Samsung Electronics' Comprehensive Environmental Strategy for Mitigating Climate Change by 2050

1. Summary

• The report 'Samsung Electronics' Comprehensive Environmental Strategy for Mitigating Climate Change by 2050' examines Samsung Electronics' ambitious environmental objectives and initiatives to combat climate change. It details the company's goals to achieve net zero carbon emissions by 2050, extensive use of renewable energy by joining the RE100 Initiative, enhancing energy efficiency across all operations, promoting a Circular Economy, and driving green innovation. Key findings include significant investments in sustainable technologies, progress in transitioning to renewable energy, and achievements in reducing carbon emissions and increasing the use of recycled materials in products. Through a holistic approach, Samsung is making strides in sustainability through strategic partnerships, global collaborations, and innovative research and development projects aimed at mitigating climate impacts and improving resource circularity.

2. Introduction to Samsung’s Environmental Strategy

• 2-1. Overview of Samsung’s commitment to addressing climate change by 2050

• Samsung Electronics announced a comprehensive environmental strategy to tackle climate change and achieve net zero carbon emissions by the year 2050. The announcement was made public through various verified documents, including a publication by Sangho Jo, President & CEO of Samsung Electronics, Southeast Asia and Oceania. The strategy focuses on addressing the climate crisis by implementing a holistic approach to reduce carbon emissions, enhance resource efficiency, and expand the use of renewable energy sources. Samsung has joined the RE100, a global corporate renewable energy initiative, committing to run all operations outside Korea as well as the Device eXperience (DX) Division on renewable energy within five years. The company has outlined significant goals for matching electricity use with renewable energy by specified timelines in various regions, achieving this milestone as early as 2022 in some areas.

• 2-2. Key goals and objectives

• Samsung's environmental strategy comprises several ambitious goals and objectives, as highlighted in the verified data sources. Key goals include: 1. Achieving enterprise-wide net zero carbon emissions by 2050. 2. Operating the Device eXperience (DX) Division with net zero carbon emissions by 2030. 3. Increasing the use of renewable energy across all global operations, with international markets achieving this within five years outside of Korea. 4. Reducing power consumption in consumer electronics products through the development of new ultra-low power technologies, targeting a 30% reduction in energy consumption by 2030 compared to products from 2019. 5. Enhancing resource circularity across the product lifecycle, including sourcing raw materials, recycling, and disposal, and achieving key milestones such as incorporating recycled plastics in their products and expanding the electronic waste collection system to 180 countries by 2030. 6. Investing over KRW 7 trillion in environmental initiatives by 2030, excluding costs related to the expansion of renewable energy use.

3. Carbon Neutrality Goals

• 3-1. Net zero carbon emissions by 2050 across all operations

• Samsung Electronics has set an ambitious target to achieve net zero carbon emissions across all its operations by 2050. This goal encompasses all aspects of the company's activities, including manufacturing, supply chains, and product lifecycle management. As of 2022, Samsung is 31% complete in its transition towards this target, demonstrating significant progress in its sustainability efforts.

• 3-2. Specific targets for the DX division by 2030

• Samsung's Device eXperience (DX) division, which includes its mobile phone and home appliance businesses, aims to achieve net zero carbon emissions by 2030. This division has made substantial progress, with the completion of its transition to renewable energy in business sites across Brazil, India, and Vietnam. Additionally, the DX division has operated on 100% renewable energy in the US, Europe, and China since 2020.

• 3-3. Efforts to achieve carbon neutrality in manufacturing, transport, and product use

• To meet its carbon neutrality goals, Samsung Electronics has implemented a comprehensive environmental strategy. This includes using innovative technologies to mitigate carbon emissions and maximize resource circularity across the product lifecycle. Significant achievements include a 10 million-tonne CO2 reduction in scope 1 and scope 2 emissions in 2022, and an increase in recycled resin usage in plastic parts to 99,000 tonnes, up 200% from the previous year. Samsung also increased its reuse of water to 117 million tonnes in 2022, a 29% increase from 2021, and joined the RE100 initiative to transition to 100% renewable electricity.

