Samsung Electronics Vietnam boosts climate strategy with expanded renewable energy procurement

In a significant step toward enhancing its sustainability initiatives, Samsung Electronics Vietnam is set to expand its procurement of renewable energy, following a new governmental decree issued on July 3. This decree, concerning the Direct Power Purchase Agreement (DPPA), allows enterprises to purchase renewable energy directly from private producers, bypassing intermediaries like the state-owned Vietnam Electricity (EVN).

Until now, enterprises in Vietnam have relied on smaller-scale solutions such as rooftop solar panels or the purchase of renewable energy certificates (RECs) to meet their green energy needs. The newly implemented DPPA marks a pivotal change, enabling companies like Samsung Electronics Vietnam to engage directly with private renewable energy producers on a larger scale, a move that could significantly bolster their climate action efforts.

Samsung Electronics has been at the forefront of advocating for the DPPA system, working alongside various stakeholders, including the Vietnamese government and civil society organizations, since discussions first began in 2019. The company has not only emphasized the urgency of implementing such procurement mechanisms to meet net zero carbon emissions goals but has also provided technical advice to ensure the stable implementation of these systems.

Furthering its commitment to sustainable practices, Samsung has actively participated in dialogues through the Asia Clean Energy Coalition (ACEC), collaborating with other renewable energy buyers, sellers, and financiers. This collaboration aims to strategically influence energy policy across key Asian markets, including Vietnam, to facilitate a broader adoption of renewable energy solutions.

Looking ahead, Samsung Electronics Vietnam, under the leadership of Executive Vice President Joo Ho Choi, General Director of the Samsung Vietnam Complex, plans to leverage the DPPA to engage with large-scale renewable energy producers. “Through the DPPA, we plan to get in touch with large-scale renewable energy producers proportionate to the size of operations at Samsung Electronics Vietnam and make competitive purchases of renewable energy,” said Choi. This initiative is expected to not only advance Vietnam’s renewable energy infrastructure but also strengthen Samsung’s commitment to environmental stewardship.

Samsung Electronics Vietnam’s proactive approach to expanding its renewable energy procurement under the new DPPA decree is a commendable step towards achieving its sustainability goals. By setting a precedent for large-scale renewable energy purchases, Samsung not only supports Vietnam’s climate action plans but also sets an example for other corporations in the region to follow. This move could potentially catalyze a shift towards more sustainable industrial practices across Asia, contributing significantly to the global efforts against climate change.

With these strategic initiatives, Samsung Electronics Vietnam is positioning itself as a leader in corporate sustainability, driving forward the transition to a greener economy in Vietnam and setting a benchmark for environmental responsibility in the corporate world.