This year, the Corporate Knights released their 13th annual Global 100 list, examining the sustainability efforts of about 4,000 companies with a market value of at least $2 billion. Their methodology looked at 14 key performance indicators (KPIs) covering environmental, social, and financial performance metrics.

The following list looks at the leaders of several industries and what they are doing to remain competitive in today’s challenging market.  

#1 in Metals & Mining – POSCO (#35 overall)

The metals & mining industry is typically associated with high emissions due to the high energy consumption required. POSCO is the only corporation listed in the mining & metals industry, ranking 35th among all corporations across all industries.

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POSCO has made significant efforts to be a leader in sustainable manufacturing. Through its smart factory technology, POSCO has refined its production processes, which reduces waste, improves quality, and ensures employee safety. POSCO’s World Premium Product PosMAC has proven to be an ideal solution for solar panels due to its lightweight and durable properties (even being used on floating solar panel farms). More recently, POSCO’s innovations in advanced high strength steels for automobiles have made it the material of choice for automakers looking for low emissions, sustainable solution.

Venturing out beyond the steel sector POSCO developed innovative solutions in the lithium rechargeable battery industry. Its new extraction method takes anywhere from 8 hours up to one month (a significant improvement over previous technologies that took anywhere from 12-18 months). This new technology is also able to extract lithium with a purity rate of 99.9% and increases the recovery rate to over 80% – which reduces the resources needed for extraction making the process more sustainable and eco-friendly.

POSCO CEO Kwon Ohjoon holds lithium carbonate that was extracted using POSCO’s newly advanced technology that reduces time and the resources needed for extraction.

Beyond steel production, POSCO subsidiaries all over the world work to improve the communities around them. Every year more than 80,000 POSCO employees participate in Global Volunteer Week all over the globe, providing support and assistance to those who need it most. POSCO also sponsors the Beyond program, giving university students the opportunity to give back by helping build homes for those in need.       

In addition to The Global 100, POSCO has been listed on the SAM-Dow Jones Sustainability Index for 12 straight years (2005-2016), and World Steel Dynamics (WSD) has named POSCO the most competitive steelmaker in the world for seven years running since 2010. POSCO also recently received awards for its CSR work in China and Southeast Asia.

#1 in Auto Industry – BMW (#16 overall)

For an industry in the midst of radical change and an effort to reposition itself to be more sustainable, BMW leads the group and ranks as the 16th most sustainable corporation.

Sustainability has been an integral piece of the BMW Group’s culture and corporate strategy for decades. In 1973, they became the first automaker to appoint an environmental officer. In 2001, they committed to the United Nations Environment Programme as well as the UN Global Compact and the Cleaner Production Declaration. Today, BMW has a Sustainability Board that defines the strategic alignment through binding targets.

Automated machines work on the assembly line, helping to reduce waste and improve product quality.

The Global 100 specifically noted BMW’s holistic approach in encouraging sustainable production throughout its entire value chain. This includes not just environmental protection, but also supply chain sustainability, employee orientation, and social commitment.

In South Carolina, BMW’s plant uses methane gas from a nearby landfill to generate the power and heat needed for production. In South Africa, they operate a biogas-fuelled heat and power station by processing waste from local cattle and chicken farms.

From planning to production to disposal & recycling, the BMW Group has been dedicated to making each step more sustainable. Apart from advancing electromobility technology in their vehicles, BMW has pushed to purchase raw materials from environmentally and socially friendly sources, reduce environmentally damaging waste water, and use transport vehicles with lower emissions.

BMW sees its future growth as dependent on its ability to become a more sustainable company. Their vision is to be “the most successful and sustainable premium provider of individual mobility” and the measures they have taken are proof of their commitment.

#1 in Industry – Siemens AG (#1 overall)

German industrial conglomerate, Siemens AG, is a major player in the healthcare, energy, industrial, and infrastructure sectors. Siemens defines sustainable development as “the means to achieve profitable and long-term growth…while striving to balance people, environment, and profit.” All of their efforts helped them to be ranked as the most sustainable corporation in the world by the Global 100.

Siemens efforts to cut its carbon footprint in half by 2020 and to be completely carbon neutral by 2030 were a significant factor of its #1 spot. Currently, 50% of energy consumption in Germany come from green energy sources, cutting its 2016 carbon emissions by more than 200,000 metric tons. In the United States, only 20% of its energy comes from renewable sources, but Siemens is on track to have all of its US sites use clean energy sources by 2020. Overall, Siemens plans to shrink its emissions by 750,000 metric tons of carbon dioxide by 2020.

