Samsung C&T Corporation Sustainability Report 2012
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Samsung C&T Corporation Sustainability Report 2012
Contents
The World You Have Imagined
Overview
Creation of Shared Values About This Report At a Glance CEO Message Company Profile Business Portfolio Intro
2
3
4
6
8
The Samsung City shows you Samsung C&T Corporation’s results of various projects constructed with state-of-the-art technology and creative innovations in 3 dimensional stereoscopic images. If you click the icon, you can have access to more detailed information on
current flagship projects undertaken by Samsung C&T Corporation Engineering & Construction Group.
Area of Corporate Interest
Customer Satisfaction through Innovation Shared Growth with SMEs
Value Creation through Social Contribution Employee Health and Accident Prevention
Introduction of Samsung City
14
20
26
32
Samsung City
Area of Construction Interest
Cultivation of People with World-class 38
Construction Capabilities
Environment-friendly Construction Technologies 42
Management of Energy and Greenhouse Gas
46
Preservation of Ecosystem and Biodiversity 50
Area of Trading Interest
Recruitment and Cultivation of People with World-class Trading Capabilities
Respecting and Understanding Local Culture Securing Global Competitiveness 56
58
60
Stakeholder Management
Communication with Stakeholders
Results of Materiality Assessment
62
64
Sustainable Governance
Vision & Strategy Corporate Governance Ethics & Compliance Management
Risk Management 66
68
69
70
GRI 3.1 Contents Index
Profile Disclosures Performance Indicators
- Economic
- Environmental
- Social
72
Appendix
Samsung C&T Corporation, 1321-20, Seocho 2-Dong, Seocho-Gu, Seoul, South Korea 137-956
Tel: +82-2-2145-2057 Fax: +82-2-2145-2206 http://www.samsungcnt.co.kr
Independent Assurance Report Independent Assurance Report of Greenhouse Gas Emissions
Glossary Organization Chart and Association Membership
Awards Received 80
82
84
86
87
Environment-friendly technology applied to Raemian
East Palace
You can see diverse
environment-friendly
technologies applied to
our construction sites
Photo and presentation video of Burj Khalifa in the
United Arab Emirates
You can see the whole construction process of buildings
through photos and videos.
You can see major building, civil engineering, plant and housing projects that are
under construction by Samsung C&T Corporation Engineering & Construction
Group. For more details, please visit our website:
http://www.secc.co.kr/samsungcity/
Awards Received
Shared Value Framework of Samsung C&T Corporation
Award Name
Samsung C&T Corporation is committed to creating social, environmental and economic values to grow into a respected company with worldclass competitiveness and social responsibility. Samsung C&T Corporation’s 2012 Sustainability Report delivers our corporate philosophy for
sustainability management centered on activities and performances to improve social value and corporate competitiveness.
A. Direct and short-term financial effects
External
environment
analysis
B. Performances related to strategic goal
5 Part Materiality
Assessment
* Module
Process of selecting shared value issues
Step1
Interviews with professionals
Survey of external
stakeholders
Media research
The external environment analysis includes identifying major sustainability issues related to
Samsung C&T Corporation from the point of view of external stakeholders and new sustainability
trends.
Step2
Internal
environment
analysis
Award Winner
Awarded from
Green Mark Platinum
Connexion in Singapore
Building & Construction Authority in Singapore
LEED Platinum
Green Tomorrow
US Green Building Committee (USGBC)
LEED Gold
Head Office
US Green Building Committee (USGBC)
GGBA Star
Head Office
Building & Construction Authority in Singapore
Greenship Gold (in design sector)
Rasuna Tower
Green Building Council Indonesia
Hong Kong Subsidiary
The Hong Kong Council of Social Service
Award Winner
Awarded from
No.1 in NCSI for 15 consecutive years (as of 2012)
Raemian Apartment
Korea Productivity Center
Excellent Company in KARSI for 4 consecutive years
Residential Business Unit
Ministry of Land, Transport and Maritime Affairs
Excellent Company in CCM(Consumer Centered Management)
Residential Business Unit
Fair Trade Commission
The Best Company in Carbon Management
Head Office
CDP Korea
No.1 in Industrial Materials Sector in Carbon Disclosure
Head Office
CDP Korea
No.1 in Construction Sector in Green Ranking
Samsung C&T Corporation
Sustinbest·FnGuide / Jungang Ilbo
Hong Kong Branch
Korea Consulate in General, Hong Kong
Samsung C&T Corporation
Korea Management Association
Engineering & Construction Group
Step3
Reflection of global standards
GRI 3.1 Index, ISO 26000
Overseas Awards
Analysis of internal vision
and strategies
Interviews with executives
and employees
Survey of internal
stakeholders
Analysis of company magazines and internal documents
C. Common peer issues
Key Issues and Other Issues
Environmental
Step4
Determination of
priorities of issues
Economic
Common
Issues
E. Social regulation and external influence evaluation
The issues identified through internal and external environment analysis are evaluated in 5
aspects, through which key issues to be preferentially promoted or reported are identified.
Trading & Investment Group
Caring Company
D. Behavior and interest of stakeholders
The internal environment analysis includes analyzing current sustainability management activities of Samsung C&T Corporation from the point of view of executives and employees
and investigating the trends of related issues.
Social
Issues for
engineering &
construction
group
Issues for
trading &
investment
group
The identified key issues and other issues are prioritized in the viewpoint of sustainability management, and they are also classified and reported as common issues and
individual issues for engineering & construction group and trading & investment group.
Domestic Awards
Award Name
Engineering & Construction Group
Major Performances in Shared Value Creation Activities
Results of identification of sustainability issues
Our corporate philosophy to share the value with stakeholders is implemented by
reporting economic, environmental and social values that we create on the basis
of our shared value strategy.
The issues identified through the materiality assessment are classified in the aspects of economic, environmental and social values, which are as follows:
Trading & Investment Group
Excellent Company in Global Social Contributions
Economic Value
Economic Value
Common Sector
The Most Admired Company in Korea (7.62 points)
Selection of issues
Common issue 1 Customer satisfaction through innovation (14p)
Common issue 2 Shared growth with SMEs (20p)
● Individual issue 3
Securing global competitiveness (60p)
for T&I group
●
●
Hidden Champion (23P)
K-MEG (42P)
Creation of sustainability
management performance
Stakeholder engagement
Environmental Value
Environmental Value
Individual issue 2 Environment-friendly construction technology (42p)
for E&C group
● Individual issue 3
Management of Energy and Greenhouse Gas (46p)
for E&C group
● Individual issue 4
Preservation of Ecosystem and Biodiversity (50p)
for E&C group
●
Delivery of shared
value performances
Tesco Training Institute (44P)
Connection of shared
value strategy
Giheung Plant of Samsung Electronics (44P)
Social Value
Social Value
Common issue 3
Common issue 4
● Individual issue 1
for E&C group
● Individual issue 1
for T&I group
● Individual issue 2
for T&I group
●
Sustainability
management governance
Raemian East Palace (48P)
Palm Plantation in Indonesia (58P)
●
Value creation through social contribution (26p)
Employee health and accident prevention (32p)
Cultivation of people with world-class construction
capabilities (38p)
Recruiting and cultivation of people with world-class trading
capabilities (56p)
Respecting and understanding local culture (58p)
Organization Chart and Association Membership & Awards Received
87
Creating Shared Value for Sustainable Growth
Shared Value Creation of Samsung C&T Corporation
In the past, management activities of most companies had focused on increasing financial performances through R&D and investments to
enhance cost competitiveness, brand power and corporate image. Recently, however, non-financial performances have been also significant
for management activities. In particular, the capability to fulfill environmental and social responsibility has become an important factor for
companies to evaluate their potential of sustainable growth.
At Samsung C&T Corporation, there are general issues such as ethical and transparent management and compliances with various categorized issues in the industry such as climate change, eco-friendly construction site management, HSE and promotion of sustainability management in the supply chain.
Our philosophy of shared growth is developing in the process of responding to such risks and opportunities and seeking future growth
potential.
Creating shared value through improving corporate competitiveness and generating social value is a way forward for Samsung C&T Corporation and a way to fulfill its social responsibility.
Risks & Opportunities
Economy
•Emphasis on the importance of corporate
ethics
•Heightened customer expectations through
quality management
•Expansion of win-win business opportunities
by complying with fair trade
Environment
•Continued global warming
•Emphasis on the importance of environmental management at construction sites
•Pursuit of efficient use of water and energy
resources
•Growing necessity of sustainable cities
Society
•Growing necessity of safety management
•Emphasis on role and responsibility to local
communities
•Implementation of sustainability management
within supply network
•Pursuit of work-life balance by employees
Selection of Shared Values
Improvement of Corporate Competitiveness
•Reinforcement of innovative activities
•HSE management
•Enhancement of employee capabilities
•Improvement of competency to develop
new technologies
Creation of Shared Values
•Development of environment-friendly construction technologies
•Reinforcement of response to climate change
•Understanding of local culture
•Enhancement of business partners’
competitiveness
Creation of Social Value
•Promotion of social contribution activities
•Preservation of local environment
•Supports for business partners
•Protection of shareholders and investors
Social Changes by Samsung C&T Corporation
Creating shared value based on social value and corporate competitiveness is very significant for Samsung C&T Corporation’s sustainability management. This 2012 Sustainability Report includes our efforts to understand the importance of shared value and grow together with the society from the
stakeholders’ perspectives.
Corporate Growth Consistent with Social Changes
Samsung C&T Corporation has founded new growth potential in the process of creating social value. The Company is practicing its sustainability
management strategy based on the concept of shared value that pursues creating profits by developing new business opportunities through social
responsibility and bringing it up as a sound corporate culture.
1
About this Report
global
company,
Green
Samsung
C&T
Corporation
Overview
This sustainability report was written to present Samsung C&T Corporation’s commitment to identifying
its corporate value and social responsibility and reporting the materiality of such values. The identified
sustainability management issues were separately reported for company-wide interest areas and respective interest areas of the Engineering & Construction Group and the Trading & Investment Group
with the aim of providing detailed information to our stakeholders.
Reporting Principle and Criteria of 2012 Sustainability Report
Samsung C&T Corporation has released its sustainability report biennially, and this report covers the
accomplishments made from January 1, 2009 to December 31, 2011. Some data contain statistics
for 2012, and we described the scope of data collection separately in that case. As this report contains
the quantitative data received from overseas worksites for the first time, some figures of data may differ
from those in the 2010 Sustainability Report. Quantitative data from overseas worksites targets overall
overseas sites in operation as of October 2012 by the Engineering & Construction Group, and whole
overseas offices directly owned and operated by the Trading & Investment Group.
The report has been documented based on the GRI Sustainability Reporting Guideline G3.1 and the
CRE Index specialized for the construction sector. It also reflects the major agenda of global standardized indices such as the ISO 26000, one of global sustainability management guidances. To ensure
the objectivity and transparency of the content, we commissioned a third party without vested interests
in the Company to verify the accounts and greenhouse gas emissions herein (Independent Assurance
Statements p.80 - p.83).
2008 Sustainability Report
2010 Sustainability Report
Contact
Financial Team, Samsung C&T Corporation
Email
csr.sr@samsung.com
Tel
+82-2-2145-2057
Fax
+82-2-2145-2206
Homepage www.samsungcnt.co.kr
Address
2
Overview
1321-20, Seocho 2-Dong, Seocho-Gu, Seoul, South Korea 137-956
2012 Sustainability Report
At a Glance
Financial Performance
Non - Financial Performance
Sales (KRW in billions)
Operating income
R&D investments (KRW in billions)
(KRW in billions)
● Amount
●
21,545.5
18,499.2
17,755.9
793.5
631.9
Spending on social
contributions (KRW in billions)
&D investments to E&C Group
R
sales ratio
6.4
596.9
100.0
6.5
6.2
87.1
80.0
1.40%
1.33%
1.31%
2009 2010 2011
Equity to asset ratio (%)
2009 2010 2011
Total assets (KRW in billions)
2009 2010 2011
2009 2010 2011
*Green purchase (KRW in billions)
Training expenses (KRW in billions)
● Amount
● Percentage
of green purchase
20,922.0
17,501.1
15,411.3
15.3
71.3
48.0 49.0
67.4 66.9
45.3
9.5
5.7%
4.4%
2009 2010 2011
2009 2010 2011
4.9%
2009 2010 2011
8.2
2009 2010 2011
* At Samsung C&T Corporation, environment-friendly products are defined as followed: products
with a certified environmental label, GR mark, carbon footprint label, energy-saving mark, foreign
environmental mark, and products that reduce harmful materials and wastes
About this Report & At a Glance
3
CEO
Message
4
Overview
Greetings, Stakeholders
allow us to grow together with society. All of our people will par-
The world is now facing trying times, with global economic con-
ticipate in this effort, which will be led by the Sustainable Man-
ditions changing rapidly, and crises occurring that were hard to
agement Committee.
predict. The sustainability of our business and our future prospects have not always been clear, but the last two years have
Sustainable growth will enable us to offer reliable shareholder
been very meaningful nonetheless. We managed to achieve
value even a century from now, while ongoing innovation will
significant growth, laying the groundwork to advance as a global
result in customer value that is impressively felt. We will also
player. In 2011, we earned KRW590 billion in operating profit on
provide mutually beneficial value to our partners so that all can
record sales of KRW21.5 trillion. This was made possible by the
do well even in the face of adversity
hard work and sacrifice of our people amid a difficult business
climate as well as continued support and interest that we have
In addition, we will give value to society by contributing our com-
received from you.
petencies to help create a better world, and provide value to
our employees, who can be proud to belong to Samsung C&T
Samsung C&T Corporation has improved both quantitatively
Corporation, a healthy, safe and good place to work.
and qualitatively these past two years. Our HRD programs have
been strengthened so that we can better respond to a global
Going forward, I invite you to keep a close eye on our activi-
market in which competition grows steadily more severe. Our
ties and performance of Samsung C&T Corporation, which
training content has become more specialized, and training
will continue to grow together with society through sustainable
courses have been tailored to meet the needs of people in each
management. In addition, we are always ready to listen to your
organizational rank and in specific job positions. In this way, we
feedback on our performance results.
are helping our people to grow into global experts.
Environmental management activities at the Engineering & Construction Group have been following a medium to long term
roadmap for achieving the greenhouse gas (GHG) reduction
targets set for 2015. We have been closely monitoring our performance in this regard since 2010. In addition, we have been
Samsung C&T Corporation
investing steadily in eco-friendly construction methodologies,
CEO Yeon-Joo Jung
securing an unrivalled technology for producing resource-saving
concrete. We are also about to complete the world-class National Ecological Institute, built with some of the most advanced
eco-friendly technologies.
Our Trading & Investment Group is engaged in diverse trading and project organizing activities through a global network
that spans 109 overseas locations, exercising comprehensive competencies related to information gathering, marketing
and financing. Our resources are concentrated on developing
targeted business areas and our priority is to bolster our trading and project organizing competitiveness in order to ensure
steady and profitable growth.
Now we want to reciprocate your interest in and support for
Samsung C&T Corporation through proactive interaction with
you. We will reflect the results of our dialog with you in our plans
for sustainable growth and seek to create shared value that will
CEO Message
5
Company Profile
Samsung C&T Corporation in the World
Samsung C&T Corporation operates the Engineering & Construction Group and the Trading & Investment Group, which are employing 7,366 people in 134
offices in about 50 countries. The Company achieved approximately KRW21.5 trillion in sales in 2011. Samsung C&T Corporation is growing into a global toptier company generating outstanding economic value throughout the world on the basis of highly advanced technologies and talented people in each business
field. In addition, we are taking the initiative in sustainability management by focusing on bolstering capabilities in non-financial areas such as the reduction of
greenhouse gas emissions and shared growth with business partners.
Europe (Engineering & Construction Group)
KRW
0.2
2
Korea (Engineering & Construction Group)
billion
KRW
persons
7,154
5,637
billion
persons
Russia ●: 2 ▲: 2 ●: 1
Ukraine ▲ : 1
U.K.●: 2 ▲: 1
Kazakhstan ●: 2 ▲ : 1
France ●: 2
Spain ▲: 1
Algeria ▲: 1
▒:
Mongolia ●: 1 ●: 1
Bulgaria ▲ : 1
Turkey ▲ : 1
1
Egypt ▒ : 1
Japan
●: 2 ▲: 5 ▒ : 1
China
●: 13 ▲: 11
●: 1 ▒ : 1 Iran ▲ : 1
Kuwait ▒ : 1
U.A.E ▲ : 1 ▒ : 2
Qatar ▒ : 1
Saudi Arabia
▲: 1 ●: 1
Taiwan ●: 1
India
●: 1 ▲: 2
●: 1 ▒ : 1
Ghana ▲: 1
Nigeria ▲: 1
▒:
1
Myanmar ▲ : 1
Thailand ●: 1 Vietnam ●: 3 ▲: 2
Philippines ●: 1 ▲: 1
Malaysia ●: 3, ●: 1
Maldives ●: 1
Kenya ▲: 1
Singapore ●: 1 ▒ : 1
Indonesia ●: 5 ▲: 1 ▒ : 1
East Timor ●: 1
Angola▲: 1
South Africa ▲: 1
Poland ▲: 1
Germany ▲: 1
Australia ▲: 1
Czech Republic ▲: 1
Slovakia ▲: 1
Hungary ▲: 1
Europe (Trading & Investment Group)
KRW
6
1,041
42
Overview
billion
persons
Rumania
●: 1 ▲: 1
Korea (Trading & Investment Group)
KRW
Italy ▲: 1
Greece ▲: 1
6,967
883
billion
persons
Sales (as of the end of 2011)
Number of employees (as of the end of 2011)
Trading & Investment Group
Engineering & Construction Group
KRW
7,314
billion
KRW
14,232
Engineering & Construction Group
6,305
billion
persons
Trading & Investment Group
1,061
persons
Engineering & Construction Group ●Corporation ▒▒ Branch ▲ Office
Trading & Investment Group ●Corporation ▒ Branch ▲ Office
Asia (Engineering & Construction Group)
16
644
KRW
Americas (Engineering & Construction Group)
billion
KRW
persons
143
22
billion
persons
Canada ●: 1 ●: 1
U.S.A. ●: 5 ▲ : 2 ●: 2
Mexico
●: 3 ▲: 1
Panama ▲: 1 Colombia ▲: 1
Peru ▲: 1
Brazil
▲: 1 ●: 1
Chile▲: 1
Asia (Trading & Investment Group)
KRW
5,499
96
▒:
1 Americas (Trading & Investment Group)
billion
persons
KRW
724
40
Company Profile
billion
persons
7
Business Portfolio
Engineering & Construction Group
Major Businesses
Samsung C&T Corporation Engineering & Construction Group is engaging in building, civil, plant and housing businesses. Our skilled manpower and
technological prowess as verified throughout numerous projects in each business field have allowed us to demonstrate our competitiveness on the global
stage. Under the vision a ‘2020 Global Leading Player’, we are concentrating on developing 11 global no.1 products* and planning to raise the ratio of
overseas sales up to 65% by 2015. Moreover, our business portfolio will be expanded into independent power plant (IPP), public private partnership (PPP),
pre-construction service, and projects management categories beyond the existing EPC services (Engineering, Procurement and Construction) projects,
through which we will grow into a global top-tier construction company that is able to provide comprehensive solutions throughout the value chain.
* Global no.1 products : high-rises/healthcare/high-tech/road/railroad/harbor/thermal power/nuclear power/energy storage/mining/mixed used development
Building
Civil
Samsung C&T has been acclaimed for its cutting-edge technology by constructing
Samsung C&T has secured global top-tier capability in civil engineering by construct-
some of the world’s tallest and most intelligent high-rises including the Burj Khalifa in the
ing the Incheon Grand Bridge, the longest bridge in Korea, the Pusan New Port, and
United Arab Emirates, and the Petronas Tower in Malaysia. Moreover, we have been
by achieving No.1 ranking in the civil engineering industry in Singapore. We are also
successfully constructing high-tech production facilities including semiconductor, LCD,
striving to be a global top player by engaging in mining transport infrastructure as well as
biotech facilities and expanding its business scope to cover other sectors such as
subways, bridges, harbors, and water resources businesses.
healthcare and aviation to become a global leader.
Plant
Housing
Samsung C&T have proven our global top-tier technologies by undertaking projects such
Samsung C&T introduced its ‘Raemian’ brand apartments, the first branded apartments
as the Qurayyah Independent Power plant in Saudi Arabia, the world's largest Combined
in Korea, and is taking the lead in the housing culture by providing new products related
Cycle Power Plant(CCPP), UAE nuclear power plant, and the LNG terminal in Singapore.
to residential living with exceptional customer services. From residential to community
In addition, we have been making forward progress in becoming a value creator by ex-
and commercial facilities, the company is growing as a leader in providing mixed used
panding our business scope to cover operation and maintenance(O&M) business, going
complexes for commercial and residential areas.
beyond our role as an EPC (Engineering, Procurement and Construction) Player.
8
Overview
Major Achievement in 2011
Business Portfolio
Given that the construction industry is susceptible to economic changes
The business portfolio of the Engineering & Construction Group consists of
and international political trend, 2011 was a very tough year for construction
building, civil engineering, plant and housing, and each business area makes
companies due to global economic crisis stemmed from Europe, uncertain
evenly-balanced achievements in the market. Building projects, we success-
political conditions in the Middle East and domestic economic downturn. De-
fully constructed the world's top three skyscrapers such as Burj Khalifa in
spite such harsh external conditions, however, the Engineering & Construc-
the United Arab Emirates, the Petronas Tower in Malaysia and Taipei 101 in
tion Group has secured stable profit sources by succeeding in winning new
Taiwan based on use of cutting-edge technologies. Our civil engineering busi-
orders. As a result, the Engineering & Construction Group realized KRW7.31
ness boasts competitiveness in mega-scale civil engineering works includ-
trillion in sales and KRW398.4 billion in operating profit in 2011.
ing port and bridge construction projects, and plant business demonstrates
accumulated experiences and unrivaled capabilities in comprehensive EPC
Consistent new orders
projects. In addition, in the housing area, the Company's branded apartment
The Engineering & Construction Group has been strengthening its competi-
"Raemian" has been ranked No.1 on the NCSI (National Customer Satisfac-
tiveness by focusing on recruiting and cultivating talented employees and de-
tion Index) for 15 years in a row as of 2012. based on its brand power and
veloping advanced technologies, which enables us to win new orders steadi-
a strong marketing capacity, we are taking the lead in redevelopment and
ly. New orders increased 18.2% over the previous year to KRW12.3 trillion
rebuilding projects.
in 2011. Except for the housing business, there was a increase in receiving
new orders in building, civil engineering and plant sectors thanks to proactive
Housing 16
Building 42
marketing activities in the global market.
New orders
Breakdown of sales in
2011
(%)
(KRW in billions)
7,053.7
2011
12,273.5
5,219.8
5,955.7
2010
10,384.1
4,428.4
8,067.7
2009
Civil 24
Plant 18
10,073.5
2,005.8
● Domestic ● Overseas
Housing 20
Building 28
Expanding R&D Activities
The Engineering & Construction Group has been proactively investing in R&D
activities in order to secure technological prowess for future growth and boost
its competitive strength in existing businesses. The Construction Technology
Center, which spearheads R&D activities, consists of the Technology Strategy Team, Construction Product Technology Team, Green Technology Team,
Breakdown of new
orders in 2011
(%)
Construction Equipment Team, and the BIM (Building Information Modeling)
Team. The center is dedicated to establishing technological strategies and
conducting research tasks on eco-friendliness, energy efficiency and other
Plant 37
Civil 15
studies on various fundamental technologies. In 2011, a total of KRW100 billion was invested in R&D activities, which accounted for approximately 1.4%
Order backlog
(KRW in billions)
2011
31,580.7
2010
26,749.7
2009
24,101.0
of annual sales. Investment in R&D activities has been steadily on the rise
every year.
R&D investments
(KRW in billions)
2011
100.0
2010
87.1
2009
80.0
Business Portfolio
9
Business Portfolio
Trading & Investment Group
Major Businesses
The Trading & Investment Group creates economic value through concentrating its business capacity mainly on plants, resources and industrial materials sectors. To this end, we strive to enhance business expertise, improve the risk management system to respond to ever-changing corporate
management environment, and foster trading and organizing capabilities. Other focuses are on developing talented employees and consolidating our
global operations. These efforts will allow us to achieve stable growth and leapfrog into one of global top 10 trading companies.
Plant (thermal power, renewable energy, LNG infrastructure,
ships, EDCF project)
As for Plant organizing business, we have teamed up with partners around the world to
expand our reach into the fields of thermal power, renewable energy, LNG infrastructure,
ships and EDCF (Economic Development Cooperation Fund) projects. In addition to
consolidating foundations in profit-making ships and EDCF projects, we will continue
to expand our business portfolio into LNG infrastructure as well as thermal power plant
where we have a competitive edge.
Resources (coal, copper, rare metals)
With regard to resources trading projects, the Trading & Investment Group has endeavored to stably secure and supply natural resources which are the foundation for the
nation’s industrial development. In particular, coal and copper trading was selected as
an emerging business of the Trading & Investment Group, in which our managerial resources are preferentially invested. The Company will continue to do its business as a
leading company in trading minerals and nonferrous metals such as coal and copper by
reinforcing trading technology and cultivating experts with world-class trading capabilities.
