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CEO Message
Corporate Governance
Samsung Engineering at a Glance
Sustainability Framework
Stakeholder Engagement
Materiality Test
02 —
Approach to Sustainability
Material Issue 1. Risk Management
Material Issue 2. Enhancement of Safety &
Health Control
Material Issue 3. Eco-friendly Value Chain
Material Issue 4. Fostering Global Talent
Material Issue 5. Expanding Global Outreach
[Special Report] Creating Shared Value
through Plant Construction
14 —
Sustainability Progress
2014 Sustainability Performance
Creation of Economic Value
Ethics & Compliance
Safety & Environment
Employees & Workplace
Supply Chain
Local Community
40 —
Company Profile
Financial Statement
GRI Index
Assurance Statement
68 —
This Report
Reporting Period

This report covers Samsung Engineering’s performance and activities from January through December 2014. When necessary,
it also provides trends in time series utilizing data from the three
most recent fiscal years (from January 2012 through December
2014). As for some issues of significance, this report includes data
as recent as May 2015.
Reporting Boundary and Scope

In principle, we aimed to report on all aspects of Samsung Engineering’s domestic and overseas business areas (including project
sites), as well as those of its subsidiaries. Supplier performance
data was also included for some data and separately stated.
Reporting Content

This report is structured in two parts: Approach to Sustainability,
which lists material issues of high significance to both Samsung
Engineering and our stakeholders, and Sustainability Progress,
which describes the quantitative data on our progress in economic, environmental, and social aspects. The transparency and
objectivity of the content was assured by a third party that has no
vested interest in the company. (Please see Independent Assurance Statement, p.84 - p.85)
Since 2011, Samsung Engineering has published annual sustainability reports on its plans and progress in promoting economic,
social, and environmental value. This marks its fourth report.
Compiled in accordance with the Core Options of the Global Reporting Initiative (GRI) G4 Guidelines, this report presents both
financial and non-financial performance results of the company,
shedding light on the correlation between the triple bottom line
and our impact on society.
02 032014 Samsung Engineering Sustainability Report
CEO Message
President & CEO
Choong Heum Park
Dear valued stakeholders,
I would like to express my deepest gratitude for your unwavering support and encouragement of
Samsung Engineering.
In 2014, the plant construction industry experienced a diffi cult year amid a fl uctuating business environment resulting from of a slowing global economy and falling oil prices. Despite these challenges,
however, Samsung Engineering managed to achieve meaningful results, landing new projects in Kuwait,
Iraq, Algeria, and Chile. In fact, we also advanced into the high-value added LNG liquefaction plant market with our Texas LNG Project in the U.S. Furthermore, we were able to turn a moderate profi t in 2014
that came about from our intensive project review and profi t & loss management efforts.
Over the past year, everyone at Samsung Engineering has devoted themselves to laying the groundwork for an economic rebound and putting the business fully back on track. To begin, we carried out an
overhaul of the project risk management system to bolster our capabilities for the effective prevention
and management of risks. Inter-functional seamless collaboration and cost effi ciency initiatives also
helped us increase our fundamental cost competitiveness. For the coming year, our primary goal is to
strengthen our business fundamentals so that we can attain our goals through comprehensive schedule management and process innovation. While we continue enhancing our profi tability with detailed
marketing strategies, we will make inroads into high value-added markets such as LNG liquefaction and
North American markets.
In addition, Samsung Engineering was active in terms of corporate social responsibility (CSR), maintaining diverse channels with its stakeholders on all its CSR activities. Always of key concern, safety remained at the top of our priority list in our organizational and management systems. We also continued
campaigns with employees and suppliers to establish a safety-fi rst corporate culture. Under the belief
that diversity throughout the workforce constitutes our unrivaled competitiveness, we will continue to
promote opportunities for developing global leaders and competencies. At the same time, we will do our
utmost to further our environmental management capabilities in all our business activities, and continue
to develop projects that lend our business acumen to numerous CSR activities. Finally, we will continue
to communicate with various stakeholders in communities where we operate to generate shared value
for all.
Looking ahead, the global economy does not appear to have a bright outlook for 2015. Moderate recovery in the U.S. economy does not seem to be backed up by growth in Europe or Japan, while emerging
markets are still mired in uncertainties and market instability. Added to this will be continuously falling
oil prices, which will almost certainly lead to delays in order placements for several projects and to
contractions in how much is actually invested, and yet all the while competition is only growing within
the industry. Fortunately, after refl ecting back on the past year’s performance and mistakes, Samsung
Engineering is now ready to make 2015 a banner year for all its stakeholders. As we stride towards
a brighter future and regain market confi dence through practical actions, we remain steadfast in our
belief that our business thrives when the community we operate in also thrives. As such, everybody at
Samsung Engineering will listen carefully to the voices of stakeholders, and do their utmost to further
our corporate value.
At this time I would like to humbly ask for your continued support and encouragement of our efforts to
bring about a more sustainable society for all.
Thank you.
Our sustainability is founded on the basis of transparency,
the respect for people and the environment, and the growth
of our partners. For us, this is the way of creating shared
value for our stakeholders.
04 052014 Samsung Engineering Sustainability Report
We uphold the rights of shareholders and other stakeholders by ensuring
transparent corporate governance and engaging in responsible management.
The goal of Samsung Engineering’s board of directors (BOD) is to increase the efficiency and transparency of management practices, while also strengthening the financial soundness of the company. At
Samsung Engineering, the CEO chairs the BOD in order to ensure timely and swift decision-making, as
well as seamless implementation of all final decisions. The BOD consists of three inside and four outside
directors to ensure transparency and independence in the decision-making process.
Composition of
the BOD
* As of May 2015
Directors Name Position Duties
Inside Choong Heum Park President & CEO, Samsung Engineering BOD Chairman, in charge of
corporate management
Myeong Soo Kim Head of Corporate Management, Samsung Engineering In charge of business
Hae Kyu Jeong Head of Business Support Division, Samsung
In charge of business
Outside Wan Seon Shin Professor, Systems Management Engineering,
Sungkyunkwan University
Providing advice on
business management and
administration in general
Sang Hoon Kim Professor, Business Administration, Kwangwoon
Ji Jong Chang Vice President, External Relations, Hannam University
Young Se Kim Head of Planning Office, Yonsei University
Corporate Governance Outside directors have the right to be provided all the relevant information regarding corporate manage-ment issues required for them to reach objective and rational decisions, as well as the right to make
decisions independent of the company, management board, or controlling interests under the Articles of
Incorporation. BOD operations fully abide by all provisions of the BOD by laws. Furthermore, the company’s individual operational regulations for each committee not only articulate the general operations
of each committee and the BOD, but also ensure the independence of the board. In 2014, the BOD convened nine meetings, including regular meetings, to deliberate on and resolve 14 agenda items. Outside
directors’ participation rate stood at 94 percent for the year.
Independence of the BOD
and Its Activities
Samsung Engineering operates five committees under the BOD—the Management Committee, Audit
Committee, Outside Director Recommendation Committee, Related Party Transactions Committee,
and Compensation Committee—all of which effectively serve the different needs of stakeholders in our
management activities. Established in April 2014, the Related Party Transactions Committee carries
out prior deliberation and resolutions on insider trading and financial transactions that exceed a certain
level in an effort to further enhance transparency with transactions concerning related parties and
corporate governance. Since March 2015, the Compensation Committee has worked towards setting up
sensible and transparent guidelines in determining remuneration for directors.
Committees of the BOD
No. of BOD Meetings No. of Agenda Items Addressed
9meetings 14items
2014 BOD Meetings
Composition and Functions of Committees
Management Committee Deliberating and
deciding on major
management issues
3 inside directors Choong Heum Park,
Myeong Soo Kim,
Hae Kyu Jeong
Audit Committee Auditing accounting
practices and business
activities, as well as
appointing external
3 outside directors Wan Seon Shin,
Sang Hoon Kim,
Ji Jong Chang
Outside Director
Recommendation Committee
outside director
2 inside directors,
3 outside directors
Choong Heum Park,
Myeong Soo Kim,
Wan Seon Shin,
Sang Hoon Kim,
Ji Jong Chang
Related Party
Transactions Committee
Deliberating and
deciding on transactions
with related parties
3 outside directors Wan Seon Shin,
Sang Hoon Kim,
Ji Jong Chang
Function Composition Directors
Deliberating and
deciding on the limits and
compensation payments
to registered directors
3 outside directors Wan Seon Shin,
Sang Hoon Kim,
Ji Jong Chang
* As of May 2015
Director Appointment
Inside director candidates are recommended by the BOD or shareholders, while outside director candidates are nominated by the Outside Director Recommendation Committee after taking into account
their experience and potential contribution to the company with their expertise in respective areas of
economic, social, legal and technical issues. The BOD and Outside Director Recommendation Committee review nominees’ qualifications before referring the appointment to the general shareholders’
meeting. Outside directors are restricted from holding more than two external positions, and those who
are major shareholders or affiliates of the company do not qualify to be appointed as outside directors.
BOD & Management
Performance Evaluation
and Compensation
At Samsung Engineering, compensation for directors and executives is carried out differentially depending on regular review results against business targets and performance evaluations. Outside directors
are not provided with any other compensation except a pre-determined wage and travel expenses for
BOD activities in order to protect their independence from the company. Each year, the compensation
limit is approved at the general shareholders’ meeting. The cap for 2014 was set at KRW 9 billion, with
only KRW 2.25 billion actually paid out. Executives are paid mainly in the form of annual base salaries and performance-based incentives based on individual performance evaluation results. Executives’
performance is evaluated in consideration of social risk management performance (safety, business
irregularities/corruption, security) as well as business results (sales, net profit, stock prices). Starting
in 2013, compliance performance was also added to the criteria of executive performance evaluations.
Approval / AppointmentRecommendation Review / Resolution
Inside directors: BOD
Outside directors: Outside Director Recommendation Committee
06 072014 Samsung Engineering Sustainability Report
New Orders (KRW in billions)
No. of employees
Order Backlog (KRW in billions)
No. of countries
Revenue (KRW in billions)
No. of projects
By the Numbers
Samsung Engineering specializes in plant engineering with know-how
and experience spanning four decades, all the way back to the 1970s,
when Korea’s engineering industry was just starting to grow at a rapid pace.
Looking ahead, we are determined to maintain sustained growth and
continue on our journey towards a better future for all.
Samsung Engineering
at a Glance
et al lu rg y In du st ria
l M
an uf ac tu rin
g• B
io -p ha rm ac eu tic
al Ai r P
ut ion
Pr eve
Wa ter
& W
t De sa lin
on •W
r R
id Water
ne •P
m er s• PD
Po ly si lic
on GOSP•Pipeline
En viro
nm ent
In du st ri al F
ac ili
s Pow
er Hydrocarbon Upstream
Pe tro
ch em ic al G
as Alkylation•Heavy Oil Upgrading
as Processing•LN
Fe rtil
Co al Ga sif
n• Fi ne C
he m ic al s * No. of countries and projects are cumulative.
08 092014 Samsung Engineering Sustainability Report
Sustainability Framework Our Response to Global Issues We will continually identify the impact of our business on the economic, environmental and social issues that the international community is facing, and constantly play a leading role in performing our social
responsibilities as a multinational company.
Management Structure
Guided by the corporate vision of becoming a ‘Creative Engineering Solution Provider’, we work hard to
create better future by achieving harmonious growth alongside our stakeholders. Established in 2011,
the CSR Offi ce sets the direction and scope of sustainability management measures that are befi tting
our business domains. It also singles out related issues to promote company-wide practices of these
initiatives by coordinating interdepartmental collaboration between our front and back offi ces, and fi les
reports on all progress and results to management. Another important function of the CSR Offi ce is to
raise company-wide awareness of sustainability management and maintain communication channels
with external stakeholders. 
Stricter regulations on
greenhouse gas emissions
Increasing damage from extreme
climate on business activities
Stricter regulations on water use
Diminishing chemical plant &
facilities investments
Declining investments
in emerging markets
Soaring commodity prices
Growing demand for job creation
Demand for increase in female and
disabled employment
Growing demand for improved
working conditions
Increasing demand for social
outreach activities
Global Economic
Poverty & Famine
Infringement on
Human Rights of
Social Minorities
Energy Resource
Climate Change Respect for
People and the
Samsung Engineering provides its utmost to create shared value with all its stakeholders,
society and the environment, while achieving substantial economic growth at the same time.
Future Directions ImpactGlobal Issues Areas
Ethics &
Supply Chain
Water Scarcity
Employees &
Safety &
Creative Engineering
Solution Provider
10 112014 Samsung Engineering Sustainability Report
Samsung Engineering makes use of diverse channels to communicate with
stakeholders so that we can effectively assuage any concerns they may
have and live up to their high expectations in performing our management
policies. With respect to our corporate social responsibility (CSR) activities,
we take a far-sighted approach and cooperate with all stakeholders.
Communication with
Samsung Engineering operates different channels for communication with each stakeholder group to
effectively serve their diverse needs. Their opinions and feedback are reflected in our management policy-making process, with all results being shared with our stakeholders. 
Management Policies to be Applied
Management Policies to be Applied
· General shareholders’
· IR activities
· Public announcements
· Industrial Relations Council
· Organizational Culture Office
· Employee satisfaction
· Intranet
· Newsletters, campaigns
· Regular meetings
· Corporate website
· Press releases
· Operation of global offices
· Training regional specialists and
conducting market research
· Social outreach activities
· Supplier satisfaction surveys
· Regular meetings
· Education & Support
· Joint safety checks
• On/Offline training programs
(on job competency-building and practical
three-dimensional design training)
• Programs supporting suppliers in recruiting talented
new employees
recruitment and
training programs
• Company-wide sharing of case studies to
prevent recurring errors
• Increasing quality checks on material & equipment
Reinforcement of
project execution
• Increasing safety leadership training for
project site supervisors
• Improving systems for evaluating the
performance of project site supervisors
• Increasing safety education and campaigns to
heighten safety culture within the organization
Stricter control
of on-site
safety & health
• Running a vocational training center in
Cochabamba, Bolivia
• Offering preferential job opportunities to
graduates from Bahrain Polytechnic
Recruitment and
training of
local employees
• Improving the quality/performance/design of
project site operator uniforms
• Collecting and reflecting employees’ opinion to
improve the quality of food and operation of the
cafeteria at the head office building
• Collecting and reflecting employees’ opinion for
shuttle bus service operations
• Appointment of Change Agents at
the company-wide level
• Programs for revitalizing the corporate culture
and launch of a Thank You campaign
• Establishing a system to support suppliers’
autonomous safety control practices through
quarterly joint safety checks with CEOs of suppliers
Supporting the
of safety control
• Seeking more bidding opportunities in the high
value-added North American LNG market by taking
advantage of our order intake from the Texas LNG FEED
(Front End Engineering Design)
into high
• Improving the net gearing ratio by 20 percent
(from 2013 levels)
Improved revenue
• Construction of Gangdong Youth Sports Center
• Strengthening the career development and
social independence of underprivileged
teenagers from local communities
• Carrying out volunteer activities at local
community centers
Engaging with
local communities
around the
• Publication of annual sustainability reports
• Addressing demands for disclosure on our sustainability
management results by government agencies, NGOs,
institutional investors, and the press
Publicizing our
and social
Stakeholder Engagement
· Client portal site
· Marketing channels at
each business unit
· Customer satisfaction
· HSE satisfaction surveys
12 132014 Samsung Engineering Sustainability Report
Sustainability issue lists are updated
every year based on the previous year’s
issues list, media research, industrial
benchmarking, and issues related to
Samsung Engineering from those presented in the GRI G4 Guidelines.
In 2014, we listed a total of 26 sustainability issues in seven areas, including
sustainable business operations, corporate governance, business ethics &
compliance, and safety & environment.
Step 1
Issue Pool
Analysis of business trends
in the industry
Media coverage analysis
Benchmarking global standards
(GRI G4, ISO 26000)
Samsung Engineering classifies our
stakeholders into five groups—clients,
employees, suppliers, shareholders,
local communities—and maintains individual channels for communication
with each group. Also, we run biennial surveys to better understand our
stakeholder expectations. In 2014, we
collected stakeholder opinions through
existing communication channels, and
analyzed all prime concerns regarding
our sustainability management activities.
Step 2
Collection of
Stakeholders’ opinions
Collecting feedback through
existing channels by each
(clients, employees,
suppliers, shareholders,
local communities)
Material issues are determined according to business impact and internal
strategic priorities (internal factors),
and stakeholder/social influence and
pressure (external factors). Relying
on a five-part materiality test, we determine internal factors based on the
direct/short-term financial impact and
relevance to our strategic goals. As for
external factors, we prioritized common
industrial issues, interests of external
stakeholders and social norms.
Step 3
Selection of
Material Issues
Analysis of stakeholder concerns
Analysis of business impact
Determining material issues
At Samsung Engineering, we define material issues as “key expectations
from a long-term perspective held by stakeholders who are directly or
indirectly related to Samsung Engineering’s scope of business.”
Our materiality test process applies international standards for
stakeholder engagement, the AA1000SES (2011), and is improved
upon every year.
Materiality Test Results of Materiality Test The materiality test finalized five material issues from among 26 key sustainability issues. In tandem with rising concerns related to both internal strategic approaches and external stakeholders, risk management and the enhancement of safety & health controls were listed as the top priority issues. At
the same time, the fostering of global talents and expansion of global outreach activities related to our
growing overseas operations were also seen as very relevant issues of high internal/external demand.
This report elaborates on our future plans and progress concerning the five material issues as identified
from the test.
Entrance into new business and markets
Process innovation
Risk management
Expansion of global operations
Quality management
Transparent corporate governance
Establishment of sustainability management system
Institutionalization of ethics and compliance
Fair transaction
Guarantee of human rights
Enhancement of safety & health control
Eco-friendly value chain
Response to climate change
Response to water risks
Preservation of biodiversity
Equal opportunity with employment and training
Active communication among employees
Fair performance evaluations and compensation
Fostering global talent
Improvement of working environment and welfare benefits
Fair selection and evaluation of suppliers
Support for and communication with suppliers
Promotion of suppliers’ sustainability activities
Expanding employees’ volunteer works
Expanding global outreach activities
Material Issues
Enhancement of
Safety & Health
Clients, employees,
p. 20 - 23
Global Talent
p 30 - 33
Clients, employees,
p. 16 - 19
Global Outreach
p. 34 - 37
Value Chain
local communities
p. 24 - 29
Under the firm belief that businesses thrive best in a prosperous society,
Samsung Engineering always listens to the voices of stakeholders and
reflects their thoughts in our management policies.
This is how we constantly enhance corporate value and
contribute to a sustainable society.
Material Issue
16 2014 Samsung Engineering Sustainability Report
Samsung Engineering separates risks associated with its business activities into two categories: enterprise-level risks and project-level risks. By defining subordinate risk types, we apply preemptive measures to effectively take control of them so that we can not only steer clear of risks, but turn them into
otherwise unforeseen opportunities.
Definition of Key
Risk Factors
Overview Approach to Sustainability Sustainability Progress Appendix
Risk Management
Enhancement of Safety & Health Control
Eco-friendly Value Chain
Fostering Global Talent
Expanding Global Outreach Activities
[Special Report] Creating Shared Value
through Plant Construction
Procurement costs/orders/
customs clearance,
equipment quality control
Project costs/schedules/
supply chain management,
regional characteristics,
project site environment,
project resources, safety/
environmental accidents,
quality control,
touch-ups and operations,
natural disasters
internal organization/
external factors/
project period/
profit & loss/
contract management
Engineering quality/
supply chain management/
material volume management
Business plans/strategies,
business results,
global network management,
compliance with operation standards
Foreign exchange (FX)
interest rate volatility,
financing, FX transactions
Legal compliance, security
Human resource staffing/
Laws, regulations, taxes
products, clients,
feasibility study
The global economy’s prolonged slump and low oil prices are highly likely to further reduce the number of new orders placed in the plant engineering industry, while client requirements are becoming more complex. Moreover, as the pressure on project costs grows and bidding competitions are
intensified, making survival in the market becomes a top priority with all of our business activities.
