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According to environmentalists, the rising carbon emissions from Samsung Electronics and the slow reduction in fossil fuel use are undermining the group’s sustainability claims.
Criticisms occur when companies are subjected to increasing control over climate change and concerns about green washing, so that organizations exaggerate their environmental commitments and achievements.
“Everyone has ESG initiatives, everyone talks. . . but we don’t see real tangible changes, ”said Young Sejong, director of Solutions for Our Climate, a Seoul-based non-governmental organization.
Samsung is one of the world’s largest producers of computer chips, smartphones, electronic screens and home appliances. The South Korean group has reported that its greenhouse gas emissions increased by 5% year-on-year in 2020.
The company also relies on fossil fuels for more than 80 percent of its electricity, according to Greenpeace, the environmental campaign group.
The data has raised questions about Samsung’s climate change efforts even though the group claimed its sites in the US, Europe and China now only use renewable energy.
Samsung declined to comment.
South Korea and Vietnam, two of its main manufacturing bases, where energy systems remain dependent on coal, highlight the company’s challenge to change.
Samsung has been pressuring Seoul and Hanoi to accelerate deregulation of the energy market aimed at inviting investments in renewable energy.
Samsung wants to be able to acquire energy from independent renewable energy generators, ignoring state-owned energy groups that have been slow to move from coal.
The company is developing specific targets for the use of renewable energy in both countries, but no deadline has been set, which highlights a lack of confidence in making significant short-term progress.
Samsung has also been looking for opportunities around the world to acquire credits to offset carbon emissions and join other pricing schemes to boost renewable energy. In Brazil and Mexico, for example, the company plans to reach 100% renewable energy by 2025.
But activists said Samsung should put more pressure on governments, given its immense political influence. In South Korea and Vietnam, the group is the single largest corporate entrepreneur and the one that contributes to gross domestic product.
“Given Samsung’s business scale and impact on the overall economies of Korea and Vietnam and its commitment to pursuing renewable energy targets in other markets, it has the power to make great strides in Korea and Vietnam seeking access easier on both renewable energies. countries, ”Greenpeace said.
Youn said the “real culprits” in South Korea are the state energy group Korea Electric Power Corp. and government ministries to withstand changes in the energy market for years.
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Renewable supply in the country accounts for only about 5%, although new rules are being implemented to allow direct power purchase agreements.
“It’s ridiculously low, and that makes it really hard to make any significant initiative on renewable energy,” Youn said.
To further undermine the company’s claims, Samsung’s subsidiaries, along with units of vehicle maker Hyundai, Kepco and other South Korean companies and financial institutions, have for years has been at the forefront of the development of coal energy in Vietnam.
“On the one hand, they say they want more renewable energy for their electronics factory, and on the other, they’re building this unnecessary coal-fired power plant…. We all know that Samsung’s headquarters really coordinates those decisions.” Youn added.
Several groups, including Samsung’s financial units, last year promised to finish coal financing.
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