Cosmax Partners with Hanwha Solutions for Direct Solar PPA

Cosmax announced on the 19th that it has signed a Direct Power Purchase Agreement (PPA) with Hanwha Solutions' Qcells division, aimed at achieving carbon neutrality by 2050. This PPA is part of a broader strategy where the company plans to reduce carbon emissions by 50% by 2035, compared to 2024 levels, through a total of 32 reduction initiatives.

The direct PPA enables Cosmax to directly purchase renewable energy from producers, establishing a stable supply chain essential for meeting both carbon neutrality and RE100 goals. This move is expected to create a reliable foundation for long-term procurement and reinforce the company’s commitments towards sustainable energy.

With the final approval from its ESG committee, Cosmax will begin sourcing approximately 10.4 GWh of renewable energy annually from key domestic production sites starting in July. This Direct PPA involves four major facilities located in Hwaseong and Pyeongtaek, allowing Cosmax to cover around 40% of its total power consumption at these sites with renewable energy. Such a shift underscores the brand's commitment to sustainability while also meeting the increasing demand for decarbonized supply chains from global clients.

This transition is not merely a change in procurement methods; it represents a strategic pivot towards a more sustainable operational framework. The reconfiguration of energy use to prioritize renewable sources is anticipated to enhance Cosmax’s capabilities in carbon management, aligning with ESG standards that are increasingly becoming non-negotiable in the global market.

In addition to external PPA procurement, Cosmax is simultaneously expanding its in-house renewable energy generation capabilities. Recent expansions at the Pyeongtaek Factory 1 include the installation of additional solar power systems, targeting an installation capacity of 499.2 kW, with operations expected to commence in the fourth quarter of 2026. This initiative is projected to produce an additional 638 MWh of renewable energy annually, reinforcing the company's commitment to bolstering its renewable energy production capabilities.

Currently, Cosmax operates solar self-generation facilities at all six domestic and six international sites, totaling twelve global locations. The company plans to continuously enhance its renewable energy adoption and management systems across all manufacturing sites, signifying a robust approach to sustainability.

Moreover, Cosmax is concurrently working on establishing a Life Cycle Assessment (LCA) framework, which is critical for quantifying environmental impact across the entire product lifecycle—from raw material procurement to production, distribution, usage, and disposal. Successful implementation of LCA is pivotal for adhering to global regulations and fulfilling carbon neutrality commitments.

Having completed the Product Carbon Footprint (PCF) calculation process last year, Cosmax aims to finalize the LCA system this year. This dual focus on renewable energy transition and environmental impact assessment will enable the company to meet global market demands for climate action with increased efficacy.

A Cosmax representative stated, “The signing of the Direct PPA goes beyond mere climate change declarations; it signifies a transformation of the entire supply chain management system to align with global standards.” By enhancing renewable energy usage, improving energy efficiency, advancing product environmental management systems, and strengthening supply chain responsiveness, Cosmax positions itself as a trusted partner in the global beauty market.