On the 19th, global cosmetics ODM company Cosmax announced that it has entered into a Power Purchase Agreement (PPA) with Hanwha Solutions' Q Cells division aimed at achieving carbon neutrality by 2050. This initiative is part of a comprehensive strategy that includes 32 reduction tasks expected to decrease carbon emissions by 50% by 2035 compared to 2024 levels.

Beginning in July, following approval from its ESG committee, Cosmax will secure approximately 10.4 GWh of renewable energy annually for its key domestic production sites through this PPA. The agreement will supply renewable energy to four plants located in Hwaseong and Pyeongtaek, marking a significant realignment of energy sourcing strategy towards sustainability.

This contract is not merely a shift in energy procurement; it serves as a cornerstone for transforming Cosmax's domestic production capabilities into a more sustainable framework. By pivoting its energy usage model around renewable sources, Cosmax anticipates responding more effectively to the global carbon management and ESG compliance mandates of its international clientele.

In addition to the external PPA, Cosmax's strategy also includes expanding its own renewable energy generation capabilities. Recently, the company has been scaling up its solar power infrastructure, planning to add 499.2 kW of capacity on the roof of Pyeongtaek Plant No. 1, targeting operational launch in Q4 2026, which could generate an additional 638 MWh of renewable energy annually.

Currently, Cosmax has established solar self-generation facilities across six domestic and six international sites, with plans to further enhance the use of renewable energy and refine management systems across all global production hubs. This dual approach reinforces Cosmax's market positioning as a leader in sustainable practices.

Moreover, Cosmax is concurrently developing a Life Cycle Assessment (LCA) system to evaluate environmental impacts throughout the entire lifecycle of its products, from raw material sourcing to production, distribution, usage, and disposal. This system will provide a crucial basis for compliance with global regulations and the achievement of carbon neutrality goals.

Previously, Cosmax completed a Product Carbon Footprint (PCF) calculation process and aims to finalize its LCA framework this year. By integrating renewable energy transition with comprehensive product environmental impact management, Cosmax seeks to elevate its climate change response capabilities in alignment with market demands.

A representative from Cosmax stated that the direct solar PPA contract marks a significant transformation of supply chain management at a global level, beyond merely addressing climate change. The company's commitment to expanding renewable energy, enhancing energy efficiency, refining environmental impact management, and strengthening supply chain responsiveness positions it as a reliable partner in the global market.