POSCO became Korea’s first steel company to obtain the Environmental Product Declaration (EPD) certification from the Ministry of Environment.

On January 24, five of POSCO products – steel plate, wire rod, Hot-rolled Galvanized Iron (HGI), Giga Steel (980DP), and high corrosion-resistant steel plates – all received certification for the following seven environmental indicators: carbon footprint, resource footprint, ozone layer influence, acid rain, eutrophication, photochemical smog, and water footprint.

In the steel construction materials market recently, there is a higher demand for eco-friendly products. The buildings constructed with EPD-certified materials are eligible for bonus points in case the building meets the criteria for G-SEED, Green Standard for Energy and Environmental Design. Accordingly, the demand for eco-friendly materials is likely to escalate even more.
* G-SEED (Green Standard for Energy and Environmental Design) is a certification system for Green Architecture that contributes to the reduction of energy consumption and environmental pollution during the entire construction process, from design and construction to post-construction maintenance and management.

POSCO’s EPD certification highlighted the fact that steel products are environmentally sustainable from the holistic perspective of the Life Cycle Assessment approach which accesses environmental impact of material from all stages of production – from procurement, manufacturing, sales, distribution to recycling.
* LCA (Life Cycle Assessment) is a methodology to assess environmental impacts associated with all the stages of a product’s life from raw material extraction, production, distribution, disposal to recycling.

▲ South Korea’s longest suspension bridge, Yi Sun-Sin Bridge, is built with POSCO’s EPD-certified steel plates and wire rods

POSCO expects the Environment Ministry’s certification will boost the competitiveness of its products in the steel industry market that prioritizes environmental sustainability, as well as to make their eco-friendly business practice more public.

EPD certification scheme was first introduced in 2001 to offer transparency to consumers on the environmental impacts of the products they use. Administered by the Korea Environmental Industry & Technology Institute under the supervision of the Ministry of Environment, the certification scheme also aims to promote more sustainable consumption for the consumers. A total of 461 products received EPD certification to date.

The planet’s resource is finite, and the European Union who consistently takes a proactive role in promoting environmental sustainability concluded that effective management of the resource and recycling, as well as the eco-friendly products, will bring a positive impact on the economy. Environmental sustainability is not just a boutique concept anymore – it has now become a matter of essentiality, our survival.

Producing zero environmental impact in our everyday life is for the benefit of all life on earth. The plastic disaster triggered across all corners of the globe is already changing our lives – at major coffee shops, take-out cups are discouraged, and the plastic straws are disappearing. More consumers are voluntarily backing this trend, and as a result, industries are changing their policies.

Although it seems there is no direct connection between the steel industry and eco-friendly practice, POSCO is also stepping up its efforts to promote sustainability. Why is a steel company like POSCO trying to go green? POSCO Newsroom reports.

l Steel, the World’s Most Recycled Material

Steel is fully recyclable. Countless other materials get buried or incinerated after use, but steel is rarely discarded and is actually recycled. Since it’s magnetic, steel is easy to separate even when it’s mixed with other waste materials.

For example, recycling one steel can save energy equivalent to that of one washing-machine cycle and one-hour of TV-watching.

Steel is not only recyclable but it also dissolves in high heat to produce high-quality steel. Manufacturing steel this way can save 62% of the energy compared to the conventional manufacturing method, while significantly reducing carbon dioxide emissions.

▲Environmental impact: steel vs aluminum (Source: POSRI estimate based on figures from worldsteel, NSSMC & JISF)

Aluminum can be recycled, but it’s nearly impossible to remove impurities, making it difficult to reuse. When applying the Life Cycle Assessment approach, steel is much more sustainable than aluminum.

l Steel Companies and Environmental Sustainability

One of the quintessential images of a steel mill is that of liquefied iron ‘boiling’ in the furnace. Because steelmaking demands lots of energy, it is hard to associate environmental sustainability with the material. For this very reason, however, the industry is making an extra effort to create an eco-friendly business practice. Technological development effort such as POSCO’s ironmaking technology, FINEX, is one such example.

