Samsung sets out $5 billion green strategy

Electronics giant Samsung is putting its money where its mouth is when it comes to the environment.

This week it unveiled its new green strategy, which includes the various net zero carbon emissions targets that we’ve come to expect from multinationals like this. However, while many companies state their objectives and leave it at that, Samsung has gone a step further, backing up its commitments with cold hard cash.

And it’s a lot: 7 trillion won ($5 billion) between now and 2030, to be precise. And that excludes the money it plans to spend on making greater use of renewable energy.

“The climate crisis is one of the greatest challenges of our time. The consequences of inaction are unimaginable and require the contribution of every one of us, including businesses and governments,” said Jong-Hee Han, vice chairman and CEO of Samsung Electronics, in a statement on Thursday. “Samsung is responding to the threats of climate change with a comprehensive plan that includes reducing emissions, new sustainability practices and the development of innovative technologies and products that are better for our planet.”

Samsung’s headline targets are to achieve net zero carbon emissions at its Device Experience (DX) division – which includes everything in the consumer electronics business, like smartphones, TVs and white goods and so-on, as well as its network and medical equipment businesses – by 2030. Samsung’s Device Solutions (DS) division – which encompasses its semiconductor ops – has been given until 2050 to hit the same target. Achieving net zero direct and indirect carbon emissions would be equivalent to cutting CO2 emissions by 17 million tons.

To achieve its aims, Samsung will use more energy efficient components in its products. In so doing, it hopes to reduce the power consumption of its smartphones, PCs, TVs, monitors, washing machines and refrigerators by an average of 30 percent by 2030. By the same year, Samsung also plans to use 50 percent recycled resin for all the plastics in its products, rising to 100 percent by 2050.

It will also expand its waste collection initiative from 50 countries to around 180 countries by the end of the decade. On that note, Samsung also aims to improve its water treatment facilities so it can reuse all the water consumed by its DX division. Alongside that, the DS division aims to remove air and water pollutants emitted during its semiconductor manufacturing processes and treat them before being discharged in order to all but eliminate their environmental impact by 2040. Furthermore, Samsung has set a target of achieving platinum-level Zero Waste to Landfill Certification by 2025.

It’s not stopping there. Samsung has also joined the RE100 initiative, which aims to encourage corporations to commit to using 100 percent renewable electricity. In line with this, it said it plans to match the electric power needs of its global footprint – excluding Korea – with energy from renewable sources within five years.

In addition, Samsung intends to address climate challenges directly by investing in carbon capture and air filtration technologies, and indirectly by investing in start-ups developing innovative green technologies.

Reducing its environmental impact is a welcome ambition from such a large and resource-hungry company, and what’s more if it can do it without having to reduce its output, or sacrifice long-term profitability, and generally do the sort of things that irk financial investors, so much the better. Here’s hoping others follow its example.

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