* Semiconductor Environmental
With semiconductors being used in more and more places, there is mounting pressure on semiconductor companies to implement environmental management practices.
However, it was confusing for semiconductor companies as domestic and foreign evaluation agencies had different evaluation standards that were not in line with the semiconductor industry’s specificity. Samsung Semiconductor has developed its own Semiconductor Environment Performance Index (SEPI) to provide a universal standard for environmental management and to reflect companies’ eco-friendly efforts and performance.
Samsung Semiconductor’s SEPI is set out to efficiently communicate our environmental efforts to all interested parties, from semiconductor experts, environmental certification organizations, and media outlets to our customers. As an industry leader, Samsung Semiconductor expects to execute environmental management in line with the semiconductor industry’s specificity through SEPI.
Let’s find out more about the focuses and principles of Samsung Semiconductor’s SEPI.
To secure SEPI's reliability, SEPI Review Committee is established to check the suitability of the evaluation standards.
To secure SEPI's reliability, Samsung Electronics established the SEPI Review Committee. Composed of five experts from academia, the semiconductor industry, and certification institutions, the committee checks the suitability of details and logic of SEPI, an environmental management performance indicator, in consideration of the nature of the semiconductor industry.
At a time when the semiconductor industry needs to change its overall perception of environmental management efforts and needs, the committee expects that SEPI will serve a better purpose to instigate a new beginning for the semiconductor industry. This is because SEPI makes it possible to have a strict and systematic internal evaluation within companies, and allows companies to accurately and efficiently communicate with stakeholders such as the government and consumers. For more details on the roles and implications of SEPI, here are some comments from the industry experts: Seung-jick Yoo, Professor of Environmental and Climate Change Studies, Sookmyung Women's University, Byung-ok Ahn, Professor of Convergence Engineering, Hoseo University, Eric Jeon, Environment & Sustainability Manager of UL Korea, Ki-hyun Ahn, Vice President of the Korea Semiconductor Industry Association, and Jung-nam Kim, Partner at Samjong KPMG, ESG & Strategy.
“SEPI can provide a direction for environmental management and play a key role in responding to external risks such as regulations and reputations.”
Byung-ok Ahn, Professor of Convergence Engineering, Hoseo University
“Under the current strong sanctions on climate change and carbon neutrality, semiconductor companies will be able to systematically manage their efforts and benefit from improvements.”
Seung-jick Yoo, Professor of Environmental and Climate Change Studies, Sookmyung Women's University
“SEPI is a good indicator that many companies vulnerable to environmental management can use to lower the risk of their business activities.”
Ki-hyun Ahn, Vice President of the Korea Semiconductor Industry Association
“SEPI is a milestone in environmental management that goes one step further. I hope that it will develop into an objective and comprehensive indicator in accordance with the nature of the semiconductor industry.”
Eric Jeon, Environment & Sustainability Manager of UL Korea
“In today’s environment where businesses are evaluated by a range of different organizations around the world, it is encouraging to see a company take the initiative and develop an environmental management performance indicator. Samsung’s SEPI serves as a good benchmark for companies within and outside the industry.”
Jung-nam Kim, Partner at Samjong KPMG, ESG & Strategy
Manufacturing high-performance, low-power chips to reduce greenhouse gas emissions
High-efficiency facilities and advanced technology for reducing energy use during production
Improved waste management and recycling to minimize environmental footprint
Environment-friendly product certifications
from Korea and abroad
(certified by Korea Environmental Industry Technology Institute under the Ministry of Environment)
Using 100% new and renewable energy overseas
Site certifications from the Carbon Trust (Carbon/Water/Waste)
The Semiconductor is a key contributor to Korea’s economic growth, and here at Samsung Semiconductor, we continue to make strides in reducing our carbon footprint throughout the value chain.
