Climate Action

Climate Action

Acting now for
a sustainable,
low-carbon future

Acting now for a sustainable, low-carbon future

A key visual image of Climate Change page A key visual image of Climate Change page

Climate change, resulting at least in part from a surge in the use of fossil fuels and the global warming it has caused, is a serious problem that affects the entire world. Samsung Electronics has acknowledged the reality of the crisis and is therefore continuing efforts on multiple fronts. These include developing highly energy-efficient products, installing equipment with minimum greenhouse gas (GHG) emissions, and utilizing renewable energy in our operations.

Climate change KPI

Accumulated GHG reduction for use phase

301 million tons

* Accumulated From 2009 to 2020

Accumulate GHG emissions reduction
for
product use phase

A bar graph showing Use of Renewable Energy in the United States, Europe, and China. In 2018, approximately 38% of total energy consumption came from renewable sources. In 2019, the use of renewable energy increased to approximately 92%. In 2020, 100% renewable energy was used. A bar graph showing Use of Renewable Energy in the United States, Europe, and China. In 2018, approximately 38% of total energy consumption came from renewable sources. In 2019, the use of renewable energy increased to approximately 92%. In 2020, 100% renewable energy was used.

* Unit : Renewable energy use (%)

Use of renewable energy in the United States, Europe, and China

Taking action against climate change

To efficiently respond to climate change, we analyze related risks and opportunity factors, and designed effective counter-strategies. This includes consideration of various scenarios to identify the impact of climate change on our business over time. Climate change risks and opportunities affect almost every aspect of our business from our products and services to manufacturing processes, supply chain and research and development.

Our action plan

icon of fluorine gas emission reduction facility in semiconductor manufacturing process icon of fluorine gas emission reduction facility in semiconductor manufacturing process
Reducing of the GHG emissions at worksites

Operate fluorinated gases emission reduction facilities for the semiconductor manufacturing process

Manage energy saving projects and improve energy efficiency

Energy Management System Installation and Certification icon Energy Management System Installation and Certification icon
Expanding energy management at worksites

Setting up energy management systems at all worksites and maintaining the certification

GHG reduction icon GHG reduction icon
Reducing GHG in product use phase

Developing and launching highly energy-efficient products

Product logistics and business trip icon Product logistics and business trip icon
Managing other GHG emissions

Managing GHG emissions in product logistics, business trips, etc.

cdp supply chain icon cdp supply chain icon
Supporting
suppliers

Monitoring suppliers' GHG emissions

Promoting and supporting suppliers to join the CDP supply chain

Our Evaluation and Response Process

  • 01

    Identify climate change phenomena and issues

  • 02

    Analyze impacts, risks, and opportunity factors

  • 03

    Establish response strategies

  • 04

    Implement and monitor projects

  • 05

    Analyze results and check with the target

Risk and opportunity analysis criteria : Stakeholder’s interest / Industry trend / Business impact / Internal capability / Probability of occurrence

Climate change risk and opportunity factors

Regulations issues
Risks Our approach Opportunities
Carbon tax Develop refrigerants with a low global warming potential Driving a worksite CDM1) Program Securing GHG emissions trading Establish an emission reduction system and an emission trading handling system
Use of renewable energy Engage renewable energy purchase contracts, registering for green pricing Expanding renewable energy use, reducing GHG
Product energy efficiency regulations Develop energy efficient Receiving sustainable certificates and energy labels
Physical issues
Risks Our approach Opportunities
Cyclone and flood Expand investments in facilities for natural disaster damage prevention Contribution to local communities for climate change adoption and support with technologies against climate
Yellow dust Establish damage prevention and restoration scenarios and invest in HVAC Create new business opportunities for home appliances, such as air purifiers and
Others
Risks Our approach Opportunities
Corporate reputation Reinforce internal sustainability activities and strengthen external Enhancing the brand image
Changing consumer behavior Survey consumer trends and expand sustainable product Proactive response to consumer demand on eco-conscious

1) Clean Development Mechanism

Reducing our greenhouse gas emissions at all levels

Problem solving requires accurate information. To precisely measure and manage our greenhouse gas emissions, we have categorized them into three scopes which are defined by the GHG Protocol based on their proximity to business and operation. Locating the exact point of emission at each level is the basis for managing greenhouse gases in the optimal way. Scope 1 refers to greenhouse gases emitted when products are manufactured at Samsung Electronics’ worksites, while Scope 2 indirect emissions are associated with worksites’ energy purchases to generate electricity and steam. Scope 3 covers non-worksite emissions, such as those from logistics activities, business trips, our supply chain, and the use of our products. We use this analysis to systematically manage all emissions, whether direct or indirect, from our worksites, use of products and our suppliers.