In tackling these business environment uncertainties, Samsung Engineering has devised its own
solutions to achieve sustainability. We will accomplish this by keeping abreast of long-term changes
and demands in the energy market to minimize uncertainties, while preemptively and effectively
taking full control of any and all risk factors from the initial stage of a project to ensure success and
generate strong profits.
In an effort to efficiently nullify all potential risks arising from external factors, such as oil prices,
foreign exchange rates and commodity prices, Samsung Engineering defines and classifies risks that
require its continued monitoring. We have also developed a systematic risk management process
that ranges from the detection of risks and their evaluation/classification to monitoring/responding
and prevention of any recurrences. This process allows us to monitor risk factors round the clock
and to take prompt countermeasures when necessary. Samsung Engineering will expand these
systematic and proactive risk management practices to all its business domains so that we can
apprehend risk factors and opportunities in advance and reflect this in our company-wide business
Risk Management01
Preemptive response to
potential risks
Tighter management
of risks associated with
project execution
Minimization of
financial risks
Why It Matters
18 192014 Samsung Engineering Sustainability Report
At Samsung Engineering, we classify risk factors according to a standard grading index before running
a potential impact assessment. Afterwards, risk-related decision-making bodies are differently applied,
from working-level departments to top management, and according to the grade given after the assessment. The identified risks are periodically registered with our database to track and monitor the details
of our response progress.
Risk Management Process
Managing Business
Risks through the KPI
Samsung Engineering’s standards for advanced work processes identify potential risks associated with
management issues and project execution, while also effectively countering these risks and monitoring
them. Business activities and project procedures are checked for risk factors transparently in terms of
quantified indicators by function. The data is set in a key performance index (KPI) to measure and record
using the KPI Dashboard system on a monthly and quarterly basis to ensure data reliability. The KPI
Dashboard facilitates inter-departmental communication and company-wide responses to vulnerable
indicators. In addition, the company continually monitors key risk indicators and upgrades preemptive
controlling measures in systematic preparation for today’s changing business environment.
Samsung Engineering defines its financial risk as those arising from its marketing activities, such as
market risk, credit risk, liquidity risk, and capital risk. In 2014, we also established a cash flow management process by project and adopted a cash budgeting system which facilitated real-time monitoring
and management of our liquidity status. Furthermore, we have completed a separate system for managing our guarantees, including performance bonds for suppliers and warranty bonds. Ultimately, this
will allow us to upgrade our supply chain management and quality control systems.
Establishing a Financial
Risk Prevention System
Samsung Engineering’s financial monitoring system ensures the soundness, completeness and reliability of financial statements, while also helping the company steer clear of corruption. The system checks
and verifies accounts on year-end settlements and around the year to verify any failures or errors in
accounting and settlement practices, and then supports checking tax-related issues in compliance with
the International Financial Reporting Standards (IFRS). In 2014, our internal control system, Prism,
was overhauled in accordance with changes to internal and external factors, such as the creation of
new work processes and changes to existing work processes following the company’s entry into a new
market. This does not only meet the legal requirements, but also ensures the effective operation of the
internal accounting control system, which in turn contributes to higher corporate value.
Fortifying Financial Risk
In a bid to minimize uncertainties and risk factors, Samsung Engineering conducts exhaustive research,
phase-by-phase, and comprehensive support to control potential tax risks associated with the countries
it operates in and the projects it carries out. As global projects characteristically account for the bulk of
our operations, we carry out meticulous research on the markets we plan on entering every year, specifically with regard to issues concerning taxation policies, laws and regulations, and customs. Before
bidding for any project, we thoroughly review the fine print of project contracts in light of the proposed
project execution plan to fully understand the scope of taxation, while also making use of all related
data when performing and closing projects, and establishing & shutting down business entities. Finally,
we fully comply with domestic and overseas tax-related laws and regulations.
Strengthening Taxation
Risk Management
Overview Approach to Sustainability Sustainability Progress Appendix
Risk workshop is one of our periodic processes of managing key risks, allowing all our employees to
identify potential risk factors and develop detailed countermeasures. In 2014, the company held risk
workshops for respective projects according to their phases from proposal phase to each phase of carrying
out projects.
Stage Objective Implementation
Evaluation·Classification Qualitative risk evaluation Risk Register,
Action List
Response·Monitoring Prompt response
procedures by grade
Risk Management Council
Preventing recurrences Minimizing recurrences of
similar risks
Monthly status report
Risk identification Sensing process risks KPI
(Key Performance Index)
Risk Management
Enhancement of Safety & Health Control
Eco-friendly Value Chain
Fostering Global Talent
Expanding Global Outreach Activities
[Special Report] Creating Shared Value
through Plant Construction
Material Issue
20 2014 Samsung Engineering Sustainability Report
Committed to preventing occupational accidents at source, Samsung Engineering invited disaster prevention analysts from abroad for effective management of safety-related statistics. A team dedicated to
safety control is also in operation, collecting and analyzing data and information regarding occupational
accidents and near-miss cases around worksites at home and abroad to develop accident prevention
measures and carry out safety campaigns.
Improving Safety Control
Samsung Engineering has come up with numerous potential emergency scenarios at its domestic &
overseas worksites and headquarters, and runs regular drills to remain thoroughly prepared. Each
worksite carries out joint drills in collaboration with clients at least once a month to ensure a prompt
response in the event of an emergency. In order to strengthen our countermeasures to emergency
situations at the company’s headquarters, we ran an evacuation drill simulating the outbreak of a fire
with 4,144 employees, or 99.2 percent of all our employees working there, on May 14, 2014. The prime
objective of these periodic drills is to ensure a swift response to any emergency which may arise during
the course of normal business operations.
Developing Contingency
Samsung Engineering actively recruits global talent from companies with best safety practices to make
sure its company-wide safety control systems remain at the highest international standards. By recruiting technical experts, we also preemptively control potential risk factors concerning structure, electricity, and equipment, allowing us to timely identify and address risk factors at source. As a result,
there were no cases of occupational accidents in 2014. Additionally, Samsung Engineering instituted
and applied its company-wide safety work guidelines to all its worksites to enhance the technical safety
competencies of its safety control supervisors at each worksite, while continuing to operate on-site risk
factor elimination activities.
Employing Global Talent
and Technical Experts
The 21st century saw significant advancements in global industrialization expansion, which brought
with it a proportionate scale of industrial accidents, further underlining the importance of effective
management concerning occupational health and safety. As such, governments around the world
are heightening their safety & health laws and regulations to prevent occupational accidents and
improve working conditions in general. World-leading companies in the industry have taken a proactive stance with their safety & health management practices that exceed legal requirements.
Accordingly, awareness and investments in occupational health and safety have become imperative
for the sustainable development of workers and companies alike, protecting not just people’s lives,
but corporate assets as well.
In line with its vision of becoming Global HSSE Leading Company, Samsung Engineering is improving its systems for preemptive safety & health management activities and for improved safety culture at work, encouraging employee participation at the same time. Specifically, we are employing
new global talent and technical experts, adopting a cutting-edge disaster control system, and developing preemptive contingency plans to reinforce our safety & health competencies. Additionally,
constant assessment of company-wide safety practices and safety campaigns will help raise safety
awareness among our employees and outside stakeholders.
Overview Approach to Sustainability Sustainability Progress Appendix
Improving the safety
management system
Preventing occupational
Raising safety
Safety Control
Data collection
Application at
Data analysis
of improvement
Enhancement of Safety
& Health Control
Risk Management
Enhancement of Safety & Health Control
Eco-friendly Value Chain
Fostering Global Talent
Expanding Global Outreach Activities
[Special Report] Creating Shared Value
through Plant Construction
Why It Matters
2322 2014 Samsung Engineering Sustainability Report
In March and April 2014, Samsung Engineering commissioned an external agency to carry out an extensive survey with 1,700 employees working at our head offi ce and six project sites in Korea to assess
its company-wide safety practices. The fi ndings revealed our current status of safety practices and the
effectiveness of safety & health management activities. Based on these fi ndings, we have devised three
key improvement initiatives regarding education, rewards & penalties, and communication. Since then
we have implemented various measures to strengthen our company-wide safety culture and incorporated them into our corporate culture.
Company-wide Safety
Practice Assessments
Samsung Engineering uses a variety of media channels to spread and promote safety culture. In particular, digital media has become our prime instrument, as it is easy for employees to access information.
This includes posting safety awakening posters on the company’s intranet; issuing a monthly magazine
to discuss safety among different departments; and cartoons in various languages that are distributed
to all our project worksites around the world.
Spreading Safety Practices
through the Media
Under the fi rm belief that safety habits in the everyday lives of individual employees constitute a strong
corporate safety culture, we have in place several campaigns to raise safety awareness across the
board. In prevention of traffi c accidents at its project sites in Korea and overseas, the company runs
road safety campaigns that support safe driving practices among employees, while also encouraging
everyone to buckle up when in a motor vehicle. Furthermore, we have taken note of the importance of
uncovering near-miss accidents and monitor the site to reduce the risk of an accident occurring through
timely reports of near misses. Through case studies of near misses, we devise safety measures and
implement campaigns to encourage on-site workers to participate in uncovering near-miss cases* so as
to prevent any recurrence of the same accident in the future. As a result, employee safety awareness
has signifi cantly improved.
Safety Campaigns
We have a number of specialized education programs to raise our employee awareness of safety management at work. For instance, Line Management Training is a top-down education program where
the heads of each business division and construction managers play a leading role. This program is
instrumental in awakening all on-site workers—both company employees and subcontractors—to the
importance of safety at work. We also provide executives, department managers and supervisors periodic safety education to heighten company-wide safety awareness.
Company-wide Safety
Training Programs
Overview Approach to Sustainability Sustainability Progress Appendix
At the Luberef Yanbu Refi nery Expansion project site in Saudi Arabia, we have minimized risk factors
through periodic safety monitoring and improvement activities. We also have established effective
contingency plans by executing emergency drills under several scenarios, such as those involving
fi res & explosions, road safety, and heatstroke. As a result of these systematic safety campaigns, the
Luberef site has earned an average of 95 points from client safety practice evaluations and achieved
10 million manhours without a lost time accident (LTA).
Additionally, we motivate all our employees to participate in safety initiatives at work through a
monthly awards program. By the end of 2014, 20 best safety practices and 700 safety workers with
excellent performance records were singled out and presented awards. Various other campaigns also
help raise safety awareness among workers. With the aim of preventing on-site workers’ diseases, for
example, we monitor each employee’s health and track those who are diagnosed with illness-related
symptoms to prevent any lost working days from sickness at our worksites.
On-site Safety Control
Best Practice
Luberef Yanbu Refi nery
Expansion Project
Three key
safety training
a binding rewards &
penalties program
program on safety
Risk Management
Enhancement of Safety & Health Control
Eco-friendly Value Chain
Fostering Global Talent
Expanding Global Outreach Activities
[Special Report] Creating Shared Value
through Plant Construction
* Near-miss cases: an unplanned event that did not result in injury, illness, or damage, but had the potential to do so
Material Issue
24 2014 Samsung Engineering Sustainability Report
Samsung Engineering conducts life cycle assessments (LCA) on all its water treatment plants to collect data on the environmental impact of our plant construction and operations. Results from the data
analysis are then used in the construction of eco-friendly plants. In 2014, we conducted the LCA process on the wastewater treatment plant in South Chungcheong Province, analyzing its impact with
regard to resource consumption, acidification, fresh water eco-toxicity, and sea water eco-toxicity. The
findings showed that both the construction and operational stages had a significant impact on the environment due to their raw materials use. In the future, we plan on expanding the application of these
LCAs to other types of plants as we develop more simplified LCA methodologies for wider application
to all projects.
Life Cycle Assessment of
Since joining the environmental business in the 1970s, we have been a pioneer in Korea’s water treatment industry. In fact, our Environmental Technology Development Center has been at the center of our
consistent efforts to secure technological competitiveness, ensure eco-friendly project execution, and
reduce environmental impact. Guided by a vision to provide competitive environmental industry technologies, Samsung Engineering’s Environmental Technology Development Center has devoted itself to
strengthening eco-friendly technologies in line with its three-pronged strategic directions: development
of distinctive technologies to reinforce our environmental project competencies; field-oriented support;
and engineering of future-oriented technologies. The center’s function goes as far as to test the feasibility of developed technologies for practical application to projects.
Environmental Technology
Development Center
Overview Approach to Sustainability Sustainability Progress Appendix
Korea’s current water supply capacity is insufficient to meet the demands for the semiconductor, LCD
and other electronics industries due to water quality deterioration and changes in industry trends.
Thus, the need to secure alternative water sources is continually increasing. In response to this,
Samsung Engineering has developed a wastewater reuse technology called SEMBRⓇ+R/O so that
today more than 15 million tons of water are reused annually, helping solve the water shortage problem in these industries. In addition, solid-phase advanced oxidation process (S-AOP) technology has
enabled us to process 25 million tons of low-concentration wastewater produced through AMOLED
processes and reuse it as process water. Compared to similar technologies, S-AOP technology saves
40 percent in operating expenses and uses 50 percent less space at land sites.
Eco-friendly Technology
Over the past century, the world’s population quadrupled due in part to rapid industrialization. During this same period, energy consumption grew 16 times and CO₂ emissions increased 13 times as
much. These phenomena gave rise to several environmental issues, including climate change, energy source depletion, waste-triggered environmental pollution, and biodiversity protection. In step
with the growing global concern over these issues, governments around the world have tightened
environmental regulations, with international conventions further raising the bar to address ecorelated problems. Clients are also demanding stricter compliance with environmental regulations in
consideration of local environmental conditions concerning operations and even called for detailed
action plans to ensure compliance. Local communities are keeping a close eye on the environmental
impact of our business activities and asking us to remain vigilant in accounting for all of our management practices.
Samsung Engineering applies strict environmental management guidelines to all its project sites
to minimize relative risk factors. At the same time, we are bolstering our eco-friendly technological
competencies in a bid to seize on opportunities that come with these environmental risks as we
carry out water treatment plant and GHG reduction plant construction projects that utilize related
technologies. In addition, we support our suppliers in establishing carbon & environmental management systems as per the ‘Green Partnership’ Agreement we signed with our suppliers and the
Ministry of Trade, Industry and Energy in 2013.
Applying green management practices in
the entire business activities
Preemptive prevention
of environmental risks
Spreading green management
practices on supply chain
• SM process
• BIOFIL process
• PADDO process
• Pure oxygen process
• SCORES process
• PTFE MBR process
• Electrochemical
oxidation process
• SEMBR-HC process
• SEMBR-LC process
• Calcium removal
• Reuse process
for semiconductor
• BAC process • SEDION-Hyper
(H₂O₂ removal resin)
• Hyperizer
(H₂O₂ analyzer)
• SMIC process
• S-AOP process
• Down-flow BAC
Sewage/Wastewater Reuse Drinking water Ultrapure water
List of Technologies Held by the Environmental Technology Development Center
Eco-friendly Value Chain
Risk Management
Enhancement of Safety & Health Control
Eco-friendly Value Chain
Fostering Global Talent
Expanding Global Outreach Activities
[Special Report] Creating Shared Value
through Plant Construction
Why It Matters
26 272014 Samsung Engineering Sustainability Report
Recent chemical substance leak incidents in Korea caused significant damage to lives and property. In
an effort to prevent such accidents at source, Samsung Engineering has developed guidelines for handling chemical substances by project type and is monitoring all management procedures, from receipt
to disposal of chemical substances. We also have chemical substance storage standards in place to
prevent leaks at source and run regular emergency drills so as to effectively respond to chemical substance accidents. In addition, the company’s headquarters and each project site instruct our employees
and suppliers about their respective roles and responsibilities and carry out drills so that everybody is
prepared for an emergency, thereby minimizing the risk of chemical substance leak.
We will conduct case studies of oil or chemical leaks, analyze the causes and share the results with employees to prevent a similar case from arising at our worksites. In 2014, we found 17 near-miss cases
involving oil and chemical leaks, mainly from pipelines, at our sites in Korea and abroad. The average
leak amount was less than five liters, and all detected leaks were properly handled following standard
operating procedures.
Chemical Substance
We calculate and manage the amount of greenhouse gases (GHG) the company emits from its domestic
and international transportation of raw materials. In 2014, we tracked our GHG emissions from the
logistics for our projects currently underway in 12 countries around the world by air, sea and land. We
constantly strive to cut down on our GHG emissions from our logistics activities by using sea vessels
when possible over airplanes, while also improving the load efficiency. As a result, emissions from our
logistics activities have been on the decrease for the past three years. In 2014, the figure was 11 percent
lower than that in the previous year.
Controlling GHG
Emissions from Logistics
In order to preemptively eliminate any environmental impact related to its project activities, Samsung
Engineering identifies all areas that require environment protection measures before starting construction. To this end, we conduct an extensive analysis of potential environmental impact concerning the
entire life cycle of our projects from engineering, procurement to construction and subsequently develop plans to reduce our environmental impact in all aspects before we begin a project. For instance, in
the case of the InterGen SLP CCPP project in Mexico, we analyzed flora and fauna in the vicinity of the
project site based on our understanding of the importance of keeping biodiversity and transplanted 65
cactus plants and 46 prosopis laevigata trees in collaboration with the Mexican government in 2014. For
the BHP CCPP project in Chile, we suspended construction work during the bird breeding season. As this
clearly demonstrates, we strictly abide by all environmental regulations of the countries we operate in,
taking all necessary actions to minimize our impact on the environment of local communities.
Biodiversity Protection
Samsung Engineering takes diverse measures to prevent air pollution resulting from project execution at each site. For instance, we installed a dust collection house as part of the Cheonan Municipal
Solid Waste Incineration BTO project to efficiently collect fugitive dust. The fugitive dust generated
from the project site is collected through suction fans and a vinyl hose stored in the dust collection
house, where the material is sprayed with water and then filtered out. This environmentally-friendly
method was recognized as the best practices in 2014, receiving an award from the Chairman of the
Environment and Labor Committee at the Construction Environment Best Practice Competition.
Eco-Friendly Project Site
Best Practice
In order to reduce environmental risks associated with our construction projects, our site workers together with subcontractor managers conduct environmental impact and risk assessment every week.
Through the assessment, we identify high-risk activities and develop plans to reduce such risks. Permission for construction is only issued after confirming the actual application of risk mitigation plans, which
is instrumental in encouraging subcontractors’ participation and raising their awareness about the importance of environmental management, eventually helping to create eco-friendly worksites.
Permission to Conduct
Risk-related Works
We identify non-conformance issues in environment, safety and quality through daily inspections at all
worksites. Our site workers and subcontractor managers join the on-site patrols to communicate on
current issues at each worksite and to prevent any potential accidents in advance.
