Today we will find out what Green with POSCO is all about!
Green with POSCO brand was introduced to rebuild ‘a company committed to preserving the environment together’. Carbon Neutral Environment Group, Byproduct Recycling Group, Administration & Public Relations Group, Corporate Citizenship Strategy Group, and ESG Group are assembled to collaborate in a multi-faceted project in response to climate change, ultimately bringing low carbon economy to realization. These include ‘2050 Carbon Neutrality’ and ‘e Autopos’ from business standpoint, while ‘My Little Challenge’ campaign encourages everyone at POSCO to reduce carbon production in daily affairs, and ‘Clean Ocean Volunteer Services’ a community outreach program promotes community-based activities for broader impact. Combined, POSCO, in the spirit of corporate citizenship, is leading the way to a better and environmentally sound future.
As a corporate citizen, POSCO declared to achieve 2050 carbon neutrality and has communicated with stakeholders to form a partnership fulfilling greater purpose. To reach carbon neutrality, POSCO has refined low carbon steel production technology and inspires all its employees to generate and pledge new ways to cut down carbon footprint in our daily lives.
Part of a 5-part series, Green with POSCO is a signature brand that encapsulates POSCO’s iron-strong commitment to discover and play its roles to make the world better while delivering its promises to be a sustainably growing and respected business member for the next 100 years.
l Achieving 2050 Carbon Neutrality proclamation
In December of 2015, the Paris Agreement was signed, and outlines a 196-nation consensus to suppress rising global average temperature by 2℃ and maintain within 1.5℃ margin.
Furthermore, a UN IPCC* special report emphasizes that to avert devastating meteorological events, the rising temperature must not exceed 1.5℃ differential compared to that of the preindustrial era. To this end, nations around the world including Korea rallied behind the 2050 Carbon Neutrality. The collective effort was joined by key investor groups and clients, and has invited the participation of investment firms and supply chains subsequently.
①The first step to carbon neutrality: organizing a conference body
POSCO recognizes the ramification of climate change, and the necessity for an action. In December of 2020, the board members approved ‘POSCO 2050 Carbon Neutrality’ vision for the purpose of meeting corporate citizenship responsibilities by transforming to a low carbon producing industry, and reforming its business practices to enhance its competitive edge.
POSCO established Carbon Neutral Environment Group under the Safety & Environment Bureau – Environment Strategy & Affairs Office for systematic engagement. The newly instituted Carbon Neutral Environment Group centralizes all energy consumption and environmental indicators to effectively formulate a corporate-wide strategic initiatives.
Board of directors and management committee made strategic business decisions in CO2 production guidelines to curb greenhouse gas emission, notably the decision to adapt the 2050 Carbon Neutrality vision.
In 2010, POSCO was the first corporation to implement the 2020 Greenhouse Gas Reduction voluntarily, and the first steel company in Asia to make carbon neutrality plan official. These were regarded as ambitious plans.
In 2021, the company CEO and executives implemented KPI to set and manage CO2 emission volume and financial indicators while the CEO chairs management committee 4 times a year, and the head of the Steel Business Unit holds corporate management committee 8 times a year for performance evaluation. The head of the Steel Business Unit also chairs ‘Low Carbon Eco-friendly Council’, assembling the heads of the Production Technology Division and the Safety Environment Division, along with all affiliate executives, in every quarter to discuss progress, future refinements, and other relevant topics related to climate change and policy outlook.
POSCO’s very own Codes of Investment Management states that prior to any new business investment decision with projected greenhouse gas output, consultation with the Environment Strategic Planning Office shall be preceded, and that the investment review must reflect the carbon cost of increased emission.
②A Step Closer to Carbon Neutrality: Status
To advance HyREX research, an essential technology to reach carbon neutrality goals, a national research project under the auspices of Green Steel Committee in the Ministry of Trade, Industry and Energy will launch, followed by establishing a test plant in 2030, and entering operational status in 2050. POSCO’s HyREX is based on the existing FINEX process to offer better scalability, and utilizes iron ore, putting POSCO ahead of competitors in reaching carbon neutral objectives.
While maintaining crude steel production level, POSCO is committed to scale back greenhouse gas emission by 10% until 2030 through investment in broader application of greenhouse reduction technology, CDQ(Coke Dry Quenching) System, and refined overall energy efficiency in workplaces. In addition, offering environmentally friendly products would result in a 10% reduction of social greenhouse output, a combined 20% cutback of greenhouse emission as a whole.
By 2040, HyREX technology will become viable for practical application, and details are being worked out as social carbon footprint is set to be reduced to 50% by this time. By 2050, existing blast furnaces will be sequentially phased out, replaced by HyREX as a part of carbon neutrality plan.
Alongside 5 other domestic steel businesses, POSCO was among the first to declare its intention to join the national carbon neutrality vision. To achieve 2050 Carbon Neutrality, Green Steel Committee, a collective body of industries, academic and research institutions, and government agencies, was launched in February. The Green Steel Committee produced a joint statement outlining key directives – technology research and reforming manufacturing processes to curb carbon emission; vitalization of information and opinion sharing; policy discovery, formulation, and recommendations for enhanced sustainable growth; boosting international cooperation.
l Clean Ocean Community Service
The Clean Ocean Community Service meets weekly in coastal areas near the steel mill for cleaning and environmental resuscitation activities contributing to the marine ecosystem conservation efforts. This community outreach program joins forces with local communities and environment NGOs to foster cooperative relationship.
To assist local fishing activities and to ensure safety of residents, starfish and sea urchins, detrimental to marine ecosystem, and underwater hazardous materials were removed. By early 2021, some 1,912 tons of marine waste has been collected.
l My Little Challenge
Bringing changes to yourself and to the society begins with small things! The mobile application for employees helps setting life challenge goals, and users can post the photos of the daily pursuit of their goals. On May 30th, the first season of the My Little Challenge ended.
Bring Your Own Spoon Challenge
‘My Little Challenge’ began April of this year spanning 3 seasons, and at the end of each season, best participants are selected and awarded with gifts. ‘My Little Challenge’ enjoys overwhelmingly positive reception from employees as they seek to achieve meaningful life goals and having fun while doing it.
Please stay tuned for more carbon neutral activities from POSCO, your corporate citizenship partner making our future environmentally sound.