This infographic is about the GHG emissions in the respective scopes. Scope 1 refers to the direct GHG emissions, Scope 2 indirect emissions from electricity, steam, etc, and Scope 3 all other indirect emissions from logistics, suppliers, use of products, etc.  This infographic is about the GHG emissions in the respective scopes. Scope 1 refers to the direct GHG emissions, Scope 2 indirect emissions from electricity, steam, etc, and Scope 3 all other indirect emissions from logistics, suppliers, use of products, etc.

Scope 1

refers to the direct GHG emissions

Scope 2

indirect emissions from electricity, steam, etc

This infographic is about the GHG emissions in the respective scopes. Scope 1 refers to the direct GHG emissions, Scope 2 indirect emissions from electricity, steam, etc, and Scope 3 all other indirect emissions from logistics, suppliers, use of products, etc.

Scope 3

all other indirect emissions from logistics, suppliers, use of products, etc

We are constantly striving to reduce greenhouse gas emissions

There are actions that can be taken at the company level to cope with climate change. One such measure is to objectively and transparently gauge current performance and identify potential internal improvements. To this end, Samsung Electronics has been verifying its actual greenhouse gas emissions annually through a third party. In addition, based on the diagnoses of in-house examiners, we have sought ways to reduce our emissions and have continuously taken steps to improve. One of our primary focus areas to reduce greenhouse gas has been to constantly strive to lower fluorinated gas emissions, which has large impact on global warming. This has led to significant progress, particularly in our semiconductor manufacturing operations.

Accumulated fluorinated gases status of Samsung locations in Korea

A graph of the cumulative status of fluorine gas at Samsung business sites in Korea. It is expected to reach 11.62 million tonnes in 2020. A graph of the cumulative status of fluorine gas at Samsung business sites in Korea. It is expected to reach 11.62 million tonnes in 2020.

2020 reduction of GHG emissions

GHG reduction performance graph in 2020. Achieved 39% increase in renewable energy use. GHG reduction performance graph in 2020. Achieved 39% increase in renewable energy use.

IoT application example on global worksite

Samsung Electronics pursues energy efficiency not only through our products but also through our facilities used at all worksites. We introduced monitoring system and active control environment based on IoT in the HVAC (heating, ventilation, and air conditioning) systems of Yeongdeok Training Center in Korea and the worksite in Ho Chi Minh City, Vietnam. By utilizing the IoT technology, we also developed energy-saving algorithm that factors in outdoor climate conditions, HVAC load, and device capacity, enabling optimum operational control of the infrastructure equipment. As a result, Samsung Electronics in Ho Chi Minh City was able to reduce energy consumption by 12.4%. The technology is scheduled to be applied at our worksites in Korea, the United States, and Southeast Asia.

A photo of Samsung Electronics worksite A photo of Samsung Electronics worksite

At Samsung Electronics, we are constantly expanding the use of renewable energy

A photo of Samsung Electronics worksite A photo of Samsung Electronics worksite

Enhance Energy efficiency with advanced technology

Samsung Electronics’ advanced technology continues to evolve, striving for an environmentally conscious and convenient life. For this, Samsung Electronics biannually holds the company-wide Eco-Council, sharing the trends on environmental regulations, progress in environmentally conscious technology development with environmental specialists from each business sector, developing highly energy-efficient products through research on energy-conserving technologies. In 2020, we were able to save on average of 32% of annual energy consumption compared to that of 2008 through enhancing the efficiency of TV backlights and using highly energy-efficient compressors in refrigerators. For the past 3 years, we have also been continuously increasing greenhouse gas reductions.

image of energy efficiency product image of energy efficiency product

Supporting our suppliers to use renewable energy

To support suppliers’ use of renewable energy, Samsung Electronics joined the CDP supply chain in 2019. Since then, we have been contributing to healthier environment by advising top 200 suppliers (based on amount of purchase) to set targets on using renewable energy. We carried out training on completing the CDP climate change questionnaire and investigated greenhouse gas emissions and use of renewable energy for suppliers that generate 80% of their sales from Samsung Electronics. Many suppliers submitted a response to the questionnaire, and suppliers that have voluntarily established greenhouse gas reduction targets were given incentives. Samsung Electronics will continue to provide support and work closely with suppliers so that they may take interest in low-carbon economy and join efforts.

We are carrying out projects to respond to global climate change

A photo of Samsung Electronics carrying out projects to respond to global climate change. A photo of Samsung Electronics carrying out projects to respond to global climate change.