Industrial Materials (steel, chemicals, strategic materials)
The Trading & Investment Group is also engaged in trading industrial materials. We are
striving to develop new promising materials and sales channels to trade core industrial
materials such as steel, chemicals and strategic materials. We are also focusing on
establishing a stable supply base by securing a right to take over such materials early.
To secure competitiveness in global trading, the business portfolio is being expanded to
storage, transport and treatment sectors.
10
Overview
Major Achievement in 2011
Improving Company-wide Ability to Manage Risks
Our trading business model, by its nature, needs to preemptively respond
As Trading & Investment Group conducts diverse business around the world,
to ever-changing global economic conditions and raw materials prices. The
there are many inherent business risks. To effectively respond to such risks,
organizing business model should also take into account various factors in
the Company has established and developed a proactive risk management
global economic and political aspects when pushing ahead with the busi-
system at an early stage of business. Our risk management system is being
ness. In that sense, the year 2011 was in severe financial hardship due to the
operated in three core directions – corporate infrastructure (Taskforce team
financial crisis led by Europe, global economic downturn stemmed from the
and systems), corporate culture (mandatory training on risk management for
downgraded U.S. sovereign credit rating and recession of the real economy
all employees), and monitoring and evaluation.
caused by austerity measures of emerging countries. Despite such unfavorable business environments, Samsung C&T Corporation Trading & Invest-
Business Innovation by Restructuring
ment Group achieved great progress by posting KRW14.2 trillion in sales, up
Our business structure has been reshaped in order to proactively respond to
35.2% compared to the previous year, thanks to strengthening the company-
a rapidly changing business environment and lay the groundwork for stable
wide risk management system and sales competitiveness.
growth. Recently, our business focus is being transformed into trading and
plant organizing sectors, which contributes to the creation of synergy. More-
Business Portfolio
over, our managerial resources are preferentially invested in core emerging
Trading & Investment Group operates diverse business in natural resources
businesses in each sector. For consistent business innovation, we set up
and industrial materials trading and plant organizing areas. Its well-balanced
four key strategic directions: 1) establishing integrated global risk manage-
business portfolio has allowed the Trading & Investment Group to build a
ment system based on business expertise, 2) enhancing business capability
stable profit-generating base and promote sustainable growth model even
through functional consolidation, 3) cultivating talented employees who will
in unstable global economic conditions. As for industrial materials such as
lead our businesses and 4) establishing global operation system with spe-
steel, chemicals, and strategic materials, we are increasing our market share
cific plan to build capability. Based on these, Trading & Investment Group is
in the world based on accumulated trading know-how. This business is also
focusing on securing trading competitiveness to achieve sound and stable
being accelerated with the diversification of supply chain and establishment of
growth.
off-take rights. In resources trading and plant organizing businesses, we are
continuously focusing on improving resource trading techniques and organizing expertise tailored to the local culture and regulations. Thanks to these efforts, sales in resources and plant organizing businesses accounted for 26%
of the Trading & Investment Group's total sales in 2011, an increase of 7%
from the year before.
Breakdown of sales
by business in 2010
Plant 4
Plant 4
Resources
Resources
15
Breakdown of sales
by business in 2011
(%)
Industrial
materials 81
22
(%)
Industrial
materials 74
Business Portfolio
11
AREA OF
CORPORATE
INTEREST
Samsung C&T Corporation is fulfilling its role and responsibility as a corporate citizen in order to
contribute to building a brighter future for all. Every employee is committed to voluntarily participating in social contribution activities to share love with communities and build a compassionate society. Furthermore,
we are going to lay the foundation for shared growth with business partners and
be remembered as a trustful business partner providing better value to customers.
Together with you, Samsung C&T Corporation is shaping a
better future for all.
Head Office in Seocho-dong, Seoul
Core Value
1 14P Customer Satisfaction
Through Innovation
Core Value
2 20P Shared Growth With SMEs
Core Value
3 26P Value Creation Through
Social Contribution
Core Value
4 32P Employee Health And
Accident Prevention
Core Value 1
Customer Satisfaction through Innovation
Company Requirement Background
Customer satisfaction has long been perceived as a role and
responsibility of the service department or a department in
charge. Due to such a perception, customer satisfaction activities have been conducted only through after-sales service,
with little efforts to fundamentally improve the quality of goods
through technological development and integration of works of
departments in charge. However, it will be focused on providing
customers with differentiated services and conducting innovative activities for real customer satisfaction management in the
future.
The Engineering & Construction Group also aims to improve
customer satisfaction fundamentally by operating an integrated
management system, expanding innovation-based business areas, and technological innovation for future growth. To this end,
we will continue to consider the results of project performance
and customer’s feedback as major sources of new project development and innovative activities, and make efforts to provide
best goods and services to our customers.
Turning Dreams into Reality with Innovative Construction
Technology
The world’s biggest three dimensional atypical external construction
Samsung C&T Corporation Engineering & Construction Group installed the world’s
largest three dimensional atypical external panels to the Dongdaemun Design Plaza
project to be completed in July 2013. To this end, we had succeeded in standardizing
the construction procedures of BIM (Building Information Modeling) design, AL panel
The Trading & Investment Group has reshaped its business
structure by giving more weight to emerging sectors such as
industrial materials, resources and plant organizing based on its
competitive global network, information gathering and management skills accumulated from traditional trading business, and
concentrated its competitiveness on those businesses. To create innovative values from emerging businesses, all employees
and forming equipment development for plant establishment and on-site installation,
are striving to acquire and share technological, industrial and
through which we realized the first-ever proprietary construction method. It allowed
managerial capability required in new business environments,
us to reduce the costs and shorten the construction period. Moreover, Korea’s larg-
and generate a synergy effect in making inroads into new mar-
est atypical curved green roof method applied to this project contributed to reducing
kets and expanding the business scope through the CLO (Chief
urban heat island phenomenon and saving energy consumption of buildings.
Learning Officer) activities aimed at improving professionalism.
We figure out the impact of products and services created
through such innovative activities on customers via various customer satisfaction channels and processes, and then reflect
Identification of Issues
Key
issue
Enhancement
of innovative activities
Other
issue
Improvement of
customer satisfaction
Stakeholders
such impact to future innovation activities.
Innovation Process
Constant Innovation to Increase Customer Value
With a goal of making customer convenience our first priority,
Customers
Employees
Samsung C&T Corporation has been focusing on providing innovative services and products. With this goal, we have streamlined our innovation processes to effectively utilize the organization’s work flow and productivity, and delivered services and
Customer satisfaction
through innovation
14
Area of Corporate ​​Interest
Shareholders
and investors
Business Partners
products which have gone through such improved processes
to our customers. Moreover, we are factoring the customers’
Local
Communities
opinions into the processes to steadily innovate services and
goods.
Innovation Process of Samsung C&T Corporation
Select innovation tasks for products and services
F
e
e
d
b
a
c
k
Build a
Analyze
Estabprocess
the value
lish and
BenchmarkinfrastrucEvaluate
chain of the conducting
ing and
ture and or- profitability
industry and business
R&D
ganizational
market
strategies
culture
Develop products and services
Collect opinions from customers
Classify
contents
Accept VOCs
Analyze
Innovation for Future Growth in Construction
The Engineering & Construction Group has been performing innovative activities throughout the whole construction processes
as well as improving management systems to secure differentiated competitiveness with the goal of becoming a global leading
player by 2020.
Image view of the Qurayyah project in Saudi Arabia
Business Expansion through Innovation
Through innovation, we have transformed our business areas
and made our way into overseas and new markets. The Company succeeded in winning the EPC contract for the Qurayyah
Independent power project, combined cycle gas-fired power
plant with the world’s largest generation capacity of 4,000 MW,
from Saudi Arabia in 2011, which unleashed our advance into
Operating the Integrated Management System
The IMS (Integrated Management System) is a system to fulfill
operational, organizational and legal requirements to meet the
global business environment changes. With IMS, Samsung
C&T Engineering & Construction Group will be able to minimize
operating costs and effectively respond to potential risks during the project implementation. This also eliminates non-value
adding processes during the project life cycle. In addition, IMS
proactively responds to international Quality, Health & Safety
and Environment standards and establishes social responsibility
management platform.
new markets and value chain expansion.
The Qurayyah project will enable us to expand our capability into
project development through equity investment and operation &
maintenance(O&M) beyond existing EPC-centered businesses,
which will also lay the foundation for us to grow into a global
player.
This project is under construction with the goal of completion in
June 2014, and has been acclaimed by the owner, Saudi Electricity Company (SEC), for its excellent performance throughout
the project execution period.
Samsung C&T Corporation Engineering & Construction Group
will become a global leader in the power plant construction
Integrated Management System (IMS)
market by successfully completing the Qurayyah project and
enhancing project development capabilities.
ISO 9001
Operation and
process training /
customer satisfaction
Technology Innovation for Future Growth
lity managem
ent
Qua
The Engineering & Construction Group continues to take a
steady approach to technological innovation in order to secure
Safety facilities /
safety process
technological capabilities for future growth and strengthen the
tal
ma
nage
ment
d
an
Safety
OHSAS 18001
he
alth
Integrated
Management
System
en
nm
Enviro
competitiveness of existing businesses. As a result of such
innovation activities, as of January 2012, we demonstrate the
ISO 14001
best technological capabilities among domestic construction
Environmental
pollution control /
environmental
preservation
companies with a total of 295 construction technology related
patents. Our commitment to technology innovation leads to a
result of registering more than 20 new patents every year.
Customer Satisfaction through Innovation
15
Enhancing Competitiveness through the CLO
5 Directions for CLO Operation
The Trading & Investment Group formed the Creative Learning
Organization (CLO) as part of management innovation activities
to achieve its vision. The CLO is a unique learning organization
where employees obtain necessary knowledge and information on industry, technology and management in a systematic
approach and turn them into intellectual assets. The CLO also
deepens expertise of works and facilitates communication
among all employees, thereby creating a synergy effect in business operations.
The CLO is operating on the basis of 5 directions for management innovation - selection of CLO themes, team composition
and activity planning, implementation of CLO activities, assessment, and rewarding.
❶
Intensify
professionalism
Promote systematic
CLO activities to foster
top-class professionals
Vitalize
communications
Share information through
on-/off-line communication channels and creating
synergy
Cumulate
Establish solid
experience
Directions
foundation
and know-how
Provide activity costs,
Publish fact books and
training programs to
white papers to share
strengthen capabilities, and
experiences and know-how
promotion process
accumulated through
and tools
core businesses
Enhance power of
execution
Connect strategic tasks to
achieve mid-/long-term vision
with CLO activities
❷
❸
❶ After services for customers of Raemian ❷ Presentation on CLO activities ❸ After service reception booth of Raemian
16
Area of Corporate ​​Interest
Reflecting Innovation into Business Activities
Communications for Customer Satisfaction
The Trading & Investment Group makes a database of knowl-
Pursuing the Best Quality
edge and information generated through the CLO activities and
The Engineering & Construction Group has established spe-
shares them at the enterprise-level. In 2011, we rearranged the
cific criteria to respond to client’s complaints about services and
results of CLO activities into 155 cases of outcome, and incor-
products in each business of building, civil engineering, plant
porated them into our business activities.
and housing.
Innovation Performances of the Trading & Investment Group
Category
Promotion Purpose
Major Performances
and Future Plans
Mineral
resources
Lay the foundation for
future growth through our
emerging businesses
Reviewed a smallsized coal-mining
development project in
Indonesia
LNG
terminal
Implement power plant and
LNG terminal businesses
successfully
Executing a
negotiation for PF for
the Manzanillo project
in Mexico
Power plant
(hydroelectric
& thermal)
Combined
power plant
Strategic
materials
To solve client’s complaints promptly and effectively at construction sites, we strive to take a systematic response to such
complaints and conduct repair works by maintaining the related
of the Warranty Service department.
database and consistently complementing the work processes
After receiving complaints, we visit the construction site firsthand and discuss with persons in charge to understand requests from clients, and analyze problems in detail. Afterwards,
Won the partnership
for a joint power plant
construction project in
Balkash, Kazakhstan,
from KEPCO
we identify a responsible manager within the Company, provide
Secure measures to fund
for the construction of
combined power plant
complex
Promoting power plant
projects centered on
core markets (America
and Europe)
by upgrading our management method to minimize customer
Normalize palm plantations
in Indonesia and improve
operational efficiency
Improving product
quality at palm
plantations in Indonesia
repair service to the client and verify that the complaints are resolved completely. We will endeavor to improve our client value
complaints.
* As of August 2012
❹
❻
❺
❹ Raemian Community Center ❺ Photo Exhibition Held by Ambassadors’ Wife Association at Raemian ❻ Raemian Book Cafe
Customer Satisfaction through Innovation
17
General Response Process to Customer Complaints
•Running an Online Community
The ‘Raemianity’ (Raemian plus Community) online cafe is a
Receive
customer
complaints
Report on
customer
complaints
Identify,
check and
analyze
complaints
venue for communications among residents who want to exEstablish
repair work
plans
Dispatch AS
partners
change their concerns and information on events and other
matters. It also serves as a Prosumer channel to reflect the
residents’ opinions gathered from various surveys for customer
needs on services and products.
Manage
customer
complaints
history
Complete
response to
customer
complaints
Review and
inspect
repair
results
Conduct
repair
works
Systematic Prevention and Management of
Customer Complaints
The Raemian apartment unit is operating a system to prevent
customer complaints at an early stage and respond to them.
Running Various Customer Contact Channels
The Engineering & Construction Group is running various customer contact channels ranging from disclosure of product
information on the website to client’s participation in pre-assessment of products. We break down opinions gathered from
customer contact channels including model house, customer
contact center and website into questions, complaints, suggestions or compliments, and then input them into our management system. Afterwards, each team and person in charge
check, analyze and handle such opinions before directly notifying to customers. If the process is delayed, we send an urgent
To improve the system, we established and revised regulations
centered on customers in each department and section, and
adopted the S-CCMS (SAMSUNG Consumer Centered Management System) for an integrated VOC management, which
contributed to our rapid and systematic responses to customer
complaints.
In addition, a VOC feedback system is operating to analyze the
causes of the complaints and any defect, through which the
results are shared with the department concerned to solve the
complaints.
VOC Feedback System in the Housing Business
email to a responsible team and enable a speedy solution to the
complaints received. We verify the customers’ satisfaction level
of innovative products through this management system and
endeavor to meet the customers’ expectation by providing them
with higher quality products.
•MOT Customer Satisfaction Investigation (CSI)
MOT Customer Satisfaction Investigation (CSI) is an investiga-
Model house
Construction
sites
moving in (2 months after moving in, for all buildings occupied)
to improve customer service and increase the quality of customer-first services.
•Customer Contact Center
The Customer contact center, which was formed in 2002 for
the first time in the domestic construction industry, continues to
identify questions and complaints from Raemian residents, and
provide them with expeditious and systematic consultation services. In addition, it analyzes, manages and provides feedback
on VOCs collected from visiting after-sales services and the
Happy Call (investigation of customer satisfaction level) activities
for Hestia Service (bed bug extermination service).
18
Area of Corporate ​​Interest
Identify
Problems
S-CCMS
(Integrated
VOC system)
Monthly report
on VOCs,
daily report
on e-VOCs,
debate on
problems
Establish
and execute
recurrence
prevention
process
•Acceptance
and treatment of
VOCs
•VOC analysis
•Supervised
by housing
business head
•Daily, monthly
and yearly
execution
•Report and
horizontal
execution
Project office
CS office
Customer
contact center
tion carried out by the CS team, through which the team evaluates products and identifies customer complaints early on after
Analyze VOCs
•Occurrence
of VOCs
Interview
Key Figures
“Systematic quality management activities must be maintained through
the integrated management system.”
Number of new patents
Quality management activities are crucial in every stage of
a construction project, from preparation and engineering, to
construction work, maintenance and repair. Therefore the
major builders have adopted an integrated management
(units)
2011
54
2010
22
2009
25
approach in recent years. Samsung C&T Corporation is no
exception to this trend and has been engaging in systematic quality management activities through an integrated
management system.
Importantly, we are among the best in Korea in identifying
Royalty revenues
2011
and minimizing risks in advance by managing systemati-
2010
cally from the project preparation and planning stages. In
2009
addition, we have an advanced system for providing technical support to construction sites and for managing qualityrelated data, making us a domestic construction industry
(KRW in millions)
114
145
95
108 6
228
103
248
95
190
● Government-guaranteed new technology
● Patent ● Know-how for R&D tasks
leader.
The in-house quality management system is important for
strengthening leadership as a top-tier global player. How-
Ranked 1st in the apartment sector of the National Consumer Satisfaction
Index (NCSI) for 15 years in a row (as of 2012)
ever, I believe a system needs to be put in place for extending quality management to subcontractors. The criteria for
selecting subcontractors should not only be price competitiveness but should also reflect quality related factors.
Sang-geun Yoo
CEO of LRQA Korea
Customer Satisfaction through Innovation
19
Core Value 2
Shared Growth with SMEs
Company Requirement Background
The shared growth between large and small-/medium-sized
companies is a prerequisite for securing sustainable growth engines and creating new jobs. In this sense, it is a highly practical
and urgent issue. To ensure transparency and fairness, we have
established and managed rules and processes for choosing and
evaluating business partners and transacting products with them.
We not only provide them with trainings on fair trading practices
and monitoring systems but conduct various activities to support
them to strengthen their technological competitiveness.
Practical Shared Growth System
Agreement on Shared Growth with Business Partners
The Engineering & Construction Group obtained an excellent
shared growth credit in 2007, when we signed and implemented
a shared growth agreement with business partners for the first
time in Korea’s construction industry. Since 2011, more agreements on mutual cooperation and fair trade have been concluded,
through which we have promised various support aimed at helping our partners reinforce financial soundness, improve payment
conditions, and accelerate technology development, including
A Reliable Partnership to Last More Than a Century
training programs for enhancing their professional capabilities.
Holding the Partner’s Day
not only laying the foundation for fair trade with subcontractors but
The Engineering & Construction Group holds the Partner’s Day event every year in
setting up five action plans to enhance global competitiveness of
order to share the results of the year with its business partners and reaffirm the de-
our business partners.
Our efforts to build the shared growth relationships also included
termination for achieving shared growth and a higher level of development. On the
Partner’s Day, we introduce our business policy and outsourcing plans to our busi-
Five Action Plans for Shared Growth
ness partners, and provide them with training on quality, safety and compliance.
In addition, we boost morale of our partners and solidify the partnership with them
by awarding best partners and issuing excellent partner certificates to them. As the
venue where Samsung C&T Corporation and its business partners meet and communicate to raise the level of mutual understanding and build bilateral trust, the value
of Partner’s Day will continue to grow year after year.
Identification of Issues
Make all payments in cash and reduce the payment term to 10 days.
Use standard subcontractor contract, using a written contract and
applying reasonable unit prices.
Endeavor to adopt a system for adjusting unit prices reflecting
price rise of raw materials.
Provide partners with technology support, quality innovation and
employee training.
Stakeholders
Eradicate inappropriate acts: giving or accepting entertainment,
gift or any other undue benefit or influence
Key
issue
Other
issue
Supports for SMEs
Process establishment
for fair trade
Achieve win-win partnership with small businesses
by strengthening their global competitiveness
Customers
Employees
Efforts for Shared Growth
Analysis of corruption
risks at sites
To provide assistance to our business partners efficiently, we designated a department (Strategy Part of Outsourcing Team at the
Shareholders
and investors
Shared growth with SMEs
Business Partners
Global Procurement Center) dedicated to shared growth duties.
Through the dedicated department, we listen to the opinions of
Local
Communities
our business partners and enact and manage ethics regulations
aimed at preventing corruption and illegal dealings between our
employees and them. Apart from this, training programs on legal
20
Area of Corporate ​​Interest
compliances are provided more than twice a year. Through these
Shared Growth Programs
efforts, we are ensuring transparency while sharing growth with
The Engineering & Construction Group is implementing the princi-
our partners.
ple of shared growth with partners by operating various programs
for helping them enhance their competitiveness. Those include
Evaluation of Partners’ Sustainability Management
Activities
supports for funding, financial soundness, payment conditions,
The Engineering & Construction Group selects best partners by
pacity.
comprehensively evaluating their sustainability management per-
First of all, payment conditions were improved to help them se-
formances including quality, environment, and safety as well as
cure cash liquidity. The cash payment rate drastically increased
financial stability. The records are transparently delivered to related
from 47% to 100%, and the payment term was also shortened to
departments so that they can use the information as an important
10 days from reception of tax bill. We provide financial assistance
indicator in dealing with business partners. In particular, excellent
in various forms such as direct, indirect, and mixed methods so
partners with high grades are exempt from a performance bond,
that partners secure funds easily and grow stably. Along with
and they receive more orders from our purchasing departments.
financial assistance, we implement programs for encouraging
This incentive system encourages them to accelerate sustainabil-
technological development of partners in order to enhance their
ity management activities.
ability to grow on their own feet. For instance, we hold the joint
technological development and improvement of professional ca-
technology development project contest and transfer knowhow
Evaluation of Business Partners
Evaluee: Companies with construction performances within evaluation period
Time: Twice a year (April and October)
Criteria
Item
CASE STUDY
Construction site management capability
Quality, environment, safety and construction
The 9th Appointment of Samsung Master Mechanic
We strive to understand the role of site managers who are employees of partners, and support them to recruit and cultivate
talented people.
The Engineering & Construction Group operates the Samsung Master Mechanic certification system, under which about 200 people win
the title annually. By awarding excellent managers of partners with
special rank and incentives, the Samsung Master Mechanic certification system encourages employees of partners to improve their skills
and capabilities, and by doing so, we foster talent who will grow hand
in hand with Samsung C&T Corporation. The Company will continue
to award outstanding employees of partners and provide them with
opportunities to attend professional training programs through the
Samsung Master Mechanic certification system.
and major methods to them. These efforts contribute to sharpening their competitiveness in technology and cost control.
In addition, we lend our patent rights and utility model free of
charge, while supporting them to apply for patent rights on their
own and jointly developed technologies with Samsung C&T
Corporation. Diverse training programs targeting employees of
the partners are also provided for the development of talented
people.
Financial Assistance to Partners
Classification
Contents
Direct support
Operating funds, funds for About KRW10 billion
adopting facility · equipment (free loan)
for partners
Amount
Funds for developing new KRW500 million
technology
(free financial aid)
Indirect support Loan from financial
institution: family loan
Up to KRW50 billion
Mixed support
Raised funds of
KRW100 billion
(KRW27 billion deposited)
Shared growth fund
Training Programs for Partners
Division Employees of
Subject
partner company
Training On-site
managers
Strengthening independent work capability
(about 500 people)
New CEO
Business management, construction quality
enhancement, and general education (4
times a year, about 20 partner companies)
Executives
and office
workers
Running lectures on work-related internet
use
Rewards On-site
managers
Selecting excellent managers
·G
ranting the title of Samsung Master
Mechanic and bonus (KRW200,000/month)
· Selecting best master mechanics (KRW3
million prize money and overseas learning trip)
The 9th Appointment of Samsung Master Mechanic
Shared Growth with SMEs
21
Other Supports to Partners
Activities of the Partner Consultation Committee
Classification Plans
Bidding
· Increase opportunities for participating in bids by managing
partners by region.
· Maintain the rate of electronic bidding at 100%.
· Operate low price monitor system aimed at preventing
loss of partners.
Consulting
service
· Improve business management environment
Payment
· Monitor and manage payment situation to ensure all
subcontract payment to be made by the due date.
Introduction · Include and evaluate shared growth performances upon
of shared
setting up task goals for executives of procurement
growth
department
performance
assessment
system
Partner Consultation Committee
The Engineering & Construction Group strives to find ways for
Technology
forum
Advance technological competitiveness of partners
based on communication activities focusing on
technical topics.
Technology
workshop
Discuss ways for enhancing technical competency.
Information
on material
market
situation
Assist partners in securing material supply by
providing timely information about material market.
Human
resource
management
D/B system
Provide D/B system containing the data of managers
and workers with skills and experiences.
shared growth with its partners meeting global standards. To this
end, the Company is operating the Partner Consultation Committee, through which we are solidifying bilateral trust with our part-
Communication Activities for Enhancing Technical
Competency in 2012
ners and building a win-win cooperation system for enhancing
Major activities
Detail
their technological capabilities.
Technology workshop
By holding workshops on a regular basis, we
set an annual plan for enhancing technical
competency (in March), review the result of
the enhanced technology, and identify areas
for improvement (in June and September).
Based on the outcomes of the year, we set
plans for the next year and ultimately achieve
technical developments.
BP case study meetings
We select best practices from each
subcommittee and share these with the rest
of the committee members.
Technology forum
Technology forum is a place for presenting
results of technology enhancement. We
give prize and share plans for advancing
technology.
Installation of Communication Channels
The Partner Consultation Committee consists of 38 subcommittees. And each subcommittee is composed of 38 assistant
administrators and 6 representative secretaries. Each subcommittee serves as a communication channel between Samsung
C&T Corporation and the partners as well as a leader for enhancing their technical competencies.
