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Samsung BIO Insight
Shaping a sustainable supply network for net-zero health systems
How Samsung Biologics nurtures its supplier partnerships to drive decarbonization initiatives
With
2023 being the hottest year on record
, the need for constructive action in decarbonizing health systems is at a critical point. The use of fossil
fuels and plastics still prevails in the healthcare industry, and its supply chains contribute to over half of
the sector’s greenhouse gas (GHG) emissions.
There are challenges to reducing healthcare supply chains emissions, specifically a
lack of common standards that makes benchmarking and measurement of emissions reductions difficult. Together
with its global and domestic supply partners, Samsung Biologics is taking concrete action to address these
challenges, while improving health outcomes.
“Aligning our sustainability strategy with our global and local partners is a
fundamental step towards achieving our vision for decarbonizing healthcare supply chains,” said Jeongjae Ahn,
Senior Director of Sustainable Business at Samsung Biologics. “While we team up with global pharmaceutical
companies to develop concerted strategies towards accomplishing carbon-free healthcare, we have internally been
nurturing proactive collaboration with our domestic suppliers and emboldening them to learn and implement the
strategies for a sustainable supply chain.”
Building a viable framework for net-zero healthcare with global partners
As a member of the Sustainable Markets Initiative’s Health Systems Task Force,
Samsung Biologics, along with 13 other global public-private health system leaders, has committed to bringing
practical solutions to decarbonizing highly regulated, multi-layered healthcare supply chains. The task force is
working collaboratively with suppliers to achieve emissions reduction targets, acknowledging each supplier’s
starting point and sustainability maturity.
Earlier this year, the task force set
joint, minimum climate and sustainability targets for
suppliers
, to address emissions across the value chain and reduce the complexity of multiple asks for
suppliers.
•
Assess and disclose Scope 1, 2, and 3 GHG emissions
•
Set near-term targets aligned to the 1.5-degree pathway
•
Cascade standards and targets to upstream suppliers, including emissions
disclosure
•
Switch to renewable power
•
Explore options to source renewable heat
•
Decarbonize transport solutions
•
Reduce water usage and set targets for water efficiency
•
Set targets to reduce waste and energy and increase reuse of materials in
manufacturing
Furthermore, it acknowledges the complex nature of healthcare supply chains, which
makes proper measurement of GHG emissions difficult. In a joint effort to support suppliers, the taskforce
members have aligned on a standard methodology for life cycle assessments (LCAs), which suppliers can leverage
to measure the environmental impact of their products.
“Granted about 80% of supply chain emissions stem from Scope 3 raw material
procurement, forging collaboration with our suppliers is a prerequisite for us to achieve our own net-zero
target by 2050,” said Ahn. “Therefore, we have proactively worked with our global partners to devise a viable
framework that healthcare suppliers of all levels can apply to their business operations.”
Engaging local suppliers with solutions to decarbonization
Samsung Biologics believes the road to a net-zero supply chain starts from a
grassroots engagement with its domestic partners. With the complex global regulatory process and rising emphasis
on environmental, social, and governance (ESG) compliance, greener operations have become vital for overall
business sustainability.
In November, Samsung Biologics held its inaugural Supplier ESG Day at its
headquarters to share ESG knowledge and guidance on decarbonization with its local suppliers. At the event,
experts provided insights on ESG governance, while representatives from global suppliers presented case studies
and tangible methods that local suppliers could apply to their operations.
“I believe Samsung Biologics’ Supplier ESG Day did bridge the ESG knowledge gap
between the global and domestic companies,” said one raw material supplier. “Learning what we can do to reduce
carbon emissions at the local level inspired me that though we are a small company, we could co-work with a
global company like Samsung Biologics to build a sustainable healthcare supply chain.”
As Samsung Biologics continues to expand its capacity and global footprint, with the
construction of Plant 5 and Bio Campus II, sustainable management has become a cornerstone for its business
expansions. Samsung Biologics will remain dedicated to its vision of building a sustainable future in
collaboration with its global suppliers and pharmaceutical companies.
