Appendix
58.59
APPENDIX
Samsung Securities Report 2013
60.61
Appendix
INDEPENDENT ASSURANCE REPORT
To the Stakeholders of Samsung Securities
Korea Productivity Center (KPC) are requested by Samsung Securities Co., Ltd. (Samsung Securities) to perform independent assurance
on the information specified in 2013 Samsung Securities’ Sustainability Report (Report) and hereby present our assurance statements.
Responsibility and Independence
Samsung Securities entitles full responsibility for the information and opinions specified in the Report. KPC is responsible for the
assurance statement on the Report. As an independent assurance agency, KPC was neither involved in the preparation of the report nor
maintains any relationship that can undermine its state of independence.
Assurance Standard
The following assurance process was performed in accordance with Type 1 and Moderate level of the AA1000AS(2008) Assurance
Standard. KPC verified the suitability of inclusivity, materiality, and responsiveness based on the AA1000APS(2008) Assurance Principle.
Moreover, KPC checked whether the Report was prepared in compliance with GRI G3.1 Guideline.
Limitations
In accordance with the above assurance standard, KPC performed assurance on Samsung Securities’ performances in 2013. The
assurance agency did not perform verification on some of the data such as financial performances and information on homepage.
Furthermore, on-site inspection was limited to the headquarter in Seoul, Republic of Korea, and the result may change if further
assurance process is performed.
Methodology
KPC performed assurance on the Report by using the methodology listed below:
3.Responsiveness: Response Toward Issues
The principle of responsiveness articulates that organization should be responsive to issues that can have impacts on stakeholders’
performances. Samsung Securities identified stakeholders’ key expectations, engaged in responsive activities, and presented relevant
information in the Report. In particular, Samsung Securities is appropriately reporting 2013 responsive activities on key issues such
as corporate governance, risk management, ethical management, customer rights, organization culture, and contribution to local
community. In the future, reporting a background and necessity of each issue may be needed to show characteristics and changes in
Samsung Securities’ major activities.
Recommendation
KPC commends Samsung Securities’ effort and performance to improve its sustainability and provides the following recommendations
to improve on future sustainability reports and sustainability management:
1.We recommend Samsung Securities to consider factors that affect financial performance in addition to social and environmental
factors during the material test. If Samsung Securities can portray in the report that its key issues are related not only to the social
responsibilities but also to the company’s financial performances, its value of sustainability report will be appreciated as a form of an
integrated report.
2. It is necessary to approach Samsung Securities’ internal activities in different perspectives. We recommend Samsung Securities to
report whether the repeated issues require separate considerations or reviews each year and any activity that the company initiated
regarding the repeated issues. By doing this, Samsung Securities can present its diverse effort to increase the sustainability.
3. It is necessary to analyze the effects of issues drawn from the material test on Samsung Securities and society. The analysis
makes internal discussions regarding responsive activities possible and it can set Samsung Securities’ direction of social responsibility
management. We recommend these series of activities to be presented in the Report.
1.Reviewing the reporting coverage and descriptions on each indicator in GRI G3.1 Guideline to verify whether the requirements for
the GRI Application level A are met.
2.Verifying the compliance of the principles on the content and quality of the Report using GRI G3.1 Guideline.
3.Implementing media research and benchmarking analysis to check the selection of material issues and the appropriateness of
descriptions in the Report.
4.Comparing and analyzing the content of the Report with other reports from different sources to check the appropriateness and
errors in depiction of the content.
5.Conducting on-site inspection on the headquarter in Seoul, Republic of Korea, to verify the source of major data and information
and to check the internal process and system.
Findings and Conclusion
KPC verified that the Report fairly and accurately reflects Samsung Securities’ sustainability management activities and performances.
Furthermore, the assurance finds that the Report meets the requirements of GRI Application level A as claimed by Samsung Securities.