Workshop for Samsung Master Mechanics
22
Area of Corporate ​​Interest
Samsung Partners’ Day
Assistance for Technical Advancement
Fair Trade with Partners
Major activities
Detail
To pursue balanced development and fair transactions between
Discover tasks for
technical advancement
To encourage partners to upgrade their
technology voluntarily and thus hone their
competitive edge, we stage a contest for
technology tasks inviting all partners to
participate. We provide funds to contest
winners so that they can implement
the selected task and strengthen their
technology.
Set criteria for assessing
the result of technical
advancement of partners
By ensuring high quality evaluation criteria,
we encourage partners to advance their
technology and provide technical guidelines
for construction, thereby pursuing the
sustainable shared growth by enhancing the
quality of construction technology and cost
competitiveness.
Expansion of Green Management of Partners
The Engineering & Construction Group is leading the Green-
our company and business partners, the Trading & Investment
Group abides by the Fair Trade Compliance Program recommended by Korea’s Fair Trade Commission.
Establishment of Autonomous Fair Trade
The Trading & Investment Group implements its own compliance program. All our executives and employees take education related to fair trade, and their compliances are monitored.
Our fair trade activities are graded by the Korea Fair Trade Mediation Agency once a year.
Subcontract Process
SCM project of the Ministry of Environment. Under this project,
the Company encourages partners to obtain the ISO14001 certification, achieve green business status, and build eco-friendly
construction processes. In addition, employees of partners who
Clients
Individuals or companies who subcontract
manufacturing of goods, sales, maintenance,
and construction to prime contractors
Prime
contract
are in charge of environment-related tasks are able to participate
Prime contractors
in training programs, expert workshops and seminars for green
management.
Subcontract
Individuals or companies who
subcontracts manufacturing of
goods, sales, maintenance, and
construction to subcontractors
Make payments upon
the delivery of the
contracted goods and
services.
Subcontractors
Small-and mid-sized companies
that are subcontracted by prime
contractors
CASE STUDY
Hidden Champion
Manufacturing of goods
(incl. S/W business, ENG
activities, architecture design) sales, maintenance,
construction.
We put shared growth into action by actively participating in
the Hidden Champion program designed to strengthen global
competitiveness of SMEs.
The Trading & Investment Group is committed to sharing its knowhow
for making inroads into overseas markets with SMEs in order to elevate
their global competitiveness. By actively taking part in the Hidden
Champion program hosted by financial institutions such as the Export
and Import Bank of Korea, the Trading & Investment Group shares its
overseas networks and business resources and seeks competitive
items to bring to foreign markets including emerging markets.
Along with these, we strive to nurture outstanding SMEs to collaborate
in our new businesses, while helping them become Hidden Championsand receive financial benefits from the program for business expansion. In 2012, tractors produced by one of Hidden Champions companies were exported to the palm plantation of the Trading & Investment
Group in Indonesia, which unleashed a foray into similar markets in
Southeast Asian countries including Indonesia and Malaysia. This was
recognized as a desirable case to pave the way for SMEs to enter into
overseas markets.
Giving Awards to Best Partners
Shared Growth with SMEs
23
Interview
Key Figures
“We expect the commitment and effort for shared growth with subcontractors to continue.”
The concept of shared growth with small and medium-sized enterprises
(SMEs) is significant, given that it contributes to job creation and quality enhancement through tangible support measures and incentives for
qualitative growth. Sebang TEC has a established a strong consensus
regarding Samsung C&T Corporation’s policy reflecting a committed effort to growing in partnership with subcontractors. We are already seeing
tangible results from Samsung C&T Corporation’s shared growth initia-
Business Partners (Engineering & Construction Group)
Number of partners
(companies)
2011
1088
2010
842
2009
879
tive. Samsung C&T Corporation carried out various advanced management activities on the construction site; shortened the time in which
payment to subcontractors is settled and is paying in cash rather than
by promissory note. This kind of support has significantly strengthened
the financial standing of SME subcontractors. However, we still have to
address a common issue for the Korean construction industry in general. We hope that Samsung C&T Corporation will play a major role in
changing the current vertical relationship between the main contractor
and subcontractors to one that is more horizontal. As a leader in the construction industry, Samsung C&T Corporation can spearhead a change
in the way the industry works. Over the long term, this will also help raise
the competitiveness of Samsung C&T Corporation through the healthier
and more professional growth of its partners. Also I believe Samsung
C&T Corporation needs to assist outstanding subcontractors who lack
the means for breaking into overseas markets. To this end, the Company
should find the way to ensure the subcontractors maintain high quality
expatriate personnel over the long term by building the platform for their
overseas market entry, providing training on the work sites, and helping
the subcontractors to attract excellent human resources.
Boo-in Kang
Chairman of Sebang
TEC Co., Ltd.
Secretary of Shared Growth
Committee
24
Area of Corporate ​​Interest
Subcontract Amount
(KRW in billions)
2011
2,001.8
2010
2,440.7
2009
1,843.6
Interview
“I ask that Samsung C&T Corporation
participate whole-heartedly in identifying and cultivating small companies
that are strong.”
Financial Supports for Partners
(KRW in billions)
Direct supports
New technology R&D fund
0.24
Managerial supports
Emergency loan
Integrated supports
Raising shared growth fund
35.0
100.0
Germany is an export powerhouse with more than a thousand small enterprises with outstanding capabilities,
dubbed the “Hidden Champions,” which continue to perform well in the face of a global economic downturn.
Likewise, Korea needs to foster promising small exporters into medium-sized enterprises that can be solid players in global markets. This effort is required for the Korean
Indirect supports
Family loan
50.0
economy to achieve sustainable, balanced growth, and the
Export and Import Bank of Korea and Samsung C&T Corporation are working together on a Korean “Hidden Champion” project. Specifically, Samsung C&T Corporation is
helping top performing SMEs globalize their operations.
Company officials visit potential “Hidden Champions” to
Purchase of Local Business Partners
see firsthand what problems exist in potential areas for cooperation. Then the Company provides a support program
Amount of purchasing products and equipments through suppliers
(KRW in billions)
2011
2010
2009
146.0
168.0
150.2
9.9
12.1
Corporation continue to play a leading role in the industry
1,513.2
and society in developing best practices of cooperation
1,237.1
●Total ●Local ●Local purchase ratio
with Samsung C&T Corporation.
In coming years, we look forward to seeing Samsung C&T
1,467.8
11.1
to those that aspire to enter global markets in partnership
for uncovering and nurturing small businesses with a high
(%)
growth potential.
Kyung-hwan Lee
Head of
Hidden Champion office
Korea Eximbank
Shared Growth with SMEs
25
Core Value 3
Value Creation through Social Contribution
Company Requirement Background
Donations and community services had been regarded as most
of social contribution activities in the past. Without considering
identity and characteristics of businesses and local area, conventional community services had focused on the quantitative
side of charity. However, social contribution has been increasingly considered as a significant tool for corporate growth, and
it became one of corporate value creators along with business
operations in this era. In addition, most companies are required
to harmonize their strategies for making inroads into new markets and contributing to local communities in order to achieve
sustainable growth. To meet these trends, Samsung C&T
Corporation implements social contribution activities which are
linked to characteristics of specific divisions and office locations
worldwide. We strive to share what we gain from the society in
a systematic and tangible ways such as community support
activities, giving hope to the underprivileged, Habitat Movement
and cultural exchange, etc.
Strategy for Social Contribution
Samsung C&T Corporation is committed to establishing and
practicing strategies for social contribution to create sustainable
Sharing Love beyond Borders
value for both the Company and the community. The Sustain-
Voluntary Activities in India
ability Management Committee makes decisions for social value
Samsung C&T Corporation’s 2nd overseas volunteer team members along with the
creation, and we strive to increase communications with our
employees of Plan Korea and Videocon visited two centers for disabled children in
stakeholders in Korea and abroad based on the social contribu-
Sangam Vihar, Delhi and an elementary school in Madanpur Khadar for voluntary
tion guidelines in order to meet their needs.
services.
They carried out various activities such as building libraries, improving exterior de-
2020 Global Leading Player
sign of schools and playground, cleaning surrounding areas, etc. They also had a
good time building close relationship with local residents through T-shirt painting,
A Global Partner Contributing to Society through Solving Social Problems
paper crafting, and taking photos.
Identification of Issues
Key
issue
Other
issue
Stakeholders
Importance of value creation
through social contributions
Job creation and income improvement in local communities
Customers
Employees
Service creation for regional
development
Value creation through
social contributions
26
Happy Tomorrow
(Residence)
Area of Corporate ​​Interest
Shareholders
and investors
Business Partners
Local
Communities
Green Tomorrow
(Environment)
· Habitat for Humanity
· Environmental cleanup
- ‘Village of Hope’ in
around business sites
Cheonan
at home and abroad
-P
articipating in
· Developments of the
overseas habitat
Mugunghwa Park
campaign
-O
lympic Park, Korea
·S
upports for restoring
Military Academy,
wells in Meulaboh,
etc.
Indonesia
·C
ollaborative voluntary
works with local
partners
· Improvement of living
conditions of lowincome families
· Improvement of study
room conditions of
multicultural families
· Improvement of living
conditions tailored to
the disabled and aged
Dream Tomorrow
(Education)
· Establishment of
educational institutes
at home and abroad
- Education center for
the youth
- Establishment of an
elementary school
in Indonesia
· Sponsorship for
overseas sisterhood
children
· Supports for
multicultural children
· Sponsorship for arts
and physical talents
A home Built with Heart, Habitat
Social Contribution in the World
The Habitat Movement is the representative social contribution
Samsung C&T Corporation is carrying out social contribution ac-
activity at Samsung C&T Corporation. Through the Habitat Move-
tivities to help local communities where it is operating businesses,
ment, we provide people who live in poor surroundings with new
which include repairing community facilities, building houses, and
living spaces and give hope that they can stand on their own feet.
providing volunteer services.
Samsung C&T Corporation is playing a major role in spreading
the Habitat Movement beyond Korea. This movement has been
Participation in Local Community Development
going on for 13 years since 2000, and until 2011, a total of 271
The Engineering & Construction Group has been running projects
houses have been provided to low-income non-homeowners.
to improve the living environments of local communities such as
A total of KRW4.48 billion has been invested and 4,683 volun-
restoring wells, building schools, and providing vocational training
teers have participated in this movement from 2000 to 2011. We
programs in Indonesia. In Meulaboh, we rebuilt 20 wells through
will continue to conduct the Habitat Movement to deliver hope to
the Water for Life program designed to provide safe drinking water
the underprivileged.
to the community. During the process, the rate of households with
a drinking water facility in the region and the rate of sanitary training
“Village of Hope” Project in Cheon-an
attendance surpassed 90%, providing clean drinking water to more
The “Village of Hope” is a large-scale Habitat project to construct
than 3,000 local citizens. In addition, we provided nutritious food to
112 homes for 8 years between 2004 and 2012 run jointly by
500 children under 5 in Bogor, enhancing the growth and health
Samsung C&T Corporation and the Habitat for Humanity. We
status of children. As a result, we accomplished all the goals we
built various facilities such as a childcare center, community
set, such as 30% rise in children’s health condition and growth rate
center, and recreational spaces along with the homes so that
in tandem with a 50% drop in malnutrition rate, and 80% completion
people in the community can live happily and share hope with
rate in children’s education on nutrition and health.
their neighbors. Samsung C&T Corporation invested KRW2.82
billion in total for the land cost and part of the construction ex-
Volunteer Activities in Local Community
penses. In addition, more than 3,900 employees donated their
The Trading & Investment Group has been engaging in voluntary
labor at those construction sites.
activities aimed at helping low income children in developing
countries since 2011. In cooperation with partners located near
Location
‘Village of Hope’ in Gyochon-ri, Mokcheon-eup,
Dongnam-gu, Cheonan-si
Project Period
From 2004 to 2012
Number of
Households
112 households
Supports
KRW 2.82 billion (all costs of land purchase and
construction costs)
our global offices, we built new libraries and improved exterior
design of schools and play ground. At the same time, we held
recreational events such as T-shirt painting, paper crafts class,
and taking photos in order to intermingle with the local community. In July 2011, we carried out voluntary activities near
Delhi together with Videocon, one of our trading partners in the
region. This became an ideal example for a joint social contribution based on the partnership with our suppliers.
Voluntary Works for Habitat Campaign
Voluntary Works in Delhi, India
Value Creation through Social Contribution
27
❶
❸
❷
❶ ‘Water of Life’ Project in Meulaboh ❷ Charity Bazaar of Love ❸ Voluntary Works in India
Together with Local Residents
citizens living alone or welfare facilities during the winter season,
As a corporate citizen, Samsung C&T Corporation is committed
and provide school uniforms to teenagers of low-income fami-
to implementing social contribution activities for local residents.
lies. In addition, the Happy Tree event is held at the end of every
year, where our employees write their wishes on a card and
Vitalization of Local Economy
donate money for helping low-income neighbors.
Samsung C&T Corporation holds a farmers' market for special-
The collected money is sent to foundations for helping people in
ized local products of its sisterhood village during the Chuseok
need or related government ministries. The remaining products
holiday season. The proceeds from the market are given to the
after the Charity Bazaar of Love are donated to the Pearl S.Buck
village. For our employees, it is an opportunity to buy high quality
Foundation in Korea and the Beautiful Store.
fresh farm products at low cost. This is a truly win-win program for
both the community and the Company.
Support for Early Settlement of North Korean Migrant
Adolescents
28
Sharing Happiness with Low Income Neighbors
The Engineering & Construction Group is helping approximate-
At the end of each year, we hold a Charity Bazaar of Love where
ly 20 North Korean migrant adolescents who lost their family
we sell products donated by our employees and their families,
members while they were fleeing North Korea to adapt to their
and spend the profits to help poor neighbors in the region. We
lives in Korea through mentor-mentee programs. Under the pro-
also deliver thermal underwear, jackets, and blanket to elderly
grams, they are able to easily experience South Korean culture
Area of Corporate ​​Interest
❹
❺
❻
❹, ❺ Habitat Campaign in India ❻ Habitat Campaign with Natives
and make friends with children of our employees by watching
Delivering Hope to the Next Generation
movies and plays or by participating in sports events. These
The Engineering & Construction Group builds sisterhood relation-
efforts will be continued in the future.
ships with children in need and provides them with living expenses
until they become an adult. Every winter, our employees in Santa
Love Mugunghwa (the national flower of Korea) Campaign
Claus costumes visit study rooms for children and childcare cen-
The Trading & Investment Group has been conducting a promo-
ters in Seoul in order to spend time with children compassionately
tion campaign to let more people know the flower of Korea, Mu-
by giving cards and presents to children and making cakes togeth-
gunghwa, since the 1990s. The Love Mugunghwa campaign
er. They also keep their relationship with those children by regularly
includes a planting ceremony, distribution of seedlings, study on
offering free tutoring services. The new recruits of Samsung C&T
the flower, and exhibitions.
Corporation experience the social responsibility by conducting outdoor activities with children of foundations sponsored by Samsung
Supporting Marginalized citizens
We carry out various social contribution activities to give
C&T Corporation and helping the disabled with personal hygiene.
hope to the marginalized citizens of the society.
as in Korea. More than 300 employees of the Engineering & Con-
We are active in sponsoring the children in need abroad as well
struction Group built a one-on-one sisterhood relationship with
children of 47 countries, and have been maintaining contact with
their respective counterparts. In 2010, we made sandals with
yoga mats and gave them to children in Africa.
Value Creation through Social Contribution
29
Helping the Disabled
The Social Service Team of the Engineering & Construction
Group is committed to helping the disabled who are living in
Interview
welfare facilities. Their activities include giving baths and assisting the disabled with bathing, giving them an opportunity to
enjoy cultural events, accompanying them to outings, and providing them with necessaries.
On the Day for the Disabled every year, our new recruits visit
facilities for the disabled to do various activities including taking
them to a picnic and repairing the facilities. In April 2011, about
30 members of the Engineering & Construction Group took part
“I look forward to proactive and
voluntary participation in community
service by Samsung C&T Corporation
employees.”
in the disability experience program led by the National Rehabilitation Center to learn firsthand the difficulties of the disabled.
The relationship between Samsung C&T Corporation and
Habitat Korea traces back to 2004, when we took part in
Caring for Elderly Neighbors
a Habitat project for creating a “Village of Hope” in the
The Engineering & Construction Group’s employees are in-
Mokcheon district of Cheonan in Korea. Habitat for Human-
volved in voluntary activities at welfare facilities and homes of
ity works under the slogan of “a world where everyone has
the elderly living alone. They accompany the elderly for outdoor
a comfortable home.” This is a movement for providing
activities and cultural experiences. In addition, they run various
volunteering programs such as becoming a one-day child of the
elderly living alone and delivering lunch boxes.
We have been running a depression prevention program for
senior citizens in the community in cooperation with Umyeon-
economical and comfortable homes for low income people
who suffer from a poor living environment without their own
homes,. These direct social contribution investment activities demonstrates our company philosophy contributing to
the prosperity of the country and humankind as well as our
corporate value.
dong Community Center since 2010. This program contributes
Now it is important to encourage a proactive and voluntary
to enriching their lives by helping them develop hobbies and
participation of employees by setting a sustainable social
enjoy spare time.
contribution strategy, making investments, and sharing the
CSR visions and philosophy with employees. Furthermore, I
Assisting Children of Multicultural Families
hope Samsung C&T Corporation raises awareness of social
Since 2006, the Trading & Investment Group has been provid-
contribution activities to all employees and make them an
ing supports for children of inter-racial families to help them grow
integral part of the corporate culture.
with confidence and hope to become a model citizen in the
future. In cooperation with Pearl S. Buck International Korea, the
only organization in Korea helping inter-racial children, we are
operating a wide range of programs including scholarships for
inter-racial children and campaigns to change the perception of
society toward multicultural families.
Dae-Gil Kim
Executive Secretary, CheonanAsan Branch of Habitat Korea
30
Area of Corporate ​​Interest
Key Figures
Interview
Investments in Social Contributions
“We ask Samsung C&T Corporation
to serve as a role model for other
businesses in social contribution
activities.”
Investments by Sector
2011
2010
1.05
(KRW in billions)
1.82
0.97
2009
3.63 0.01
2.18
6.51
3.04 0.04
2.14 0.51
3.67 0.06
of our current age. We are living in a time when society
6.38
gives high marks to those businesses that live up to their
● Educational institutions ● Social welfare organizations
●
Other donations
●
Fulfilling corporate social responsibility is a requirement
6.23
Governmental organizations
social responsibilities. To meet its status as a world-class
constructor, Samsung C&T Corporation should win public
support with the image of socially responsible corporation
Investments by Region
(KRW in billions)
6.28
2011
2010
6.51
0.23
6.17 0.06
2009
6.23
6.36 0.02
●
6.38
Domestic ● Overseas
that also cares for the disadvantaged, rather than one that
simply focuses on its own people and profits. Furthermore,
Samsung C&T Corporation may set aside a certain percentage of earnings as a budget for CSR activities, disclose the
amount of that budget, and endeavor to keep its promises.
If Samsung C&T Corporation does so, it will be a true role
model and opinion leader that spearheads the welfare of
Korea. As a professional working in the field of welfare affairs, I believe this would be welcome news. The Compa-
Social Contribution Activities
(Hours)
ny's actions and dedication to serving society will touch the
hearts of all and make a difference in Korea’s social welfare
2011
2010
2009
34,853
45,268
30,769
as a leading company and CSR role model.
44,519
31,960
54,336
● Total hours ● Participants
(persons)
Participation in the Habitat Campaign
Classification
Regions
Number of
households
2009
2010
2011
Domestic
Cheonan-si
Cheonan-si
Cheonan-si
Overseas
-
Punducherry in
India
Jakarta in
Indonesia
Domestic
16
12
12
Overseas
-
46
1
Volunteer (persons) Domestic
1,091
963
522
Overseas
-
10
10
Domestic
5.6
-
6.0
Sponsorship
(KRW in billions)
* The donation amount indicates the cost spent for repairing the aftermath of the heavy
rainfall in addition to the construction expense of KRW2.1 billion spent in 2008 for
purchasing land for the Habitat project.
* The overseas Habitat in 2009 was canceled due to influenza A.
Kyung-hee Bae
Director, Pearl S. Buck
Foundation Korea
Value Creation through Social Contribution
31
Core Value 4
Employee Health and Accident Prevention
Company Requirement Background
Recently, expanding health care program for employees and their
families and enhancing the level of health care are becoming significant to all industries. Recognizing the need of improving the
health of all employees and their families, we introduced a variety
of health care programs and systems.
In addition, it is essential to establish a company-wide safety
management system and obtain safety-related international
certifications for preemptively removing hazardous factors in
construction sites at home and abroad. Accordingly, Samsung
C&T Corporation strives to build a high-level safety management
system meeting the global standards by continuously focusing
on strengthening safety management and improving working environments at all sites.
Employee Health Management System
Supporting Health Management of Employees and Their
Family Members
Samsung C&T Corporation is committed to increasing the level
of health management of employees and their family members
by improving and complementing its health management support programs such as financial support for heart surgery, which
Safe and Pleasant Construction Site
contributes to raising their quality of life both at work and home.
Preventing Serious Accidents through Intensive Control and Risk Assessment
Samsung C&T Corporation Engineering & Construction Group is committed to preventing serious accidents through intensive management and risk assessment at
sites. We select dangerous tasks requiring intensive management through accident
type analysis and take safety measures based on risk assessment. Also, the Samsung OHSMS is utilized in order to systematically manage practices and procedures
for ensuring safety. In addition, we hire or nurture high quality safety managers and
health care professionals as means to effectively prevent accidents.
Identification of Issues
Key
issue
Other
issue
Classification
Reinforcement of corporate image
through accident prevention
Medical
checkups
Employees
Reduction of direct and indirect
loss expenses
Area of Corporate ​​Interest
Shareholders
and investors
General checkups
The supported: Ineligible persons for comprehensive
medical checkups
Time: Once a year
Contents: Legal items, liver cancer, colorectal cancer,
hepatitis A, and thyroid, etc.
Comprehensive checkups
The supported: Higher positions including managers and
lower position including assistant managers who are 30 or
older
Time: Once in two years for spouses of employees who
are 30~39 year old, and once a year for over 40-year
employees
Contents: Blood, arteriosclerosis, endoscope, CT, MRI,
echocardiography, etc.
Stakeholders
Customers
Contents
Supports
The supported: Executives and employees and their
for medical spouses and children
bills
Contents: Insuring for actual medical bills
Employee health and work-related
accident prevention
Employee health and
accident prevention
32
Health Care Support Programs
Business Partners
Local
Communities
Group term The supported: Executives and employees
insurance Contents: Death (KRW150 million), cancer diagnosis and
others (KRW10~20 million)
Cardiac
surgery
expenses
The supported: Children of employees
Contents: Supports for 70% of personal share in expenses
in case of cardiac surgery
Mutual aid
fund
The supported: Employees
Contents: Interest-free loan within KRW20 million in case
of economic problems caused by accident, disease and
disaster, etc.
Mental Health of Employees
Zero Accident and Safety Management System
With the rising awareness of people on mental health today,
The Engineering & Construction Group reduces safety-related
mental health is emerging as an important health care issue to
accidents through organic links between a dedicated department
be managed along with physical health. Samsung C&T Corpora-
on health and safety of headquarters and construction sites.
tion is operating the “Heart Garden”, a counseling service by a
We also manage the health and safety standard in a systematic
specialist for lifting psychological difficulties such as work stress,
way based on KOSHA 18001 and OHSAS 18001 certifications.
interpersonal issues, depression, and anxiety. Employees visiting
the Heart Garden receive a comprehensive diagnosis on their
Safety Management System (Samsung OHSMS)
mental health through diverse psychological tests and one-onone counseling service via various channels including personal
PLAN
visits, phone calls, and the website. Moreover, we are dedicated
Establishing consistent safety and health policies and action plans
(Corporate, business unit, worksites, and partners)
to boosting teamwork and building healthy personal relations by
developing and running psychological programs by each department.
DO
Thoroughly complying with working standards and process
(all employees, partners, and site workers)
Maternity Protection
CHECK
We are operating various maternity protection systems to contribute to reducing low fertility rate and improving health and
Executing audits and patrols for safety practices
working conditions for women. We put restrictions on night-time
ACTION
and holiday working of pregnant women as well as providing
prenatal check-up vacations, prenatal vacations, miscarriage
Continuously improving processes and working environments
vacation, and maternity leave.
In addition, to create an environment where pregnant women
can focus on their jobs, employees are encouraged to protect
Ensuring Safety and Health at Sites
the rights of pregnant women by placing an identity label for
Hiring and Fostering High Quality Professionals
them and distributing maternity protection guidelines to their
As part of efforts to enhance competitiveness for implementing
department members. Every department has a mandatory sys-
projects, we hire and foster health and safety experts. By build-
tem to apply short working hours (15 ~ 30 hours per week) for
ing highly professional and sophisticated management capabili-
employees with children age 6 or younger upon their request.
ties, we make construction sites a safer places to work. More
Women with high risk of miscarriage or a history of miscarriage
health and safety experts are joining construction sites and more
can use part of their maternity leave as prenatal vacations. In
on-site safety managers are turning into regular employees.
addition, we give maternity leave to irregular workers, raising the
In addition, we developed professional training programs de-
standard of every woman working in our company.
signed to upgrade the capacity of safety managers and prevent
on-site accidents effectively, and approximately 1,211 employees completed the program in 2011.
