Samsung Electronics "RE100, Considering All Possible Means Including PPA, Green Tariff, and REC Purchases"

'New Environmental Management Strategy' Press Conference
DS "Developing Low-Power Semiconductors from Design"
DX "Reducing Product Power Consumption by 30% by 2030"

Song Dugun, Vice President and Head of Samsung Electronics DS (Semiconductor) Environment and Safety Center, speaking at the New Environmental Management Strategy press conference on the 16th. (Photo by Samsung Electronics)

[Asia Economy Reporter Moon Chaeseok]

"We will utilize all available means domestically, such as Power Purchase Agreements (PPA), green tariffs, and Renewable Energy Certificate (REC) purchases, to maximize the expansion of renewable energy supply."

Samsung Electronics announced that it has decided to join the global campaign 'RE100,' which aims to procure 100% of its energy from renewable sources like solar power by 2050. However, it has yet to determine which domestic policy measures it will use to procure renewable energy. Given that domestic infrastructure is not as robust as in North America or Europe, concerns have arisen about increased production costs due to rising raw material (energy) procurement expenses and instability in the power supply chain after joining RE100, but Samsung has not provided specific answers.

Regarding the application of 'Scope 3,' which pursues carbon reduction through the consumer usage stage, Samsung plans to announce a detailed roadmap at an appropriate time after completing the establishment of specific reduction targets across 15 categories.

On the 16th, Kim Sujin, Vice President of Samsung Electronics' ESG (Environment, Social, and Governance) Strategy Group, responded to a question about how the company would procure renewable energy after joining RE100 at a press briefing on the 'New Environmental Management Strategy.' She said she was unaware of the industry's request to the government to recognize overseas REC purchase records.

At the briefing, Samsung Electronics provided detailed technical explanations on ▲renewable energy procurement strategy after joining RE100 (in response to reporters' questions), ▲the policy to apply ultra-low power semiconductor development from the design stage in the DS (semiconductor) division, and ▲the DX (Device Experience) division's goal to reduce product power consumption by 30% by 2030.

Vice President Kim Sujin attended the briefing along with Song Dugun, Vice President and Head of the DS Environmental Safety Center, and Kim Hyungnam, Vice President and Head of the DX Global CS Center.

Renewable Energy Procurement Method After Joining RE100 'Uncertain'

Samsung Electronics gave a general answer that it will review various options for procuring renewable energy. Given that domestic renewable energy supply performance and infrastructure are poor compared to Europe and North America, concerns are high, and the company has not provided a definitive answer. It is widely expected that, for the time being, Samsung will likely procure renewable energy by directly receiving power from renewable energy producers through PPA or green tariffs or by paying a premium.

Regarding some companies' requests to the government to recognize overseas REC issuance records, Samsung drew a line by saying, "We do not know." The government requires power producers to purchase RECs to cover any shortfall if they fail to meet the RPS (Renewable Portfolio Standard) mandatory ratio. Environmental groups argue that buying RECs overseas undermines the purpose of domestic carbon reduction policies and amounts to 'greenwashing,' sparking controversy.

Vice President Kim Sujin said, "Although options such as green tariffs, REC, PPA, and direct equity investment in renewable energy are still in the early stages, they have been introduced domestically. Considering currently available monitoring methods, Samsung Electronics will do its best to expand renewable energy procurement."

Carbon Reduction at Consumer Usage Stage 'Scope 3' Still Pending

Samsung Electronics emphasized that it will firmly implement Scope 1 and 2 in its 'New Environmental Management Strategy' announced on the 15th. The company-wide goal is to achieve carbon neutrality by 2030 in the DX division and by 2050 across the entire company, including the DS division. Beyond RE100, Samsung plans to completely control not only carbon emissions directly generated from product manufacturing and fuel use at business sites (Scope 1) but also indirect carbon emissions caused by electricity and heat production (Scope 2).

The issue is that there was no specific mention of 'Scope 3,' which encourages carbon reduction during the consumer product usage stage. The company has also refrained from mentioning this in its sustainability reports, raising media interest in the timing of Scope 3 application. Vice President Kim Sujin said, "To achieve Scope 3, specific carbon reduction targets must be established across 15 categories, which is not easy for a company like Samsung Electronics with a broad supply chain and user base. We believe it is appropriate to first disclose the general direction related to Scope 3, then gradually establish detailed reduction targets and disclose them at an appropriate time."

"We Will Develop Ultra-Low Power Semiconductors from the Design Stage"

Samsung Electronics announced that it will establish a system to create 'ultra-low power semiconductors' from the design stage of semiconductor products, including the main memory semiconductor DRAM. By applying ultra-differentiated DRAM process and design technologies, the company plans to actively reduce power consumption in high value-added products such as next-generation computing, large-scale data centers, and artificial intelligence (AI). The applications will expand beyond smartphones and laptops to high-performance PCs and servers.

For the main DRAM product, LPDDR (Low Power Double Data Rate) 5X, Samsung expects the speed to be 1.3 times faster than the previous generation and power efficiency to improve by about 20%. Through upgraded 'dynamic voltage technology,' including industry-leading 14nm process and innovative circuit design, the company aims to enhance performance while reducing power consumption compared to previous generation products.

In particular, Samsung plans to increase module power efficiency by about 30% by applying technologies such as 'HKMG' materials with high insulation effects to transistor insulating films to reduce leakage current and using TSV (Through Silicon Via) technology to create silicon penetrating electrodes. Vice President Song Dugun explained, "Regarding ultra-low power semiconductor product development, the process of designing products with power reduction in mind has already begun from the design stage."

30% Reduction in Power Consumption for Seven Major Products Including Phones and TVs

Kim Hyung-nam, Vice President and Head of Samsung Electronics DX (Device Experience) Global CS Center, speaking at the New Environmental Management Strategy press conference on the 16th. (Photo by Samsung Electronics)

The DX division's goal is to reduce the power consumption of representative models of seven major products (refrigerators, washing machines, air conditioners, TVs, monitors, notebook PCs, smartphones) by 30% compared to 2019 by 2030. To achieve this, Samsung plans to establish an annual technology roadmap, secure the relevant technologies, and then expand their application to other products and model groups.

Smartphones will optimize screen refresh rates to prevent power waste. TVs will optimize backlight brightness by changing pixel structures. Refrigerators will minimize power leakage by applying ultra-high-performance vacuum insulation materials. Washing machines will reduce power consumption through designs with low Euro resistance. Air conditioners will minimize compressor operation by applying high-efficiency refrigerants. PCs will optimize display driving voltage, and monitors will save energy by improving voltage transformer efficiency.

There are concerns among consumers that these measures could lead to price increases. Vice President Kim Hyungnam cited refrigerators as an example during the briefing, explaining that highly energy-efficient products inevitably require very expensive components during the development process to eliminate thermal conductivity. At the event, a question was raised whether the new environmental management strategy would lead to higher finished product prices since all future products, not just premium ones, would use these expensive components.

In response, Vice President Kim Hyungnam said, "We will find ways to optimize the supply chain and collaborate with partners to reduce prices to levels comparable to existing products. For example, we plan to significantly lower the price of current VIP insulation materials starting next year and apply a technology roadmap focused on products with good performance until 2030 to ensure that component costs are not passed on to consumers."

This content was produced with the assistance of AI translation services.