Tech giants reorganizes governance committee
South Korea’s Samsung Electronics announced on July 29 that it had reorganized its Governance Committee into Sustainability Committee and expanded its duties and oversight.
The Seoul-based company said that the newly established Sustainability Committee would continue the roles of the Governance Committee, including practicing corporate social responsibilities and enhancing shareholder value.
“The Sustainability Committee will deal with a broader range of ESG issues, including climate change, circular economy, labor and human rights, diversity and inclusion, supply chain, and ethical management, thus setting the direction for and monitoring the progress of the company’s sustainable management,” a Samsung official said.
“The Committee consists entirely of independent directors to ensure its independence. It will receive reports on the main issues discussed at the Sustainability Council, a company-wide consultative body.”
Short for Environmental, Social, and corporate Governance, ESG is the three crucial factors in measuring the sustainability of a corporation or business.
During the past few years, the initiative has emerged as an essential managerial value locally and globally. In particular, South Kora corporations have focused on the programs.
Samsung has been strengthening its corporate-wide system for the management of sustainability issues by introducing a Sustainability Management Office under each business unit and elevating the Corporate Sustainability Center to report directly to the CEO.
With the latest addition of the Sustainability Committee, the company has now connected sustainable management to span from business units to the Board of Directors.
“We are committed to further strengthening the independence and diversity of its Board of Directors, which will spearhead efforts to enhance sustainability going forward,” the Samsung official said.