Samsung’s ‘New Environmental Management Strategy’… The challenge of the world’s largest ICT manufacturer
Development of ultra-low-power semiconductors and electronic products that reduce power consumption
Maximize resource circulation throughout the product life cycle from raw materials to disposal
Samsung Electronics presented a blueprint to achieve carbon neutrality by 2050 by participating in overcoming the climate crisis through innovative technologies such as the development of ultra-low-power semiconductors and products. It draws attention in that it is a comprehensive declaration of eco-friendly management by the world’s largest information and communication technology (ICT) manufacturer.
Samsung Electronics announced on the 15th that it would unveil a ‘new environmental management strategy’ containing these contents and shift its management paradigm to ‘eco-friendly management’.
Samsung Electronics, which directly produces products in all areas of the electronics industry, from semiconductors to smartphones, TVs, and home appliances, consumes the most electricity in the world. Last year, electricity consumption reached 25.8 terawatt hours (TWh).
Renewable energy supply and demand are not easy as the demand for electricity is large, and the domestic renewable energy supply condition is also unfavorable.
Samsung Electronics’ eco-friendly management paradigm shift is an essential element for strengthening its global business competitiveness. Samsung Electronics will invest a total of 7 trillion won or more by 2030 in environmental management tasks such as process gas reduction, collection and recycling of waste electronic products, water conservation, and pollutant minimization. This figure excludes the cost required to achieve the renewable energy target.
“Overcoming the climate crisis and building a circular economy are the greatest challenges of our time that require the participation of all businesses, governments and citizens,” Samsung Electronics Vice Chairman Han Jong-hee said. It will serve as a catalyst for accelerating.”
2050 goals… Carbon-neutral ‘challenge’ of the world’s largest ICT manufacturer
Samsung Electronics plans to achieve carbon neutrality by ‘zeroing’ its net direct and indirect (Scope 1 and 2) carbon emissions by 2050. First, achieve carbon neutrality in the device experience (DX) sector in 2030, and the company, including the device solution (DS) sector, seeks to achieve it as early as possible with the basic goal of 2050.
Samsung Electronics emitted 17 million tons of carbon last year. Achieving carbon neutrality means reducing carbon emissions by that much. It is equivalent to the amount of carbon dioxide absorbed by 2 billion pine trees, resulting in the suspension of 8 million cars.
Samsung Electronics invests heavily in carbon emission reduction facilities that apply innovative technologies to reduce direct carbon emissions (Scope 1) generated at its business sites.
Currently, the carbon emitted directly by Samsung Electronics is mainly due to the use of fuel such as process gas and LNG generated in the semiconductor manufacturing process. By 2030, Samsung Electronics plans to develop new technologies to significantly improve process gas treatment efficiency and expand treatment facilities in its lines. In addition, to reduce the use of LNG boilers, the use of waste heat will be expanded and the introduction of electric heat sources will be considered.
Samsung Electronics joined the global initiative ‘RE100’ to reduce indirect carbon emissions (Scope 2) caused by electricity use, and decided to promote the conversion of used electricity to renewable energy by 2050.
First of all, Samsung Electronics will pursue the achievement of renewable energy targets at all overseas business sites within five years. Southwest Asia and Vietnam will complete their respective renewable energy targets by 2022, Latin America by 2025, and Southeast Asia, CIS, and Africa by 2027. In the case of the United States, China, and Europe, which have already achieved their renewable energy targets, they decided to expand renewable energy supply agreements (PPAs) directly signed with renewable energy power generation companies.
In the DX sector, both at home and abroad are pursuing the achievement of the renewable energy target by 2027.
As Samsung Electronics continues to expand its semiconductor production lines, power consumption is bound to increase. In addition, Korea, where core semiconductor plants are located, has relatively poor renewable energy supply conditions, making it difficult in reality to achieve the renewable energy target.
Despite this situation, Samsung Electronics decided to expand the use of renewable energy in order to participate in the global effort to reduce carbon. We plan to strengthen cooperation with various stakeholders, including the same industry and civil society, rather than just staying in the corporate role as an energy buyer.
Development of ultra-low-power semiconductors and electronic products that reduce power consumption
Semiconductor plans to significantly reduce the power consumption of memory used in data centers and mobile devices by 2025 by securing ultra-low power technology.
The miniaturization of semiconductor processes and the development of low-power design technology can contribute to the reduction of greenhouse gases by reducing the power used by various information technology (IT) products and data centers. In addition, it enables the development of products with the same performance with fewer raw materials.
By applying low-power technology to representative models of seven major electronic products such as smartphones, TVs, refrigerators, washing machines, air conditioners, PCs, and monitors, power consumption in 2030 will be improved by an average of 30% compared to the same performance model in 2019. In addition, it plans to achieve this goal by developing technologies that save energy by applying high-efficiency parts (compressors, heat exchangers, semiconductors) and improving the operation algorithm of products, such as introducing artificial intelligence (AI) saving mode.
Samsung Electronics will convert all business vehicles (1500) to 100% zero-emission vehicles (electric and hydrogen vehicles) by 2027. In addition, the company plans to set mid- to long-term reduction targets for other indirect emissions (Scope 3) and continuously discover various reduction tasks in supply chain, resource circulation, and logistics.