The assurance conclusion on the AA1000(2008) principles of inclusivity, materiality, and responsiveness AA1000(2008) is as follows:
1.Inclusivity : Stakeholder Participation
The principle of inclusivity articulates that organization should involve stakeholders in the process of developing and achieving
responsible and strategic response to sustainability. Samsung Securities proves to have an effective communication system by
operating a communication channel to take in diverse opinions from customer-based stakeholders. The company recognized
stakeholders’ needs by observing issues that were raised in each channel. Moreover, Samsung Securities strived to apply these needs
into management.
2.Materiality : Significant Issue Identification and Reporting
The principle of materiality states that organization should determine issues that are relevant and material to both the organization and
its key stakeholders. KPC found that Samsung Securities used internal and external environment analysis to recognize and understand
key sustainability issues. In this process, it is necessary to widen discussions with departments that are related to each issue. KPC
recommends Samsung Securities to present the objective and performance of each issue and to build an internal reporting system to
continue reporting key issues drawn from the materiality test.
April, 2014
Korea Productivity Center
Hong Jin
Chairman
Dong Soo Kim
Director
Yang Ho Lee
Team Leader
Seung Tae Jung
Researcher
The Sustainable Management Center of Korea Productivity Center is an assurance agency certified by AccountAbility, an institution
that establishes global international standards AA 1000 for stakeholder participation and verifications, thereby qualified to conduct
assurance on an independent basis. Moreover, our Assurance Committee is consisted of competent experts, who have ample
experiences in sustainability management consulting and assurance and have completed relevant professional training.
Samsung Securities Report 2013
GRI INDEX
Classification
Index
62.63
Appendix
Fully Reported
Details
Page
Partially Reported
Disclosure
Level
Non-reported
Report of Samsung Securities
Report Profile
Classification
Index
Details
Page
Disclosure
Level
Report of Samsung Securities
Economic Performance Indicators
Strategy and
1.1
Statement from the most senior decision maker of the organization
8~10
Letter from the CEO
DMA
Analysis
1.2
Description of key impacts, risks, and opportunities
22~23
Our Stakeholders & Issues
Economic
Management approach to create economic performances
16~19
Business Overview
EC1
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other
community investments, retained earnings, and payments to capital providers and governments
14
Organizational
2.1
Name of the organization
66
Corporate Information
performances
Financial Highlight &
Economic Flow
Profile
2.2
Primary brands, products, and/or services
16~19
2.3
Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures
66
Business Overview
EC2
Financial implications and other risks and opportunities for the organization’s activities due to climate change
38
For the Community
Organizational Chart
EC3
Coverage of the organization’s defined benefit plan obligations
34
2.4
Location of organization’s headquarters
For the Employees
66
Corporate Information
EC4
Significant financial assistance received from government
-
2.5
None
Number of countries where the organization operates, and names of countries with either major operations or that are specifically
relevant to the sustainability issues covered in the report
66
Corporate Information
Market pres-
EC5
Range of ratios of standard entry-level wage by gender compared to local minimum wage at significant locations of operation
-
ence
EC6
Policy, practices, and proportion of spending on locally based suppliers at significant locations of operation
-
N/A
2.6
Nature of ownership and legal form
66
Corporate Information
Not applicable due to the
nature of the business
2.7
Markets served (including geographic breakdown, sectors served, and types of clients/beneficiaries)
66
Corporate Information
EC7
Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation
-
N/A
2.8
Scale of the reporting organization
50~57,
66
Financial Information,
Corporate Information
Not applicable due to the
nature of the recent businesses
Indirect eco-
EC8
For the Community
Significant changes during the reporting period regarding size, structure, or ownership
-
None
nomic impacts
Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind,
or pro bono engagement
36~37
2.9
2.10
Awards received in the reporting period
12~13
Awards received in 2013
EC9
Understanding and describing significant indirect economic impacts, including the extent of impacts
36~37
For the Community
Reporting period (e.g., fiscal/calendar year) for information provided
0
Reporting Period
3.2
Date of most recent previous report (if any)
67
Recent Report
3.3
Reporting cycle (annual, biennial, etc.)
