2022 Communication on Progress

POSCO International Corporation

Published date

June 30, 2022

No. of questions

62

CEO Statement

Signed

  • Governance

    Policies and Responsibilities

    1. Does the Board / highest governance body or most senior executive of the company:

    Optional comment
    At POSCO INTERNATIONAL, work is underway to create the ESG Council in 2021 as a deliberative body on major ESG issues concerning the environment, climate change, and society in line with our company-wide ESG management strategy. Outcomes of discussions made on major agenda items through the ESG Council are reporting to the Management Committee. In particular, the Council enables us to identify the actual and potential financial impact brought by climate change on the Company and to establish governance in response from the long-term perspective to address climate-related issues in a more systemic manner.

    2. Does the company have a publicly stated commitment regarding the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a commitment within 2 years

    Yes, and the commitment is focused on our own operations

    Yes, and the commitment includes our own operations and the value chain

    Yes, and the commitment includes our own operations and the value chain along with communities and society

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Since we specified protection of human rights in our Code of Ethics in 2013, we have strengthened human rights management to uphold human rights and pursue diversity for our employees. By stipulating the UN's human rights management in our Code of Ethics in 2014, joining the UN Global Compact in 2019, and declaring the NDPE Policy in 2020, we have sincerely committed ourselves to advancing human rights, labor rights and decent work in accordance with international standards across all our worksites. In addition, we announced the NDPE Policy encompasses our implementation plans and outcomes of environmental conservation and management, protection and respect for human rights in order to fulfill its social responsibility and obligation in the country where we operate. We also have a ‘Special Clause for the Practice of Ethics’ which specifies ethical matters in all transactions or contracts so that sound and impartial transaction order is observed and ethical corporate culture is established.

    3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a code of conduct within two years

    Yes, focused on employee conduct

    Yes, focused on employees and suppliers

    Yes, focused on employees, suppliers, and other business relationships

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    The Code of Conduct for POSCO Group Suppliers stipulates overarching principles to be observed by suppliers and their subcontractors who provide products and services to POSCO Group including POSCO, its affiliates, and joint venture companies. Each and every provision included herein is equally important, and this Code of Conduct consists of seven parts concerning respect for employees’ fundamental human rights, health & safety, environment, ethics, anti-corruption, protection of trade secrets and intellectual property, quality management, and win-win partnership & social contribution.

    4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

    No one is specifically responsible for this topic

    Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)

    Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)

    Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights

    Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    We have dedicated organizations respectively for our company-wide ethics managment including anti-corruption and ESG management that encompasses human and labor rights, decent work, and environment. Also, we created the ESG Council for senior members to directly engage in integrated company-wide discussions regarding human rights issues and systematically respond to climate-related risks.

    5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

    No formal structure

    Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)

    Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)

    Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)

    Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    The company has an ESG Council as a deliberate body on major ESG issues including human rights, labor rights/decent work, environment, and anti-corruption. The head of the Corporate Citizenship Bureau serves as the chair, with heads of each department participating in company-wide discussions. The outcomes of discussions made on major agenda items through the Council are reported to the Managmenet Committee.

    Prevention

    6. Does the company have a process or processes to assess risk?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    During the era of aggravating COVID-19 pandemic, the annual due diligence in our worksites has been put to a pause. During this time, we raised the bar on our due diligence by updating our human rights due diligence checklist through the inclusion of the UNGC's guiding principles on business and human rights, the Modern Slavery Act and anti-human trafficking regulations. We started to resume human rights due diligence in our overseas worksites this year, and the updated checklist was used to assess the risks listed above.

    7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    During the era of aggravating COVID-19 pandemic, the annual due diligence in our worksites has been put to a pause. During this time, we raised the bar on our due diligence by updating our human rights due diligence checklist through the inclusion of the UNGC's guiding principles on business and human rights, the Modern Slavery Act and anti-human trafficking regulations. We started to resume human rights due diligence in our overseas worksites this year, and the updated checklist was used to assess the risks listed above. We have conducted human rights due diligence in our Indonesia Palm Oil Plantation and Textile LLC in Uzbekistan. We will resume due diligence in Myanmar and Ukraine once the political conditions are enhanced.

