Samsung Electronics to invest over $5 billion as it targets net zero emissions by 2050

Samsung's customers and investors, with their own carbon neutral goals, have long called for clearer environmental targets from Samsung

Samsung Electronics will invest over 7 trillion won ($5.02 billion) by 2030 as part of sweeping environmental initiatives aimed at making the company carbon neutral by 2050, the world's largest chip and mobile maker said on Thursday.

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The tech giant will spend the money on research and development for technology aimed at filtering out greenhouse gases and capturing carbon dioxide generated during chip production, and is seeking to make its devices business carbon neutral earlier, by 2030, said Kim Soo-jin, Samsung's head of ESG strategy group. It also plans to boost the recycling of resources such as lithium and plastic.

"These activities are to eventually meet demand from our customers ... so that we raise interest in our products," said Kim. "There are costs, but we will try to forge a business opportunity."

Samsung said it joined a group of global corporations committed to 100% renewable energy called RE100, following in the footsteps of global peers such as Apple, TSMC, and Intel.

South Korea also aims to achieve net zero emissions by 2050 but this is challenging for a country with significant heavy industry including shipbuilding and steel, analysts say.

The country relies on coal and gas for over 60% of its electricity generation, while renewables are only used for 6% of its electricity output, according to industry ministry data.