Daily Risk Inspection
Monitoring the implementation of
countermeasure plans
- Daily checks on the implementation of
emission reduction plans as stipulated in
the permission certificate
- Commencement of operations only after
improving risk-related incongruences
Issuing permission for high-risk
- Issuing permission for high-risk
works only after confirming
plans to reduce emissions
- Displaying permission certification
at all worksites
Developing countermeasures
to high-risk works
- Works classified as fourth
grade and above
- Developing plans to reduce
emissions by environmental
Aspect assessment
& Risk analysis
- Aspect assessment,
including water and
air quality
- Assessing work
frequency and
associated risk
Weekly process meeting
- Participation by managers from
Samsung Engineering and its suppliers
- Checking work plans on a weekly basis 1
and improving
implementation of
assessment &
Risk analysis
Development of
permission for
Overview Approach to Sustainability Sustainability Progress Appendix
Cheonan Municipal Solid Waste
Incineration BTO Project
2012 2013 2014
20,427 18,645 11,311
2012 2013 2014
11,123 10,269 10,929
2012 2013 2014
33,682 32,570 32,765
Risk Management
Enhancement of Safety & Health Control
Eco-friendly Value Chain
Fostering Global Talent
Expanding Global Outreach Activities
[Special Report] Creating Shared Value
through Plant Construction
28 292014 Samsung Engineering Sustainability Report
Since signing an agreement to build an environmentally friendly ecosystem between large companies
and SMEs with the Ministry of Trade, Industry and Energy in September 2013, Samsung Engineering
has been participating in the Green Partnership program. Since then, 20 suppliers have joined the program and received trainings on how to respond to environmental regulations, built carbon and environmental management systems, and were provided with the assessment on energy consumption as part
of our efforts to promote green management throughout our supply chain.  
Training suppliers’ executives and staffs
We provide the executives of suppliers with classes on the importance of carbon & environmental management and the practical knowledge required for performing green partnership projects, as well as
response measures to regulations and our support policies.
Supporting suppliers in establishing carbon & environmental management systems
We have also supported our suppliers in establishing carbon management systems. Based on qualitative and quantitative data analysis of our suppliers’ carbon and energy management status, we have not
only put together carbon management targets and strategies for our suppliers, but also detailed tasks
to attain these goals. Samsung Engineering has developed and now provides the necessary tools for
suppliers to calculate their own GHG emissions, allowing them to set up GHG inventories based on the
calculation of GHG emission amounts by source and energy type.
Energy use diagnosis and guidance
Based on the thorough energy use diagnosis and analysis, we evaluated our suppliers’ energy efficiency
and identified energy loss factors at their premises, presenting them with countermeasures to reduce
energy use connected to these loss factors. This is widely expected to contribute to practical energy
conservation in our supply chain. As of 2014, we completed energy use diagnosis and guidance for 10
of our suppliers, discovering 51 improvement tasks for energy conservation that are expected to save
a total of 751 TOE* energy use and reducing our energy costs by approximately KRW 650 million. In
fact, one of our green partnership participants, KHE, applied our improvement suggestions based on our
energy use analysis and strengthened their operating methods for air compressors at their metal finishing plant. As a result, the amount of energy consumption saved was worth KRW 10 million in annual
operating expenses, reducing GHG emissions by 34.9 tCO₂e.
Green PartnershipSamsung Engineering calculates the amount of raw materials, energy and water input required for
plant construction as well as pollutants, byproducts and GHG emissions involved in the manufacturing
process. Raw materials are managed using six leading indicators: concrete, steel structure, machinery,
pipes, cables, and recycled concrete. Today we are making constant efforts to minimize our environmental impact and use resources efficiently in all processes from engineering to construction.
Efficient Use of Resources
Overview Approach to Sustainability Sustainability Progress Appendix
Steel structure
Electric cables
Instrument cables
m³ ton
m m 2,365,489 ton3,077,389 GJ
* TOE (ton of equivalent): a unit of energy defined as the amount of calorie released by burning one ton of crude oil
Under the Large Corporate-SME Green Partnership Agreement, Samsung Engineering assists its
suppliers in building carbon management systems and fostering experts so that they can voluntarily
respond to climate change. By laying the foundation for effective join responses to climate change
with suppliers, we are promoting green management practices throughout the entire supply chain.
Green Partnership
Supply Chain Practice
Establishing a Carbon
Management System on the
Supply Chain
“I am greatly indebted to Samsung Engineering for its assistance in our efforts to develop an environmental management system. It was difficult for us to carry out this initiative on our own, but
we found a way to reduce greenhouse gas emissions and improve energy efficiency by carrying out
relevant energy and carbon management tasks with the help of Samsung Engineering. Based on the
results, we were able to establish a roadmap for future carbon management. Going forward, we will
continue to raise energy efficiency and reduce carbon emissions through constant monitoring and
reduction solutions.”
Shi Man Kim, Manager
238,939 tonDirect·Indirect emissions
(Scope 1, 2)
245,416 tCO₂e
Direct emissions
(Scope 1)
219,627 tCO₂e
Indirect emissions
(Scope 2)
25,789 tCO₂e
Reused water
763,600 ton
Recycled concrete
78,811 m³
Risk Management
Enhancement of Safety & Health Control
Eco-friendly Value Chain
Fostering Global Talent
Expanding Global Outreach Activities
[Special Report] Creating Shared Value
through Plant Construction
Material Issue
30 2014 Samsung Engineering Sustainability Report
Samsung Engineering offers a wide array of training programs to foster its employees as global leaders.
For instance, we dispatch employees to our strategic markets in Africa, Asia and the Middle East for one
to two years to train them as regional experts. After completing these training courses, they spearhead
global expansion activities which are at the forefront of our marketing efforts. We also offer an academic training program where employees enroll in prominent MBA courses at home and abroad. The MBA
program has differentiated courses for managers (Samsung E-MBA) as well as for employees of junior
level (Samsung MBA). Furthermore, Samsung Engineering operates competency-building programs by
outsourcing the training of all our employees to external specialized training agencies.
Fostering Global Leaders
Overview Approach to Sustainability Sustainability Progress Appendix
Overseas projects account for a significant share of Samsung Engineering’s overall operations. Accordingly, our global operations and total workforce are constantly expanding, which in turn requires more
effective and integrated management in global human resources. In step with this need, we have integrated the existing HR system that had been independently governed by each overseas office into a new
global standard HR policy that is under control of the headquarters. As part of the change, Samsung
Engineering did away with Korea’s seniority-based HR system and instead opted for a new system that
is based on the job-oriented 3P policy: person, performance and position. We are also in the midst of
standardizing the four major HR areas—job grade, evaluation, promotion and compensation—at all overseas offices and worksites around the world. Starting with a pilot test in India, this new system has been
introduced to our major overseas offices in Thailand, China, the US, Mexico, Saudi Arabia, and the UAE.
Establishing a Global
Standard HR Policy
As a company operating globally, Samsung Engineering contributes to the development of local
communities and maintains solid, trust-based relationships with them because delivering value to
them is an integral part of our sustainability efforts. Also, respect for diversity and merit-based fair
compensation practices have become a barometer to measure company’s competitiveness. Therefore, many top global companies are putting forth a great deal of energy and resources to recruit
and train internationally competitive talents, instilling loyalty to the company in their workforce to
heighten employee engagement.
As a leading global company, we respect diversity within our organization. To that end, we maintain
a coherent corporate culture, while also promoting communication in and among our multinational
workforce. In particular, our overseas offices and project sites are creating synergies by employing
and efficiently managing highly competent local talents who display expertise in their respective
fields. At the same time, we are training the competent employees as managers and have developed
a global standard HR policy to ensure fair evaluations and compensation to employees for their
performance. The human resource exchange program and various other education programs are in
place to foster highly competitive employees.
Recruiting talented
Fostering locally hired
Enhancing project
execution competencies
Competent global talents from 30 countries around the world are working at Samsung Engineering’s
headquarters. The Global Help Desk (GHD) assists them to settle in and adjust to their new work and
life environments. The GHD program is an employee assistance service specialized for our global
employees working at the head office in Korea, supporting them with useful information to make their
life easier in a different culture.
“Since I joined the company in 2009, I have been in charge of engineering & management at the
Smart Plant Foundation (SPF*). I am also a labor representative on the Industrial Relations Council,
speaking on behalf of all global employees at Samsung Engineering. I appreciate that the company
always pays close attention to the welfare of its global employees. On a more personal note, I really
enjoy the wide range of food from different cultures offered at the in-house cafeteria. Furthermore,
the company offers systematic education programs and career development assistance programs,
supporting us in our growth to become prospective managers in the future.”
* SPF is a data management system for clients.
Manuel Hidalgo
Engineering Support Department
Global Personnel
Support Program at the
Global Help Desk
Fostering Global Talent
Risk Management
Enhancement of Safety & Health Control
Eco-friendly Value Chain
Fostering Global Talent
Expanding Global Outreach Activities
[Special Report] Creating Shared Value
through Plant Construction
Why It Matters
3332 2014 Samsung Engineering Sustainability Report
The Samsung Talent Management System (STMS) fosters competitive global employees as local managers at our overseas offices, while also preparing the company for fierce competition through various
programs in hiring global talent. The STMS keeps a database of core talents who have exhibited noteworthy accomplishments in their expertise, knowledge, experience and leadership. Based on recommendations from each overseas office, we review individual performance results and competencies
(regardless of job position) when selecting core talents for quarterly monitoring and management. In
2014, we checked the current status of each overseas office to assign locally hired employees with
great potential to key posts at each overseas office after scrutinizing their track record. By 2017, we plan
on staffing most key posts at our overseas offices with locally hired managers.
Fostering Locally Hired
Managers at Overseas
Samsung Engineering’s Field HR System efficiently manages HR at our overseas project sites. Through
a database of global employees, the system has unified the recruitment and deployment of human
resources, while minimizing indirect jobs with enhanced efficiency in the human resource management
system. Moreover, the system has been adopted at all our sites abroad. By adding the new function of
on-site workforce management and redeployment/relocation, the field HR system serves as a platform
for evaluating the performance of our global workforce. Moving forward, we plan on further upgrading
the system to support core talent management. In 2015, we will implement plans for selecting and
training core talents among competent on-site employees for our overseas operations.
Field HR System and
Talent Management
Expanding the application
of mentor/mentee program,
quarterly on-site meetings,
and periodic management
of core talents through the
Field HR System
Extra benefits, additional
fringe benefits, and job security
by assigning employees to new
projects after completing the
previous project
Overview Approach to Sustainability Sustainability Progress Appendix
Education programs for
prospective SIs·managers
(introduction course at
the headquarters and
introduction to job duties/
cultural differences)
Assignment to new projects
as SIs·managers after
completion of the related
education program
* SI : Superintendent
** SV : Supervisor
Identifying and selecting
competent global workers
from project sites (3 steps:
prospective SI*s/managers,
competent SV**s)
Selection Education Assignment
On-site Competent Workforce Fostering Framework
In October 2014, Samsung Engineering hired new global SIs and provided competent supervisors
who are involved in company projects with training programs to foster them as SIs. The training consisted of an introductory course that focused on instilling loyalty to the company and understanding
of the corporate culture. As for the project job duties course, it concentrated on specific job duties and
the systems operation required for administering projects as SIs, as well as understanding cultural
differences, while an online course assisted global employees to understand our corporate culture
along with safety-at-work guidelines. A total of 10 global employees completed the two-week program in 2014. After the training, they gave the training program an average of 9.2 points (out of 10) in
the satisfaction survey. Based on this feedback, we will continue to train competent workers as SIs
through this program in 2015, further reinforcing the competencies of our global workforce.
Training Locally Hired
“It was an honor to be selected from thousands of global employees to attend the SI training program at the company’s headquarters. Indeed, I was very grateful for this opportunity. The education
program was also a good opportunity to understand what the company demands from its global SIs.
It’s my sincere hope that this is firmly established as a continuing training program so that more and
more global SIs can benefit from this useful training in the future. In addition, I’d like to share my
story with colleagues and tell them that they can make their dreams come true if they are sincere in
their efforts.”
Rolando Nieto
Mechanical, Piping, Steel Structure Construction Department
Global SI Training Program
Risk Management
Enhancement of Safety & Health Control
Eco-friendly Value Chain
Fostering Global Talent
Expanding Global Outreach Activities
[Special Report] Creating Shared Value
through Plant Construction
Material Issue
34 2014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
The plant engineering business inevitably has a significant influence on the economy and social
development of the countries in which it operates with a significant portion of its workers and equipment coming from local communities. Consequently, the understanding and close cooperation of
local communities is imperative for the successful performance of any project. As of 2014, Samsung
Engineering carried out numerous projects in 38 countries around the world, with 74 percent of its
sales coming from overseas operations. As a result, maintaining friendly relationships with each local community is critical to our business success. While corporate social responsibility management
used to be an optional expense in the past, it has become an integral part of business activities in the
global market, which is why a growing number of businesses are aware of its value as an investment
in their future success.
As a responsible global corporate citizen, Samsung Engineering contributes to local communities
through its business activities, while proactively carrying out various social outreach programs everywhere the company operates as well as in the countries where our clients are based. To that
end, we have devised five CSR directions: employee volunteerism, active donations, global social
outreach programs, community engagement CSR programs, and signature CSR programs. Committed to mutual growth alongside the local communities and countries we work in, we lend our
business acumen as a knowledge-based business through such programs as building Hope Libraries
and Eco-generation Schools.
Performing corporate social
responsibility activities
Contributing to local
Fostering future
environmental leaders
Samsung Engineering is implementing environmental protection and future-generation education programs by drawing on its advanced skills in operating the Environmental Technology Development Center and its technological expertise in water, air and waste treatment.
Water of Life
Samsung Engineering’s Water of Life program is a CSR project to help dig wells in Kenya, where many
residents suffer from water scarcity. Since digging three underground water wells in 2012, we have built
a total of 30 wells for local residents (7 wells in 2013, 20 wells in 2014), and repaired 100 broken water
pumps over that time as well. While improving local residents’ accessibility to clean potable water, we
have also given people hygiene classes and monitored water quality to steer clear of waterborne epidemics. Additionally, we have sponsored the construction of a drinking water supply system at a refugee
camp in Kakuma.
Environmental Protection around Project Sites
Whether deserts or tropical rainforests, Samsung Engineering’s project sites are mostly located in remote areas that lack systematic environmental management services from local governments. However, our on-site employees think of their worksites as their second home and carry out numerous activities to keep the surrounding area clean and green on a regular basis. This includes all the streams and
forests in and around our project sites in Angola, Chile, Mexico, Iraq, and Saudi Arabia.
Eco-generation Schools
Samsung Engineering’s Eco-generation School program involves environmental classes where our employees teach local children the importance of the environment. As of 2014, the program was in its 19th
year. In 2012, we launched the official global brand of this program and expanded the scope of activities
to communities where our overseas offices or project sites are located. As of 2014, held these classes in
seven countries - Korea, India, Thailand, China, Uzbekistan, Bolivia, and Myanmar.
Investing in a Sustainable
In cooperation with the Graduate School of Environmental Studies at Seoul National University and
the Korea Green Foundation, Eco-generation program hosts the Global Youth for the Environment
Forum every year, providing classes to 400 children and youth from Korea and all over the globe.
Marking its fourth anniversary in 2014, the forum has grown to become a Korea’s leading global youth
environmental forum based on the close private-public-academia collaboration. Furthermore, with
overseas participants selected through various environmental competitions hosted by our overseas
offices and project sites, this forum contributes to fostering global eco-leaders in the local communities where we operate various environmental competitions.
Education for Future
“As the Eco-generation Ambassador to the Middle East these past two years, I’ve communicated
online with many other honorary ambassadors from different countries. However, I’ve always felt
something was missing because I couldn’t meet these other people in person due to the physical distance. Thus, I was happy to attend the forum, where I met the Eco-generation Ambassador to Korea
and we had a chance to exchange stories about our respective environmental campaign experiences.
The forum was also useful because I learned more effective ways to put together environmental
campaigns with limited resources and staff. This forum will prove really useful for me in the future
going on my environmental awareness activities in UAE.”
Rohan Kapur
UAE, Eco-generation Regional Ambassador to the Middle East
Global Youth for the
Environment Forum
Expanding Global
Outreach Activities
Risk Management
Enhancement of Safety & Health Control
Eco-friendly Value Chain
Fostering Global Talent
Expanding Global Outreach Activities
[Special Report] Creating Shared Value
through Plant Construction
Why It Matters
36 372014 Samsung Engineering Sustainability Report
Samsung Engineering promotes active community outreach activities at its seven overseas offices and
its headquarters in Korea for the co-prosperity of its business and the countries we operate in.
Global Outreach
Employees at Samsung Engineering’s US
office regularly volunteer at local Food Bank
and provide meal boxes to the homeless.
They also donate school supplies to middle
schools where many students come from
low-income families in an effort to help
them academically.
Samsung Engineering’s UAE Office
mounted blood drives for local communities
in 2014 and donated blood to Abu
Dhabi Blood Bank. The local employees
also donated clothes through a Dubai
commissioner, building a stronger tie with
local communities.
Saudi Arabia
Samsung Engineering’s Saudi Arabia
Office held the third Environmental Essay
Contest in 2014, raising the environmental
consciousness of local teenagers. The two
students with outstanding performance
were invited to Korea to participate in the
Global Youth for the Environment Forum,
sponsored by Samsung Engineering.
Employees at Samsung Engineering’s
Mexico Office volunteer at local community
shelters for juvenile delinquents and
provide tutoring services to help them
grow into respectable citizens. The
employees at InterGen ACS project have
also donated school supplies, toys and
food to orphanages to help bring about a
higher quality of life and equal educational
opportunities for the young children.
In 2014, Samsung Engineering’s China
Office gave 230 local students classes
as part of its Eco-generation School
program. Employees taught children about
the significance of the environment and
energy. The office will continue to offer
environmental education.
At the Samsung Engineering Office in Thailand, employees
pay regular visits to local elementary schools to give Ecogeneration School classes to students there. In partnership
with the Metropolitan Electricity Authority of Thailand and
the St. Gabriel’s Foundation, the Thailand Office has also held
the Eco-generation Environmental Leadership Competition
in Thailand to single out two young aspiring environmental
leaders who want to play a role in protecting their country’s
environment in the future. The winners attended the Global
Youth for the Environment Forum in Korea, where they had an
opportunity to learn more about the environment and cultivate
global leadership skills.
For several years, Samsung Engineering’s
India Office has been donating school
supplies and books to nearby elementary
schools annually to ensure that every child
has access to quality education. In 2014
alone, they donated a total of 1,080 books
and volunteered their time to community
outreach activities for stronger community
engagement. The India Office also held
Eco-generation School programs and
hosted an environmental essay contest,
with two winners flown to Korea to attend
the Global Youth for the Environment
Through extensive know-how and experience, Samsung Engineering is helping lay the foundation for
equal educational opportunities aimed at underprivileged children in countries where we operate. Since
2012, we have been renovating old school buildings and community centers in India, Iraq, Uzbekistan,
and Bolivia to create children’s libraries.
In Akchalak, Karakalpakstan—an autonomous republic of Uzbekistan where the company is currently
working on the Uz-Kor Gas Chemical UGCC Package #B project—Samsung Engineering has donated
1,800 books (in Uzbek, Karakalpak, English, and Korean) and provided supplies to remodel unused classrooms into a Hope Library at an elementary school. Local residents speak Karakalpak as their official
language, not Uzbek, often run into linguistic barriers in their job searches. We also remodeled a gym
and donated sewing machines and PCs to aid in equal educational opportunities for local children.
Aboriginals in the state of Cochabamba, Bolivia—where our Yacimientos Petroliferos Fiscales Bolivianos
(YPFB) Ammonia/Urea project site is located—are having their traditional language and culture eroded
due to a dearth of opportunities to learn their ancestors’ language. Instead, they are obliged in school
to use Spanish, the country’s official language, so Samsung Engineering donated 3,000 books to create
Hope Libraries in three different schools and libraries in Entre Rios. We also sponsored a media center
to assist in protecting the local language. Additionally, we donated educational equipment, school supplies, and solar-powered lanterns to local children through a separate scholarship program and run
the Eco-generation School through the Hope Libraries, offering new educational opportunities to local
Hope Library and
Scholarship Programs
In a bid to spread social contribution practices, Samsung Engineering makes book donations in the
names of visitors to its corporate museum, which is located within the head office building in Seoul. To
date, a total of 3,200 books have been donated through this program to Samsung Engineering’s Hope
Libraries in India, Iraq, Uzbekistan, and Bolivia, as well as four elementary schools in India. After donating the books, we send our donors photos via e-mail of local children reading them as a token of thanks
for their kindness.
