Samsung SDI 2025 Sustainability Report: ESG Overview

Key highlights

• Total Scope 1+2 emissions fell 22% over two years to 1,291,974 tCO2e in 2024, driven primarily by a 29% reduction in Scope 2 (indirect) emissions as renewable energy procurement expanded.
• Renewable energy share reached 37% (1,064,643 MWh), up from 27% in 2023, against a RE100 interim target of 90% by 2030.
• All 12 production sites (domestic and overseas) achieved ZWTL Platinum certification, with a 95.2% waste recycling rate and 78 tonnes of waste to landfill.
• Water reuse rate rose from 23.0% in 2022 to 42.0% in 2024 (6.2 million tonnes reused), while total water withdrawal fell 7.5% year-on-year.
• Samsung SDI supplied all-solid-state battery A-samples to major customers in H2 2024, with mass production targeted for 2027. The next-generation ESS product (SBB 1.5) delivers 5.26 MWh in a 20ft container.
• The board maintained 57% independent director representation (4 of 7), with a dedicated Sustainability Management Committee of 4 independent directors meeting 4 times at 100% attendance.

1. Environmental

1.1 Climate and emissions

Samsung SDI’s combined Scope 1+2 emissions declined to 1,291,974 tCO2e in 2024, a 11.4% year-on-year reduction and 22.2% below 2022 levels. The decrease was driven primarily by Scope 2 (indirect emissions from purchased electricity), which fell 15% to 1,009,866 tCO2e as the company expanded renewable energy procurement. Scope 1 (direct) emissions rose to 282,108 tCO2e from 272,196 tCO2e.

By business segment, Mobile and Power Battery accounted for 598,370 tCO2e (46% of total Scope 1+2), followed by Automotive and ESS Battery at 392,307 tCO2e (30%), Electronic Materials at 173,017 tCO2e (13%), and R&D and others at 128,279 tCO2e (10%). All segments except R&D reduced their absolute emissions year-on-year.

Scope 3 emissions totaled 2,051,175 tCO2e in 2024, down 7% from 2,208,938 tCO2e in 2023. The company targets net-zero across all operations by 2050, with a 2030 interim target of 1,003,446 tCO2e for Scope 1+2. GHG emissions are verified by the Korean Standards Association under Reasonable Assurance for the parent company’s Scope 1+2 and Limited Assurance for subsidiaries and Scope 3.

1.2 Energy

Total energy consumption rose 1.8% to 34,131 TJ in 2024. Electricity accounted for 81% of consumption (27,682 TJ), followed by LNG (5,197 TJ) and steam (1,208 TJ). Overseas subsidiaries consumed 22,313 TJ (65% of the total), up from 21,101 TJ, while domestic operations consumed 11,818 TJ, down from 12,442 TJ.

Renewable energy share increased to 37% in 2024, up from 27% in 2023, with total renewable energy consumption of 1,064,643 MWh. Samsung SDI’s RE100 roadmap targets 90% renewable electricity by 2030 and 100% by 2050.

Energy intensity rose to 0.21 TJ per KRW 100M from 0.15 in 2023: energy consumption grew 1.8% while revenue fell over the same period.

1.3 Water and waste

Total water withdrawal declined 7.5% to 8,621,244 tonnes in 2024, continuing a downward trend from 9,551,318 tonnes in 2022. Water reuse increased to 6,237,361 tonnes (42.0% reuse rate), up from 30.9% in 2023 and 23.0% in 2022.

Total waste generated fell 9% to 159,442 tonnes, with the recycling rate rising to 95.2% from 94.7%. Waste to landfill fell to 78 tonnes combined (51 general + 27 hazardous), compared to 958 tonnes in 2023 and 3,988 tonnes in 2022. All 12 Samsung SDI sites hold ZWTL (Zero Waste to Landfill) Platinum certification, with the 2030 target set at 100% site certification and a 96.5% recycling rate.

Hazardous waste volumes fell 16% to 75,996 tonnes from 90,266 tonnes in the prior year. Effluent discharge was 3,326,676 tonnes.

2. Social

2.1 Workforce

Samsung SDI employed 30,664 people at the end of 2024, down 3.3% from 31,704 in 2023. The workforce was 75.8% male and 24.2% female. By region, Korea accounted for 12,872 employees (42%), Asia excluding Korea for 10,139 (33%), Europe for 6,430 (21%), and the Americas for 1,223 (4%). The European headcount declined from 7,875 to 6,430 during the year.

Female representation in management rose to 15.1% from 14.3%, while female executives were 8.5%, against 8.6% in 2023. Total turnover increased to 12.6% from 9.9%, with the overseas turnover rate rising to 21.1% from 15.3%. Domestic turnover was 2.5%, unchanged from 2023. Voluntary turnover declined to 7.2% from 8.5%.

Training investment grew to KRW 1,620,236 per employee (up 21%), with 91 hours of training per employee. Total recruitment was 3,844 people, down from 5,041 in 2023. Employees with disabilities numbered 233.

