Download Climate Change and Energy

9 Material Issues
Climate Change and Energy
Since the United Nations Framework Convention on Climate Change was held in 1992, climate change has become
one of the most important international issues. Climate change is already affecting many people in daily lives with
unpredictable weather conditions, draughts and flooding, so greenhouse gas (GHG) management to reduce the impact
on climate change has become a key challenge for the global community.
Many governments are implementing new policies to reduce its national GHG emissions by imposing limits on GHG
emissions and carbon taxes. Many industries have embraced GHG reduction as an important management priority,
implementing energy efficiency improvement measures and developing GHG emissions reduction technologies to
make their contribution to mitigation.
Establishing Climate Change Mitigation System
Samsung Electronics established a mid-term green management objective, EM 2013, in 2009 and developed a greenhouse gas emission management system which monitors both direct and indirect emissions associated with all relevant business activities including manufacturing, product use,
global partners, logistics and employee’s work-related travels. Using the system, we are carefully monitoring each source of GHG emissions and achieving reductions to fulfill our corporate responsibility in mitigating climate change.
Climate Change Response Strategy
Reduction of F-gas emissions
from the semiconductor and
LCD manufacturing process
Incorporation of GHG
reduction facilities
Product energy efficiency
improvement
Reduction average energy
consumption of products by
40% and achieving 0.5W of
standby power by 2013, in
comparison to 2008 figures
EM2013
Eco-Management
Implementation of energy
management system and
establishment of internal
energy efficiency certification
system subjected to all business
sites in Korea
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Implementation of
energy management
system
Supplier support
Support for the establishment
of global supplier’s GHG
inventory system by offering
training and expertise sharing
to global suppliers
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Sustainability Overview
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9 Material Issues Climate Change and Energy
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Facts & Figures
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Appendices
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Implementation of GHG Reduction Facilities and Improvement of Energy Efficiency
Samsung Electronics is implementing various measures to achieve its mid-term target of 50% reduction in GHG emissions intensity by 2013 when compared to 2008 levels. For instance, we installed F-gas treatment equipment to reduce SF6 and PFCs gases from the LCD and semiconductor manufacturing process which is equivalent to a reduction one million and thirty thousand tons of CO2.
Various energy efficiency improvement measures, including replacement with energy-efficient equipment system, installation of high efficiency transformers, and waste heat recovery facilities, were implemented which resulted in a reduction of 370 thousand tons of CO2. As a result, we have achieved
our annual reduction targets since 2009 and achieved a 40% reduction in CO2 emissions intensity in 2011 compared to the 2008 baseline.
The GHG emissions in global productions sites have been verified by a third party agency. The Korean Foundation for Quality has recently completed
verification of GHG emissions data from 2007 to 2011 for eight operation sites in Korea as well as thirty overseas subsidiaries. We plan to continue disclosing the third-party verification GHG emissions data to ensure its accuracy and credibility.
GHG Emissions Reduction Achievement (tons CO2/KRW 100 million)
GHG Emissions Intensity (Korea)
(tons CO2/KRW 100 million)
Target Actual Emission
CO2
GHG emissions intensity
(compared to 2008 baseline)
40
7.44
2008
6.85
7.44
5.65
5.83
% Reduced
4.46
2011
1 USD=1,164.30 KRW (base year: 31st. Dec. 2011)
4.62
5.11
2008
(baseline)
2009
2010
4.46
2011
3.72
2013
(mid-term
target year)
Data scope: 8 production sites in Korea (Suwon, Gumi, Gwangju, Giheung, Hwaseong,
Onyang, Tangjeong, Cheonan)
GHG Emissions Reduction Associated with Product Use
An increasing number of governments are implementing regulations on limiting electricity consumption by products. Many governments in South
America and the Middle East have introduced new energy regulations and standards have become more stringent in Europe and North America. We are
monitoring changes in regulations and increasing investment in developing energy efficient products to cope with the requirements and contribute to
reductions in GHG emissions associated with the use of our products.
