POSCO’s globally acclaimed ‘corrosion-resistant steel’, PosMAC acquired first domestic EPD (Environmental Product Declaration) certification from US’s global safety and quality certification company, UL(Underwriters’ Laboratories) Environment.

Environmental Product Declaration is a standardized certification system of quantifying the environmental impact of products or services. This certification authority transparently evaluates the overall production process of all products from the extraction of raw materials, supply, production, use, and disposal. The certification standard complies with the International Organization for Standardization (ISO), thus fundamental to earn in entering the global market.

US’s UL(Underwriters’ Laboratories) is the parent organization of the certification authority, UL Environment. UL was first established in 1894 as US’s first safety standardization and authorization company, performing public authorization of not only steel products but a varied range of products such as electronics and information communications, medical, and renewable energy materials. The UL Environment’s EPD certificate has been acknowledged in the global market for drawing credibility.

The EPD-certified PosMAC is a new generation steel developed by POSCO’s unique technology that drastically improved the corrosion-resistant capabilities. PosMAC’s corrosion-resistant capability is more than five times that of previous galvanized steel plate. This is achieved by an oxidized layer called ‘Simonkolleite’, which is composed of zinc, magnesium, and aluminum that protects the surface from corrosion with a long-lasting effect while covering the cutting plate enhancing its resistance to corrosion.

Its superior resistance to corrosion as opposed to previous galvanized steel plate minimizes reconstruction from corrosion through providing long-lasting protection from severe environment such as chlorine, alkaline, high temperatures and humidity. This relatively decreases fuel, raw material, greenhouse gases, and other pollution-generating emissions from the manufacturing of additional steel required for reconstruction. All the reasons why PosMAC is highly competitive as an eco-friendly material. (Ask an Expert: Maximizing Sustainability and Minimizing Environmental Impact)

PosMAC applied in Alamo solar power plant in San Antonio, US

These leading qualities of PosMAC gaining worldwide recognition in the solar energy market granted a supply agreement with NEXTracker, the world’s lead solar tracking system manufacturer. Solar energy structures require highly corrosion-resistant materials due to its longstanding exposure in harsh conditions. In the domestic scene, where installation sites are rather limited, PosMAC is applied in offshore solar structures where extremely high corrosion-resistant materials are required.

POSCO claims “This EPD certification contributes to PosMAC’s competence in solar energy and building materials market in Europe and US where sustainability is a significant movement while enriching the eco-friendly brand image leading the age of low-carbon economy and sustainability.”

According to research by McKinsey, approximately 51 percent of all job-related activities in the U.S. can be replaced by robots. Another recent research conducted by PwC shows that 40 percent of jobs in the U.S., 31 percent in the UK, 35 percent in Germany and 21 percent of the jobs in Tokyo are vulnerable to replacement by robotics or other artificial intelligence (AI).

An imagined image of an all-robot workforce (Source: Digital News Asia)

The figures are daunting, but in practice, companies have yet to realize a fully-automated system that matches human labor. The truth is, humans need robots to take over mundane and physically demanding tasks, while people take on creative and innovative roles in the workplace. What is more likely is a shift in workplace dynamics, not a decrease in the overall number of jobs available. Today, most companies have automated their systems to varying degrees, and robots are continually being upgraded.

The Human-Robot Collaboration

Last year, the International Organization for Standardization (ISO) published ISO/TS 15066, the safety standards for collaborative robots, or cobots that work in the same workplace as humans simultaneously. Before, it was common to find robots restrained in cages, or shut off while human workers loaded equipment onto the robots. Now, with enhanced sensors and diverse power settings, the safety risks of working with cobots are low. To add, many industries are embracing cobots over traditional industrial robots that work alone, because cobots are less expensive and require much less energy to operate.     

A welder gets help from a cobot

Not only are they a sustainable solution for companies, they increase workers’ productivity. According to Business World, Julie Shah and her team at the Massachusetts Institute of Technology conducted a study looking at human-robot collaborations at a BMW plant. She found higher levels of productivity, efficiency and performance when humans and robots collaborate in comparison to all-human or all-robot systems. Collaboration also reduced human idle time by 85 percent. Many argue that this increase in productivity will lead to more business and eventually create more jobs that revolve around working with cobots.

