Samsung Electronics intends to join a group of global firms committed to 100 percent renewable energy as soon as next month, according to a source familiar with the matter, as partners including Apple Inc (AAPL.O) press for action on climate change.
Samsung, the world’s largest chipmaker, has been slow to sign on to the green energy pledge: It’s been two years since SK Hynix joined the RE100 program, which aims for 100% renewable electricity by 2050, while global counterparts like Apple, TSMC (2330. TW), and Intel (INTC.O) are already among the 350 members.
The cautious company’s declaration, which is likely as early as the installation of the new president of South Korea on May 10th, will get it on board just as the nation’s energy policy is set to take a major U-turn away from the previous administration’s aggressive push towards renewables and toward a pro-nuclear posture.
“It is going to be a group-wide statement that includes affiliates like Samsung Display,” a source close to the situation said.
“The entire group, including RE100, will declare its climate targets around the time the new administration takes office,” the person added, declining to be identified owing to the delicacy of the matter.
According to the source, Samsung discussed laws and roadblocks that inhibit the usage of renewable energy with President-elect Yoon Suk-transition yeol’s team.
Samsung declined to answer questions, while the CDP, which is an environmental non-profit that brings together corporations interested in joining RE100, merely stated that an announcement would be made this year.
“Samsung Electronics informed us that it has informed its international investors that it will join and announce RE100 within this year,” said Kim Tae-han, who works as a senior researcher based at the CDP Korean committee.
Han Hwa-jin, a climate expert and outside director at Samsung, has been appointed as Yoon’s government’s environment minister.
The choice of Han’s successor on the board may influence the timeframe of Samsung’s RE100 announcement.
“All outside directors must be there and approve the announcement for Samsung to be legitimate,” said Lee Jong-oh, the Korea Sustainability Investing Forum director.
Samsung has long recognized the dangers of inactivity on climate change, saying that if it does not move to renewable energy, it might lose up to $20.6 billion (25.8 trillion won), or 20 percent, of its business-to-business products such as chips.
“To fulfill their objectives, our consumers expect that we make items utilizing 100 percent renewable energy. If these requests are not addressed, there is a clear risk that our sales would suffer “In 2021, Samsung wrote in a statement on CDP’s website.