Samsung Electronics has a mid-term goal of improving energy efficiency of its products by 40% over 5 years from the baseline in 2008, which is estimated to be equivalent to about 84 million tons of accumulated CO2 reduction over a five year period. We are especially focusing on voluntarily improving energy efficiency and standby power consumption of eight key products including refrigerators, washing machines, air conditioners, TVs, and IT
devices. Thanks to the improvement made, the estimated CO2 emission associated with use of Samsung products has reduced by 17.63 million tons
of CO2 in 2011 compared to the 2008 baseline alone, with an estimated accumulated reduction of 32.92 million tons of CO2 over a three-year period
(2009-2011).
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Cumulative GHG Reduction for Poduct Use Compare to 2008 Baseline
(10 thousand tons CO2)
Average Power Consumption by Poduct
Target Actual emission
2013 target
(compared to 2008 baseline)
40
% Reduce
2009
334
2010
444
1,169
1,529
2,695
2011
3,292
8,468
2013
Data scope: 8 key products sold globally (TV, washing machine, refrigerator, air conditioner,
monitor, note PC, printer, mobile phone)
We are actively participating in a carbon footprint labelling scheme established by the Ministry of Environment in Korea as well as the carbon footprint
scheme established by the Carbon Trust in the U.K., to demonstrate and verify GHG emissions in product life-cycle. Carbon footprint labeling is
designed to help manufacturers reduce carbon emissions and encourage consumers to choose low carbon products by disclosing GHG emissions
associated with each product through labeling.
Samsung Electronics first participated in the Korean scheme in 2009 and recently received the first carbon footprint reduction label for a LED TV, a Note
PC and a memory chip product. Our Galaxy SII smartphone and Galaxy Note also became the first product in their category to receive a Carbon Footprint
label issued by the Carbon Trust. Overall, our efforts in carbon footprint management and GHG reduction are increasingly recognized internationally.
Low Carbon Product Certification Winners
13%
LED TV
CO2
33%
Note PC
CO2
24%
Semiconductor
CO2
38 / Samsung Electronics Sustainability Report 2012 /
Incorporated high efficiency LED and extra transparent polarizing film
for CO2 reduction compared to previous
UN55B7000WF (GHG Emission Certificate)
UN55D8000YF (Low Carbon Certificate)
Reduced standby power and implemented power saving
‘Eco-mode’ for CO2 reduction
NT-R540 (GHG Emission Certificate)
NT200B5B (Low Carbon Certificate)
Employed advanced 35nm technology and GHG reduction facility
to achieve 24% reduction in GHG emissions and 14% reduction in
power consumption
2G DDR3 46 nm (GHG Emission Certificate) 2G DDR3 35 nm (Low Carbon Certificate)
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Sustainability Overview
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9 Material Issues Climate Change and Energy
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Facts & Figures
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Appendices
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GHG & Energy Management System
We are monitoring GHG emissions associated with transport of our parts and products, supplier activities and employees’ business travel. In 2011,
estimated GHG emissions associated with logistics and employees’ business travel were 8.5 million tons CO2. supplier activities were responsible for 4.5
million tons-CO2 in 2010. We consider setting phased emissions reduction targets of suppliers after analyzing their emissions trends.
We implement international energy management systems in order to monitor and reduce our energy consumption and provide third party verified
improvements. We received ISO 50001 certification in 2011 for Gumi, Giheung, Hwasung, Onyang and Tangjung plants in Korea. Additionally, we plan
to have our three remaining Korean plants certified with ISO 50001 by the end of 2012. Overall, we are systematically managing energy use at each
production plant and implementing energy saving measures according to the priorities.
In addition to ISO 50001 certification, we also received ‘Carbon Trust Standard’ certification in April 2012 for significant GHG reductions achieved by all
eight Samsung Electronics production plants in Korea.
We have implemented ‘Eco-Design process’ to address energy efficiency and standby power of our products. Samsung will continue to reduce its energy consumption from its operations and products to respond to the climate change challenge.
Indirect GHG Emissions
(1,000 tons CO2)
2009
Supplier activities
Logistics
Employee’s business travel
2010
2011
2011
4,502
61
N/A
5,690
7,430
101
8,440
61
101
113
113
812
Supplier activities: The emission data is total emission amount of all participated suppliers for GHG inventory reporting. The proportion of participating suppliers has increased from 40% in 2009 to
63% in 2010 in terms of proportion of total purchasing amount. (Collection of 2011 data will be conducted in second half of 2012)
Logistics:
Based on international flights/maritime transport, Korean land transport
Employee’s business travel: Based on global business travel data by Korea-based employees
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