    Concerns and grievance mechanisms

    8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

    Optional comment
    We operate the grievance mechanism for both internal and external stakeholders to freely raise their grievances on unjustified business practices on the part of our employees, unreasonable requests taking advantage of one’s dominant position, corruptive practices, and verbal or physical violence. Such grievances can be submitted both anonymously and under one’s real name through our website, and their details remain strictly confidential according to robust security procedures under the principle of confidentiality. In particular, the identity of those who raise grievances under their real name remains strictly anonymous to protect them from any disadvantages that may occur. Once a grievance is submitted, the relevant department takes proper measures and provides feedback.

    8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

    No

    Yes

    Is the process communicated to all employees/workers in local languages?

    Is the process available to non-employees (e.g., contractors, vendors, suppliers)?

    Is the process confidential (e.g., whistleblowing process)?

    Are there processes in place to avoid retaliation?

    Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)

    Other (Please provide additional information)

    Optional comment
    We operate the grievance mechanism for both internal and external stakeholders to freely raise their grievances on unjustified business practices on the part of our employees, unreasonable requests taking advantage of one’s dominant position, corruptive practices, and verbal or physical violence. Such grievances can be submitted both anonymously and under one’s real name through our website, and their details remain strictly confidential according to robust security procedures under the principle of confidentiality. In particular, the identity of those who raise grievances under their real name remains strictly anonymous to protect them from any disadvantages that may occur. Once a grievance is submitted, the relevant department takes proper measures and provides feedback.

    9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

    No process to enable remedy to stakeholders

    Remedy available to some stakeholders (i.e., some geographies, employees only)

    Remedy is available to all affected stakeholders

    Remedy is available to all stakeholders, and suppliers are expected to have similar policies

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Lessons

    10. How does the company capture lessons regarding each of the following sustainability topics?

    No lessons are regularly captured

    Conducts root cause analyses/investigation of major incidents

    Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly

    Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    The Company developed processes in order to assess possible risks, investigate existing issues, take measures to amend the issues, and report its effectiveness regarding human and labor rights/ decent work, environment, and anti-corruption. We conduct due diligence in our overseas worksites as a way of investigating risks and capture lessons in order to create a better working place, and developed grievance mechanisms in the HQ and overseas worksites so that the employees can report if they are to experience any sort of human rights infringement. In addition, we conduct regular P-GWP(POSCO-Great Work Place) surveys and reviews to identify key improvement factors for each component affecting GWP results.

    Executive Pay

    11. Is executive pay linked to performance on one or more of the following sustainability topics?

    No, and we have no intention to change

    No, but we plan to within two years

    Yes

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Our executives' performance evaluation is based on organizational performance and individual performance. Within this evaluation system, certain amount of ESG tasks are embedded as major criteria for evaluation for both organization and individual.

    Board Composition

    12. Percentage of individuals within the company’s Board / highest governance body by:

    Number/Percentage

    Not applicable (Please provide additional information)

    Total number of board members (#)

    7

    Male (%)

    86

    Female (%)

    14

    Non-binary (%)

    Under 30 years old (%)

    0

    30-50 years old (%)

    0

    Above 50 years old (%)

    0

    From minority or vulnerable groups (%)

    0

    Executive (%)

    28

    Independent (%)

    57

    13. Do you produce sustainability reporting according to:

    Data Assurance

    14. Is the information disclosed in this questionnaire assured by a third-party?

    POSCO International commissioned DNV Business Assurance Korea Ltd., part of DNV Group, to undertake independent assurance of the sustainability report.

  • Human Rights

    Materiality / Saliency

    1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?

