Climate Change Data

SAMSUNG ELECTRONICS Co., Ltd.

Climate Impact & Sustainability Data (2008, 2015, 2018, 2019-01 to 2019-12, 2020, 2022, 2023, 2024-01-01 to 2024-03-31)

Reporting Period: 2008

Environmental Metrics

Total Carbon Emissions:9,320,000 tCO2e (2008)
Water Consumption:78,360,000 m3 (2008)
Waste Generated:460,952 tons (2008)
Carbon Intensity:7.44 ton CO2/KRW100 million (2008)

ESG Focus Areas

  • Integrity Management
  • Green Management
  • Social Contributions
  • Products & Services
  • Partner Collaboration

Environmental Achievements

  • Reduced GHG emissions by 5% compared to 2007.
  • Increased products with under 1W standby power by 20% compared to the previous year.
  • Recycled LCD waste glass with an 85% recycling rate, saving KRW 410 million.
  • Acquired six global environmental certifications (largest number among global electronics companies).

Social Achievements

  • Invested 2.9% of pre-tax income in local community projects.
  • 84,000 employees participated in the Running Festival for Charity.
  • Supported eyesight recovery operations and construction of elementary schools in China.
  • Sponsored the “Pink Ribbon Campaign” in Europe.
  • Constructed seven IT training centers in India's slums.

Governance Achievements

  • Five out of nine BOD members were independent directors.
  • Received numerous awards for corporate governance and IR.

Climate Goals & Targets

Short-term Goals:
  • Achieve 100% 1W standby power on all products by end of 2009.
  • Acquire ISO14001 and OHSAS18001 certificates at all overseas plants by end of 2009.

Environmental Challenges

  • Climate change risks (unstable energy supply, supply chain disruptions, reputational damage).
  • New regulations on GHG emissions and product energy efficiency.
  • Physical risks from extreme weather events.
Mitigation Strategies
  • Voluntary GHG reduction agreements (WSC, KEMCO).
  • Eco-design system for product development.
  • Risk response processes by plant.
  • Development of energy-efficient products.
  • GHG inventory covering the entire product lifecycle.

Supply Chain Management

Supplier Audits: 482 new Eco Partner Certifications issued in 2008, 2,031 recertifications.

Responsible Procurement
  • Eco Partner Certification program.
  • Eco Design Assessment.
  • Global system for recovering and recycling waste products.

Climate-Related Risks & Opportunities

Physical Risks
  • Damages to business premises due to typhoons and floods.
  • Water shortages due to drought.
Transition Risks
  • Increased expenses due to unstable energy and resource supply.
  • Supply chain disruptions due to regulations.
  • Reputational damage from stakeholder monitoring.
Opportunities
  • Emissions trading scheme (CDM project).
  • Renewable energy development and purchase (solar power cells).
  • Expanded market for low-energy products.
  • New market demands for home appliances due to changing living conditions.

Reporting Standards

Frameworks Used: GRI G3 Guidelines, AA1000APS

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Samjong KPMG Advisory Inc.

Sustainable Products & Innovation

  • Bubble washing machine (25% energy efficiency improvement).
  • Corn phone (bio plastics).
  • Mercury-free LED backlight unit monitor.
  • Ultra low power refrigerator and air conditioner.
  • Low-noise vacuum cleaner.

Awards & Recognition

  • World’s 50 Most Admired Companies (Fortune Magazine).
  • Energy Star Excellent Award.
  • Energy Award (Korean consumer group).
  • Grand prize of “True Company” (Ministry of Labor).
  • Energy Star Award (U.S. Environmental Protection Agency).
  • Eco-friendly Innovative Product Awards (U.S. CES).
  • Korea Environmental Management Awards (including presidential prize).