Book Donations for
Children in Developing
Overview Approach to Sustainability Sustainability Progress Appendix
Risk Management
Enhancement of Safety & Health Control
Eco-friendly Value Chain
Fostering Global Talent
Expanding Global Outreach Activities
[Special Report] Creating Shared Value
through Plant Construction
38 2014 Samsung Engineering Sustainability Report 39 Overview Approach to Sustainability Sustainability Progress Appendix
Report Creating Shared Value
through Plant Construction:
MOW Muharraq Sewage Treatment
BOT Project
When the village of Tubli’s only sewage plant, which was 30 years old at the time, became overloaded in
treating wastewater generated by an exploding population in Bahrain, it started discharging half-treated
sewage water into Tubli Bay. The worn out sewer was no longer completely functional either, and created such ghastly odors and marine pollution that local residents inundated local authorities with complaints. In addressing this issue, the Bahraini government developed the 2030 National Masterplan for
Sanitary Engineering Service. The idea was to develop plans for a new sewage plant and a new sewer
conveyance system that would take into account the estimated future sewage volume based on careful
research of current conditions surrounding the present sewage treatment plant and sewer conveyance
system to accommodate the island’s growing sewage treatment demand. As part of this masterplan,
the sewer conveyance system will be connected to the Muharraq Sewage Treatment Plant (STP), addressing important environmental and social issues in Bahrain. After completing the plant, Samsung
Engineering has been commissioned with the O&M (operation and maintenance) of the Muharraq STP
under a 26-year contract. Keenly aware of local environmental issues, we are committed to assisting
neighboring communities through our high-quality O&M services.
Helping Solve Local Issues
in Bahrain
We have commissioned a local subcontractor in Bahrain for the civil works of the plant and pipelining, earmarking roughly 80 percent of the plant’s operational expenses for local procurement. During
construction of the facility, we faithfully abided by Bahrainisation regulations, significantly contributing
to creating excellent jobs for local residents. Furthermore, in partnership with Bahrain Polytechnic, the
company offered job opportunities to some of the school’s graduates. We also gave safety education to
local employees, including how to work safely in enclosed areas and how to respond to emergencies, as
instructed by Bahrain’s Civil Defence Force.
Locally Sourced
Employment and Supply
As project funds were mostly raised from outside the country, we followed OECD guidelines as per the
standards provided by investor banks and the Export-Import Bank of Korea and carried out the project
under the close supervision of all investor banks. During the project period, Bahrain’s Supreme Council
of the Environment conducted monthly due diligence, while we hired an independent environmental
consultant for periodic monitoring of our practices. We not only applied our own high standards and
monitored our environmental management practices, but also sought ways to minimize our impact on
local communities. At the same time, we applied our leading technology for the chemical and biological treatment of sewage for reuse, including an underground water infiltration monitoring system and
high-performance sludge incineration facility. Today, the sewage treatment plant also uses sequencing
batch reactor (SBR) technology, saving costs in operation and helping the plant achieve top operational
Thorough Environmental
Management and
Adoption of Environmental
Samsung Engineering checks the environmental and social impact of its projects following client’s environmental impact assessment results and reflects the findings in its project plans to minimize any
adverse influence. As the plant site was located on newly reclaimed land, our project had a minimal
impact on local residents. Additionally, we arranged for many opportunities to communicate with local
residents, such as public forums and environmental cleaning initiatives, while engaging in diverse community service activities in collaboration with municipal governments.
Community Engagement
Constructed on reclaimed land on the coastline of Muharraq Island, the Muharraq STP involved
large-scale dredging work, including marine discharge pipelining that spanned 1.5 km. Consequently,
the project inevitably had an influence on the marine ecosystem in the vicinity. In addressing this issue, Samsung Engineering conceived of the Reef Balls Project to minimize the company’s influence
on the ecosystem and to improve nearby marine environment conditions. The Reef Ball is a type of
artificial reef that slows down the flow of water around the reef, creating a moderate whirlpool for
fish to inhabit. Samsung Engineering partnered with two schools in Al Hidd, a town near its project
site, and instructed students on why the marine ecosystem had to be protected before manufacturing
the reef balls together. Installed around Muharraq Island, the reef balls will contribute to improving the neighboring marine ecosystem and change the area into a popular scuba diving spot, further
developing the marine tourism industry.
Biodiversity Protection
Ministry of Works
Muharraq, Bahrain
Feb. 2011 – Oct. 2014 (EPC)
Oct. 2014 – Apr. 2040 (O&M)
Reef Balls Project
Risk Management
Enhancement of Safety & Health Control
Eco-friendly Value Chain
Fostering Global Talent
Expanding Global Outreach Activities
[Special Report] Creating Shared Value
through Plant Construction
Samsung Engineering systematically manages all quantifi ed data on the creation of
our economic value, business ethics and compliance, safety & environmental control,
employees & workplace, supply chains, and local communities. It then shares all of this
information with stakeholders. By attaining our sustainability progress goals,
we strive to live up to the high expectations of our stakeholders.
42 432014 Samsung Engineering Sustainability Report
* GHG emissions are the total amount of direct/indirect (Scope 1 and 2) and other (Scope 3) emissions.
Employees & Workplace
Ratio of global employees Ratio of female employees Training expenses to
annual revenue
No. of childcare leaves
(two times as many as the previous
19 % 16% 0.1% 80 cases
Supply Chain
Outsourcing expenses No. of suppliers
(design companies/vendors/subcontractors)
No. of suppliers benefiting from
education/training support
KRW6,675 billion 7,947companies 505companies
Local Community
Cumulative number of countries
benefiting from social outreach
Cumulative number of countries
membered with Eco-generation
Total amount of social contribution
(up 118 percent from 2013)
53 countries 155 countries KRW10billion
Creation of Economic Value
Sales revenue in Middle East
(By the ENR in 2014)
Overseas sales revenue
(74 percent of total revenue)
Economic value distributed
to stakeholders
(89 percent of total revenue)
1st KRW6,566 billion KRW7,897billion
Ethics & Compliance
Offline training hours
(up 47 percent from 2013)
No. of trainees using offline training
(up 42 percent from 2013)
No. of cases providing legal advice
to employees
11,100hours 10,495persons 1,846cases
Safety & Environment
industrial accident rate
Total GHG emissions to revenue*
(down 20 percent from 2013)
44 tCO₂e/KRW in billions
Overseas total recordable
incident rate
No. of employees who completed
on-site environmental
training sessions
(up 41 percent from 2013)
2014 Sustainability
44 452014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
Determined to maintain sustainable growth, Samsung Engineering is ceaselessly taking part
in innovation efforts, reinforcing its core competencies, and diversifying its product and market
portfolios, which in turn generates economic value. The created economic value is fairly distributed to our stakeholders for co-prosperity shared with members of society.
* Personnel expenses is the sum of salaries, bonuses, retirement benefits, and fringe benefit expenses.
** Outsourcing expenses include expenses for engineering, equipment & materials, and construction.
*** Corporate income tax and social contribution expenses are the sum of consolidated corporate taxes and social contribution
**** Environmental expenses are the total expenses spent on environmental R&D activities, environmental management, and
eco-friendly product purchases.
* CIS (Commonwealth of Independent States): A regional organization whose participating countries,
such as Kazakhstan and Uzbekistan, are former Soviet Republics that were created during the breakup of the Soviet Union.
Environment &
Next Generation
Samsung Engineering classifies its stakeholders into six groups: clients, employees, suppliers, shareholders, local communities (including governments and NGO agencies), and the environment & next
generations. Committed to co-prosperity with all our stakeholders, we share economic values generated from our business activities with all our stakeholders in various ways.
Distribution of Economic
Economic Value Distribution Flowchart
Creation of
From refinery, gas, and petrochemical to hydrocarbon upstream, power & industrial facilities, and environmental plants, Samsung Engineering is a specialized engineering company with a business scope
spanning virtually all engineering businesses. In 2014, we successfully returned to the surplus after
running a deficit for just one year, recording KRW 8.9 trillion in revenue, an operating profit of KRW 162
billion, and taking orders worth KRW 6.4 trillion. Our focus has been on managing the profit & loss of
projects through an extensive review of projects with issues. As a result, we have turned a profit for five
straight quarters (since Q4 2013). By business area of order backlog, our project portfolio was balanced
between hydrocarbon facilities and other projects, which account for 59% and 41% of our business,
respectively. We also diversified our market portfolio from traditional strongholds in the Middle East to
new markets in Europe, the Americas, and Africa.
Financial Highlights
Key Financial Numbers (consolidated) unit–KRW in billions
Classification 2012 2013 2014
Revenue 11,440 9,806 8,912
New orders 13,056 6,288 6,377
Operating profit 737 △1,028 162
Order backlog 19,365 15,636 12,805
unit–%Order Backlog by Business Area/Region
Personnel expenses
Outsourcing expenses
Corporate income tax & social
contribution expenses
Environmental expenses
2014 Sustainability Performance
Creation of Economic Value
Ethics & Compliance
Safety & Environment
Employees & Workplace
Supply Chain
Local Community
46 472014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
Samsung Engineering conducts business practices in a fair and transparent way, and is in compliance with all laws and regulations both at home and abroad. In addition, we have implemented
Compliance Control Standards to ensure the sound growth of the company and gain trust from
our clients. We also offer diverse training programs to raise employees’ ethical and compliance
awareness to avert legal risks.
In a bid to establish legal compliance within the corporate culture, Samsung Engineering offered executives and department leaders with advantages for their compliance practices in their performance
evaluations up until 2013. Starting in 2014, however, compliance performance became part of the basic
criteria for them, ensuring the company’s leaders exhibited a higher sense of responsibility in terms of
Evaluations for
Compliance Practices of
Among the numerous systems Samsung Engineering operates for integrated business ethics & compliance practices round the clock, the online legal support system (LSS) has been particularly effective in
responding to the growing need for preventing legal risks and minimizing contract-related risks by using
standard contract forms and preliminary contract reviews since 2012.
Legal Support
Providing a variety of training programs to raise employee awareness in job ethics and compliance, Samsung Engineering makes sure that its staff can perform their duties in a fair and transparent manner. In
addition, Compliance Congress is convened every quarter to review the progress made with compliance
practices and share information on major issues. This allows Compliance Leaders to constantly hone
their competencies and promote voluntary compliance practices within the organization.
Incorporating Ethics and
Compliance into
Our Corporate Culture
Ethics & Compliance Training for Employees
In 2014, Samsung Engineering gave on-site training courses concerning ethics and legal compliance at
overseas offi ces and project sites in the UAE, Algeria, China, Mexico, and Kazakhstan. We also distributed anti-corruption guidelines to all employees and sent DVDs to project sites where online courses
were not accessible due to IT infrastructure problems.
* We did not provide separate online compliance training in 2013, as it was replaced by company-wide offl ine training.
2012 2013 2014
Offl ine ethics & compliance training hours (hours) 12,110 7,547 11,100
Anti-corruption 5,004 1,222 2,754
Legal compliance 7,106 6,325 8,346
No. of trainees who received offl ine ethics &
compliance training (persons)
11,802 7,406 10,495
Anti-corruption 4,904 998 2,191
Legal compliance 6,898 6,408 8,304
No. of trainees who received online ethics &
compliance training (persons)
11,117 8,335 12,004
Anti-corruption 4,837 8,335 7,043
Legal compliance* 6,280 0 4,961
Training hours
(Offl ine)
No. of trainees
(Offl ine)
No. of trainess
11,100hours 10,495persons 12,004persons
While instructing our employees on the Samsung Business Principles and Samsung Employee Guidelines, we also maintain a website for ethical management, where anyone can anonymously report unfair
practices or unlawful demands by someone who is abusing his/her position or authority, as well as corruption via phone, fax, e-mail, post or website. All information pertaining to the whistleblower is fully
protected, and all reported cases are handled differently by type. Of the 125 cases reported in 2014, we
appropriately dealt with every case related to corruption or complaints, except for those we were unable
to fully verify, those irrelevant to Samsung Engineering, or claims later found to be false. Of the cases
we addressed, complaints accounted for 43 percent and corruption cases made up only eight percent.
As with the corruption matters, we meted out the appropriate punishment according to the seriousness
of the infraction after thorough fact-fi nding investigations were carried out.
Whistleblowing System
Legal Consultation Services unit–case
No. of cases providing legal advice to employees
Whistleblowing unit–case
No. of reported cases
Ethics &
2014 Sustainability Performance
Creation of Economic Value
Ethics & Compliance
Safety & Environment
Employees & Workplace
Supply Chain
Local Community
48 492014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
Health, Safety and Environment (HSE) is always at the top of our priority list when it comes to our
business performance. As a result, our company-wide HSE strategies help employees effectively
raise their awareness of safety and the environment through various programs. For Samsung
Engineering, the ultimate goal is to enhance our safety control to the highest possible level so
that all employees instinctively carry out safety control practices at work. Additionally, the goal
of company-wide environmental management is to minimize our environmental footprint and
carbon emissions from start to fi nish for every project.
Samsung Engineering runs a wide range of safety training programs at home and abroad, including on/
offl ine safety training for employees dispatched to project sites and regular workshops for safety managers, all in an effort to raise safety awareness among both employees and subcontractors.
On-site Safety Training
In addition to regular safety training at project sites, we adopted a Line Management training program
in 2014 whereby the heads of each business division and construction managers now play a leading role
in the program. As a result, our safety training performance in 2014 improved by more than 60 percent
compared to the previous year.
Improving Safety Culture
* Training was conducted at project sites for Samsung Engineering workers and subcontractors’ employees.
Samsung Engineering has aligned its safety practices to the requirements stipulated in domestic and
international safety & health management systems (KOSHA 18001 and OHSAS 18001). Specifi cally,
we run regular client satisfaction surveys and constant safety practice reviews to improve our safety &
health management systems.
Safety Inspection at Domestic & Overseas Worksites
In 2014, Samsung Engineering ran a total of 65 regular safety inspection(quarterly in Korea and semiannually overseas) at its project sites. With safety inspections at domestic sites, the department in
charge of safety support from our headquarters collaborated with an external agency (Korea Industrial
Safety Association) to ensure the credibility of the inspections, while in-house inspectors who have received training through Lloyd’s Register Quality Assurance (LRQA)’s OHSAS 18001 Certifi ed Inspector
Training Course conducted safety inspections at overseas sites, improving the reliability of the results.
Safety & Health
Management System
Client Safety Satisfaction Surveys
We survey domestic and overseas clients on an annual basis to better understand their satisfaction with
our safety practices. The 2014 survey results showed that we had made improvements in our communication & training performance, helping earn us three more points than 75 points we recorded in the
previous two years.
unit–point unit–point
2012 2013 2014
2012 2013 2014
Domestic safety practices
Clients’ safety satisfaction
Overseas safety practices
No. of safety practice trainees
In 2014, exposure work hours amounted to 188,942,193 manhours. The level of accident management
displayed by the total recordable incident rate (TRIR) was slightly up from the previous year, at 0.0772,
while the lost time incident rate (LTIR) at our overseas sites stood at 0.0063, slightly lower than that of
the previous year. The domestic incident rate was down from a year ago at 0.04 percent.
Domestic & Overseas Incident Rates
Safety & Health
Management Performance
* Figures are released by the Ministry of Employment & Labor on July 1st of the following year. Consequently, the 2013 fi gure was changed
from the previous report.
** TRIR (Total Recordable Incident Rate) = (Fatality + Lost Workday Case + Restricted work + Medical treatment) / Manhour × 200,000
*** LTIR (Lost Time Incident Rate) = Lost Workday Case / Manhour x 200,000
2012 2013 2014
industrial accident rate*
2012 2013 2014
0.0793 0.0698 0.0772
2012 2013 2014
2014 total exposure work hours
Safety &
2014 Sustainability Performance
Creation of Economic Value
Ethics & Compliance
Safety & Environment
Employees & Workplace
Supply Chain
Local Community
50 512014 Samsung Engineering Sustainability Report
Samsung Engineering makes consistent efforts to reduce its energy use at its headquarters and project
sites at home and abroad. From 2014, we began to provide lodging to employees at our domestic project
sites. As a result, employees’ accommodation has been added to our indirect energy use scope since
then, resulting in a slight rise in the Scope 2 performance from the previous year.
Energy Management
Overview Approach to Sustainability Sustainability Progress Appendix
Safety Accomplishments by Project
Samsung Engineering has recorded a staggering number of safe manhours without lost time accidents
(LTA) with numerous projects, including the 30 million MH without LTA with the Saudi Aramco Shaybah
Package #4 Increase Gas Handling Capacity project. Without a doubt, Samsung Engineering has successfully translated its Safety-First motto into every project.
Climate change factors that may have an influence on our business activities are not only direct factors
(e.g. GHG emission-related regulations), but also mid- to long-term trends in the market arising from
government regulations and legislation to mitigate climate change.
Climate Change Risks and
Our Response
Risk & opportunity Impact Strategic direction
Risk • Domestic and international climate
change-related regulatory risks, such as
the emissions trading scheme (ETS) and
energy GHG target management system
• Damages from typhoons and floods
arising from climate change
• Costs in responding to regulations
related to climate change and potential
costs from failure to effectively respond
to regulations
• Increased costs of preparing for
disasters and increased insurance
• Preemptive
responses to
• Entering the
Opportunity • Changes in market trends due to climate
• Expanding the need for environmental
businesses in order to address climate
- Raising energy efficiency through
improvement of old equipment,
installing air pollution prevention
facilities, and sewage/wastewater
treatment facilities
* The above list includes only the projects that achieved at least 1 million MH without LTA as of 2014.
Overseas Korea
Project Country Safety MH Date Project Country Safety MH Date
Ras Laffan DHT Qatar 4.5 million MH
without LTA
Samsung Display
Korea 3 million MH
without LTA
Marubeni Textile
Angola 1.5 million MH
without LTA
SMP W-1 Korea 4 million MH
without LTA
Saudi Aramco
Shaybah Package
#4 Increase Gas
Handling Capacity
30 million MH
without LTA
Ultrapure Water
& Air Pollution
Prevention Facility
Korea 1 million MH
without LTA
MOW Muharraq
Sewage Treatment
Bahrain 10 million MH
without LTA
Treatment Plant
Korea 1 million MH
without LTA
Samsung ElectroMechanics K2
China 2.6 million
MH without
16L Upside FAB
Rooftop Ventilation
Korea 1 million MH
without LTA
SEMV Vietnam 2 million MH
without LTA
S3-Ph1 Wastewater
Treatment Facility
Korea 3 million MH
without LTA
Black & Delayed
Coker (CBDC)
UAE 28 million MH
without LTA
S3 Air Pollution
Prevention Facility
Korea 1 million MH
without LTA
Marubeni Textile
Angola 1.5 million MH
without LTA
Samsung Biologics
Edison Phase-2
Korea 1.5 million MH
without LTA
Samsung ElectroMechanics K2
treatement &
China 1 million MH
without LTA
Treatment Facility
Phase 7
Korea 2 million MH
without LTA
Rooftop Ventilation
Korea 1 million MH
without LTA
Energy Use
* Energy consumption covers the direct and indirect energy consumption data at all our business premises, including the head office
building and all domestic & overseas project sites.
* As overseas sites account for the majority of our premises, energy consumption is based on the net calorific value as per IPCC
international standards.
