Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Health
• Environmental Management
• Shared Growth
• Corporate Governance
• Ethical Management
• Compliance
• Stakeholder Engagement
• Human Rights
• Social Contribution

Environmental Achievements

• Recycled 5,748 tons and 8,208 tons of waste refractories in 2019 and 2020 respectively.
• Reduced GHG emissions from lime burning facilities by using CO2-containing waste gas for neutralization treatment of alkaline wastewater.
• Saved energy costs of KRW 141 million and reduced GHG emissions of 448 tons annually by replacing city gas with waste heat of tunnel kiln.
• Obtained Circular Resource Certification for fine-grained limestone and graphite power.
• Installed solar panels with 90.72kW power generation capacity on the roof of Anode Materials Plant #2.
• Participated in the “voluntary energy efficiency target system”.

Social Achievements

• Established a sports team for the disabled.
• Launched P&O Chemical Co., Ltd., a joint venture with OCI.
• Donated KRW 100 million to the Pohang City Center for the Disabled and Gwangyang City Center for the Disabled.
• Installed solar LED safety signs in 10 school zones.
• Donated wells to Songdo Village.
• Operated the Food Station to support daily necessities for vulnerable people.
• Conducted various employee volunteer activities.

Governance Achievements

• Changed company name to POSCO Chemical.
• Acquired POSCO ESM.
• Moved to the KOSPI market.
• Implemented a Clean POSCO Chemical System.
• Operated an Ethics Helper System.
• Implemented a Compliance Support Officer system.
• Established a risk management system.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the Korea-Japan trade dispute.
• Global competition in the secondary battery materials market.
• GHG emissions from lime burning process.
• Waste refractory disposal.
• Environmental regulations.
• Information security risks.

Mitigation Strategies

• Developed alternative sourcing strategies for raw materials.
• Expanded production capacity of cathode and anode materials.
• Developed technologies to reduce GHG emissions and improve energy efficiency.
• Developed waste refractory recycling technologies.
• Strengthened environmental management organization and implemented ISO 14001.
• Implemented information protection policy and established an Information Protection Council.

Supply Chain Management

Supplier Audits: Annual performance evaluation of subcontractors

Responsible Procurement

• POSCO Group Supplier Code of Conduct
• ESG-based procurement
• Responsible minerals management policy
• Procurement from certified refineries

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and technologies

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949

Third-party Assurance: Korea Management Registrar (KMR)

UN Sustainable Development Goals

• Goal 6
• Goal 2
• Goal 3
• Goal 7
• Goal 4
• Goal 9
• Goal 13
• Goal 5
• Goal 12
• Goal 14
• Goal 8
• Goal 16
• Goal 17

Various activities aimed at achieving the SDGs

Sustainable Products & Innovation

• High-purity hydrogen peroxide
• High-nickel NCMA cathode materials
• Artificial graphite anode materials
• Energy-saving COG purifying technology

Awards & Recognition

• Energy Champion certification from the Korea Energy Agency
• Excellent Company in Korea-EU Emission Trading Project
• Citation from Fair Trade Commission
• Excellent company in fair disclosure

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Obtained ISO 14001 certification for all company facilities
• Established an environmental management system (EMS) to assess and respond to environmental risks
• Efforts to reduce greenhouse gas emissions by reducing dependence on fossil raw materials, improving energy efficiency, and developing and using renewable energy

Social Achievements

• Established a responsible minerals policy and business process based on OECD Due Diligence Guidance
• Implemented a Diversity, Equity, and Inclusion policy to prevent discrimination and harassment
• Established a Stakeholder Engagement Policy to actively listen to stakeholder needs and opinions

Governance Achievements

• Established a Corporate Governance Charter to promote transparent, sound, responsible, and professional management
• Implemented a Board Independence and Diversity Policy to ensure objective and reasonable decisions
• Implemented Anti-Corruption Compliance Guidelines to enforce global anti-corruption laws and standards

Climate Goals & Targets

Environmental Challenges

• Potential forest destruction in POSCO FUTURE M’s overall business activities
• Human rights risks in the supply chain (forced labor, child labor)
• Environmental risks associated with mineral procurement

Mitigation Strategies

• Established a No Deforestation Policy
• Implemented a Responsible Minerals Procurement Policy with due diligence and third-party assurance
• Established grievance mechanisms and communication channels with stakeholders

Supply Chain Management

Supplier Audits: Annual supplier information surveys (96% response rate in 2022)

Responsible Procurement

• POSCO Group Supplier Code of Conduct
• Green Procurement Policy
• Responsible Minerals Procurement Policy

Climate-Related Risks & Opportunities

Opportunities

• Development of low-carbon, eco-friendly, and new and renewable energy products

Reporting Standards

Frameworks Used: TCFD, OECD Due Diligence Guidance, RMI (Responsible Minerals Initiative)

Certifications: ISO 14001

Third-party Assurance: RMI RMAP, Third-party institutions

Sustainable Products & Innovation

• Low-carbon, eco-friendly, and new and renewable energy products