Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economy
• Environment
• Society

Environmental Achievements

• Reduced water use by 4,546,000t at Incheon Works resulting in cost reductions of 4 billion won in 2007
• Nitrogen discharges at the Incheon Works fell in 2007, 57.7% from the level in 2001
• Capture and disposal of over 99% of the dust produced at steel mills
• 90% of total byproducts were recycled and used as fill or roadbase or to make refractory cement or bricks
• Energy savings of 12,498 TOE in 2007

Social Achievements

• 60,475 hours of employee volunteer service
• 219,210,000 won in matching grant awards
• Established a Corporate Social Responsibility Committee in April 2008

Governance Achievements

• Adopted a Corporate Social Responsibility Resolution in April 2008
• Established an online ethics hotline (Cyber Auditor’s Office)
• Operates a fair trade compliance program since 2002

Climate Goals & Targets

Environmental Challenges

• Decreased byproduct recycling rate in 2007 due to increased production of harder-to-recycle materials
• Moderate increase in air pollutant emissions in 2007 due to frequent changes in reheating furnace operation conditions

Mitigation Strategies

• Seeking partnerships to recycle 100% of steelmaking dust
• Investing in upgrading dust collection facilities
• Addressing the issue of fluctuating operation conditions of reheating furnaces

Supply Chain Management

Responsible Procurement

• Ethical procurement management system
• Integrated Procurement System
• Steel Scrap Procurement System

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001

Third-party Assurance: Institute for Industrial Policy Studies (IPS)

Sustainable Products & Innovation

• Unpainted weathering steel
• Parallel flange channels
• Rolled asymmetric beams

Awards & Recognition

• Silver Award (LACP Vision Awards 2007)

Environmental Metrics

ESG Focus Areas

• Economic Value
• Environmental Management
• Social Contribution
• Partnerships

Environmental Achievements

• Completion of the third blast furnace, enhancing production capacity and efficiency.
• World's first eco-friendly steel mill with an enclosed raw material process system.
• 98% byproduct recycling rate.
• ISO 50001 certification for energy management system.
• Dangjin Works designated as an eco-industrial park.

Social Achievements

• Home Repairs for Hope project weatherized 130 houses, reducing CO2 emissions and energy bills.
• KRW 10.1 billion spent on social contribution activities.
• 112,536 employee volunteer hours.
• Win-win partnership programs with suppliers, providing KRW 46.8 billion in financial aid.

Governance Achievements

• Transparent corporate governance practices.
• A rating in CP ratings by the Korea Fair Trade Commission.
• Active investor relations (IR) activities.

Climate Goals & Targets

Environmental Challenges

• Market oversupply in the global steel industry.
• Fluctuating commodity prices.
• Risk of natural disasters.
• Labor disputes.

Mitigation Strategies

• Established risk management system.
• Sensitivity analysis tests to control financial risks.
• Strategic risk aversion through interest rate adjustments.
• Proactive safety management practices.

Supply Chain Management

Supplier Audits: 87 companies signed win-win partnership agreements

Responsible Procurement

• Win-win partnership agreements
• Fair transaction practices
• Financial aid to suppliers
• Technology R&D support
• HRD support

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Market oversupply
• Fluctuating commodity prices

Opportunities

• Development of energy-efficient products
• Resource circulation business structure

Reporting Standards

Frameworks Used: GRI Guidelines, ISO 26000, UNGC

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Business Institute for Sustainable Development (BISD)

Sustainable Products & Innovation

• Automobile steel sheets
• High-strength steel sheets
• Quake-resistant steel products

Awards & Recognition

• DJSI Asia-Pacific (5 consecutive years)
• Global CDP Best Performers in Climate Change Response Awards
• INCHAM Awards (Incheon Works)

Environmental Metrics

ESG Focus Areas

• Technological Competitiveness
• Transparent Management Activities
• Reducing Environmental Impacts
• Response to Climate Change
• Creating Employee Values
• Strengthening Occupational Safety and Health
• Pursuing Mutual Growth
• Social Contribution Activities

Environmental Achievements

• Reduced CO2 emissions by 1.44 million tons annually utilizing waste gas from blast furnace as fuel for saprophagous gas power plant.
• Acquired VCS international certification for GHG reduction.
• Established ‘Green Network’ with Heat Transportation Demonstration Project, recycling waste heat and reducing GHG emissions.
• 98.1% wastewater recycling rate.
• 17% byproduct recycling rate.

Social Achievements

• Enlisted to DJSI Asia Pacific for six consecutive years.
• Successfully completed construction of Myanmar Community Center, providing education and vocational training.
• Implemented energy-efficient housing construction for 140 households, reducing energy consumption and GHG emissions.
• Operated ‘Home Repairs for Hope’ project, reducing energy requirement by 76.28kWh/㎡a and improving energy efficiency by 12.4%.
• Selected as Best Family Friendly Management by Korea’s Ministry of Gender Equality & Family.

