Samsung C&T says it's dropping coalSamsung C&T is entirely withdrawing from coal-related business, Samsung Group's construction and trading unit announced Tuesday.
Samsung C&T concluded during a board meeting Tuesday that it will withdraw all investments, construction and trading that are linked to coal. New business ventures will be halted, while the existing businesses will be gradually wound down following the end of the contract or construction.
The decision is part of the company’s effort to brand itself as more environmentally-friendly in response to climate change.
But Samsung C&T said it will go forward with construction of a thermoelectric power plant in Gangneung, Gangwon, and a coal-fired electrical power plant in Vietnam — although it stressed the plans would include stricter environmental controls than are required.
“Excluding these two projects, [Samsung C&T] won’t invest or construct coal-related projects in any ways,” the company said in a statement, which added that it will expand its eco-friendly portfolio, including renewable energies like solar and wind power.
The decision follows the growing importance of environmental, social and governance (ESG) when a company is evaluated.
On the same day, Samsung C&T announced it had reported 7.85 trillion won ($6.96 billion) in revenue, up 1.5 percent on year, in the third quarter. Its net profit jumped 22.1 percent to 323.41 billion won, while its operating profit inched down 0.4 percent during the same period to 215.5 billion won, on the improved performance of Samsung Biologics.
Samsung C&T’s shares jumped on Monday, following Samsung Electronics Chairman Lee Kun-hee’s death on the previous day. The company’s shares closed at 115,500 won on Tuesday, down 2.12 percent from the previous day.
Samsung Biologics is 43.44 percent owned by Samsung C&T, which is 17.33 percent owned by Lee Jae-yong, the late chairman's son.
BY JIN MIN-JI [firstname.lastname@example.org]