Regular On-site Safety Training
To prevent accidents and raise safety and health consciousness of workers at construction sites, we run training programs
CASE STUDY
Focusing on Preventing Accidents at Sites
We are committed to creating a safe workplace through
cooperation.
Samsung C&T Corporation operates a joint labor-management council and the Industrial Safety and Health Committee for the safety at
construction sites. Based on the cooperation between labor and the
management, we implement safety management activities to prevent
accidents in an effective way. The Industrial Safety and Health Committee serves to encourage participation of suppliers and ensures safe
work sites for employees of partners as well as our employees.
on health and safety matters on a regular basis. In 2011, we
standardized the safety and health training programs that had
been provided for each department and construction site in a
different way. As a result, workers at every site of the Samsung
C&T Corporation Engineering & Construction Group can receive
the same level of safety and health training and secure a high
level of safety and health consciousness through such high
quality training programs.
Employee Health and Accident Prevention
33
Safety Manager Training Programs
improvement and replenishment of safety facilities, and increasing
investments in education and training. As a result, the number of ac-
Safety Manager Workshop
Job Training on Samsung OHSAS
Pre-Safety Manager Training
Training on NEBOSH
Technology Training for Safety
Manager
Training on KOSHA 18001
Certification
Training at FED (Far East District)
Training on (IRCA) OHSAS 18001
Disaster Management Training for
Safety Manager
Training on Safety Management of
Construction Equipments
cidents at overseas sites reduced from 15 in 2010 to 7 in 2011.
Establishment of Diverse Safety Systems
The Company encourages every overseas site to establish autonomous safety inspection systems to strengthen the capacity
of safety managers and attract the interests of all employees on
safety issues. The Trading & Investment Group stirred up morale
of employees by rewarding worksites dedicated to safety management and providing incentives for accomplishing the zero-
On-site Accident Prevention Process
accident goal, while rewarding employees who contributed to
We adopted the Permit to Work system and qualification acqui-
safety management.
sition system for responsible managers to eliminate potential ac-
Our Pingho Factory in China obtained OHSAS 18001, and
cidents at construction sites in advance. The Permit to Work is
Otelinox Factory in Rumania and the Coil Center in Malaysia
a system that allows the works which received prior permission.
reinforced their prevention system and emergency relief equip-
With the system, workers can minimize the potential risks by
ments, respectively. We also repaired our metal production plant
analyzing and identifying risks of each procedure beforehand.
in Myodo, Japan
For tasks with high risk potential, we dispatch qualified task
managers in order to minimize accidents and break a cycle that
Practical Safety and Accident Prevention Activities
may transfer risk to next stages.
Every month, we select articles with safety related topics such
We strive to improve overall work processes which enable all
as safety management standards, seasonal check items, and
potential risks of work to be assessed in ways to run the Permit
accidents from the same industry and send them to the head-
to Work system under the goal of zero-accident construction
quarters and overseas worksites. Among the overseas sites of
sites and foster professional workforces through internal training
the Trading & Investment Group, the Coil Center in Malaysia
programs on specific hazardous work.
holds outdoor fire drill in cooperation with fire stations, and the
Coil Center in Slovakia reorganizes dangerous materials and
CASE STUDY
Zero-accident Management Abroad
conducts a regular safety check on facilities. In Queretaro, we
The Trading & Investment Group is committed to ensuring safety
are strengthening practical activities for preventing accidents, for
of employees at overseas construction sites. To reduce the ac-
example, by conducting tests after providing education on safety
cident rate at sites, we are making multifaceted efforts including
and accidents.
Increasing Supports for Site-specific Health Management
Job and Safety Education at Overseas Sites of
Trade & Investment Group
We protect the health of employees by operating the Health
Care Room.
To enhance the health status of construction workers, prevent occupational disease, and build industry-tailored health care support
system, the Engineering & Construction Group is piloting the Health
Care Room centered on large-scale construction sites. The operation
of the Health Care Room will be expanded to other sites in order to
raise the health standard of employees.
Site
Education Partichours per ipants Major contents
employee
Shunde CC
2
44 Danger predication training, repeat of
safety slogan
Dongguan CC
2
25 Working rules, accident-free campaign
Suzhou CC
2
52 Case study of safety accident,
education of safety rule violators
Tianjin
International
Trading
2
23 Forklift and fire fighting safety
education, theft prevention education
China
Precision
Steel
2
92 Traffic safety education, safety rules
Malaysia CC
2
30 Safe working standards, floor arrangement
Myodo Metal
0.5
Slovak CC
Run on-site Health Care Room
34
Area of Corporate ​​Interest
2
31 Fire extinguisher operation training
17
Fatigue effect at worksites, site
arrangement, safety gymnastics
CP-Inox
0.5
9 Discussion for selecting new safety gloves
Otelinox
1
642 Regular safety education by each factory
Queretaro
2
12 Education on ISO regulations and safety
* As of May 2012
Interview
“We’d like to see Samsung C&T Corporation share its world-class knowhow for enhancing safety and health.”
Key Figures
Supports for Employees’ Medical Checkups
Number of employees who have medical checkups
(persons)
2011
3,975
The issues of safety, health and environmental protection at
2010
3,928
construction sites and overseas offices are directly linked
2009
2,845
to the health and safety of both employees and local residents. Ensuring worker safety is also an important part of
creating a pleasant workplace and sound corporate culture.
Samsung C&T Corporation serves as a role model in Korea’s construction industry when it comes to EHS policy,
infrastructure, and professional human resources. Therefore the company is in the position to share its outstanding
Amount of medical checkup supports
(KRW in millions)
2011
2,768
2010
2,330
2009
1,179
know-how with others in the construction industry and lead
the way toward better protection of employee safety and
health.
Going forward, moreover, the Engineering & Construction
Group of Samsung C&T Corporation, a Korean industry
frontrunner, is tasked with applying its software know-how
and competencies to develop workplace health and safety
training programs for use in developing countries. I am confident that Samsung C&T Corporation will fulfill its responsibility and play a role as a leader for driving shared growth in
the Korean construction industry based on its world-class
Performances in Safety and Health
Converted industrial accident rate Engineering & Construction Group
0.25
2012(Target)
2011
0.22
0.46
2010
0.14
0.41
2009
0.18
0.50
performance and competencies.
● Engineering
& Construction Group ● Industrial average
* Converted industrial accident rate: [(number of accident victimsx10+number of injured
employees)/number of regular workers] x100
LTIR (Lost Time Injury Rate) Engineering & Construction Group
2012(Target)
2011
0.02
0.01
2010
2009
0.04
0.01
* LTIR: (Fatality+Lost Workday Case)/Man-hour X 200,000
Number of Safety Managers
Dong-chun Kim
Head of Construction Accident
Prevention Department, Korea
Occupational Safety and Health
Agency
Classification
(persons)
Building
Civil
HQ
Total
75
95
16
60
-
246
Domestic safety managers
117
124
33
28
371
Overseas safety managers
38
80
28
69
-
12
158
Legal requirement
Plant Housing
* As of the end of August 2012
Employee Health and Accident Prevention
35
Area of
Construction ​​
interest
The Engineering & Construction Group is making a new leap forward. With talented human resources and differentiated technologies, the Company is spreading its wings as a global leader in the industry. We will continue to explore
new markets, improve quality and pursue innovation so as to become a great company evolving into a worthwhile and
respected company.
Seoul City Hall
Focus
1 38P Cultivation Of People With
World-Class Construction
Capabilities
Focus
2 42P
Environment-Friendly
Construction Technologies
Focus
3 46P Management of Energy and
Greenhouse Gas
Focus
4 50P Preservation of Ecosystem
and Biodiversity
Focus 1
Cultivating of People with World-class Construction Capabilities
Company Requirement Background
The company continues to diversify construction project involvement and expand overseas activities. As a result, the need is
growing steadily for highly talented people who have insights in diverse areas, readily accept new ideas, and have the ability to think
creatively. A long-term strategy is required for attracting top talents in the construction field and cultivating them into specialists.
Therefore, Samsung C&T Corporation is dedicated to providing
field and organizational position specific training programs.
The Ideal Employee for the Samsung Engineering &
Construction Group
Open-thinking
Persons with a cooperative
and a creative mind set
paving the way for the
future
Open-hearted
Persons who are ethical
and care about others
Recruiting No Longer a Dull Exercise
B-boy Performance Brings Flair to Job Fair
Open-minded
Persons with a positive
attitude to build a better
future through creativity and
cooperation
The Samsung Engineering & Construction Group continues to expand involvement
in the global construction arena, to include industrial plant projects. As a result, the
need to hire and cultivate topnotch specialists in the field has never been greater.
Building an Advanced Training Infrastructure
Therefore, the company included drama and a b-boys performance in its recruiting
Cultivating Well-rounded Business Leaders
event as a way to attract creative talent with the novel ways of thinking that will help
The Engineering and Construction Group of Samsung C&T
make Samsung Engineering & Construction Group a global leader. The unique en-
Corporation provides an extensive range of training programs
tertainment was well received by the prospective job applicants as they talked with
tailored to the skill levels of individual trainees in order to improve
company representatives.
their technical expertise and cultivate them into technical specialists. Individual courses cover basic theory, problem-solving,
onsite responsiveness and new technology. People working
Identification of Requirements
Key
issue
Other
issue
in the construction field are required to have four categories
Stakeholders
of competencies: (1) the common competencies required of
all Engineering & Construction Group employees, (2) the spe-
Establish strategies for
cultivating construction
talent
Ensure fair work performance
evaluations and compensation
cialized competencies required by each business unit, (3) the
core competencies required to be an exceptional performer at
Customers
Employees
Improve work-related skills
each organizational position; and (4) the global competencies
required for carrying out projects in overseas markets. The levelspecific training programs are designed to nurture experts in
each area of global operations. All training programs cover one
or more of the five following areas: technology, management,
Cultivate world-class
talent in construction
Shareholders
and investors
Business Partners
shared values, global competencies and leadership. The company is dedicated to developing the very best human resources
Local
Communities
by building an advanced learning infrastructure that strengthens
individual competencies and by recruiting the best technical experts as instructors.
38
Area of Construction Interest
Completion of Global Talent Training
Training programs for topnotch construction experts
HRD Process for Nurturing Engineering &
Construction Professionals
The training courses are divided into those required by all employees and those that cover specialized areas. The overall
Specialization of Training Contents (5-Track)
training effort is designed to cultivate experts in four categories
– project managers, technical experts, marketing experts and
Technology
special-skills experts.
Training programs for project managers and
product specialists
Training programs for experts in four categories
Business
Programs to raise project execution capabilities
(MBA, marketing, sales)
Project
Manager
(PM)
· “Project Leader” who supervise the entire value chain
of a project
· Career path and capacity-building in line with the PM
platform
Technical
Expert
· “Experts with exceptional core technologies” applicable
to global business
· Core technology experts training grounded in basic
technologies and CT149
Marketing
Expert
· “New market innovator” with expertise on project
development
· Specialization in specific regions and customers of the
global market
Specialskills
Expert
· “Performance designer and executer” who plans and
supports business activities proactively
· Enhanced competitiveness in administrative affairs,
including planning, project finance and HR
Values
Shared-value program (for new recruits, experienced
new hired and foreign personnel)
Global
Progressive foreign language training program,
centered on technology areas
Leadership
Leadership training program geared toward
the construction industry
Advanced Training System
Build an
e-HRD
system
Adopt a
certification.
system
Hire
world-class
instructors
Establish
self-directed
learning
plans
Provide
on-line
courses
Hiring Women in Management and Strengthening
their Roles
The Samsung C&T Corporation Engineering & Construction
Group is improving the career opportunities for women, who
have been relatively disadvantaged in the construction industry
Cultivate all-around global business leaders and specialists in each field
as a whole. To this end, special programs are now in place that
strengthen women employees’ work capabilities and nurture
them for leadership positions. The Junior Program, which is offered to women who are either assistant managers or have at
Cultivating of People with World-class Construction Capabilities
39
❶
❸
❷
❶ Job Fair of Samsung C&T Corporation ‘Dream Builder’ ❷ Global Talent Education ❸ OJT to Enhance Capabilities in Engineering & Construction
least three years seniority, is designed to strengthen their required
MBA degrees. In addition, other employees are sent to serve as
leadership skills. The Women Executives’ Leadership Forum is
interns in overseas partner firms to strengthen their specialized
also held regularly for all the women in middle management
knowledge and acquire advanced knowhow. They are exposed
throughout the company, helping them to grow into executives.
to construction technologies for core products, along with engi-
The Forum provides an opportunity for companywide synergy
neering, architectural design, project management, construction
to be generated as participants leverage their special strengths
management, CM, and development project marketing.
as women as well as their competencies. The participants may
also build their personal network, elevating intra-organizational
Nurturing Global Construction People with Foreign
communication and teamwork as they share their mind-set and
Language Proficiency
vision for growing their careers as women leaders.
A command of foreign languages is a vital skill for Samsung
C&T Corporation employees who engage in business outside
Cultivating Experts for the Global
Construction Business
Korea. To this end, a wide range of foreign language courses
The company provides special training to executives and employ-
and people engaged in overseas marketing take part in total
ees selected for their exceptional abilities to groom them for per-
immersion foreign language programs to acquire a high degree
forming key roles. Some of the selectees participate in a regional
of proficiency. All employees who want to study conversational
specialist course that lets them conduct business successfully
English with an emphasis on business are welcome to enroll in
in specific markets. In addition, prospective future leaders and
a language course that fits their individual skill level.
young candidates for executive positions are given opportunities to study at top-tier domestic and overseas universities for
40
Area of Construction Interest
are provided to them. Candidates for expatriate assignments
Interview
Key Figures
“Systematic HR Policy and
Training Program the Key to Future
Competitiveness.”
People engaged in the global construction industry can grow and
advance through the leadership development efforts exercised at
the corporate, organizational and individual levels. The company
must provide the right learning environment through its personnel policy, HRD strategies and training system. Meanwhile, the top
management at each company worksite must establish the training
organization and provide the training opportunities so that employees can develop themselves and be cultivated into next-generation
leaders. Individual employees must also work hard in pursuit of
becoming leaders and professionals.
The essence of HRD has been shifting recently away from the central corporate organization and more closely toward strengthening leadership and specialization at the site where the employees
works. Human resources development is not the concern of the
HRD department alone, but rather an important issue affecting the
overall company management process and so must now be included in the key performance index. At the same time, the development of HRD specialists can also be seen as an important factor,
and the company needs to extend this effort not only for in-house
training, but also for cultivating construction industry specialists at
subcontractors along the supply chain. The main contractor should
offer diverse forms of support to subcontractors to help them expand their roles and advance hand-in-hand. In this way, knowhow
is shared with the subcontractors at the construction sites, allowing
the employees of the subcontractors to grow into specialists in their
respective fields. As such, a virtuous circle of consistent cooperation and support should continue.
Number of Participants in the Global Marketing Leader Cultivation Program
(persons)
2010
Vietnam 5, India 2
2011
2012
July to September
Australia 4, USA 6,
Indonesia 2
October to January
November to December
Azerbaijan 3
November to January
Saudi Arabia 2
November to February
China 4, Brazil 2
2010
2011
2012
Colombia 2
Kazakhstan 3,
South Africa 2
April to July
July to September
Ghana 2, Turkey 3
October to December
Turkey 4, Iran 2
Poland 2, the
Philippines 2,
Bangladesh 2,
Malaysia 2
October to January
* 56 persons to 19 countries
New Female Employees and Female Managers
Ratio of new female employees
(%)
28
27
2011
17
2010
20
17
18
2009
Number of female managers
(persons)
67
2011
Professor Song Young-soo
Department of Educational
Technology, Hanyang University
40
2010
2009
34
93
57
51
● Engineering & Construction Group ● The Company
Cultivating of People with World-class Construction Capabilities
41
Focus 2
Environment-friendly Construction Technologies
Company Requirement Background
The construction industry has impacts on the global environment as it uses amounts of energy and discharge wastes in
the processes of material use, construction and operation. To
ensure healthy and comfortable living conditions with the minimization of the impact on the global environment, it is essential
for us to practice green purchasing, boost energy efficiency and
develop renewable energy. We also need eco-friendly technologies to improve housing performances. With the recognition that
eco-friendly technologies are core engines for future growth of
the industry, Samsung C&T Corporation established the Green
Technology Team spearheading the development of eco-friendly technologies.
Eco-friendly Construction Technologies for the Future
Use of Eco-friendly Building Materials
Building roads, ports and houses contributes to a better and
more comfortable living conditions. but inevitably requires a
great deal of resources. Samsung C&T Corporation strives to
Providing Total Energy Solutions
consume fewer natural resources, reduce greenhouse gas
K-MEG, Korean Smart Grid
using recycled or eco-friendly materials.
emissions, minimize the generation of harmful substances by
Samsung C&T Corporation is participating in the “Korea Micro Energy Grid (K-MEG)”
project as a principal leading organization. K-MEG aims to develop new total energy
Introduction of New Technology
solutions which integrate various energy sources including heat, electricity, gas and
Eco-friendly GB
SLAB System
With green balls (GB) made of biomass plastic
inserted between top and bottom reinforcement of
a slab, the weight of concrete has been reduced by
30%, and the structure, vibration, and sound/heat
insulation performance of a building have improved.
Less consumption of concrete and use of ecofriendly plastic materials contributed to reducing CO2
emissions and the amount of waste up to 15%.
Samsung C&T
Green Building
Material
Procurement
and
Implementation
Guide for
International
green building
certification
system
Green Technology Institute has developed the guide
in order to cope with the different green building
certification systems among countries and improve
the overseas construction competitiveness and
secure the competency for green construction
management. This guide provided Green materials
procurement, green materials supplier D/B and
green construction activity for eight certification
systems(LEED, ESTIDAMA, GSAS, LEED-India,
Green Mark,3-Star, Green Star, AQUA)in six regions
(Middle East, India, Singapore, China, Australia and
Brazil). With this guide, we could minimize the risks of
possible reconstruction or delay when we construct
green buildings abroad.
etc. with the cutting-edge IT for energy saving, responding to energy production,
supply and consumption. The solutions and technologies developed thru K-MEG
will allow us to construct zero energy buildings and energy self-sufficient cities. Samsung C&T Corporation and 55 other businesses, academic and research institutes
are participating in K-MEG for its successful completion. As required by the project,
Samsung C&T Corporation is to implement and validate performance of developed
building energy efficient solutions and business models at local as well as international demonstration sites.
Identification of Issues
Key
issue
Other
issue
Stakeholders
Securing environment-friendly
construction technologies
Promoting environment-friendly
urban development projects
Customers
Employees
Enhancing capabilities to meet
environment-friendly certifications
Reduction of Greenhouse Gas Emissions through LCCO2
Assessment Program
Environment-friendly
construction technologies
Shareholders
and investors
Business Partners
Local
Communities
We strive to cut CO2 emissions from whole construction processes. In 2009 and 2011, we developed the Life Cycle CO2
Assessment Programs for houses and buildings respectively to
calculate the amount of CO2 emissions throughout the stages
of construction in advance. With this program, we devised various ways to reduce CO2 emissions and applied the best way to
the sites. For example, the Gongdeok 5th Raemian apartment
42
Area of Construction Interest
site set the target of cutting back on 2,823 tonnes of CO2 by
Green Building Certification
lowering the amount of waste, material loss rate, energy use,
Green building certifications are measurement tools for evalu-
and also successfully reduced 95% of emissions compared to
ation of environmental performance from a whole building per-
the target amount.
spective over a building life cycle, providing a definitive standard
for building clients. Samsung C&T Corporation understand the
importance of sustainable construction, and contribute to the ef-
Performances by Applying the LCCO2 Evaluation
CO2
emissions
(ton)
Reduction
method
Classification
Using
materials to
reduce CO2
emissions
Before
application
Conventional
concrete
2,491
After
application
Fly-ash
concrete
2,016
Reducing
material loss
rate
Before
application
Rebar loss rate
(4%)
845
After
application
Rebar loss rate
(1%)
281
forts of improving environmental and sustainable conditions of
CO2
reduction
(ton)
475
Reduction
rate
(%)
19%
fessionals like LEED AP number is 62 out of 445 LEED APs in
Korea. By leading efforts for saving energy, reducing greenhouse
gas, meeting the environmental pollution standards, Samsung
C&T Corporation is becoming a global leader in construction
who makes the world more sustainable.
564
67%
Green Infrastructure Technology for Restoration
Development of Eco-friendly Facility and Technology
Other reduc- Contents
tion methods
Applying PC
methods
buildings with green building certifications. Green building pro-
For sustainable growth in harmony with nature, the Engineer-
Reducing CO2 emissions by using less cast formworks,
equipments and labor forces
Construction Reducing fossil fuel consumption and material
management transportations by efficient operation of electricity and
at sites
equipments
ing & Construction Group strives to develop environmental infrastructure for water, wastewater treatment and technologies
for restoration of soil, underground water and ecosystems. We
have developed our own Samsung wastewater treatment technology allowing us to reduce energy consumption by 30% and
Improving Quality of Life with Green Building
Technology
Building Energy Efficiency
Buildings use 30~40% of total energy consumption of the world.
The Engineering & Construction Group takes a variety of measures to reduce energy consumption of buildings and realize the
site area by 20%, respectively.
Samsung wastewater treatment technology
Anoxic tank
Sifting membrane tank
Net Zero Energy Building (NZEB) strategy. We have developed
Stabilization tank
our own optimized NZEB Model through the energy performance
assessment and technologies for energy-efficient exterior, mechanical and electrical systems and renewable energy.
Sludge pre-treatment
Anaerobic digestion tank
Sludge disposal
Net Zero Energy Building Prototype
Renewable
energy zone
Solar power generation
Office
Building integrated solar
power generation
Soil Remediation
The Engineering & Construction Group has studied the ways
to clean up pollution since 1995 and now has leading technologies and stands on top in terms of pollution remediation.
Based on these experiences, we succeeded in win the contract
of Yongsan remediation project, which is the largest remedia-
Wind power generation
tion project in Korea. We have developed innovative remediation technologies for heavy metals and petroleum contaminated
site. Based upon such technologies, we will lay the foundation
for our overseas projects.
Environment-friendly Construction Technologies
43
Case Stories of Green Building Technology
Application
Head Office Building of Samsung C&T Corporation
Tesco Training Institute
Seoul, has acquired the gold grade in the US LEED-EBOM
The Asian Leadership Training Institute of a global ccompany,
(Existing Building Operation & Maintenance) evaluating eco-
Tesco, was designed to be a zero carbon building. The Engi-
friendliness of buildings. The building, completed in 2008, has
neering & Construction Group has conducted the whole con-
the Building Energy Management System (BEMS) which moni-
struction processes from consulting to design, building and
tors and analyzes the amount of energy use, and finds an area
maintenance. Based on thorough analysis, 27 cost-efficient
where energy is excessively consumed for improvement. With
green technologies have been applied to this building. The
optimal operation of air conditioning systems and improvement
training institute consumes 38% less energy than other train-
of system efficiency, the net energy consumption has been re-
ing institutes constructed by the Group, and is expected to cut
duced by 12% from 0.385Gcal/m² in its first year of 2008 to
approximately KRW367 million of annual spending in energy.
0.340Gcal/m² in 2011.
The head office of Samsung C&T Corporation in Seocho-dong,
Additionally, overall CO2 emissions have been reduced by 29%.
In particular, the use of photovoltaic power contributes to zero
Production Lines of Samsung Electronics in Giheung and
carbon emissions from the building operation.
Hwaseong
The Tesco Training Institute equipped with our own green tech-
The Engineering & Construction Group builds and maintains
nologies obtained the highest green building grade. We are en-
major production facilities of Samsung affiliate companies.
hancing our competitiveness in the global green building market
We have developed and applied green energy technologies
with our green solutions such as zero carbon technology.
from the stage of construction planning to design, construction and maintenance. In 2010 when we built the production
Technologies Applied to Tesco Training Institute
lines of Samsung Electronics in Giheung and Hwaseong, we
introduced new energy-saving technologies and provided en-
Passive Design
Active System
Water Efficiency
Enhanced
insulation
Inverter fan &
pump
Solar power
generation
Waterless urinal
system
High
performance glass
LED lighting
Solar-powered
water heating
Reuse of heavy
water
Natural ventilation
BEMS
Reuse of rain
water
Green roof system
High performance
power board
Geothermal
cooling and
heating
Cool tube
High performance
motor
EHP
Tesco Training Center
44
Renewable Energy
Area of Construction Interest
Water-saving
washbowl
ergy diagnosis consulting. Problems found in operations have
been improved as well. In 2012, we succeeded in optimizing
the refrigeration system, thereby cutting 36% of annual energy
consumption compared to other production lines.