4. Renewable Energy Initiatives

• 4-1. Joining the RE100 initiative

• Samsung Electronics has joined the RE100 initiative, a global corporate renewable energy initiative aimed at achieving 100% renewable energy. This move underscores Samsung's commitment to addressing climate change through increased use of renewable energy. According to the reference documents, Samsung plans to transition to renewable energy for all its operations outside of Korea within five years. Specifically, RE100 cites Korea as a challenging area for renewable energy sourcing but notes Samsung's proactive efforts to address these challenges and increase its renewable energy use globally.

• 4-2. Transitioning to 100% renewable energy for global operations by 2025

• Under its environmental strategy, Samsung Electronics aims to transition to 100% renewable energy for its global operations by 2025. This includes all of Samsung's international markets outside Korea. For the Device eXperience (DX) Division, this transition will take place within five years. Regions like Southeast Asia and Oceania are on track to achieve renewable energy matching by 2027. Samsung's strategy is comprehensive, spanning numerous markets with specific timelines: achieving this goal by 2022 for Southwest Asia and Vietnam, by 2025 for Central and Latin America, and by 2027 for Southeast Asia, CIS, and Africa.

• 4-3. Investments in solar, wind, and other clean energy technologies

• Samsung Electronics is making significant investments in solar, wind, and other clean energy technologies as part of its broader commitment to renewable energy. These investments are not only aimed at meeting their renewable energy targets but also at reducing carbon emissions and promoting environmental sustainability. Samsung’s strategic investments include Power Purchase Agreements (PPA), procurement of renewable energy certificates, and participation in green pricing programs. Furthermore, Samsung plans to invest in innovative technologies to reduce emissions, such as installing treatment facilities for semiconductor manufacturing emissions and considering electric heat sources to replace LNG boilers.

5. Enhancing Energy Efficiency

• 5-1. Energy-efficient product design and materials

• Samsung Electronics is committed to reducing energy consumption through the design and use of energy-efficient products and materials. According to their latest strategies, the company focuses on ultra-low power semiconductors and electronics. For instance, new low-power memory chips are being developed to significantly cut the annual power consumption in data centers and mobile devices by 2025. Additionally, major models of seven consumer electronics products—including smartphones, refrigerators, and washing machines—are expected to lower power consumption levels by an average of 30% by 2030 compared to products with the same specifications in 2019.

• 5-2. Sustainable manufacturing practices

• Samsung is investing heavily in ensuring sustainable manufacturing practices. The company plans to develop new technologies to reduce emissions from process gases resulting from semiconductor manufacturing. Their approach includes innovative treatment facilities and the expansion of waste heat utilization facilities to reduce the usage of LNG boilers. Samsung also aims at utilizing renewable energy more extensively, aiming to match electric power needs with renewable energy by 2050 for all operations globally. Since 2020, Samsung has been operating on 100% renewable energy in the US, Europe, and China, and has recently achieved the same goal across all DX division's business sites in Korea, as well as in Vietnam, India, and Brazil.

• 5-3. Reducing energy consumption throughout the product lifecycle

• Samsung's strategy includes reducing energy consumption throughout the entire product lifecycle, from raw material sourcing to disposal and recycling. The Circular Economy Lab, established by Samsung, focuses on comprehensive research on material recycling and resource extraction processes from waste. By 2030, Samsung aims to have 50% of the plastic used in products incorporating recycled resin, with the goal rising to 100% by 2050. Furthermore, Samsung has launched initiatives like the Galaxy S23 series, using reclaimed fishing nets, which prevented more than 50 tonnes of discarded fishing nets from entering oceans by the end of 2022. The company also runs programs to improve the resource circularity of products at every stage, including raw materials, production, usage, and end-of-life stages.

