

CEO pay (basic pay + variable pay) KRW 1 million 1,418 1,315 2,231

8. CEO compensation


BOD tenure Average tenure of board membership

years 2.7 3.7 3.0

Expertise of the BOD Proportion of board members with work experience in the industry % 55.6 55.6 55.6

Relief of responsibilities of the BOD

Total shares owned by executive directors excluding the largest shareholder and persons of special relations

% 0 0 0

9. Effectiveness of the BOD


Shareholder meeting

regulations

Prior notice regarding Regular Shareholder Meetings such as

venue, agenda, etc.days 23 23 30

11. Shareholder meetings


Status of voting rights

Shares owned by CEO1) shares 0 0 0

Shares owned by management other than CEO shares 37,273 40,672 37,953

Total shares owned by registered executives % 0 0 0

Proportion of voting rights owned by government agencies % 6.2 7.3 8.4

Total voting rights of founding family % 31.2 31.2 31.6

10. Voting rights

1) As of March 2021, the company’s CEOs (3 people) hold 4,364 shares, and registered directors other than the CEO (1 person) hold 3,374 shares


Revenue from internal transactions1) KRW 1 million 20,833,131 19,983,632 19,088,823

12. Internal transactions

1) Based on Fair Trade Commission's Notice on the Status of Conglomerates (Status on the trade of commodities and manpower)

Company Overview

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Governance


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GRI Index

Indicator Index Description Page Note

Organizational profile

102-1 Name of organization 2-3

102-2 Activities, brands, products, services 4-7

102-3 Location of headquarters 2

102-4 Regions of business 8-9

102-5 Characteristics of ownership structure & legal form 2-3

102-6 Markets served 8-9

102-7 Scale of organization 7

102-8 Information on executives and employees 73-74

102-9 Organization’s supply chain 79

102-10 Significant changes to organization and its supply chain - Annual report p. 20

102-11 Precautionary principles and approaches 42-43

102-12 External initiatives 96

102-13 Association memberships 96

Strategy102-14 Statement from senior decision-maker 12

102-15 Key impacts, risks, and opportunities 13

Ethics and integrity

102-16 Values, principles, standards, and norms of behavior 55-56

102-17 Mechanisms for advice and concerns about ethics 57

Universal standards (GRI 100)


Governance

102-18 Governance structure 2-3

102-19 Entrustment of permissions on economic, environmental, and social topics 32-35

102-20 Director-level responsibility on economic, environmental, and social topics 32-35

102-21 Participation of relevant parties in economic, environmental, and social topics 62

102-22 Creation of highest decision-making organization and its affiliated committees 33-34

102-23 Chairman of highest decision-making organization 33-34

102-24 Recommendation and selection by highest decision-making organization 33-34

102-25 Conflicts of interest -

Compliance with interest conflict prevention policies

including domestic laws such as commercial law, etc.

102-26 Role the highest decision-making organization for establishment of goals, values, strategy, etc. 32-35

102-27 Strengthening of collective intelligence of highest decision-making organization 32-35

102-28 Evaluation on achievements of highest decision-making organization 32-35

102-29 Acknowledging and managing economic, environmental, and social impacts of highest decision-making organization 32-35

102-30 Effectiveness of risk management procedures 38-39

102-31 Evaluating economic, environmental, and social topics 32-35

102-32 Role of highest decision-making organization in sustainability reports 32-35

102-33 Procedures for reporting important issues to highest decision-making organization 32-35

102-34 Characteristic, number, and solution mechanism for important issues 32-35

102-35 Repair policy 35

102-36 Repair decision process 35

102-37 Participation of relevant parties in repair policy 35

102-38 Total annual compensation ratio - Annual report p.417

102-39 Total annual compensation increase rate - Annual report p.417


102-40 List of interested parties 59

102-41 Collective agreements 75

102-42 Identification and selection of interested parties 59

102-43 Method of participation of interested parties 59

102-44 Key topics and interests addressed 59-60


88 89


Reportpractices

102-45 Entities included in consolidated financial statements - Annual report p. 3-10