SEPI will exceed its role as an evaluation indicator of Samsung Semiconductor to set standards for stricter environmental management in the semiconductor industry. It will also serve as a medium to effectively communicate the green efforts of various stakeholders in the semiconductor industry, including Samsung Semiconductor and its partners. Furthermore, SEPI will become a guide for consumers in choosing a product and also for investors in assessing companies. We expect not only Samsung Electronics but also the semiconductor industry as a whole will adopt SEPI as a way to expand environmental management and achieve eco-friendly growth.
A management system of each stage from
pre-production to production to use
Greenhouse gas, industrial water, waste, and chemicals emissions status
Effort and performance of technological innovations
Environmental management system
Governance, Goal setting and etc.
Based on disclosed data such as SR reports, business reports and etc.
Utilize information from specialized agencies for technology and investment details
Patent office, associations, etc.
Qualitative/ quantitative indicators with a 5-point scale
Weighted scores for each area leading to the total points
Low-power, high-performance semiconductor supply efforts
Each stage of pre-production, production, use → Eco-friendly performance of the entire value chain
Greenhouse gas, industrial water, waste, and chemicals
Technological standards and PFC emissions status, etc.
Sustainability reports, annual reports, etc.
Other disclosed data, information from specialized agencies, etc.
SEPI evaluation areas are largely divided in two parts; the assessment of environmental factors of the entire value chain and the assessment of low-power, high-performance semiconductor production capacity. The evaluation methods are either by the disclosed data or by setting the most optimized method for each category.
Based on these considerations, the first principle is to evaluate the semiconductor industry’s contribution to cleantech, such as the progress made in developing low-power, high-performance semiconductors. The second principle is to evaluate eco-friendly performance in all areas related to environmental management, from the management system to each stage of the value chain. The third principle is to assess the main environmental factors, including greenhouse gas emissions, industrial water, waste, and chemicals. The fourth principle is to reflect semiconductor characteristics to evaluate technology levels and PFC emissions status. The fifth and final principle is to use publicly disclosed annual data, such as sustainability reports and business reports, for research, analysis, and evaluation.
Semiconductor industry’s contribution to cleantech
What are the companies’ activities and performance for the production of low-power, high-performance semiconductors?
Facilities investment amount and proportion
Level of technological advancement
Are environmental issues managed methodically and systematically at a company-wide level?
Goal setting and achievements
Risk/ opportunity management
Assessment of all areas of environmental management
Pre-production stageEnvironmental management in the supply chain
What are the companies’ management policies, activities, and performance for environmental management in the supply chain?
Environmental management policies
Environmental management evaluation systems
Environmental management cooperation/support
Environmental management status of the supply chain
Production stageOn-site environmentally friendly achievements
What is the result of greenhouse gas emissions and energy efficiency improvement efforts at the production stage?
Total greenhouse gas emissions
Renewable energy consumption
Original emissions/ improvement (separate from PFC)
What are the improvement and management efforts of industrial water, waste, and chemicals at the production stage?
Industrial water usage and recycling rate
Waste production amount and recycling rate
Use stageUser environment benefits
What are the environmentally friendly achievements when using semiconductor products?
Eco-friendly product certification
Low-power, high-performance semiconductor greenhouse gas emissions reduction level
The evaluation subjects are largely divided into two; main environmental management status for each stage of pre-production, production, and use of semiconductors and low-power, high-performance semiconductors production capacity. SEPI evaluates these subjects based on disclosed data and information from specialized agencies and assigns points according to weighted scores per indicator.
The areas of evaluation indicators are the semiconductors' contribution to green efforts, environmental management in the supply chain, on-site environmentally friendly achievements, and user environment benefits. For more detailed evaluation, these four areas are divided into 6 categories and 32 indicators. The weighted scores are based on different values assigned to each area and the ‘user environment benefits’ area is used as an additional indicator. Additional points are only assigned to companies that have offered information on the environmental impact of the end product. Samsung Electronics intends to strengthen its green efforts by setting standards for eco-friendly effects enabled by the use of Samsung semiconductor products and publicly disclosing its actual achievements.