Governance Achievements

• Acquired Grade AA (highest grade) from Korea Fair Trade Commission for fair transactions.
• Established and operated Anti-corruption Compliance Program.
• Maintained ISO 50001 (energy management system) certification.

Climate Goals & Targets

Environmental Challenges

• Excess supply in the steel market.
• Stringent global market competition.
• Increased utility expenses.
• Climate change regulations.
• Safety incidents during transitional phase of modifying safety system.
• Financial risks associated with foreign exchange and interest rates.
• Worsening steel market conditions.

Mitigation Strategies

• Increased investments in R&D for new technologies and products.
• Strengthened partnerships with clients through technical cooperation and joint projects.
• Implemented energy management system (ISO 50001) and energy reduction initiatives.
• Established company-wide Emission Trading Scheme taskforce team.
• Reorganized risk management system to preemptively manage and respond to potential risk factors.
• Implemented comprehensive improvements on safety management system and safety consciousness.
• Operated mutual growth programs with suppliers to enhance competitiveness.

Supply Chain Management

Responsible Procurement

• Fair transaction compliance program.
• Mutual growth programs.
• Online recruitment system for suppliers.
• Financial aid for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Increased natural disasters

Transition Risks

• Climate change regulations
• Emission Trading Scheme

Opportunities

• Development of energy-efficient products
• Heat transportation technology

Reporting Standards

Frameworks Used: GRI G4 Guidelines, AA1000AS (2008)

Certifications: ISO 14001, ISO 50001, OHSAS 18001, VCS

Third-party Assurance: DNV GL, LRQA

Sustainable Products & Innovation

• Ultra-high-strength steel for automobiles
• Earthquake resistance steel materials
• Heat transportation technology

Awards & Recognition

• DJSI Asia Pacific listing (6 consecutive years)
• CDP Sector Winners (2014)
• Best Family Friendly Management

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced NOx emissions from 8,776 tons in 2019 to 5,167 tons in 2020
• Reduced SOx emissions from 11,300 tons in 2019 to 6,148 tons in 2020
• Reduced dust emissions from 712 tons in 2019 to 577 tons in 2020
• Increased recycling rate from 97.5% in 2019 to 98.3% in 2020

Social Achievements

• Invested 12,994 million KRW in social contributions in 2018
• Provided 424,469 hours of employee training in 2018
• Maintained an employee turnover rate below 5% for three years

Governance Achievements

• Held 10 board meetings in 2018, addressing 29 issues
• No environmental law violations reported in 2018, 2019, and 2020

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Occupational Health and Safety
• Human Rights
• Social Contribution
• Governance
• Ethical Management
• Supply Chain Management

Environmental Achievements

• Implemented GHG reduction strategies resulting in a reduction of emissions.
• Introduced CDQ equipment in Corks Plant and gas cleaning equipment in Sintering Machine 3 to reduce air pollutants.
• Improved efficiency of shaft furnace and electricity path, implemented a heat recovery system.
• Increased cases of LDG by-product gas formed in circuits.

Social Achievements

• Provided aid for low-income households and welfare centers to improve energy efficiency.
• Drafted optimized energy reduction solutions by supplier and provided high-efficiency equipment.
• Employee volunteer activities.
• Social contribution activities to overcome COVID-19.

Governance Achievements

• Established a Transparency Management Committee under the BOD to make ESG-related decisions.
• Implemented processes for stakeholder engagement and materiality assessment.
• Established and implemented plans for each material topic to appropriately respond to stakeholders' expectations.

Climate Goals & Targets

Environmental Challenges

• Reducing GHG emissions in line with government targets.
• Managing risks associated with climate change and carbon credit transactions.
• Ensuring data quality and reliability in reporting.

Mitigation Strategies

• Established a portfolio to ease the burden of GHG reduction and is taking actions accordingly.
• Implemented internal verification process to manage data quality and reliability.
• Investing KRW 340 billion to introduce CDQ equipment and KRW 410 billion to introduce gas cleaning equipment.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Carbon credit risk

Opportunities

• Secure overseas carbon credits

Reporting Standards

Frameworks Used: GRI Standards Core Option, AA1000 AS v3 (2020), AA1000 AP (2018), SASB, TCFD, UNGC, UN SDGs

Certifications: ISO 45001 (Dangjin, Incheon, Pohang, Suncheon Plants), KOSHA 18001 (Ulsan Plant)

Third-party Assurance: BSI Group Korea, Lloyd’s Register Quality Assurance Ltd.

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 16
• Goal 17