Cosmax to Source 40% of Domestic Factory Power from Renewable Energy

Cosmax, a leading cosmetics manufacturer, has partnered with Hanwha Solutions Q CELLS to secure eco-friendly power in pursuit of its goal of achieving carbon neutrality by 2050.
 
On May 19, Cosmax announced that it signed a Power Purchase Agreement (PPA) with Hanwha Q CELLS on May 18.
 
The direct PPA allows power users to trade electricity directly with renewable energy producers, providing companies with a stable foundation for achieving carbon neutrality and RE100 (100% renewable energy usage) through long-term contracts.
 
Under this agreement, Cosmax will receive approximately 10.4 GWh of renewable energy annually for its four key production sites in Hwaseong and Pyeongtaek starting in July, pending final approval from its Environmental, Social, and Governance (ESG) committee.
 
This initiative will enable Cosmax to meet about 40% of its total electricity consumption at domestic factories with renewable energy, significantly contributing to the production of K-beauty products powered by eco-friendly energy.
 
Cosmax aims to enhance its manufacturing competitiveness through this PPA, transitioning to a more sustainable framework while actively responding to the stringent carbon management and ESG standards of global clients.
 
In addition to external power procurement, the company is also expanding its own generation facilities. Currently, it operates solar power generation systems at 12 sites worldwide, including six in South Korea and six abroad.
 
Recently, with the expansion of its Pyeongtaek Plant No. 1, Cosmax is adding a solar power generation facility with a capacity of 499.2 kW, utilizing rooftop space. This facility is expected to be operational by the fourth quarter of 2026 and will produce approximately 638 MWh of renewable energy annually.
 
Furthermore, Cosmax is accelerating the establishment of a Life Cycle Assessment (LCA) system, which quantifies resource and energy use and emissions throughout the entire product life cycle, from raw material procurement to production, distribution, use, and disposal. This system is a key management foundation supporting compliance with global regulations and the achievement of carbon neutrality goals.
 
Last year, Cosmax completed its Product Carbon Footprint (PCF) calculation process and plans to finalize the LCA system covering the entire product life cycle this year.
 
Through these efforts, Cosmax aims to strengthen its capabilities in renewable energy transition and product-level environmental impact management, enhancing its climate change response system to meet global market demands. Cosmax received an integrated A rating in the ESG evaluation from the Korea ESG Standards Institute last year. The company has established a roadmap for carbon neutrality by 2050, focusing on expanding solar power facilities and enhancing its PCF management system.
 
A Cosmax representative stated, "We will continue to expand renewable energy, innovate energy efficiency, enhance our product environmental impact management system, and strengthen supply chain responsiveness to establish ourselves as a trusted partner in the global market."