South Korea’s Samsung Group said on Tuesday it would invest $5 billion over the next seven years to tackle environmental issues, including cutting emissions from its factories.
The world’s largest smartphone maker by shipments said the money would be used to upgrade factories and develop new technologies to reduce emissions of greenhouse gases.
The announcement is part of a wider plan by the conglomerate to reduce its environmental impact. It has also set a goal of sourcing all the electricity it uses from renewable sources by 2030.
“We will continue to find new ways to minimize our environmental footprint in every aspect of our business,” said Samsung Electronics chief executive Koh Dong-jin.
The move comes as Samsung faces criticism for its environmental record. Last year, a report by Greenpeace accused the company of using conflict minerals in its products and of not doing enough to recycle electronic waste.
Samsung has denied the accusations and said it is committed to sustainable practices.
The company’s announcement on Tuesday was welcomed by environmentalists.
“This is a big step forward for Samsung, and we hope other companies will follow suit,” said Greenpeace East Asia campaigner Jamie Henn.
“If Samsung aims to achieve its objective of using only renewable energy for its electricity needs by 2030, it is essential for the company to cut down emissions from its factories.”
Samsung’s investment will be used to upgrade factories and develop new technologies to reduce emissions of greenhouse gases.