※There is a margin of error of less than ±1 GJ between the data in the table above and the actual figures, as we rounded off to the
nearest decimal place.
unit–GJEnergy consumption 2014 Energy consumption to annual revenue
2012 2013 2014
Energy consumption* (GJ, Net calorific value) 2,756,446 3,408,666 3,077,389
Direct energy consumption (GJ) 2,617,900 3,279,706 2,877,653
Gasoline 179,690 261,603 217,825
Diesel 2,394,743 2,997,449 2,594,323
Kerosene 3,344 1,915 6,036
Heavy oil 5,976 - LNG 33,127 18,277 22,467
LPG 1,021 462 37,002
Indirect energy consumption (GJ) 138,547 128,960 199,735
Energy consumption to annual revenue
(GJ/KRW in billions)
240.9 347.6 345.3
345GJ/KRW in billions
2014 Sustainability Performance
Creation of Economic Value
Ethics & Compliance
Safety & Environment
Employees & Workplace
Supply Chain
Local Community
52 532014 Samsung Engineering Sustainability Report
Samsung Engineering applies a number of measures to cut down on greenhouse gas (GHG) emissions
from its entire work process of engineering, procurement, and construction (EPC). Furthermore, we
have all our GHG emission figures audited by a third party assurer not only with our direct/indirect GHG
emissions from energy use at our head office building and project site offices, vehicle fuel consumption
and construction equipment, but also with other indirect GHG emissions from our subcontractors’ use
of construction machinery, employees’ commutes and business trips. Additionally, we monitor our other
indirect GHG emissions from the entire business value chain, ranging from logistics and purchase of
materials to the operation and disposal of completed plants and capital goods.
Reduction of Greenhouse
Gas Emissions
Overview Approach to Sustainability Sustainability Progress Appendix
Committed to minimizing the environmental impact of waste from the construction process, Samsung
Engineering develops waste management plans at every project site and regularly checks its performance to reduce its waste generation and increase its recycling rate. As a result, the waste amount
significantly declined from the previous year, while the recycling rate slightly improved over the same
period. At all our domestic project sites, we strictly separate waste with the aim of generating no mixed
construction waste.
Waste Control
Classification 2012 2013 2014
Waste amount (tons) 551,087 536,586 238,939
Construction waste 529,676 508,851 224,450
Operational waste 21,170 27,574 14,073
Designated waste 241 161 416
Waste treatment amount (tons) 551,087 538,586 238,939
Landfill 436,962 465,115 166,418
Incineration 38,558 18,414 18,992
Recycling 75,468 53,057 53,528
Marine discharge 99 - Waste amount to annual revenue (tons/KRW in billions) 48.2 54.7 26.8
Classification 2012 2013 2014
Waste recycling rate* (%) 20.7 13.3 30.4
Domestic 94.0 97.6 98.0
Overseas 13.5 4.6 12.7
※There is a margin of error of less than ±1 ton between the data in the table above and the actual figures, as we rounded off to the
nearest decimal place.
* The waste recycling rate is the ratio of the incineration & recycling waste amount to total waste amount.
Waste Amount & Treatment
unit–tonsWaste amount 2014 Waste amount to annual revenue
27tons/KRW in billions
* GHG emissions from rented stores significantly declined thanks to the sell-off of the SEI Tower building.
** The commissioned environmental facilities figures represent the GHG emissions amount from the operation of sewage/wastewater
treatment plants and incineration facilities.
※ There is a margin of error of less than ±1 tCO₂e between the data in the table above and the actual figures, as we rounded off to the
nearest decimal place.
Classification 2012 2013 2014
Direct emissions (Scope 1) (tCO₂e) 196,956 249,240 219,627
Indirect emissions (Scope 2) (tCO₂e) 17,590 16,293 25,789
Direct/Indirect GHG emissions (Scope 1,2) (tCO₂e) 214,546 265,533 245,416
Auxiliary facilities at project sites 129,201 135,262 122,308
Head office building 16,325 13,830 13,250
Construction equipment 28,381 54,614 62,204
Vehicles 40,639 61,828 47,654
Direct/Indirect GHG emissions to annual revenue
(tCO₂e/KRW in billions)
18.8 27.1 27.5
unit–tCO₂eDirect/Indirect GHG emissions amount 2014 Direct/Indirect GHG emissions to annual revenue
Classification 2012 2013 2014
Other indirect emissions (Scope 3) (tCO₂e) 431,239 272,458 146,534
Rented stores * 404 2,799 41
Employee commuting (company shuttle buses) 376 502 492
Overseas business trips by air 20,124 18,979 18,692
Subcontractors (construction equipment) 336,751 229,173 105,975
Commissioned environmental facilities** 73,583 21,005 21,335
Greenhouse Gas Emissions
Samsung Engineering has relied on its internal system to monitor its GHG emissions from its head office
building and construction sites at home and abroad since 2010, and has been making consistent efforts
to reduce these emissions. Thanks to our diverse programs, such as training of employees and subcontractors on lowering GHG emissions, our total GHG emissions(Scope 1, 2 & 3) are constantly decreasing.
28tCO₂e/KRW in billions
2014 Sustainability Performance
Creation of Economic Value
Ethics & Compliance
Safety & Environment
Employees & Workplace
Supply Chain
Local Community
54 552014 Samsung Engineering Sustainability Report
Classification 2012 2013 2014
Environmental expenses 8,269 9,865 14,470
Environmental management expenses* 8,183 9,741 14,228
Green purchase expenses (MRO**) 86 124 242
* Environmental expenses are the sum of on-site environmental preservation expenses (environmental pollution prevention facilities’
operational costs) and waste treatment/recycling costs.
** MRO (Maintenance, Repair and Operation): All expendable supplies, such as stationery, tools and clean-up devices, except for raw
materials and large-scale facilities & equipment for business activities.
Overview Approach to Sustainability Sustainability Progress Appendix
With project sites located around the globe, Samsung Engineering develops its own water management
plans for each project according to local water supply conditions—either water-scarce areas or those
areas requiring preventive measures against storm and flood damage—in order to ensure a stable supply of water. More specifically, we recycle water in water-scarce regions to minimize the impact of our
projects on local water resource conditions.
Water Risk Management
unit–KRW in millions
※There is a margin of error of less than ±1 ton between the data in the table above and the actual figures, as we rounded off to the
nearest decimal place.
Water Consumption
unit–tonsWater consumption
Classification 2012 2013 2014
Water consumption (tons) 1,957,937 2,149,668 2,365,489
Tap water 1,138,316 1,226,882 1,275,908
Underground water 585,776 315,579 316,016
Surface water 77,147 40,017 9,966
Recycled water 156,698 567,190 763,600
Water consumption to annual revenue
(tons/KRW in billions)
171.1 219.2 265.4
Samsung Engineering has its own Environmental Technology Development Center for R&D of ecofriendly technology and makes multi-faceted efforts to minimize its environmental impact and increase
green purchase practices.
Investments & Expenses
Environmental R&D Investment
In 2014, Samsung Engineering invested KRW 12 billion in environmental R&D investment. The new
technologies developed from these R&D activities are then applied to our actual environmental and
water treatment projects to minimize our environmental impact.
* Training was conducted at project sites for Samsung Engineering workers and subcontractors’ employees.
Environmental Education*
Dedicated to raising site operators’ environmental consciousness, Samsung Engineering gives continued
on-site environmental training to all its employees and subcontractors’ operators. In 2014, a total of
155,029 workers completed this course.
2014 Water consumption to annual revenue
265tons/KRW in billions
Environmental Expenses
As a result of preventive environmental management measures we have taken at our project sites, our
environmental management expenses are on the increase each year. In 2014, environmental preservation expenses went up significantly to control fugitive dust and to prevent water pollution. Additionally,
we promote green purchase practices with our procurement, which fall under the company’s Green
Purchase Basic Principles. As a result, company-wide purchases of eco-friendly products are going up
every year.
unit–KRW in millions unit–%Environmental expenses 2014 Environmental management expense ratios
Waste treatment/
recycling costs
2014 Sustainability Performance
Creation of Economic Value
Ethics & Compliance
Safety & Environment
Employees & Workplace
Supply Chain
Local Community
No. of environmental practice trainees
56 572014 Samsung Engineering Sustainability Report
Under a people-fi rst principle, we spare no effort in training employees and investing in furthering their capabilities. We also strive to ensure fair and reasonable performance evaluations and
compensation. In addition, we are building an employee-friendly.
Overview Approach to Sustainability Sustainability Progress Appendix
Samsung Engineering encourages local hiring policies to localize its operations, which serves to reinforce its overseas operational capabilities. At the same time, we are increasing the employment of
female talents to help build a corporate culture where individuals can realize their full potential without
Diversity in the
Samsung Engineering is committed to offering fair and equal job opportunities in order to contribute to
job creation and ease social disparity. Furthermore, as a company that operates in the global market,
we are making various efforts to promote diversity in our corporate culture and encourage active communication in the workplace.
Workforce Status
Classifi cation 2012 2013 2014
Korea (persons) 7,134 6,983 6,653
Overseas (persons) 1,677 1,534 1,602
Asia (excluding Korea) 1,342 1,245 1,330
Americas 221 202 176
Middle East 63 37 52
Europe 26 27 25
Africa 25 23 19
By Region
Classifi cation 2012 2013 2014
Executives (persons) 111 108 85
Managers (persons) 3,275 3,200 3,126
Lower-rank staff (persons) 5,425 5,209 5,044
By Position
Classifi cation 2012 2013 2014
Permanent (persons) 5,331 5,437 5,388
Fixed-term (persons) 2,050 1,775 1,464
Overseas Offi ces (persons) 1,430 1,305 1,403
By Employment
Classifi cation 2012 2013 2014
Male (persons) 7,520 7,224 6,946
Female (persons) 1,291 1,293 1,309
By Gender
Total workforce as of 2014
Global Employees
As a multinational company, our overseas offi ces and project sites are creating synergies by recruiting
and effi ciently managing local talents.
* The term “manager” includes anyone at the manager or above job title.
** Global managers ratio means the ratio of the global managers to total global employees.
***Locally hired managers to locally hired employees fi gures do not include global staff working at the company’s headquarters.
Classifi cation 2012 2013 2014
Global employees (persons) 1,607 1,465 1,551
Managers* 367 360 336
Global employee rate (%) 18.2 17.2 18.8
Global manager rate** (%) 22.8 24.6 21.7
Locally hired managers to locally hired
employees*** (%)
16.6 18.1 15.0
2014 global employees rate
Female Employees
In support of its female employees’ competency-building, Samsung Engineering runs a wide range of
different programs. The quarterly Group Mentoring program, for example, is led by female managers
and organizes approximately 10 female employees into small groups to discuss their job skills, selfdevelopment, and leadership goals. There is also an annual female leadership conference which helps
female employees develop career maps and assists them in reinforcing their leadership abilities. In prevention of career interruption due to childbirth or childcare, the company operates a separate program
with the help of the in-house counseling center to help female employees quickly readjust themselves
to the workplace when they return from child-care leaves.
* The term “manager” includes anyone at the manager or above job title.
** Female managers ratio means the ratio of the female managers to total female employees.
Classifi cation 2012 2013 2014
No. of female employees (persons) 1,291 1,293 1,309
Managers* 114 133 139
Female employee rate (%) 14.7 15.2 15.9
Female manager rate** (%) 8.8 10.3 10.6
Wage tables for men and women Same Same Same
2014 Female employee ratio
Classifi cation 2012 2013 2014
Under 30 (persons) 2,815 2,456 2,077
30s (persons) 2,993 3,133 3,363
40 and above (persons) 3,003 2,928 2,815
By Age
Employees &
2014 Sustainability Performance
Creation of Economic Value
Ethics & Compliance
Safety & Environment
Employees & Workplace
Supply Chain
Local Community
58 592014 Samsung Engineering Sustainability Report
Guided by the aim of fostering global leaders who can contribute to the corporate vision of becoming
a leading global company, our training courses both cultivate loyalty to the company and raise ethical
awareness in our employees, allowing them to gain profound expertise in their respective fields with a
deep sense of respect for their fellow co-workers.
Systematic Human
Resources Development
Overview Approach to Sustainability Sustainability Progress Appendix
Samsung Engineering provides assistance to retirees through a number of programs so they can prepare for a financially-sound retirement. In accordance with Korea’s Employee Retirement Benefit Security Act, we have adopted a corporate retirement pension plan that helps our employees prepare for
retirement early on, and have opted for a defined benefit-type program that is professionally managed
by Samsung Life Insurance. As of December 2014, the pension fund amounted to KRW 198.4 billion.
Under the slogan “A job is the best welfare program,” Samsung Engineering established the Career Development Center (CDC) in partnership with Samsung C&T and Samsung Heavy Industries. The CDC
recruits talents with ample experience, expertise, technological competitiveness, and job capabilities,
and then sorts them by job opportunity at partnering companies.
Caring for Retirees
* The retirement rate is based on the annual average number of full-time employees at the company’s headquarters (5,380).
Classification 2012 2013 2014
Retirement rate* (%) 2.7 2.5 5.9
Retirement fund (KRW in billions) 102.8 163.7 198.4
Employee Retirement Rate
Career Development Center Support Process
for career
Employee Education Performance
Samsung Engineering’s education programs consist of four categories: value, job skills, leadership, and
global competencies. In 2014, the average per-employee annual training hours stood at 76 hours. We
also offer basic courses for new entry-level employees to help them quickly adjust to the organization,
and a separate program for newly promoted employees. The mandatory job skills training program (by
job duty and rank) assists employees of all ranks in developing and gaining new job competencies. While
developing competencies among core talent groups and managing their performance, we have completed training systems at our seven major overseas offices to help locally hired employees reinforce their
competencies. In addition, we constantly provide employees with chances to take training programs so
they can cultivate a more global mindset.
* Per-employee training hours are based on the company-wide annual average workforce (8,406 employees, including overseas offices).
Classification 2012 2013 2014
Total training hours (hours) 634,793 633,956 636,140
Value 212,782 187,698 94,611
Job skills 262,693 287,726 375,131
Leadership 19,116 19,208 33,216
Global competencies 140,202 139,324 133,182
Total training expenses (KRW in millions) 11,998 8,052 6,308
Per-employee training hours (hours) 76 74 76
Per-employee training expenses
(KRW in ten thousands)
144 93 75
Total training expenses to annual revenue (%) 0.1 0.1 0.1
Total training hours Per-employee training hours Per-employee training expenses
636,140hours 76hours KRW750thousand
Samsung Engineering offers generous fringe benefits to ensure a healthy workplace and higher quality
of life for its employees, along with leisure activity support, family health, and financial stability. In 2013,
this led to the company being singled out as a good performer at the Ministry of Gender Equality and
Family’s Family-friendly Business Certification Awards. A year later, we also implemented several other
maternity benefit programs.
Work-Life Balance
Maternity and Childcare Leaves
No. of childcare leaves
(Female 73 / Male 7)
Rate of return to work after
parental leaves*
Retention rate after
parental leaves**
80cases 96% 99%
* Rate of return refers to the ratio of actual number of employees who returned to work after parental leaves to those who planned to
be back within the year in question.(female)
** Retention rate refers to the ratio of employees in office in the year in question to those who returned the previous year (excluding
female employees who left the company within one year of returning to work).
Classification 2012 2013 2014
No. of maternity leaves (cases) 44 61 79
No. of childcare leaves (cases) 29 40 80
Average duration of childcare leaves (months) 5 7 8
2014 Sustainability Performance
Creation of Economic Value
Ethics & Compliance
Safety & Environment
Employees & Workplace
Supply Chain
Local Community
60 612014 Samsung Engineering Sustainability Report
Addressing Employee Grievances
As the official representative body for employees, the Industrial Relations Council represents the entire
workforce, cooperating with the company to promote mutual benefits and helping improve the working
environment. We also have in place on/offline processes to address employee grievances. In 2014, we
held on-site meetings 34 times in Korea and eight times overseas. Moreover, we had 76 lunch meetings
at the corporate headquarters and operated an Industrial Relations Council meeting room, where we
listened to employee grievances whenever they wanted. Employees can also anonymously send an email or post their complaints & grievances on the Industrial Relations Council’s website bulletin board.
After collecting employee feedback through various channels, we then consult with the Industrial Relations Council at regular meetings to improve systems and employee benefits.
Process to handle grievances
Overview Approach to Sustainability Sustainability Progress Appendix
A. Systems
B. Infrastructure
C. Corporate culture/Communication
D. Project site
Classification 2012 2013 2014
No. of offline communication sessions (cases) 75 91 160
No. of lunch meetings at the headquarters 12 9 76
No. of on-site meetings in Korea 24 42 34
No. of on-site/office meetings overseas 16 12 8
Counseling 23 28 42
No. of online communication sessions (cases) 190 240 315
No. of VOC cases received through the Industrial
Relations Council website
108 125 181
‘Addressed to the Industrial Relations Council Head’ 82 115 134
No. of system improvement cases (cases) 6 9 12
The growing cultural diversity within our workforce underscores the importance of interactive communication and cooperation among employees more than ever. As a result, we work hard to promote
across-the-board communication in building mutual understanding and respect among all our employees.
Promoting Employee
Promoting a Strong Corporate Culture
In order to deal with the growing diversity and changes to the global business environment, we are
committed to strengthening our corporate culture and communication channels. Starting in 2014, we
began offering offline Samsung Integrity training to employees on the subjects of humanity, morality,
and etiquette on an annual basis. Before dispatching employees to overseas project sites, we give separate training on how to respect cultural differences and safety awareness. In 2014, we laid the foundation for more systematic corporate culture promotion activities that follow a “plan-do-see” process.
The first step was to set up an Organizational Culture Office dedicated to planning and implementing
corporate culture promotion activities and appointing change agents who serve as departmental-level
facilitators of communication and corporate culture promotion. Samsung Engineering’s Suggestion Box
is also instrumental in promoting interactive communication between the company and employees,
who are free to make suggestions on how best to improve certain business practices, with breakthrough
ideas being singled out and awarded by the CEO. Furthermore, we expanded the employee satisfaction
survey to overseas offices in 2014, with the 2014 Samsung Culture Index survey showing that 77 percent of our employees were satisfied with their jobs.
* Corporate culture classes focus on managing diversity and building communication to prevent discrimination based on gender,
nationality, status or age.
** The SCI survey results represent the percentage of employees who scored above 50 points all the way to the “Work” section
(goal commitment, job satisfaction, and energy survey results) of the SCI criteria.
No. of participants receiving
education on corporate culture*
Satisfied employees rate based on
Samsung Culture Index (SCI)**
No. of suggestions made through
the Suggestion Box
3,668persons 77% 430cases
No. of offline communication
No. of online communication
No. of system improvement
160cases 315cases 12cases
Consultation with
HR staff/Dept.
Regular Industrial
Relations Council
2014 Sustainability Performance
Creation of Economic Value
Ethics & Compliance
Safety & Environment
Employees & Workplace
Supply Chain
Local Community
62 632014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
At Samsung Engineering, we are well aware that sharing value and growth with our suppliers
are essential to securing a competitive edge in the global engineering and construction market,
where competition is constantly intensifying. In pursuit of co-prosperity and shared growth with
suppliers, we always put ourselves in their shoes when making major business decisions.
Samsung Engineering is constantly discovering new and competitive suppliers to build up its global
business network. As of 2014, we have a total of 4,105 vendors and 3,677 subcontractors around the
world registered as our suppliers. Our global network of suppliers heightens our competitiveness in all
our business operations, while our proactive local sourcing of subcontractors contributes to the development of local economies.
Supply Chain
Asia (excluding Korea)
* This is based on officially registered design companies.
** The 157 subcontractors signed an agreement on shared growth with us in 2015.
Europe & Africa
Middle East & Others
Our suppliers are classified into design companies for engineering, vendors for procurement, and subcontractors for construction. Each working-level department registers its suppliers as a partner after
scrutinizing their environmental & ethical performance, as well as their expertise and competencies in
projects. Once registered, they tend to maintain long-term partnerships.
