Global cosmetics ODM (research, development, and manufacturing) corporations COSMAX said on the 19th that it signed a direct power purchase agreement (PPA) for solar energy with Hanwha Solutions to achieve its 2050 carbon neutrality goal. Including this PPA, COSMAX plans to push a total of 32 reduction tasks to cut its carbon emissions by half by 2035 compared with 2024.
A direct PPA is a method in which a power user conducts a direct transaction of electricity with a renewable energy generator. Through long-term contracts, renewable energy can be secured stably, making it a key means of carrying out carbon neutrality and RE100.
After final approval by the ESG Committee, COSMAX will receive about 10.4 gigawatt-hours (GWh) of renewable energy annually for major domestic production hubs starting in July. The application targets four business sites in total, including the core domestic production hubs of the Hwaseong plant and the Pyeongtaek plant.
With this contract, COSMAX will replace about 40% of the total electricity used at its domestic plants with renewable energy. Based on six domestic plants including Hwaseong and Pyeongtaek, COSMAX has an annual production capacity of about 1 billion units.
Alongside procuring renewable energy through external PPAs, COSMAX is also pushing to expand its own power generation facilities. In line with the addition of Building 6 at Pyeongtaek Plant 1, it is expanding a 499.2-kilowatt (kW) rooftop solar power facility. The facility aims to begin generation in the fourth quarter of 2026 and is expected to produce about 638 megawatt-hours (MWh) of additional renewable energy annually.
It is steadily strengthening its in-house renewable energy production capacity at each production hub. COSMAX currently operates self-generation solar facilities at a total of 12 business sites worldwide, including six in Korea and six overseas. It plans to increase the use of renewable energy across its global production hubs and further advance its management system.
It is also building a product life cycle assessment (LCA) system. LCA is a system that quantifies resource and energy use and emissions across the entire product life cycle—from raw material sourcing to production, distribution, use, and disposal—to calculate environmental impact. It is used as a core management foundation that supports responses to global regulations and the implementation of carbon neutrality goals.
COSMAX completed its product carbon footprint (PCF) calculation process last year. This year, it plans to finish building an LCA system that covers the entire product life cycle. Through this, it aims to simultaneously improve its capacity for renewable energy transition and product-level environmental impact management and to further refine the climate change response system required by the global market.
A COSMAX official said, "The direct solar PPA is significant in that the management system across the supply chain is being transformed to a global level beyond a declaration to respond to climate change," and added, "We will continue to expand renewable energy, innovate energy efficiency, advance the product environmental impact management system, and strengthen supply chain responsiveness to establish ourselves as the most reliable partner in the global market."