POSCO E&C
Climate Impact & Sustainability Data (2020)
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Energy Efficiency
- Green Buildings
- Renewable Energy
- Clean Transportation
- Affordable Housing
- Employment Generation
- Socio-Economic Advancement and Empowerment
Environmental Achievements
- Improvement of the water supply system impacting 1 million Myanmar residents
- Reinforcement of a Vietnamese sewage treatment system increasing capacity by 328,000 tons per day
- Hydropower project in Indonesia increasing electricity access for around 430,000 persons
Social Achievements
- Living environment improvement project in Korea improving deteriorated/substandard housings, creating 5,678 new households
- Provided healthcare services, equipment and awareness education in Korea, Bangladesh, and Vietnam (total 3,387 beneficiaries)
- Provided construction career training to 160 trainees in Indonesia and Myanmar
Governance Achievements
- Established a Sustainable Financing Working Group (SFWG) comprised of members from Treasury, Finance, Risk Management, Sustainability and Technical Departments to manage project selection and evaluation
Climate Goals & Targets
Environmental Challenges
- Potential adverse environmental and social impacts from eligible projects (e.g., occupational health and safety, community relations, land use, biodiversity issues)
Mitigation Strategies
- All operations certified under ISO 14001 standard
- Integrated requirements of ISO 45001 standard into health and safety management system
- Established a four-step health and safety system aiming for ‘Zero Critical Accidents’
- Implemented Environmental Management System (POEMS) focusing on environment management, accident prevention, and GHG reduction
- Compliance with Act on the Improvement of Urban Areas and Residential Environments for redevelopment and reconstruction projects
- Exclusion of businesses or projects associated with fossil fuel, nuclear, weapons, and child/forced labor
Supply Chain Management
Responsible Procurement
- Prioritizing outstanding suppliers in safety
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient materials and equipment
Reporting Standards
Frameworks Used: Green Bond Principles 2018, Social Bond Principles 2020, Sustainability Bond Guidelines 2018, Green Loan Principles 2018
Certifications: ISO 14001, ISO 45001
Third-party Assurance: Sustainalytics
UN Sustainable Development Goals
- SDG 7
- SDG 8
- SDG 9
- SDG 10
- SDG 11
The projects funded by the bonds’ proceeds will facilitate a transition to a low-carbon economy and advance the socioeconomic development in South Korea.