Based on such achievements, we will make continuous efforts
to develop and distribute our green energy technologies in construction, and to explore new green building markets so as to
promote eco-friendly construction technologies and generate
new sources of profit.
Interview
Key Figures
“Samsung C&T Corporation’s
commitment to green building will
contribute greatly to the development
of the Korean construction industry.”
Certified Global Green Building Project Directory
Samsung C&T Corporation since 2010 has collaborated on
green building education with USGBC and first implement-
Rating
System
Project Name
Country
version
Cert Level
ed USGBC education services internally within its organi-
LEED
KOREA Samsung Green
Tomorrow
Korea
NC v.2.2
Platinum
EBOM 2009
Gold
NRB v.3
Platinum
zation and then in 2012, became a USGBC licensed edu-
Samsung C&T Corporation Korea
HQ Building
cation partner. I believe that the steps that Samsung C&T
Corporation has taken to promote eco-friendly construction
Green Mark Connexion
Singapore
have been very positive for Korea and the region. In order to
continue to further strengthen Samsung’s eco-friendly construction capabilities, it would be beneficial to continue to
Certified Korea Green Building Project Directory
drive the concept and understanding of sustainability and
green buildings. In addition, in order to continue to promote
Certification Status
better green construction activities, I believe that it would
Pre-certification
be mutually beneficial for Samsung and the general public
Actual Certification
to have active participation and interaction.
Total
2009
2010
2011
Jul. 2012
13
17
9
14
4
17
6
5
17
34
15
19
Ultimately, the outreach would create encourage other
organizations to pursue more eco-friendly business practices. Furthermore, if Samsung’s sustainability report be-
Development of Environment-friendly Technologies
(KRW in billions)
gins to address the often overlooked benefits that come
1.42
with better building construction practices and procedures,
2012 (Plan)
such as green building’s impact on the health, safety and
2011
1.0
productivity of its employees and other users, it would
2010
1.19
17.8%
19.4%
22.6%
8.0
5.16
5.26
be an opportunity to exhibit Samsung C&T Corporation’s
willingness to lead the eco-friendly industry.
● Investments
in environment-friendly development tasks
● Total investments in development tasks
● Ratio of investments in environment-friendly development tasks (%)
Jennivine Kwan
Vice President, USGBC
(The U.S. Green Building Council)
Environment-friendly Construction Technologies
45
Focus 3
Management of Energy and Greenhouse Gas
Company Requirement Background
Climate change is no longer a far-away problem. We are witnessing the signs of global warming, and governments are taking
stronger measures under international pacts including the Climate
Change Convention and environmental regulations such as the
carbon reduction target system. Domestic and overseas clients
now call for better carbon emissions controls and eco-friendly
products.
We embrace and preemptively respond to such changes in the
business environment to save energy and cut carbon emissions.
In addition, we forecast the impact of climate change on our business so as to turn the crisis into a new business opportunity and
develop green technologies.
Greenhouse Gas Emission Control
Company-wide Greenhouse Gas Management System
The Engineering & Construction Group is the first domestic construction company developing its own integrated environmental
performance management system, through which the company
has systematically managed quantitative and qualitative environmental performance data of headquarters and all affiliate sites.
Greenhouse gas emissions from headquarters and affiliate sites
Expanding Our Green Growth Model
are measured and analyzed through the system. Years of op-
Supports for Green Growth of Developing Countries
eration experience and personnel training have helped improve
We have taken part in the Global Green Growth Forum (3GF) where experts from pub-
the reliability of the data entry. The net emissions of the com-
lic and private sectors gather to accelerate the transition to green economy which
pany is calculated based on this data, and the result is verified
is referred to as the second industrial revolution. Representing the private sector,
by a third party specialized in this area.
Samsung C&T Corporation is acting as a bridge in coordinating policies, funds, busi-
Now we are preparing more practical ways to reduce carbon
ness and technologies for green growth. The company also provides advice for the
emissions with the goal of applying to construction sites from
implementation strategies of the initiatives as an advisor and official partner to the
forum. In addition, for the sake of systemizing green growth and providing developing countries with growth model befitting their conditions, we are promoting a green
growth model on the private level in close cooperation with the Global Green Growth
Institute (GGGI), which was established in 2010.
2012.
Focusing on Meeting the Reduction Target
The Engineering & Construction Group is all set to speed up
its drive to achieve the greenhouse gas reduction target for the
Identification of Issues
Stakeholders
industry. We drew up a mid and long term road map to meet
the government target of reducing emissions by 7.1% below
Key
issue
Other
issue
Management of direct and
indirect greenhouse gas emissions
Efficient energy use
(building management,
logistics, and productions)
the BAU baseline by 2020. To this end, the company is doing
its best to see substantial results with its own annual target. We
Customers
Employees
Greenhouse gas control in
construction and building
management
plan to reduce greenhouse gas emissions by 4%, compared to
the level of 2009, to 195,175 tCO2 by 2015. Various measures
are now being taken internally to reach the target. Starting from
2010, we have set specific reduction plans for six years until
the first target year 2015. As of 2012, we are in the third year.
Energy and greenhouse
gas management
46
Area of Construction Interest
Shareholders
and investors
Business Partners
The total amount of reduction for this period should be 41,425
tCO2 to reach the final goal of 195,175 tCO2. As of 2011, we
Local
Communities
reduced 9,554 tCO2 of emissions which is about 23% of the
total target amount.
Reducing Greenhouse Gas Emissions at Sites
Energy Saving at Overseas Sites
At the construction sites, the ‘3-STOP’ campaign – stop idling,
The Engineering & Construction Group has promoted green
braking and accelerating construction equipment – is carried
construction at overseas sites based on accumulated experi-
out for energy saving. The sites have reduced standby and
ences in Korea and made substantial achievements. In 2011, a
wasted energy by adopting the user-pay-principle. They also set
greenhouse gas emissions measurement and control program
voluntary targets to reduce energy consumption and keep track
was introduced to the Singapore site for the first time as a Ko-
of the results. Employees at every site are encouraged to use
rean company. As such, we are taking the lead in green con-
mass transit and bicycles, consume less energy in dormitories,
struction in the global market.
limit heating and cooling temperatures inside offices and turn off
the lights during lunch hours.
Reducing Energy Consumption in Singapore
Our construction sites in Singapore are required to use fluorescent light, air conditioner, refrigerator, printer, fax and other of-
❶
fice appliances certified by the Singapore energy label or green
label. Several sites are saving energy by building a field office in
a location with more day lighting and lowering the use of fluorescent light to maintain high illuminance with less number of
lamps. Also, they are very active in using renewable energy. For
example, automatic noise measurement devices installed at the
sites in Singapore are mostly powered by photovoltaic energy.
We have applied the Air Raising Technique to the LNG terminal site in Singapore for the first time. Lifting the upper cover of
the LNG tank with air pressure has lowered the use of energy
dramatically as tower cranes or other equipment are no longer
❷
necessary. Thanks to various activities and technological development, we obtained the highest ‘Star’ grade of the Green &
Gracious Builder Award (GGBA) from the Building & Construction Authority of the Singapore government.
❸
❶ Obtaining the GGBA Star Rating ❷ Award Ceremony for Carbon Disclosure Project by CDP Korea ❸ CTO's Participation in the 3GF (Global Green Growth Forum) Discussion
Management of Energy and Greenhouse Gas
47
Leading Company in the Carbon Disclosure Project
Samsung C&T Corporation has established an advanced management system to reduce energy consumption and carbon
Interview
emissions, developed energy saving technologies and promoted renewable energy projects. In recognition of these efforts,
the internationally renowned Carbon Disclosure Project (CDP)
Korea chose Samsung C&T Corporation as the best company
in the field of industrial products in 2011. We also joined the
Global Leader’s Club in 2012. The result of the CDP assess-
“Accounting for and valuing
natural capital is fundamental to
building economic stability and
prosperity.”
ment is disclosed to project financing companies, financial
institutions assessing corporate governance and major clients
The Carbon Disclosure Project (CDP) exists to prevent dan-
globally for their reference.
gerous climate change, protect our natural resources and
create long-term prosperity through the efficient allocation
of capital. Samsung C&T Corporation has used the CDP
system to disclose vital climate information to investors and
to help measure and manage their climate impact.
Samsung C&T Corporation already manages carbon emissions effectively. Building a greenhouse gas (GHG) inventory and continuing to disclose GHG emissions and reduction
activities through CDP, will significantly aid Samsung C&T
Corporation in its efforts to improve its impact on the envi-
CASE STUDY
Case Study on Cost Saving with Green Technology
ronment and to identify opportunities for improving energy
Advanced green technology mitigates environmental impacts
and saves social costs.
gas emissions from financial returns have the potential for
The Raemian East Palace is the prominent green apartment constructed by the Samsung Engineering & Construction Group with its
‘Green Tomorrow’ technology. Natural energy is used to power public
facilities of the apartment and its advanced energy management system
contributes to preserving environmental and save social costs. The
photovoltaic system powers waterscape facilities such as the artificial
waterfall, saving KRW10.8 million of electricity cost every year. The geothermal system supplies 100% of energy required for air conditioning
and heating of the fitness club located in the apartment’s community
center, saving KRW20 million annually.
The geothermal energy is used for a snow-melting system as well. The
system helps remove snow on the road and prevent car accidents
caused by slippery roads. For the lighting of underground parking lots
operating 24hr, daylight ducts and reflection mirrors have been installed
to use less energy and save security costs.
The Raemian Energy Management System (REMS) developed by the
Engineering & Construction Group is designed to check electricity, gas
and water consumptions and CO2 emissions in real time so as to encourage residents to save energy efficiently.
enue generation and a more resilient future. Samsung C&T
Raemian East Palace
48
Area of Construction Interest
efficiency. Companies that work to decouple greenhouse
both short and long-term cost savings, sustainable revCorporation’s diversification of energy sources to more
renewable ones will go a long way in helping Samsung to
achieve this; this is also a clever move that will help to build
resilience for the Samsung business by making the company less dependent on finite sources of energy and less
exposed to fuel price volatility.
Paul Dickinson
Executive Chairman, CDP
(Carbon Disclosure Project)
Key Figures
Greenhouse gas emissions
(tCO₂e)
● Scope
2011
1 ● Scope 2 ● Scope 3
Energy consumption
LPG
2011
2010
2009
28,340
37,808
(GJ)
4,729
5,186
LPG
1,275
177,081
Total: 243,229
2010
29,045
33,909
Total: 252,924
35,550
158,438
Total: 212,929
Greenhouse gas emissions control target
2012
(Target)
Greenhouse gas emissions at domestic and overseas in 2011
Domestic 227,047 (tCO₂e)
(%)
93.3
LNG
57,265
288,747
260,244
272,849
2011
2010
2009
Gasoline
18,941
Overseas 16,182 (tCO₂e)
(%)
6.7
95,099
113,322
Electricity
189,970
2009
City Gas
2011
2010
2009
236,787
2011
2010
2009
77,553
56,548
43,094
Diesel
2,398,848
2,649,851
2,207,349
2011
2010
2009
Kerosene
2011
2010
2009
78,864
59,865
28,380
Jet Fuel
2011
2010
2009
113,057
64,087
38,290
Total
2011
2010
2009
3,056,897
3,209,103
2,648,503
Energy consumption control target
2012
(Target)
2,859,320
Management of Energy and Greenhouse Gas
49
Focus 4
Preservation of Ecosystems and Biodiversity
Company Requirement Background
Biodiversity is the most important value of life that is the foundation for all lives and maintains an ecological rhythm. According
to the International Union for Conservation of Nature and Natural
Resources (IUCN), there are more than 20 thousand species of
endangered plants and animals worldwide, and 25% of all species on Earth is forecasted to disappear in 50 years. Against
this backdrop, we need to come up with measures to protect
the endangered species and ecosystems, minimize the impact
on the environment and ensure biodiversity at the national level.
Samsung C&T Corporation makes continuous efforts to preserve
and restore the ecosystem by carrying out environmental impact
assessments around construction sites and minimizing impacts
on environment.
Biodiversity Protection System
Protection and Consideration of Biodiversity
When a preliminary assessment of a site shows the possibil-
Contributing to Preserving and Restoring
Ecological Resources
Chungcheong
-do
ity of impact on endangered species or other significant plants
and animals, we take a careful approach from the initial step of
Construction of the Ecorium of National Ecological Institute
planning and design of construction. To minimize the impact on
The Nagoya Protocol on Access to Genetic Resources and the Fair
environment and protect biodiversity, we design a building in an
and Equitable Sharing of Benefits Arising from their Utilization was
eco-friendly way and try not to destroy the habitats of wild life.
adopted in 2010. In line with the protocol, the National Institute of
At some sites, we include replacement habitats for wild life in our
Biological Resources (NIBR) and the National Ecological Institute
design and pay close attention to maintaining such habitats dur-
(NEI) of Korea have discovered approximately 100,000 genetic resources in the country and established a database to be used proactively. The NEI,
established under this vision, prioritizes on the future development in harmony with
nature and ecology. The Ecological Research Center, Ecorium, and Wetland Park are
constructed in the institute. The Engineering & Construction Group is in charge of
ing and after the construction. Furthermore, each site conducts
a preliminary survey to identify the existence of endangered
species, environmental impact, etc. In case special caution is
required, we designate the site as a special management zone
building the Ecorium, in which we will create an environment that resembles a tropical
to be protected. When a building has to be under construction
rainforest optimal for the growth of plants. We will also install an artifical rainfall and
inside the water conservation zone, we classify the site into the
fog systems to spray showers and insulate exhibit halls by allowing a curtain wall to
‘Grade A Special Management Zone’ to ensure systematic and
carry heated water. This is the first case of using the mullion heater system in Korea.
constant care for the environment.
Identification of Issues
Stakeholders
Enhanced Education for the Protection of Wild Life
Other
issue
Establishment and management of environmental
management policies
to preemptively prevent construction workers from poaching animals or destroying their habitats. In addition, soundproof walls
Customers
Employees
Area of Construction Interest
are erected around the sites to minimize the impact of construction noises on wild life.
Environmental impact
assessment
Preservation of ecosystem
and biodiversity
50
The education for the protection of wild life at sites is tightened
Preservation and management
of biodiversity
Key
issue
Shareholders
and investors
Business Partners
Local
Communities
Kyounggi
-do
Preservation of Ecosystems around Construction Sites
cofferdam, but to adopt a semi-shield method that does not af-
Eco-friendly Shihwa Lake
fect the environment order to prevent ground sinking, pollution
Mullets were found dead en masse in the upstream of main wa-
and destruction of a riparian ecosystem.
ter way into the Shihwa Industrial Complex. The cause analysis
shows that waste water discharged from the complex lowered
the dissolved oxygen content in the water and it led to the death
of mullets. As a preventive measure, we established the facility
that blocks mullets from flowing into the main water way connected to the complex. In the meantime, the nests of Eurasian
oystercatcher (natural monument no. 326 – second-ranked endangered species) and eagle-owl (natural monument no. 324
– second-ranked endangered species) were found during the
construction of Shihwa Multi Techno Valley. Subsequently, we
❶
halted the construction until the birds hatched their eggs and
migrated to another location with limited to no human access.
Muju Taekwondo Park with Excellent Ecosystems
Jeolla
-do
In 2010, we carried out a springtime investigation to come up
with measures for the protection of Cypripedium living at the site
of Muju Taekwondo Park, and took preliminary actions such as
transplanting the endangered plant, changing our design, erecting a fence for protection and marking a ‘no entry’ line boarder.
We have pushed forward voluntary environment improvement
projects to minimize our environmental impact. As a result, in
❷
2011, the site of Muju Taekwondo Part received an award from
the Ministry of Environment for its ‘Environmental Impact Regulatory Reform Performance and Exemplary Follow-up Management’.
Yeongju Dam with Beautiful Sandbank
When we constructed Yeongju Dam around Naeseong Stream
Gyeongsang
-do
in Gyeongsangbuk-do, we found that the environmentally valuable and beautiful sandbank could be lost due to the dam construction. Accordingly, we built a retention reservoir and flushing
facilities to ensure that high quality sand is discharged continu-
❸
ously to the downstream and at the same time the sufficient
amount of water flow is secured after the dam is constructed.
To guarantee uninterrupted mobility of fish, the iceharbor-type
fishway was installed as well.
Beautiful Gagok Stream, Home to Sweet Fish
And Salmon
Gangwon
-do
Gagok Stream, home to sweet fish and salmon, is a second
degree local stream with the first grade water quality. The LNG
pipelines connecting Uljin and Sokcho constructed by the Engineering & Construction Group cut across the stream, causing
concerns over its environmental impact and complaints from
nearby residents. In response, we decided not to construct a
❶ Nest of Eurasian Oystercatcher in Sihwa Lake
❷ Cypripedium of Muju Taekwondo Park
❸ Retention Reservoir of Yeongju Dam
Preservation of Ecosystem and Biodiversity
51
Interview
“I expect you to play a leading role
in ensuring ‘eco-wellbeing’ as an
eco-friendly company.”
Key Figures
Distribution Map of Endangered Species
Region
2
We often forget the enormous benefits that biodiversity pro-
3
vides. Biodiversity is the basis for ecosystems that enable
people to lead healthy, safe and happy lives in a sustainable
manner. However, climate change and the subsequent de-
4
struction of ecosystems have resulted in biodiversity loss.
At this critical juncture, we should preserve and protect our
land through various efforts such as anticipating possible
changes to ecosystems, restoring those that are damaged,
and creating a better overall environment based on such
restoration.
5
6
7
In this regard, I hope that Samsung C&T Corporation will
lead the “Eco Wellbeing” trend which aims to protect biodiversity for “balanced growth of the environment, economy
and society in the interest of sustainable development.”
The company will be required to raise its value as an ecofriendly company by finding new business opportunities in
8
the environmental industry and making a mid-/long-term
investment in environment protection to fulfill its corporate
9
social responsibility.
10
11
12
13
14
15
Chang-Seok Lee
Head of Steering Committee
for Establishment of National
Ecological Institute Ministry of
Environment
52
Area of Construction Interest
16
17
Protected Species
Egretta eulophotes
Grade
1st-ranked endangered wild
animals and plants
Gyeonggi-do
Eurasian Oystercatcher,
2nd-ranked endangered wild
Eurasian eagle owl
animals and plants
Korean golden frog
2nd-ranked endangered wild
Pyeongtaek-si,
animals and plants
Gyeonggi-do
Otter
1st-ranked endangered wild
Yeoju-gun,
animals and plants
Gyeonggi-do
Polygonatum stenophyllum max,
2nd-ranked endangered wild
Gobiobotia macrocephala
animals and plants
Black-faced spoonbill
1st-ranked endangered wild
Yeonsu-gu,
animals and plants
Incheon
Eurasian Oystercatcher,
2nd-ranked endangered wild
Saunders's Gull,
animals and plants
Eurasian Buzzard
Poaching-prohibited wild
animals
Kestrel
Poaching-prohibited wild
Jeongeup-si,
animals
Jeollabuk-do
Cypripedium japonicum
1st-ranked endangered wild
Muju-gun,
animals and plants
Jeollabuk-do
2nd-ranked endangered wild
Soft coral habitat
S
eoguipo-si,
Dendrophyllia arbuscular Van der Horst, animals and plants
Jeju-do
Plexauroides reticulata,
Plexauroides complexa Nutting,
Dendronephthya suensoni,
Dendronephthya mollis,
Dendronephthya putteri Kijkenthal,
Dendronephthya castanea Utinomi,
Euplexaura crassa Kijkenthal,
Verrucella stellata Nutting, Antipathes
japonica, Antipathes lata
Otter
1st-ranked endangered wild
Inje-gun,
animals and plants
Gangwon-do
Korean ratsnake, Leopard cat
2nd-ranked endangered wild
animals and plants
1st-ranked endangered wild
ongcheon-gun, Otter
H
animals and plants
Gangwon-do
Goat
1st-ranked endangered wild
Samcheok-si,
animals and plants
Gangwon-do
Otter
1st-ranked endangered wild
Andong-si,
animals and plants
Gyeongsangbuk-do
Goshawk, Grey frog hawk
2nd-ranked endangered wild
hilgok-gun,
C
animals and plants
Gyeongsangbuk-do
Kestrel
Poaching-prohibited wild
animals
1st-ranked endangered wild
heongsong-gun, Otter
C
animals and plants
Gyeongsangbuk-do
Charadrius placidus,
2nd-ranked endangered wild
animals and plants
Korean buzzard
Poaching-prohibited wild
animals
Otter
1st-ranked endangered wild
ndong-si,
A
animals and plants
Gyeongsangbuk-do
Leopard cat
2nd-ranked endangered wild
animals and plants
Otter, Gobiobotia nakdongensis
1st-ranked endangered wild
eongju-si,
Y
animals and plants
Gyeongsangbuk-do
Leopard cat, Black-headed stork,
2nd-ranked endangered wild
Fareastern brook lamprey,
animals and plants
Kestrel, Korean buzzard
Poaching-prohibited wild
animals
Otter, Hawk
1st-ranked endangered wild
Gimhae-si,
animals and plants
Gyeongsangnam-do
Leopard cat, Whooper swan,
2nd-ranked endangered wild
Nannophya pygmaea, Falco subbuteo animals and plants
Korean buzzard, Kestrel
Poaching-prohibited wild
animals
Euryale ferox
2nd-ranked endangered wild
Saha-gu, Busan
animals and plants
nsan-si, 1 A
Worksite
Worksite
Han River Restoration
Project Section 4
Jinwi River Maintenance Project
East Hongcheon-Yangyang Road Project Section 13
East Hongcheon-Yangyang Road Project Section 7
Taebaek-Miro Road Project
Sihwa MTV Project Section 4
Incheon New Port Container
Terminal Project Section 2
Otter
Korean
golden frog
Korean
ratsnake
Larus
saundersi
8
1
9
4
10
Worksite
3
2
Gyori-Susang Road Project
Gyori-Susang Road Project
Andong-Imha Dam Transition Canal Project
Yeongju Multipurpose Dam Project
14
Yeongju Dam Railway Relocation Project
15
Sangju-Yeongdeok Road Project Section 13
11
13
12
Goshawk
Grey frog
hawk
Worksite
Honam High-speed
Railway Project Section 4-1
Worksite
5
6
Muju Taekwondo Park Project
Busan Beltway Project Section 3
16
Kestrel
17
Hanrim-Saengrim Road Project
Nakdong River Drainage Gate Project
Cypripedium
japonicum
Euryale ferox
salisbury
7
Nannophya
pygmaea
Worksite
Jeju Naval Base
Project Section 1
Antipathes
lata
Verrucella
stellata
Preservation of Ecosystem and Biodiversity
53
Area of
Trading
Interest
Samsung C&T Corporation Trading & Investment Group has led the development of the Korean economy
over the past years and now it is moving beyond Korea to become a global trading company.
We will leapfrog into one of global top 10 trading companies through restless innovation and efficient use of
managerial resources based on the four core capabilities - integrated global risk management system, capabilities in
logistics and finance businesses, cultivating talented employees who will
lead global business and establishing global operation system.
LNG Terminal in Manzanillo, Mexico
Insight
1 56P Recruitment and Cultivation
of People with World-class
Trading Capabilities
Insight
2 58P
Respecting and
Understanding Local Culture
Insight
3 60P Securing Global
Competitiveness
Insight 1
Recruitment and Cultivation of People with World-class Trading Capabilities
Company Requirement Background
Amid the intensifying global competition, it is a priority for us to
strengthen the ability to integrate diverse functions and organizations and to hire world-class talent from all over the world in
order to capture new business opportunities turning them into
tangible results. The Trading & Investment Group aims to lead
the future business by developing employees and seeking talent home and abroad.
Cultivation of People with World-class
Trading Capabilities
The Trading & Investment Group emphasizes business ethics
and creative challenge as basis in fostering global talent. Thus
we aim to secure professional human resources who has unlimited creativeness and the ability to produce tangible business
results on the global stage. To that end, there is no discrimination based on gender and nationality in our recruitment activities,
and professional quality and contribution potential to the organization are preferentially considered in hiring new employees.
The Ideal Employee for the Trading & Investment Group
Securing Talent for Strengthening Competitiveness
Compliance with basic principles
2011 Global Internship Program
The Trading & Investment Group is dedicated to hiring and developing employees
Creativity and challenge
who can challenge existing borders in business and territory with unlimited creative-
Cooperative spirit and synthesizing ability
ness. We recruit human resources both in Korea and abroad in order to secure the
Professionalism and global sense
best quality employees with global competitiveness, and conduct a wide range of
education programs for employees to sharpen their competitive edge. And a lot of
employees are dispatched to foreign countries so that they can build global networks
Employees who Imagine and Implement Their Ideas
and grow as leaders in our future businesses.
Compliance with Basics and Principle
Persons who put into action corporate ethics,
management philosophy, and compliance based on
respect for people, morality, and honesty.
Identification of Issues
Key
issue
Development of global talents for
trading and investment business
Other
issue
Development of tailored human
resource cultivation systems
Stakeholders
Creativity and challenge
Persons who develop new businesses and lead
changes and innovation based on passion and
creativeness.
