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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 harnessing new and renewable energy.
2020 KPI: Climate Change
Intensity-based GHG Emissions
for Global Worksites
Cumulative Greenhouse Gas Reduction
in Product Use Phase
We are focused on responding to the climate change crisis
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 2017, Samsung introduced products with highly energy efficient technologies such as Quick Drive for washing machines and highly efficient fans in external units of air conditioners, improving energy efficiency by an average of 36% compared to 2008. These energy efficiency improvements reduced the consumer's energy consumption and energy costs, as well as greenhouse gas emissions.
We are expanding our emissions management 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.
· Monthly analysis of global worksite emissions based on GHG management system
· Installed GHG decomposition equipment in semiconductor processing, with a decomposition rate of 90% and higher
· Installed high-efficiency equipment and converted indoor lighting to LED at global worksites
· Achieved 39 tasks to improve energy efficiency in logistics related areas
· Identified potential GHG reductions of 4,920 tons CO2 e at major suppliers
· Reduced overseas business travel by 12% using alternatives such as video conferencing, etc.
· Improved product energy efficiency by 49% in 2016 compared to 2008
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 2018, Samsung introduced products with highly energy efficient technologies such as Highly efficient motors for washer and compressor for refrigerator improving energy efficiency by an average of 39% compared to 2008. These energy efficiency improvements reduced the consumer’s energy consumption and energy costs, as well as greenhouse gas emissions.
Increase in production volume requires an increase in the number of manufacturing locations and a corresponding increase in energy consumption. To reduce energy used as we grow our manufacturing capacity, Samsung has established 24 Energy Saving Standards for efficient production. In the case of new locations, energy saving technologies were developed considering the characteristics of the facility and utilized from early stages of the process design to improve energy efficiency. As a result, despite production increase, we saved 34.3 billion KRW in power and utilities costs of overseas locations in 2018.
At Samsung Electronics, we are constantly expanding the use of renewable energy.
As a leading global IT company, Samsung Electronics has been expanding the use of renewable energy as a response to climate change and officially announced major targets in June, 2018.
- We will transition to 100% renewable energy in all our worksites in the United States, Europe, and China by 2020.
Samsung Electronics has set a short-term goal of expanding the use of renewable energy starting in the United States, China, and Europe, where there is sufficient infrastructure for using renewable energy, and has been working hard to meet the goal.
First, we have shifted to 100% renewable energy for all electricity used in the regional headquarters and the semiconductor worksite in the United States in 2019, while also preemptively achieving 100% renewable energy transition in the Slovak worksite in Europe. Moving forward, we plan to transition to regionally appropriate renewable energy gradually in other worksites in the United States and Europe. Moreover, we have installed a 5.5MW photovoltaic power generating facility on the rooftops of the buildings of our TV and semiconductor worksites in China. Just as in Korea, all of the generated power is being used for the operation of the production and ancillary facilities.
- We will install photovoltaic and geothermal power generation facilities in parking lots and on rooftops of all our domestic worksites such as Suwon, Hwaseong, and Pyeongtaek by 2020.
To stay in line with the Korean government’s target of expanding the use of renewable energy to 20% by 2030 and to 30 to 35% by 2040, the Suwon worksite of Samsung Electronics has installed photovoltaic power generation facilities with a total capacity of 1.9MW in the parking tower and on the rooftops of five research facilities as a domestic pilot project. The power generated by the photovoltaic facilities are being directly used for the relevant research and parking facilities. By monitoring the results of the pilot photovoltaic facility installation, we plan to continuously introduce photovoltaic and geothermal power generating facilities also in logistics centers and other large worksites in Hwaseong and Pyeongtaek by 2020
- By joining the CDP Supply Chain in 2019, we plan to recommend our 100 most important business partners to establish a target for renewable energy use.
To support the expanded use of renewable energy by our business partners, Samsung Electronics plans to join the CDP Supply Chain to make our 100 most important business partners based on purchase amount establish a target for renewable energy use and expand the use of renewable energy while playing a role in creating a healthier environment.
We are carrying out projects to respond to global climate change.
Samsung Electronics is carrying out projects not only to reduce global carbon emissions but also to contribute to creating a better environment.
Around 80% of the population in Mombasa, Kenya, use charcoal as fuel because of insufficient power supply. Harmful substances are produced when charcoal is burned, and these substances have caused the premature death rate to increase among Kenyan residents. Furthermore, the excess use of charcoal is exacerbating air pollution and accelerating deforestation.
To solve this issue, Samsung Electronics stepped forward. As part of its measures against climate change, we signed an agreement with Green Development and found ways to help Mombasa residents lead their lives in a healthier environment. Considering the fact that bio ethanol can be obtained at a low cost as there are relatively more sugar refineries in Kenya, Samsung Electronics invested one million euro to distribute cook stoves fueled by bio ethanol to Mombasa residents. As bio ethanol has a heat efficiency six-fold that of charcoal, this resulted in a dual effect of reducing the emission of harmful substances while ensuring its safe use in households. By distributing cook stoves, Samsung Electronics was able to contribute to a healthier and safer lifestyle of Mombasa residents as well as reduce greenhouse gas emissions.
Together with Green Development, Samsung Electronics will continue its efforts to vitalize the regional economy and improve the environment by delivering education on the procurement, production, and sale of cook stoves and bio ethanol to the residents.