In Thailand, three SGT-400 industrial gas turbines each drive a Siemens barrel-type compressor.

In addition to its commitment to cut its carbon emissions, the Corporate Knights noted Siemens’ efforts to improve the efficiency of energy and water usage, responsible approach to paying taxes, significant investments in innovation, low employee turnover and strong female board representation. More than 30% of the Siemens supervisory board are women and they remain committed to seeing higher representation at lower levels of management as well.

Earlier this year, POSCO CEO Kwon Ohjoon visited Siemens in Germany to learn more about Siemens’ advanced manufacturing technologies and smart factory solutions. Its plant in Amberg is a model smart factory thanks to its 1,000 sensors used to connect its IOT technology, that makes it possible to check for abnormalities at each stage of the production process. These sensors can also stop the production line if any defective products are found and replace them with new ones. Also, with the ability to analyze 50 million pieces of process information per day, Siemens is continuously optimizing its production processes to ensure the lowest possible rate of defects.

POSCO remains committed to working with partners like Siemens while continuing to optimize its plants and processing centers to be more sustainable for its customers, employees, and partners.

Volkswagen brought back its iconic Microbus in the form of a new electric, self-driving ID Buzz concept car. (Engadget)

The headlines from the Consumer Electronic Show (CES) were all about self-driving, electric, and connected cars. As these topics continued to be highlighted at NAIAS (see the new Volkswagen ID Buzz pictured above), there was also a focus on the importance of structural design.

Innovations in high-strength steel have allowed car makers to reduce the weight of vehicles without compromising safety. From large sedans to electric vehicles, advances in steel were spotted all throughout this year’s NAIAS with BMW’s new 5 Series and Ford’s new 2018 F-150 both showing off their lightweight aluminum and high-strength steel compounds that helped shed more than 100 kg from the BMW model.

The push to make vehicles lighter raises safety concerns. Lighter cars require lighter steel, and to make lighter steel there are typically other compromises that have to be made. POSCO, however, with its advanced high-strength automotive steel, has found the solution for automakers to make cars that are both safe and lightweight.

The new BMW 5 Series (left) and Ford F150 (right) made their debut at the North American International Auto Show. Both models used advanced high-strength steel to reduce weight and maintain safety. (NAIAS Image Archive)

POSCO’s Lightweight Auto Solutions Increase Safety

In 2016, POSCO became the first steelmaker to participate at NAIAS, displaying its advanced high-strength steel for automobiles, including its the PosM Steel and hot press forming steel (HPF). PosM Steel is five times stronger than other types of steel making it great for impact absorption and increased safety.

Providing a rapid solution upgrade for strengthened crash requirements, the safety of POSCO’s advanced materials has been certified by the Insurance Institute for Highway Safety (IIHS). In addition, the strength and crashworthiness of POSCO’s advanced steel solution received a score of 5 stars from USNCAP and ‘good’ safety ratings on the IIHS Moderate Overlap Front and Small Overlap Front tests. By reducing possible safety concerns with high strength body solutions, POSCO is able to contribute to the advancement of global auto manufacturers.

With steel being more important than ever in the auto industry, POSCO’s commitment to improving the strength and safety in its automotive steel has helped it maintain its position as a global industry leader. As Gregory Warden of GM said, “there is a whole new generation of steel coming” – and POSCO is helping to lead the way by creating new solutions that guarantee safety and fit the unique needs of its partners.

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Advancements in electric cars, autonomous driving, car connectivity, and AI were on full display. Nissan and BMW unveiled plans to use Microsoft’s personal assistant technology, Cortana, with their cars. Honda became the first major manufacturer to develop an electric concept car specifically designed for ride-sharing. And as for self-driving cars – Nissan announced it would bring autonomous driving support to its Leaf electric car, Hyundai introduced one that would be affordable enough for the masses, and Audi announced a partnership with Nvidia to bring self-driving cars to market by 2020.

With all of the focus on electric cars and autonomous driving, it is easy to forget the basic building blocks that are needed to make these cars a reality. As Toyota Research Institute CEO Gill Pratt noted at CES, “Historically humans have zero tolerance of death by machine,” and for further adoption by the public, safety must be reinforced in autonomous vehicles. Increased safety in cars often goes hand-in-hand with heavier materials that can withstand more pressure. However, the push for more fuel efficient electric cars is pushing the industry to build with more lightweight components.

Car manufacturers are working to find the right balance between strength, weight, and price. The EPA has estimated that reducing a vehicle’s weight by 45kg (100lbs) will improve fuel efficiency by 1%, and while more lightweight materials do exist in aluminum and magnesium, they are often too cost-prohibitive for general use.

