As part of our systematic effort to address climate change at the supply chain level, Samsung Electronics has selected suppliers that account for the top 90% of transaction value in DX Division and those with a transaction value of KRW 500 million or more in DS Division as targets for management. We are working to manage greenhouse gas (GHG) emissions of these suppliers and support their reduction efforts.
To help suppliers calculate their greenhouse gas (GHG) emissions more easily and accurately, Samsung Electronics provides calculation tools and supports relevant training programs. Starting in 2025, we plan to expand the number of suppliers required to report emissions and enhance our overall emissions management framework through a newly developed GHG management system.
Additionally, we provide guidelines for setting mid- to long-term GHG reduction targets to encourage suppliers to take an interest in climate change, voluntarily develop their own reduction goals, and implement improvement initiatives.
In 2022, we invited 182 suppliers in South Korea to participate in a training session on GHG management guidelines, which provided an overview of net zero and emission calculation methods. In 2023, we expanded this training to 219 overseas suppliers.
DX Division incorporates GHG disclosure and reduction performance into its comprehensive supplier evaluation system. Additional points are awarded as incentives to suppliers who have demonstrated excellence in their reduction of emissions or use of renewable energy.
In DS Division, a variety of evaluation criteria, such as the establishment of GHG reduction targets and the use of renewable energy, are used to encourage participation and cooperation from suppliers in sustainable GHG management.
Suppliers often produce significant GHG emissions due to electricity use but face challenges in accessing renewable energy. To support their transition, Samsung Electronics offers training, shares practical information, and connects suppliers with renewable energy providers. In 2024, we partnered with the Korea Chamber of Commerce and Industry to offer in-person training on understanding and applying renewable energy policies and practices. A total of 57 suppliers in South Korea participated in this initial session.
In addition, we selected top-tier renewable energy providers in South Korea to host briefings on solar power projects for suppliers operating plants in South Korea and Vietnam. Suppliers interested in participating are currently considering entering into the contract.
We plan to expand these renewable energy programs to key global manufacturing sites based on supplier engagement levels and emissions reduction performance.
In 2023, we conducted training for Korean suppliers on GHG reduction method, which helped to establish reduction strategies and energy improvement measures for each key facility. We plan to continue running this training course on a regular basis in the future. Through this initiative, we will continue to strengthen our supplier support activities as well as introduce a dedicated organization to provide additional consultations on GHG issues.
In 2024, we offered online training programs covering the entire process, from calculating GHG emissions to setting reduction targets and pursuing net-zero goals. Starting in 2025, DS Division will expand the scope of these programs beyond first-tier suppliers to include second- and third-tier suppliers, with the goal of improving GHG emissions transparency across the entire supply chain.
Samsung Electronics is building partnerships with the government and related institutions to support GHG reduction efforts among our suppliers.
Following the signing of a memorandum of understanding with the Ministry of Environment in 2023 to promote sustainable management, we have actively utilized government support programs alongside our own initiatives to help suppliers reduce emissions and invest in GHG reduction facilities.
By 2024, a total of 71 suppliers had participated in sustainability consulting and energy diagnosis projects offered by various government ministries, including the Ministry of Environment. These programs helped suppliers establish GHG management systems and identify areas for improvement. In addition, six suppliers had joined the Smart Eco-Factory program, which supports investment in GHG reduction measures and ICT infrastructure, by the year 2024.
We also encourage supplier participation in these programs based on each company’s size, capabilities, and current progress on emissions reduction, helping them discover new reduction opportunities and enhance their sustainability practices.