Reporting Period: 2015

Environmental Metrics

Carbon Intensity:2.64 tons of CO2 / KRW 100 million in sales (2015)

ESG Focus Areas

  • People
  • Society
  • Environment

Environmental Achievements

  • Reduced GHG emissions at the product use stage by approximately 33 million tons in 2015
  • Achieved a 49% reduction in GHG emission intensity at worksites compared to 2008

Social Achievements

  • Launched various win-win cooperation programs to support suppliers' competitiveness
  • Operated Samsung Smart School program, supporting 224,753 students in 2015
  • Implemented the Samsung Tomorrow Solution Contest, fostering innovative solutions to social problems
  • Established Samsung Tech Institutes, offering IT job training and fostering a young workforce
  • Launched Samsung Nanum Village program, improving social infrastructure in underprivileged areas
  • Implemented Samsung Care Drive program, providing medical services in medically vulnerable regions

Governance Achievements

  • Board of Directors composed of four executive directors and five independent directors
  • Established a compliance management system to prevent unlawful activities
  • Implemented Business Conduct Guidelines to promote ethical business practices

Climate Goals & Targets

Medium-term Goals:
  • Reduce 70% of GHG emission intensity by 2020 compared to 2008
  • Achieve a cumulative reduction of 250 million tons of GHG emissions at the product use stage from 2009 to 2020

Environmental Challenges

  • Increased risk from climate change
  • Supply chain risks
  • Customer diversification
  • Human rights and work environment issues in the value chain
  • Securing diversity
  • Demand for safety management leadership
  • Changes in awareness about social contribution
  • Measurement and assessment of results of social contribution activities
Mitigation Strategies
  • Analyzing climate change risks and reflecting the results in corporate policies
  • Operating a sustainable supply chain management system with risk management
  • Conducting on-site audits and third-party audits of suppliers
  • Implementing a human rights impact assessment system at worksites
  • Pursuing non-discriminatory policies for diversity
  • Strengthening workplace health and safety management
  • Implementing locally customized corporate citizenship activities
  • Measuring social and environmental impact using KPMG’s True Value method

Supply Chain Management

Supplier Audits: 455 suppliers (on-site audits in 2015)

Responsible Procurement
  • Samsung Supplier Code of Conduct
  • Global Procurement Code of Conduct
  • Conflict-Free Sourcing Initiative (CFSI)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Third-party Assurance: Samjong KPMG LLC

UN Sustainable Development Goals

  • Goal 1
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 12
  • Goal 13
  • Goal 16
  • Goal 17

Samsung aligns its initiatives with the UN SDGs in various areas, including poverty reduction, health, education, energy, employment, industrialization, inequality, sustainable consumption, climate action, justice, and partnerships

Sustainable Products & Innovation

  • Eco-friendly products
  • Energy-efficient products

Awards & Recognition

  • Ranked 3rd at the 2015 ATD BEST Awards
  • Received numerous design awards
  • Ranked first in customer satisfaction surveys
  • Received the Inclusive Society Award from RNIB (2016)

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:15,173 thousand tCO2e
Scope 1 Emissions:4,855 thousand tCO2e
Scope 2 Emissions:10,318 thousand tCO2e
Scope 3 Emissions:15,908 thousand tCO2e
Renewable Energy Share:51.6%
Total Energy Consumption:26,028 GWh
Water Consumption:134,230 thousand tons
Waste Generated:1,210,521 tons
Carbon Intensity:3.6 tCO2e/KRW 100 million in 2018

ESG Focus Areas

  • Product Stewardship
  • Commitment to the Environment in Our Operation
  • Enabling People
  • Technology for Good
  • Investing in Our Employees
  • Sustainable Supply Chain

Environmental Achievements

  • Reduced GHG emissions by 59% from 2008 to 2013
  • Achieved 100% renewable energy at US headquarters and all US Device Solution manufacturing plants in October 2018
  • Reduced GHG emissions by 2,931 metric tons in 2018 through various measures
  • Reused 62,371 thousand tons of water in 2018 (11% increase from 2017)
  • Achieved a waste recycling rate of 95%
  • Reduced office-generated disposable product usage by 80 tons in 3 months in 2018

Social Achievements

  • Launched Samsung Smart School in 2012, benefiting over 2.7 million students
  • Launched Samsung Dream Class in 2012, benefiting around 73,000 middle school students
  • Developed a mobile, eye-diagnostic device, benefiting about 28,000 patients in Vietnam
  • Conducted a human rights impact assessment (HRIA) of its Vietnamese operation in 2018
  • Provided training sessions to 540 suppliers, with 80,677 trainees completing the sessions
  • Supported 1,086 small and medium-sized enterprises (SMEs) through a smart factory support project (2015-2017)

