ESG Strategy

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Overview

ESG Principles

Exercise green
leadership

Build a sustainable
society

Advance
governance

Five ESG Strategies
G

Green
Competency

R

Responsible
Value Chain

E

Employee
Happiness

E

Ethics &
Integrity

N

New
Governance

Learn More

High Priority

POSCO Group defines ESG management as exercising green leadership, building a sustainable society, and advancing governance. Anchored on GREEN as the keyword embodying eco-friendly future materials, we established the following five ESG strategies encompassing each of the three areas of Environment, Social, and Governance.

G

Green Competency

As part of climate action, we will introduce low carbon processes, enhance energy efficiency and develop eco-friendly products and services. By minimizing our environmental footprint, we intend to build a future where people can live and thrive in harmony with nature.

R

Responsible Value Chain

We are committed to promoting sustainability throughout our value chains by assisting business partners to achieve the highest level of standards in all areas, such as low carbon technology, human rights and safety.

E

Employee Happiness

With commitment to create a vibrant and safe workplace, we intend to build a corporate culture that values human rights and diversity and trains creative talent to drive a rapidly changing world.

E

Ethics & Integrity

To maintain the highest ethical standards in all business decision-making processes, we will continue to enhance ethics and compliance practices and promote fair trade.

N

New Governance

We will uphold the independence, expertise and diversity of the Board of Directors. Additionally, by prioritizing shareholder rights and transparency, POSCO Group will generate Real Value and reach new heights.

ESG Risk Management

Name Composition Roles & Responsibilities
ESG Session
(Annual)

· Entire BoD (both outside and inside)

· Representative directors of key Group companies

· Discuss the Group’s mid-to-long term ESG strategies

· Discuss the Group’s key ESG agenda
ESG Committee
(ad-hoc)

· 3 outside directors & 1 inside director

· Develop Group ESG strategies, policies and governance system

· Regularly assess ESG issues and discuss solutions with the management of key Group companies

· Publish POSCO Holdings Sustainability Report and communicate with investors
Group ESG Council
(Semi-annual)

· CEO of the holding company

· Representative Directors of 4 key operating companies, Head, Safety Health Environment Division of POSCO

·Executives from the holding company: Chief Strategy Officer, Battery Materials Business Office, Head of Carbon Neutral Team, Head of Corporate Strategy Team, Head of Finance IR Team, IR, Carbon Neutral Strategy, Infrastructure Business Management, Head of Corporate Compliance and Ethics Team (Secretary General)

· Review Group companies’ low carbon, safety, environment, and health policies and plans

·Review and discuss Group companies’ progress and issues

·Report to POSCO Holdings Board or the ESG Committee
Group ESG Working-level Consultative Body (bi-monthly)

·POSCO Holdings ESG team

·Dedicated ESG units from 11 Group companies

·Share each company’s ESG issues and discuss countermeasures
→ Escalate key issues to the Group ESG Council

·Improve Group companies’ ESG practices and make a joint response to ESG assessment bodies

Timeline of Group ESG Committee & ESG Session Meetings

Event Date Agenda

Q1 Group ESG Council Meeting

 Mar. 24, 2023

· POSCO Group’s ESG management plans for 2023

· POSCO’s corporate citizenship implementation directions for 2023

· 2023 Plan to reinforce health and safety at the Group level

· 2050 net zero roadmap rolling-out and One-Voice

· EU CBAM trends and response plans

· Mid/long-term plan to respond to RE100

· 2022 sustainability reporting plan

Q2 Group ESG Council Meeting

*Substituted by the ESG Session

 Jun. 16, 2023

· Key issues for ESG/sustainability disclosure and status of the ISSB standards

· POSCO FUTURE M’s net zero roadmap

· POSCO INTERNATIONAL’s net zero roadmap

Q3 Group ESG Council Meeting

 Aug. 25, 2023

· Supply chain ESG due diligence results and future plans

· Cases of establishing supplier ESG assessment systems

· Advance into resource circulation business by building a value chain for discarded fishing nets

· Physical risk analysis results for key operations and response plans

Q4 Group ESG Council Meeting

 Nov. 9, 2023

· Group-wide ESG data portal app development results and future plans

· Human rights management assessment results for Myanmar operations

· Scope 3 emissions calculation results for POSCO FLOW’s logistics operations and reduction plans

· Plans to adopt internal carbon pricing