Customers
Employees
Cooperation mindset and Integration
Persons who maximize business synergy effect
through cooperation and create value through integrating diverse functions and organizations
Professionalism and ability to work globally
Recruit and cultivation of
people with world-class
trading capabilities
56
Area of Trading ​​Interest
Shareholders
and investors
Business Partners
Local
Communities
Persons who fulfill their potential on the global stage
based on professional knowledge and knowhow as
well as understanding on culture of various countries.
Key Figures
Overseas Local Employment (2011)
Engineering & Construction Group
469
469
590
(persons)
33
76
1,168
Trading & Investment Group
26
287 86
● Middle East
462
63
● Asia & Oceania
● Americas
● Other Regions
Interview
Completion of the Global Assignee (GA) Course
Strengthening Professional Capabilities by Field
The cultivation of internal employees is led by our own employee
development systems tailored to position and function. We also
operate professional classes taught by experts from home and
abroad and the CLO (Creative Learning Organization).
“We must step up human
resources development at
overseas branches.”
I completed an internship at corporate headquarters as
a member of the 3rd GAs (Global Assignee) program
in 2011. GA is designed to strengthen the competitiveness of Samsung C&T Corporation employees work-
Securing and Nurturing Experts with Global
ing outside Korea. GA selectees are dispatched from
Competitiveness
The Trading & Investment Group strives to hire and train talented
an overseas office to the headquarters to work and
receive training on the management philosophy, busi-
people from foreign countries to lead our local businesses as
ness models, and strategies of the company. I hope the
well as nurturing Korean employees. To this end, the global in-
company will provide more opportunities for employ-
ternship program is being operated.
ees working in its global operations to share the vision
Also, we are operating the GA (Global Assignee) and GT (Global
and direction put forth at headquarters. I believe it will
Trainee) systems, under which selected people to be nurtured
promote communication and integration between the
as team managers and branch heads are dispatched from their
headquarters and branch operations.
original workplaces to the headquarters and other operations
to expose them to various education, tasks and experience.
Futhermore, we are continuing our existing programs for nurturing local experts and SDP (Short-term Dispatch Program) in
strategic markets.
Human Resource Development System the Trading & Investment Group
SVP
SLP
SGP
SEP
Samsung
Value
Program
Samsung
Leadership
Program
Samsung
Global
Program
Samsung C&T
Corporation’s
Expert
Program
Jitendra Gupta
Manager of Mumbai
Branch, India
Recruitment and Cultivation of People with World-class Trading Capabilities
57
Insight 2
Respecting and Understanding Local Culture
Company Requirement Background
A social norm is different from country to country depending on
their race, religion, and culture. A business may fail if it applies
the same marketing practice that it uses in its own country without understanding situations of a specific local area. Samsung
C&T Corporation is engaging in a variety of business activities
around the world. We acknowledge the importance of understanding the local culture as one of the key elements for making
a real inroad into a country along with building local networks
and fostering local experts.
Understanding Local Management Activities
Business environments in overseas markets where the Trading
& Investment Group has entered are divers in terms of culture,
religion and living conditions. Bearing in mind, we strive to understand and adjust to local situations instead of sticking to the
same business methods we use in Korea. To better understand the local environment, we increase the employment of
local people, who will play the role of reducing cultural gaps and
facilitating communication between us and local stakeholders.
We also pay attention to the difference of norms and regulations
for each local area.
Understanding Local Residents and Local Culture
Traditional Indian Dance, Namaste Bollywood Dance Team
Complying with Local Regulations
As the words “Brix” and “Chindia” show, India is one of the most promising emerging
The Indonesian government started to apply Forest Moratorium
economies in the world in this era, and holds enormous growth potential with its 1.2
(a CO2 mitigation policy) in 2011 to the palm farm project in Su-
billion populations (taking up the 2nd position in the world). Samsung C&T Corpora-
matra that we commenced as a joint venture in 2008. This regu-
tion will expand its business in this country by focusing its resources and capabilities
and push ahead with gradual localization by building bonds with local residents. To
that end, we teach employees dispatched to India about local life, family, ideology,
institutions and language to encourage them to assimilate local culture.
lation put a restriction on our forest development activities. From
2014, the Indonesian government plans to enforce the ISPO
(Indonesian Sustainable Palm Oil) law, which is an Indonesian
version of RSPO (Round-table on Sustainable Palm Oil) certification designed jointly by private companies and environmental
protection organizations in response to the social demand for
protecting palm oil. The RSPO certification is an arrangement for
Identification of Issues
Stakeholders
protecting nature and solving social issues such as corporate
transparency, employment of minors, environmental issues and
Key
issue
Other
issue
Respecting and understanding
local culture at overseas sites
Compliance with local laws
and regulations
now taking steps to obtain the ISPO certification to readily adapt
Customers
Employees
Check of indirect economic
effects to local communities
Respecting and understanding
local culture
58
preservation of biodiversity. The Trading & Investment Group is
Area of Trading ​​Interest
Shareholders
and investors
Business Partners
Local
Communities
to the changes in policies and continue its business activities
in the region.
Assimilating into Local Culture
Human and cultural exchange with local people contributes to
enhancing our corporate image among locals by raising awareness and understanding of the Company. The Trading & Investment Group is now facing fierce competition from various rivals
since it has explored new business areas and entered new
markets.
Therefore, it is more essential to make local people support us
Key Figures
Workforce Breakdown of Trading & Investment Group
(persons)
Classification
2009
2010
2011
Domestic
939
972
1,061
Overseas
774
805
883
by helping local communities, understanding local culture and
Americas
165
167
178
communicating with local residents rather than creating profits
Europe
27
35
40
through expanding businesses and saving costs. To that end,
China
41
41
42
Southeast Asia & Oceania
42
40
26
Africa & Middle East
22
23
39
Japan
17
15
13
Total
16
13
18
we have been implementing various programs aimed at enhancing employee’s understanding on local communities such
as education and events at its headquarters while carrying out
social responsibility activities for helping local communities and
their members.
Education Program on Local Regulations And Culture
Classification
Name of
program
Detail
Employees of
Samsung C&T
Corporation
Name of
program
· Dispatch employees to overseas
offices to learn about local culture,
language, regulation, and market.
· Provide education to employees
in Korea through special lecture to
give insight into local culture
Local people
CASE STUDY
Analyzing
strategic
market(new
culture)
· Attract employee’s attention to
six strategic markets and share
knowledge on local culture.
Overseas
training for
new recruits
· Exchange with local residents (visit
universities, do volunteer activities,
etc.)
· Visit advanced companies and
business sites.
Education
on ethical
management
· Educate local employees on
regulation compliance.
Interview
“In-depth understanding and
through training on local cultures
and regulations are needed.”
Respecting and understanding the local culture is a basic
requirement for doing business in a foreign country and a
short cut to success. This is why employees need to receive training on local cultures and regulations. We should
provide a thorough program prior to dispatching expat
employees, allowing for a soft landing when they arrive at
their destination and minimize conflict with local legal systems. In the years ahead, we should continue to provide
programs with solid curricula on the countries we target
before we start business there, and I believe this spur our
success in those markets.
Selected as an Excellent Company for
Social Responsibility Activities Overseass
We are committed to fulfilling social responsibilities as a global
company through proactive communication with local communities.
On June 27, 2011, Samsung C&T Corporation Hong Kong was selected as an excellent company at the “Social Responsibility Activities
by Companies with Overseas Operation” organized by the Korean
general consulate in Hong Kong and sponsored by the Korean Ministry of Foreign Affairs and Trade. We are committed to fulfilling social
responsibility as a member of the Hong Kong society rather than a
foreign company making its own profit. For example, we visit and
provide assistance to elderly living alone and disabled in Hong Kong.
In addition, Samsung C&T Corporation Hong Kong won the “Caring
Company” certificate for two consecutive years awarded by the Hong
Kong Council of Social Service.
Svetlana Aganina
Deputy Head, Krasnoyarsk
Branch, Russia
Respecting and Understanding Local Culture
59
Insight 3
Securing Global Competitiveness
Company Requirement Background
As the demarcation between businesses becomes increasingly
blurred and the competition intensifies, we must secure competitiveness through selection and concentration in order to get
an upper hand in a market and create new values. Thus the
Trading & Investment Group is reorganizing its business structures to focus more on trading and organizing businesses with
an aim to become a global enterprise specializing in trading and
investment.
Reorganization to Secure Global Competiveness
The Trading & Investment Group is reorganizing its business
model from focusing on three business areas of resources,
resources; 1) industrial materials, 2) energy, and 3) environment into concentrating on trading and organizing businesses
in an effort to increase synergy effects among businesses and
maximizing investment returns. Based on the changed business
structure, we will build globally competitive business models
while maintaining existing strength.
Reorganization of the Trading & Investment Group’s
Business Structure
Growing as a Global Organizer
Focused on 3 business areas
Completed the Construction and Operation the LNG Receiving Terminal
in Manzanillo, Mexico
Samsung C&T Corporation Trading & Investment Group successfully completed the
construction the LNG receiving terminal in Manzanillo, Mexico, and is operating the
facility in partnership with Korea Gas Corporation and Mitsui & Co., Ltd.
We won the order of constructing and operating the Manzanillo LNG receiving termi-
Resource
Development and operation of resources, and trading
Industrial
Materials
Trading and operation business
Energy &
Environment
Organizing, operation and development
nal from the CFE (Comisión Federal de Electricidad) Mexico and procured the business expense from the Export and Import Bank of Korea in the form of project financFocused on business models
ing. This is one of representative projects in our organizing business.
Trading*
Identification of Issues
Key
issue
Other
issue
Securing competitiveness in our
emerging businesses in the world
Enhancement of business
portfolio management capabilities
Organizing **
Customers
Employees
Establishment of a global
operation system
Securing global
competitiveness
60
Industrial material
resources
Stakeholders
Area of Trading ​​Interest
Shareholders
and investors
Business Partners
Local
Communities
Plant
* A business model that creates profit by providing information,
maintaining relationship with trading parties, making loans, stockpiling,
and other risk taking activities after identifying business opportunity
from the imbalance between demand and supply of commodities.
** A business model that creates profit by a comprehensive solution to a
client through its financial and legal services or through a partnership
with construction or O&M firms after finding business items from
personal connections, government policies, and industrial trend
changes.
Key Figures
Total Export Amount of the Domestic Trading Corporations
(USD in billions)
32.6
2011
2010
25.5
2009
19.7
Ratio of Samsung C&T Corporation to the Above Amount
(%)
Won the Balkash Power Plant Project
12.5
2011
2010
11.4
2009
Building a Business Model through Selection and
Concentration
The Trading & Investment Group selected emerging businesses
to manage the business portfolio on a company-wide level.
Based on this, we will build a successful business model by
preferentially distributing our managerial resources to emerging
businesses and this process will expand to other business areas.
12.7
Interview
“We must pursue the balanced
development of our trading and
organizing businesses.”
Whereas the general trading business is easily affected
by market fluctuations, the investment business, which
is centered on project organizing can produce steady income over the long term. Therefore, we need to develop
trading and project organizing as the two mainstays of
CASE STUDY
Balkhash Power Plant
our operations to ensure economic soundness and
growth. Samsung C&T Corporation is moving beyond
the traditional trading activities to participate in various
We build global competitiveness by strengthening internal capacity and entering into new markets.
investment projects, diversifying revenue sources and
In August 2011, Samsung C&T Corporation won the order for building the Balkhash Power Plant project, the first IPP (independent power
plant) to be constructed by foreign capital and the project financing in
Kazakhstan, as a result of an inter-governmental agreement between
Korea and Kazakhstan. The Balkhash project is meaningful given
the fact that it is born by Korean investment and the combination of
financing, construction, and operation technologies of Korea. More
specifically, Korean consortium of Samsung C&T Corporation and
KEPCO leads the project with a 75% stake, and Samruk-Energy from
Kazakhstan holding the remaining 25%. This project will be implemented under the scheme BOOT (Build Own Operate Transfer), and
the Korean consortium will transfer the power plant after 20 years of
operation. Samsung C&T Corporation will also participate in the project
as an EPC (Engineering, Procurement, and Construction) provider and
build a large scale high-tech power plant by applying the Super-Critical
technology.
Corporation needs to analyze organizing projects carried
* The Super-Critical is a method that raises the steam condition
of a boiler and turbine above the critical point of water (221bar
in pressure, 374 in temperature). A super-critical power plant is
more economical, efficient, eco-friendly, and stable compared to
conventional power plants.
generating a stable revenue stream. Now, Samsung C&T
out in the past to identify issues for improvement and reinforce strengths.
Bong-young Lee
Deputy Head,
Korean Gas Corporation
Securing Global Competitiveness
61
Stakeholder
Management
Communication with Stakeholders
Samsung C&T Corporation is generating balanced results in economic, environmental, and social aspects by establishing and practicing a sustainability management system in which stakeholders participate and their opinions are reflected. We are deciding a strategic direction of sustainable growth
based on inter-organizational communications and reflecting the results into our management activities in order to achieve tangible growth. We believe
our commitment to sustainability management meets the needs and expectations of stakeholders.
62
Stakeholder Management
Significance of Stakeholder Engagement
Stakeholders of Samsung C&T Corporation
We are interacting with various stakeholders in our business
Stakeholders who are influenced by our sustainability man-
operation. Therefore, it is very important to identify how the
agement are categorized into five parties of investors, cli-
company affects its stakeholders and vice versa. Samsung
ents, employees, business partners, and local communities.
C&T Corporation is paying close attention to changes in
Samsung C&T Corporation is committed to advancing the
stakeholder relations, through which the company strives to
level of sustainability management and returning the fruits to
seek new opportunities. The more stakeholders engage in
stakeholders.
business activities, the more bases for sustainability management are widened and stakeholder relations are deepened.
Open Communication and
Participations
Customer
Key issue
- Common issue 1. Customer satisfaction
through innovation (14p)
Communication channel
- Customer satisfaction center and customer satisfaction survey
Shareholder and investor
Distribution of economic value
Key issue
KRW
20.4
billion
Employee
Key issue
- Common issue 4. Employee health and accident
prevention (32P)
- Issue 1 for E&C Group. Cultivation of people with
world-class construction capabilities (38p)
- Issue 1 for T&I Group. Recruit and cultivation of people with
world-class trading capabilities (56P)
Communication channel
- Dialogue with the CEO, employee survey, discussion,
and joint labor-management conference
Distribution of economic value
KRW
490.5
billion
Business partner
- Common 2. Shared growth with SMEs (20p)
Communication channel
- Shareholders’ meeting, IR conference,
and business report
Distribution of economic value
KRW
75.7
billion
Local Community
Key issue
- Common 3. Value creation through social contributions (26P)
- Issue 2 for E&C Group. Environment-friendly construction
technologies (42P)
- Issue 3 for E&C Group. Management of Energy
and Greenhouse Gas (46P)
- Issue 4 for E&C Group. Preservation of ecosystem
and biodiversity (50P)
- Issue 2 for T&I Group. Respecting and understanding local
culture (58P)
- Discussion with local communities, and social contribution
activities for local communities
Distribution of economic value
- Shared growth conference, regular discussion,
and workshops with partners
Distribution of economic value
291.2
Communication channel
Communication channel
Key issue
KRW
- Issue 3 for T&I Group. Securing global competitiveness (60p)
KRW
6.7
billion
billion
* The figures in the income statements of the 61st business
report were rearranged by the criteria of stakeholder value
distribution.
Communication with stakeholders
63
Results of Materiality Assessment
Samsung C&T Corporation covers stakeholders’ interests in this report. The stakeholder survey results present various risks and
opportunities around us in relation to sustainability and contribute to our responses to stakeholders. According to the survey results,
we classified risks and opportunities to deal with in order of priority and categorized them into key issues and other issues in the
report.
Issue Identification and Materiality
Assessment Framework
Trend analysis
Media research
Benchmarking of advanced companies
Global standards
Report on company-wide
and each business issues
Report on company-wide issues
Issue
Page
Customer satisfaction through innovation
14P
Shared growth with SMEs
20P
Value creation through social contributions
26P
Employee health and accident prevention
32P
Report on E&C Group’s issues
Issue
Page
Cultivation of people with world-class construction
capabilities
38P
Environment-friendly construction technologies
42P
Management of energy and greenhouse gas
46P
Preservation of ecosystem and biodiversity
50P
Report on T&I Group’s issues
Issue
64
Stakeholder Management
Page
Recruit and cultivation of people with world-class trading
capabilities
56P
Respecting and understanding local culture
58P
Securing global competitiveness
60P
130
Issues
Issue Pool
Issue 1
DJSI - 44 issues
ISO 26000 - 78 issues
Green Management - 15 issues
Trend - 18 issues
Sustainability Context
GRI G3.1 – 84 issues
Issue 2
Materiality
Test
Issue 130
Benchmarking - 11 issues
Interview with employees
Media - 4 issues
Stakeholder survey
We classified key issues and other issues (major issues
and potential issues) according to the survey results,
of which key issues were reported as company-wide
common issues encompassing the Engineering &
Construction Group and Trading & Investment Group,
while other issues were reported separately to either of
the two groups based on characteristics and urgency of
the issues. By doing so, we ensured the relevance and
balance of contents in this report.
Materiality Assessment
●Indirect local community
economic impact
●Promoting environmentfriendly urban development
projects
External Stakeholders’ Interest
Level
Results of Materiality Assessment
11
Issues
●Enhancement of innovation activities
●Employee protection and prevention of
work-related accidents
●Respecting and understanding local culture at overseas sites
●Supports for SMEs
●Establishment process for
●Securing environment-friendly construction technologies
fair trade
●Biodiversity preservation and
●Environmental impact assessment
management
●Enhancing capabilities to acquire ●Direct and indirect management of greenhouse gas emissions
environment-friendly certifications
●Securing global competitiveness
●Regulate greenhouse gas emissions
in emerging markets
in construction and building management
●Developing talent globally for the trading and investment sector
●Compliance with local laws
●Importance of value creation through
and regulations
social contributions
●Establishment of strategies to cultivate talents
●Reduction of direct and
indirect loss in expenses
in engineering & construction
Key issues
●Establishment of a global
operation system
●Analyzing and eliminating
corruption risks at sites
●Efficient energy use
●Development system
●Cultivating the corporate image through ●Enhancement of business tailored for human
portfolio management
accident prevention
resource cultivation
capabilities
●Improvement of customer satisfaction
●Providing service for ●Improvement of business capabilities
regional development
●Fair performance evaluation and
●Establish and govern ●Creating employment
rewards
environmental management
opportunities and increase
policies
wages in local communities
Other issues
Internal Stakeholders’ Interest
Level
Results of Materiality Assessment
65
Sustainable
Governance
Vision and Strategy
The ultimate goal of Samsung’s value system is to create values beneficial to all stakeholders and fulfill its corporate social responsibility. Samsung
C&T Corporation is conducting business management activities based on the value system of Samsung Group. Those business management activities are put into practice through our efforts to create core values and full compliance with the management principles. Under the value system, we will
continue to grow together with all of our stakeholders by strengthening sustainability management.
Value System of Samsung Group
Management
Philosophy
· Samsung’s purpose
and mission
· Ultimate goal and
direction
Value System
of Samsung
Group
Business
Principles
Core Values
·Permanent and
inherent credo
·The criteria of
Samsung’s identity,
thoughts,
and behavior
· Basic principles for
business management
· Internal and external
commitment to social
responsibilities
Management Philosophy
We devote our human resources and technology to create
superior products and services, thereby contributing to a better
global society.
Core Values
People
Excellence
Change
Integrity
Co-prosperity
66
Sustainable Governance
Business Principles
1. We comply with laws and ethical standards.
2. We maintain a clean organizational culture.
3. We respect customers, shareholders, and employees.
4. We care for health and safety of the environment.
5. We fulfill our social responsibility as a global corporate citizen.
Vision and Strategy of the Engineering & Construction Group
The Engineering & Construction Group presented a slogan “Global Futuremark” to express its determination to reach a milestone in the global market,
creating its own future. Under the slogan, we aim to be a global leader in the construction industry by cultivation of global no1. products, expansion of
global market, evolving into a total solution provider.
Vision Structure of the Engineering & Construction Group
2020 Global Leading Player
Vision
33 billion in new orders and USD 22 billion in sales by 2015,
and USD 60 billion in new orders and USD 45 billion in sales by 2020
USD
Goal
Cultivation of
global no1. products
Expansion of
global market
Evolving into a total
solution provider
Strategy
Establishment of global standards
Vision and Strategy of the Trading & Investment Group
Under the goal of becoming one of global top 10 trading companies, Trading & Investment Group will focus on enhancing competitiveness in the global
market through a select and focus strategy as well as lay the foundation for stable growth. This is our way of creating highest value for all stakeholders
including partners, employees, and local communities.
Vision Structure of the Trading & Investment Group
Evolving into one of global top 10 trading companies
Vision
Three-fold growth in chemicals and rare metals trading, and ten-fold growth in coal,
copper and steel trading
Goal
KRW
FY
700 billion in earnings before tax and 15 % ROE ( 20% before tax) by 2020
2015
Select & focus, and secure
fundamental competitiveness
in the trading business
FY
2020
Pursure solid growth
based on core
capabilities
Strategy
Vision and strategy
67
Corporate Governance
Composition of the BOD
Board of Directors
Classifi- Name
cation
The Board of Directors (BOD) of Samsung C&T Corporation
Inside
consists of three inside and four outside directors. The Samsung Engineering President & CEO serves concurrently as the
Chairperson of the Board, and outside directors are nominated
Company and Position
Remark
YeonJoo
Jung
Vice Chairman & CEO,
Samsung C&T Corporation
· Chairman of the Board
· Chairman of Executive
Committee
Shin
Kim
President & CEO of Trading &
Investment Group, Samsung
C&T Corporation
· Chairman of
Outside Director
Recommendation
Committee
· Member of Executive
Committee
Young- CFO & Head of Management
Planning Division, Samsung
Jo
C&T Corporation
Sang
· Member of Executive
Committee
by the Outside Director Recommendation Committee in order to
ensure their independence. For efficient, effective and professional decision making, we select outside directors from those
who have expert knowledge and experiences in a wide range
of areas such as business management, economics, and accounting.
BOD Activities
The Board of Directors holds regular meetings every quarter and
extraordinary meetings at a time of necessity for addressing ur-
Outside Chong- Professor, Economics, Seoul
directors Ook
Women’s University
Rhee
· Chairman of Audit
Committee
· Member of
Hyun- Professor, Architecture &
Soo Lee Architectural Engineering, Seoul Outside Director
Recommendation
National University
Committee.
endeavors to reflect the opinions of stakeholders.
Kyu-Jae Chief Editorial Writer, the Korea · Member of Audit
Jeong Economic Daily
Committee
· Member of
Outside Director
Recommendation
Committee
BOD Performance
Chang- President, Korea Institute of
Finance
Hyun
Yun
gent issues. The BOD has the rights to deliberate, decide, and
execute matters related to management of the company and
In 2011, a total of 10 BOD meetings were held, through which
34 items were deliberated.
· Member of Audit
Committee
* As of the end of March 2012
Compensation
BOD Meetings
Compensations for the BOD members and the management
Classification
Unit
2009
2010
2011
Number of meetings
are differentiated according to the results of regular business
times
12
11
10
Number of disputed bills
target reviews and performance evaluations. The limit of the
times
37
31
34
compensation is approved by the resolution of the general
Attendance rate of inside directors
%
100
100
100
Attendance rate of outside directors
%
96
98
83
shareholders’ meeting.
Committees under BOD
The company has set up and runs the Management Committee, Audit Committee and Outside Director Recommendation
Committee under the BOD, which contributes to enhancing the
efficiency of decision-making, ensuring transparency and independence of the BOD.
CASE STUDY
Sustainability Management Committee
Our sustainability management is being conducted centered
on the Sustainable Management Committee.
In 2010, we installed the Sustainable Management Committee consisting of major executives of the company. Under the leadership
of the CFO, members of the Sustainable Management Committee
integrate and assist general management activities affecting our
sustainable growth. Major issues dealt by the committee include
compliance, fair trade, shared growth, mid-to-long term strategies,
and internal control. Results of the meetings are reported through the
Audit Committee
68
Sustainable Governance
Management Committee
The Management Committee consisting of inside directors selected by the BOD ad deliberates on matters mandated by the
BOD and other major management issues.
Audit Committee
The Audit Committee consists of three outside directors. They
conduct audits through regular meetings in the first and second
half of the year and extraordinary meetings, which contributes to
enhancing transparency of the company.
Outside Director Recommendation Committee
foundation for practical compliance management by introducing
The Outside Director Recommendation Committee, consisting
manuals and updating compliance processes and guide. The
of one inside and two outside directors, nominates outside di-
Trading & Investment Group is utilizing the ombudsman system
rector candidates at the general shareholders’ meeting.
and four compliance principles (Newspaper Test, One Strike
Out, Everyone Ombudsperson, Know Your Customer) as guide-
Ethics & Compliance
lines for actual compliance activities.