Fair Selection and
Evaluation of Suppliers
* QCP (Quality Check Plan): checking the design process and results based on a standardized design checklist, procedures, and roles
& responsibilities by department
Supplier Criteria
Design companies Regular assessments: performance capabilities (40), quality (30), cooperation (30)
Random tests: QCP* (100)
Vendors Project management (80 points):
order management (25-40), delivery performance (30-40), quality management (10-15)
Corporate management (20 points):
business stability (16), quality/safety/environmental management (4)
Subcontractors Total 100 points: construction (40), quality (25), safety (20), environment (15)
Rewards: achievement of safe and accident-free construction, quality partner prize
Penalties: sanctions for accidents related to safety, quality, ethics, and environment
Supplier Evaluation Criteria
Classification 2012 2013 2014
Design companies* 145 165 165
Vendors 3,062 4,045 4,105
Subcontractors 3,151 3,960 3,677
Suppliers to be managed
Design companies 26 26 27
Vendors 87 91 79
Subcontractors** 165 (domestic)
112 (overseas)
149 (domestic)
588 (overseas)
157 (domestic)
701 (overseas)
Supply Chain
Environmental/Safety aspect Social aspect
Environmental & Social Evaluation on the Supply Chain
Samsung Engineering comprehensively evaluates each vendor’s performance regarding the environment, safety, labor practices, and business ethics practices before issuing an S-Partner (Sustainable
Partner) certificate. We provide our vendors with detailed guidelines on these practices defining each
evaluation criteria item and provide guidebooks on best practices from S-Partners annually to motivate
our suppliers with regard to their CSR activities. Through extensive due diligence, we designated five
vendors in 2013 and four vendors in 2014 as S-Partners. We plan on gradually expanding the scope of
suppliers for this certificate.
S-Partner certification
Safety & Health
Business ethics
& Compliance
Labor & Human
Vendors Subcontractors
4,105companies 3,677companies
Supply Chain
2014 Sustainability Performance
Creation of Economic Value
Ethics & Compliance
Safety & Environment
Employees & Workplace
Supply Chain
Local Community
64 652014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
Samsung Engineering chooses suppliers with excellent performance results based on their expertise,
capabilities, and ethical/environmental practices by type of project to offer incentives, while maintaining
active and prompt communication channels with suppliers. Based on supplier feedback and by sharing
our growth strategies with them, we strive to attain mutual growth based on win-win partnerships.
Through initiatives such as the Mutual Growth Fund, Samsung Engineering offers fi nancial aid to competitive suppliers suffering from temporary liquidity problems. In partnerships with fi nancial institutions, the fund offers loans at low interest rates and subsidizes R&D expenses for prize-winning ideas
through its Technology R&D Idea Contest. We also support our suppliers with their education activities
and recruitment through government-certifi ed training institutions and online training programs, as well
as job fairs exclusively for our suppliers.
Various Support for Mutual
Promoting Communication
with Suppliers
Communication with Suppliers
As a responsible global corporate citizen, Samsung Engineering is proud to contribute to local
communities through its business activities. At the same time, we actively engage in diverse
social outreach activities in our clients’ countries and other nations where our project sites are
located. Moving forward, we will continue to focus on developing systematic social outreach
activities to achieve mutual and sustainable growth with local communities. 
As a knowledge-based business, Samsung Engineering lends its business acumen to fostering human
resources and investing in the future of its clients’ countries as part of its commitment to global coprosperity. With all our sponsorships and volunteer activities, we put particular emphasis on children,
education, the environment, and generating future value for everybody.  
Systematic Social
Outreach Programs
Social Contribution Expenses
In 2014, Samsung Engineering spent two times more than the previous year on social contribution activities, including the construction of a youth sports center for residents of Gangdong-gu, Seoul, where
the company’s headquarters are located.
* This is based on the annual average number of employees at the headquarters in Korea (7,064 employees, excluding overseas offi ces).
unit–KRW in millions unit–KRW in ten thousands
2012 2013 2014
2012 2013 2014
Social contribution expenses Per-employee social
contribution expenses*
Classifi cation 2012 2013 2014
Social contribution expenses (KRW in millions) 6,817 4,752 10,378
Monetary donations (KRW in millions) 5,962 2,977 8,562
Education 1,091 1,435 63
Medical services 1,218 600 1,500
Culture 250 58 30
Environment 284 181 50
Social welfare 3,119 415 6,815
Others 0 288 104
Direct volunteer activities (KRW in millions) 502 617 588
Hope Library project 125 4 154
Eco-generation program 343 210 250
Support of farming villages/social welfare 34 311 184
Others 0 92 0
Employee fundraising (KRW in millions) 353 1,158 1,228
Per-employee social contribution expenses
(KRW in ten thousands)
97 65 147
Supplier Communication channel Frequency Details
Design companies Subdivision meeting by
Bimonthly · Sharing each department’s pending issues &
discussing ideas for improving quality control
· Listening to suppliers’ feedback
Vendors General meeting of Seongjohwe Annually · Sharing operational organization information and
strategies related to Seongjohwe
· CEO meetings
Subdivision meetings of
Randomly · Presentations on subdivisions’ performance results
On-site meetings with vendors Randomly · Research on the current status of suppliers’
performance for mutual growth
· Brainstorming for ideas on mutual growth based on
suppliers’ feedback
Subcontractors Family Satisfaction
Index (FSI) surveys
Overseas Semiannually · Introduction to supplier support programs
· Listening to suppliers’ feedback on construction/
quality/safety control and transactional practices
Domestic Randomly · Introduction to supplier support programs
· Listening to suppliers’ feedback
Discussion meetings Overseas Randomly · Introduction to supplier support programs
· Discussion on ideas for improving suppliers’ cost
· Listening to suppliers’ feedback
Domestic 3 times a
· Introduction to supplier support programs
· Understanding the Compliance Program (CP)
· Stress management programs
Issuing Newsletters Quarterly · News about taking orders, project progress, and
various other company news
· Delivered to the overseas subcontractors to be
Financial & Technological Assistance
Mutual Growth Fund No. of suppliers participating in
the Technology R&D Idea Contest 
No. of ideas qualifi ed for the
Technology R&D Idea Contest
KRW 17billion 9companies 14cases
Recruitment & Training Support
No. of suppliers
participated in job fair
No. of employees hired
through job fairs
No. of suppliers that
received training support
No. of supplier employees
who received training
11companies 94persons 505companies 837persons
No. of countries where we conduct
social contribution activities
2014 Sustainability Performance
Creation of Economic Value
Ethics & Compliance
Safety & Environment
Employees & Workplace
Supply Chain
Local Community
66 672014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
* Combined number of visitors to our Korean and English websites.
Samsung Engineering’s representative CSR program, Eco-generation, involves diverse on/offline environmental education programs to cultivate environmental consciousness in our future generations.
Environmental Education
for Future Generations
Samsung Engineering maintains sisterhood ties with farming villages as part of its commitment to mutual growth of urban and farming villages. Each business division offers a helping hand to the nearest
sister farming village. This includes picking chili peppers and chestnuts, and arranging direct markets
for the farmers to sell their produce. As of 2014, we had ties with 16 farming villages. In the same year,
our direct market sold KRW 110 million worth of agricultural goods on Korean Thanksgiving Day and
New Year’s Day alone.
* Per-employee volunteer hours are based on the annual average number of employees at the headquarters (7,064 employees,
excluding overseas offices)
Total volunteer hours Total number of volunteers Per-employee volunteer hours*
30,247hours 4,610persons 4.3hours
Promoting Employee
Eco-generation websites
Building on the employees’ voluntary efforts to impart their knowledge on the environment to schools
since 1996, the Eco-generation program has been providing a wide array of environmental education
contents for children and youth through its websites. As of 2014, 17,000 future eco-leaders from 155
countries around the world had accessed Eco-generation page.
2012 2013 2014
2012 2013 2014
No. of visitors to the Eco-generation website* Cumulative number of member
countries of the website
Samsung Engineering Green Awards
In order to promote hands-on learning activities in schools, we held the 3rd Samsung Engineering Green
Awards for environmental study clubs in elementary and middle schools in 2014. The 30 clubs carried
out research activities on the environmental issues for six months and were awarded prizes based on
their on-line activities and the final presentations. We provided a total of KRW 21 million in scholarships
along with a Ministry of Environment Prize and Samsung Engineering CEO Prize.
Cumulative number of students participating in the Samsung Engineering Green Awards
Eco-generation Regional Ambassador
On the Eco-generation website, young environmental leaders worldwide post eco-related news clips.
Today, 240 aspiring Eco-generation Ambassadors from 34 countries are covering local environmental
news and carrying out environmental advocacy campaigns.
Cumulative number of Eco-generation Regional Ambassadors
Hope Library & Book Donations
Under the belief that a child’s education lays the cornerstone for a better future, Samsung Engineering
has been donating Hope Libraries for years to local communities where it operates. In 2014, we donated two Hope Libraries, one each in Bolivia and Uzbekistan. Later on—even after we have completed a
project—we continue to donate books on a constant basis to these same libraries or other organizations
within the country. As of 2014, we had donated a total of 28,390 books.
unit–books unit–cases
2012 2013 2014
2012 2013 2014
Cumulative number of books donated Cumulative number of Hope Libraries donated
Water of Life
Our employees have helped raise funds for developing wells in Kenya, where many residents are suffering from extreme draughts and water scarcity. As of 2014, we had raised a total of KRW 780 million,
funding the development of 30 wells around Kenya’s Tana River, repairing 100 water pumps, and building drinking water supply systems at a refugee camp in Kakuma.
Cumulative number of wells developed
2014 Sustainability Performance
Creation of Economic Value
Ethics & Compliance
Safety & Environment
Employees & Workplace
Supply Chain
Local Community
6968 2014 Samsung Engineering Sustainability Report
Company Profile
Financial Statement
GRI Index
Assurance Statement
Overview Approach to Sustainability Sustainability Progress Appendix
The HSSE Division, which was promoted from the department level to the division level in March 2014,
has revamped the HSE systems and implemented various safety and environmental awareness activities.
Organization Chart
Company Profile
In 1996, Samsung Engineering was listed on the Korea Exchange. As of the end of 2014, its capital
stock was KRW 200 billion, with 40 million common shares. The largest shareholder is Samsung SDI
Co., Ltd., which holds a 13.1 percent stake in the company, while Samsung C&T, an affiliate, has a 7.8
percent stake. Shareholders can directly participate in the decision-making process on major issues by
exercising voting rights at the general shareholders’ meeting. Their opinions are also reflected in our
management policies and operations after being reviewed and approved by top management and the
BOD. In addition, we protect the rights of minority shareholders and listen carefully to their opinions
through diverse communication channels. Minority shareholders are entitled to the right of representative action and the inspection of accounting ledgers in accordance with Korea’s Commercial Act. As of
the end of 2014, minority shareholder ownership stood at 61.9 percent, or 24,756,596 shares.
Number of Shares and
Large shareholders and
affiliated persons
Treasury shares
Foreign investors
Individual shareholders
Domestic institutions
Hydrocarbon Proposal Division
Hydrocarbon Business Division
Power Business Division
Offshore Business Division
Industrial & Environmental
Business Division
Marketing Division
ENG’G Division
Procurement Division
Construction Division
Business Support
HSSE Division
Quality Management
Project Management
Corporate Process
Innovation Dept.
Management Dept.
Company Profile
Financial Statement
GRI Index
Assurance Statement
Audit Dept.
* As of May 2015
70 712014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
As of the end of May 2015, Samsung Engineering operates 19 global offices in 17 countries worldwide.Global Offices
Grupo Samsung Ingenieria Mexico, S.A. De C.V.
Calzada Mariano Escobedo Numero 476, Piso 3,
Colonia Anzures, Delegacion Miguel Hidalgo, 11590, Mexico
City, Mexico
Tel: +52-55-5080-7722
Samsung Engineering America Inc.
2050 W. Sams Houston Pkwy S.,
19th Floor Houston, TX 77042, USA
Tel: +1-832-690-3100
ASOG (AMEC Samsung Oil & Gas)
10777 Clay Road Houston, TX 77041, USA
Tel: +1-713-570-1000
Awards in 2014
Classification Award Description
Overseas MEED Quality Awards for Oil & Gas Projects of the Year in the GCC. UAE’s Fertil-2 Ammonia/Urea project performance evaluation
Overseas Engineering Project of the Year at the Platts Global Energy Awards Algeria’s Sonatrach Skikda Refinery project performance evaluation
Best EPC Service & Solution Company in the Middle East (oil & gas
category) at the World Finance Awards
World Finance magazine’s EPC company performance evaluation
Platinum Prize (brochure category) at the 2014 Spotlight Awards
Global Communications Competition
Awarded the prize by the League of American Communications Professionals
based on content and design
Prime Minister’s Commendation at the 2014 Overseas Construction/
Plant Day ceremony
Commendation by the International Contractors Association of Korea and
International Construction Policy Consulting Center
Minister of Science, ICT and Future Planning Commendation at the
50th Anniversary of Professional Engineers’ Day
Korean Professional Engineers’ Association
Korea Environment Corporation’s Chairman’s Award at the
Construction Environment Management Competition
Singled out by the Ministry of Environment and Ministry of Land,
Infrastructure, and Transport for improving working conditions by effectively
addressing the fugitive dust issue
Grand Prize (construction & plant engineering category) at the Next
Society CSR Summit in 2014
CSR performance evaluation by the Next Society Foundation
Domestic One of East Asia’s Top 30 CSR Companies in 2014
Singled out by the Hankyoreh Economic Research Institute and selected from
all listed companies in Korea, Japan and China for CSR performance
Domestic Grand Prize at the 3rd Korean Donation for Education Awards in 2014
Awarded the prize by the Ministry of Education and the Korea Foundation for
the Advancement of Science and Creativity for contributing to the promotion of
donations related to educational causes
Domestic Grand Prize at the 10th Youth Blue Growth Awards in 2014
Singled out by the Ministry of Gender Equality & Family Affairs for contributing
to the national drive for the sound growth of youth
External Evaluations in 2014
Classification Award Description
Overseas ENR Top International Contractors (Overseas: Ranked 15th)
Ranking by ENR, an American construction business magazine, and based on
overseas revenue
Overseas ENR Top International Contractors (Global: Ranked 34th)
Ranking by ENR, an American construction business magazine, and based on
domestic/overseas revenue
ENR Top Contractors by Region and Market (Middle East—1st)
(Petrochemicals—6th, Water Treatment—3rd)
Ranking by ENR, an American construction business magazine, and based on
revenue by region/market
Overseas MEED’s EPC operators in the Middle East (4th)
Ranking by MEED, a Middle Eastern economic magazine, and based on revenue
in the Middle East
Overseas Chemical Week’s ranking for revenue by region (6th) and Global E&C
revenue (13th)
Ranking by Chemical Week, an American hydrocarbon business magazine, and
based on revenue by region
Membership of Associations*
Association of Construction
Safety Managers
Maekyung SEL Club The Construction Management
Association of Korea
Korea Fire Facility Association Korea Information
Communication Contractors
Construction Safety Managers
Seoul Chamber of Commerce Korea Construction Engineers
Korea Society of Fire Protection
Professional Engineers
Korea Plant Industries
Construction KOSHA 18001
A Chapter of Korea Institute of
Registered Architects Seoul
Korea Professional Engineers
Korea Fire Safety Association Korea Institute of Plant
Engineering & Construction
Construction Outsourcing
The American Chamber of
Commerce in Korea
Korea Management Association Korea Engineering & Consulting
International Contractors
Association of Korea
Construction Environment
The European Chamber of
Commerce in Korea
The Korea International Trade
Korea Electrical Contractors
MCSE (MENA Construction
Safety Executives)
Seoul Chapter, The Construction
Association of Korea
Korea Business Council for
Sustainability Development
Korea Industrial Technology
Korea Electric Engineers
* As of May 2015
* Support for principles regarding CSR or external initiatives are under internal consideration.
Samsung Engineering (Malaysia) Sdn. Bhd.
W08-02(02) Level 8, West Wing, The ICON, No.1,
Jalan 1/68F, Jalan Tun Razak, 50400 Kuala Lumpur,
Tel: +60-3-2162-0714
Samsung Engineering India Private Ltd.
Advant Navis, Plot #7, Level 12~15, Sector 142, Expressway
Noida, U.P. (201305) India
Tel: +91-120-406-0700
Samsung Engineering Co., Ltd. Venezuela Office
Oficina 10-B-3, piso 10, Torre La Noria, Paseo Enrique
Eraso, Urbanizacion Las Mercedes, Sector San Roman,
Caracas, Venezuela
Samsung Engineering America do Sul Projecto e
Consultoria Ltda
20090-003 Av. Rio Branco 1, 16 andar, Sala 1610 Centro,
Rio de Janeiro, RJ, Brasil
Tel: +55-21-3613-3100
Samsung Engineering Co., Ltd. Russia Office
10 Vozdvizhenka str., 5th floor, Moscow 125009 Russia
Tel: +7-499-951-59-95~7
Samsung Engineering Co., Ltd. Milan Office
Viale della Liberazione 9, 20124, Milano, Italia
Tel: +39-02-9218-8201
Samsung Engineering Co., Ltd. Kuwait Office
Al-Soor Tower Floor 18, Al-Soor Street,
Kuwait City, Kuwait
Tel: +965-2291-5377
Samsung Engineering Saudi Arabia Co., Ltd.
P.O.BOX 35816 Samsung Naffora Techno Valley,
Jubail 31961, Kingdom of Saudi Arabia
Tel: +966-3-356-5910
Samsung Saudi Arabia Co., Ltd. Al-Khobar Office
P.O. Box 20520 Samsung Saudi Arabia (Al-Hugayet Tower
26th Floor) Al-Khobar 31952, Kingdom of Saudi Arabia
Tell: +966-13-849-6665
Samsung Engineering Co., Ltd. Iraq Office
Al Jadryah District 923 Street 15 House 15,
Tel: +964-790-183-5370
Samsung Engineering Co., Ltd. Algeria Office
16035 01 Rue Des Cretes - Hydra, Alger, Algerie
Tel: +213-21-48-4620
Samsung Engineering Co., Ltd. Abu Dhabi Office
P.O. Box 73410, 31st Floor, Etihad Tower 3,
Baynunah Street, Al Bateen, Abu Dhabi, UAE
Tel: +971-2-676-2323
BUT. Samsung Engineering Indonesia
135-856 Bapindo Plaza, 16th floor of Mandiri Tower Jl.
Jend Sudirman Kav.54~55, Jakarta, Indonesia
Tel: +62-21-2995-0112
Samsung Engineering Co., Ltd. Tokyo Office
Roppongi T-cube 19F, 3-1-1, Roppongi, Minato-ku, Tokyo,
106-8532, Japan
Tel: +81-3-6234-2184
Samsung Engineering Construction (Shanghai) Co., Ltd.
15F, Onelujiazui, No.68 Yin Cheng Road (C), Shanghai,
200120, China
Tel: +86-21-5010-6886
Samsung Engineering (Thailand) Co., Ltd.
