Sustainability Report

정책

Policy

Environmental Management Guidelines

POSCO is taking proactive measures to address environmental issues such as climate change, fine dust, waste, and chemical substances. In this regard, we have developed comprehensive environmental guidelines as required by our internal regulations, internal guidelines, and environmental management policy.

To minimize the negative environmental impacts arising from our business and production processes, we are committed to actively promoting environmental management and extending these efforts to our supply chain and partner companies. We first established the ‘Environmental Manual’ in January 2010, and in June 2019, we updated and currently adhere to the ‘POSCO Group Integrated Environmental and Energy Management Policy.

Additionally, we have obtained ISO 14001 and 50001 certifications, the international standards for environmental management, and we undergo annual certification audits to maintain these standards
We also adhere to environmental regulations applicable to our domestic and international worksites, striving for continuous improvement in environmental performance through systematic environmental impact monitoring and pollution prevention measures. Furthermore, we are committed to minimizing the negative environmental impact of our business and production processes, extending these efforts throughout our supply chain and partner companies

Our Position on Biodiversity

POSCO acknowledges the significance of ecosystem restoration and biodiversity preservation, and this commitment is incorporated into our Code of Ethics Practical Guidelines. We assess the potential impact of our business activities on the biodiversity of neighboring areas and implement measures to mitigate any adverse effects.

New Projects

When undertaking new projects, including facility expansion and upgrades, we aim to prevent and minimize factors that threaten biodiversity, and restore and offset any damage when necessary.
Moreover, we will make efforts to mitigate biodiversity losses and conduct assessments to monitor any potential impact. This position will apply not only to our worksites but also to our primary and secondary supply chains.
We acknowledge international conventions related to the protection of biodiversity and land (such as the Convention on Biological Diversity, the Ramsar Convention, and the Convention Concerning the Protection of the World Cultural and Natural Heritage), along with IUCN1) guidelines (including the IUCN Protected Area Categories Guidelines and the IUCN Corporate Biodiversity Performance Planning and Monitoring Guidelines). We will adhere to the national and local legal requirements at worksites within the regions covered by these conventions. Should our operations lead to damage, reduction, or degradation in protected areas governed by international conventions, we will restrict access to the worksite and reassess our actions. At worksites that include natural and critical habitats, we will work to prevent and minimize net loss to biodiversity, consider plan modifications, and explore alternative business locations
Before launching new projects, the company performs environmental impact assessments as required by relevant regulations, identifying and mitigating threats to biodiversity, including all endangered species. The company ensures that its business activities do not adversely affect biodiversity values, such as ecosystems and critical habitats. Furthermore, land use decisions are made in consultation with local residents and communities.
1) IUCN: International Union for Conservation of Nature and Natural Resources

Worksite Management

For worksites that encompass critical habitats related to biodiversity, we are committed to preventing any net loss and striving to achieve a net positive impact on biodiversity.

At our largest worksites, Pohang Steelworks and Gwangyang Steelworks, we will assess the pollution levels of marine water quality and sediments surrounding the steelworks, alongside actively conducting monitoring activities to enhance the local environment. When necessary, we will collaborate with specialized agencies to carry out professional assessments on the impact on biodiversity.

The company identifies protected areas, regions with significant biodiversity value, and endangered species in the vicinity of business and project development sites. This information is crucial for developing, implementing, and monitoring biodiversity management plans for each project. When conservation areas or protected zones that meet international standards, such as World Heritage sites or Ramsar wetlands, are established within, around, or adjacent to the activity areas of existing worksites, we ensure that our operations do not negatively affect the value of these protected zones.

By-products Recycling

POSCO actively identifies and recycles steel and marine by-products that can substitute for natural resources. For instance, POSCO has been continuously promoting the Sea Forest Creation Project aimed at marine ecosystem restoration. Triton® artificial reefs, made from steel slag, are rich in minerals like iron and calcium, which enhance marine plankton growth and seaweed spore attachment, effectively aiding in the restoration of marine ecosystems. Since 2010, POSCO has installed over 7,000 Triton reefs in domestic waters. Furthermore, the Clean Ocean Volunteer Group, a specialized volunteer group of POSCO employees, conducts around 60 underwater cleaning activities annually to help preserve the marine ecosystem. POSCO systematically supports its employees in biodiversity-related volunteer efforts.

Protection of Endangered Species

To protect endangered species, we will consider supporting local, national, and global biodiversity protection initiatives. The company is committed to safeguarding endangered species near its worksites, such as one mammal species (otter) and 11 bird species (whooper swan, tundra swan, bean goose, brant goose, kestrel, Eurasian sparrowhawk, common buzzard, osprey, Eurasian eagle-owl, Saunders’s gull, and far eastern curlew), and conserving the surrounding ecosystem. Our efforts include establishing alternative habitats, avoiding construction during the wintering period, and installing movable temporary soundproof panels. Additionally, we implement various environmental education programs to enhance the understanding of biodiversity protection among employees and relevant stakeholders.

Our Position on No Deforestation

Overview

POSCO is dedicated to preventing deforestation and will continue to implement policies aimed at protecting the planet by increasing the recycling of industrial by-products and expanding investments in reducing GHG emissions. Through sustainable environmental policies, the company aims to achieve ‘Zero Net Deforestation’ by 2050, including a commitment to reforestation as a means of compensation.
  • The company will not establish any future worksites that destroy forests and will work to restore green spaces, including forests, upon the conclusion of existing projects.
  • Within our worksites, we will increase the recycling of by-products (98.6% as of 2023) and expand investments in reducing GHG emissions.
  • We will collaborate with specialized agencies to create forests and green spaces near our worksites when necessary.
  • To minimize the negative environmental impact of our business and production processes, we will implement various activities and strive to extend these efforts to our supply chain and business partners.