POSCO’s proprietary technology makes steel stronger and lighter, as is the case with its Giga Steel. Cars made of Giga Steel can help reduce greenhouse gas emissions by boosting fuel efficiency when driving.

POSMAC is a coated steel sheet that’s highly corrosion-resistant. It has a longer service life in severely corrosive environments with chlorine, strong alkaline, high temperature, and humidity. When applied to marine-aquamarine, solar, and wind power tower, the corrosion is minimized, which in turn increases its use period thereby reducing the needs for reconstruction.

POSCO is also taking a proactive role in minimizing the pollutants generated during the steel production. While producing one-ton of steel, approximately 600-700kg of byproducts are made. With 98.4% of such byproducts recycled within and out of POSCO, the recycling rate is superb.

l The Steel Potential to Shape Our Future

The potential of steel is endless. Steel accompanied humanity throughout history, is getting lighter than ever. The steel cans we use today are about 30% thinner than those made in the 1980s. Energy consumption for producing one ton of steel production is steadily declining.

Steel is used in a variety of ways, ranging from light industry products such as steel can for food and beverages to shipbuilding and other heavy industry products. Steel is also excellent for food preservation as well as for preventing surface corrosion for ships, etc.

Cars became lighter, and reducing green gas house also became more viable, through high-efficiency steel products like High Strength Automotive Steel with improved fuel efficiency. An electrical steel sheet with a low iron loss for high-efficiency contributes to the energy efficiency of motors and transformers. In 2017, high-efficiency steel helped reduce greenhouse gas emissions by 614,000 tons.

Also during 2017, granulated blast furnace slag, one of the by-products from steelmaking process, contributed to reducing 8.6 million green gas emission – by being recycled as a cement substitute.

As the post-Paris Climate Summit paradigm prioritizes environmental sustainability, the business leaders are following the suit, expanding environmentally friendly business practice across its diverse sectors. The reason why companies are opting for environmental sustainability is not just for the sake of public interest – the global community is setting the tone for environmental sustainability. The consumer demand for eco-friendly products considering life cycle assessment is also increasing.

Considering the environmental impact, versatile, convenient and recyclable steel is expected to draw more attention in the future both from the industry and consumers.

D’où Venons Nous? Que Sommes Nous? Où Allons Nous? by Paul Gauguin
Photo By: Mark Barry

‘D’où Venons Nous? Que Sommes Nous? Où Allons Nous?’ is a remarkable yet darkly profound piece of work by a famous French artist, Paul Gauguin, completed in midst of his suicidal urge. The translation goes, ‘Where do we come from? Who we are? Where are we going?’

By: Fibonacci Blue

About a century later, the world faced a time that begged the exact question asked by Gauguin. In 2008, we witnessed the fall of Subprime Mortgage, resulting in unprecedented economic doom, and the world fell in despair and discerning critics were rampant.

The Wizard of Oz By: Wistful ~

Economist magazine, Financial Times wrote that “The experiment for the practice of Neo capitalism has utterly failed.” A famous journalist, Martin Wolf alluded to the classic quote from the Wizard of Oz, “I’ve a feeling we’re not in Kansas anymore,” as he announced, “The future we’ll face would be totally different from the last 30 years we’ve enjoyed.”

If so, what lies in the future for Capitalism? How then, should companies exactly go about their new attempt in what approach?

Professor Rajendra Sisodia from Bentley University in US provides possible solutions to the above challenge, in his recent book, Firm of Endearment.

[box]

Rajendra Sisodia

A frequent and popular keynote speaker, Raj has made nearly 500 presentations at leading universities, corporations, non-profits and other organizations around the world.

He earned a Ph.D. in Marketing and Business Policy from Columbia University. A founding member of the Conscious Capitalism movement, Raj Sisodia is Professor of Marketing at Bentley University and co-founder and Chairman of the Conscious Capitalism Institute.