POSCO Body Concept Electric Vehicle

POSCO’s PBC-EV is both safe and lightweight

On this front, POSCO has been working to develop solutions for car manufacturers. The PBC-EV, or POSCO Body Concept Electric Vehicle, is one product of that research as POSCO sought to create a lighter car with the same strength and safety that is expected in today’s modern car market. POSCO focused on two main points when developing this lightweight car body. The first was the application of a combination of POSCO’s most advanced steels including TRIP, PosMCT950E, and PosMCT980B. Secondly, POSCO optimized existing construction methods and worked to introduce new techniques in order to both lighten and strengthen the body of the automobile. With its PBC-EV, POSCO was able to reduce weight by 26% while still maintaining the highest levels of body strength.

Magnesium technology

POSCO materials were used in the design of Renault’s EOLAB concept car

Many in the auto industry are setting their sights on magnesium as the future of car manufacturing. Magnesium can be easily molded and it is both lightweight and strong. Due to its high price, car makers have not fully embraced the move to magnesium yet, but POSCO is already preparing for this probability. Last month, POSCO’s World Premium Materials (WPM) – Magnesium Business Division organized a seminar with industry experts and automotive engineering students to discuss the future of magnesium in car manufacturing. Experts in magnesium, molding, bonding, and surface treatment were invited to speak about the application of magnesium technology in automobiles and students gave presentations on their own experience developing race cars.

Even though cars have been around since the late 19^th century, new ideas continue to force the industry to adapt and change. And whether it is optimizing existing manufacturing processes or working to utilize technologies for the future, POSCO remains committed to finding innovations in the auto industry.

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In the second part of POSCO Weekly’s series featuring the recipients of POSCO’s Excellent Overseas Affiliate Prize, we introduce to you POSCO-CLPC, the recipient of the Market Frontier Prize, to share its achievements in amplifying sales and solidifying client relationships. (See the previous post here.)

POSCO-CLPC (President Lee Joo-sung) was established in July 2010 in the Shenyang-EU Economic Development Zone in Liaoning Province, China. Due to the increased automobile production in Northeast China, and subsequently the rising demand for automotive flat products, POSCO-CLPC now has an annual processing capacity of 170,000 tons.

POSCO-CLPC processes and supplies automotive flat products to carmakers such as FAW-VW, a joint venture between China FAW Group Corporation and Volkswagen, BMW Brilliance Automotive and Shanghai General Motors, using a just in time (JIT) production strategy. It also provides steel processing services to automotive component manufacturers in order to meet customers’ needs.

Starting with a sales of 38,000 tons in 2010, POSCO-CLPC has been showing steady growth, reaching an accumulated sales of 500,000 tons in December 2014. In 2014 alone, it achieved its highest annual sales record of 158,000 tons.

The year 2014 was a meaningful one for POSCO-CLPC, as its business endeavors to prepare for the increasing manufacturing capacity of BMW Brilliance and Shanghai GM in the Shenyang region came to fruition. After successful testing on seven auto parts, POSCO-CLPC became the new supplier of those parts and components, and its sales for BMW Brilliance has since doubled, compared to its 2013 figures.

Additionally, POSCO-CLPC has won a contract to offer blanking and molding services to BMW Brilliance for the BMW2 model, solidifying the relationship between the two companies.

Meanwhile, POSCO-CLPC’s sales volume for Shanghai GM and automotive component manufacturers has remarkably increased in response to the business trends of customers and the expansion of its supply to manufacturers of auto parts.

In recognition for its achievements in amplifying sales and solidifying relationships with its clients, POSCO-CLPC was selected as an Excellent Overseas Affiliate and awarded the Market Frontier Prize in March.

POSCO-CLPC is planning to increase its sales of automotive parts for upcoming vehicles in partnership with POSCO Headquarters, and to actively seek new opportunities to grow its business with global automotive component manufacturers that are scheduled to relocate to Shenyang. Also, it will expand its World Premium (WP) products and develop new opportunities for the sales of a variety of steel products, including stainless steel and electrical steel.

Today, POSCO global blog will try to explain the basics of electric vehicles.

Pictured here: POSCO exhibit set up at The 1^st International Electric Vehicle Expo held in Jeju

What is an Electric Vehicle?

An electric car is basically an automobile that is powered by electricity. It is powered by an electric motor that runs on a rechargeable battery as opposed to a gasoline engine. Electric vehicles has gained widespread recognition predominantly because it is the environmentally-friendly alternative to gas guzzling automobiles.

