Samsung C&T has decided to suspend all new coal-related investment, construction and trading projects, and withdraw existing projects sequentially following completion and termination of contracts.
The decision was made at the company’s meeting of the board of directors on Oct. 27. Samsung C&T has established an ESG strategy system focusing on six non-financial areas (labor/human rights, environment/safety, co-prosperity, compliance, information protection, and social contribution) based on ISO 26000, an international standard on corporate social responsibility management.
Samsung C&T has been making all-out efforts to create value with society that strengthens social responsibility in the entire process of climate change.
The Governance Committee, which consists of all outside directors, comprehensively reviewed various factors on Sept. 23 such as intergovernmental relations, customer/partner trust, and construction technology regarding whether to participate in Vietnam's Vung Ang 2 coal-fired power generation project, and presented opinions on participating in the project, and on Oct. 23, it discussed in depth the company-wide plan to pull out of the coal business.
Following the results of the discussion by the Governance Committee, the board of directors decided on a coal-exit policy that completely suspends new businesses related to coal in order to comply with the company's eco-friendly management policy and to participate in efforts to cope with global climate change risks.
Noting that Samsung C&T will contribute to the transformation of greenhouse gases into a low-carbon society by reducing greenhouse gas emissions and establish a cyclical economy system by increasing efficiency in the use of resources, an official of the company said, "We plan to strengthen eco-friendly management by continuously making efforts to find and expand eco-friendly products and services."