102-46 Definition of report content and topic boundaries 59-60

102-47 List of important topics identified 59-60

102-48 Correction of information About this report

102-49 Changes in reports About this report No major change

102-50 Reporting period About this report

102-51 Date of most recent report About this report

102-52 Reporting cycle About this report

102-53 Contact point for inquiries regarding the report About this report

102-54 Methods of meeting GRI standards About this report

102-55 GRI Index 86-90

102-56 External assurance 93-95

Management approach

103-1 Explanation of important topics and their boundaries 60-61Explanation of important

topics and their boundaries was addressed throughout

the report. To find the pages of the report that address

each important topic, refer to the table on p. 61

103-2 Management policies and their components 60-61

103-3 Evaluation of management policies 13-15


Economic achievements

201-1 Creation and distribution of direct economic value - Annual report p. 201

201-2 Risks and opportunities associated with climate change 17-18

201-3 Financial provisions from defined annuities - Annual report p.151

201-4 Government financial support - Annual report p.128

Anti-corruption

205-1 Workplace corruption risk evaluation 83

205-2 Communication and training on anti-corruption policies and procedures 55-57, 83

205-3 Confirmed corruption incidents and examples of countermeasures 55-57

Anti-competition 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopolies 83

Economic performance (GRI 200)


Materials

301-1 Materials used by weight or volume 70

301-2 Percentage of use of recycled materials -

301-3 Renewable packaging usage rate 39

Energy

302-1 Energy consumption within the organization 69

301-2 External energy usage of the organization 69

302-3 Energy intensity 69

302-4 Energy usage reduction 69

302-5 Energy usage reduction for products and services 17-18, 69

Water

303-1 Interaction of water as a shared resource 69

303-2 Management of drainage-related impacts 69

303-3 Water consumption by source 69

303-4 Amount of discharged wastewater 70

303-5 Water consumption 69

Biodiversity

304-1 Business sites owned, leased, or managed in protected areas 71

304-3 Protected or restored habitats 71

304-4 Number of International Union for Conservation of Nature endangered species inhabiting areas affected by business 71

Emissions

305-1 Direct GHG emissions 69

305-2 Indirect GHG emissions 69

305-3 Other indirect GHG emissions 69

305-4 Intensity of GHG 69

305-5 Reduction of GHG emissions 69

Waste

306-1 Impacts related to the creation of wastes and hazardous wastes 70

306-2 Management of impacts caused by wastes 70

306-3 Significant spills 70

306-4 Wastes converted from disuse 70

306-5 Directly processed waste 70

Compliance with environmental laws

and regulations307-1 Number of fines and sanctions for violations of environmental laws 72

Environmental impact assessment

of suppliers308-1

Number of suppliers assessed for environmental impacts and number of suppliers identified as having significant negative impacts, and actions taken

79

Environmental performance (GRI 300)

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90 91


Employment

401-1 New hires and employee turnover 74

401-2 Benefits provided only to full-time workers 44-46

401-3 Parental leave 75

Occupational health and

safety

403-1 OHS management system 21-25

403-2 Occupational risk assessment procedures and investigations 21-25

403-3 Industrial health service (Danger identification and removal, usage methods) 21-25

403-4 Participation and communication with workers for industrial safety and health 21-25

403-5 Education and training on occupational health and safety 21-25

403-6 Enhancement of employee health (treatment, health services) 21-25

403-7 Prevention and mitigation of OHS risks of partner companies 24

403-8 Number of workers covered by an OHS management system 78

403-9 Number and rate of work-related injuries of employees 77

403-10 Number and rate of work-related illnesses of employees 77

Training and education

404-1 Average number of hours of education and training for executives 76

404-2 Types of programs, scope of application, and support system for retirees 46

404-3 Employee achievement and career development evaluation 45-46

Diversity and acceptance 405-1 Statistics of employees by gender and age 73

Child labor 408-1 Measures to eradicate child labor 26-28

Forced or compulsory

labor409-1 Measures to eradicate forced labor 26-28

Human rights assessment

412-1 Number and percentage of workplaces subject to human rights evaluation 26-27

