Energy management.

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 2012. The global energy consumption increased approximately 8% and 15% for electricity and liquefied natural gas (LNG) respectively compared to 2011 because of setting up and starting new production lines.

Table 1. Energy Consumption from operations in 2012
Category Type 2010 2011 2012
Global 10,729 11,894 12,925 8,697
LNG (Mil. Nm³) 170 197 172
Korea Electricity (Gwh) 13,435 15,047 10,926
LNG (Mil. Nm³) 197 237 217

In 2012, the company saved 211,930 MWh of electricity and 12,100 KNm3 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 127,992 tons of CO2 from the energy saving in 2012. The below table describes major energy saving activities and results.

Table 2. Energy Reduction Programs and Performance in 2012
Category Descriptions Energy Reductions
Energy efficient equipments
  • Installing high energy-efficient transformers, motors, heat pumps and boilers, etc.
19,801 -
Optimizing manufacturing facilities
  • Introducing non purge dryer
  • Optimizing air-conditioner operation, cooling water temperature and existing boilers, etc
21,113 2,173
Waste-heat recovery
  • Installing waste-heat recovery system,
  • Recovering cooling water waste-heat,
  • Recovering vapor steam, etc
3,406 6,269
  • Steam leak prevention,
  • Energy saving in buildings and offices.
  • Reducing refrigeration load, etc
168,610 3,658
Sum 211,930 12,100

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

Samsung Electronics had joined the US EPA Green Power Partnership for its semiconductor production plant in Austin, Texas and its parts warehouses in Rancho Dominguez, California. In 2012, the company expanded the partnership covering its entire operations in the United States including the buildings and production facilities throughout the country.

The company replaced 3.3% (28.5GWh) of its power consumption in the United States with renewable energy through the operation of photovoltaic power generation facilities and the purchase of green electricity and renewable energy certificates.

In 2012, the total amount of renewable energy used of the company increased to 28.7GWh, 12% more than the 25.6 GWh in 2011.