Climate Action

Climate Action

Acting now for
a sustainable,
low-carbon future

Acting now for a sustainable, low-carbon future

Two men and two women wearing casual clothes are harvesting something from a tree and smiling. Two men and two women wearing casual clothes are harvesting something from a tree and smiling.

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 harnessing new and renewable energy.

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 graph showing use of renewable energy in the United States, Europe, and China;  Renewable energy conversion rate is expected to be 100% in 2020. A graph showing use of renewable energy in the United States, Europe, and China;  Renewable energy conversion rate is expected to be 100% in 2020.

* 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 design 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, research and development, and other sales activities.

Our action plan

Reducing of the GHG emissions at worksites

ㆍOperate fluorinated gases emission reduction facilities for the semiconductor manufacturing process

ㆍManage energy saving projects and improve energy efficiency

Expanding energy management at worksites

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

Reducing GHG in product use phase

ㆍDeveloping and launching highly energy-efficient products

Managing other GHG emissions

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

Supporting suppliers

ㆍMonitoring suppliers' GHG emissions

ㆍPromoting and supporting suppliers to join the CDP supply chain

  • 01

    Identify climate
    change phenomena
    and issues

  • 02

    Analyze impacts,
    risks, and
    opportunity factors

    Risk and opportunity analysis criteria


    Stakeholder’s interest / Industry trend / Business impact / Internal capability / Probability of occurrence

  • 03

    Establish response
    strategies

  • 04

    Implement and
    monitor projects

  • 05

    Analyze results and
    check with the target

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 categorised 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

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 use advanced technology to improve energy efficiency

With its advanced product technologies, Samsung Electronics is evolving as we seek to enable a more environmentally responsible and convenient way of life. To achieve this goal, Samsung operates companywide eco-consulting group meetings twice a year. Through these meetings, Samsung shares information about environmental requirements and the development of innovative technologies among environmental experts of business divisions, and researches energy-saving technologies to develop products with high energy efficiency. In 2019, we reduced annual energy consumption by 42% compared to 2008 by adopting highly-efficient compressors for refrigerators and highly-efficient heat exchangers for air conditioners.

On the left, a Samsung air conditioner with an energy efficiency gauge symbol above it. On the right, a modern office space with a desk, chair and plants. On the left, a Samsung air conditioner with an energy efficiency gauge symbol above it. On the right, a modern office space with a desk, chair and plants.

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 large Samsung worksite with multiple, neatly arranged white buildings against a blue sky with small clouds. A large Samsung worksite with multiple, neatly arranged white buildings against a blue sky with small clouds.

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

A panoramic view of a Samsung worksite against a blue sky, showing the top of the buildings only. A panoramic view of a Samsung worksite against a blue sky, showing the top of the buildings only.

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 group of children of African ethnicity are crowded around a man who is demonstrating a scientific procedure with a gas burner. A group of children of African ethnicity are crowded around a man who is demonstrating a scientific procedure with a gas burner.