    Response

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    1) Child/Forced Labor (in Uzbekistan POSCO International Textile LLC) While operating factories to process raw cotton procured from the Uzbek government, POSCO International Textile has faced allegations regarding child/forced labor in the farms. However, the Company is not engaged in the operation of cotton farms in Uzbek, and the country has succeeded in eradicating systemic forced labour and systemic child labour during the 2021 cotton production cycle, according to new ILO findings. Nevertheless, we are sincerely committed to properly responding to such sensitive issues and fulfilling our social responsibility in the country where we operate. We conduct human rights training and due diligence to doubly make sure that no human rights issues occur across its worksites. We also provide human rights-related training through external professional organizations. Also, we identify actual and potential infringements of human rights and take immediate measures on the confirmed cases. 2) Occupational safety and health Although POSCO International does not have manufacturing work sites in the HQ, we have worksites overseas and in our subsidiary, POSCO SPS. We built a robust safety management system and implemented the system across the entire workplace to make a safe workplace. For example, POSCO SPS performs weekly Safe Act Observation(SAO) attended by officers. When unsafe behaviors are identified, discussions are made with workers to determine safe work methods and build consensus on the importance of safety. Also, we launched the Quick Six Sigma(QSS) initiative to prevent safety and facility risks. QSS activities include daily activities, task activities, initiative & encouragement activities, and talent development. QSS activities are implemented in manufacturing worksites of POSCO SPS and POSCO International Textile LLC. We also have safety management programs to perform internal safety audits and take preventive measure in Myanmar Shwe Project, Indonesia PT.BIA, and in Ukraine MMW Grain Terminal.

  • Labour

    Commitment

    1. Does the company have a policy commitment in relation to the following labour rights principles?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    2021

    Forced labour

    2021

    Child labour

    2021

    Non-discrimination in respect of employment and occupation

    2021

    Occupational safety and health

    2021

    Working conditions (wages, working hours)

    1.1. For each labour rights policy, is it:

    Aligned with international labour standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving labour rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks /impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    In our updated humans rights due diligence checklist, we incorporated the UNGC's guiding principles on business and human rights, the Modern Slavery Act and anti-human trafficking regulations. We resumed our due diligence across our overseas worksites this year in order to investigate potential and actual risks regarding the listed issues, and to take appropriate measures. We also provide various human rights-related education to all executives and employees to respect and protect their human rights. Such training served to share possible cases of human rights violations at the workplace in line with the enactment of the Workplace Bullying Prevention Act.

    4. Who receives training for the following labour rights issues?

    No training provided

    Select employees

    All employees

    Contractors

    Direct suppliers of the organization

    Indirect suppliers of the organization

    Other – such as partners, clients, etc.

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Performance

    6. What is the percentage of employees covered under collective bargaining agreements?

    Percent of employees (%)

    Unknown

    Employees covered under collective bargaining (%)

    100
    Optional comment
    In order to establish sound labor relations, the Company facilitates the labor management council to increase work engagement and build consensus to respond to such difficulties. The Company makes endeavors to capture VOC from all employees, and conducts employee survey to provide flexible working environment including Flexitime, work-from-home, and hub offices.

    7. What is the percentage of employees in a trade union or other workers' organization?

    Percent of employees (%)

    Unknown

    Not applicable (Please provide additional information)

    Employees in a trade union or on a worker committee (%)

    Optional comment
    The company has separate unions for each worksite. The HQ has a Labor Management Council that endeavors to increase work engagement and build consensus to respond to certain difficulties. In POSCO SPS, the STS Division has two Labor Unions that respectively comprises of 76.7% and 83.8% in Ansan and Pohang. TMC Division also has 2 units, 58% and 73% in Cheonan and Pohang. Finally, Plate Fabrication Division has a Labor Management Council comprised of 3 members from albor and mangagement respectively.

    8. In the course of the reporting period, what was the percentage of women in:

    Percent of women (%)

    Unknown

    Senior leadership level position

    8.8

    Non-executive board

    25

    9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

    Salary ratio (%)

    Unknown

    Choose to not disclose

    Women / Men (%)

    100
    Optional comment
    We operate a performance-based annual salary system so that fair appraisal outcomes are directly translated into compensation. The pay structure is applied equally to all employees of the same position regardless of their gender.

