Biodiversity
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).
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
Activities
Tools
| 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 |
| 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 |
| 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 |
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 |
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
| Biodiversity Risk | Risk Level (Regional Basis) | ||||
|---|---|---|---|---|---|
| Pohang | Gwangyang | ||||
| Pressures on Biodiversity | Changes in land, freshwater, and marine use |
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| Deforestation | |||||
| Invasive species | |||||
| Pollution | |||||
| Environmental Factors | Protected/conservation areas |
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| Key biodiversity areas | |||||
| Ecosystem health | |||||
| Rarity* | |||||
* Endemism of mammals, amphibians, and birds
Pressures on Biodiversity
Environmental Factors
WWF(World Wild Fund For Nature) Biodiversity Risk Filter
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 |
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| Air Quality |
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| Water Quality and Scarcity |
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| Waste |
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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.
- 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.
- 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
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)
Installation of Triton artificial reefs
Triton artificial reefs fostering a sea forest
Signing ceremony for the public-private
partnership to establish sea forests
Ulleungdo Sea Forest Seaweed Biomass Changes
