The first CEO Succession held successfully on April 23rd discussing the future and rightful candidates

Discussion for future POSCO and rightful candidates

The five outside directors, including Joo-hyeon Kim, chairman of the Board of Directors, Byeong-won Park, chairman of the director recommendation committee and the steering committee, Moon-gi Jeong, chairman of the auditing committee, Myeong-woo Lee, chairman of the evaluation and compensation committee, and Shin-bae Kim, chairman of the financial and inside trading committee and Ohjoon Kwon, CEO of the POSCO attended at the Council meeting.

CEO Ohjoon Kwon, not to participate in the Succession Council for transparency.

Based on regulation, the current CEO is considered as an ex-officio member of the CEO Succession Council. However, as soon as the Council meeting started, CEO Kwon has announced that he would not participate in the Council meeting for ensuring fairness and objectivity for the procedure of candidate identification.

Various candidates will be considered from in and outside

According to the outside directors, they defined the competent CEO candidates as the one who can show ‘Innovative leadership that can lead the next 100 years of POSCO Group’. More specifically, this means that they would carefully recommend the candidates who have global management aptitude to respond to the changes in the global economy, the innovative capabilities to continuously implement the development and changes of the group, and a high level of understanding of and competency in the steel, infrastructure and new- growth industries.

As for the election method for CEO candidates, insiders who have been fostered through the internal core talent development system will be recommended. However, shareholders such as the National Pension Service and institutional investors, through the labor-management council and Association of POSCO’s former executives will provide recommendation for the outsiders. Also, POSCO opens for global CEO candidates recommended by external search firms.

Existing airports are facing a growing capacity crunch in the midst of a growing global economy. (Source: Skift)

The Asia Pacific region’s Available Seat Kilometers (ASK) has increased 7.9 percent YoY, as China leads the way with numerous airport construction projects. Current and anticipated expenditure on airport infrastructure is USD 391 billion for the entire region.  European airports experienced a 30 percent increase in passenger volume from 2012 to 2017. Currently, there are 450 airports facing a capacity crunch in Europe, and the region is currently expecting to spend USD 123 billion on airport infrastructure. North America saw a 4.9 percent YoY growth in its ASK and is currently and expected to spend about USD 123 billion in upgrading its existing airport infrastructure.

There’s no set formula to deal with the growing capacity crunch, and airports in different regions are finding their own solutions from high tech to high-quality materials.

SEE ALSO: Clear Landing into 2018: What’s Ahead for the Aviation Industry

Speeding up passenger flow

Developing countries rich in land and capital, such as China, will deal with the growing number of passengers by building more airports. In other places such as North America, the focus will be on upgrading existing infrastructure and improving passenger flow with the help of technology.

One example of software that is being applied to speed up the flyer’s journey and minimize errors is biometric technology. In Changi Airport Terminal 4, a system called Fast and Seamless Travel (FAST) with biometric technology and self-service features is already in place and will begin operations at the end of October.

Changi Airport’s new terminal will have numerous self-service stops with biometric technology for identification. (Source: Today Online)

Passengers will be able to check-in, check baggage and board the plane, all through a series of self-service stops equipped with fingerprint scanners and facial recognition for identification instead of passports and boarding passes. Sydney Airport will also have a similar system running by the second half of 2018, and many major airports are looking to expand biometric technology applications to other areas such as flight information display systems and on-flight payments.

This is great news for crowded airports. Besides bad weather, the biggest reason for delayed flights is delayed passenger information. As of now, airlines and airports do not share data regarding passengers. Even though airports are aware of passenger check-ins hours before departure, airlines are only notified at boarding gates. Thus, airlines are rushed last minute to verify passenger and flight crew information, causing delays. Reducing the redundant check-in process alone will speed up the flow of passengers through airports.

AI and robotics to lead airport services

In line with the trend toward self-service and passenger interactions with technology, airports and airlines are implementing AI and robotics to improve the passenger flight experience and make it more personalized.

Last year, Incheon International Airport (ICN) in Korea added LG’s robots to its service team – the Airport Guide Robot and the Airport Cleaning Robot. The Guide Robot roams the terminals, ready to help out a passenger in need with airport and flight information in English, Korean, Chinese and Japanese. The bot even personally escorts travelers to the right terminal or boarding gate when passengers scan their boarding passes. The Cleaning Robot cleans nonstop, and can even detect dirty areas, analyze cleaning patterns and calculate the most efficient cleaning routes.   

The Airport Guide Robot and the Airport Cleaning Robot roam the terminals of ICN as part of the airport’s customer service and cleaning crew. (Source: Android Central)

Haneda Airport in Japan is also testing 7 different types of robots equipped with AI software to cover security, translation and baggage transportation. Investment in robotics is crucial for a country like Japan where there is a severe labor shortage due to low birth rates, and the airport is planning to have their bots up and running by 2020, in time for the Olympic Games in Tokyo.

Passengers will also be greeted by a robot named Josie Pepper at Munich Airport’s Terminal 2. Josie Pepper functions on IBM Watson’s IoT and AI technologies. Her high-performance processor with a WLAN internet access connects to a cloud service that is also linked to airport data to deliver information to passengers in real-time. Moreover, machine learning allows Josie Petter to collect and analyze data and improve her responses over time instead of repeating inputted text.  