6. Promoting a Circular Economy

• 6-1. Designing products for easier repair, reuse, and recycling

• Samsung Electronics has been placing a significant emphasis on designing products that are easier to repair, reuse, and recycle. In 2022, the company expanded its self-repair program from the US to Korea and Europe, allowing customers access to tools, repair kits, and official Samsung parts to fix their own devices. This initiative has been particularly implemented in the Galaxy S series. Samsung's concerted efforts also include the integration of recycled materials into product designs. For example, the Galaxy Z Fold4 and Flip4 incorporate plastics recycled from discarded fishing nets. Furthermore, Samsung's packaging for the Galaxy S23 series is now made from 100% recycled paper.

• 6-2. E-waste collection and recycling initiatives

• Samsung has initiated various e-waste collection and recycling programs. In 2022, the company collected 600,000 tonnes of e-waste, a 9% increase from the previous year. Samsung plans to expand the scope of its e-waste collection system from around 50 countries today to more than 180 countries by 2030, aiming to collect a cumulative 10 million tons of electronic waste between 2009 and 2030. Additionally, 'Eco Boxes' are available in over 180 Samsung Service Centers in Southeast Asia and Oceania (SEAO) for customers to conveniently dispose of their old mobile phones for proper recycling.

• 6-3. Using recycled materials in products

• Samsung has significantly increased the use of recycled materials in its products. The company tripled the amount of recycled resin in its plastic parts to 99,000 tonnes in 2022, making progress towards its goal of using recycled resin in 50% of all plastic parts by 2030 and 100% by 2050. Samsung's use of reclaimed and recycled fishing nets in the Galaxy S23 series prevented more than 50 tonnes of discarded fishing nets from entering the world's oceans by the end of 2022. The company continues to expand the use of recycled materials, such as the incorporation of eco-friendly packaging made from 96% recyclable materials for serviced mobile phones in Australia.

7. Driving Green Innovation

• 7-1. Investments in sustainable technologies and R&D

• Samsung Electronics is investing heavily in sustainable technologies and research and development to address global environmental issues. As part of its New Environmental Strategy announced in September 2022, the company has committed to raising its investment in green initiatives to more than US$50 billion by 2030. This strategy includes a variety of projects aimed at reducing carbon emissions, using renewable energy, and enhancing resource circularity. Notably, Samsung launched the Samsung Climate & Circularity Tech Challenge in collaboration with Extreme Tech Challenge (XTC), which aims to identify pioneering ideas focusing on carbon emission measurement, management, reduction, and offsetting.

• 7-2. Development of ultra-low power products and energy-efficient electronics

• Samsung is actively working to develop ultra-low power products and improve the energy efficiency of its electronics. The company plans to introduce new low-power technologies in its consumer electronics, significantly reducing power consumption. By 2025, Samsung aims to develop new ultra-low power memory chips that will dramatically lower the annual power consumption of memory products used in data centers and mobile devices. Furthermore, by 2030, it intends to lower power consumption levels by 30% in seven major consumer electronics products compared to 2019 levels.

• 7-3. Carbon capture and clean air technologies

• Samsung Electronics is proactively developing carbon capture and clean air technologies to mitigate environmental impacts. The company established the Carbon Capture Research Institute within the Samsung Advanced Institute of Technology (SAIT) in September 2021, the first of its kind in the semiconductor industry. The institute's mission is to develop and commercialize technologies that make it possible to store carbon emissions from industrial sites and convert them into usable resources. Additionally, Samsung plans to implement clean air technologies, including new filtration systems, to reduce particulate matter and extend these initiatives to local communities by 2030.

8. Strategic Investments and Global Collaborations

• 8-1. Partnerships with Recycling Firms and Major Corporations

• Samsung Electronics has created significant partnerships with various recycling firms and major corporations to promote sustainability and environmental health. One example is Samsung New Zealand's collaboration with Computer Recycling, where they work together to reuse gold, silver, and other metal components from discarded devices and appliances, including those collected from Papua New Guinea and the South Pacific islands. Another initiative is the 'Go Green, Go Galaxy' campaign in Singapore, which encourages customers to recycle old smartwatches and wireless earbuds by offering discounts on new purchases; Alba, a partner e-waste operator, collects these devices for proper recycling.