Governance Achievements

  • Separated the roles of CEO and Chairman of the BOD in 2018
  • Established the CSR (Corporate Social Responsibility) Committee under the Board of Directors (BOD) in 2013
  • Enacted Samsung Electronics Global Code of Conduct in 2005

Climate Goals & Targets

Long-term Goals:
  • Reduce GHG emissions intensity by 70% by 2020
Medium-term Goals:
  • Expand accumulated amount of recycled plastics use to 500 thousand tons by 2030
  • Accumulate collected e-waste to 7.5 million tons by 2030
Short-term Goals:
  • Source 100% renewable energy for factories, office buildings, and operational facilities in the US, Europe, and China by 2020

Environmental Challenges

  • Climate change impacts (typhoons, floods, yellow dust)
  • Changing consumer behavior
  • Product energy efficiency regulations
  • Supply chain risks related to human rights and environmental issues
  • Water resource risks in certain regions
Mitigation Strategies
  • Investment in facility upgrades to prevent and repair damage from natural disasters
  • Development of energy-efficient products
  • Expansion of renewable energy use
  • Implementation of responsible supply chain management practices
  • Water risk management strategies including securing dual water supply pathways and installing water storage tanks

Supply Chain Management

Supplier Audits: 407 on-site audits in 2018

Responsible Procurement
  • Samsung Electronics Supplier Code of Conduct
  • RMAP certified smelters for conflict minerals
  • Eco-Partner certification for environmental performance

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Floods
  • Yellow dust
Transition Risks
  • Carbon tax
  • GHG emissions trading scheme
  • Product energy efficiency regulations
Opportunities
  • Development of energy-efficient products
  • Expansion of renewable energy use
  • Participation in carbon market

Reporting Standards

Frameworks Used: GRI Standards: Core option

Third-party Assurance: Samil PricewaterhouseCoopers

UN Sustainable Development Goals

  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 12
  • Goal 13
  • Goal 15
  • Goal 17

Samsung's initiatives contribute to these goals through various programs and activities detailed in the report.

Sustainable Products & Innovation

  • Galaxy S10 (use of bio-based/recycled plastics)
  • BESPOKE refrigerator (modular design)

Awards & Recognition

  • ENERGY STAR Partner of the Year Award (Sustained Excellence)
  • SMM Electronics Challenge Champion Award (Gold Tier)
  • ENERGY STAR Partner of the Year Award
  • Environmental Leader Award
  • Cutting Edge Award in SMM Champion Award

Reporting Period: 2019-01 to 2019-12

Environmental Metrics

Total Carbon Emissions:13,800 thousand tonnes CO₂e
Scope 1 Emissions:5,067 thousand tonnes CO₂e
Scope 2 Emissions:8,733 thousand tonnes CO₂e
Scope 3 Emissions:9,844 thousand tonnes CO₂e
Renewable Energy Share:92%
Water Consumption:134,479 thousand tonnes
Waste Generated:1,210,521 tonne
Carbon Intensity:3.1 tCO₂e/KRW 100 million

ESG Focus Areas

  • Climate Actions
  • Circular Economy
  • Labor & Human Rights
  • Privacy & Cybersecurity
  • Corporate Governance
  • Compliance

Environmental Achievements

  • Reduced GHG emissions by 5,098,000 tonnes (75% increase compared to 2018)
  • Achieved 92% renewable energy use rate in the United States, China, and Europe
  • Reduced GHG emissions in the product use phase by 270 million tonnes of CO2e
  • Percentage of Waste Recycled: 95%
  • Percentage of EHS Management Systems Certification: 100%

Social Achievements

  • 96% of employees at overseas production subsidiaries and 100% of employees in South Korea completed labor and human rights training programs
  • Two worksites in Brazil received the RBA “One Star” Award
  • Hosted multi-stakeholder forums in Vietnam
  • Total hours of employee volunteering: 878,448 hours
  • Accumulated number of beneficiaries of major corporate citizenship activities: 5,519,399 people

Governance Achievements

  • Appointed an Independent Director as the Chairman of the Board for the first time
  • Enhanced the independence of the Corporate Compliance Team
  • Launched a Samsung Compliance Committee with related companies

Climate Goals & Targets

Short-term Goals:
  • 100% renewable energy use in the US, Europe, and China by 2020

