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November 13, 2023

Building a Sustainable Value Chain – Samsung’s Path to Net Zero

In an era where environmental concerns have taken center stage, Samsung is paving the way with its commitment to reducing its carbon footprint and achieving net zero emissions. In this interview, Hosong Hwang, Head of the Environment Team at Samsung Electronics, provides an overview of Samsung’s new environmental strategy and delves into the sustainability journey of a globally renowned electronics company.

SEMI: What is Samsung’s new environmental strategy?

Hwang: Samsung’s new environmental strategy is a comprehensive and global approach to tackle climate change. It includes commitments to achieve enterprise-wide net zero carbon emissions, as well as plans to use more renewable energy sources, to increase wastewater reuse, and to invest in and research new technologies to develop energy-efficient products.

Additionally, the semiconductor division has outlined four major environmental goals targeting key elements to drive environmental progress and innovate eco-conscious technologies to achieve these goals. Specifically, while targeting net zero carbon emissions by 2050, we aim to maintain water withdrawal at the 2021 level in 2030, to reach a recycle rate of 99.9%, and to take air and water pollutants to the natural atmosphere and upper stream level by 2040.

SEMI: How do you measure and report your sustainability performance and progress toward sustainability goals?

Hwang: We incorporate sustainability into every aspect of our business, and we strive to make a positive impact on the industry with our products and service delivery.

HSSustainability awareness is embedded throughout the company – from employees to senior executives. Our Board of Directors regularly hosts meetings with the Samsung Sustainability Committee to set the direction and monitor sustainable performance and progress in all areas of Environment and Social Governance (ESG). Moreover, we have launched councils and dedicated functional units (e.g. Corporate Sustainability Office, Environment Team, etc.) that drive our sustainable progress. Moreover, Samsung Electronics is one of the pioneering companies to report on sustainability efforts, which the company discloses its sustainability strategy and performance in the areas of People, Planet, and Principle. We also communicate efforts and progress through various platforms, both online and offline, including our website, social media, academic conferences, and industry events, among others.

SEMI: How do you monitor and reduce greenhouse gas emissions associated with your operations and supply chain?

Hwang: We aim to achieve carbon neutrality by 2050 and we align our environmental efforts to this goal. To achieve carbon neutrality, we use sustainable technology such as the Regenerative Catalytic System to treat process gases and adopt the most efficient facilities to minimize fuel consumption and electricity use, all of which contribute to greenhouse gas emissions. We carefully analyze the environmental impact of our manufacturing processes and products to manage and minimize them.

Since 2022, Samsung is part of the RE100, a global commitment to renewable energy use, and we are also part of numerous business agreements with regional power suppliers to expand the use of renewable energy. Lastly, to better manage our environmental progress within the supply chain, we are developing a carbon emission measurement system that is specific to the semiconductor industry.

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SEMI: What specific actions has Samsung already taken to reduce its environmental footprint, including energy efficiency or waste reduction programs?

Hwang: We are at the forefront of developing low-power energy and optimizing our operations to be more energy-efficient and waste conscious. Beyond carbon management, we take a deep look into the compositions of our produced waste and categorize them into specific groups so they can be reused for other meaningful purposes. Moreover, we also extract copper remains from sewage sludge, which is then used in steel manufacturing.

As a bottom-up approach, we ask employees to practice sustainability in their daily lives by reducing their use of disposable products and replacing them with sustainable materials in cafeterias and on-campus stores.

SEMI: How does Samsung ensure responsible sourcing of materials for its electronic products?

Hwang: Samsung Semiconductor upholds the high standards with regards to supply chain management. We base our standards on the Responsible Business Alliance (RBA) and direct our suppliers to follow strictly the codes of conduct in compliance with the local laws and principles. Our code of conduct covers labor and human rights, health and safety, environment and ethics, as well as requirements for supply chain management system. Suppliers are carefully selected on this basis and the documents are readily available for review.

In addition to being stringent in partner selection, we ensure that existing partners continue to follow compliance and we provide educational sessions on compliance, labor, and human rights, as well as consulting, and on-site audits.

Through these efforts, we can ensure that the materials used in Samsung products are responsible and we strongly encourage compliance and accountability from our partners. Building a sustainable future is not only about protecting the environment, but also about protecting human rights and work environments.

SEMI: How can Samsung technologies be solutions to the path toward sustainability?

Hwang: As a technology pioneer, we truly believe that technology can provide solutions to tackling environmental issues and we pride ourselves on innovating great products. We have already adopted sustainable technologies such as the Regenerative Catalytic System (RCS), integrated process gas treatment facility, and water filter facilities that employ reverse osmosis (RO) membranes and ultra-filters for recycling management. Currently, we are working on strengthening our Nitro-Oxide management system and developing a Carbon Capture and Utilization System to manage emissions more effectively from production.

However, we understand that the work has just begun and thus, we continue to excavate new technologies to help us minimize our environmental impact.

SEMI: Can you provide examples of successful sustainability partnerships that have had a positive impact on Samsung’s business and the environment?

Hwang: Our partnerships and collaborations extend along the supply chain from the public sector, to suppliers and customers. As an industry leader, we are part of global initiatives such as imec’s Sustainable Semiconductor Technologies and Systems (SSTS) program in which we collaborate with semiconductor equipment suppliers and IT companies to help reduce the ecological impact of the value chain. We are also a proud founding member of SEMI’s Semiconductor Climate Consortium (SCC) and governing council to collaborate with the semiconductor industry to tackle climate challenges. We understand that progress begins with awareness and taking collective action – together we can positively impact the environment while empowering industry growth.

We collaborate closely with both the public and private sector to expand renewable energy use and reuse wastewater. Further, we proactively explore opportunities and conduct research activities to develop better solutions to address environmental challenges.

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SEMI: What should SEMICON Europa visitors expect to learn from your presentation, Building a Sustainable Semiconductor Value Chain with Technology and Collaboration, during imec ITF towards NETZERO at SEMICON Europa?

Hwang: The need to build a sustainable supply chain has never received more attention than it does today. During my presentation, I will provide insight into Samsung’s continuous commitment and progress to sustainability as outlined in our new environmental strategy. Moreover, I will highlight the importance of collaboration within the semiconductor value chain, including customers, suppliers, and public institutions, and show our willingness to communicate transparently to stakeholders. Samsung Semiconductor will continue to innovate sustainable technology products through collaboration so we can collectively build a sustainable future.

About Dr. Hosong Hwang

Dr. Hosong Hwang is Corporate VP and the Head of the Environment Team, where he’s responsible for pollution control, resource circulation, ecosystem, and sustainable practices. Prior to this, he was at Samsung Institute of EHS Strategy implementing environmental policies for the Samsung Group. His main expertise is in environmental development, specialized on global carbon measures and sustainability. Dr. Hwang received B.S. and M.S. degrees at Seoul National University, and a Ph.D. in Environmental Policy at Imperial College London, UK.

Cassandra Melvin is Senior Director of Business Development and Operations at SEMI Europe.