Ethical Management
Based on CEO’s strong commitment to ethical management,
Organization for Implementing Compliance Program
Samsung C&T Corporation complies with the ethical standard
The Engineering & Construction Group and the Trading & Invest-
of society including domestic and international regulations, fair
ment Group operate their own organization responsible for im-
trade with partners and protection of employee’s rights. At the
plementing compliance. The Engineering & Construction Group
same time, we are making ethical management as our corpo-
installed the Compliance Committee and Compliance Office,
rate culture through diverse activities and employee training pro-
in tandem with appointment of 28 Compliance Officers (CO)
grams. Under the value system of Samsung Group for fulfilling
representing each Business Unit and 80 Compliance Manag-
social responsibility and creating value for all, our employees
ers (CM) in 2011 who serves as a driving force for compliance
are dedicated to establishing and putting into practice the basic
activities. The Trading & Investment Group operates the Compli-
principles of ethical management.
ance Committee consisting of a secretariat and a working office (to provide support to the secretariat) as a decision-making
Organization for Implementing Ethical Management
body for compliance. In addition, the Trade & Investment Group
Samsung C&T Corporation designated the auditing team, which
designates 12 heads and coordinators respectively to lead
is an independent department headed directly by the CEO, as
compliance activities in the headquarters and overseas offices.
the organization responsible for implementing ethical management. The auditing team is dedicated to eradicating corruptions
Actions for Compliance
and monitoring ethical practices, and provides management
The CEO of Samsung C&T Corporation declared its commit-
diagnosis. In addition, the auditing team operates the anti-
ment to compliance management in order to reaffirm the com-
corruption hotline, establishes guidelines for a clean organiza-
pany’s determination to put it into action, and all employees
tion culture, and applies strict punishment on irregularities as a
signed a pledge to reach consensus for implementing compli-
means for preventing corruption and accidents preemptively to
ance management.
strengthen the ethics of all employees.
Moreover, the Engineering & Construction Group has provided
employees with training programs to promote their understand-
Establishment of the Code of Ethics
ing on compliance. In 2011, a total of 6,479 employees com-
We established the code of ethics in order to build an honest
pleted the on-line compliance training program, and a total of
and clean corporate culture by providing all employees with a
2,151 emplyees attended the off-line training sessions. The
yardstick for evaluating their actions and value. Considering vari-
Trading & Investment Group reviews and provides training on
ous interests of all stakeholders, the code of ethics of Samsung
major compliance matters such as subcontract, foreign ex-
C&T Corporation is divided into five categories: 1) ethical man-
change transactions, handling of strategic materials, and pro-
agement, 2) basic ethics of employees, 3) responsibilities for
tection of private information intensively during “My Risk Care
employees, 4) responsibilities for the nation and society, and 5)
Week", taking place twice a year, while making compliance part
compliance with the code of ethics.
of daily life activities. In addition, we ran an on-line training program on RM/Compliance in 2011.
Compliance
In the coming years, we will reinforce our capacity for imple-
Building Compliance Infrastructure
menting compliance by building a compliance risk monitoring
Samsung C&T Corporation has established and runs compli-
system and gathering questions and opinions of employees.
ance management standards and regulations considering
characteristics of the Engineering & Construction Group and
the Trading & Investment Group respectively in order to reaffirm
their commitment to compliance and provide a clear standard
to employees. The Engineering & Construction Group laid the
Corporate Governance & Ethics & Compliance Management
69
Risk Management
Risk Management Process
Risk Management System
There are human and natural risks in our global businesses, and
in particular, it is not easy to effectively manage such risks due
Identification
· Risk identification and cause analysis
· Maintenance and management of profiles
Assessment
· Quantification of risk assessment results
· Setup of response directions to risks
· Cause analysis of risks
· Establishment of response methods to risks
· Designation of staff responsible to risks and
implementation of improvement schemes
to the expansion of project areas and organizations throughout
Response
the world. To minimize such risks, Samsung C&T Corporation
is implementing real-time risk management actions by building
project-specific risk management systems.
Monitoring & Report
Risk Management of the Engineering &
Construction Group
Expanding Risk Management
Re-identification
(reassessment)
· Monitoring including KRI
· Analysis of improved effects
· Inspection of management status
· Report on results of responding to risks
· Identification of new business goals
· Deduction of additional risks
· New risk pool
The Engineering and Construction Group is preventing opportunity losses by quantifying and objectifying risks through risk
management processes, and responding and controlling such
risks in order of priority. We have adopted the risk management
process to all construction sites since 2007, and expanded the
scope of its application to cover marketing and proposal in late
2012.
Risk Management of the Trading & Investment Group
Strengthening Risk Management System
The Trading & Investment Group expanded infrastructures for
managing risks by building a risk management system (ERMS,
Enterprise Risk Management System) and reestablishing related
regulations since 2007. We have managed three key items of
Construction Risk Classification System
We derived a total of 310 risk factors including risk cases of the
past and risk issues in current business strategies. We classify
those risk factors into 5 core areas by assessing their importance and priority by order.
the infrastructure, culture, review and evaluation for risk management. From 2011, the CEO has provided risk management
education in person in order to raise awareness of employees.
In the future, we plan to integrate and upgrade our risk management system to reflect professional characteristics of specific
businesses, and by doing so, make the risk management system as one of the core capabilities of the Trading & Investment
Management of 5 Core Risks
Risk
Factors to be considered
Strategic risk
Possibility of failures in strategy
Environmental
risk
Possibility of losses by external condition changes
(business environment, competitors, customers,
policies, and regulations, etc.)
Financial risk
Possibility of financial losses (interest rate, stock
price, liquidity, and credit rating, etc.)
Compliance
Impacts by not complying with the domestic and
international regulations
Operation risk
Possibility of losses in operations (losses or mistakes
caused by employees, process, and system errors),
corruption, and inefficiency
Risk Management Process
Risk management process is designed to identify, assess, respond to, monitor, report and re-identify the risks.
70
Sustainable Governance
Group.
Investment Risk Management
The Trading & Investment Group is checking and managing risks
in a comprehensive manner by selecting eight major risk factors in
case of deliberating on new investment items, which enables us
to manage investment risks practically and effectively.
8 Risk Factors to Be Considered for New Investments
Risk
Factors to be considered
Business risk
Market penetration, growth limit, competition, and
integrity of partners
Market risk
Market conditions and competitiveness
Credit risk
Political stability, credit of partners, and credit of clients
Operation risk
Professionalism, experts, and awareness
Liquidity risk
Investment companies and clients
Event risk
Natural disaster, financial conditions, and infrastructure
Legal risk
Local laws and legality
Accounting risk
Accounting risks
GRI 3.1
Contents
Index
72 Profile Disclosures
Performance Indicators
- Economic
- Environmental
- Social
This report includes quantified data covering overseas business sites. Therefore,
some data may differ from those of the 2010 sustainability report.
Profile Disclosures
●Reported ◐ Partially Reported ○Not Reported N/A Not Applicable
Indicator Description
Page
Status
Indicator Description
1. Strategy and Analysis
1.1
Statement from most senior decision-maker in organization
4, 5
●
1.2
Description of key impacts, risks, and opportunities
4, 5
●
2. Organizational Profile
2.1
2.2
2.3
2.4
2.5
Name of organization
Primary brands, products, and/or services
Operational structure
Location of organization's headquarters
Location of overseas branch offices and sites
Nature of ownership and legal form
Shareholder
2.6
2.7
2.8
2.9
2.10
6
8-11
86
2
6, 7
●
●
●
●
●
Explanation of the effects of & reasons for any re-statements of
information provided in earlier reports
2
●
3.11
Significant changes from previous reporting periods applied in
the report
2
●
72-78
●
80, 81
●
68
●
68
●
68
●
68
●
68
●
68
●
68
●
66, 67
●
68
●
68
●
70
●
87
●
86
●
63
●
4.15
Bases for identification and selection of stakeholders with whom
to engage
63
●
4.16
Approaches to stakeholder engagement, including frequency of
engagement by type and stakeholder group
63
●
4.17
Key topics and concerns raised through stakeholder
engagement, and responses to them
64, 65
●
3.13
(as of the end of 2011)
Foreign investors
21.3%
Treasury shares
5.9%
ESOP
0.1%
Institutional investors
32.3%
Individuals & corporations
23.5%
Subsidiaries
16.9%
Markets served
Scale of the reporting organization
Significant changes during reporting period regarding size,
structure, or ownership
Awards received in reporting period
4.2
4.3
●
4.4
4.5
4.6
6, 7
7
●
●
8-11
●
87
●
4.7
4.8
4.9
4.10
Reporting period
2
●
3.2
Date of most recent previous report (if any)
2
●
3.3
Reporting cycle (annual, biennial, etc.)
2
●
3.4
Contact point for questions regarding the report or its contents
3.5
Process for defining report content
3.6
3.7
4.11
4.12
2
●
4.13
64, 65
●
4.14
Boundaries of report
2
●
State any specific limitations on the scope or boundary of report
2
●
2
●
2
●
Basis for reporting on comparability from period to period and/or
between organizations
Data measurement techniques and bases of calculations for data,
including performance index
Table identifying the location of the Standard Disclosures in the report
Policy and current practices with regard to seeking external
assurances for the report
4. Governance, Commitments, and Engagement
4.1
3.1
3.9
Status
3.10
3.12
3. Report Parameters
3.8
Page
3. Report Parameters
Governance of organization
Indicate whether the Chair of the highest governance body is
also an executive officer
Number of members of highest governance body that are
independent and/or non-executive members
Mechanisms for shareholders and employees to provide
recommendations or directions to highest governance body
Compensation for members of highest governance body, senior
managers, and executives
Processes in place for highest governance body to ensure
conflicts of interest are avoided
Process for determining the qualifications and expertise of the
members of the highest governance body
Internally developed statements of mission or values, codes of
conduct, and principles
Procedures of highest governance body for management of
economic, environmental, and social performances
Processes for evaluating highest governance body's own performance
Whether and how the precautionary approach or principle is
addressed by the organization
Externally developed economic, environmental, and social
charters, principles, or other initiatives
Membership in associations and/or national/international
advocacy organizations
List of stakeholder groups engaged by the organization
Performance Indicators (Economic & Environmental)
Indicator Description
Page
Status
Remarks
Economic Performance Indicators
EC1
Direct economic value generated and distributed
63
●
EC2
Financial implications and other risks and opportunities for
organization's activities due to climate change
46
●
Retirement Pension Plan
EC3
EC4
72
Coverage of organization's defined benefit plan obligations
Significant financial assistance received from governments
GRI 3.1 Contents Index
●
●
Details
Introduced
September 2007
Type
Defined benefit & defined contribution
Targets
All employees at head office and overseas local corporations
Managed by
Samsung Life Insurance Co., Ltd.
Total amount
KRW205.7 billion (DB: KRW205.4 billion, DC: KRW0.3 billion)
Subscribers
4,998 persons (DB: 4,951, DC: 47)
There has been no case in 2011.
Performance Indicators (Economic & Environmental)
●Reported ◐ Partially Reported ○Not Reported N/A Not Applicable
Indicator Description
Page
Status
Remarks
Economic Performance Indicators
EC5
Range of ratios of standard entry-level wages compared to
local minimum wage at significant locations of operation
EC6
Policy, practices, and proportion of spending on locally-based
suppliers at significant locations of operation
25
●
EC7
Process of hiring local workers preferably and percentages of
locally-hired high-ranking managers
57
●
EC8
Development and impact of infrastructure investments
and services provided primarily for public benefit through
commercial, in-kind, or pro bono engagement
31
●
EC9
Understanding and describing significant indirect economic impacts
44
●
●
Samsung C&T Corporation sets wages equitably without discrimination. The wage level of
new employees in 2011 was 187% of minimum legal wage.
Environmental Performance Indicators
Category
Unit
2009
2009
2011
Steel bar
Ton
250,602
226,229
164,745
1,658,657
Ready-mixed concrete
EN1
Materials used by weight or volume
●
Cement
2,236,483
1,639,875
Ton
132,134
93,117
130,107
㎥
317,029
239,754
202,822
㎥
Sand
Aggregate
㎥
860,085
70,064
121,864
Ascon
Ton
646,074
238,102
108,820
Office supplies
Ton
83.5
110.9
61.2
Category
Unit
Total purchase of materials
EN2
Percentage of materials used that are recycled input materials
●
EN3
Direct energy consumption by primary energy source
49
●
EN4
Indirect energy consumption by primary energy source
49
●
CRE1
Intensification of energy consumption at buildings
44
●
EN5
Energy saved due to conservation and efficiency improvements
43, 44
●
EN6
Initiatives to provide energy-efficient or renewable energy based
products and services, and reductions in energy requirements
as a result of these initiatives or services more widely used
43, 44
●
EN7
Initiatives to reduce indirect energy consumption and
reductions achieved
43, 44
●
EN8
Total water withdrawal by source
KRW1
million
Purchase of eco-friendly materials
2009
2010
2011
1,237,121
1,513,067
1,467,767
71,330
67,381
66,940
Ratio of purchasing eco-friendly materials
%
5
4
5
Use of recycled aggregate
㎥
5,314
16,479
51,609
Category
Source
2009
2010
2011
Water use
(ton)
Waterworks
2,628,425
7,471,587
4,864,327
●
Stream water
152,967
369,621
273,872
Underground water
817,596
2,294,477
741,649
Recycled water
128,364
93,567
116,538
3,727,352
10,229,252
5,996,386
Total use
2011(target)
4,735,749
* The quantity of water intake may increase or decrease sharply by the increase or decrease
of projects considering the nature of construction industry.
EN9
EN10
Water sources significantly affected by withdrawal of water
●
Percentage and total volume of water recycled and reused
●
Civil and plant construction sites mainly use water taken from nearby stream and the
wastewater is thoroughly managed by the operation of wastewater discharge facilities and
specific inspections.
Category
Unit
2009
2010
2011
Use of recycled water
Ton
128,364
93,567
119,995
* The quantity of water intake may increase or decrease sharply by the increase or decrease
of projects considering the nature of construction industry.
CRE2
Intensification of water use at buildings
EN11
Location and size of land owned, leased, managed in, or adjacent
to protected areas and areas of high biodiversity managed by us
○
50, 51
●
Profile Disclosures & Performance Indicators
73
Performance Indicators (Environmental)
●Reported ◐ Partially Reported ○Not Reported N/A Not Applicable
Indicator Description
Page
Status
Remarks
Environmental Performance Indicators
EN12
Description of significant impacts of activities, products, and
services on biodiversity biological diversity
50, 51
●
EN13
Habitats protected or restored
50, 51
●
EN14
Strategies, current actions, and future plans for managing
impacts on biodiversity
50
●
EN15
Number of IUCN Red List species and national conservation
list species with habitats in areas affected by operations, by
level of extinction risk and the government and living in the
areas affected by our business activities
52
●
EN16
Total direct and indirect greenhouse gas emissions by weight
49
●
EN17
Other relevant indirect greenhouse gas emissions by weight
49
●
CRE3
Intensification of greenhouse gas emissions at buildings
43
◐
CRE4
Intensification of greenhouse gas emissions by construction or
reconstruction
43
◐
EN18
Initiatives to reduce greenhouse gas emissions and reductions
achieved
46-48
●
EN19
Emissions of ozone-depleting substances by weight
●
EN20
NOx, SOx, and other significant air emissions by type and
weight
●
EN21
Total water discharge by quality and destination
●
Samsung C&T Corporation does not use ozone layer-depleting substances, while
the company focuses on managing data related to energy use and greenhouse gas
emissions to meet low carbon and green growth policies set by the government. In
addition, we use refrigerators, deep-freezers and air-conditioning equipments without
ODPs.
To prevent water pollution, Samsung C&T Corporation has established and operated
water-pollution prevention facilities such as sand basins, silt protectors, diversion water
ways, and controls scattering dust by recycling effluent water. In addition, wastewater
discharge facilities are monitored daily for water quality and all data are precisely collected.
We are striving to minimize water pollution by managing wastewater through optimal water
treatment facilities.
Category
Unit
Construction waste
Recycled
Intermediate-treated
EN22
Total weight of waste by type and disposal method
●
Final-treated
Ton
Wastes at work
Designated waste
Recycling rate of
construction waste
%
2009
2010
2011
1,624,250
799,313
1,189,623
71,475
76,507
13,872
1,532,902
633,402
1,128,093
19,873
89,404
47,658
28,635
17,083
8,751
362
197
202
4.4
9.6
1.2
2011(target)
1,206,276
CRE5
Status of contamination area, restoration area and potential
contamination area at construction sites
●
There have been no contaminated and restored areas related to construction sites during
the reporting period. Samsung C&T Corporation strives to reduce waste and improve
the recycling ratio by clarifying waste reduction targets at each site and promoting waste
reduction campaigns such as 4R (Refuse, Reuse, Reduce, and Recycle) and Zero Waste.
These efforts will be continued and expanded.
EN23
Total number and volume of significant spills
●
There has been no hazardous substance leakage during the reporting period.
EN24
Weight of transported, imported, exported, or treated wastes
deemed hazardous under the terms of the Basel Convention
Annex I, II, III, and VIII Annex of Basel Convention
●
There has been no hazardous waste transferred under the Basel Convention
EN25
Name of water bodies significantly affected by the reporting
organization's discharges of water and runoff protection
states, protection levels and biological diversity value of related
habitats
EN26
Initiatives to mitigate environmental impacts of products and services,
and extent of impact mitigation
EN27
Percentage of products sold and their packaging materials that
are reclaimed by category
74
GRI 3.1 Contents Index
51
●
42-44
●
○
●Reported ◐ Partially Reported ○Not Reported N/A Not Applicable
Indicator Description
Page
Status
Remarks
Environmental Performance Indicators
Category
EN28
Unit
Violation of regulations
Monetary value of significant fines and total number of nonmonetary sanctions for noncompliance with environmental laws
and regulations
●
2009
2010
7
5
6
11
31
11
0.13
0.06
0.23
Cases
Civil appeals
Environmental dispute conciliation
KRW in billions
2011
Samsung C&T Corporation is committed to advance efforts on minimizing environmental
accidents and environment-related conflicts,
EN29
Significant environmental impacts of transporting products
and other goods and materials used for the organization's
operations and transporting members of the workforce
47
●
Category
Unit
Total environmental management expenses
EN30
Total environmental protection expenditures and investments
by type
●
Environmental preservation expenses (Domestic)
Environmental preservation expenses (Overseas)
Waste treatment expenses (Domestic)
KRW1
million
2009
2010
2011
17,152
15,180
16,003
3,253
4,771
3,834
638
606
270
13,089
9,553
11,044
172
250
855
Waste treatment expenses (Overseas)
Labor Practices and Decent Work Performance Indicators
Category
Unit
Total employees
Employment type
LA1
Total workforce by employment type, employment contract, and
region
Social minorities
●
Total number and rate of employee turnover by age group,
gender, and region
LA3
4,663
5,068
6,112
654
1,030
1,254
Female
544
577
772
Disabled
70
114
118
94
114
131
persons
National veterans
Age
20s~30s
3,122
3,461
4,224
Over 40s
2,195
2,637
3,142
Position
Executives
125
151
167
Employees
5,192
5,947
7,199
Category
●
LA4
Percentage of employees covered by collective bargaining
agreements
●
●
2011
7,366
Irregular
Unemployed
(persons)
2010
Turnover
rate (%)
Unemployed
(persons)
2011
Turnover
rate (%)
Unemployed
(persons)
Turnover
rate (%)
E&C Group
17
0.4
26
0.5
28
0.4
T&I Group
4
0.4
14
1.4
13
1.2
Category
Benefits provided to full-time employees that are not provided
to temporary employees
2010
6,098
Regular
2009
LA2
2009
5,317
Details
Supports for
leisure activities
· Membership recreational facilities (Daemyeong Condo, Hanhwa Condo, and
Phoenix Park)
· Fitness center (220 persons), and sports center (240 persons)
· Water park (150 tickets a day)
· 22 intra-company clubs and financial assistance for their operations
Assistance for
childbirth and
maternity
· Remuneration for childbirth and pregnancy, and gifts for childbirth
· Lounge for pregnant women and breast-pumping area
· Rest areas for female workers
Financial supports
· Intra-company labor welfare fund
for living and
· Credit association (low-interest loans)
family events
Assistance for
medical care and
health
· Assistance for regular and in-depth medical checkups
· Intra-company medical laboratory
· Providing medical assistance (assistance for subscribing insurance,
covering actual medical expenses for all employees and their spouses
and children)
Assistance for
educations
· Providing online education programs and external education programs
and supporting external language education programs
Legal welfare
benefits
· Four social insurances
Selective welfare
benefits
· Providing gift points worthy of KRW600 thousand a year (operation of an
online shopping mall)
There is no labor union at Samsung C&T Corporation, while requirements of all employees
are collected through the Labor-Management Council.
Performance Indicators
75
Performance Indicators (Social)
●Reported ◐ Partially Reported ○Not Reported N/A Not Applicable
Indicator Description
Page
Status
Remarks
Labor Practices and Decent Work Performance Indicators
LA5
Minimum notice period(s) regarding significant operational
changes
●
Changes in overall management and employment plans are reported to the LaborManagement Council
LA6
Percentage of total workforce represented in formal joint
management-worker health and safety committee
●
The committee is consisted of equal numbers of representatives of the company and
employees.
LA7
Rates of injury, occupational diseases, lost days, and
absenteeism, and number of work-related fatalities
35
●
CRE6
Staff composition by site obtaining the HSE management
system certification
77
◐
LA8
Disease and safety control programs to assist workforce
members, their families, and community members
32, 33
●
LA9
LA10
Health and safety topics covered in formal agreements with
labor unions
Average hours of training per year per gender and employment
type
●
To prevent industrial accidents, Samsung C&T Corporation operates the Industrial Safety
& Health Committee consisting of co-representatives of the labor and the management.
This committee deliberates and makes decisions on significant items for employees’
safety such as safety & health training, inspection and improvement of working
environments, health management, and disaster control and measure establishment
every quarter. The committee is consisted of equal numbers of contractor members and
workforce members, of which the contract members are composed of representatives of
the prime contractor and subcontractor, and the workforce members are composed of
representative workers of the prime contractor and subcontractor.
Category
●
E&C Group
Training expenses per employee
(KRW1 million)
2009
2010
2011
2009
2010
2011
1.262
1.237
1.808
131
147
157
4
4
4
70
75
78
T&I Group
LA11
Programs for skills management and lifelong learning for
continued employability and managing career endings
●
Training hours per employee
(hours)
Since 2011, three subsidiaries engaging in construction business within Samsung Group
have been operating the CDC (Career Development Center) that is committed to helping
reemployment of retired employees.
Experienced workers who joined the company for less than three months and new
employees for less than a year are excluded from the assessment. And the performance
assessment for capability and achievement is implemented twice a year.
LA12
Percentage of employees receiving regular performance and
career development reviews
●
2009
Category
E&C Group
T&I Group
2010
Rate (%)
Employees
(persons)
Rate (%)
Employees
(persons)
Rate (%)
4,380
99.9
5,124
99.9
6,303
99.9
920
98.3
925
95.1
1,043
98.3
Category
LA13
Composition of governance bodies and breakdown of
employees per category by indicators of diversity
Executives
2011
Employees
(persons)
Unit
Position
●
Gender
2009
2010
2011
Inside director
4
4
3
Outside director
5
5
4
9
9
7
0
0
0
Male
Persons
Female
LA14
Ratio of basic salary of men to women by employee category
●
There is no difference in basic salary rate between male and female workers at Samsung
C&T Corporation.
Category
LA15
Return to work and retention rates after parental leave
●
Number of employees who used childbirth and child-care
leaves
Unit
Persons
2009
2010
2011
9
14
40
Return-to-work ratio after the leave
%
100
83.5
98.1
Over 12-month work ratio after the return
%
91.7
83.5
100
Human Rights Performance Indicators
HR1
Percentage and total number of significant investment
agreements that include human rights clauses
●
Samsung C&T Corporation comprehensively reviews the possibility of human right abuse
in the process of checking risks when it makes investment agreements. Human right is
preserved by continuous educations and monitoring after making contracts, while there is
no investment agreements including explicit human right articles.
HR2
Percentage of significant suppliers and contractors that have
undergone screening on human rights
●
When inspecting and selecting business partners, Samsung C&T Corporation
comprehensively reviews their credit, quality and the possibility of human right abuse. The
Company monitors selected partners not to violate human right and provides educations.
76
GRI 3.1 Contents Index
●Reported ◐ Partially Reported ○Not Reported N/A Not Applicable
Indicator Description
Page
Status
Remarks
Human Rights Performance Indicators
Samsung C&T Corporation regularly conducts education to prevent sexual harassment in
the workplace for all employees.
HR3
Category
Total hours of employee training on policies and procedures
concerning aspects of human rights that are relevant to
operations, including percentage of employees trained
●
Participants
Education
Unit
2009
2010
2011
Persons
1,943
11,324
10,821
Hours
7,592
61,616
49,936
* Figures in 2009 only contain the results in the Trading & Investment Group.
HR4
Total number of incidents of discrimination, and actions taken
●
We prohibit discrimination based on nationality, gender, religion, and social position in
cases of employment, training, and performance evaluations.
HR5
Operations identified in which the right to exercise freedom of
association and collective bargaining may be at significant risk
●
We remedy grievances of employees and deliberate on trainings and their welfare through
the labor-management council. The freedom of association and negotiation is also
guaranteed through the council.
