The Dupont-Samsung story- Inspiration to source sustainable suppliers and Innovate.!!

Selecting sustainable suppliers based on Environmental, Social, and Governance (ESG) criteria has become increasingly important for businesses and organizations across various industries. ESG considerations go beyond traditional business metrics and financial performance, taking into account the broader impact of a supplier's operations on the environment, society, and governance practices. Here are several reasons highlighting the importance of selecting sustainable suppliers based on ESG:

1. Risk Management:Environmental Risks: Suppliers that do not adhere to environmentally sustainable practices may pose risks related to resource scarcity, climate change, and regulatory noncompliance.
2. Social Risks: Suppliers with poor labor practices, human rights violations, or inadequate health and safety standards can expose businesses to reputational and operational risks.
3. Reputation and Brand Image:Consumers and stakeholders are increasingly conscious of sustainability and corporate responsibility. Partnering with suppliers that align with ESG values enhances a company's reputation and brand image, potentially attracting environmentally and socially conscious customers.
4. Regulatory Compliance:Many countries and regions have implemented or are considering regulations related to environmental protection, social responsibility, and corporate governance. Selecting suppliers that comply with these regulations helps ensure legal and regulatory compliance throughout the supply chain.
5. Operational Efficiency:Sustainable suppliers often demonstrate better operational efficiency by implementing resource-efficient practices, reducing waste, and adopting innovative technologies. This can lead to cost savings and improved long-term operational resilience.
6. Long-Term Stability and Resilience:Suppliers that prioritize sustainability are more likely to adapt to changing market conditions, emerging regulations, and evolving consumer preferences. This resilience can contribute to the long-term stability of the supply chain.
7. Access to Markets and Customers:Some markets and customers may require suppliers to meet specific ESG criteria to be considered as business partners. Choosing sustainable suppliers broadens business opportunities and facilitates entry into markets with strict sustainability requirements.
8. Supply Chain Transparency:Sustainable suppliers often provide greater transparency into their supply chain processes. This transparency helps businesses understand potential risks, identify opportunities for improvement, and communicate effectively with stakeholders.
9. Employee Engagement and Talent Attraction:Companies that prioritize ESG considerations are often seen as more attractive employers. Employees are increasingly seeking socially responsible and environmentally conscious workplaces, and partnering with sustainable suppliers contributes to a positive corporate culture.
10. Investor Relations:Institutional investors, shareholders, and other stakeholders are increasingly considering ESG factors when making investment decisions. Companies with sustainable supply chain practices may attract more favorable attention from investors committed to responsible investment strategies.

In summary, selecting sustainable suppliers based on ESG criteria is crucial for mitigating risks, enhancing reputation, ensuring compliance, and fostering long-term sustainability and resilience in the global business environment. It aligns with the growing recognition that businesses must balance economic success with environmental and social responsibility.

The DUPONT-SAMSUNG STORY-

(NOTE/source of information and data- The information and data are taken from the Dupont website for your understanding) We have tagged necessary pointers for readers to visit the Dupont website and read and explore Dupont capabilities which is remarkable!!!

三星电子 named Dupont as its best ESG partner supplier of semiconductor materials in the world. This is a great news to celebrate and take inspiration from!!

杜邦 has significant contributed to establishing a sustainable supply chain by collaborating to develop more sustainable semiconductor materials for Samsung. DuPont has made substantial contributions to the development of material technology for semiconductor fabrication. As the significance of ESG in the materials and technologies sector continues to rise, there is a need to collaborate between companies like Dupont and Samsung to drive sustainable growth.

DuPont innovates alongside customers to enable next-generation technology needs and offers high-performance semiconductor fabrication materials and technical support. Increasingly, DuPont’s customers are looking for solutions to support their sustainability goals, including reducing energy consumption and emissions, improving material and process circularity, and enhancing responsible procurement practices. New material development includes formulations that reduce substances of concern and improve process safety. In addition, offerings can be optimized for longer lifetime or reduction of the amount of material used, creating operational efficiencies for fabricators or reducing their waste streams.

About DuPont Electronics & Industrial?DuPont Electronics & Industrial is a global supplier of new technologies and performance materials serving the semiconductor, circuit board, display, digital and flexographic printing, healthcare, aerospace, industrial, and transportation industries. From advanced technology centers worldwide, teams of talented research scientists and application experts work closely with customers, providing solutions, products and technical service to enable next-generation technologies. https://electronics.dupont.com

DuPont (NYSE: DD) is a global innovation leader with technology-based materials and solutions that help transform industries and everyday life. Our employees apply diverse science and expertise to help customers advance their best ideas and deliver essential innovations in key markets including electronics, transportation, construction, water, healthcare and worker safety.

The Gist of the DUPONT-SAMSUNG case study-

Large organizations looking towards decarbonization should explore suppliers who care for climate and sustainable. Sustainable supplier selection needs some sort of discipline and unique way of identifying based on ESG goals of the organization. The suppliers have to be assessed from Environment, social and governance perspectives, ethical practices, certifications, compliance, transparency, and innovation. and also ensure they are positively impacting the climate and society at large. In this case Samsung is very clear on what they want, the kind of innovation they need to innovate the product that has a positive impact on the climate, high energy efficient, and so on so forth.

Do you know?

Semiconductors are made from a variety of raw materials, including silicon, germanium, gallium arsenide, and indium phosphide. These materials are processed and purified to create a crystalline structure, which forms the foundation for building semiconductor devices such as transistors, diodes, and integrated circuits.