Bentley University honored him with the Award for Excellence in Scholarship in 2007 and the Innovation in Teaching Award in 2008. He was named one of the “Ten Outstanding Trailblazers of 2010” by Good Business International, and one of the “Top 100 Thought Leaders in Trustworthy Business Behavior” by Trust Across America for 2010 and 2011

[/box]

Sisodia coins the expression, “Conscious Capitalism” in his new book, Conscious Capitalism: Liberating the Heroic Spirit of Business, January 2013 from Harvard University Press. “Conscious Capitalism” is a concept that defines a phenomenon where companies contribute to extraction of social values, simultaneously strengthening the companies’ competitiveness.

SPICE is an acronym for ‘Society,’ ‘Partner,’ ‘Investor,’ ‘Customer,’ and ‘Employee,’ which Sisodia suggested to explain a supposition that sums up companies’ stakeholders. Sisodia avers that a positive synergy between the SPICE elements will result in becoming a firm of endearment as all exquisite dishes require ambrosial spices.

**POSCO is currently operating a “SPICEE Model,” in which we added another element, ‘Environment,’ considering the nature of being a steel industry.

“Firms of endearment aim for the highest, while positively contributing to the world with an honest generosity. These companies then will ultimately transform the world we’ll face a decade later, and will elevate humanity’s physical/mental health and material prosperity,” said Sisodia, as he backed his prediction with precedents of Google and Southwest Airlines. Included in examples to support Sisodia’s argument is POSCO’s accompanied growth with other firms who were mentioned previously and our environmental management. Let’s listen to what Sisodia has to say about this.

[box]

“POSCO boasts an impressive relationship with stakeholders. Especially, one must take a close look at POSCO’s activities concerning the supplying companies. From 2004, POSCO has not only been steadily following the payment term for all supplying companies, but also introduced a policy of giving full payment in cash within three business days. Through this, POSCO is helping the financial flexibility of the partner to pay for its own supplying company directly on time. This sequence can bring a huge change to the business environment as a whole internationally.”

“Conscious Firms will invest in their supplying companies in order for them to grow, as POSCO is providing long-term specific support for its supplying company to eventually become a world-class corporation. POSCO’s support includes areas in technology, financial, human capital, on top of which POSCO is currently operating 67 programs as of June 2012.”

“POSCO is also advancing “PCP Policy for Supplying Company” to those that satisfied high scores in their technology, reduction of production costs, sustainability, and obedience of payment terms. The certified supplying company will be provided a negotiation preference, along with exemption of various subsidies, invitation to foreign steel industries, and opportunities to be involved in POSCO’s education/training program.”

“In 2004, POSCO became Korea’s first to adopt the “Achievement Share” model to one of its supplying companies. As a result, total of 456 partner firms received about $7000 USD for the anticipated achievement that would result from such revolutionary step until December 2012. Moreover, the “Achievement Share” model has expanded its sphere to more supplying companies as targets.”

“Low-carbon Green Growth” is a huge challenge to a company like POSCO, especially. The reason lies behind the fact that POSCO produces vast amount of carbon-dioxide through its massive use of energy. Hence, POSCO must have had to put tremendous efforts to transform this risk into a new, positive opportunity. Today POSCO has internationally announced its aim to become world’s leader in global green growth, and the company is indeed propelling fiercely with various strategies concerning carbon management. To my observation, the spirit of Green Steel, Green Business, and Green Life in POSCO’s future outlook seems clear.”

[/box]

That was just a bit of introduction to Sisodia’s insight to POSCO. How was it? We hope you enjoyed this new outlook on POSCO by a foreign scholar. With these encouraging words of Sisodia and perhaps our hard work so far to result in such impressive achievements, POSCO will try our best to become a “Firm of Endearment.” In the effort, we plan to share and create common values with the society, our customers, partners, employees, the environment, and all our stakeholders. We hope that you may be excited to expect an even more improved POSCO in the future with generous and hopeful eyes.