Sustainability

Climate Action

Climate Action

We pursue
net zero carbon emissions
for a sustainable future

We pursue net zero carbon emissions for a sustainable future

Climate change is a crucial issue that affects the entire world. We seek to engage in addressing the global issue by reducing direct greenhouse gas emissions,
expanding the use of renewable energy and developing highly energy-efficient products.

Taking action against climate change

To cope with climate change, Samsung Electronics conducts various GHG emission reduction projects not only at our business sites for direct greenhouse gas emissions but throughout the entire value chain, including energy and goods used for operating business, logistics and our suppliers.

Our action plan

Reducing of the GHG emissions at worksites

  • - Operate fluorinated gas emission reduction facilities for the semiconductor manufacturing process
  • - Manage energy saving projects and improve energy efficiency

Expanding energy management at worksites

  • - Setting up energy management systems at all worksites and maintaining the certification

Reducing GHG in product use phase

  • - Developing and launching highly energy-efficient products

Managing other GHG emissions

  • - Managing GHG emissions in product logistics, business trips, etc.

Supporting suppliers

  • - Monitoring suppliers' GHG emissions
  • - Promoting and supporting suppliers to join the CDP supply chain

Our Evaluation and Response Process

  • 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

Risks and Opportunity Analysis

Transition Risks
and Opportunities
Climate Change Risks and Opportunities Financial Impacts of Climate Change Risks Financial Impacts of Climate Change Opportunities
1. GHG Emissions Trading Short-
term Increased costs due to the rise in GHG emissions permit prices and reinforced pollutant discharge regulations * Refer to the Annual Business Report Purchase of permits minimized through GHG emissions reduction activities Easing of price sensitivity by attaining permits through projects in cooperation with outside partners
2. Adoption of High-efficiency Technologies Short-
term Increased investment in high-efficiency equipment, GHG emissions reduction equipment, and water resource recycling equipment Increased R&D investment to develop advanced emissions reduction technologies Reduction of GHG emissions and energy costs of business sites Creation of business opportunities such as energy management systems
3. Changes in Customer Behavior Mid-
term Increased costs for attaining high-efficiency and eco-conscious product certifications Reduced sales of products with low energy efficiency ratings Increased R&D costs for high-efficiency and eco-conscious products Release of high-efficiency and eco-conscious products Leading to increased sales and brand awareness
4. Expansion of Renewable Energy Use Mid-
term Increased production costs due to the rise in short-term energy costs Reduced B2B sales due to customer demand for renewable energy use Energy cost reduction by sourcing renewable energy and participation in renewable power generation projects
Physical Risks
and Opportunities
Climate Change Risks and Opportunities Financial Impacts of Climate Change Risks Financial Impacts of Climate Change Opportunities
5. Natural Disasters such as Typhoons and Floods Short-
term Increased investment costs for the installation of environmental/safety/emergency facilities for natural disaster prevention Increased costs for business restoration and lost business opportunities in the event of a natural disaster Decreased insurance costs through investment in natural disaster response facilities New business opportunities such as the launch of the National Disaster and Safety Network
6. Global Temperature Rise and Yellow Dust Long-
term Increased business site operating costs due to cooling and heating device installation, etc. Increased investment costs for air pollution prevention equipment installation Increased sales from the expansion of highly efficient air conditioner, air purifier, and dryer businesses

Reducing Greenhouse Gas Emissions and Expansion of Renewable Energy Use

Samsung Electronics is focusing on the reduction of GHG emissions and energy used in manufacturing.
Each business site forecasts the annual GHG emissions and identifies GHG reduction projects that are optimized for the manufacturing process, and also establishes and executes reduction plans.
Since the declaration to expand renewable energy use in 2018, we took into account the renewable energy policies and infrastructure in different global regions to devise specific renewable energy transition plans and implement them sequentially.

Reducing Greenhouse Gas emissions During Use of Products

The Eco-Council comprise environmental specialists and divisional working level consultative groups at Samsung Electronics. They monitor energy-conserving technologies and environmental regulatory trends, and devise strategies to improve the energy efficiency of new product to reduce GHG emissions during the use of the product.

Energy-efficient Samsung products. Samsung air conditioner and washing machine are shown side by side. Samsung Galaxy Tab with S Pen on the side is shown on a table. There are three remote controls—one facing front, one facing the side and one facing the back. There are also three semiconductor chips—HBM2E Flashbolt, GDDR6 and UFS3.1, placed side by side. Energy-efficient Samsung products. Samsung air conditioner and washing machine are shown side by side. Samsung Galaxy Tab with S Pen on the side is shown on a table. There are three remote controls—one facing front, one facing the side and one facing the back. There are also three semiconductor chips—HBM2E Flashbolt, GDDR6 and UFS3.1, placed side by side.

Supporting our suppliers to use renewable energy

To help our major business partners reduce greenhouse gas and use more renewable energy, Samsung Electronics became a CDP Supply Chain member since 2019, requesting suppliers with transaction volume of higher than 80% to set GHG reduction targets. We provide training on how to answer CDP Climate Change questionnaires for key suppliers and continuously monitor their GHG emissions and goals. In addition, we share information on higher renewable energy adoption and contemplate means of collaboration through the Renewable Energy Council.
Suppliers that set GHG reduction objectives are offered incentives. We are committed to actively collaborating with and providing support for them so that more suppliers can join the efforts of reducing greenhouse gas going forward.