POSCO Int'l becomes first Korean trading company to issue ESG bonds

By Kim Hyun-bin

POSCO International is set to become the first trading company in Korea to issue ESG bonds, the company said Sunday. ESG stands for environment, social and corporate governance and is increasingly being used as a benchmark determining a company's eligibility for investments.

POSCO International logo

Out of a total 150 billion won in corporate bonds set to be issued by POSCO International, 80 billion will be allocated towards ESG.

The money raised by the ESG bonds will be used to invest in the renewable energy sector, including wind and solar power and biomass.

POSCO International recognized the importance of ESG management early on and has been communicating with its affiliated companies to create more value in that area.

Last March, the company announced its participation in a project called “No Deforestation, No Peat, No Exploitation” (NDPE) as part of its eco-friendly management. Recently, affiliate POSCO SPS started manufacturing vehicle drive motor cores and fuel cell divider plates to help counter climate change and reduce the impact of combustion engines on the environment.

To increase the transparency of its ESG standards, POSCO International has been taking part in the Korea Corporate Governance Service (KCGS) ESG index and received an A+ rating, winning the grand prize awarded to outstanding ESG corporations.

The company also won the top award from the Korea Standards Association (KSA) for best management.

“A successful ESG bond demand forecast, sustainable business structure and future growth potential resulted in positive evaluations from our investors,” a POSCO International official said. “To accelerate ESG management, we will come up with specific measures to further solidify our leading company position in the field.”