No.1 Empire Tower Building, 37th floor,
South Sathorn Road, Yannawa, Sathorn, Bangkok, 10120
Tel: +66-2-232-7500
Company Profile
Financial Statement
GRI Index
Assurance Statement
72 732014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
Consolidated Statements
of Financial Position* [1/2]
Financial Statement
As of December 31, 2014
As of December 31, 2013
2014 2013
Ⅰ. Current assets 4,556,878,545 4,145,632 4,266,179,916 3,881,167
1. Cash and cash equivalents 388,042,973 353,023 263,784,128 239,978
2. Short-term financial instruments 174,727,968 158,959 107,032,823 97,373
3. Trade receivables 985,268,089 896,350 1,081,282,819 983,700
4. Due from customers for contract work 2,320,968,527 2,111,507 2,131,201,647 1,938,866
5. Other receivables 58,460,199 53,184 66,743,457 60,720
6. Financial assets held for trading 20,000,000 18,195 - 7. Current portions of held-to-maturity securities 262,635 239 954,830 869
8. Derivative financial instruments 55,730,140 50,701 38,663,391 35,174
9. Advanced payments 372,294,439 338,696 379,919,128 345,632
10. Prepaid expenses 150,089,001 136,544 163,590,579 148,827
11. Prepaid construction expenses 9,253,107 8,418 11,429,807 10,398
12. Income tax refund receivables 2,703,823 2,460 9,346,557 8,503
13. Short-term loans receivable 6,194,346 5,635 1,117,784 1,017
14. Other current assets 12,883,298 11,721 11,112,966 10,110
Ⅱ. Non-current assets 1,594,987,691 1,451,044 1,662,595,957 1,512,551
1. Available-for-sale financial assets 54,714,232 49,776 73,215,153 66,608
2. Held-to-maturity financial assets 3,939,816 3,584 3,646,052 3,317
3. Derivative financial instruments 2,926,642 2,663 1,369,442 1,246
4. Investments in associates and joint venture 15,830,956 14,402 19,679,454 17,903
5. Property, plant and equipment 689,919,595 627,656 715,354,363 650,795
6. Intangible assets 59,243,116 53,897 52,465,396 47,731
7. Long-term deposits 254,270,939 231,324 423,805,236 385,558
8. Long-term prepaid expenses 6,358,939 5,785 8,261,714 7,516
9. Deferred income tax assets 393,729,083 358,196 344,181,767 313,120
10. Other non-current assets 114,054,373 103,761 20,617,380 18,757
Total assets 6,151,866,236 5,596,676 5,928,775,873 5,393,718
unitⅠIn thousands of Korean won and US dollarsunitⅠIn thousands of Korean won and US dollars
Consolidated Statements
of Financial Position* [2/2]
As of December 31, 2014
As of December 31, 2013
2014 2013
Ⅰ. Current liabilities 4,722,098,400 4,295,941 4,277,404,929 3,891,379
1. Trade payables and other payables 1,781,349,561 1,620,587 1,696,538,774 1,543,430
2. Borrowings and other financial liabilities 1,319,050,864 1,200,010 1,165,088,073 1,059,942
3. Due to customers for contract work 1,399,504,285 1,273,203 1,249,605,903 1,136,832
4. Derivative financial instruments 53,981,089 49,109 41,573,322 37,821
5. Deposits 53,231,338 48,427 53,391,356 48,573
6. Accrued expenses 47,094,200 42,844 44,279,458 40,283
7. Current income tax liabilities 59,300,264 53,949 21,763,728 19,800
8. Other current liabilities 8,586,799 7,812 5,164,315 4,698
Ⅱ. Non-current liabilities 476,423,749 433,429 745,712,430 678,414
1. Debentures 10,000 9 - 2. Long-term borrowings 219,690,000 199,864 422,070,000 383,979
3. Derivative financial instruments 6,666,664 6,065 3,600,828 3,276
4. Net defined benefit liabilities 46,037,227 41,882 72,572,759 66,023
5. Provisions for other liabilities 6,901,147 6,278 12,217,774 11,115
6. Deferred income tax liabilities 12,868,943 11,708 13,050,362 11,873
7. Other non-current liabilities 184,249,768 167,623 222,200,707 202,148
Total liabilities 5,198,522,149 4,729,370 5,023,117,359 4,569,793
Equity attributable to owners of the Parent
Ⅰ. Capital stock 200,000,000 181,951 200,000,000 181,951
1. Capital of common stock 200,000,000 181,951 200,000,000 181,951
Ⅱ. Capital surplus 56,624,298 51,514 56,624,298 51,514
Ⅲ. Retained earnings 1,013,344,270 921,893 958,397,780 871,905
Ⅳ. Other reserves (317,271,099) (288,640) (308,518,260) (280,676)
Non-controlling interest 646,618 588 (845,304) (769)
Total equity 953,344,087 867,306 905,658,514 823,925
Total liabilities and equity 6,151,866,236 5,596,676 5,928,775,873 5,393,718
* These financial statements were prepared on a consolidated basis and in accordance with the K-IFRS.
** The exchange rate of December 31, 2014 was applied.
* These financial statements were prepared on a consolidated basis and in accordance with the K-IFRS.
** The exchange rate of December 31, 2014 was applied.
Company Profile
Financial Statement
GRI Index
Assurance Statement
74 752014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
unitⅠIn thousands of Korean won and US dollars
Consolidated Statements
of Changes in Equity*
From January 1, 2014 to December 31, 2014
From January 1, 2013 to December 31, 2013
Equity holders of the Parent Company
Total Equity
Capital Stock Capital Surplus
Other Components
of Equity
Total Equity
holders of the
Parent Company
Balance at January 1, 2013 181,951 51,514 1,616,073 (313,720) 1,535,818 528 1,536,346
Comprehensive income
Loss for the year - - (643,284) - (643,284) (1,420) (644,704)
Changes in value of available-forsale financial assets
- - - (25,061) (25,061) - (25,061)
Gain on valuation of currency
- - - (1,249) (1,249) - (1,249)
Share of other comprehensive
income of associates
- - - 8,637 8,637 - 8,637
Gain on translation of foreign
- - - 25,349 25,349 123 25,472
Actuarial loss on retirement
benefit obligation
- - - 25,283 25,283 - 25,283
Transactions with equity holders of the Company
Dividends to equity holders of the
- - (100,876) - (100,876) - (100,876)
Absorption of loss on disposal of
treasury stock
- - (8) 8 - - -
Treasury stock - - - 96 96 - 96
Share options scheme - - - (19) (19) - (19)
Balance as of December 31,
181,951 51,514 871,905 (280,676) 824,694 (769) 823,925
Balance as of January 1, 2014 181,951 51,514 871,905 (280,676) 824,694 (769) 823,925
Comprehensive income
Profit for the year - - 50,020 - 50,020 1,248 51,268
Change in value of available-forsale financial assets
- - - 16,352 16,352 - 16,352
Gain on valuation of currency
- - - (8,118) (8,118) (55) (8,173)
Share of other comprehensive
income of associates
- - - (7,007) (7,007) - (7,007)
Gain on translation of foreign
- - - (22,948) (22,948) 17 (22,931)
Actuarial loss on retirement
benefit obligation
- - - 13,901 13,901 - 13,901
Transactions with equity holders of the Company
Additional acquisition of
investments in subsidiaries
- - - (178) (178) 147 (31)
Absorption of loss on disposal of
treasury stock
- - (32) 32 - - -
Treasury stock - - - 3 3 - 3
Share options scheme - - - (1) (1) - (1)
Balance as of December 31,
181,951 51,514 921,893 (288,640) 866,718 588 867,306
unitⅠIn thousands of US dollars**
Consolidated Statements
of Income*
From January 1, 2014 to December 31, 2014
From January 1, 2013 to December 31, 2013
Consolidated Statements of
Comprehensive Income*
2014 2013
Ⅰ. Profit (loss) for the year 56,353,494 51,268 (708,658,933) (644,705)
Ⅱ. Other comprehensive income (8,636,886) (7,858) 36,363,021 33,081
Comprehensive income which is not reclassified
subsequently to profit or loss:
1. Actuarial loss on retirement benefit obligation 20,158,600 18,339 36,663,031 33,354
2. Income tax of other comprehensive income (4,878,381) (4,438) (8,872,454) (8,072)
Comprehensive income which is reclassified
subsequently to profit or loss:
1. Change in value of available-for-sale financial
23,712,613 21,573 (36,341,594) (33,062)
2. Valuation of currency forwards (11,819,160) (10,753) (1,791,415) (1,630)
3. Foreign currency translation (25,205,674) (22,931) 27,999,120 25,472
4. Share of other comprehensive income of
(7,701,805) (7,007) 9,493,294 8,637
5. Income tax of other comprehensive income (2,903,079) (2,641) 9,213,039 8,382
Ⅲ. Total comprehensive income for the year 47,716,608 43,410 (672,295,912) (611,624)
1. Equity holders of the Parent Company 46,386,540 42,200 (670,870,533) (610,327)
2. Non-controlling interest 1,330,068 1,210 (1,425,379) (1,297)
From January 1, 2014 to December 31, 2014
From January 1, 2013 to December 31, 2013
2014 2013
Ⅰ. Revenue 8,911,451,188 8,107,215 9,806,322,604 8,921,327
Ⅱ. Cost of sales 8,365,490,433 7,610,526 10,353,331,187 9,418,969
Ⅲ. Gross profit (loss) 545,960,755 496,689 (547,008,583) (497,642)
1. Administrative expenses 384,127,584 349,461 481,038,112 437,626
Ⅳ. Operating profit (loss) 161,833,171 147,228 (1,028,046,695) (935,268)
1. Other income 204,126,210 185,704 363,023,588 330,262
2. Other losses 287,906,589 261,924 234,554,655 213,387
3. Share of profit of associates 2,023,727 1,841 7,926,010 7,211
4. Finance income 48,357,682 43,994 39,664,638 36,085
1) Interest income 9,185,564 8,357 9,914,262 9,020
2) Gain on foreign currency transactions 24,109,893 21,934 22,282,965 20,272
3) Gain on foreign currency translation 15,062,225 13,703 7,467,411 6,793
5. Finance costs 67,823,116 61,702 65,180,307 59,298
1) Interest expenses 30,319,460 27,583 25,555,194 23,249
2) Loss on foreign currency transactions 22,317,788 20,304 24,322,791 22,128
3) Loss on foreign currency translation 15,185,868 13,815 15,302,322 13,921
Ⅴ. Profit (loss) before income tax 60,611,085 55,141 (917,167,421) (834,395)
1. Income tax expense (benefit) 4,257,591 3,873 (208,508,488) (189,690)
Ⅵ. Profit (loss) for the year 56,353,494 51,268 (708,658,933) (644,705)
Ⅶ. Profit attributable to:
1. Owners of the parent 54,981,807 50,020 (707,097,835) (643,284)
2. Non-controlling interests 1,371,687 1,248 (1,561,098) (1,421)
Ⅷ. Earnings (loss) per share
1. Basic earnings (loss) per share 1,487 1 (19,128) (17)
2. Diluted earnings (loss) per share 1,487 1 (19,127) (17)
unitⅠIn thousands of Korean won and US dollars
* These financial statements were prepared on a consolidated basis and in accordance with the K-IFRS.
** The exchange rate of December 31, 2014 was applied.
* These financial statements were prepared on a consolidated basis and in accordance with the K-IFRS.
** The exchange rate of December 31, 2014 was applied.
* These financial statements were prepared on a consolidated basis and in accordance with the K-IFRS.
** The exchange rate of December 31, 2014 was applied.
Company Profile
Financial Statement
GRI Index
Assurance Statement
76 772014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
Consolidated Statements
of Cash Flows*
Auditor’s Report
From January 1, 2014 to December 31, 2014
From January 1, 2013 to December 31, 2013
2014 2013
Ⅰ. Cash flows from operating activities 255,768,388 232,686 (1,230,923,921) (1,119,836)
1. Cash generated from (used in) operations 375,487,683 341,601 (1,006,787,330) (915,927)
2. Interest received 6,755,933 6,146 9,613,623 8,746
3. Interest paid (43,212,288) (39,312) (28,665,219) (26,078)
4. Dividends received 1,072,771 976 1,182,736 1,076
5. Income tax paid (84,335,711) (76,725) (206,267,731) (187,653)
Ⅱ. Cash flows from investing activities (199,910,158) (181,868) 80,627,987 73,352
  1. Proceeds from disposal of property, plant and
14,510,094 13,201 8,375,197 7,619
  2. Proceeds from disposal of investment property - - 174,991,000 159,199
  3. Proceeds from disposal of intangible assets 4,518,599 4,111 -   4. Proceeds from disposal of available-for-sale
financial assets
2,432,910 2,213 20,325,326 18,491
  5. Proceeds from disposal of financial assets held
for trading
4,318,265 3,929 - -
  6. Collection of short-term loan receivables 1,074,165 977 4,585,553 4,172
  7. Decrease in non-current assets 1,621,198 1,474 28,291 27
  8. Proceeds of current portion of held-to-maturity
financial assets
954,830 869 1,014,005 922
  9. Increase in short-term loan receivables (6,200,000) (5,640) (550,077) (500)
10. Increase in non-current assets (26,430,198) (24,045) (9,651,885) (8,781)
  11. Net increase in financial assets (67,695,145) (61,586) (56,840,526) (51,711)
  12. Acquisition of available-for-sale financial
(207,500) (189) (5,000) (5)
  13. Acquisition of shares of associates (1,829,580) (1,664) (1,083,010) (985)
  14. Acquisition of held-to-maturity financial
(138,885) (126) (275,637) (251)
  15. Acquisition of property, plant, and equipment (67,889,675) (61,763) (42,985,955) (39,107)
  16. Acquisition of intangible assets (34,394,101) (31,290) (17,299,295) (15,738)
  17. Acquisition of financial assets held for trading (24,555,135) (22,339) - Ⅲ. Net cash provided by financing activities 49,788,944 45,295 989,996,003 900,651
  1. Net increase from short term borrowings 234,527,839 213,362 662,834,039 603,015
    2. Proceeds from exercise of share options 2,600 2 74,880 68
    3. Repayments of long-term borrowings (210,592,500) (191,587) -     4. Increase in long-term borrowings 25,875,000 23,540 437,970,000 398,444
    5. Acquisition of investment in subsidiaries (33,995) (31) -     6. Proceeds from debentures 10,000 9 -     7. Dividends paid - - (110,882,916) (100,876)
Ⅳ. Changes in cash and cash equivalents due to
translating currency
18,611,671 16,932 (12,325,716) (11,214)
Ⅴ. Net increase(decrease) in cash and cash
124,258,845 113,045 (172,625,647) (157,047)
Ⅵ. Beginning of the year 263,784,128 239,978 436,409,775 397,025
Ⅶ. End of the year 388,042,973 353,023 263,784,128 239,978
unitⅠIn thousands of Korean won and US dollars
* These financial statements were prepared on a consolidated basis and in accordance with the K-IFRS.
** The exchange rate of December 31, 2014 was applied.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
the International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS) and for such internal
control as management determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in
accordance with the Korean Standards on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of
Samsung Engineering Co., Ltd. and its subsidiariesas of December 31, 2014 and 2013, and their financial performance
and cash flows for the years then ended in accordance with the Korean IFRS.
Other Matters
The consolidated financial statements of the Group as of and for the year ended December 31, 2013, were audited
in accordance with the previous Korean Standards on Auditing. We did not audit the financial statements of certain
subsidiaries, whose statements reflect 17% of the consolidated total assets as of December 31, 2013, and 17% of the
consolidated total sales for the years then ended. These statements were audited by other auditors whose reports have
been furnished to us, and our opinion, insofar as it relates to the amounts included for these subsidiaries, is based solely
on the reports of other auditors.
The accompanying consolidated financial statements as of and for the years ended December 31, 2014 and 2013, have
been translated into US dollars solely for the convenience of the reader and have been translated on the basis set forth
in Note 32 to the consolidated financial statements.
Auditing standards and their application in practice vary among countries. The procedures and practices used in the
Republic of Korea to audit such financial statements may differ from those generally accepted and applied in other
To the Board of Directors and Shareholders of
Samsung Engineering Co., Ltd.
We have audited the accompanying consolidated financial statements of Samsung Engineering Co.,
Ltd. and its subsidiaries(collectively “the Group”), which comprise the consolidated statements of
financial position as of December 31, 2014 and 2013, and the consolidated statements of income,
comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.
Company Profile
Financial Statement
GRI Index
Assurance Statement
Seoul, Korea
March 2, 2015
This report is effective as of March 2, 2015, the audit report date. Certain subsequent events or circumstances, which may occur
between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated
financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that
the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.
78 792014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
GRI G4 Core
General Standard Disclosure
GRI Index
1. Strategy and Analysis
Statement from the most senior decision maker of the
organization (incl. strategy relates to sustainability,
impacts of the activities in relation to the stakeholders)
2-3 ● ● √
G4-2 Description of key impacts, risks, and opportunities 16-17, 44-45 ● ● √
2. Organizational profile
G4-3 Name of the organization - ● ● √ Samsung Engineering Co., Ltd.
G4-4 Primary brands, products, and/or services 7 ● ● √
G4-5 Location of organization’s headquarters Back cover ● ● √
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
6, 70 ● ● √
G4-7 Nature of ownership and legal form 69 ● ● √
Markets served (including geographic breakdown, sectors
served and types of customers/beneficiaries)
7, 70 ● ● √
G4-9 Scale of the reporting organization 44-45, 72-78 ● ● √
The total workforce by employment type, gender,
employment contract and region
56 ● ● √
The percentage of total employees covered by collective
bargaining agreements
- ● ○
It serves the labor union by gathering ideas and
suggestions from employees through Industrial
Relations Council
G4-12 Describe the organization’s supply chain 63 ● ● √
Significant changes during the reporting period relating to
size, structure, or ownership or its supply chain
- ● ● √
No major change affecting decisions made by
stakeholders during the reporting period
Explanation of whether and how the precautionary
approach or principle is addressed by the organization
8-9, 16-17 ● ● √
List externally developed economic, environmental and
social charters, principles, or other initiatives to which the
organization subscribes or which it endorses
71 ● ● √
List memberships of associations (such as industry
71 ● ● √
3. Identified material aspects and boundaries
Operational structure of the organization, including main
divisions, operating companies, subsidiaries, and joint
70 ● ● √
Process for defining report content and the Aspect
Boundaries and explain how the Reporting Principles has
been implemented
12-13 ● ● √
List all the material Aspects identified in the process for
defining report content
13 ● ● √
The Aspect Boundary within the organization:
Whether the Aspect is material within the organization
Inside cover ● ● √
The Aspect Boundary outside the organization:
Whether the Aspect is material outside the organization
Inside cover ● ● √
All domestic and overseas workplaces (including
project sites) and subsidiaries
Explanation the effect of any restatements of information
provided in previous reports, and the reasons for such
- ● ● √ Commented separately when necessary
Report significant changes from previous reporting
periods in the Scope and Aspect Boundaries
- ● ● √
No major change in reporting scope and
boundaries during the reporting period
4. Stakeholder engagement
The list of stakeholder groups engaged by the
10-11 ● ● √
The basis for identification and selection of stakeholders
with whom to engage
10-11 ● ● √
Approaches to stakeholder engagement, including
frequency of engagement by type and by stakeholder
10-11 ● ● √
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
10-11 ● ● √
Indicator Description Page Core Status Verification RemarksIndicator Description Page Core Status Verification Remarks
Company Profile
Financial Statement
GRI Index
Assurance Statement
5. Report profile
Reporting period for information provided (such as fiscal
or calendar year)
Inside cover ● ● √ 2014. 01 ~ 2014. 12
G4-29 Date of most recent previous report - ● ● √ 2014. 06
G4-30 Reporting cycle Inside cover ● ● √ Every year
Provide the contact point for questions regarding the
report or its contents
Back cover ● ● √
Table identifying the location of the Standard Disclosures
in the report
79-86 ● ● √
Policy and current practice with regard to seeking
external assurance for the report
84-85 ● ● √
Reported ●
Not Reported ○
Reported ●
Not Reported ○
80 812014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
GRI G4 Core
Specific Standard Disclosure
Aspect Indicator Description Page Core Status Verification Remarks
DMA Disclosure on Management Approach 44 ● ● √
EC1 Direct economic value generated and distributed 44-45 ● ● √
Financial implications and other risks and opportunities
for the organization’s activities due to climate change
51 - ● √
Coverage of the organization’s defined benefit plan
59 - ● √
EC4 Financial assistance received from government - - ● √
1 case in 2014 (KRW 10 million for Green
DMA Disclosure on Management Approach 30, 57 ● ● √
Ratios of standard entry level wage by gender compared
to local minimum wage at significant locations of
- ● ● √
The initial pay ratio to the legal minimum wage
stands at 185.9 percent (headquarters in Korea),
and we ensure that our wages at all overseas
operations are well above the legal minimum
according to local regulations.