The International Federation of Robotics (IFR) found that robot-driven productivity accounted for 10 percent of total GDP growth in OECD countries from 1993 to 2016, and that number will continue to grow in the coming years. The IFR predicts worldwide usage of industrial robots to reach 2.6 million by 2019. That’s one million more robots than in 2015.

Cobots are already making their way into factories and warehouses, and human workers are learning to work with their new counterparts.

Auto Industry

The automotive industry is one of the most common places to find cobots as major automakers were early movers in incorporating robotics into the workforce. That’s why it’s the perfect place to observe the changing dynamics of the workplace with cobots. At Ford’s new production facility, cobots work shoulder to shoulder with the production team in what they call a blended solution. Mostly, cobots have taken over repetitive tasks, physically demanding or dangerous tasks and freed up workers to focus on new innovations and creative projects. The facility runs 21 hours a day, 6 days a week thanks to around 550 cobots and robots.

Take a look at the new working dynamics at Ford below:

Food Industry

The food industry is another sector ripe for human-cobot collaboration, especially in the packaging sector. However, pizza restaurant Zume is changing the delivery pizza experience with automated technology. Cobots have taken over tasks such as spreading the sauce and lifting the pies into the oven. They will be implementing more robot technology to free up kitchen staff to work in their offices for business expansion. Another addition to come is a delivery truck equipped with 50 ovens that will start cooking the pizzas based on exactly calculated arrival times.

Watch the video below to find out more about what Zume is working on:

E-Commerce Industry   

Amazon is another early mover that introduced 15,000 cobots named Kiva to their warehouses in 2014. Two years prior in 2012, they bought Kiva Systems, a robotics company, for USD 775 million. Since then, the number of cobot employees has tripled.

Here’s how it works. Human employees scan items and place them into the shelf-like pods. Instantly, the scanned item is available to purchase online. Kiva’s software keeps track of where each item is so that it can easily be found at the picking station, where a human employee retrieves the product for shipping. Amazon managed to rapidly increase efficiency and speed up delivery times with Kiva. They continue to incorporate AI into their services, including their drone delivery system.

Take a look at Kiva in action in the video below:

Healthcare Industry

In the healthcare industry, cobots are being incorporated to assist doctors in surgery and lighten the burden of caregivers by taking over mundane tasks. Pairing cobots and their software technology with doctors has several benefits including minimized invasiveness, exactness and reduced mistakes in surgical procedures. To date, AI and cobots have allowed doctors to access new parts of the human body for surgery, and achieve breakthrough feats the way they examine, monitor and operate on patients.

Take a look at the most innovative cobots to date in the healthcare industry:

Steel Industry

POSCO is a leader in applying AI to the steel production systems. In 2015, they developed an exoskeleton cobot designed to enable workers strength beyond their own. The cobot is made of carbon fiber, aluminum and steel, and was first tested with Daewoo Shipbuilding and Marine Engineering, at their facility in Okpo-dong. The cobot enabled shipyard workers to easily lift heavy pieces of metal weighing around 70 pounds, and researchers are working to allow workers to lift up to 200 pounds effortlessly.

Watch the video to find out more:

Aside from cobots, POSCO also incorporates AI and IoT into their smart factory, the first smart steel factory in the world, and continues to research and develop smart solutions to optimize the production processes.

Continued automation and the incorporation of cobots in the workplace is inevitable, and governments and institutions will have to provide resources for people to fill jobs tailored to working with cobots or those that cannot be replaced in any way by robots and AI. What’s ahead is figuring out how to think of cobots as coworkers that will only enhance one’s work. Also, companies have to figure out how to fully realize the potential for increased economic productivity through this type of cobot co-work that will lead to the development of more innovations, technology and ultimately, new business ventures.

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POSCO was recently named by WSD as the world’s most competitive steelmaker for the seventh time in a row during the past five years. Apart from receiving credit for technological innovation and human resource management, POSCO has also been making continuous socio-economic and environmental efforts side by side with its stakeholders to create value and bolster mutual growth. The recently published 11^th annual sustainability report sums up these efforts. Let’s have a closer look.

