ESG Strategy

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Overview

ESG Principles

Exercise
green leadership

Build
a sustainable society

Advance governance
to deliver Real Value

Five ESG Strategies
G

Green
Competency

R

Responsible
Value Chain

E

Employee
Happiness

E

Ethics &
Integrity

N

New Governance
for Real Value

Learn More

High Priority

Under Corporate Citizenship management philosophy, POSCO Group performs ESG activities, such as exercising green leadership, building a sustainable community and enhancing corporate governance, to deliver Real Value.
We have identified five Environmental, Social and Governance (ESG) strategies to stand for each letter in the word ‘green,’ a keyword that represents eco-friendly future materials.

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 for
Real Value

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
(Quarterly)

·POSCO Holdings CEO

· CEOs of the five key Group companies; and the head of Safety Health Environment (SHE) Division, POSCO

·POSCO Holdings executives, i.e. Heads of Corporate Strategy Team, Green Materials & Energy Business Team, Strategy & Business Development, Steel Business Team, Green Infra Business Team and ESG team, and Secretary General (from ESG team)

· 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

*Combined with Corporate Citizenship Strategy Council

 Wed., March 30, 2022

· Publication schedule for POSCO Holdings Sustainability Report

· POSCO’s carbon reduction strategies

Q2 Group ESG Council Meeting

 Fri., June 3, 2022

·Materiality assessment briefed: Group’s top 10 ESG priorities and strategies

·Project status: building a robust safety and health management system for the Group

· POSCO E&C’s safety implementation strategy

· POSCO Future M’s 2050 carbon reduction action plan

· POSCO Energy’s 2050 carbon reduction action plan

·POSCO International’s human right initiatives for overseas operations

Q3 Group ESG Committee Meeting

*Replaced by ESG Session

 Fri., August 12, 2022

·Net zero roadmap: status update and next steps

·POSCO Future M’s net zero goals and roadmap planning

·POSCO’s safety activities: progress and outcomes

· POSCO International’s human rights issues and countermeasures at overseas operations

· POSCO Holdings’ ESG practices assessed by global institutions

Q4 Group ESG Council Meeting

 Mon., November 21, 2022

· Strategies for responsible supply chain management

· Data protection strategies for the Group

·Project status and next steps: building an ESG performance data management system

· Human rights issues at Myanmar POSCO C&C (MPCC)

·Development of EU social taxonomy