Monitoring

To address forest risks, the company will develop and implement forest creation and greening plans within our worksites and will monitor related outcomes through environmental impact assessments. Additionally, we will regularly evaluate and improve our suppliers’ forest protection activities through Supplier Relationship Management (SRM) assessments. When necessary, we will allocate budgets for collaboration with specialized agencies and enhance our internal capabilities.

Forest Restoration and Greening Results

POSCO is committed to creating a healthy natural ecosystem in the vicinity of its worksites and within local communities. Recently, POSCO invested approximately 44 billion KRW in the Pohang Steelworks and around 28 billion KRW in the Gwangyang Steelworks to enhance greening and achieve zero deforestation. Consequently, the Pohang and Gwangyang Steelworks now maintain over 6.9 million plantings, covering approximately 22% of their site areas, and plant over 30,000 trees annually. Additionally, POSCO collaborates with the Korea Forest Service to promote forest restoration and address climate change.

Our Approach to Environmental Protection and Energy Conservation

To help build a sustainable, low-carbon and eco-friendly economy, POSCO Group adopts the following practices:
  • Operate an integrated system of environmental protection and energy conservation programs that meets both ISO 14001 and ISO 50001 requirements. Comply with applicable laws and regulations
  • Continuously improve the system through goal-setting and resource allocation
  • Reduce greenhouse gas emissions and minimize climate impact by increasing the use of clean energy and introducing low-carbon processes
  • Reduce the environmental impact of products throughout their entire lifecycles by making efficient use of natural resources and by-products, and developing products with low carbon footprint
  • Minimize pollutant emissions by applying eco-friendly production processes and best available techniques for pollution abatement
  • Regularly review environmental protection and energy conservation activities, report outcomes to management and consult with stakeholders

Worksite Environmental Management

POSCO manages environmental aspects at our worksites by integrating environmental goals into the KPIs of the environmental department and its executives. We establish detailed environmental standards for specific areas such as air, waste, and water quality, and implement environmental management processes that include education/training, guideline development and management, and internal audits. Furthermore, we adopt eco-friendly production processes and best available prevention technologies to minimize pollutant emissions from our worksites.

Production Operation and Maintenance

POSCO actively monitors and manages the environmental impact resulting from the operation and maintenance of production facilities in order to drive continuous improvement. Additionally, we have developed an environmental management manual for each production process to ensure compliance with environmental regulations and promote environmental improvements, making it readily available for reference during operations.

Waste Management

POSCO oversees the entire process from waste generation to final disposal through the establishment of comprehensive waste management guidelines. These guidelines encompass the scope of work, organizations and responsibilities, waste sorting and storage facilities, and procedures to address environmental pollution incidents.

Product Development Services and Logistics

POSCO manages the process from the generation stage of waste to the final disposal stage by establishing waste management guidelines. The guidelines include the scope of work, organization and authority, waste separation and collection and storage facilities, and measures to be taken in case of environmental pollution.

Supplier Selection and Supplier ESG Evaluation

POSCO has developed the ‘POSCO Supplier Code of Conduct,’ which is aligned with global ESG standards such as the UN Global Compact 10 Principles and the Responsible Business Alliance (RBA). Suppliers are mandated to adhere to this code. Moreover, POSCO integrates ESG evaluation criteria into the annual supplier performance assessments to proactively manage environmental risks throughout the supply chain.

New Projects and Mergers and Acquisitions

During the review process of new businesses and investments, POSCO evaluates the quantitative and qualitative expected effects of ESG, along with investment risks and corresponding response measures. To minimize risks associated with new ventures, POSCO develops business environmental management plans and conducts environmental impact assessments. Additionally, in the context of mergers and acquisitions, POSCO performs due diligence to identify ESG risks, including environmental risks, and implements proactive measures.

Operation of the Environmental Management System

Since obtaining ISO 14001 certification, the international standard for environmental management, in 1996, POSCO has undergone annual compliance verification by third-party verification agencies. Additionally, twice a year, internal verifications are conducted under the supervision of the Ministry of Environment. The results of these verifications are reported to top management and are incorporated into the development of environmental strategies and goals

Environmental Product Declaration (EPD) Certification

POSCO has become the first in the domestic steel industry to establish a Life Cycle Inventory Database (LCI DB) that encompasses the environmental impact of steel products throughout their entire life cycle. Utilizing this LCI information, POSCO is advancing the Environmental Product Declaration (EPD) certification for its World Premium (WP)4) products on both domestic and international fronts
4) World Premium (WP): Unique POSCO products that are either in development or have been developed for the first time globally

Policy for Reducing Air Pollutant Emissions

POSCO has set internal targets that exceed regulatory standards and systematically manages environmental performance to reduce air pollutants.

Water Resource Policy

POSCO is dedicated to managing water resources by optimizing water usage and expanding wastewater recycling initiatives. KPIs include reducing surface water usage and maintaining discharge water quality standards. To minimize wastewater discharge, POSCO is increasing the recycling rate of wastewater from its processes. Additionally, to pre-assess risks in the water supply chain, POSCO monitors national water resource policies, predicts regional regulatory changes, and develops response scenarios. To address water shortages in local communities and ensure a reliable supply of industrial water, POSCO operates seawater desalination facilities and reuses treated wastewater from sewage treatment facilities.