Related Contents
How Samsung Biologics nurtures its supplier partnerships to drive decarbonization initiatives
With
2023 being the hottest year on record
, the need for constructive action in decarbonizing health systems is at a critical point. The use of fossil
fuels and plastics still prevails in the healthcare industry, and its supply chains contribute to over half of
the sector’s greenhouse gas (GHG) emissions.
There are challenges to reducing healthcare supply chains emissions, specifically a
lack of common standards that makes benchmarking and measurement of emissions reductions difficult. Together
with its global and domestic supply partners, Samsung Biologics is taking concrete action to address these
challenges, while improving health outcomes.
“Aligning our sustainability strategy with our global and local partners is a
fundamental step towards achieving our vision for decarbonizing healthcare supply chains,” said Jeongjae Ahn,
Senior Director of Sustainable Business at Samsung Biologics. “While we team up with global pharmaceutical
companies to develop concerted strategies towards accomplishing carbon-free healthcare, we have internally been
nurturing proactive collaboration with our domestic suppliers and emboldening them to learn and implement the
strategies for a sustainable supply chain.”
Building a viable framework for net-zero healthcare with global partners
As a member of the Sustainable Markets Initiative’s Health Systems Task Force,
Samsung Biologics, along with 13 other global public-private health system leaders, has committed to bringing
practical solutions to decarbonizing highly regulated, multi-layered healthcare supply chains. The task force is
working collaboratively with suppliers to achieve emissions reduction targets, acknowledging each supplier’s
starting point and sustainability maturity.
Earlier this year, the task force set
joint, minimum climate and sustainability targets for
suppliers
, to address emissions across the value chain and reduce the complexity of multiple asks for
suppliers.
•
Assess and disclose Scope 1, 2, and 3 GHG emissions
•
Set near-term targets aligned to the 1.5-degree pathway
•
Cascade standards and targets to upstream suppliers, including emissions
disclosure
•
Switch to renewable power
•
Explore options to source renewable heat
•
Decarbonize transport solutions
•
Reduce water usage and set targets for water efficiency
•
Set targets to reduce waste and energy and increase reuse of materials in
manufacturing
Furthermore, it acknowledges the complex nature of healthcare supply chains, which
makes proper measurement of GHG emissions difficult. In a joint effort to support suppliers, the taskforce
members have aligned on a standard methodology for life cycle assessments (LCAs), which suppliers can leverage
to measure the environmental impact of their products.
“Granted about 80% of supply chain emissions stem from Scope 3 raw material
procurement, forging collaboration with our suppliers is a prerequisite for us to achieve our own net-zero
target by 2050,” said Ahn. “Therefore, we have proactively worked with our global partners to devise a viable
framework that healthcare suppliers of all levels can apply to their business operations.”
Engaging local suppliers with solutions to decarbonization
Samsung Biologics believes the road to a net-zero supply chain starts from a
grassroots engagement with its domestic partners. With the complex global regulatory process and rising emphasis
on environmental, social, and governance (ESG) compliance, greener operations have become vital for overall
business sustainability.
In November, Samsung Biologics held its inaugural Supplier ESG Day at its
headquarters to share ESG knowledge and guidance on decarbonization with its local suppliers. At the event,
experts provided insights on ESG governance, while representatives from global suppliers presented case studies
and tangible methods that local suppliers could apply to their operations.
“I believe Samsung Biologics’ Supplier ESG Day did bridge the ESG knowledge gap
between the global and domestic companies,” said one raw material supplier. “Learning what we can do to reduce
carbon emissions at the local level inspired me that though we are a small company, we could co-work with a
global company like Samsung Biologics to build a sustainable healthcare supply chain.”
As Samsung Biologics continues to expand its capacity and global footprint, with the
construction of Plant 5 and Bio Campus II, sustainable management has become a cornerstone for its business
expansions. Samsung Biologics will remain dedicated to its vision of building a sustainable future in
collaboration with its global suppliers and pharmaceutical companies.
Related Contents