Climate Action
Climate Action
Acting now for
a sustainable,
low-carbon future
Acting now for a sustainable, low-carbon future
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
* 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
Operate fluorinated gases emission reduction facilities for the semiconductor manufacturing process
Manage energy saving projects and improve energy efficiency
Setting up energy management systems at all worksites and maintaining the certification
Developing and launching highly energy-efficient products
Managing GHG emissions in product logistics, business trips, etc.
suppliers
Monitoring suppliers' GHG emissions
Promoting and supporting suppliers to join the CDP supply chain
Our Evaluation and Response Process
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01
Identify climate change phenomena and issues
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02
Analyze impacts, risks, and opportunity factors
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03
Establish response strategies
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04
Implement and monitor projects
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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
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.
Scope 1
refers to the direct GHG emissions
Scope 2
indirect emissions from electricity, steam, 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
2020 reduction of GHG emissions
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.
At Samsung Electronics, we are constantly expanding the use of renewable energy
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.
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