About the 2013 Sustainability Report

[Download the 2013 Sustainability Report HERE]

First, the Report includes both financial and non-financial data.

POSCO and listed subsidiaries within the POSCO Family*, or those having more than KRW 1 trillion in sales are included in the consolidated ESG(environment, society, governing structure) data, which was verified by Samil PricewaterhouseCoopers.

Second, we report ‘Key Issues’ which have high ranks in the materiality test.

The report also includes specific information on the issues selected from the materiality test in order to include detailed information that the stakeholders want to know.

Third, we gathered the opinions of internal and external stakeholders and reflected them in the materiality test before publishing this Report.

Previously, there were some difficulties in reflecting stakeholders’ opinions because they were gathered in the course of preparing the Report. For this Report, however, we listened to stakeholders’ opinions from the planning stage and linked them to the materiality analysis process.

Fourth, we reported the cases of CSV (Creating Shared Value), ‘a management principle that seeks opportunity for business in solving social problems’.

We marked CSV cases separately within the contents describing POSCO’s management activities, including building a Saemaul Village in Ethiopia, training agricultural leaders in Mongolia, the Benefit Sharing Program, and Techno Partnership.

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Note: 2013 Sustainability Report further references

Reporting approach
The 2013 Report is based on the GRI (Global Reporting Initiatives) G4 guideline, ISO 26000, UN Global Compact, and POSCO’s unique report publishing process. The financial information reporting standards and definitions are based on the K-IFRS (Korean International Financial Reporting Standards.

Period of reporting
POSCO publishes the report annually. This Report contains information from January 1st, 2013 to December 31st, 2013. In some instances information up to April 2014 were included. The corporate governance section is based on the decisions made by the Board of Directors at the meeting held on March 14, 2014.

Scope of reporting
The Report contains the sustainability activities and performances of Pohang Steelworks, Gwangyang Steelworks, Pohang headquarters and the Seoul office. The ESG (Environment, society, governing structure) data covers POSCO and nine POSCO subsidiaries that are listed in the stock exchange or have more than KRW 1 trillion in sales. Information on shareholders, investors, and new green growth businesses cover the whole POSCO subsidiary.

Independent assurance
Assurance on this Report was conducted by Samil PwC, an independent assurance institution, in order to assure stakeholders on the credibility of the major data and publishing process of the Report. Assurance was conducted in accordance with ISAE3000 and AA1000AS Type II.

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POSCO 2013 Highlights

Why don’t we take a look at what efforts POSCO made during the year 2013, and their results?

[Click titles for details]

1. POSCO WINS THE ‘WORLD’S MOST COMPETITIVE STEELMAKER’ AWARD FOR 4 CONSECUTIVE YEARS!

On February 1, POSCO was named “The World’s Most Competitive Steelmaker” for the fourth time in a row. This was the result of the evaluation conducted by WSD (World Steel Dynamics) on 34 of the world’s steelmakers in 23 categories including production capacity, profitability, and technology innovation. POSCO had held the top position from 2002 through 2004, then was surpassed by Russian and Indian steelmakers, but regained top spot again in 2010 after 6 years, and has hence remained no.1 for 4 consecutive years.

2. POSCO RENOVATES WORLD’S BIGGEST FURNACE AT GWANGYANG STEELWORKS!

On June 7, after 108 days of repair works, POSCO held the blow-in ceremony for Gwangyang Steelworks’ No.1 blast furnace that was renovated as the world’s largest blast furnace. After its third enhancement made in 2013, Furnace 1’s volume now reaches 6,000 bigger than the previously world’s largest furnace (5,800) built by Shagang Group in China. The Gwangyang blast furnace applies a new cooling system, a production technology involving oxygen enrichment, and reduces fuel consumption by using high-temperature reducing gas efficiently, achieving a cost effective and environmentally friendly process.

3. DAEWOO INTERNATIONAL STARTS PRODUCTION AT MYANMAR GAS FIELD

On June 22, Daewoo International successfully began production at the Mya gas field, located in the northeastern sea of Myanmar. The Myanmar gas field project came in full swing when Daewoo International signed a PSC with the Myanmar Government. The gas produced was passed through the subsea pipeline, subsea production facility, and the production platform to check the gas production and treatment facility, and began selling to CNPC, a Chinese state-owned petroleum company from the gas selling location in Kyauk Phyu, west of Myanmar, since July 2013!

