The Korea Export-Import Bank has partnered with Samsung Electronics to support the transition of its overseas partners to renewable energy. This initiative is seen as a new collaborative model for large corporations, their partners, and policy finance institutions to establish a foundation for carbon reduction.
On June 3, the Export-Import Bank announced that it has signed a memorandum of understanding with Samsung Electronics and Partron, a key partner of Samsung, to enhance supply chain environmental, social, and governance (ESG) capabilities and promote cooperative growth.
The agreement includes provisions for the Export-Import Bank to support consulting costs related to joint purchasing of renewable energy power purchase agreements (PPAs) for small and medium-sized partners of Samsung Electronics operating in Vietnam. Eleven small and medium-sized partners will work together to negotiate contracts for renewable energy purchases, with an energy consulting firm assisting throughout the process.
Samsung Electronics will identify and recommend partners to participate in the consulting initiative and will support their ESG management activities. Partron, representing Samsung's partners with a production subsidiary in Vietnam, has committed to ensuring the active participation and compliance of its partners in this initiative.
As global ESG regulations tighten, including the European Union's Carbon Border Adjustment Mechanism (CBAM) and Corporate Sustainability Reporting Directive (CSRD), the burden of securing renewable energy for small and medium-sized enterprises expanding overseas has increased. In response, Samsung Electronics is sharing its expertise in renewable energy procurement, and the partners in Vietnam have formed a joint purchasing consortium. The Export-Import Bank is providing support for related consulting costs, establishing a collaborative model for carbon reduction among large corporations, partners, and policy finance institutions.
Ahn Jong-hyuk, Executive Director of the Export-Import Bank, stated, "The ability of small and medium-sized partners to transition to eco-friendly practices is now a core prerequisite for our companies' global competitiveness. We will actively support the ESG transition of small and medium-sized enterprises."
* This article has been translated by AI.
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