GHG management

GHG Management for Scope 1 and 2

Samsung Electronics' total emissions of greenhouse gases with regional breakdown are shown in Figure 1. The Global GHG emissions of Scope 1 and 2 in 2012 were decreased to 34% from 2011. It was mainly because of structural reorganization, including separation of the LCD business division.
The GHG emission data for Korea between 2010 and 2012 was adjusted with third party verification in June 2012 according to Korea national GHG target management rule.

Figure 2 demonstrates the decrease in GHG emissions normalized by sales which was mainly resulting from the company’s GHG reduction initiatives (삭제- and separation of the LCD business division). We have taken various measures including the installation of facilities for reducing GHG emissions from industrial processes, improvement in energy efficiency of production facilities and, installation of high efficient facilities and we will continue to implement various GHG reduction measures.

Figure 1. Global GHG Emissions

(1,000 tons CO2)
Greenhouse Gas Emission

Figure 2. GHG Emissions Intensity

(tons CO2 / KRW 100 million)
GHG Emissions Relative to Sales (Domestic)
Region 2010 2011 2012
Total 10,655 11,304 7,486
Korea 9,609 9,955 6,005
Asia excl. Korea 679 755 848
America 311 530 551
Europe 56 64 83
Category 2010 2011 2012
Korea 5.11 4.46 2.54
Global 4.15 3.70 2.34
  • GHG emission intensity :

    Total CO2 emissions ÷ (Sales¹ / PPI²)
    ¹ Sales : Non-consolidated(Korea), Consolidated (Global)
    ² PPI : Producer price index in The Bank of Korea (Base year : 2005)

* Korea KRW-based emissions intensity calculation formula: Total CO2 emissions in Korea(1) ÷ (HQ-based sales / price index(2))
(1) Total GHG (converted into CO2) emissions from manufacturing sites in Korea
(2) The Bank Of Korea’s PPI for the years (with the 2005 PPI being 1)
** Global KRW-based emissions intensity formula: Total global CO2 emissions ÷ (annual global sales / price index(2))
*** The figures of year 2012 reflect the structural reorganization, consisting of separation of the LCD business division and incorporation of the LED division, undertaken by the company in April 2012.

Sources of GHGs

The GHG sources and their ratios in 2012 are shown in Table 1. Scope 1 emissions include GHG emissions from direct combustions (LNG, LPG and diesel), F-gas process emissions and emissions from vehicle fuel, etc. Scope 2 emissions are derived from purchased electricity and purchased steam.

The GHG emission management scopes are production plants and buildings under direct operational control by Samsung Electronics. The company has developed the Global EHS system (G-EHS) for integrated management of ESH database, and monthly GHG emission data are reported and managed through the G-EHS system from 60 Korean plants and buildings, 28 overseas production plants, and 76 non-production subsidiaries (sales, logistics, and R&D centers).

Table 1. GHG Emissions Sources
Category Sources 2012
Scope 1 Stationary Combustion (LNG, Diesel, etc) 7.2%
Mobile Combustion (Gasoline, Diesel, etc) 0.3%
Process Emission 20.5%
Scope 2 Electricity (purchased) 71.8%
Steam (purchased) 0.2%

Third-party verification statement by KFQ

Third-party verification

Our GHG reduction has been verified by a third party agency in compliance with relevant Korean government policy "Greenhouse Gas and Energy Target Management Scheme Guideline" and the international ISO 14064-3 standard. The Korean Foundation for Quality has recently completed verification of GHG emissions data between 2007 and 2012 of 60 Korean plants and buildings. We also voluntarily received GHG emission data verification for overseas production plants.