2.2 Health and safety

All Samsung SDI workplaces (100%) were audited for occupational health and safety and maintained ISO 45001 certification throughout 2024. Work-related injuries for employees totaled 5 cases, unchanged from 2023. There were zero employee fatalities in 2024, compared to 1 in 2023.

The employee accident rate was 0.016%, consistent with the prior year. The overseas accident rate was zero. The illness rate was 0% across all three reporting years. One in-house partner injury was recorded (zero fatalities). The total injury frequency rate was 0.0679%.

Hazardous chemicals consumed totaled 23,825 tonnes, up from 22,214 tonnes in 2023.

2.3 Supply chain

Samsung SDI managed 538 Tier 1 supply partners in 2024, with 287 key partners accounting for 90% of total procurement. ESG on-site audits were conducted at 70 companies (20 domestic, 50 overseas), up from 65 in 2023. Thirteen partners received corrective guidance; zero were terminated for negative impacts.

On responsible minerals sourcing, Samsung SDI maintains a policy covering 3TG (tin, tantalum, tungsten, gold), cobalt, nickel, lithium, manganese, graphite, and mica. Due diligence follows OECD guidelines with third-party RMI RMAP audits. Of 25 cobalt smelters in the supply chain, 23 (92%) are RMI-conformant. 3TG smelters are 100% RMAP-conformant.

The company’s Supplier Code of Conduct includes zero-tolerance policies on child labor and forced labor.

3. Governance

3.1 Board and oversight

Samsung SDI’s board comprises 7 directors: 3 executive and 4 independent (57% independence). Two of the four independent directors are female. Average board tenure is 3.2 years as of March 2025. The board met 7 times in 2024 with 99% average attendance.

The board operates through 6 subcommittees: Management, Audit, Internal Transaction, Compensation, Independent Director Candidates, and Sustainability Management. The Sustainability Management Committee consists of all 4 independent directors, is chaired by Mee Kyung Lee, and met 4 times in 2024 with 100% attendance.

3.2 Ethics and compliance

Samsung SDI disciplined 6 persons for corruption in 2024, down from 25 in 2023. Three partner companies were terminated for corruption (down from 11). Compliance audits totaled 22. Anti-corruption training reached 100% at headquarters and 99.9% overseas, covering approximately 29,621 employees (12,101 HQ + 17,520 overseas).

The company reported zero data privacy incidents, zero personal data leakages, and zero environmental fines across all three reporting years (2022-2024).

4. Innovation

The ESS product disclosed in the report is the SBB 1.5 next-generation utility battery, which uses high-nickel NCA cells to deliver 5.26 MWh in a standard 20ft container — a 37% increase in energy density over the prior generation. The system uses EDI (Electronic Direct Injection) thermal management. A UPS variant delivers 40% higher rack-level output, requires approximately 33% less space, and targets a 15-year battery life.

ESS fire safety features include a Direct Discharge suppression system using NOVEC suppressant, BMS monitoring, Active Venting, and a Deflagration Panel. Remote monitoring is planned for US models.

On all-solid-state battery technology, Samsung SDI uses an anode-free design with sulfide-based solid electrolyte. Proto samples were delivered to major customers in December 2023, followed by A-samples in H2 2024 with approximately 80% increased cell volume, doubled capacity, and approximately 25% improved energy density. Mass production is targeted for 2027.

Recycled metal usage reached 14% in 2024, up from 12% in 2023 and 8% in 2022, with a 2030 target of 26%. Four products have received Carbon Footprint Certification from the Carbon Trust (cumulative since 2022). ESS production volume was 22.2 million cells in 2024, up from 20.6 million in 2023.

5. Targets against reported performance

Scope 1+2 against the 2030 target. Scope 1+2 emissions were 1,291,974 tCO2e in 2024 against a 2030 interim target of 1,003,446 tCO2e, a gap of 288,528 tCO2e or 22% (derived). Scope 2 fell from 1,419,134 tCO2e in 2022 to 1,009,866 tCO2e in 2024, while Scope 1 rose from 242,116 tCO2e to 282,108 tCO2e over the same period.

Renewable energy against the RE100 target. Renewable share was 37% in 2024, up 10 percentage points from 27% in 2023, against a target of 90% by 2030 and 100% by 2050. Overseas subsidiaries account for 65% of total energy consumption.

Workforce. European headcount fell from 7,875 to 6,430, a decline of 18% (derived). Overseas turnover rose from 15.3% to 21.1% and domestic turnover was 2.5%. Total headcount fell 3.3% year-on-year, the only year-on-year reduction in the three-year data series.

Water. The water reuse rate rose from 23.0% in 2022 to 42.0% in 2024 and total water withdrawal fell from 9,551,318 tonnes to 8,621,244 tonnes over the same period. The report does not disclose a quantified water reduction target.

All-solid-state battery. A-samples were supplied to customers in H2 2024 and mass production is targeted for 2027. The report does not disclose the intended initial application (EV or ESS) or production capacity.

6. Sources