While Samsung Biologics’ emissions from business sites (Scopes 1 & 2) account for 13%, 87% of emissions fall under indirect emissions (Scope 3) due to the nature of the CDMO business.

Samsung Biologics Carbon Footprint(2022)

Upstream

80.6% (780,616tCO2eq)

Purchased goods and services :53.3%

Capital goods : 23.2%

Purchased goods and services + Capital goods : 76.5%

Others : 4.1%

Launch supplier initiatives and achieve Net Zero in the supply chain through emissions analysis

Site

16.9% (163,993tCO2eq)

Direct emissions (Scope 1): 5.6%

LNG: 5.5% / Fuel: 0.1%

Indirect emissions (Scope 2): 11.3%

Achieve Net Zero through reduction / replacement activities and transition to 100% renewable energy

Downstream

2.5% (23,565tCO2eq)

Downstream transportation and distribution: 0.8%

Processing of sold products: 1.7%

Disposal of sold products: 0.0%

Achieve Net Zero across subsidiaries and clients through initiatives

Since 83.9% of our Scope 3 emissions comes from the supply chain, Samsung Biologics aims to establish a Net Zero Supply Chain Program, aligned with the Sustainable Markets Initiative’s efforts, to work more closely with our suppliers to reduce our overall impact.

To reach net zero by 2050 or earlier, we expect our partners to:

Set Net Zero targets

• · Set Net Zero targets aligned with the 1.5°C pathway (2050 or earlier).
• · Join climate initiatives such as SBTi and RE100 and verify the targets.

Assess & disclose GHG emissions

• · Calculate Scope 1, 2 and 3 emissions.
• · Improve the accuracy through Life Cycle Assessments.
• · Disclose emissions and the status of climate change response via CDP or other global platforms.

Participate in an annual survey

• · Participate in our survey to share annual emissions reduction performance.
• · Set standards for calculating the share of emissions related to Samsung Biologics (product-level LCA, etc.).

Evaluation

We will continue to monitor the status of the supply chain’s climate change response through an Annual Survey and provide consultation opportunities to fulfill requirements and improve response levels.

We also invite our suppliers to allow us to conduct assessments and evaluations to increase our supply chain transparency and actively encourage participation in identifying areas of improvement.

Benefits

Through our evaluation and assessment program, Samsung Biologics will offer more opportunities and benefits in new process development and supply chain selection to suppliers who actively engage in climate change response activities.

To fully integrate sustainability into our value chain, our suppliers’ participation is vital and will serve as an opportunity to further reinforce our connection with clients to build a healthier future for all.