• 8-2. Substantial Investments in Sustainable Projects

• Samsung Electronics has made substantial investments in sustainable projects to address climate change and promote a circular economy. In September 2022, the company announced a new global environmental strategy to achieve enterprise-wide net zero emissions by 2050 and expand the use of renewable energy. The strategy includes enhancing resource circularity for electronics products across their entire lifecycle, as exemplified by the incorporation of plastics recycled from discarded fishing nets into the Galaxy Z Fold4 and Flip4. Samsung also plans to expand low-power technologies across their major consumer electronics products to reduce energy consumption.

• 8-3. Participation in Global Environmental Initiatives

• Samsung Electronics is actively participating in global environmental initiatives to strengthen their commitment to sustainability. The company has joined the RE100 initiative, a global corporate renewable energy initiative, with goals to match electricity use with renewable energy by 2027 for their operations in Southeast Asia and Oceania. Additionally, Samsung is part of the Transform to Net Zero initiative, which includes other leading corporations such as Microsoft, A.P. Moller - Maersk, and Unilever. This initiative aims to advance business transformation to achieve net zero emissions by no later than 2050, focusing on innovation, policy engagement, and sustainable transitions.

9. Conclusion

• Samsung Electronics' comprehensive environmental strategy underscores its commitment to sustainability and climate change mitigation. The key findings highlight the company's extensive goals in achieving carbon neutrality, promoting a Circular Economy, and advancing renewable energy use. The significance of these findings lies in Samsung's robust investments and collaborations that drive forward sustainable practices and innovation. However, the strategy's success is contingent upon continuous innovation and addressing challenges such as the high energy demands in semiconductor manufacturing. Samsung's initiatives set a significant industry benchmark and offer a blueprint for other tech companies to follow, emphasizing the importance of sustainable practices. Looking forward, the company aims to further enhance its energy-efficient technologies, expand the use of recycled materials, and develop carbon capture solutions, ensuring that its operations become more sustainable and resilient to future environmental challenges. Practical applications of these findings can be seen in Samsung's ongoing efforts in product design, efficient resource use, and substantial reductions in carbon emissions, contributing to a more sustainable industry and planet.

10. Glossary

• 10-1. Samsung Electronics [Company]

• A South Korean multinational corporation and a leading player in consumer electronics and technology. Samsung is committed to achieving net zero carbon emissions by 2050 through various sustainability initiatives including renewable energy adoption, energy efficiency improvements, and promoting circular economy practices.

• 10-2. RE100 Initiative [Global Initiative]

• A global initiative bringing together influential businesses committed to 100% renewable electricity. Samsung has joined this initiative as part of its strategy to transition to renewable energy sources by 2025 across all operations outside Korea and within its DX division.

• 10-3. Circular Economy [Economic Model]

• An economic system aimed at eliminating waste and the continual use of resources. Samsung promotes a circular economy by designing products for easier repair, reuse, and recycling, as well as maximizing resource circularity.

• 10-4. Carbon Neutrality [Environmental Goal]

• Achieving a balance between emitting carbon and absorbing carbon from the atmosphere in carbon sinks. Samsung aims for net zero carbon emissions across its entire operations by 2050 with significant milestones set for the DX division by 2030.

11. Source Documents

• How Samsung’s US$5 billion sustainability plan is working outhttps://businesschief.asia/sustainability/how-samsungs-us-5billion-sustainability-plan-is-working-out
• A Better, Healthier Planet Starts Here – Samsung’s Sustainability Efforts in Southeast Asia & Oceaniahttps://news.samsung.com/sg/a-better-healthier-planet-starts-here-samsungs-sustainability-efforts-in-southeast-asia-oceania
• Samsung now nearly a third through its goal of becoming a net-zero companyhttps://www.thenationalnews.com/climate/road-to-net-zero/2023/07/01/samsung-now-nearly-a-third-through-its-goal-of-becoming-a-net-zero-company/
• Nine Leading Businesses Launch New Initiative to Accelerate Progress to a Net Zero Futurehttps://www.kipost.net/news/articleView.html?idxno=204808
• Samsung Electronics Announces New Environmental Strategyhttps://news.samsung.com/global/samsung-electronics-announces-new-environmental-strategy