Sustainability report_2010
43Pages

Eco-friendly paper was used for this report. Samsung Heavy Industries Sustainable Value Creation 2010 Leading the Future of World’s Shipbuilding Industry, Samsung Heavy Industries Sustainable Value Creation 2010 Samsung Heavy Industries Sustainability Report www.shi.samsung.co.kr 33th Fl., Samsung Life Insurance Seocho Tower, 1321-15 Seocho-Dong, Seocho-Gu, Seoul, 137-955, Korea | Phone: 02-3458-7000

Contents Overview About this Report 03 | About this Report 04 | Message from the CEO Summary of the Sustainability Report 06 | 2010 Highlights This report was prepared for the first time by Samsung Heavy Industries to reflect demands of stakeholders and to participate 08 | OIntroduction to Samsung Heavy Industries in the trend of global sustainable management. Through this report, SHI publicized all environmental and social activities, as 10 | SHI Product Portfolio well as relationships with and influence of stakeholders implemented in the year of 2010. SHI plans to publish the...

SAMSUNG HEAVY INDUSTRIES Message from the CEO 2010 Sustainability Report To our esteemed SHI stakeholder, involves massive transportation of assembly of materials. In this context, Based on its Business Principles stating We aim to be a world leading SHI has tried to reduce the volume of waste by installing incinerators in the company, devoting our human resources and technology to create superior shipyard. In 2009, SHI received an award from the Minister of Environment products and services, thereby contributing to a better global society Samsung recognizing its contribution on waste...

2010 Sustainability Report SAMSUNG HEAVY INDUSTRIES The company attained USD 9.7 billion in the annual total amount of orders received owing to its strategy of focusing on high-efficiency green ship market. • Contracted 75 ships in total including drill ships, container ships, and wind turbine installation vessels – equivalent to 31-month operation Announcing Green Management / Compliance Management To meet the corporate social responsibilities, the company announced the Green Management in January for the first time in the industry and Compliance Management in November. Digital Business...

2010 Sustainability Report SAMSUNG HEAVY INDUSTRIES Introduction to Samsung Heavy Industries INTRODUCTION ECONOMIC ENVIRONMENTAL RESPONSIBILITY SOCIAL APPENDIX Introduction to Samsung Heavy Industries Global Management of SHI Samsung Heavy Industries Co., Ltd. (SHI) boasts outstanding performance in the fields of shipbuilding/offshore, construction, digital system, and wind power. Especially SHI stands out as the top-ranked shipbuilder of high-tech/high value-added ships, as it leads change and innovation in the global market. SHIs construction business has been well received for its...

SAMSUNG HEAVY INDUSTRIES INTRODUCTION 2010 Sustainability Report SHI Product Portfolio ECONOMIC ENVIRONMENTAL RESPONSIBILITY SOCIAL APPENDIX Shipbuilding-Offshore Business Construction Business Based on its technological competitive edge, SHI is focusing on developing and building high-tech, high value-added ships and eco-friendly ships such as ice braking tanker, LNG carrier, super container ship and passenger ship. It also has complete competency in designing and building offshore plants such as drill ship, FPSO, offshore platform, TLP, and floating offshore structure. SHI is pursuing...

2010 Sustainability Report Participation of Stakeholders SAMSUNG HEAVY INDUSTRIES INTRODUCTION ECONOMIC ENVIRONMENTAL RESPONSIBILITY SOCIAL APPENDIX Overview of stakeholder research Communication with stakeholders SHI defines a stakeholder as an organization or an individual who can affect or be affected by managerial activities of SHI. It classifies stakeholders into employee, customer (shipowner), partner, community, shareholder, financial institutions, press, NGO and government. Since it is possible to draw diverse opinions and ideas on opportunities and risk factors related to...

SAMSUNG HEAVY INDUSTRIES INTRODUCTION ECONOMIC ENVIRONMENTAL RESPONSIBILITY SOCIAL APPENDIX Step 1 Check issues Internal issues • Reflect business strategy • Interview with employees • Questionnaire Step 2 Set priority External issues • Media analysis • Questionnaire on stakeholders • Benchmarking Organizational influence • Strategic importance • Urgency Interest of stakeholders • Media analysis • Questionnaire on stakeholders • Benchmarking Draw major issues Issue pool Groundwork to be Leading Global Company Foundation for SHI toward Leading Global Corporation SHI lays groundwork for...

INTRODUCTION Vision Shareholder Composition To carry out its corporate mission, i.e., it will contribute to enhance customer satisfaction and quality of life by providing safe, eco-friendly, and convenient ships and facilities with superior economic performance, SHI establishes five core values. Based on challenging spirits, many talents are pursuing change and innovation to win the competition to be the best. Also, they are striving for the co-prosperity of everyone around the company while keeping laws and ethics as members of the society. As of end 2010, the number of total outstanding...

Risk Management at SHI SAMSUNG HEAVY INDUSTRIES INTRODUCTION 2010 Sustainability Report ECONOMIC ENVIRONMENTAL RESPONSIBILITY SOCIAL APPENDIX | Operation of BoD | Year No. of meetings Major Agenda Attendance 2008 2009 11 10 Approval of financial statements and transactions 95.5% Management of Financial Risks | Decision-making Process in SHI | Approval of financial statements and transactions 96.0% 2010 11 Approval of financial statements and transactions Board of Directors (Decision-making / supervision) 100.0% General Meeting of Shareholders Appointment/Resolution Appointment/Resolution...

2010 Sustainability Report Transparent Management SAMSUNG HEAVY INDUSTRIES INTRODUCTION ECONOMIC ENVIRONMENTAL RESPONSIBILITY SOCIAL APPENDIX | Education Programs related to Ethics | Item 2009 2010 No. of programs 16 12 No. of trainees 1,420 1,484 Total hours 27 20.5 Item 2008 2009 2010 No. of persons completed security programs 98 110 114 Completion rate (%) 100 100 100 Ethics Management Organization to Implement Compliance Program SHI aims to be the leading global company through fair and transparent corporate management under the philosophy of We devote our human resources and technology...