GHG Management for Scope 1 and 2

Samsung Electronics' total emissions of greenhouse gases with regional breakdown are shown in Figure 1. The majority of GHGs come from our semiconductor and LCD panel businesses in Korea.

The GHG emissions in 2011 were increased to 6% from 2010. It was mainly because new semiconductor production lines started operation in Korea and the US in 2011. The GHG emission data for Korea between 2009 and 2011 was adjusted by third party verification in June 2011 to comply with Korea national GHG target management policy

Figure 2 demonstrates the decrease in GHG emissions normalized by sales as a result of the company’s GHG reduction initiatives. We have taken various measures including the installation of facilities for reducing GHG emissions from industrial processes, improvement in energy efficiency of production facilities and , installation of high efficient facilities, we will continue to implement various GHG reduction measures.

Sources of GHGs

The GHG sources and their ratios in 2011 are shown in Table 1. Scope 1 emissions include GHG emissions from direct combustions (LNG, LPG and diesel), F-gas process emissions and emissions from vehicle fuel, etc. Scope 2 emissions are derived from purchased electricity and purchased steam.

The GHG emission management scopes are production plants and buildings under direct operational control by Samsung Electronics. The company has developed the Global EHS system (G-EHS) for integrated management of ESH database, and monthly GHG emission data are reported and managed through the G-EHS system from 8 Korean plants and buildings, 30 overseas production plants, and 76 non-production subsidiaries (sales, logistics, and R&D centers).

Table 1. GHG Emissions Sources

Category	Sources	2011
Scope 1	Stationary Combustion (LNG, Diesel, etc)	5.2%
	Mobile Combustion (Gasoline, Diesel, etc)	0.2%
	Process Emission	30.2%
	Fugitive Emission	0.1%
Scope 2	Electricity (purchased)	64.0%
	Steam (purchased)	0.2%