Environmental Challenges

  • Increased GHG emissions due to facility expansion and production volume increase
  • Supply chain disruptions due to COVID-19
  • Potential risks from climate change (carbon prices, extreme weather, changing consumer behavior)
  • Risks related to responsible minerals sourcing
Mitigation Strategies
  • Implemented 498 GHG reduction projects
  • Expanded renewable energy use
  • Provided KRW 2.6 trillion to maintain the safety of the supply chain, including business funds and advanced payments for suppliers
  • Developed alternative sourcing strategies
  • Complied with OECD Due Diligence Guidance to minimize negative impacts of mining minerals
  • Required all suppliers to implement processes to check for conflict minerals

Supply Chain Management

Supplier Audits: 365 suppliers audited in 2019

Responsible Procurement
  • Samsung Electronics Environmental Standard
  • RBA Code of Conduct
  • Samsung Electronics Supplier Code of Conduct
  • Eco-Partner certification

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather conditions
  • Floods
  • Cyclones
Transition Risks
  • Carbon tax
  • GHG emissions trading
  • Product energy efficiency regulations
Opportunities
  • Development of energy-efficient products
  • Participation in the Certified Emission Reduction market

Reporting Standards

Frameworks Used: GRI, UN SDGs, TCFD, SASB

Certifications: ISO 14001, OHSAS 18001, ISO 50001, KOLAS

Third-party Assurance: Samil PwC

UN Sustainable Development Goals

  • Goal 7
  • Goal 12
  • Goal 13
  • Goal 15
  • Goal 4
  • Goal 9
  • Goal 17
  • Goal 8
  • Goal 10
  • Goal 6
  • Goal 3
  • Goal 5

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Energy-efficient products (refrigerators, air conditioners)
  • Products with sustainable materials (bioplastics, recycled plastics)
  • Modular design products (BESPOKE refrigerator, Cube Air Purifier)

Awards & Recognition

  • 2019 Green Power Leadership Award for Excellence from the EPA
  • Partner of the Year – Sustained Excellence Award from the US EPA
  • Energy Winner Award of the Year in South Korea
  • RBA “One Star” Award (Brazil)
  • Highest achievable score of 100 on the Corporate Equality Index by HRC Foundation (US)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:14,806 thousand tonnes CO2e
Scope 1 Emissions:5,726 thousand tonnes CO2e
Scope 2 Emissions:9,079 thousand tonnes CO2e
Scope 3 Emissions:Not disclosed
Renewable Energy Share:100% (US, Europe, China)
Total Energy Consumption:29,024 GWh
Water Consumption:142,294 thousand tonnes
Waste Generated:1,181,741 tonnes
Carbon Intensity:3.2 tonnes CO2e/KRW 100 million in 2020

ESG Focus Areas

  • Climate Change
  • Circular Economy
  • Empowering Communities
  • Digital Responsibility
  • Labor & Human Rights
  • Diversity and Inclusion
  • Corporate Governance
  • Supply Chain Responsibility

Environmental Achievements

  • 100% renewable energy use at all worksites in the US, Europe, and China by 2020
  • Reduced GHG emissions by 7,091 thousand tonnes compared to expected emissions in 2020 (39% increase compared to 2019)
  • 95% waste recycling rate in 2020
  • Collected 4.54 million tonnes of e-waste from 2009 to 2020
  • Reduced annual energy usage by an average of 32% relative to 2008

Social Achievements

  • Provided financial support to suppliers struggling from the COVID-19 situation
  • Donated tools and equipment to support young students with online studies
  • Launched Galaxy Upcycling program, transforming used Galaxy phones into new value
  • Provided free flu vaccination for employees in South Korea (76% participation)
  • Achieved an Employee Satisfaction Score of 80% or above for three consecutive years (2018-2020)

Governance Achievements

  • Updated Global Anti-Corruption and Anti-Bribery Policy
  • Established Samsung Compliance Committee
  • Separated CEO and Chairman of the Board to ensure stronger independence and transparency
  • Incorporated sustainability KPIs into the performance evaluation and compensation of executives from 2021

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve 100% renewable energy in other regions by 2025
  • Reduce power consumption in key products
Short-term Goals:
  • Continue to expand the use of renewable energy
  • Reduce CO2e emissions in the product use phase

