Climate Change Data

POSCO INTERNATIONAL CORPORATION

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1,917 tCO2e (non-consolidated); 848,074 tCO2e (Shwe Project and major subsidiaries)
Scope 1 Emissions:316 tCO2e (non-consolidated); 800,313 tCO2e (Shwe Project and major subsidiaries)
Scope 2 Emissions:1,602 tCO2e (non-consolidated); 47,761 tCO2e (Shwe Project and major subsidiaries)
Renewable Energy Share:0%
Total Energy Consumption:43,941 GJ (non-consolidated); 3,876,377 GJ (Shwe Project and major subsidiaries)
Water Consumption:166,760 tons (non-consolidated); 1,941,450 tons (Shwe Project and major subsidiaries)
Waste Generated:322 tons (non-consolidated); 648,342 tons (Shwe Project and major subsidiaries)
Carbon Intensity:0.01 tCO2e/KRW 100 million (non-consolidated)

ESG Focus Areas

  • Climate and Environmental Impact
  • Employee Value Enhancement
  • Sustainable Supply Chain
  • Health & Safety
  • Ethics/Fair Trade
  • Information Security
  • Social Impact
  • Governance

Environmental Achievements

  • Achieved ISO 14001 certification at 6 worksites.
  • Reduced NOx emissions by 22 tons at POSCO Mobility Solution's STS Division.
  • Reached 95% waste recycling rate at POSCO Mobility Solution.
  • Planted 200 mangrove seedlings in Indonesia.
  • Created 2,272 acres of mangrove forests in Myanmar.

Social Achievements

  • Expanded recruitment-aligned internships by 100%.
  • Improved maternity protection program.
  • Provided 1:1 learning mentoring to 16 children in Incheon.
  • Provided healthcare services to over 1,869 patients in Indonesia.
  • Supported foreign language learning for young adults in Uzbekistan.

Governance Achievements

  • Formed the ESG Committee under the Board of Directors.
  • Achieved AA rating in Fair Trade Commission assessment.
  • Established a supply chain ESG management system.

Climate Goals & Targets

Long-term Goals:
  • Achieve Net-Zero emissions by 2050.
Medium-term Goals:
  • Reach 2.0GW in offshore wind power capacity.
  • Reach production capacity of 7 million units of core traction parts for green mobility.
Short-term Goals:
  • Reduce wastewater generation by 10% at POSCO Mobility Solution.
  • Achieve zero high-consequence injuries between 2023 and 2025.

Environmental Challenges

  • Increasing raw material costs and sales impact from reinforced environmental regulations.
  • Increasing physical risks at operational sites due to climate change.
  • Reinforced global human rights regulations.
  • Uncertainties in global trading due to international conflicts.
  • Reinforced import regulations such as the Carbon Border Adjustment Mechanism.
Mitigation Strategies
  • Expanding renewable energy and green business opportunities.
  • Establishing a Group-level value chain and expanding green business.
  • Improving competitiveness via global talent employment and training.
  • Establishing a supply chain ESG management system.
  • Diversifying supply chains and developing emergency scenarios.

Supply Chain Management

Supplier Audits: 151 companies in 2022 (POSCO Mobility Solution only)

Responsible Procurement
  • Supplier Code of Conduct
  • ESG risk screening system
  • Conflict Minerals Management Guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoons, floods, droughts, and other abnormal climate events
  • Long-term sea level rises
Transition Risks
  • Increasing raw material costs
  • Reinforced environmental regulations
  • Carbon Border Adjustment Mechanism
Opportunities
  • Expanding renewable energy and green business
  • Increasing LNG demand
  • Growing demand for low-carbon steel products

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB

Certifications: ISO 14001, ISO 45001, ISO 27001, RSPO

Third-party Assurance: DNV Business Assurance Korea, Ltd.

Sustainable Products & Innovation

  • Green steel materials for wind power/PV energy and green mobility
  • Rechargeable battery raw materials
  • Bioplastics

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:4,218,148 tCO2e/year (2023)
Scope 1 Emissions:4,155,769 tCO2e/year (2023)
Scope 2 Emissions:62,383 tCO2e/year (2023)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:0% (2023)
Total Energy Consumption:1,391,560 GJ/year (2023)
Water Consumption:1,773,118 tons/year (2023)
Waste Generated:654,817 tons/year (2023)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate change mitigation
  • Expanded resource circularity for products
  • Energy Use
  • Health and safety management
  • Workplace environment and working conditions
  • Communication with workers and guarantee of labor rights
  • Anti-corruption and anti-bribery
  • Fair trade practices

Environmental Achievements

  • Increased percentage of ISO 14001 certified worksites from 100% in 2022 to 60% in 2023 (Note: discrepancy in reporting, further clarification needed)
  • Sales of green products and services reached KRW 386,487 million, representing 9.9% of total sales.
  • Environmental investment cost of KRW 2,352 million and Environmental CapEx of KRW 1,188 million.

Social Achievements

  • Implemented flexible work program, resulting in 1,197 employees under flexible work program in 2023.
  • Increased employee training hours from 50,707 in 2022 to 63,612 in 2023.
  • OHSMS certification (ISO 45001/OHSAS 18001/KOSHA-MS) achieved 100% across worksites in 2023.

Governance Achievements

  • Established ESG Committee under the Board of Directors to oversee ESG policies and issues.
  • Established ESG Council, a management council led by the CEO, for decision-making in each ESG field.
  • Completed 7,090 hours of anti-corruption training for 1,661 employees in 2023.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Data limitations and inconsistencies across reporting periods due to the merger with POSCO Energy in 2023.
  • Supply chain disruptions and risks related to conflict minerals and human rights abuses.
  • Challenges in achieving carbon neutrality goals.
Mitigation Strategies
  • Implemented robust supply chain management policies and procedures, including supplier audits and responsible procurement practices.
  • Established environmental management systems (EMS) to assess and respond to environmental risks.
  • Developed concrete plans to mitigate greenhouse gas emissions and achieve carbon neutral goals.

Supply Chain Management

Supplier Audits: 60% (2023)

Responsible Procurement
  • Green procurement policy
  • Supplier ESG checklist
  • NDPE (No Deforestation, Peat, Exploitation) policy
  • Compliance with POSCO Group’s ‘Special Terms and Conditions for Ethical Practice’

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, UN Global Compact

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 27001, LEED Green Building Certification, Family-Friendly Certification, Health-Friendly Company Certification, GAFTA Arbitration Compliance Program(CP), ISCC EU, ISCC PLUS, RSPO, ISPO, GMP+, Authorized Economic Operator(AEO), RINA, RS(Russian Maritime Register of Shipping), ACRS, SQ, BIS, JIS H-Grade, KR(Korean Register of Shipping), Steel Structure Manufacturer Certification

Third-party Assurance: DNV Business Assurance Korea, Ltd.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed