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 Performance 2020 KPI

Intensity-based GHG Emissions
for Global Worksites

This infographic shows the greenhouse gas/KRW unit intensity goals of Samsung’s owned and operated global operations. Base greenhouse gas emissions in 2017 were 3.28 tons of CO2e/million KRW, and our goal for 2020 is 1.55 tons of CO2e/million KRW.

Cumulative Greenhouse Gas Reduction
in Product Use Phase

This infographic shows the accumulated greenhouse gas reductions in the product usage stage. The accumulated greenhouse gas reductions in the product usage stage from 2008 to 2017 is 217 million tons CO2. Accumulated reduction goal for 2020, beginning in 2008, is 250 million tons CO2.

We are focused on responding to the climate change crisis

The Greenhouse Gas Council is held four times a year to set the agenda for combating climate change and to review performance. Participants share the latest information on climate change, set detailed action plans, and review their achievements for the quarter. Samsung Electronics has established a systematic management process, as shown below, in order to minimise greenhouse gas emissions throughout the entire lifecycle of our products, including production, distribution and use.

Strategies and Action Plans to Cope with Climate Change

An icon for the reduction of the GHG emissions at worksites

· Operating F-Gas reduction equipment in semiconductor manufacturing process
· Managing energy reduction projects, improving energy efficiency

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· Setting up energy management systems at all worksites and maintaining certifications (since 2013)
· Managing each worksite’s energy costs and indicators

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· Developing and launching highly energy-efficient products

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· Managing GHG emissions in product logistics, business trips, etc. (since 2009)

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· Monitoring suppliers’ GHG emissions (since 2012)

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.

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(Direct GHG emissions) & Scope 2(Indirect emissions from electricity, steam, etc.)

· 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

A panoramic photo of the Samsung Electronics’ worksite.
Scope 3(All other indirect emissions from logistics, suppliers, use of products, etc.)

∙ Execute greenhouse gas reduction projects to improve energy efficiency in logistics.
∙ Discover greenhouse gas reduction projects through on-site support for major vendors.
∙ Increase the use of video conferencing and reduce the number of international business trips.

A photo of logistics truck (Safety Truck of Samsung Electronics)
GHG Emissions Reduction
in the Product Use Phase
GHG Emissions Reduction in the Product Use Phase
Draw estimates
for the last two years.

* Unit: Million tCO2
* Scope of data collection: Eight major product categories(mobile phones, notebooks, TVs, monitors, refrigerators, washers, air conditioners, and printers)
* Accumulated since 2009

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 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.

This infographic shows the energy efficiency performance in the product usage stage. In 2017, average product energy consumption was reduced by 36% and cumulative greenhouse gas emissions were reduced by 217 million tons compared to 2008.
This infographic shows the energy usage performance and goals of Samsung’s global locations. Samsung saved 30.46 billion KRW in electricity costs and 28.13 billion KRW in utilities costs in 2017. The savings consist of 22% electricity, 12% HVAC, 18% in operations and management, 10% in compressed air, 12% in nitrogen generators, 9% in water, 8% in steam, 1% in gas and 8% in other miscellaneous categories.

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 58.6 billion KRW in power and utilities costs of overseas locations in 2017.

This infographic shows the energy usage performance and goals of Samsung’s global locations. Samsung saved 30.46 billion KRW in electricity costs and 28.13 billion KRW in utilities costs in 2017. The savings consist of 22% electricity, 12% HVAC, 18% in operations and management, 10% in compressed air, 12% in nitrogen generators, 9% in water, 8% in steam, 1% in gas and 8% in other miscellaneous categories.

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

Samsung’s global locations will continue to expand the use of renewable energy to reduce our operational greenhouse gas emissions and to preserve the environment. To help achieve this goal, we are installing solar panels in vacant spaces such as roofs of parking lots and buildings throughout locations in Korea. In regions with sufficient renewable energy infrastructures such as the United States, Europe and China, our goal to source 100% renewable energy for our factories, office buildings, and operational facilities.

Renewable energy use at global worksites

This infographic represents the use of renewable energy in global sites. 92.06GWh in 2015,and 181.77GWh in 2016, 228.50GWh in 2017.

New and renewable energy use

This infographic shows the distribution of renewable energy use. Wind power 63% / Water power 10% / Others 20% / Solar 4% / Geothermal 2% *As of 2017

We are conducting research and projects to adjust to climate change

To find ways as a company to respond and overcome changes in the climate, since 2015 we have been conducting a joint study titled CSR Activities to Adjust to Climate Change. Together with the Graduate School of Environmental Studies at Seoul National University, our researchers have taken on assignments under three themes: access to drinking water, energy-efficient housing and climate change education.

As a part of the drinking water project, we installed semi-permanent drinking water facilities at 10 locations in Vietnam that have struggled to secure a stable supply of potable water. As a result, local residents no longer worry about access to water, a substance vital to life even during the most serious drought. Meanwhile, our Housing Renovation Projects for the underprivileged have been upgraded to what we call the Housing Energy Efficiency Improvement Construction Project. This project provides households with a living environment that saves energy and insulates them from hot summers and cold winters at a low cost. A study of 61 households in 2017 showed that the average amount of energy used per household throughout the year was reduced by half, resulting in lower energy costs for the vulnerable members of society. These efforts didn’t end in just economic gains. It also led to reducing associated greenhouse gas emissions related to power generation by 43 tons CO2e per year.

Lastly, we developed specialized educational content about climate change on the Samsung Smart School platform for teachers and students to use. Using such content, we nurtured 300 expert lecturers, and offered demonstration classes for 2,200 children at 11 elementary schools. With such efforts, we helping our future generation understand how serious climate change is and how important it is that we work to resolve it.

A photo of drinking water fountain at a pre-school in Thai Nguyen, Vietnam
Our Eco-Conscious products make for a healthy planet
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