412-2 Percentage of employees who received training on human rights policies and procedures 78

412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening -

Local communities

413-1 Engagement program 52-54

413-2 Identification of negative impacts on the local community 26-27

Social impact of suppliers

414-1 Number of new partners that received evaluation on social impacts 79

414-2 Partners terminated due to identification of negative impacts in social impact evaluation 79

Customer health and

safety

416-1 Key products and services with safety and health evaluation 80

416-2 Laws related to health and safety of products and services and incidents of self-rule violations 80

Marketing and labeling

417-2 Incidents of non-compliance with regulations and voluntary codes concerning labeling 81

417-3 Incidents of non-compliance with regulations and voluntary codes concerning marketing 81

Personal information 418-1 Violations of client privacy protection and complaints over loss of

clients’ personal information 80

Social performance (GRI400)

SASB topic Disclosure code Classification Description Page Note

Activity index

IF-EN-000.A Quantitative Projects implemented within reporting period - Annual report 61-63p

IF-EN-000.B Quantitative Projects completed within reporting period - 10 projects

IF-EN-000.C Quantitative Order amount - Annual report 61-63p

Ecological impacts of

project development

IF-EN-160a.1 Quantitative Violations of environmental permits/standards/regulations when conducting projects 72

IF-EN-160a.2 Qualitative Environmental risk assessment/management processes for project design/site selection/construction when conducting projects 42-43

Structural integrity &

safety

IF-EN-250a.1 Quantitative Monetary losses as a result of defects and safety-related incidents (fines, compensations, etc.) 80

IF-EN-250a.2 Quantitative Cost of rework due to product defects and safety-related improvements 81

Health & safety of executives

and employees

IF-EN-320a.1.1 Quantitative Number of accidents and fatality rate of employees of the company and partner companies 24, 77

IF-EN-320a.1.2a Quantitative Number and ratio of fatalities caused by illnesses of employees of the company and partner companies 24, 77

IF-EN-320a.1.2b Quantitative Number and ratio of fatalities caused by injuries of employees of the company and partner companies 24, 77

Lifecycle impacts of buildings &

infrastructure

IF-EN-410a.1 Quantitative Number of projects that acquired/implemented sustainability certification 81

IF-EN-410a.2 Qualitative Energy/water efficiency improvement process when planning and designing projects 17-19

Climate impacts of business

IF-EN-410b.1 Quantitative Projects related to hydrocarbon and renewable energy 81

IF-EN-410b.2 Quantitative Canceled projects related to hydrocarbon and renewable energy 81

IF-EN-410b.3 Quantitative Number of non-energy projects related to mitigation of climate change 81

Business ethics

IF-EN-510a.1 Quantitative Number and price of projects conducted in the bottom 20 countries of the Corruption Perceptions Index 81

IF-EN-510a.2 Quantitative Fines/settlements for bribery/unfair competition 83

IF-EN-510a.3 QuantitativeExplanation of policy/practices designed to prevent bribery/corruption/acts of unfair competition during the project bidding process

55-57

SASB

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Category Recommended disclosures Page

Governancea) Describe the board’s oversight of climate-related risks and opportunities.

32-35, 38-39b) Describe management’s role in assessing and managing climate-related risks and opportunities.

Strategy

a) Describe the climate-related risks and opportunities the organization has identified over the short, mid, and long term. 17-18, 39

b) Describe the impact of climate-related risks and opportunities on the organization’s business, strategy, and financial planning. 17-18

c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. 17-18

Risk management

a) Describe the organization’s processes for identifying and assessing climate-related risks. 38-39

b) Describe the organization’s processes for managing climate-related risks. 38-39

c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management. 38-39

Metrics and targets

a) Disclose the metrics used by the organization to assess climate-related risks and opportunities related to its strategy and risk management process. 15

b) Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks. 69

c) Describe the targets used by the organization to manage climate-related risks and the opportunities and performance in contrast with the targets. 17-18

TCFD GHG and Energy Verification Statement

IntroductionKorea Management Registrar (KMR) has been engaged by Samsung C&T Corporation to conduct an independent verification of its greenhouse gas (GHG) emissions reported for the year 2020. The verification was conducted on the organizational and operational boundaries and the results are declared as below. The verification is valid from the date of its publication.