0
Significance of the Report
3.4
Contact point for questions regarding the report or its contents
66
Corporate Information
3.5
Process for defining report content
22~23
Our Stakeholders & Issues
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for
further guidance
0
Reporting Scope
3.7
State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope)
0
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect
comparability from period to period and/or between organizations
0
Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to
the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from,
the GRI Indicator Protocols
38
Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement
(e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods)
-
3.11
Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report
-
None
3.12
Table identifying the location of the Standard Disclosures in the report
62~65
GRI Index
3.13
Policy and current practice with regard to seeking external assurance for the report
60~61
Independent Assurance Report
4.1
Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such 25~26
as setting strategy or organizational oversight
Corporate Governance
Diversity and
LA13
Equal Opportu-
and Engage-
4.2
Indicate whether the Chair of the highest governance body is also an executive officer
25~26
Corporate Governance
nity
ment
4.3
For organizations that have a unitary board structure, state the number of members of the highest governance body that are
independent and/or non-executive members
25~26
Corporate Governance
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body
25~26
Corporate Governance
Human Rights Performance Indicators
4.5
Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure
arrangements), and the organization's performance (including social and environmental performance)
25~26
Corporate Governance
DMA
4.6
Processes in place for the highest governance body to ensure conflicts of interest are avoided
25~26
Corporate Governance
Investment and HR1
4.7
Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its
committees, including any consideration of gender and other indicators of diversity
25~26
Corporate Governance
4.8
Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social
performance and the status of their implementation
1~7
Client-oriented Management
4.9
Procedures of the highest governance body for overseeing the organization's identification and management of economic,
environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally
agreed standards, codes of conduct, and principles
25~26
Corporate Governance
4.10
Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and
social performance
25~26
4.11
Explanation of whether and how the precautionary approach or principle is addressed by the organization
4.12
Report Param- 3.1
eters
3.9
Labor Performance Indicators
Management approach to create social (labor) performances
33
For the Employees
LA1
Total workforce by employment type, employment contract, and region, broken down by gender
35
For the Employees
LA2
Total number and rate of new employee hires and employee turnover by age group, gender, and region
35
For the Employees
LA3
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations
35
For the Employees
Labor Manage- LA4
Percentage of employees covered by collective bargaining agreements
34~35
For the Employees
Reporting Scope
ment Relations LA5
Minimum notice period (s) regarding significant operational changes, including whether it is specified in collective agreements
34~35
For the Employees
Reporting Scope
Occupational
LA6
Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and
advise on occupational health and safety programs
34~35
For the Employees
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender
34~35
For the Employees
LA8
Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community 34~35
members regarding serious diseases
For the Employees
DMA
Employment
health and
For the Community
safety
LA9
Health and safety topics covered in formal agreements with trade unions.
34~35
For the Employees
Training and
LA10
Average hours of training per year per employee by gender, and by employee category
33
For the Employees
education
LA11
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in
managing career endings
34
For the Employees
LA12
Percentage of employees receiving regular performance and career development reviews, by gender
35
For the Employees
Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority
group membership, and other indicators of diversity
25~26,
35
Corporate Governance,
For the Employees
LA14
Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation
33
For the Employees
LA15
Return to work and retention rates after parental leave, by gender
35
For the Employees
Management approach to create social (human rights) performances
33
For the Employees
Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights
concerns, or that have undergone human rights screening
33~35
For the Employees
HR2
Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken 33~35
For the Employees
HR3
Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations,
including the percentage of employees trained
33~35
For the Employees
Nondiscrimination
HR4
