Can you describe Samsung's pragmatic approach to sustainability and its impact on your strategy at Samsung Electronics America? How do you integrate environmental and social factors into business decision-making?
At Samsung, sustainability is a business imperative and a customer requirement. Many of our customers have sophisticated programs, and we need to be responsive to that. There are expectations for Samsung, as a global company, to be responsible for our operations. Sustainability comes down to materiality and measuring impacts, integrating these into our business decision-making process.
Quantifying these impacts, often externalities, is crucial. It’s straightforward to run a business on P&L balance sheets, but challenging when decisions involve unmonetized factors. My role involves helping the business understand these impacts in actual business parameters, incorporating them into normal business planning and decision-making. If we don't consider these impacts, we aren't making sound decisions. Hence, integrating these externalities is essential for our operations.
There are many aspects to sustainability, and it's important to understand the magnitude of these impacts in relation to our business. For Samsung, energy efficiency is the primary driver for our entire footprint, from sourcing materials to product use by consumers. This focus on energy efficiency distinguishes us from other tech companies that typically outsource manufacturing. We insource almost everything, which means our entire supply chain is vertically integrated. This integration allows us to have greater control over our environmental impacts, particularly in terms of greenhouse gas emissions across scopes one, two, and three.
Our scope three emissions, which include indirect emissions from the use of our products, constitute about 80% of our total greenhouse gas emissions. While most tech companies’ Scope 3 impacts are also about 80% of their total footprintours is different from many companies where scope three emissions are mostly from outsourced, supplier relatedactivities. For Samsung, the energy used by our products is the major contributor, which is why energy efficiency is central to our sustainability strategy. However, we don't neglect scope one and two emissions; we continue to manage and mitigate these impacts diligently. Efficiency is key, not only for energy use but also for material use. Our circularity initiatives aim to maximize the recycling of materials at the end of product life, promote repair options for consumers, and reintegrate recycled materials into new products.
What innovations is Samsung implementing to ensure sustainability throughout the entire product life cycle?
Sustainability is not only a business imperative but also a lens for innovation at Samsung. Since 2009, through improvements in product use energy efficiency, we have helped our customers avoid over 350 million metric tons of CO2 emissions. By 2030, we aim for another 30% in energy efficiency improvement, based on 2019 levels, with a current progress of around 25%. Our commitment to energy efficiency is deeply ingrained in our strategy and is reflected in the way we design and manufacture our products.
Our innovation extends to circularity, like the solar remote, which avoids millions of discarded batteries. We open-sourced this technology for broader use. Collaborations, such as with Patagonia to reduce microplastics, showcase our innovative spirit. Upcycling old phones and integrating ocean plastics into our products are other examples. Additionally, our SmartThings Energy platform helps consumers monitor and optimize energy usage, connecting devices to the grid and using AI for efficiency recommendations and automation.
The solar remote, for instance, has significantly reduced the environmental impact of our remote controls. By utilizing solar cells and harvesting RF energy, we have eliminated the need for disposable batteries. By open-sourcing this technology, we hope to extend its benefits to the entire electronics industry, further amplifying its positive impact.
Our partnership with Patagonia to develop laundry products that reduce microplastics is another example of our collaborative approach to sustainability. By working together, we have created advanced laundry cycles and microbubble technology that minimize fiber shedding, helping to protect our oceans.
Upcycling is another innovative approach we are exploring. Old phones, for instance, can be repurposed for various applications, leveraging their sensors and cameras for new uses. Our SmartThings app supports this by allowing consumers to find creative ways to use their old devices, reducing electronic waste. We are also integrating ocean plastics and recycled metals and glass into our products, further advancing our circularity goals. Focusing on materials like critical minerals from batteries and chassis metals, which constitute a significant portion of an electronic product's weight, is essential for resource conservation. Our efforts to recover and recycle these materials ensure that we are not only addressing electronic waste but also conserving valuable resources.
How does Samsung engage with Gen Z to promote sustainability, and can you share details about programs like Climate Superstars?
Engaging with Gen Z is crucial as many of our customers and employees are from this demographic. Programs like Climate Superstars, in collaboration with the US EPA, have focused on environmental literacy among middle school students. Solve for Tomorrow, our STEM literacy initiative, reaches millions of students globally, emphasizing solving community problems through STEM, including environmental and social issues. These programs are designed to inspire young minds and equip them with the knowledge and skills needed to address the challenges of sustainability.
We connect with our employees and broader public, recognizing Gen Z's heightened sensitivity to these issues. By involving our employees and aligning our initiatives with their values, we foster a deeper connection. These programs not only engage young minds but also inspire future leaders in sustainability, promoting environmental responsibility from a young age. Climate Superstars, for instance, encourages students to learn about environmental issues through fun and interactive activities, fostering a sense of responsibility and empowerment.
Solve for Tomorrow takes this engagement a step further by challenging students to use STEM to solve real-world problems. This program not only enhances STEM literacy but also encourages students to think critically about environmental and social issues. The projects developed through Solve for Tomorrow often address local community challenges, making the learning experience relevant and impactful. By connecting with students at an early age, we hope to instill a lifelong commitment to sustainability.
Our engagement with Gen Z extends beyond these programs. We actively seek feedback from our younger employees and incorporate their insights into our sustainability strategies. This demographic often over-indexes on issues like social impact and environmental justice, which helps us refine our approach. By understanding and addressing their concerns, we build trust and ensure that our sustainability initiatives resonate with the next generation.
What motivates you in your role as head of corporate sustainability, and how have your past experiences shaped your approach? Any advice for aspiring sustainability leaders?
My journey began as a scientist with a PhD in chemistry, focusing initially on eliminating hazardous substances from products. Over the years, the scope expanded to recycling, energy efficiency, and climate awareness, driven by a rising public consciousness and initiatives like Al Gore's "An Inconvenient Truth." Social impact has always been intertwined with environmental efforts, influencing my approach to sustainability. This scientific background has given me a solid foundation for understanding the complex issues related to sustainability and has shaped my approach to tackling these challenges.
Throughout my career, I have learned that social impact is inseparable from environmental sustainability. Addressing one without the other is insufficient. Gen Z's strong focus on social justice issues has been a significant insight for us, and is why we design our products at all price points with sustainability in mind. This demographic cares deeply about the broader societal impacts of environmental actions. By framing our environmental initiatives within a human context, we have been able to connect more effectively with this audience. Transparency in our actions and communicating the societal benefits of our sustainability efforts are crucial for building trust and credibility.
For aspiring sustainability leaders, my advice is to remain steadfast in your purpose. Sustainability can be a challenging field, often requiring one to push against established norms and practices. It's important to stay true to your values and not be discouraged by setbacks. Focus on material issues that have the most significant impact, and be strategic in your efforts. It's easy to get spread too thin, but concentrating on key areas where you can make a real difference is essential.
