Biodiversity

    To minimize the impact on ecosystems due to business operations and fulfill responsibilities regarding restoration, POSCO conducts various activities for the conservation and restoration of marine ecosystems. These activities include water pollution surveys, marine forest creation, and marine waste collection. Additionally, POSCO has established a biodiversity policy and is implementing it across major domestic and international worksites.

    Support for TNFD

    POSCO acknowledges international agreements on biodiversity and land protection, including TNFD1) guidelines. To ensure biodiversity conservation and minimize operational impact, POSCO independently conducts ecological surveys in areas surrounding its worksites.

    In the marine areas near Pohang and Gwangyang Steelworks, POSCO performs water and sediment pollution surveys. In addition, when required, third-party agencies carry out specialized biodiversity impact assessments. For new project developments, POSCO identifies nearby protected areas and endangered species, utilizing this data to create, implement, and monitor biodiversity management plans for each project

    POSCO refrains from undertaking projects in biodiversity protection areas or wetlands. In instances where it must offset or restore nature affected by its operations, POSCO evaluates the application of Best Available Techniques (BAT) and best practices.

    1)TNFD (Taskforce on Nature-related Financial Disclosures): A consortium advocating for the quantification and disclosure of the financial impact on companies from risks and opportunities related to natural capital (such as flora and fauna, air, water, and minerals).

    In June 2022, POSCO became a member of the TNFD forum, publicly affirming its commitment to biodiversity management. Moving forward, we will set biodiversity management metrics, proactively manage risks, and engage in activities to prevent and enhance biodiversity loss based on the TNFD framework. By integrating these efforts into our business operations, we aim to strengthen our ability to address natural capital issues and continuously minimize our impact on biodiversity.

    Biodiversity Assessment and Management

    POSCO employs guidelines from international organizations for biodiversity assessment and management to establish and implement a comprehensive biodiversity risk assessment and management system. This system encompasses analyzing our dependency on and impact on natural capital, conducting status surveys of biodiversity around our worksites, evaluating biodiversity risks, implementing prevention and mitigation measures, and carrying out post-management monitoring.
    Biodiversity Risk Analysis Procedure
    STEP1 STEP2 STEP3 STEP4 STEP5
    Industry-specific biodiversity dependency/impact analysis Identification of biodiversity status near worksites Biodiversity risk assessment near worksites Exploration of mitigation measures for worksites Biodiversity monitoring
    Activities The ENCORE2) tool is utilized to assess the biodiversity dependency and impact specific to the steel industry Analyses are conducted to determine the presence of IUCN-designated endangered species, the distribution of UNESCO World Heritage Sites, and the habitat presence of threatened species near worksites. The WWF (World Wildlife Fund for Nature) Biodiversity Risk Filter (BRF) is used to perform detailed biodiversity risk analyses for each domestic worksite. Mitigation activities are explored and implemented at domestic and international worksites to minimize biodiversity risks Monitoring, Reporting, and Review.
    Tools ENCORE IUCN WWF BRF TNFD LEAP TNFD LEAP

    2) A tool used to analyze the types of natural capital that businesses depend on for their operations, as well as the impact of industry-specific economic activities on environmental change.