Environmental Challenges

  • Supply chain disruptions due to COVID-19
  • Climate change risks impacting business operations and financial performance
  • Increasing carbon prices and tightening emission regulations
  • Potential for natural disasters
  • Changes in consumer behavior
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Implemented GHG reduction projects (540 in 2020)
  • Expanded renewable energy use
  • Developed energy-efficient products
  • Established Stockpile Management Council for business risk response

Supply Chain Management

Supplier Audits: 92% of suppliers evaluated in 2020; 376 on-site audits conducted

Responsible Procurement
  • Supplier Code of Conduct based on RBA standards
  • Self-assessment tool for suppliers
  • On-site audits and third-party audits

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Natural disasters
Transition Risks
  • Increasing carbon prices
  • Changes in consumer behavior
  • Changes in regulations
Opportunities
  • Securing carbon credits
  • Saving energy costs
  • Development of energy-efficient products
  • Expansion of renewable energy use

Reporting Standards

Frameworks Used: GRI, UN SDGs, TCFD, SASB

Certifications: ISO 14001, ISO 45001, ISO/IEC 27001, ISO/IEC 27701

Third-party Assurance: KPMG Samjong Accounting Corp.

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 5 (Gender Equality)
  • Goal 10 (Reduced Inequalities)
  • Goal 17 (Partnerships for the Goals)

Description of how initiatives contribute to these goals is detailed in the report's SDG Alignment section.

Sustainable Products & Innovation

  • Eco-Package
  • Solar Cell Remote Control
  • Galaxy Upcycling
  • Energy-efficient products across various categories

Awards & Recognition

  • Best Global Brands
  • World’s Best Employer
  • CES Best of Innovation Award
  • Energy Star Awards
  • Sustainable Materials Management Award
  • Green Power Leadership Award

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:10.16 million tonnes CO2e (Scopes 1 & 2)
Renewable Energy Share:31%
Total Energy Consumption:8,704 GWh renewable energy consumed globally
Water Consumption:116.59 million tonnes reused
Waste Generated:600,502 tonnes e-waste collected

ESG Focus Areas

  • Climate Change
  • Resource Circularity
  • Technological Innovation
  • Human Rights
  • Sustainable Supply Chains
  • Community Development
  • Diversity, Equity, and Inclusion

Environmental Achievements

  • Reduced GHG emissions (Scopes 1 and 2) by 10.16 million tonnes CO2e compared to the baseline year (59% YoY increase in reduction amount)
  • Achieved 31% renewable energy transition rate (11%p increase compared to 2021)
  • Used 98,826 tonnes of plastic with recycled resin (200% increase compared to 2021)
  • Collected 600,502 tonnes of e-waste (9% increase compared to 2021)
  • 12 business sites achieved Platinum Zero Waste-to-Landfill certification

Social Achievements

  • Ranked 2nd in the World Benchmarking Alliance (WBA) Corporate Human Rights Benchmark 2022 (among ICT manufacturers)
  • 62.1% of suppliers rated as outstanding based on annual comprehensive supplier evaluation
  • Supported 277 companies through the Smart Factory project
  • Conducted 9.14 million employee training sessions
  • Employees volunteered 1.02 million hours (total of 10.97 million hours from 2012 to 2022)
  • Reached Leader rank (highest) in the Global Child Forum (GCF) Children’s Rights Benchmark 2022
  • Launched The UniverSE—The University of Samsung Electronics

Governance Achievements

  • Established the New Environmental Strategy in September 2022
  • Strengthened ESG performance of suppliers
  • Announced Global Human Rights Principles in February 2023
  • Maintained ISO 14001 and ISO 50001 certifications for all business sites

Climate Goals & Targets

Long-term Goals:
  • [object Object]
Medium-term Goals:
  • Improve power consumption of major product models by 30% by 2030
  • Apply recycled resin to 50% of plastic parts by 2030
  • Achieve net-zero emissions for DX Division by 2030
Short-term Goals:
  • Achieve 100% renewable energy transition at global business sites by 2027
  • Replace all corporate vehicles with EVs by 2027
  • Attain Zero Waste-to-Landfill certifications at all business sites by 2027
  • Apply carbon capture technology to semiconductor production sites by 2030

