POSCO

In 2012, POSCO joined the UN Global Compact, the world's largest voluntary sustainability initiative that helps companies align their strategies and operations with the Ten Principles in the areas of human rights, labor, environment and anti-corruption with the goal to enhance sustainability and corporate citizenship. In 2020, POSCO was named to the UN Global Compact LEAD company in recognition of its efforts to achieve the Sustainable Development Goals (SDGs). Learn more about our action to serve the community in the Sustainability Report.

In line with our sustainable business strategies, focused on stakeholder trust building, responsible operation and sustainable solutions, we are committed to delivering upon the UN Sustainable Development Goals. These goals represent a set of global pledges that bind the international community to sustainable development and growth. To achieve these objectives, we are undertaking a variety of campaigns and activities together with our suppliers, customers and the community.

We have participated in the Dow Jones Sustainability Index (DJSI) since 2003 and are currently named to the DJSI World Index, which tracks top-performing businesses in sustainable practices. We are the only steelmaker in the index that operate blast furnaces. In 2022, we have ranked Gold Class, the top grade in the Sustainability Yearbook.

In 2021, we obtained the highest attainable grade (A+) for our ESG practices from the Korea Corporate Governance Service (KCGS), a Korean ESG rating agency. Only 1% of over a thousand Korean businesses rated by the KCGS received the A+ rating, including POSCO, POSCO International and SK. The KCGS was established in 2002 to evaluate, research and investigate corporate governance and social responsibility of businesses.

Since 2003, we have participated in the Carbon Disclosure Project (CDP) to improve our performance in sustainable practices such as climate change mitigation and water security. In 2020, we scored B in climate change mitigation and water security.

We have preemptively prepared ourselves for opportunities and risks presented by climate change. In March 2020, we became the first Korean manufacturer to announce our support for the TCFD. In December 2020, we published the Climate Action Report aligned with the TCFD recommendations, placing ourselves at the forefront of transparent climate disclosure. We are also developing low-carbon process technologies like hydrogen-based ironmaking.

We transparently track and report sustainability performance indicators designed for the steel industry. Since 2020, our Corporate Citizenship Report has included material financial information required by the Standard for Steel and Iron Producers of the Sustainability Accounting Standards Board (SASB).

The Responsible Minerals Initiative (RMI) is a global organization that tracks the origin of minerals and monitors and certifies producers. To reinforce responsible sourcing of minerals and to improve supply chain management practices, in April 2020, POSCO became the first Korean steelmaker to join the RMI. POSCO is committed to addressing social and environmental problems in the global supply chain by forging alliances with a global network of RMI members.

POSCO joined ResponsibleSteel in January 2022 to advance its corporate citizenship system and to catch up to shifting global ESG trends. ResponsibleSteel is the first global initiative to develop ESG standards and certification programs for the steel industry. We plan to help create a sustainable future by aligning with the vision and mission of ResponsibleSteel and assisting our suppliers to introduce the initiative¡¯s principles into their practices. As part of these efforts, in October 2022, Pohang and Gwangyang Steelworks became the first Asian steelmaking operations to be
certified against ResponsibleSteel standards.