    Natural Capital Dependency and Impact of the Steel Industry
    Following the ENCORE guidelines, a preliminary analysis was performed to evaluate the natural capital dependency and impact of the steel industry. Among the 21 metrics for analyzing ecosystem service dependency, 5 metrics, including surface water and groundwater, were identified as relevant to the steel industry. The analysis revealed that the steel industry’s natural capital dependency is rated below average. However, the impact on ecosystems, particularly regarding water usage, was significant across all three evaluated areas.
    Analysis about Biodiversity dependency and impact
    Category Metric Level
    Dependency Water flow maintenance Medium
    Mass stabilization and erosion control Low
    Surface water Medium
    Ground water Medium
    Climate regulation Very Low
    Impact Water use High
    GHG emission High
    Solid waste High
    Source: ENCORE(Exploring Nature Capital Opportunities, Risks and Exposure)
    Status of Endangered Species Near worksites
    Utilizing the International Union for Conservation of Nature (IUCN) Red List, we have assessed the presence of ecological endangered species within a 5km radius of both the Pohang Steelworks and Gwangyang Steelworks. The IUCN Red List categories of vulnerable, endangered, and critically endangered are indicative of threatened ecosystems. Our findings highlight that fish represent a substantial proportion of threatened species in the vicinity of our Pohang and Gwangyang worksites.
    Number of Threatened Species (IUCN Red List)
    Category Vulnerable Endangered Critically Endangered Total
    Pohang 31 18 1 50
    Gwangyang 41 25 5 71

    Category Mammals Birds Reptiles Amphibians Fish Mollusks Plants Fungi Others
    Pohang 5 13 2 0 23 1 4 1 1
    Gwangyang 5 17 2 1 39 1 3 1 2
    Source : IUCN(International Union for Conservation of Nature).
                   IUCN Red List of Threatened Species: Summary and Statistics (Threatened species in each major group by country)

    Using the World Wide Fund for Nature (WWF) Biodiversity Risk Filter (BRF), POSCO has identified biodiversity risks related to the steel industry and the surrounding areas of the Pohang and Gwangyang steelworks. The analysis is based on Pressures on Biodiversity3) and Environmental Factors4) to provide a comprehensive assessment of local ecosystem health and human impact.

    The analysis revealed that significant pressures on biodiversity include environmental pollution, and the most critical environmental risk factor identified is the decline in rare species.

    3)These metrics represent the condition of the ecosystem, encompassing the overall risk to air, water, and soil ecosystems. A lower risk score signifies a healthier ecosystem with greater resilience.

    4)Metrics measuring the negative impact on local environmental assets. A lower risk score indicates a reduced likelihood of impact on biodiversity.

    Industrial and Regional Biodiversity Risk Factors
    Very Low
    Low
    Moderate
    High
    Very High
    Biodiversity Risk Risk Level (Regional Basis)
    Pohang Gwangyang
    Pressures on Biodiversity Changes in land, freshwater, and marine use
    Deforestation
    Invasive species
    Pollution
    Environmental Factors Protected/conservation areas
    Key biodiversity areas
    Ecosystem health
    Rarity*
    * Endemism of mammals, amphibians, and birds
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      Pressures on Biodiversity

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      Environmental Factors

    Source : WWF(World Wild Fund For Nature) Biodiversity Risk Filte

    To evaluate the impact on marine ecosystems near our worksites, we conducted a survey focusing on key lower-tier species within the ecosystem pyramid, including zooplankton and phytoplankton, attached macroalgae, and benthic animals.

    The survey revealed a total of 178 species in the Pohang area and 168 species in the Gwangyang area.

    Ecological Survey of Areas Near Steelworks (2023)
    Region Phytoplankton Zooplankton Attached Macroalgae Benthic Animals
    Pohang 30 22 51 75
    Gwangyang 36 28 55 49
    Risk and Mitigation of Environmental Impact Factors
    A thorough analysis of environmental impact factors (including GHG emissions, air quality, water quality, and waste) was performed to assess potential risks. The primary risks identified were the acceleration of climate change and odor generation. In response, various activities have been initiated to mitigate these risks and minimize the environmental impact, particularly focusing on elements with significant biodiversity impact.
    Analysis of Key Operations by Environmental impact factor
    Worksites Environmental Impact Risk Factors Status Near worksites
    Region Area GHG Emissions Air Quality Water Quality Waste Presence of UNESCO World Heritage Sites within 5 km of worksites
    Pohang 9.5㎢ Acceleration of climate change, changes in species distribution and habitat Destruction of flora and fauna ecosystems, reduction in biodiversity Destruction of aquatic habitats, water scarcity, reduction in biodiversity Waste recycling regulations, disposal limitations N/A
    Gwangyang 21.4㎢ N/A
    Biodiversity negative impact mitigation
    Category Impact and Risks Key Mitigation Activities
    Biodiversity Impact Mitigation GHG Emissions
    • Increase the use of pellets and HBI (Hot Briquetted Iron) in blast furnace raw materials to decrease fossil fuel consumption in the production of sintered ore
    • Harness off-gases from steel processes as fuel for both steel operations and power generation
    Air Quality
    • Form a voluntary agreement with the Ministry of Environment to mitigate high fine dust concentration from December to March
    • Implement ‘dust collector breathers’ in all eight blast furnaces, reducing pollutants in residual gases by approximately 90%
    Water Quality and Scarcity
    • Recycle rainwater, yard, and road sprinkling water through rainwater treatment facilities
    • Produce 30,000 tons/day of desalinated water and repurpose 80,000 tons/day of urban sewage as industrial water
    Waste
    • Use silicate fertilizer, a steel by-product, to prevent soil acidification and lower GHG (methane) emissions by about 14%
    • Recycle slag obtained through the magnetic separation process as a substitute for scrap metal, and use non-magnetic slag as a substitute for natural aggregate
    Risk Prevention at Business Stages
    We are committed to sustainable business practices by evaluating the impact on biodiversity during all stages of business, including new investments, business expansions, and plant construction.
    New Investments

    To effectively manage investment risks, our regulations require the inclusion of an ESG checklist in all investment review reports. This ESG checklist covers various factors affecting biodiversity, including pollutant emissions and water resources.

    Business Expansion

    For large-scale investments and new plant constructions, we are required to conduct environmental impact assessments and collect community feedback. POSCO is working towards carbon neutrality by transitioning to hydrogen reduction ironmaking and plans to establish a hydrogen reduction ironmaking plant in Pohang. We are currently performing an environmental impact assessment for the new hydrogen reduction ironmaking site within a 5 km radius before starting construction. This assessment includes nine evaluation criteria5).

    5)Marine water quality, marine sediments, marine ecosystem, meteorology, air quality, odor, noise/vibration, hygiene/public health, soil

    Biodiversity Conservation and Enhancement

    For the past decade, POSCO has been using slag from the steel production process to create ‘Triton artificial reefs’ as part of our efforts to restore marine ecosystems and recycle by-products. These reefs are placed in marine desertification zones to establish sea forests, significantly contributing to the restoration of marine ecosystems.

    Triton artificial reefs, abundant in essential minerals like calcium and iron, are highly effective in promoting seaweed growth and preventing marine desertification. To date, we have deployed over 7,000 Triton artificial reefs along Korea’s coastal areas affected by marine desertification. In 2023, we launched a regional cooperation project to restore the marine ecosystem near our steelworks by creating a Triton sea forest in Pohang. Post-monitoring efforts in the sea forests of Ulleungdo and Pohang revealed an increase in ecological species, demonstrating significant benefits for biodiversity conservation.

    POSCO’s initiative to restore the marine ecosystem by creating Triton Sea Forests has gained international acclaim. In 2023, POSCO was honored as the first Asian company to win the Environmental Innovation Category at the International Corporate Citizenship Conference (ICCC).

    In April 2024, POSCO will enter into an agreement with the Ministry of Oceans and Fisheries to create sea forests aimed at enhancing Blue Carbon6)and fisheries resources, fostering a sustainable marine environment. The plan includes establishing new sea forests in Mopo-ri and Gupyeong 1-ri within the year.

    6)Carbon absorbed by coastal ecosystems (such as seagrasses, seaweeds, mangrove forests, and wetlands)

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      nstallation of Triton artificial reefs

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      Triton artificial reefs fostering a sea forest

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      Signing ceremony for the public-private partnership to establish sea forests

    Ulleungdo Sea Forest Seaweed Biomass Changes
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