    10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

    Frequency of injury

    Unknown

    Choose to not disclose

    Frequency of injury

    0
    Optional comment
    2/3622968=0.0000005

    11. In the course of the reporting period, what was the company’s incident rate?

    Incident rate

    Unknown

    Choose to not disclose

    Incident rate

    0
    Optional comment
    240/3622968=0.00006

    Response and Reporting

    12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    We operate effective communication channels that meet local conditions in Myanmar and Indonesia. Once stakeholders submit their grievances, they are go under a verifying process, and valid grievances investigated and planned for immediate remedial action. After measures are taken, the implementation is regularly monitored and reviewed. Also, the Safety Whistleblowing program is operated to freely report on any unsafe work practices or conditions. Upon observing such practices or conditions, whistleblowers may immediately submit their reports in any format of their own choosing. We also conduct human rights due diligence in our overseas worksites in order to investigate potential and actual risks, and make sure that no human rights infringement occurs.

  • Environment

    Commitment

    1. Does the company have a formal policy on the following environmental topics?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Climate Action

    2021

    Water

    2021

    Oceans

    Forests / Biodiversity / Land Use

    2021

    Air Pollution

    2021

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    2021

    Energy & Resource Use

    2021

    1.1. For each environmental policy, is it:

    Aligned with international environmental standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving environmental expertise from inside and outside the company?

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks/ impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    POSCO International aims to protect the environment by developing systemic environmental conservation and management programs in accordance with international standards. In the process, we thoroughly communicated with the concerned stakeholders, the local residents. Such consultations were hosted to perfrom SIA(Social Impact Assessments) and HCVA(High Conservation Value Area) assessments to manage the environmental and social impact generated from the plantation operations. The RaCP(Remediation and Compensation Procedure) Concept Note was written after thorough anaylsis and discussion with stakeholders on how to prevent and mitigate the negative impact of our business regarding the issues listed above.

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    Respective business groups identify climate-related risks each year and set priorities for risks to discuss countermeasures. In addition, we are building a process to identify and manage climate change risks. The business plans and strategies highly relevant to climate change will be reported to the Management Committee through the ESG Council. For our No Deforestation, No Peat, No Exploitation Policy, we implement, monitor, and report procedures to ensure compliance for all aspects of the policy and associated commitments through a time-bound process. The policy encompasses environmental conservation and management plans to only utilize land that has been zoned for palm oil development by the Indonesian Government, prohibit all burning techniques for plantation development, protect areas of high conservational value, and reduce GHG emssions.

    5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    Climate Action - Mangrove Water - NDPE Forests/biodiversity/land use - NDPE Waste - 폐기물 재활용량 energy & resource - CPO Since joining RSPO in 2018, PT.BIA has consistently endeavored to comply with relevant regulations in areas including environmental preservation in accordance with the RSPO Principles & Criteria. PT.BIA’s HCV(High Conservation Value) assessment report, LUCA(Land Use Change Analysis) report, and RaCP(Remediation and Compensation Plan) Concept Note that encompass detailed environmental preservation programs gained approval in acquiring the RSPO certification. Also, the company has been contributing to climate change response through mangrove forestation in Myanmar. We distributed mangrove saplings equivalent to storing approximating 920,000 tons of carbon on an annual basis. In addition, PT.BIA generates electricity by using its byproducts from the CPO manufacturing process as fuel, and use electricity produced as such for CPO production, creating an eco-friendly power cycle system. In 2020, a total of 10,585 MWh electricity was generated to power division residential areas within the plantation.

    Climate Action

    6. What were the company’s gross global greenhouse gas emissions for the reporting period?

    Scope 1 Emissions

    Emissions (tCO2e)

    12835

    Scope 2 Emissions

    Emissions (tCO2e)

    47611

    Scope 3 Emissions

    Since our main business area is international trading, it is exceptionally difficult for us to track scope 3 emissions.

    Emissions (tCO2e)

    Optional comment
    The company makes endeavors to reduce GHG emissions by reducing its LNG consumption by speeding up its CAPL operation and building a strip temperature automation system. However, we are incapable of tracking our Scope 3 emission, for our main business is trading.

