Samsung Electronics ranks in top five globally among corporations responding to climate change

SEOUL, SOUTH KOREA: Samsung Electronics Co. Ltd was selected for the Carbon Disclosure Leadership Index (CDLI) for the second consecutive year, moving into a tie for fourth place in the global index after being ranked No. 10 in 2009.

The index highlights the constituent companies within the FTSE Global Equity Index Series (Global 500) which have displayed the most professional approach to corporate governance in respect of climate change disclosure practices.

Samsung was the highest-ranked Asian company on the CDLI and the highest of four selected from the Information Technology category. Samsung was also one of a select group of companies selected both for the CDLI and the CDP’s new Carbon Performance Leadership Index (CPLI), receiving a grade of “A.” The CPLI recognizes companies that are taking action to reduce global emissions and demonstrating strategy, governance and stakeholder communications in their CDP responses.

Samsung’s prominence in both rankings reflects the early success of its PlanetFirst initiative, a companywide commitment announced in July 2009 to become one of the world’s most environmentally friendly companies by 2013.

Under PlanetFirst, Samsung invested 1.01 trillion Korean won (about US$865 million) in environmentally friendly initiatives last year, including eco-friendly product development, greening of manufacturing sites and the development of energy-efficient technologies and environmentally friendly materials.

As of the first half of 2010, Samsung had reduced sales-normalized greenhouse gas emissions at its manufacturing facilities by 31 percent from 2008 levels. This puts Samsung on track to exceed its stated PlanetFirst goal of a 50 percent reduction by 2013.

Samsung also underwent a third-party verification of greenhouse gas emissions for its 39 global manufacturing sites, which was completed in July by Samil-PricewaterhouseCoopers. In addition, new Samsung products are 16 percent more energy efficient compared with 2008 levels, a reduction of 9.6 million tons of indirect carbon emissions from January 2009 through June 2010.

“We are pleased that Samsung commitment to sustainable business operations continues to be recognized in the CDP’s rankings and our improvement this year is a testament to that commitment,” said Park Sangbum, senior vice president and head of the CS & Environment Center. “Our investment and goals for 2013 are among the industry’s most ambitious and we strive every day to move closer to our goal of being one of the world’s most environmentally friendly companies in three years.”

The CDLI index, compiled by PricewaterhouseCoopers (PwC) on behalf of CDP, provides an evaluation tool for institutional investors. Only the top 10 percent of the 500 corporations selected using the FTSE standard are included in the CDLI, showing they have a significantly higher benchmark and a stronger commitment to preventing climate change. The new CDPL supplements the existing index by assessing companies for the action they are taking to reduce global emissions and mitigate the risks of climate change.

“Companies in this new Carbon Performance Leadership Index are demonstrating leadership in their commitment to manage greenhouse gas emissions,” said Paul Dickinson, chief executive of the Carbon Disclosure Project.

“Companies which manage and reduce their emissions, maximize business resilience and capitalize on opportunities, will be the best placed to succeed as we move towards a low carbon economy.”