Environmental Challenges

  • Transition to renewable energy, especially in Korea
  • Scope 3 emissions management
  • Supply chain disruptions due to geopolitical uncertainties
  • E-waste collection in all operating countries
  • Ensuring living wages for employees
  • Addressing gender pay gaps
  • Managing climate-related risks (temperature increases, water resource depletion)
Mitigation Strategies
  • Joined RE100 initiative
  • Joined Asia Clean Energy Coalition (ACEC) and Semiconductor Climate Consortium (SCC)
  • Launched a task force to facilitate Scope 3 emissions reductions
  • Improved calculation methods for Scope 3 emissions
  • Expanded supplier training programs
  • Collaborated with BSR to calculate living wages
  • Developed gender equality self-assessment toolkit
  • Established response measures aligned with Nationally Determined Contributions (NDCs) and Representative Concentration Pathways (RCPs)

Supply Chain Management

Supplier Audits: 505 primary suppliers underwent regular environmental and safety audits in 2022

Responsible Procurement
  • Global Purchasing Code of Conduct
  • Supplier Code of Conduct
  • Eco-Partner Certification
  • RBA Code of Conduct
  • Responsible Minerals Initiative (RMI) guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
  • Rising carbon credit prices
Opportunities
  • Development of energy-efficient products
  • Expansion of renewable energy use
  • Carbon credit acquisitions

Reporting Standards

Frameworks Used: GRI, TCFD, SASB

Certifications: ISO 14001, ISO 50001, ISO 45001

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Initiatives contribute to these goals through renewable energy transition, resource circularity, sustainable product development, and climate action

Sustainable Products & Innovation

  • SolarCell Remote
  • Eco-packaging
  • Galaxy Upcycling program
  • Products with recycled materials
  • Less Microfiber Cycle and Filter for washing machines

Awards & Recognition

  • Green Power Leadership Award from the US EPA
  • CES Innovation Awards for Accessibility
  • U.K.’s RNIB Inclusive Society Award
  • Thailand’s TAB Honor Plaque
  • AI Credibility Certification from the Korean Standards Association

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:18,303 thousand tonnes CO₂e (Region based)
Scope 1 Emissions:3,733 thousand tonnes CO₂e
Scope 2 Emissions:14,570 thousand tonnes CO₂e
Scope 3 Emissions:119,730 thousand tonnes CO₂e
Renewable Energy Share:31.0%
Total Energy Consumption:36,399 GWh
Water Consumption:177,361 thousand tonnes
Waste Generated:1,314,923 tonnes
Carbon Intensity:5 tonne CO₂e/KRW 100 million (2023)

ESG Focus Areas

  • Climate Change
  • Resource Circularity
  • Water
  • Waste
  • Pollution
  • Working Conditions
  • Supply Chain
  • Information Security and Protection
  • Product Quality and Safety
  • Business Conduct

Environmental Achievements

  • DX Division: 93.4% renewable energy transition by the end of 2023, including 100% RE transition for major manufacturing facilities worldwide.
  • DX Division: Applied recycled resin in 25% of procured plastic parts.
  • DS Division: Installed 16 new process gas treatment facilities (RCS) to reduce GHG emissions.
  • DS Division: Obtained Platinum AWS certification for Giheung, Hwaseong, Pyeongtaek (Korea) and Xi’an (China) facilities.
  • Obtained 49 resource circularity certifications from the Republic of Korea’s Ministry of Environment (including 9 new certifications in March 2024).

Social Achievements

  • Established a Global Grievance Resolution Policy in March 2024.
  • Expanding supply chain work environment management to include non- and second-tier manufacturing suppliers.
  • DS Division established 'Stellar Forest', a standard workplace for people with disabilities.

Governance Achievements

  • Board of directors approved New Environmental Strategy.
  • Sustainability Committee under the Board of Directors oversees sustainability management.