We also systematically support partner companies to establish and implement greenhouse gas reduction targets. Samsung Electronics decided to participate in the carbon reduction performance certification system prepared by the Samsung EHS Strategic Research Institute to accurately measure performance, and to form a ‘carbon reduction certification committee’ including external experts to receive objective inspection.
From raw materials to disposal… Maximize resource circulation throughout the product life cycle
Samsung Electronics is embarking on a project to increase resource circulation throughout the entire cycle of electronic products, from raw materials to disposal and recycling. The goal is to create a ‘resource circulation system’ that makes electronic products from recycled materials, collects used products, extracts resources, and uses them once more as materials for products.
Samsung Electronics established the ‘Circular Economy Research Center’, an organization that researches material recycling technology and product application to maximize resource circulation. This research institute is an organization that ultimately promotes the replacement of all materials in products with recycled materials through the development of recycled materials and research on the extraction of waste resources.
Samsung Electronics will greatly expand the application of recycled resin to plastic parts used in its products. Recycled resin will be applied to 50% of plastic parts by 2030 and to all plastic parts by 2050. The company will also expand the application of plastics made from recycled marine waste, such as the waste fishing nets applied to the Galaxy Z Fold 4.
In the case of waste batteries, by 2030, Samsung Electronics plans to establish a system that extracts minerals from all waste batteries and recycles them. In addition, in order to solve the problem of e-waste that threatens the global environment, the waste product collection system will be expanded from the current 50 countries to 180 countries, all of which Samsung Electronics sells products by 2030. . In this way, it is planning to collect 10 million tons of waste electronic products from 2009 to 2030, the largest in the industry, and 25 million tons by 2050. It is also actively promoting an upcycling program that collects used smartphones and reuses them for other purposes.
‘Industrial rice’ semiconductor, water reuse and reuse… conserve water resources
Samsung Electronics is also working to maximize the use of water resource circulation to strengthen resource circulation in its business sites. In particular, domestic semiconductor business sites are promoting ‘zero increase in water intake’. With the expansion of the semiconductor line, the daily water intake required at the semiconductor business site will more than double the current level in 2030. However, Samsung Electronics decided to increase the reuse of water as much as possible and freeze it at the level of last year. In the DX sector, water reuse will be expanded by upgrading water treatment facilities, and 100% of the water used will be returned to society by 2030 through global water resource discovery projects, water quality improvement, and river restoration projects.
Samsung Electronics’ DS division minimizes air and water pollutants emitted. By applying a new technology that removes air and water pollutants emitted in the process of semiconductor production, from 2040, the goal is to treat and discharge in a ‘natural state’ with little impact on the environment.
Through the development and application of new treatment technologies, Samsung Electronics plans to treat and discharge the effluent with clean water at the upstream level and clean air at the national target level. In addition, Samsung Electronics plans to expand the acquisition of waste landfill zero platinum certification issued by UL (Underwriters Laboratories), a global environmental safety certification body (resource recycling rate of 99.5% or more), to all global business sites by 2025.
“Capture carbon and reduce fine dust”… Contribute to solving environmental challenges
Samsung Electronics plans to contribute to resolving global environmental challenges by consolidating super-gap technology and capabilities. In particular, it will focus its capabilities on the development of carbon capture and utilization technology to solve the carbon emission problem, and reduction technology to solve the problem of fine dust, which is a problem in the global environment.
Samsung Electronics established the first carbon capture research center in the semiconductor industry in September last year to develop and commercialize carbon capture and utilization technology that stores carbon emitted from the semiconductor industry and recycles it as a resource. Samsung Electronics plans to apply carbon capture technology to semiconductor manufacturing facilities following 2030 and then expand it to the company and its partners. If the development of carbon capture and utilization technology bears fruit, it is expected to fundamentally solve the common carbon emission problem in the semiconductor industry and improve the eco-friendliness of the semiconductor industry.
Samsung Electronics is also actively developing technology to reduce fine dust that pollutes the air and plans to use it in the local community from 2030. Samsung Electronics established the Fine Dust Research Center in January 2019 and is striving to develop various new concept filters and original technologies for air purification systems for fine dust detection, analysis, and removal.
The company plans to develop a ceramic catalyst filter that can be washed and reused and that can remove fine particles and gases at the same time, and will be applied to local communities such as business partners, bus terminals, and daycare centers.
Investment and support for eco-friendly startups… Implementation progress check
Investments are also made to discover promising eco-friendly technologies and to nurture and support startups in the field. Together with the technological innovation community, we plan to cooperate in solving global environmental challenges by supporting the commercialization and dissemination of innovative technologies.
C-Lab, an internal and external venture nurturing program, actively discovers and supports eco-friendly projects.
Samsung Electronics will establish an implementation roadmap for each specific task to ensure the execution of its environmental strategy, including the carbon-neutral goal, and check implementation progress through the Sustainability Management Council supervised by the CEO and the Sustainability Management Committee consisting of outside directors. to be.
Reporter Jo Ara at Hankyung.com rrang123@hankyung.com