HR6
Operations identified as having significant risk for incidents of
child labor, and measures taken
Operations identified as having significant risk for incidents of
forced labor, and measures taken
●
HR7
Samsung C&T Corporation prohibits forced labor and child labor at all work sites in
accordance with Korea’s labor-related laws and the local regulations of the countries
where the company operates. There has been no violation of forced labor and child labor
at home and abroad as of the end of 2011. And we do not employ new workers under
legal minimum age.
HR8
Percentage of security personnel trained in the organization's
policies concerning human rights relevant to operations
●
To avoid violation of human rights, we provide all security personnel with sexual
harassment prevention training once a year and personal information leakage prevention
training once a month.
HR9
Total number of incidents of violations involving rights of
indigenous peoples, and actions taken
●
There has been no violation of rights of indigenous people during the reporting period.
HR10
Percentage and total number of operations that have been
subject to human rights reviews and/or impact assessments
●
Samsung C&T Corporation inspects and manages violation of human rights and
corruptions at all work sites, and provides trainings for ethical responsibility to partners’
employees as well as the company’s all employees.
HR11
Number of complaints related to human rights that are
filed, dealt with, and resolved through the official complaint
registration channel
●
There has been no complaint related to human rights.
Society Performance Indicators
SO1
Percentage of operations with implemented local community
engagement, impact assessments, and development
programs
SO2
Percentage and total number of business units analyzed for
risks related to corruption
SO3
Percentage of employees trained in organization's anticorruption policies and procedures
69
●
SO4
Actions taken in response to incidents of corruption
69
●
SO5
Public policy positions and participation in public policy
development and lobbying
69
●
SO6
Total value of financial and in-kind contributions to political
parties, politicians, and related institutions, by country
●
Samsung C&T Corporation remains politically neutral, and does not join or support specific
parties.
SO7
Total number of legal actions for anti-competitive behavior and
monopoly practices
●
There has been no legal action for anti-competitive behavior and monopoly practice during
the reporting period.
SO8
Monetary value of significant fines, and total number of nonmonetary sanctions for non-compliance with laws and
regulations
●
We announce violations in accordance with the 7th article of the posting regulations of the
stock exchange. Please see documents announced during the reporting period.
SO9
Operations with significant potential or actual negative impacts
on local communities
CRE7
Countermeasures to move local inhabitants by business
developments
SO10
Prevention and mitigation measures implemented in operations
with significant potential or actual negative impacts on local
communities
58, 59
●
○
51-53
●
○
51-53
●
Performance Indicators
77
Performance Indicators (Social)
●Reported ◐ Partially Reported ○Not Reported N/A Not Applicable
Indicator Description
Page
Status
Remarks
Product Responsibility Performance Indicators
PR1
Life cycle stages in which health and safety impacts of
products and services are assessed, and percentage of
significant products and services subject to such procedures
18
◐
PR2
Total number of incidents of non-compliance with regulations
and voluntary codes concerning health and safety impacts
of products and services during their life cycle, by type of
outcomes
18
◐
PR3
Type of product and service information required by procedures
18
●
CRE8
Obtainments of certifications and labelings for sustainability
related to construction, operation, reconstruction, and new
construction
45
●
PR4
Total number of incidents of non-compliance with regulations
and voluntary codes concerning product and service
information and labeling
PR5
Practices related to customer satisfaction, including results of
surveys measuring customer satisfaction
PR6
Programs for adherence to laws and standards related to
marketing communications
●
We comply with the act on fair indication and advertisement and the inspection guidance
on fair indication and advertisement for housing in our marketing communication activities.
Additionally, we establish and practice self-regulating standards for publications of
advertisements and catalogues.
PR7
Total number of incidents of non-compliance with regulations,
standards and voluntary codes concerning marketing
communications
●
There has no violation of regulations and standards related to marketing communication
activities.
PR8
Total number of substantiated complaints regarding breaches
of customer privacy and losses of customer data
●
To improve awareness on personal information protection and prevent abuse or leakage
of personal information, Samsung C&T Corporation executes related trainings twice a year
for responsible staff of each department. There have been no complaints or loss of data
related to personal information protection.
PR9
Monetary value of significant fines for noncompliance with laws
and regulations concerning provision of products and services
●
There have been no penalties by the violation of regulations related to safety of products
and services, product information disclosure, and marketing activities.
●
18
Samsung C&T Corporation does not advertise extensively or untruthfully. There has been
no penalty or restriction by complaints concerning product information.
●
GRI G3.1 Application Level
The 2012 Samsung C&T Corporation’s Sustainability Report was prepared based on the GRI G3.1 guideline, and satisfied the qualitative and quantitative requirements of Level 'A+' of the G3.1 guideline. This report was also verified through a 3rd party assurance agency ‘Ernst & Young’.
78
OUTPUT
Not Required
Report on a minimum of 10 Performance
Indicators, including at least one
from each of: Economic, Social and
Environment.
G3.1
Performance
Indicators
& Sector
Supplement
Performance
Indicators
GRI 3.1 Contents Index
B+
Report on all criteria listed for Level C plus: 1.2,
3.9, 3.13, 4.5-4.13, 4.16-4.17
Management Approach Disclosures for each
Indicator Category
Report on a minimum of 20 Performance
Indicators, at least one from each of Economic,
Environmental, Human rights, Labor, Society,
and Product Responsibility.
A
A+
Same as requirement for Level B
Management Approach disclosed for
each Indicator Category
Respond on each core G3 and Sector
Supplement Indicator with due regard
to the Materiality Principle by either: a)
reporting on the Indicator or b) explaining
the reason for its omission.
Report Externally Assured
G3.1
Management
Approach
Disclosures
B
Report Externally Assured
OUTPUT
Report on:
1.1, 2.1-2.10, 3.1-3.8, 3.10-3.12,
4.1-4.4, 4.14-4.15
C+
Report Externally Assured
G3.1 Profile
Disclosures
OUTPUT
Standard Disclosures
C
APPENDIX
80 Independent Assurance
Report
82 Independent Assurance
Report of Greenhouse
Gas Emissions
84 Glossary
86 Organization Chart and
Association Membership
87 Awards Received
Independent Assurance Report
To the management of Samsung C&T Corporation
At Samsung C&T Corporation’s request, we have reviewed the information presented in the 2012 Sustainability Report (the “Report”).
The management of Samsung C&T Corporation is responsible for preparing the report. Our responsibility is to carry out a limited
assurance engagement on the report and to provide opinions on it based on our review.
Level of assurance and what we did to form our conclusions
We undertook an assurance engagement in accordance with ISAE 30001 and AA1000AS(2008)2 . The limited assurance of ISAE 3000 is in
accordance with the moderate level as defined by AA1000(2008). The conducted engagement complies with the requirements of a Type 2
assurance engagements as defined by AA1000AS(2008).
We performed the following procedures to form our conclusion on the report:
•Evaluated Samsung C&T Corporation’s processes for stakeholder engagement.
•Reviewed Samsung C&T Corporation’s processes for determining material issues of stakeholder groups.
•Searched media coverage of Samsung C&T Corporation’s sustainability issues during the applicable reporting period.
•Reviewed recently reported sustainability issues of the Samsung C&T Corporation’s global competitors.
•Interviewed a selection of people in charge to understand the current status of sustainability performance
and the reporting process during the reporting period.
•Reviewed selected data regarding Samsung C&T Corporation’s sustainability performance, supporting evidence for assertions,
and information from corporate-wide systems.
•Reviewed Samsung C&T Corporation’s process for collecting and consolidating sustainability performance data.
The limitations of our review
We excluded GHG (Greenhouse Gas) emissions in our limited assurance engagement. And we did not review environmental and social performance
data prior to 2009. However, we reviewed financial performance data based on Samsung C&T Corporation’s 2011 audited financial statements.
Our conclusions
The result of our review is outlined below.
Inclusivity
Has Samsung C&T Corporation been engaging with stakeholders across the business to develop and implement its approach to sustainability?
•Samsung C&T Corporation is collecting major concerns and opinions of its shareholders, investors, customers, employees, suppliers,
and the local community through the stakeholder engagement channel.
•We are not aware of any key stakeholder groups that have been excluded from the stakeholder engagement process outlined in the report.
Materiality
Has Samsung C&T Corporation provided a balanced representation of material issues concerning Samsung C&T Corporation’s sustainability performance?
•Samsung C&T Corporation determines material issues of its sustainability management through the relevant process.
•Nothing has come to our attention that causes us to believe that Samsung C&T Corporation management has not applied its processes for
determining material issues to be included in the Report.
¹ International Standard on Assurance Engagement : Assurance Engagements other than Audits or Reviews of Historical Financial Information from the International Federation of the
Accountants
² AA1000AS(2008)-The second edition of the AA1000 Assurance Standard from the Institute of Social and Ethical Accountability
80
Appendix
Responsiveness
Has Samsung C&T Corporation responded to the stakeholder concerns?
•Samsung C&T Corporation is continuously communicating with its stakeholders by responding to material sustainability issues and
publishing the sustainability performance report.
•We are not aware of any issues that are determined as additional concerns of stakeholders,
other than the material issues covered in the report.
Completeness and accuracy of performance information
How complete and accurate is the economic, social, and environmental performance data in the report?
•We are not aware of any that have been excluded from the economic, social, and environmental performance data.
•Nothing has come to our attention that causes us to believe that the data relating to the above topics has not been collated properly from
Samsung C&T Corporation’s reporting processes.
How plausible are the statements and claims within the report?
•We are not aware of any misstatements of information or explanation used to support statements and claims on Samsung C&T
Corporation’s sustainability activities presented in the report.
Observations and areas for improvement
Without prejudice against our conclusions presented above, we believe the following matters require attention in order to improve Samsung C&T
Corporation’s sustainability reporting.
•Although the system and management of sustainability performance data is appropriate, specific targets need to be set and reporting on its
•Completeness of sustainability performance reporting needs to be improved through securing consistency between the Engineering &
Construction Group and Trading & Investment Group.
•It is necessary to enhance the system that determines material issues through expanding the periodic communication channels that reflects
actual implementation performance is necessary.
concerns of diverse stakeholders.
Independence
We comply with the Ethical Standard issued by IFAC (International Federation of Accountants).
Our assurance team
The assurance engagement was performed by the engagement team with a long history of experience and expertise in sustainability area.
Ernst & Young
Seoul
December 2012
Independent Assurance Report
81
Independent Assurance Report of Greenhouse Gas Emissions
To the management of Samsung C&T Corporation
We have carried out a limited assurance engagement in order to conclude whether anything has come to our attention that causes
us to believe that the subject matter detailed below, and as presented in Samsung C&T Corporation’s (the "Company") 2012
Sustainability Report, is not presented fairly, in all material respects, in accordance with the criteria as presented below.
Subject Matter
The subject matter for the Sustainability Report 2012 includes total greenhouse gas emissions (including scope 1, scope 2 and scope 3) from
the year started 1 January 2009 to the year ended 31 December 2011, for the Korean and International facilities and sites under the Company’s
operational control.
Criteria
The criteria for reporting the subject matter is as set out in the:
•WRI/WBCSD 「GHG Protocol」(2004)
•ISO 14064-1 「Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and
removals」
The Responsibility of Management
The Company’s management is responsible for the preparation and fair presentation of the subject matter. This responsibility includes
establishing and maintaining internal controls relevant to the preparation and presentation of the subject matter that is free from material
misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making estimates that are reasonable in
the circumstances.
Assurance Practitioner’s Responsibility
Our responsibility is to express a conclusion on the subject matter based on our limited assurance engagement. We conducted our limited
assurance engagement in accordance with the International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements
Other Than Audits or Reviews of Historical Financial Information (“ISAE 3000”) accredited by International Auditing and Assurance Standard
Board. This Auditing Standard requires that we comply with relevant ethical requirements and plan and perform the assurance engagement in
order to state whether, on the basis of the procedures described, anything has come to our attention that causes us to believe that the subject
matter is not presented fairly, in all material respects.
Our procedures included but were not limited to the following;
•Gaining an understanding of the greenhouse gas reporting processes supporting the business activities
•Conducting interviews and collation of evidence to understand the processes and controls supporting the data
•Checking that methodologies have been correctly applied as per the requirements in the ISO 14064-1
「Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals」
•Testing the calculations performed by the Company
•Undertaking analytical review procedures to support the reasonableness of the data
•Identifying and testing assumptions supporting the calculations
•Testing on a sample basis to underlying source information to ensure completeness and accuracy of data
•Where energy produced and energy consumed data is obtained from the GHG data system, we have checked data flow/transcription in
this system and/or the greenhouse gas and energy reporting inventory
•Reviewing the appropriateness of the presentation of information
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Appendix
Our procedures did not include checking the metering configuration within the Company’s system at the Company’s facilities or checking of
calculations or assumption used with the GHG data system.
Our procedures were designed to obtain a limited level of assurance on which to base our conclusions. The procedures performed depend on
the auditor’s judgment including the risk of material misstatement of the subject matter, whether due to fraud or error. While we considered the
effectiveness of management’s internal controls when determining the nature and extent of our procedures, our limited assurance engagement
was not designed to provide assurance on internal controls. We believe that the evidence we have obtained is sufficient and appropriate a basis
for our conclusion.
Use of our Report
This report has been prepared for the purpose set out above and for distribution to the management and directors of the Company. We disclaim
any assumption of responsibility for any reliance on this assurance report or on the subject matter to which it relates, to any person other than
management and directors of the Company, or for any purpose other than for which it was prepared.
Independence, Competence and Experience
In conducting our assurance engagement we have met the independence requirements of Code of Ethics for Professional Accountants prepared
by IESBA1, IFAC. We have the required competencies and experience to conduct this assurance engagement.
Limited Assurance Conclusion
Based on our limited assurance procedures, nothing has come to our attention that causes us to believe that the Company’s total greenhouse
gas emissions for the Korean and International facilities and sites under the Company’s operational control from the year started 1 January 2009
to the year ended 31 December 2011, as presented in its report 2012, is not presented fairly in all material respects in accordance with the
criteria detailed above.
Emissions scope
2009
2010
2011
Direct Emission (scope 1)
18,941
29,045
28,340
Indirect Emissions (scope 2)
35,550
33,909
37,808
Other Indirect Emissions (scope 3)
158,438
189,970
177,081
Total
212,929
252,924
243,229
Ernst & Young
Seoul
December 2012
¹ the International Ethics Standards Board for Accountants (“IESBA”), an independent standard-setting body within the International Federation of Accountants (IFAC)
Independent Assurance Report of Greenhouse Gas Emissions
83
Glossary
Term
Description
Burj Khalifa
The Burj Khalifa, which was built by the Engineering & Construction Group of Samsung C&T Corporation with experiences in constructing the Petronas Twin Towers in Malaysia, is the world’s tallest building over 800m tall of 170 floors. Fitting with its reputation as the tallest in the world, its total
floor space reaches 495,867.77㎡, 56 times area of Jamsil Sports Complex located in Seoul. The mega-scale project, which had been ongoing for
59 months since February 2005, achieved a three-day per floor cycle with all special equipment including mega tower cranes, high-speed elevators
and high-pressure concrete pumps. In May 2007, the Burj Khalifa set a new world record for vertical concrete pumping at 452 m (1,483 ft), surpassing the existing record of about 450m.
Fugitive dust
Dust directly emitted to the atmosphere without passing through specific vents at construction sites
Atypical structure
Structure in unique type and appearance with curved or straight lines and curved or straight surfaces being crossed, unlike existing box-shaped
buildings
Samsung OHSMS(Occupational A system that induces the business division, construction site and partner companies to establish and strictly comply with consistent plans and
Health and Safety Management policies on occupational safety and health management. For OHSMS, Samsung analyzes major accidents, hazardous tasks and implementations in
System)
the past 5 years. Major criteria for OHSMS implementation include task safety guideline, safety management system of partner companies, standard
of construction equipment work planning, implementation standard when work plan changes, etc.
Asbestos
Asbestos is a fibrous shaped naturally occurring silicate mineral mainly used for construction materials. This is classified as a human carcinogen.
Slag
A byproduct generated during the process of refinement of metal or ore, metal manufacture or combustion of other metals. The slag floats on top
of melted metal surface to prevent the metal surface oxidation. Slag generated in the process of steel manufacturing is categorized as blast furnace
slag and steel-making slag. The two types are used as the raw materials for cement, concrete, materials for pavement finish, and phosphate fertilizer.
Semi Shield
The semi shield is the up-to-date construction method for tunnel construction wherein the steel cylindrical excavator (Shield machine) is injected into
a work pit to excavate the tunnel by repeating the work of indentation driving the hydraulic jacket on the rear side of the Semi-Shield machine. The
method has been developed to minimize noise, dust, ground subsidence and environmental damage caused by the traditional open-cut method.
Renewable Energy
Refer to new energies such as hydrogen, fuel cell and coal liquefaction gas and renewable energies such as solar power, photovoltaic, bio-energy,
wind power, hydro, geothermal and biogas.
Ascon
Refer to asphalt plus concrete. Mixture of asphalt and aggregate (sand, gravel) or pavement filler (silica flour, mineral filler) at high temperature or
room temperature.
Organizing
A business model that creates profit by providing a comprehensive solution to a client through its financial and legal services or through a partnership with construction or O&M firms after finding business items from personal networks, government policies, and industrial trend changes
Greenhouse Gas
Refer to gases inducing greenhouse effects, which include CO, CH4, N₂O, PFCs, HFCs, and SF6 defined by WRI/WBCS
Greenhouse Gas Inventory
A list quantifying greenhouse gas emission and emission source of an organization.
Materiality Assessment
A comprehensive analysis on issues derived from stakeholders’ communications and internal issues related to sustainable management according
to the order of priority
NOx(Nitrogen Oxides)
Nitrogen oxide which is generated in the process of combustion, manufacturing or processing and emitted to the atmosphere
Trading
A business model that creates profit by providing information, maintaining relationship with trading parties, making loans, stockpiling, and other risk
taking activities after identifying business opportunity from the imbalance between demand and supply of commodities.
The Petronas Towers
As the twin towers of 451.9m in height built by the Engineering & Construction Group of Samsung C&T Corporation in Kuala Lumpur, Malaysia, it was
completed in 1998 and regarded as the tallest buildings in the world until surpassed by Taipei 101 in Oct. 17th 2003. Even after the completion of the Thai
Pei 101, the towers have been maintained as the world’s tallest twin towers.
Project Financing
The long-term financing of projects based upon the projected cash flows of the project rather than from the general assets or creditworthiness of the
project sponsors
Environmental Impact Assessment
An assessment of the possible impact that a proposed project may have on the environment. The system reviews, analyzes and evaluates measures proposed to maximize the potential of environmentally sound and sustainable developments while minimizing the environmental destructions.
Sox (Sulphur Oxides)
Sulfur or mixtures generated during the process of combustion, manufacture or processing emitted to atmosphere
Rare Metal
Refer to the following materials:
Materials with limited reserves in their rare form
Metal materials with large reserve base but little economic values
Metal material of which price is high and likely to surge
Metal materials with industrial demand and the potential increase in demand
Materials only excavated in specific regions
Metal materials with risks in supply as a specific nation imports all quantity of the materials
Building Information Modeling
3-Dimensional design method
CDP (Carbon Disclosure Project) The global climate change project which has been conducted in over 60 nations worldwide by Carbon Disclosure Project, an independent not-forprofit organization based in the UK
CM (Construction Management) A method to coordinate communications among client, architect and constructor with all or partial process of construction project entrusted, and
systematically manage the quality, cost and schedule in order to help generate the best benefit for client
EDCF (Economic Development
Cooperation Fund)
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Appendix
The fund established in 1987 with the purpose of promoting economic cooperation between Korea and developing countries and assisting them by providing funding for their industrial development and economic stability
Term
Description
EPC (Engineering, Procurement & A form of contracting agreement under which the contractor deals with all procedures such as design, procurement and construction
Construction)
GGBA (Green & Gracious Builder Certification to environmentally-friendly construction companies awarded by Building and Construction Authority(BCA) of Singapore
Award)
GIS (Geographic Information
System)
A system designed to capture, store, manipulate, analyze, manage, and present all types of geographical data
Greenship
Greenship Certification created by the Green Building Council of Indonesia
Greenmark
Green building certification enforced by Building and Construction Authority of Singapore. which is one of the most recognized green building certification systems along with LEED of the USA and BREEAM of the UK
GRI (Global Reporting Initiative)
A non-profit organization which provides all companies and organizations with a comprehensive sustainability reporting framework that is widely used
around the world.
HSE
An abbreviation of the term Health, Safety and Environment.
IFRS (International Financial
Reporting Standard)
A set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements.
IFRS are issued by the International Accounting Standards Board.
IPP (Independent Power Plant)
A method to construct a plant by investing with private funds, and retrieve the investment through power purchase agreement
ISO 14001
The Environmental Management System standard which specifies the requirements for the formulation and maintenance of an EMS to continuously
improve the environment
KOSHA 18001
Self-regulated safety and health system to systematically prevent disaster and reduce corporate loss through the activities by a business owner such
as incorporating safety and health policy into the self-regulated management policy, setting up detailed implementation guidelines and standards,
and regularly conducting a self-assessment of the safety and health plan implementation.
KPI (Key Performance Indicator)
A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their strategic and operational
goals
LEED (Leadership in Energy and Internationally recognized green building certification system developed by US Green Building Council
Environmental Design)
NCSI (National Customer Satisfaction Index)
An index of customer-satisfaction level of the products and services offered in Korea and abroad, and sold to domestic end-users
NEBOSH (National Examination An independent examining board formed in 1979 to meet the health, safety, environmental and risk management needs. There are over 30 educaBoard in Occupational Safety and tion organizations worldwide and approximately 30,000 candidates enroll in the courses and take the qualification exams in over 80 countries annuHealth)
ally.
Off-take
An agreement to purchase portions of resources to be generated in the future. An off-take agreement has exclusive rights to handle production
materials before the development.
OHSAS 18001
A standard which sets out the minimum requirements for occupational health and safety management best practice in order to help all kinds of
organizations recognize and constantly manage risk factors for preventing industrial accidents
PPP (Public-Private Partnership) A method under which social infrastructures facilities are constructed with private fund and the facilities are managed by private sector company
Pre-Con
(Pre-Construction Service)
Pre-construction services are used in planning a construction project before the actual construction begins. Those include engineering review, technical feasibility analysis, construction period calculation, and budgeting.
PM (Project Management)
A method of construction administration to manage 4 elements such as project scope, process, quality and cost to meet all potential requirements
during whole processes of construction.
SOC (Social Overhead Capital)
Social Overhead Capitals like roads, ports and railroads which are not directly used in productive activities but essential to smoothly run economic
activities
TOE (Tonnage of Oil Equivalent)
Unit of energy: the amount of energy released by burning one tonne of crude oil.
UNGC (UN Global Compact)
A United Nations initiative to encourage businesses worldwide to adopt sustainable and socially responsible policies, and to improve the international
ethics. It regulates the responsibilities of an organization in the areas of human rights, labour, the environment and anti-corruption
Glossary
85
Organization Chart and Association Membership
Organization Chart
Engineering & Construction Group
CEO
Trading & Investment Group
CEO
Building Business Unit
Corporate Planning Division
Civil Infrastructure Business Unit
Management Support Division
Plant Group
Human Resources Division
Residential Business Unit
Legal Support Division
Urban Development Division
Chemicals Division
Americas RHQ
Global Marketing Business Unit
M&E Engineering Center
Steel Division
Europe RHQ
Construction Technology Center
China RHQ
Q-HSE Management Division
Southeast Asia/Oceania RHQ
Industrial Materials Division
Energy & Minerals Division
Global Procurement Center
Corporate Management Division
Africa/Middle East RHQ
Project Management Office
Japan RHQ
Plant & Machinery Division
Green Energy Team
Association Membership
The Society Environmental Construction
Korea Business Council for Sustainable Development
(KBCSD)
Korean Society of Hazard Mitigation
Construction Association of Korea
Energy & Mineral Resource Development Association of the Korea Institute of Ecological Architecture and Environment
Ministry of Knowledge and Economy
Architectural Institute of Korea
Korea Plant Industries Association
The Korean Society for Noise and Vibration Engineering
International Committee of Korea Chamber of Commerce & The Korea Gas Union
Industry
The Korean Society for Renewable Energy
Korea Electric Association
Korea Federation of Construction Contractors
Korea Women’s Society of Architects & Engineers
Korean Society of Civil Engineers
Korea Air Cleaning Association
Korea Atomic Industrial Forum
Korean Society of Environmental Engineers
Korea Green Building Council
Korean Nuclear Society
American Concrete Institute (ACI)
Korea Management Association
Korea Housing Association
American Society of Civil Engineers (ASCE)
Korea National Committee on Large Dams
Korean Solar Energy Society
Building Smart Korea
Korea Road & Transportation Association
The Korea Society of Environmental Restoration Technology
Architectural Institute of Japan
Korea Remodeling Association
Korea-Japan Economic Association
Japan Concrete Institute (JCI)
The Korea International Trade Association
Korea-Japan Cooperation Foundation for Industry and
Technology
The Federation of Korean Industries
Korean Society on Water Quality
International Contractors Association of Korea
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Appendix