Climate Goals & Targets

Long-term Goals:
  • Net zero Scope 1, 2 emissions by 2050 (overall)
Medium-term Goals:
  • DX Division: Apply recycled resin to 100% of plastic parts by 2050
  • DX Division: Cumulatively collect 25 million tonnes of e-waste by 2050
  • DS Division: Achieve net zero Scope 1, 2 emissions by 2050
  • DS Division: Achieve 99.9% waste recycling rate for Korean manufacturing sites by 2030
Short-term Goals:
  • DX Division: Net zero Scope 1, 2 emissions by 2030
  • DX Division: 100% RE transition by 2027
  • DX Division: Apply recycled resin to 50% of plastic parts by 2030
  • DS Division: Reduce water withdrawal to 2021 levels by 2030
  • DS Division: Achieve 99.9% waste recycling rate by 2030

Environmental Challenges

  • Macroeconomic uncertainties (high interest rates, inflation, geopolitical issues), sluggish memory industry, increased competition.
  • Global climate frameworks, increased regional regulations, market change, stakeholder requests, and changes in the physical environment.
  • Water stress or water risk regions for some business sites.
  • Waste treatment cost increase, treatment facility and technology limits, and lack of consumer awareness.
  • Strengthened global chemical regulations and diversified national regulatory subjects and standards.
Mitigation Strategies
  • Investing KRW 28.3 trillion in R&D and KRW 53.1 trillion in strategic facility investments.
  • Developing response strategies based on climate change risks and opportunities.
  • Preparing for droughts and floods through various measures (water storage tanks, reuse facilities, disaster insurance, emergency response systems).
  • Developing innovative technologies for recycling discarded fishing nets and expanding use of recycled materials.
  • Regularly updating chemical substance regulation database and applying company standards for integrative management.

Supply Chain Management

Supplier Audits: 395 high-risk suppliers audited in 2023 (DX: 367, DS: 28); third-party audits of 9 second-tier suppliers in Asia.

Responsible Procurement
  • Supplier Code of Conduct
  • Global Purchasing Code of Conduct
  • ESG audits
  • Supplier training programs

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Heat waves
  • Storms
  • Coastal erosion
Transition Risks
  • Increased carbon prices
  • Strengthened GHG emission regulations
  • Changes in consumer spending patterns
Opportunities
  • Development of energy-efficient products
  • Expansion of renewable energy use
  • Securing external carbon credits

Reporting Standards

Frameworks Used: GRI Standards: Core Option, UN SDGs, TCFD, SASB

Certifications: ISO 14001, ISO 45001, AWS Platinum

Third-party Assurance: Anjin Deloitte

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 8 (Decent Work and Economic Growth)

Various initiatives contribute to these goals through renewable energy transition, resource circularity, supply chain sustainability, and employee well-being programs.

Sustainable Products & Innovation

  • Energy-efficient products
  • Products with recycled materials
  • Products with recycled packaging

Awards & Recognition

  • Green Power Leadership Awards (U.S. EPA)
  • AWS Platinum certification

Reporting Period: 2024-01-01 to 2024-03-31

Environmental Metrics

Total Carbon Emissions:17,344,446 tCO2-eq/year (2023)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:301,604 TJ/year (2023)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental regulations
  • Sustainability

Environmental Achievements

  • Adoption of repurposed materials from discarded fishing nets in various projects, starting from the Galaxy S22 series.
  • Galaxy Z Fold5 and Galaxy Z Flip5 included recycled glass and aluminum.
  • Galaxy S24 series incorporates recycled cobalt and rare earth elements.
  • Introduced a self-repair program in May 2023.

Social Achievements

  • Galaxy AI, a technology that breaks language barriers and enhances productivity and creativity with the new AI experience for our customers.
  • Samsung Wallet (formerly Samsung Pay), Samsung Health, and Bixby.
  • Self-repair program.

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Weak consumer sentiment caused by global uncertainties.
  • Instability in the global automotive supply chain, high interest rates, and elevated inflation.
  • Geopolitical issues in Europe and the Middle East.
Mitigation Strategies
  • Monitoring investments to strengthen competitiveness for next-generation technologies and prepare for medium- to long-term demand while also fortifying its fundamentals by enhancing investment efficiency.
  • Allocating production more to high-value-added server and storage products (e.g., HBM, DDR5, and high-density SSDs) than to PC and mobile products.
  • Expanding application of new on-device AI chips, developing next-generation products in a timely manner, strengthening collaboration with customers, and enhancing cost competitiveness.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Eco-Partner Certification

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Galaxy S22 series with repurposed materials
  • Galaxy Z Fold5 and Z Flip5 with recycled glass and aluminum
  • Galaxy S24 series with recycled cobalt and rare earth elements

Awards & Recognition

  • Not disclosed