Proportion of senior management hired from the local
community at significant locations of operation
57 - ● √
DMA Disclosure on Management Approach 34 ● ● √
Development and impact of infrastructure investments
and services supported
34-37 ● ● √
DMA Disclosure on Management Approach 24, 28 - ● √
EN1 Materials used by weight or volume 28 - ● √
Percentage of materials used that are recycled input
53 - ● √
DMA Disclosure on Management Approach 24, 51 ● ● √
EN3 Energy consumption within the organization 51 ● ● √
EN5 Energy intensity 51 - ● √
CRE1 Building energy intensity - ● ● √
0.6 GJ/m² (Energy use ratio to the total building
floor area of the head office building)
DMA Disclosure on Management Approach 24, 54 - ● √
EN8 Total water withdrawal by source 54 - ● √
Water sources significantly affected by withdrawal of
54 - ● √
No water sources were found to be significantly
Percentage and total volume of water recycled and
54 - ● √
CRE2 Building water intensity - ● ● √
0.8 ton/m² (Water use ratio to the total building
floor area of the head office building)
DMA Disclosure on Management Approach 24, 27 - ● √
Operational sites owned, leased, managed in, or
adjacent to, protected areas and areas of high
biodiversity value outside protected areas
- - ● √
There was no case according to the result of
clients’ environmental impact assessments
because most project sites were located in desert
or industrial complex. If there is any case, we
manage it in accordance with our biodiversity
protection guidelines.
Description of significant impacts of activities, products,
and services on biodiversity in protected areas and areas
of high biodiversity value outside protected areas
27 - ● √
There was no case according to the result of
clients’ environmental impact assessments
because most project sites were located in desert
or industrial complex. If there is any case, we
manage it in accordance with our biodiversity
protection guidelines.
EN13 Habitats protected or restored 27 - ● √
Indicator Description Page Core Status Verification Remarks
6. Governance
The governance structure of the organization, including
committees of the highest governance body. Identify
any committees responsible for decision-making on
economic, environmental and social impacts.
4-5 ● ● √
Processes for consultation between stakeholders and the
highest governance body on economic, environmental and
social topics
5, 10-11 - ● √
The composition of the highest governance body and its
4-5 - ● √
Whether the Chair of the highest governance body is also
an executive officer
4 - ● √
The nomination and selection processes for the highest
governance body and its committees, and the criteria
used for nominating and selecting highest governance
body members
4-5 - ● √
Processes for the highest governance body to ensure
conflicts of interest are avoided and managed
4-5 - ● √
Processes for evaluation of the highest governance body’s
performance with respect to governance of economic,
environmental and social topics
4 - ● √
Procedures of the highest governance body for overseeing
the organization’s identification and management of
performance, including relevant risks and opportunities,
and adherence or compliance with internationally agreed
standards, codes of conduct and principles
5 - ● √
The frequency of the highest governance body’s review of
economic, environmental and social impacts, risks, and
5 - ● √
Process for communicating critical concerns to the
highest governance body
5, 10-11 - ● √
The remuneration policies for the highest governance
body and senior executives
4-5 - ● √
Process for determining remuneration; Whether
remuneration consultants are involved
- ● √
Mechanisms for shareholders and employees to provide
recommendations or direction to the highest governance
5, 10-11 - ● √
7. Ethics and integrity
Organization’s values, principles, standards and norms of
behavior such as codes of conduct and codes of ethics
46 ● ● √
We comply with the Samsung Business Principle
and Samsung Engineering Code of Ethics, which
together provide the behavioral guidelines for all
Go to our ethical management website at for more details.
The internal and external mechanisms for seeking advice
on ethical and lawful behavior, and matters related to
organizational integrity, such as helplines or advice lines
- - ● √
The Engineering Compliance System website is
available to all employees.
The internal and external mechanisms for reporting
concerns about unethical or unlawful behavior, and
matters related to organizational integrity, such as
escalation through line management, whistleblowing
mechanisms or hotlines
47 - ● √
Go to our ethical management website at for more details.
Reported ●
Not Reported ○
Company Profile
Financial Statement
GRI Index
Assurance Statement
Reported ●
Not Reported ○
82 832014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
and safety
DMA Disclosure on Management Approach 20, 48 ● ● √
Type of injury and rates of injury, occupational diseases,
lost days, and absenteeism, and total number of
workrelated fatalities, by region and by gender
49 ● ● √
Percentage of the organization operating in verified
compliance with an internationally recognized health
and safety management system
- ● ● √
100%. All our operations are certified by the
OHSAS 18001 and KOSHA 18001.
DMA Disclosure on Management Approach 30, 58 ● ● √
Average hours of training per year per employee by
gender, and by employee category
58 ● ● √
Programs for skills management and lifelong learning
that support the continued employability of employees
and assist them in managing career endings
59 - ● √
and equal
DMA Disclosure on Management Approach 30, 57 ● ● √
Composition of governance bodies and breakdown of
employees per employee category according to gender,
age group, minority group membership, and other
indicators of diversity
56-57 ● ● √
Labor practices and decent work
DMA Disclosure on Management Approach 30, 56 ● ● √
LA1 Total number and rates of new employee hires and employee turnover by age group, gender, and region 59
- ● √
LA3 Return to work and retention rates after parental leave, by gender 59
● ● √
DMA Disclosure on Management Approach 34-37 ● ● √
Percentage of operations with implemented local
community engagement, impact assessments, and
development programs
- ● ● √
100%, An initial environmental impact
assessment is conducted on every project before
starting construction or upon receiving an order.
Operations with significant actual or potential negative
impacts on local communities
- - ● √
Verified through an environmental assessment at
the time an order is received, and no significant
adverse impact has been discovered from any of
our worksites to date.
Number of persons voluntarily and involuntarily
displaced and/or resettled by development, broken
down by project
- ● ● √ 0, No such cases have been identified to date.
DMA Disclosure on Management Approach 46 - ● √
Communication and training on anti-corruption policies
and procedures
46 - ● √
DMA Disclosure on Management Approach 46 - ● √
Total value of political contributions by country and
- - ● √
The Samsung Business Principle explicitly
prohibits any political activities, either by
individuals or the company.
DMA Disclosure on Management Approach 46 - ● √
Total number of legal actions for anti-competitive
behavior, anti-trust, and monopoly practices and their
- - ● √
0, No cases of legal proceedings stemming from
unfair competition or anti-trust cases.
Product Responsibility
health and
DMA Disclosure on Management Approach 20-48 - ● √
Percentage of significant product and service categories
for which health and safety impacts are assessed for
- - ● √
100%, We confirm all safety factors through
stringent risk assessment prior to every project
we carry out.
DMA Disclosure on Management Approach 10, 48 - ● √
PR5 Results of surveys measuring customer satisfaction 48 - ● √
Human Rights
DMA Disclosure on Management Approach 30, 61 - ● √
Total number of incidents of discrimination and
corrective actions taken
- - ● √
There were no legal violations concerning
discrimination issues.
DMA Disclosure on Management Approach 24, 52 ● ● √
EN15 Direct greenhouse gas (GHG) emissions (Scope 1) 52 ● ● √
Energy indirect greenhouse gas (GHG) emissions
(Scope 2)
52 - ● √
Other indirect greenhouse gas (GHG) emissions
(Scope 3)
52 - ● √
EN18 Greenhouse gas (GHG) emissions intensity 52 - ● √
EN19 Reduction of greenhouse gas (GHG) emissions 26 - ● √
CRE3 Greenhouse gas emissions intensity from buildings - ● ● √
0.07 tCO₂e/m² (GHG emissions ratio to the total
building floor area of the head office building)
Greenhouse gas emissions intensity from construction
and redevelopment activity
- ● ● √
37.9 tCO2e/KRW in billion
(Worksite GHG emissions ratio to total revenue)
and waste
DMA Disclosure on Management Approach 24, 53 ● ● √
EN23 Total weight of waste by type and disposal method 53 ● ● √
EN24 Total number and volume of significant spills - - ● √
Using toxic substance management guidelines for
each project and no significant leakage during the
reporting period
Weight of transported, imported, exported, or treated
waste deemed hazardous under the terms of the Basel
Convention2 Annex I, II, III, and VIII, and percentage
of transported waste shipped internationally
- - ● √
No case of transportation, import, export, and
treatment of wastes specified in Annex I, II, III,
IV of the Basel Convention
Identity, size, protected status, and biodiversity value of
water bodies and related habitats significantly affected
by the organization’s discharges of water and runoff
- - ● √
There was no case according to the result of
clients’ environmental impact assessments
because most project sites were located in desert
or industrial complex. If there is any case, we
will manage it in accordance with our biodiversity
protection guidelines
DMA Disclosure on Management Approach 24, 25 - ● √
Extent of impact mitigation of environmental impacts of
products and services
26 - ● √
DMA Disclosure on Management Approach 24 - ● √
Monetary value of significant fines and total number
of non-monetary sanctions for non-compliance with
environmental laws and regulations
- - ● √
No case of violation other than a fine for
environmental damage has occurred during the
reporting period
DMA Disclosure on Management Approach 24, 26 - ● √
Significant environmental impacts of transporting
products and other goods and materials for the
organization’s operations, and transporting members of
the workforce
26 - ● √
Transportation is included in the company’s
management of other indirect emissions
(Scope 3).
DMA Disclosure on Management Approach 54-55 - ● √
Total environmental protection expenditures and
investments by type
54-55 - ● √
DMA Disclosure on Management Approach 29, 62 - ● √
Significant actual and potential negative environmental
impacts in the supply chain and actions taken
29, 62 - ● √
Reported ●
Not Reported ○
Reported ●
Not Reported ○
Company Profile
Financial Statement
GRI Index
Assurance Statement
Aspect Indicator Description Page Core Status Verification RemarksAspect Indicator Description Page Core Status Verification Remarks
84 852014 Samsung Engineering Sustainability Report Overview Approach to Sustainability Sustainability Progress Appendix
Independent Assurance Report
Company Profile
Financial Statement
GRI Index
Assurance Statement
Scope and subject matter
The information for the year ended December 31, 2014 (hereinafter, collectively referred to as the “Sustainability
Information”) on which we provide limited assurance consists of:
• The Company’s conclusion on meeting the principles of Inclusivity, Materiality and Responsiveness in the AA1000
AccountAbility Principles
• The non-financial information, stated in “GRI Content Index” as subject to an external assurance (the “Sustainability
Data”) is prepared based on the reporting principles set out on GRI G4 guidelines with Core option
We read the other information included in the Report and considered whether it was consistent with the Sustainability
Information. We considered the implications for our report in the case that we became aware of any apparent
misstatements or material inconsistencies with the Sustainability Information. Our responsibilities do not extend to
any other information.
Assurance work performed
We conducted our engagement in accordance with ISAE 3000(1) and AA1000AS(2). The term ‘moderate assurance’
used in AA1000AS(2008) is designed to be consistent with ‘limited assurance’ as articulated in ISAE 3000.
Our assurance is a Type II assurance engagement as defined in the AA1000AS(2008).
(1) International Standard on Assurance Engagements 3000 – ‘Assurance Engagements other than Audits or Reviews
of Historical Financial Information’ issued by International Auditing and Assurance Standards Board
(2) AA1000 Assurance Standard(2008), issued by AccountAbility
Our work involved the following activities:
1. Interviews with the personnel responsible for internal reporting and data collection to discuss their approaches to
stakeholder inclusivity, materiality and responsiveness
2. Visits to the Company’s headquarter in Seoul and the Project Site (Samsung Display SMD Y(A3) Line Project) to
understand the systems and processes in place for managing and reporting the Sustainability Data
3. Review of samples of internal documents relevant to output from the risk assessment process, sustainability-related
policies and standards, the sustainability materiality assessment matrix and other documents from
stakeholder-engaged activities
4. Evaluating the design and implementation of the key processes and controls for managing and reporting the
Sustainability Data
5. Limited testing, through inquiry and analytical review procedures, of the preparation and collation of the
Sustainability Data
6. Interviews with the management of the Company
Respective responsibilities of the management of the Company and Samil PricewaterhouseCoopers
The management of the Company is responsible for establishing reporting principles that meet the principles of
Inclusivity, Materiality and Responsiveness in the AA1000APS, measuring performance based on the reporting
principles, and reporting this performance in the Report.
Our responsibility is to provide a conclusion based on our assurance procedures in accordance with ISAE 3000 and
This report, including the conclusion, has been prepared for the management of the Company as a body, to assist the
management in reporting on the Company’s sustainability performance and activities. We do not accept or assume
responsibility to anyone other than the management of the Company as a body and the Company for our work or this
report save where terms are expressly agreed and with our prior consent in writing.
Inherent limitations
Non-financial performance information is subject to more inherent limitations than financial information, given the
characteristics of the subject matter and the methods used for determining such information. Qualitative interpretations
of relevance, materiality and the accuracy of data are subject to individual assumptions and judgments.
A limited assurance engagement is less in scope than a reasonable assurance engagement under ISAE 3000.
Consequently, the nature, timing and extent of procedures for gathering sufficient, appropriate evidence are deliberately
limited relative to a reasonable assurance engagement.
In particular:
• We did not attend any stakeholder-engaged activities. Therefore our conclusion is based on our discussions with
the management and the staff of the Company, and our review of sampled documents provided to us by the Company.
• The scope of our work was restricted to 2014 performance only, as set out in the scope and subject matter section
above. Information related to the year ended December 31, 2013 and earlier periods have not been subject to
assurance by us.
Based on the results of the assurance work performed, our conclusion is as follows.
• On the AA1000APS principles
- Inclusivity
· The Company has collected concerns and opinion through stakeholder communication channels that include those
of Customers, Partners, Stakeholders, Communities and Employees.
· Nothing has come to our attention to suggest that material stakeholder groups were excluded from these channels.
- Materiality
· The Company has identified most relevant and significant sustainability issues through process for identifying
material issues.
· Nothing has come to our attention to suggest that material issues were omitted in this process.
- Responsiveness
· The Company has included in the Report its response to the material sustainability issues which are defined through
process for identifying material issues.
· Nothing has come to our attention to suggest that there were material deficiencies in the issue management
• Nothing has come to our attention that causes us to believe that the Sustainability Data for the year ended December
31, 2014 is not fairly stated, in all material respects, in accordance with the Company’s internal reporting principles
set out on GRI G4 guideline with core option.
As a result of our work, we have provided the following recommendations to the management.
• It is necessary to improve key performance indicators and targets how the economic, social and environmental
performances are aligned with business model and value creating activity of the Company.
• In order to ensure the consistency of disclosed data, it is necessary to improve the data collection and management
process of internal control system.
• It is recommended to disclose its level of achieving goals and future plans regarding key performance indicators by
sustainability aspect so that the Company can be recognized by its stakeholders for its authenticity in the execution
process of systematic sustainability management.
To the management of Samsung Engineering Co., Ltd.
We have been engaged by Samsung Engineering Co., Ltd. (the “Company”) to perform an
independent assurance engagement in regard to the following aspects of Sustainability
Report 2014 (the “Report”).
June 23, 2015
Samil PricewaterhouseCoopers
Seoul, Korea
86 2014 Samsung Engineering Sustainability Report
DNV GL Business Assurance Korea Ltd. (“DNV GL”) was commissioned by Samsung Engineering Co., Ltd. (“Samsung
Engineering”) to verify the Samsung Engineering’s Greenhouse Gas Inventory Report for the calendar year 2014 (“the
report”) based upon a limited level of assurance. Samsung Engineering is responsible for the preparation of the GHG
emissions data on the basis set out within the WRI/WBCSD GHG protocol: 2004 and the principles set out in ISO
14064-1:2006. Our responsibility in performing this work is to the management of Samsung Engineering only and in
accordance with terms of reference agreed with them. DNV GL expressly disclaims any liability or responsibility for
any decisions, whether investment or otherwise, based upon this assurance statement.
The emissions data covered by our examination comprise Direct emissions (Scope 1 emissions), Energy indirect
emissions (Scope 2 emissions) and Other indirect emissions(Scope 3 emissions) from the Samsung Engineering
- Organizational boundary for reporting: 3 buildings(including HQ), 31 domestic construction sites,
25 overseas construction sites, 2 operation & maintenance sites
The verification has been conducted by DNV GL from 26th March through 7th April 2015 and performed in accordance
with the verification principles and tasks outlined in ISO 14064-3:2006. We planned and performed our work so as
to obtain all the information and explanations deemed necessary to provide us with sufficient evidence to provide a
reasonable verification opinion with 5% materiality level, concerning the completeness of the emission inventory
as well as the reported emission figures in ton CO2 equivalent. As part of the verification process:
- We have reviewed and verified the Samsung Engineering’s Greenhouse gas Management System
- We have reviewed and verified the Samsung Engineering’s GHG inventory Report
- We have reviewed and verified the process to generate, aggregate and report the emissions data
Based on the above verification core elements, it is DNV GL opinion that the data and the information reported in
the GHG assertion are free of errors, omissions and misrepresentations providing a fair and balanced quantification,
in compliance to the above reported verification criteria. The GHG Emissions of Samsung Engineering for the year 2014
were confirmed as below;
Scope of Assurance
Verification Approach
Direct emissions
(Scope 1)
Indirect emissions
(Scope 2)
Other Indirect emissions
(Scope 3)
Total emissions
Year 2014 219,627 25,789 146,534 391,950
Greenhouse Gas Emissions of Samsung Engineering from Yr 2014
* In order to report the GHG emissions as an integer, the rounded number on the statement might be different from
the number on the system with ±1 tCO₂.
* Total emissions = Scope 1 + Scope 2 + Scope 3
No.: AS_ PRJC-520220-2015-CCS-KOR
Verification Statement GHG Inventory
If you want to download this report in PDF format, visit our website at
If you have any suggestions or questions about this report, please contact us using the information above.
Address Samsung GEC,
26, Sangil-ro 6-gil, Gangdong-gu,
Seoul, Korea, 134-728
TEL +82-2-2053-3000
FAX +82-2-2053-3339
Task Force Members for 2014 Samsung Engineering Sustainability Report
CSR Office
Sustainable Growth HyeYeon
Ra MinHee
Project Execution JiWon
Corporate Governance MinKook
Ethics & Compliance MiJin
Yu DongBeom
Safety, Environment &
Employees & Workplace HyunKook
Supply Chain SooNa
An JungYeon
Jo Local Community DongWook
Samsung Engineering was enrolled into the DJSI Asia
Pacific at the Construction & Engineering sector. Dow
Jones Sustainability Index (DJSI) is a global sustainability
management benchmark.
Samsung Engineering was enrolled into the CDLI
(Climate Disclosure Leadership Index) in 2014 thanks
to being listed on top 10% in information disclosure
level in Korea.
unit–ton CO₂ equivalent.
This Assurance Statement is valid as of the date of the issuance (7th April 2015). Please note that this Assurance statement would
be revised if any material discrepancy which may impact on the Greenhouse Gas Emissions of Samsung Engineering is subsequently brought to our attention. In the event of ambiguity or contradiction in this statement between English version and Korean
version, Korean shall be given precedent.
7th April 2015
Lead Verifier
Tae Ho Kim
Country Manager
DNV GL Business Assurance Korea Ltd
In-Kyoon Ahn
ub lis
he d by S
am su ng E
ng in ee ri ng C
o. , L
td .
es ig ne d by V
w w w .v ad es ig n. co .k r Samsung GEC, 26, Sangil-ro 6-gil, Gangdong-gu, Seoul, Korea
TEL +82-2-2053-3000
FAX +82-2-2053-3339
This report was printed with soy-based ink on environment-friendly paper.

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