    7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

    Percent of revenue (%)

    Our company is a globally integrated trading company that purchases products from one source and sells them to another. Therfore, we do not engage in manufacturing or providing products to customers. However, as customer demand for green product rises, POSCO SPS, one of our subsidiaries, strengthened its green mobility components business to produce and trade fuel cell separators and green automotive exterior materials. The TMC Division is also engaged in the production and manufacturing of motor cores, and Rotor assembly module that are the key components of eco-friendly vehicles such as HEV(Hybrid Electric Vehicle), PHEV(Plug-in Hybrid Electric Vehicle), EV(Electric Vehicle), and FCEV(Fuel Cell Electric Vehicle).

    8. Has the organization acted to support climate change adaptation and resilience?

    Optional comment
    POSCO SPS is subject to the Korean government’s Emissions Trading Scheme (K-ETS) and is proactively responding to this system to reduce its carbon emissions. We also identify customers’ climate-related needs and preemptively respond to them to create new business opportunities and render our business operations truly sustainable. Also, the Company minimizes environmental impact brought by its business operations through environmental risk management. Not only do we facilitate programs and campaigns to reduce consumption of single-use disposables and energy, we also support environmental protection and remediation of negative impacts via detailed environmental preservation programs in PT.BIA, and mangrove forestation in Myanmar.

    Energy / Resource Use

    9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

    % of total energy consumption

    0

    Technology

    10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

    Percent of total revenue (%)

    As we are a globally integrated trading company, we do not manufacture our own products, but rather purchase products from one source and sells it to another. Therefore, we do not provide our own goods or services. However, one of our subsidiaries, POSCO SPS, has strengthened its green mobility components business to produce and trade fuel cell separators and green automotive exterior materials. The TMC Division is also engaged in the production and manufacturing of motor cores, and Rotor assembly module that are the key components of eco-friendly vehicles such as HEV(Hybrid Electric Vehicle), PHEV(Plug-in Hybrid Electric Vehicle), EV(Electric Vehicle), and FCEV(Fuel Cell Electric Vehicle).

    Sector-specific Questions

    11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.

    Optional comment
    Steel products

    Sector-specific: Water

    12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

    Water withdrawal (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    503.263

    Groundwater:

    Surface water:

    Rainwater:

    Wastewater:

    Percentage of water withdrawn in regions with high or extremely high water stress (%)

    0

    Water consumption (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    503.263

    Groundwater:

    Surface water:

    Rainwater:

    Wastewater:

    Percentage of water consumed in regions with high or extremely high water stress (%)

    0

    13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

    Water intensity of products (cubic meter/$):

    Sector-specific: Forest, biodiversity, and land use

    14. Please report the number and area (in hectares) of sites owned, leased, or managed by the company in or adjacent to protected areas and/or key biodiversity areas (KBA).

    Number

    Unknown

    Not applicable (Please provide additional information)

    Sites

    1

    Hectares

    6718
    Optional comment
    In PT.BIA, there is a HCV area of 6718 hectares.

    15. What area (in hectares) of natural ecosystems was converted during the reporting period in areas owned, leased, or managed by the company?

    Conversion of natural resources (hectares)

    929
    Optional comment
    Since 2011 when POSCO INTERNATIONAL began mangrove forestation to date, a total of 2,272 acres of forests were created and managed by the Company. The sustainability of these forests was verified by a third-party organization, along with the acquisition of community forest certification.

    16. Is the company supporting or implementing project(s) focused on ecosystem restoration and protection?

    No

    No, but we plan to in the next 2 years

    Yes

    Forest ecosystem restoration

    Mangrove Forestation in Myanmare, 2272 acre

    Other ecosystem restoration

    Reforestation

    Natural regeneration

    Agroforestry

    Set-aside land

    Biodiversity offsetting

    Other (please specify in text box)

    Sector-specific: Air pollution

    17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.