Total number of incidents of discrimination and corrective actions taken
-
None
Freedom of
association
and collective
bargaining
HR5
Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be
violated or at significant risk, and actions taken to support these rights
33~35
For the Employees
Corporate Governance
27~29,
44~47
Risk Management, Risk and
Capital Adequacy
Child labor
HR6
Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to
the effective abolition of child labor
34
For the Employees
Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes
or endorses
0
CDP signed institutes
HR7
Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to
contribute to the elimination of all forms of forced or compulsory labor
34
For the Employees
4.13
Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the
organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond
routine membership dues; or * Views membership as strategic
0
Incorporated into DJSI
Forced and
compulsory
labor
Security
practices
HR8
Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are
relevant to operations
35
-
For the Employees
4.14
List of stakeholder groups engaged by the organization
22~23
Our Stakeholders & Issues
Total number of incidents of violations involving rights of indigenous people and actions taken
Basis for identification and selection of stakeholders with whom to engage
22~23
Our Stakeholders & Issues
Indigenous
rights
HR9
4.15
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group
22~23
Our Stakeholders & Issues
Assessment
HR10
Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments
-
4.17
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those
key topics and concerns, including through its reporting
22~23
Our Stakeholders & Issues
Remediation
HR11
Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms
34
3.10
Governance,
-
Commitments,
None
procurement
practices
N/A
Not applicable due to the
nature of the business
N/A
Not applicable due to the
nature of the business
For the Employees
Samsung Securities Report 2013
64.65
Appendix
GRI INDEX
Classification
Index
Details
Page
Disclosure
Level
Report of Samsung Securities
Classification
Index
Details
Page
Disclosure
Level
Report of Samsung Securities
Society Performance Indicators
DMA
Management approach to create social (human rights) performances
36
For the Community
Emissions,
EN16
Total direct and indirect greenhouse gas emissions by weight
38
For the Community
Percentage of operations with implemented local community engagement, impact assessments, and development programs
36~37
For the Community
Effluents,
EN17
Other relevant indirect greenhouse gas emissions by weight
38
For the Community
and Waste
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved
38
EN19
Emissions of ozone-depleting substances by weight
-
N/A
Not applicable due to the
nature of the business
EN20
NOx, SOx, and other significant air emissions by type and weight
-
N/A
Not applicable due to the
nature of the business
EN21
Total water discharge by quality and destination
-
N/A
Not applicable due to the
nature of the business
EN22
Total weight of waste by type and disposal method
38
EN23
Total number and volume of significant spills
-
N/A
Not applicable due to the
nature of the business
Not applicable due to the
nature of the business
EN24
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally
N/A
Not applicable due to the
nature of the business
Not applicable due to the
nature of the business
EN25
Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting
organization's discharges of water and runoff
-
N/A
Not applicable due to the
nature of the business
Products and
EN26
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation
38
Services
EN27
Percentage of products sold and their packaging materials that are reclaimed by category
-
N/A
Not applicable due to the
nature of the business
Compliance
EN28
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations -
N/A
None
Transport
EN29
Significant environmental impacts of transporting products and other goods and materials used for the organization's operations,
and transporting members of the workforce
38
For the Community
Overall
EN30
Total environmental protection expenditures and investments by type
-
Non-reported
Local
communities
SO1
Corruption
SO2
Percentage and total number of business units analyzed for risks related to corruption
30
Ethical Management
SO3
Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority
group membership, and other indicators of diversity.
30
Ethical Management
SO4
Actions taken in response to incidents of corruption
30
Ethical Management
SO5
Public policy positions and participation in public policy development and lobbying
36
For the Community
SO6
Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country
-
None
Anti-Competitive SO7
Behavior
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes
-
None
Compliance
SO8
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations
-
Community
SO9
Operations with significant potential or actual negative impacts on local communities
-
N/A
SO10
Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local
communities
-
N/A
Public Policy
Client health
Percentage of operations with implemented local community engagement, impact assessments, and development programs.