The bigger the better

The use of technology will greatly improve the passenger flow through airports and increase passenger capacity. However, the new software systems will work best when accompanied by upgraded airport infrastructure. That’s why airports all over the world are undergoing expansion projects including Heathrow Airport (USD 17.3 billion), Sharjah International Airport (USD 400 million) and Auckland Airport (USD 160-180 million).

ICN recently finished and opened its new Passenger Terminal 2, expanding the airport’s capacity to 72 million passengers and 5.8Mt of cargo every year. The terminal was built using 380 tons of POSCO’s 446M stainless steel that contains high amounts of chromium (26%) and molybdenum (2%) for maximum corrosion resistance against the airport’s coastal climate. Moreover, an innovative Bead Blast process was used to process the stainless steel to create a rough texture to decrease sunlight reflectivity for aircraft pilots during take-offs and landings.

ICN’s new passenger terminal is outfitted with high-quality stainless steel. (Source: Airport Technology)

As with ICN, ongoing and future airport expansion projects are projected to consume vast amounts of high-quality steel that is superior in strength, corrosion-resistant and boosts the safety of passengers and flight crew. The renovated infrastructure will further be enhanced by new software upgrades, and future airports will be vastly more efficient and passenger-friendly.

Cover photo courtesy of Dubai Airports.

The U-Shaped Relationship

However, the argument is not so black and white according to Spyridon Stavropoulos, Ronald Wall and Yuanze Xu’s Environmental regulations and industrial competitiveness: evidence from China. The study suggests that the relationship between stringent economic regulations and industrial (or economic) competitiveness is U-shaped. Meaning, initially, stringent regulations will increase the cost of production and make companies less profitable, but after a certain turning point, companies will be forced to adapt and innovate, thus becoming more competitive in the long run.

Many activists sit on both sides of the debate. (Source: Ethical Shopper)

When regulation policies are consistent over a long period of time, companies are forced to tackle the root of the problem, instead of focusing on meeting certain numbers. In today’s global economy, many governments have already begun to implement stringent economic regulations that only look to get tighter in the future. In such a context, companies that choose to innovate and come up with solutions to global pollution problems will come out more competitive in the end.

Sustainability Equals Competitiveness

Looking at major economic players around the world, it’s safe to say that environmental sustainability is a common topic on each of their respective national agendas. Pressing national challenges are tied to the environment in one way or another. For example, many countries are shifting their policies to ensure energy security. Countries that import most of their energy from external regions are subject to volatile prices and thus unstable economies. Thus, governments are actively supporting companies that can cultivate domestic, renewable energy sources. Another, more obvious, example is the direct link between pollution and health risks.

China is the fastest developing country in the world, and by 2035, it will be responsible for 28 percent of the total global energy demand. China also happens to be almost completely dependent on energy imports. Subsequently, the government has started a variety of government programs to boost sustainability as part of President Xi Jinping’s pledge to build a “Beautiful China”. These policies also come in the wake of shocking statistics: in 2015, pollution led to 1.8 million premature deaths in China.

Chinese President Xi Jinping laid out a 2-step plan to achieve a “Beautiful China.” (Source: News Gru)

Sustainable Steelmaker

Even with strong government commitment and plenty of programs to support sustainable business, most developing countries lack affordable renewable energy sources and the technology to apply those sources to existing production processes. Nevertheless, the world is changing and only those that adapt and innovate survive and thrive. That’s exactly what POSCO did starting back in 2007.

FINEX: A Game Changer

POSCO came up with a new molten iron production technology called FINEX. The technology allows molten iron and non-coking coal to be produced directly in a blast furnace during the iron-making process. It is different from the conventional blast furnace process, as it combines the coking plant, sinter plant and blast furnace into a single iron-making unit. This lowers production costs and reduces harmful emissions.

FINEX is a sustainable game-changer for steel production.

Ultimately, FINEX is one of the most cost-effective and eco-friendly ways to make steel. The technology mitigates the use of C02, has the lowest process-related emission rates and preserves resources through the use of a wide range of iron ores and non-coking coals. FINEX reduces SOx and NOx emissions by 40 and 15 percent respectively, and fine dust particles can be reduced by 34 percent compared to traditional blast furnaces. Furthermore, the by-products from the process generate highly valuable export gas that can be used for various purposes like electric power generation or natural gas substitution.

On December 7, 2017, POSCO reached 20 million cumulative tons of molten iron production using the FINEX technology. POSCO is not the only company enjoying the benefits of sustainable competitiveness – POSCO’s manufacturing partners can see lower emissions levels when evaluating the entire life cycle of their products.

SEE ALSO: POSCO Reaches 20 Million Tons of Production Using FINEX Technology

Sustainability is no longer just jargon. As environmental issues are intricately tied to the economy and even national security, governments around the world will be actively supporting sustainable companies in the years to come. Companies can expect sustainability and competitiveness to become interchangeable terms in the near future.