Why should you care about Electric Vehicles?

Pictured here: EV on display that promotes ‘zero emissions’

 You might have heard the word ‘electric car’ lately, but might not understand what the direct benefits are. The major reasons that electric cars is top-of-mind for the auto industry and society as whole are for the following reasons:

1)      Less pollution: Electric cars are an eco-friendly alternative to gasoline powered cars as they create less pollution

2)      Cost effective in the long-run: Electric cars run on electricity so you can save up on annual car fuel costs and expensive maintenance related to oil changes, fuel filters, etc.

3)      Reduces fuel dependency: Electric vehicles can be powered by electricity produced from multiple energy sources including wind, solar, hydro, nuclear, biofuel, and fossil fuel sources. Therefore, electric vehicles have the potential to support economies while also reducing dependence on imported oil.

4)      Better Sound Quality: Electric cars may be difficult to differentiate from regular cars from the outside, but electric motors provide quiet and very smooth operation.

Challenges for Electric Vehicles

That is not to say that electric vehicles face no challenges. Driving range is a concern for consumers as gasoline vehicles can go longer distances. Recharge time and overall bulk are concerns also. Companies, including POSCO, are continuously investing time and energy to improve technologies and materials for electric vehicles.

Pictured here: Entrance to 1^st International Electric Vehicle Expo in Jeju

During March 15 through 21, the 1^st International Electric Vehicle Expo was held in Jeju Island, south of the Korean peninsula. More than 40 companies attended the event and consumers were able to see firsthand electric cars including Kia’s Ray EV, Reno Samsung SM3 Z.E., Chevrolet Spark EV, Kia Soul EV and BMW i3. Nearly 50,000 visitors came to the expo where POSCO Group showcased its innovative electric car technology.

Pictured here: POSCO exhibit at 1^st International Electric Vehicle Expo in Jeju

Of the participating companies, POSCO was the only company to offer a total solution that addresses materials, rechargeable infra and service. POSCO was the first steelmaking company to develop a body for an electric vehicle concept, solidifying its position at the forefront of electric vehicles.

POSCO Group’s <Total Solution>

Pictured here: POSCO executives gathered at the Expo in Jeju

POSCO Group companies including POSCO ICT, POSCO ChemTech, POSCO TMC and POSCO ESM were all present for the expo. As the first steelmaker to create the concept body for electric vehicles, POSCO proved that its steel solutions continue to provide value for the future of electric vehicles. The exhibit was divided into three parts consisting of rechargeable infra needed by electric vehicles, service and materials.

POSCO ICT’s electric vehicle rechargeable infra solution can be applied to all types of vehicles. Moreover, users are able to recharge without having to carry an external cable.

Pictured here: Chevrolet electric vehicle on exhibit being recharged

In addition, in order to improve the user experience, POSCO is offering a variety of convenient services. POSCO ICT has set up charging infrastructure around Jeju so travelers do not need to worry about lack of electricity. Beginning this June, POSCO ICT will form a partnership with E-Mart·BMW to offer easier charging services anytime, anywhere. POSCO ICT will also be forming a partnership with Seoul car sharing services to provide rechargeable infra.

POSCO also highlighted its commitment towards Nd magnets. Nd magnet, which is made of a rare earth metal, is an integral part of electric vehicle motors. They are currently imported from Japan and China. The Nd magnets that POSCO supplies can be applied to domestic electric vehicles and can reduce the dependency on imports.

State-of-the-Art Technology for Future Electric Vehicles

Pictured here: Compact-sized electric vehicle

Compared to internal combustion engines, electric vehicles are still trailing behind in terms of mileage and battery weight. Therefore a variety of new technologies are being applied for lightweight car bodies. For this reason, new materials beyond the previous aluminum and steel are being introduced into the development of electric vehicles.

POSCO is the first steelmaker to develop steel that is optimized for electric vehicle bodies. PBC-EV (POSCO Body Concept-Electric Vehicle) is the car body that was developed to showcase the state-of-the-art technology POSCO has recently developed for future electric vehicles.

PBC-EV has set the standard for EV steel solutions. It is made from cutting-edge steel and the latest components technology for an integrated solution that has reduced weight of 26.4% compared to previous car bodies.

Pictured here: Regular-sized electric vehicle made by Renault Samsung Motors

The Future of Electric Vehicles

As companies continue to improve and build upon existing electric vehicle technologies, the growing prominence of electric vehicles is highly probable. As an environmentally-conscious company, POSCO hopes to see more growth in this field. Would you buy an electric vehicle?