POSCO

No leading practices were identified for this company.

POSCO’s 2050 Carbon Neutrality Roadmap integrates both short-term and long-term financial considerations, with periodic review and updates and some consideration of carbon pricing. The company conducts climate change scenario analysis based on the IEA NZE 2050 and TCP scenarios.

No leading practices were identified for this company.

No leading practices were identified for this company.

While POSCO discloses short- and long-term targets for its scope 1 and 2 emissions, it does not disclose concrete scope 3 emissions targets, thereby missing the substantial opportunity to cut down emissions by engaging more deeply with its clients and suppliers on decarbonisation.

Some measures included by the company in its 2050 Carbon Neutrality Roadmap are too generic and lack measurable, quantifiable elements.

POSCO does not publicly disclose its research and development (R&D) expenditure for the past three years. Additionally, there is a lack of quantitative data regarding the company’s investment in low-carbon technologies, particularly its investment in both mature- and non-mature climate technologies.

POSCO’s supplier engagement strategy is still in its early stages. It centres on collecting climate-related information from suppliers, implementing environmental management policies, establishing environmental goals, providing certification plans for eco-friendly products and services, greenhouse gas accounting, air pollution management and use of renewable energy. The company should strengthen this strategy by incorporating quantified emissions reduction targets for its suppliers in the future.

POSCO aims to decrease carbon emissions by 30% by 2035 and by 50% by 2040, compared to its average emissions from 2017 to 2019. The company’s ultimate goal is to achieve carbon neutrality by 2050.

POSCO discloses its Investment Plan for Achieving Carbon Neutrality from 2026 to 2050, which provides moderate details on the company’s planned changes in production technology, timelines and required investments.

Between 2018 and 2022, the emissions intensity of POSCO’s steel-producing operations only decreased by 0.3% per year, falling short of the company’s short-term climate targets.

Currently, POSCO utilises residual amounts of renewable energy in its operations. The company is engaged in renewable energy certificate purchases and is developing strategies for renewable energy acquisition, including investments in solar photovoltaic power generation on company-owned land.

POSCO’s investment plan for achieving carbon neutrality includes the operation of an EAF facility with a 2.5 million tonne capacity by 2026 and an HBI production facility in Australia with a 2 million tonne capacity by 2028.

The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.
No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups.
No relevant disclosure was found of the company’s assessment of employment dislocation risks. The company has a commitment to reskill and upskill workers and stakeholders affected by the low-carbon transition and discloses the actions it takes in this regard. For instance, it offers learning courses for staff as well as an educational programme that targets young scientists who value the environment. However, no relevant disclosure was found of a process for identifying skills gaps for workers and affected stakeholders in the context of the transition.

No relevant disclosure was found to show if the company identifies the impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to their social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights. It also discloses details on its human rights due diligence, including how it works to identify human rights risks and impacts, as well as the results of its human rights risks assessments. Additionally, the company has a grievance mechanism available to workers and external stakeholders where human rights issues can be raised. However, the company can further enhance disclosure of its human rights due diligence process and engagement with affected stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment from its business relationships. Additionally, the company sets targets for the representation of women in the organisation, and it discloses the share of women in its workforce by employee category. The company can, however, strengthen its disclosure on all these topics, as well as other key decent work issues, such as collective bargaining and working hours.

The company has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. Additionally, the company states that it does not make political contributions and it discloses the amount of corporate income tax it pays in each relevant jurisdiction. However, the company can strengthen its disclosure on these as well as other ethical business topics, such as personal data protection.