Scope · Organizational and Operational Boundaries

- The GHG emissions covered by this verification was calculated by the GHG inventory estimation tool developed by Samsung C&T Corporation and includes direct emissions (Scope 1 emissions), indirect emissions from overseas facilities/offices and construction projects (Scope 2 emissions), and all other indirect emissions (Scope 3 emissions) of SAMSUNG C&T Corporation in 2020.

· Verification period: January 1, 2020 to December 31, 2020 · Types of GHG included: CO2, CH4, N2O, HFCs, PFCs, SF6

· Emissions data verified - Scope1 (direct emissions), Scope2 (indirect emissions), Scope3 (all other indirect emissions) - Scope 3 emissions are limited to emissions from international business travel (air), construction equipment operated by subcontractors,

and commuter shuttle buses. · Verification Methodology

- Visiting sites and Interview with relevant personnel responsible for collecting GHG data - Reviewing the process of gathering GHG data - Reviewing the source of data, such as computing systems, bills and related documents - Reviewing documents, assessing risks, and preparation and comparison based on different verification techniques (inspection, due diligence,

observation, interview, etc.) - Level of Assurance: Limited Assurance

CriteriaInternational Standard on Assurance Engagements 3000 (Revised) – ‘Assurance Engagements other than Audits or Reviews of Historical Financial Information’ ISO 14064-1 Greenhouse gases -- Part 1: Specification with guidance at the organization level for quantification and reporting of green-house gas emissions and removals (2006), ISO 14064-3 Greenhouse gases -- Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions (2006), IPCC Guidelines for National Greenhouse Gas Inventories (2006), WRI/WBCSD GHG Protocol, Verification guide-lines (2016-255) for Greenhouse Gas and Energy Target System provided by the Ministry of Environment (materiality criteria, emission factors and calorific values provide by IPCC, national calorific values and emission factors)

ResultsSamsung C&T Corporation has been verified to represent the following emissions for Scope 1 (direct emissions), Scope 2 (indirect emissions), Scope 3 (all other indirect emissions):

ConclusionBased on the results of our verification on the agreed scope and criteria, we came to the following conclusion: - We verified that the emissions data reported by Samsung C&T Corporation for 2020 is correct as described above, and found no evidence that the

data is not consistent with the agreed verification scope and criteria. - This statement can be affected by limited factors such as limitations in data provided and sampling methods and should not be relied upon to

detect all errors. - For the limited organizational boundaries, the materiality threshold of ±5% was set for aggregate errors to provide limited assurance. We believe

that no error or omission was identified in the data provided that may impact our opinion that the reported data is “appropriate.”

June 15, 2021 Korea Management RegistrarPresident Hwang Eun Ju

Samsug C&T Direct emissions(Scope 1)

Indirect emissions (Scope 2)

All other indirect emissions(Scope 3) Total

2020 76,943 112,237 112,213 301,393

(Unit: tCO2-eq./yr)

Company Overview

About Samsung C&T

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Social

Governance


1. Risk Management







8. Compliance

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94 95

Limitations and RecommendationsKMR’s assurance engagement is based on the assumption that the data and information provided by Samsung C&T to us as part of our review are provided in good faith. Limited depth of evidence gathering including inquiry and analytical procedures and limited sampling at lower levels in the organization were applied. To address this, we referred to independent external sources such as DART and National Greenhouse Gas Management System (NGMS) and public databases to challenge the quality and reliability of the information provided.

Conclusion and OpinionBased on the document reviews and interviews, we had several discussions with Samsung C&T on the revision of the Report. We reviewed the Report’s final version in order to make sure that our recommendations for improvement and revision have been reflected. Based on the work performed, it is our opinion that the Report applied the Comprehensive Option of the GRI Standards. Nothing comes to our attention to suggest that the Report was not prepared in accordance with the AA1000AP (2018) principles.