31
PR1
Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of
significant products and services categories subject to such procedures
-
N/A
Not applicable due to the
nature of the business
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
-
N/A
Not applicable due to the
nature of the business
PR3
Type of product and service information required by procedures, and percentage of significant products and services subject to such
information requirements
16~19
Business Overview
PR4
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and
labeling, by type of outcomes
-
None
PR5
Practices related to client satisfaction, including results of surveys measuring client satisfaction
31~32
Customer Satisfaction
PR6
Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising,
promotion, and sponsorship
30
Ethical Management
and safety
Product and
service labeling
Marketing
Customer Satisfaction
PR7
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship by type of outcomes
-
None
Client Privacy
PR8
Total number of substantiated complaints regarding breaches of client privacy and losses of client data
32
Customer Satisfaction
Compliance
PR9
Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services -
Materials
Energy
Water
Biodiversity
Management approach to create product and service performances
16~19
Business Overview
FS1
Policies with specific environmental and social components applied to business lines
9,
16~19
Letter from the CEO,
Business Overview
FS2
Procedures for assessing and screening environmental and social risks in business lines
45~47
Risk and Capital Adequacy
FS3
Processes for monitoring clients' implementation of and compliance with environmental and social requirements included in
agreements or transactions
27~29,
30,
45~47
Risk Management,
Ethical Management,
Risk and Capital Adequacy
FS4
Process (es) for improving staff competency to implement the environmental and social policies and procedures as applied to
business lines
30~33
Ethical Management,
Customer Satisfaction,
For the Employees
FS5
Interactions with clients/investees/business partners regarding environmental and social risks and opportunities
16~19
Business Overview
FS6
Percentage of the portfolio for business lines by specific region, size, (e.g. micro/SME/large) and sector.
16~17
Business Overview
FS7
Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose 38,
41~44
For the Community,
Business Performance
FS8
Monetary value of products and services designed to deliver a specific environmental benefit for each business line broken down
by purpose
38,
41~44
For the Community,
Business Performance
FS9
Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures
25~29,
45~47
Corporate Governance,
Risk Management,
Risk and Capital Adequacy
DMA
Service Impact
None
Environmental Performance Indicators
Management approach to create environmental performances
For the Community
Additional Indicators for Financial Services Sector
Product and
communications
DMA
For the Community
None
Product Responsibility Performance Indicators
DMA
For the Community
38
For the Community
EN1
Materials used by weight or volume
38
For the Community
EN2
Percentage of materials used that are recycled input materials
-
EN3
Direct energy consumption by primary energy source
38
For the Community
EN4
Indirect energy consumption by primary source
38
For the Community
EN5
Energy saved due to conservation and efficiency improvements
38
For the Community
EN6
Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a
result of such initiatives
38
For the Community
FS10
Percentage and number of companies held in the institution's portfolio with which the reporting organization has interacted on
environmental or social issues
38
For the Community
EN7
Initiatives to reduce indirect energy consumption and reductions achieved.
38
For the Community
FS11
Percentage of assets subject to positive and negative environmental or social screening
27~30
EN8
Total water withdrawal by source
38
For the Community
Risk Management,
Ethical Management
EN9
Water sources significantly affected by withdrawal of water
-
N/A
Not applicable due to the
nature of the business
FS12
Voting polic (ies) applied to environmental or social issues for shares over which the reporting organization holds the right to vote
shares or advice on voting
25~26,
36~38
Corporate Governance
For the Community
EN10
Percentage and total volume of water recycled and reused
-
N/A
Not applicable due to the
nature of the business
FS13
Access points in low-populated or economically disadvantaged areas by type
36~38
For the Community
FS14
Initiatives to improve access to financial services for the disadvantaged
36~38
For the Community
EN11
Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside
protected areas
-
N/A
Not applicable due to the
nature of the business
Product
FS15
Policies for the fair design and sale of financial products and services
30
Ethical Management
Responsibility
FS16
Initiatives to enhance financial literacy by type of beneficiary
36~38
For the Community
EN12
Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity
value outside protected areas
-
N/A
Not applicable due to the
nature of the business
EN13
Habitats protected or restored
-
N/A
Not applicable due to the
nature of the business
EN14
Strategies, current actions, and future plans for managing impacts on biodiversity
-
N/A
Not applicable due to the
nature of the business
EN15
Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of
extinction risk
-
N/A
Not applicable due to the
nature of the business
N/A
Not applicable due to the
nature of the business
Society