GHG management

GHG Management for Scope 1 and 2

Samsung Electronics' total emissions of greenhouse gases are shown in Figure 1. The majority of GHGs come from our semiconductor and LCD panel businesses in Korea. Figure 2 demonstrates the decrease in emissions normalized by sales as a result of the company’s GHG reduction initiatives.

Figure 1. Total Greenhouse Gas Emissions

Greenhouse Gas Emission

Figure 2. Greenhouse Gas Emissions normalized by sales (Korea)

GHG Emissions Relative to Sales (Domestic)

※ Korean government has changed the electricity emission factor from 0.424 tCO2/MWh to 0.466 tCO2/MWh in March, 2011. According to this change, the GHG emission data (2007~2010) are updated in August 2011 with verification by the 3rd party. This resulted in partial change in the GHG emission data of the 2011 sustainability report.

The Scope 1 & 2 emissions were verified in accordance with "Greenhouse Gas and Energy Target Management Scheme Guideline" run by the Korean government and "Samsung Electronics Guidelines for Greenhouse gas inventory" which is based on the international ISO 14064-1 standard.

GHG management for employee business travel

Samsung has measured GHG emissions from its employee business travels. The total amount of GHG emissions from business travel in 2010 was given limited assurance with other Samsung Sustainability Report data by Samil Pricewaterhouse Coopers and is based on ISAE 3000 and AA1000AS.

Year 2009 2010
GHG emissions
(unit: 1,000 tCO2-e)
61 121

GHG management for supply chain

Supplier GHG management

Samsung measures GHG emissions from its 1st tier suppliers (Scope 1 & 2) on a yearly basis from 2009. In 2010, the GHG emissions for the year of 2009 were measured from 662 suppliers located in Korea, which represents 98% of total suppliers in Korea and 40% of total purchase worldwide.

The total amount of GHG emissions from its suppliers was 812,000 tons of CO2-e. It was given limited assurance with other Samsung Sustainability Report data by Samil Pricewaterhouse Coopers based on ISAE 3000 and AA1000AS.

The GHG measurement of suppliers globally for 2010 will be completed at the end of 2011.

Year 2009 Note
GHG emissions
(unit: 1,000 tCO2-e)
812 * 662 suppliers in Korea (represent ①98% of Korean suppliers and ②40% of global purchasing)

Logistics GHG management

Samsung has measured GHG emissions from its global air/marine logistics and rail/road transport in Korea since 2009. Based on the gathered information, the company is trying to find solutions for reducing the GHG by developing a project with the Korean Energy Management Corporation (KEMCO).

Year 2009 2010 Note
GHG emissions
(unit: 1,000 tCO2-e)
5,602 7,433 * Includes ①Global air-freight and shipping and ②Rail and road transport in Korea.

Product carbon management

A carbon labelling initiative is run by the Korean government (Ministry of Environment) to promote environmentally friendly production and consumption.. Samsung Electronics supports this and has acquired the carbon label for 22 models in 8 product lines: TV, monitor, computer, printer, refrigerator, washer, air-conditioner, and semiconductor.

The company measured GHG emissions from pre-manufacturing (including parts manufacturing), manufacturing (including logistics), product use, and disposal stages according to the Guideline from the Ministry of Environment for each model. The results were verified by the Korea Environment Industry & Technology Institute (KEITI), and the details can be found at the website of KEITI (www.edp.or.kr/index_eng.asp).

Third-party verification

The company acquired third-party verification for GHG emissions of all production plants in Korea in 2007 and 2008 by KEMCO (Korea Energy Management Corporation). In 2008, the external verification of GHG emissions was expanded to include all overseas production plants.
The operational boundaries of GHG management are separated into Scope 1 (direct emissions) and Scope 2 (indirect emissions), as defined by the
ISO 14064-1 and WBCSD/WRI GHG Protocols.

In July 2011, the company completed the external verification of global GHG emissions occurred from all production plants globally in 2010.
Korean Foundation for Quality (KFQ) conducted the verification and provided an independent assurance report on the greenhouse gas statement for 2010.

GHG Reduction Activities

  • GHG Treatment Facilities for Semiconductor and LCD Production
    The Semiconductor and LCD panel production plants are major sources of GHG emissions in the company. To reduce GHG emissions, the company is investing in installation of GHG treatment facilities and more energy-efficient equipment.
  • Clean Development Mechanism (CDM)
    The LCD Division is pursuing a CDM project under which carbon credits (CERs : Certified Emission Reductions) can be issued by treating SF6 gases generated during the production of LCD panels. The project was validated by DOE in 2009, and registered to UNFCCC in July 15th 2010.
  • Participation in Pilot Emissions Trading Scheme
    The Gumi Plant took part in a pilot GHG emissions trading scheme implemented by the Ministry of Environment and the Environmental Management Corp. Under this scheme, limits on GHG emissions are set for each workplace or building, and any of GHG emission credits can be traded.
  • Reduction Activities for Logistics and Employees Business Travels
    The company is continuously working to improve logistics efficiency by optimizing transport routes, enhancing the load factor, and practicing reverse logistics. The company operates commuter buses to reduce fuel consumption from the use of personal cars. Also, bicycle storage facilities are provided to encourage employees to use bicycles.