4. DECLARATION OF THE NEW ETHICAL MANAGEMENT PRINCIPLES

Celebrating the 10th anniversary of the proclamation of POSCO’s Code of Conducts, POSCO held a declaration ceremony for the New Ethical Management principle. The new principle, dubbed “Happiness Management” presents the vision “Let’s Come Together to Build a Better World!” and its 3 core values – future, common good, and win-win.

5. POSCO INCLUDED IN THE SUSTAINABILITY INDEX FOR NINE CONSECUTIVE YEARS!

For the first time in the steel industry, POSCO was included in the Sustainability Index by SAM-Dow Jones as a leading company for 9 consecutive years! In the 2013 evaluation, 31 steelmakers were evaluated, and POSCO received 77 points – 3 points higher than the previous year – and was selected as an outstanding company for the 9th consecutive year.

6. FIRST EXPORT OF FINEX TECHNOLOGY

On September 22, POSCO signed an MOA with state-owned Chongqing Iron and Steel Company, to construct a FINEX integrated steel plant. POSCO and Chongqing will each invest 50% in the joint project to build the FINEX integrated steel plant with an annual capacity of 3 million tons.

7. 1% FOUNDATION INAUGURATED!

POSCO’s 1% Foundation was officially inaugurated on November 18. The 1% Foundation was first started in October 2011, where executives and management-level personnel donated 1% of their salaries. POSCO and 26 POSCO Family companies participate in the campaign. The Foundation will implement sharing campaigns using the KRW 4 billion’s worth fund raised through donations during 2013 and the company’s matching grant.

8. INTEGRATED STEEL PLANT IN INDONESIA BEGINS OPERATION

On December 23, POSCO held the blowing-in ceremony for the 3 million tons/year blast furnace in Cilegon, Indonesia. Krakatau POSCO is expected to produce 1.8 million tons of slab and 1.2 million tons of thick plates annually. Krakatau POSCO will secure the domestic sales network which can fetch higher prices than exporting the products, and plans to sell 1.5 million tons of slab and 600 thousand tons of thick plates in the Indonesian market during 2014.

POSCO’s vision is to become a company “loved by the people and admired by the world.” As CEO Ohjoon Kwon promised in his foreword to this report, POSCO will fulfill its duties and obligations as a corporate citizen. As a company built upon the very wishes and aspirations of the nation, POSCO will remember that it is forever in debt to the people and act accordingly. From the endeavors in preserving biodiversity to sharing with those in need through the 1% foundation, POSCO’s corporate philosophy will always be about the betterment of humanity.Thank you.

The Lloyd’s Register Quality Assurance (LRQA) certified POSCO with its energy management system standard ‘ISO 50001’. POSCO has now become the first Asian steel company to receive the title. Apart from POSCO, Thyssen Krupp is the only steel company around the world with ISO 50001.

POSCO is now certified with its quality, environmentally friendly and energy management with ISO 9001, ISO 14001 and ISO 50001.

ISO 50001 was established in June 2011 to monitor carbon energy management of industry to minimize the pollution.

ISO 50001 watches establishing, implementing, maintaining and improving of an energy management system. Then, it awards the firms achieving continual improvement of energy performance.

POSCO has been trying to acquire ISO 50001 by forming a task force team of the firm’s 40 energy managers. They managed to train the onsite core-staff and prepared to respond to the evaluation process.

At the same time, POSCO, with the experts in and outside of the company, developed ‘Energy Saving Tool’ program as well as establishing a protocol for energy monitoring and revising operation standards over the course of the last eight months. In addition, the LRQA praised the ‘Energy Saving Tool’, which has been operative since 2000, as the ‘POSCO Style’ energy management system.

The certification awarding ceremony was held at POSCO center on 9th October, 2012. Gee-Woong Sung, Director of POSCO’s environmental energy department, and Sang-Keun Yoo, head of the LRQA Korea, attended the event.

POSCO will continue to maintain and develop its advanced management system through restless onsite management and evaluation to meet global standard.