Inclusivity

Samsung C&T has developed and maintained different stakeholder communication channels at all levels to announce and fulfill its responsibili-ties to the stakeholders. Nothing comes to our attention to suggest that there is a key stakeholder group left out in the process. The organization makes efforts to properly reflect opinions and expectations into its strategies.

Materiality

Samsung C&T has a unique materiality assessment process to decide the impact of issues identified on its sustainability performance. We have not found any material topics left out in the process.

Responsiveness

Samsung C&T prioritized material issues to provide a comprehensive, balanced report of performance, responses, and future plans regarding them. We did not find anything to suggest that data and information disclosed in the Report do not give a fair representation of Samsung C&T’s actions.

Impact

Samsung C&T identifies and monitors the direct and indirect impacts of material topics found through the materiality assessment, and quantifies such impacts as much as possible.

Reliability of Specific Sustainability Performance Information

In addition to the adherence to AA1000AP (2018) principles, we have assessed the reliability of economic, environmental, and social performance data related to sustainability performance. We interviewed the in-charge persons and reviewed information on a sampling basis and supporting documents as well as external sources and public databases to confirm that the disclosed data is reliable. Any intentional error or misstatement is not noted from the data and information disclosed in the Report

Competence and IndependenceKMR maintains a comprehensive system of quality control including documented policies and procedures in accordance with ISO/IEC 17021·2015 - Requirements for bodies providing audit and certification of management systems. This engagement was carried out by an independent team of sustainability assurance professionals. KMR has no other contract with Samsung C&T and did not provide any services to Samsung C&T that could compromise the independence of our work.

June 2021 Seoul, Korea

President Hwang Eun Ju


To readers of 2021 Samsung C&T Sustainability Report

IntroductionKorea Management Registrar (KMR) was commissioned by Samsung C&T to conduct an independent assurance of its 2021 Samsung C&T Sustainability Report (the “Report”). The data and its presentation in the Report is the sole responsibility of the management of Samsung C&T. KMR’s responsibility is to perform an assurance engagement as agreed upon in our agreement with Samsung C&T and issue an assurance statement.

Scope and StandardsSamsung C&T described its sustainability performance and activities in the Report. Our Assurance Team carried out an assurance engagement in accordance with the AA1000AS v3 and KMR’s assurance standard SRV1000. We are providing a Type 2, moderate level assurance. We evaluated the adherence to the AA1000AP (2018) principles of inclusivity, materiality, responsiveness and impact, and the reliability of the information and data pro-vided using the Global Reporting Initiative (GRI) Index provided below. The opinion expressed in the Assurance Statement has been formed at the materiality of the professional judgment of our Assurance Team.

Confirmation that the Report was prepared in accordance with the Comprehensive Options of the GRI standards was included in the scope of the assurance. We have reviewed the topic-specific disclosures of standards which were identified in the materiality assessment process. We also con-firmed that the report was prepared in accordance with the TCFD recommendations and SASB.

· GRI Sustainability Reporting Standards · Universal standards · Topic specific standards - Management approach of Topic Specific Standards

- GRI 201: Economic Performance- GRI 205: Anti-Corruption- GRI 301: Materials- GRI 302: Energy- GRI 303: Water and Effluents- GRI 305: Emissions- GRI 307: Environmental Compliance- GRI 401: Employment- GRI 403: Occupational Health and Safety- GRI 404: Training and Education- GRI 408: Child Labor- GRI 409: Forced or Compulsory Labor- GRI 412: Human Rights Assessment- GRI 413: Local Communities- GRI 414: Supplier Social Assessment- GRI 416: Customer Health and Safety- GRI 418: Customer Privacy

· SASB Sustainability Disclosure Topics & Accounting Metrics · TCFD recommendations

As for the reporting boundary, the engagement excludes the data and information of Samsung C&T’s partners, suppliers and any third parties.

