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SEPI*, Environmental Management Standards for Sustainable Future

* Semiconductor Environmental
Performance Index

Samsung Semiconductor provides strict and specific standards for environmental performance that are optimized for semiconductor companiesindustry

Environmental management of This is an image of an enlarged part of the water management site from above. A person wearing safety goggles looks diagonally to the left and the image is enlarged focusing on the left eye. the semiconductor industry This is an image of an enlarged part of the water management site from above. A person wearing safety goggles looks diagonally to the left and the image is enlarged focusing on the left eye. Sun shines through the trees. and Samsung Semiconductor’s environmental efforts index, SEPI

Samsung Semiconductor’s Semiconductor Environmental Performance Index (SEPI) that is tailored to various environmental efforts for semiconductor companies

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 presents Semiconductor Environmental Performance Index (SEPI) for the industry, and for semiconductor companies that are confused about different evaluation standards

Clients, investors, stakeholders
Semiconductor industry
ESG/ environmental evaluation system
too many
Demands
too many
Guides
Samsung Semiconductor presents Semiconductor Environmental Performance Index (SEPI) for the industry

Samsung Semiconductor sets the standards for environmental management practices of semiconductor companies with SEPI

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.

SEPI
principles

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SEPI
evaluation system

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What experts say about 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.

  • Samsung Electronics SEPI Review Committee Byung-ok Ahn, Professor of Convergence Engineering, Hoseo University

    “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

  • Samsung Electronics SEPI Review Committee Seung-jick Yoo, Professor of Environmental and Climate Change Studies, Sookmyung Women's 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

  • Samsung Electronics SEPI Review Committee Ki-hyun Ahn, Vice President of the Korea Semiconductor Industry Association

    “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

  • Samsung Electronics SEPI Review Committee Eric Jeon, Environment & Sustainability Manager of UL Korea

    “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

  • Samsung Electronics SEPI Review Committee Jung-nam Kim, Partner at Samjong KPMG, ESG & Strategy

    “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

Samsung Semiconductor’s
Green Efforts

Eco-friendly activities

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

Eco-friendly progress

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.

Samsung Semiconductor anticipates eco-friendly growth and better performance of the semiconductor.

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.

  • Environmental evaluation indicators
    Five principles of SEPI

    Main considerations

    Evaluation areas
    • Assess the main environmental factors of the entire value chain

      A management system of each stage from
      pre-production to production to use

      Greenhouse gas, industrial water, waste, and chemicals emissions status

    • Assess low-power, high-performance semiconductor production capacity

      Effort and performance of technological innovations

      Environmental management system

      Governance, Goal setting and etc.

    Evaluation methods
    • By the disclosed data

      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.

    • By setting the most optimized method for each category

      Qualitative/ quantitative indicators with a 5-point scale

      Weighted scores for each area leading to the total points

    Five principles of SEPI

    • 1 Assess the semiconductor industry’s contribution to cleantech

      Low-power, high-performance semiconductor supply efforts

    • 2 Assess all areas of environmental management

      Each stage of pre-production, production, use → Eco-friendly performance of the entire value chain

    • 3 Assess the main environmental factors

      Greenhouse gas, industrial water, waste, and chemicals

    • 4 Develop a semiconductor characteristics index

      Technological standards and PFC emissions status, etc.

    • 5 Consult disclosed annual data

      Sustainability reports, annual reports, etc.

      Other disclosed data, information from specialized agencies, etc.

    SEPI establishes and adheres to five principles in assessing companies’ environmental activities.

    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.

  • Strict and systematic SEPI evaluation indicators

    • 4 areas
    • 6 categories
    • 32 indicators
    40%

    Semiconductor industry’s contribution to cleantech

    • Semiconductor’s eco-friendly contribution

      (40%)

      4 areas Semiconductor’s eco-friendly contribution(40%)
      6 categories
      32 indicators
      ① Contribution to cleantech (30%)

      What are the companies’ activities and performance for the production of low-power, high-performance semiconductors?

      Patent

      Facilities investment amount and proportion

      Level of technological advancement

      ②Environmental management
      system (10%)

      Are environmental issues managed methodically and systematically at a company-wide level?

      Governance

      Goal setting and achievements

      Risk/ opportunity management

    60%

    Assessment of all areas of environmental management

    • Pre-production stage

      Environmental management in the supply chain

      (20%)

      4 areas Pre-production stage - Environmental management in the supply chain(20%)
      6 categories
      32 indicators
      ③Environmental management in the supply chain (20%)

      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 stage

      On-site environmentally friendly achievements

      (40%)

      4 areas Production stage - On-site environmentally friendly achievements(40%)
      6 categories
      32 indicators
      ④Greenhouse gas/ energy (24%)

      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)

      ⑤Circular economy (16%)

      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

      Chemical management

    • Use stage

      User environment benefits

      (5%)

      4 areas Use stage - User environment benefits(5%)
      6 categories
      32 indicators
      ⑥Eco-friendly level of products (5%)

      What are the environmentally friendly achievements when using semiconductor products?

      Eco-friendly product certification

      Low-power, high-performance semiconductor greenhouse gas emissions reduction level

    SEPI systematically evaluates semiconductors’ contribution to cleantech and environmental management in 4 areas, 6 categories, and 32 indicators.

    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.

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