I Establishes a group-wide ‘POSCO ESG purchasing system’… Aims to become a global sustainable purchasing leader company
I Selects suppliers from the ESG perspective, expanding eco-friendly purchases, supporting ESG settlement activities for suppliers, and more
I Contributes to promoting ‘Carbon Neutrality’ by doubling the number of eco-friendly purchases by 2025
POSCO, which introduced a standard model for shared growth between large and small companies by introducing a Benefit Sharing system in Korea, will lead the supply chain management from an ESG perspective.
POSCO established a group-wide ‘POSCO ESG purchasing system’ based on ‘Together With POSCO’ and ‘Green With POSCO’ among the Five POSCO Corporate Citizenship Brands, which are POSCO’s management ideologies, under the purchasing policy of ‘Lead the sustainable purchases based on eco-friendly and socially responsible suppliers’.
*Five POSCO Corporate Citizenship Brands – Together With POSCO, Challenge With POSCO, Green With POSCO, Life With POSCO, Community With POSCO.
To this end, POSCO decided to establish ESG management throughout the supply chain, including raw materials, facilities, and resources, by ▲selecting suppliers from ESG perspective, ▲expanding eco-friendly purchases ▲supporting suppliers’ ESG settlement activities.
First of all, for suppliers who wish to make new transactions, POSCO will give them entry qualifications after examining the basic ESG-related qualifications such as compliance with environmental and human rights regulations, and ethical management. For the existing suppliers, POSCO will strengthen the evaluation level of environmental certification or ESG-related activities to induce improvement and to limit supply if the evaluation is not satisfactory.
In addition, the company plans to increase eco-friendly purchases to two billion dollars, which is twice the current level by 2025, by using products from the 3R perspective, such as expanding the recycling of waste resources such as scrap (Recycle), reducing greenhouse gas and air pollution by purchasing energy-efficient and eco-friendly certified products (Reduce), and minimizing resource waste by reusing the resources (Reuse), and the company will continue to expand them to help the company achieve ‘2050 Carbon Neutrality’.
Furthermore, it also promotes ESG settlement support activities for small and medium-sized suppliers who still have a low understanding of ESG and lack their capabilities. First, POSCO has opened and operated a curriculum on understanding ESG and ESG purchasing policies for suppliers from the 29th of last month and added ESG compliance to the ‘Supplier’s Code of Conduct’, which stipulates basic matters that suppliers must follow. It also seeks to support suppliers to improve ESG-related issues through the operation of the ‘Together with POSCO Support Group’ and the ‘Eco-friendly Consulting Support Group’ and plans to establish a ‘Responsible Mineral Policy’ to identify and exclude minerals that cause human rights, disputes, and environmental problems. The company will also strengthen its management to ensure that suppliers comply with the responsible mineral purchasing process.
It also plans to hold a regular ‘Group company ESG purchasing council’ with group companies to share best practices in ESG purchasing, and the group companies will also expand ESG purchases to the same level as POSCO.
Meanwhile, POSCO plans to disclose the operation performance of the ESG purchasing system through its corporate citizenship report and POSCO e-purchasing system (steel-n.com).