KMR's ApproachTo perform an assurance engagement within an agreed scope of assessment using the standards outlined above, our Assurance Team undertook the following activities as part of the engagement: · reviewed the overall Report; · reviewed materiality assessment methodology and the assessment report; · evaluated sustainability strategies, performance data management system, and processes; · interviewed people in charge of preparing the Report; · reviewed the reliability of the Report's performance data and conducted data sampling; · assessed the reliability of information using independent external sources such as Financial Supervisory Service’s DART and public database.

SAMSUNG C&T CORPORATIONSAMSUNG C&TSustainability Report 2021

Company Overview

About Samsung C&T

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Social

Governance


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Group Award name Host

Common

Included as excellent company in 2020 DJSI World S&P Global

Combined rank of A in 2020 ESG evaluation (Environment A+, Social A, Governance B+) KCGS

Included in 2020 CDP Korea Hall of Fame platinum club CDP Korea Committee

E&C

“Raemian” ranked #1 in 2020 NCSI Apartment Sector Korea Productivity Center

Won 2020 IFLA AAPME Awards for heat island phenomenon and fire proofing (Raemian Artrich) IFLA

Awarded in 6 areas (T307, T313, N106) in 2020 LTA Annual SHE Award Convention LTA

Won 2020 Chief Information Officer (CIO) 100 Awards International Data Group

CONQUAS STAR class (highest class) in BCA quality evaluation system (Singaporean Supreme Court building) BCA

Top award in 2020 construction industry health management excellence presentation (stage 2 of 1784 projects) Korea Occupational Safety and Health Agency

T&I

No. 1 general trading company in Korea's most admired companies in 2020 KMAC

Industrial packaging, 57th Trade Day Ministry of Trade, Industry and Energy; KITA

Presidential award in 2020 Fabrics Day Ministry of Trade, Industry and Energy; Korea Federation of Textile Industries

Fashion Men’s casual clothing brand “BEANPOLE” ranked #1 in 2020 NCSI Korea Productivity Center

Resort

No. 1 general leisure facility and water park sector in 2020 KCSI KMA Consulting

No. 1 theme park and water park sector in 2020 KS-SQI Korean Standards Association

Candidate for 2020 Green Company Ministry of Environment

Awards

Association memberships

Construction Vision Forum Food Service Committee

KIAC Korea Atomic Industrial Forum

Green Company Committee Korea Nuclear Association

Construction Association of Korea Korea Electrical Contractors Association

Korea Golf Association Korea Specialty Contractors Association

Korea Mechanical Construc-tion Contractors Association

Korea Information & Communication Contractors Association

KCCI KSLA

Korea Facilities Maintenance Association KSLA

Korea Electric Association KAAPA

Korea Specialty Contractors Association Korea Housing Association

BuildingSMART Korea Railway Construction Association

Smartcity Association Korea Railway Association

KOSTI Korea Fashion Industry Association

Fédération de la Haute Couture de la Mode (FHCM) KSQM

Construction Management Association of Korea Korea Ports and Harbors Association

The Korea Gas Union Korea Chemicals Management Association

Korea Federation of Construction Contractors Korea-Japan Economic Association

KCNET International Contractors Association of Korea

Korea Construction Quality Association Foundation for Overseas Resources Development

CEA EMRD

Korea Enterprises Federation Korea Environmental Preservation Association

Korea Golf Course Business Association Association of Zoos & Aquariums (AZA)

Korea Air Cleaning Association Conservation Breeding Specialist Group (CBSG)

Korea Road Association Conservation Planning Specialist Group (CPSG)

Korea Radon Association International Association of Amusement Parks and Attractions (IAAPA)

Korea Remodeling Association International Cyanide Management Institute (ICMI)

Korea International Trade Association International Zoo Education (IZE)

Korea Fire Facility Association KOSHA18001 Association

KABGA Roundtable on Sustainable Palm Oil (RSPO)

Korea New & Renewable Energy Association Themed Entertainment Association (TEA)

Korea Engineering & Consulting Association World Association of Zoos and Aquariums (WAZA)

SAMSUNG C&T Sustainability Report 2021

Documents

Transcript of SAMSUNG C&T Sustainability Report 2021