Energy Management

Samsung Electronics has adopted various measures such as high-efficiency facilities, energy management systems and training programs for employees to reduce energy consumption across all manufacturing sites.

The company established a working group for energy management which meets every two months to share best practice for energy saving and management throughout all business divisions. The company is also implementing internal energy management program called ‘Pre-certification of Energy Efficiency’ for all energy using devices, equipment, and raw materials in order to promote energy efficiency improvement in operations

To manage energy use more systematically and efficiently, the company has now established the international standard for energy management system (ISO 50001) in production sites. It can be certified from the third party institutions by setting energy reduction targets and implementing energy reduction programs. As of June 2012, the company gained ISO 50001 for all production sites in Korea, and it plans to achieve third party certification for all global production sites by 2013.

Energy Reduction Activities

Table 1 below shows the annual energy consumption in 2011. The global energy consumption increased approximately 12% and 17% for electricity and liquefied natural gas (LNG) respectively compared to 2010 because of setting up and starting new production lines.

Table 1. Energy Consumption from operations in 2011

Category	Type	2009	2010	2011
Global	Electricity (Gwh)	10,729	11,894	12,925
	LNG (Mil. Nm³)	148	170	197
Korea	Electricity (Gwh)	12,180	13,435	15,047
	LNG (Mil. Nm³)	174	197	237

In 2011, the company saved 665,324 MWh of electricity and 25,916,536 Nm3 of LNG from the existing facilities in Korea through various energy efficiency activities. It includes introducing high efficient equipment, optimizing manufacturing facilities and reusing waste-heat, etc.
It is estimated to reduce approximately 370,000 tons of CO₂ from the energy saving in 2011. The below table describes major energy saving activities and results.

Table 2. Energy Reduction Programs and Performance in 2011

Category	Descriptions	Energy Reductions
		Electricity (MWh)	LNG (Nm3)
Energy efficient equipments	Installing high energy-efficient transformers, motors, heat pumps and boilers, etc.	59,043	169,639
Optimizing manufacturing facilities	Introducing non purge dryer Optimizing air-conditioner operation, cooling water temperature and existing boilers, etc	388,008	2,819,055
Waste-heat recovery	Installing waste-heat recovery system, Recovering cooling water waste-heat, Recovering vapor steam, etc	3,823	9,909,131
Others	Steam leak prevention, Energy saving in buildings and offices. Reducing refrigeration load, etc	214,450	13,018,711
Sum		665,324	25,916,536

Clean Energy

Samsung Electronics believes that low-carbon clean energy sources are critical for securing energy supplies and ensuring sustainable economic growth.

Samsung Electronics supports development of clean energy policies by participating in several initiatives. For example, the company contributes to reducing global GHG emissions and increasing clean energy sources by participating in WBCSD (World Business Council for Sustainable Development), KBCSD (Korea Business Council for Sustainable Development), EICC (Electronic Industry for Citizenship Coalition), and the Green Growth Committee run by Korean government.

Since 2010, the company has been participating in the Green Growth Task Force of Business-20 Summit (B20) to provide recommendations for Heads of State and government leaders. In June 2012, the B20 Summit held at the Los Cabos, Mexico, and the Green Growth Task Force made recommendations and calls for action in five areas, listed below:

• Promoting free trade in green goods and services
• Achieving robust pricing on carbon
• Ending inefficient fossil fuel subsidies
• Accelerating low-carbon innovation
• Increasing public funding to leverage private investments

The company is working to expand its application of renewable energy system in operations. In the US, the Rancho Dominguez facility operated roof-top photovoltaic system and generated about 815,000 kWh of electricity in 2011. The Samsung Austin Semiconductor (SAS) plant purchased 24.7GWh of green electricity in 2011.

The company developed several pilot projects to apply renewable technologies and expand renewable energy systems in manufacturing sites in 2011. It plans to set up and operate renewable systems with total 2.4 MW capacities by adopting small-hydro power generation system and roof-top solar generation system gradually by 2017.

In 2011, the amount of renewable energy sourced was 0.2% out of the total global electricity purchased.