    Emissions (tCO2e)

    Unknown

    Not applicable (Please provide additional information)

    NOx

    25

    SOx

    0.1

    Volatile Organic Compounds (VOC)

    Hazardous air pollutants (HAP)

    Particulate matter (PM10)

    2

    Persistent organic pollutants (POP)

    Other (please specify in text box)

    Sector-specific: Waste

    18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.

    Waste Generated (t)

    2984

    19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.

    Hazardous Waste Ratio (%)

    0

    20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.

    Single-use plastics (tonnes)

    Optional comment
    We do not keep track of single-use plastics, but our percentage of recylcled waste is 82%.

    Overall Environment

    21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

    We endeavor to identify ideas to reduce GHG emissions. The STS Division of POSCO SPS reduced its LNG consumption by speeding up its CAPL operation and building a strip temperature automation system while improving on the acceleration/deceleration transition speed of its power-consuming rolling mill to reduce electricity consumption and GHG emissions. We practice guidelines for protection of environment and preservation of eco-system. In the HQ, we launch campaigns to reduce single-use disposables, turn out lights during lunch break, and support employees to subscribe to low-carbon ecological farm products. In the Shwe Project in Myanmar, we established an environmental management system in accordance with the international environmental management standard ISO 14001 to ensure systemic management. For water and sewage/effluent management, we monitor water consumption at our worksites and major facilities on a monthly basis. We identify causes and make necessary improvements to control water consumption and manage all effluents generated from our worksites. To manage waste and air pollutants, we apply internal management standards more stringently than the legally-permissible thresholds in setting discharge/emission targets. STS Division has defined facilities to perform self-measurements on the emissions generated and applied internal standards to reduce air pollutants. For our Palm Oil Plantation in Indonesia, we will be implementing the 25-year Remediation and Conservation Plan that was granted final approval by the RSPO which consists of the Conservation program to preserve forests and ecosystems and support the self-reliance of community members and the Management program to manage the quality of water and prevent inundation through tree planting.

  • Anti-corruption

    Commitment

    1. Does the company have an anti-corruption compliance programme?

    2021

    2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

    Optional comment
    https://www.poscointl.com/eng/ethicalNorms.do

    Prevention

    3. Who receives training on anti-corruption and integrity?

    3.1. How often is such training provided?

    One time only

    Every year

    Every two or more years

    We do not collect this data

    All employees

    Select employees

    Contractors

    Direct suppliers of the organization

    Other – such as partners, clients, etc.

    Indirect suppliers of the organization

    4. Does the company monitor its anti-corruption compliance programme?

    Clean POSCO System

    Response and Reporting

    5. Please report the company's total number and nature of incidents of corruption during the reporting year.

    Number of incident(s)

    Unknown

    Choose to not disclose

    Confirmed during the current year, but related to previous years

    0
    N/A

    Confirmed during the current year, and related to this year

    2
    Alleged violation of anti-graft act and FCPA reported to our Ethics Counseling Center

    6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

    7. Does your company engage in Collective Action against corruption?

    POSCO International recognizes ethics management as a key pillar for corporate competitiveness and a company's sustainable growth. Our Code of Ethics and Practice Guidelines set essential ethical values and course of action for our employees to properly practice ethics and comply to law. In addition, our Supplier Code of Conduct assists all of its business partners in fulfilling their sustainability and corporate responsibility by providing 22 provisions in 7 categories concerning basic norms including ethics, anti-corruption, fair trade and so on.

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

    A wide array of ethics training is provided to raise employees' ethics awareness and prevent relevant issues from ever occurring. In 2020, a total of 30 courses were conducted for employees at the HQ and overseas organizations by career level and department through online/offline training and campaigns. Our ethics counseling center provides counseling on ethical dilemmas employees may face during business conduct to support their ethical practices and establish a culture that respects human dignity. In 2020, the center offered counseling on 52 cases in total. In 2020, ethics training was provided to expatriates three times and to global staff once to share ethics policies and programs. Also, POSCO International has its own unethical behavior reporting system such as: Clean POSCO International System, Counseling and Reporting through the Grievance Mechanism and Workplace Harassment Report Center.