POSCO Future M rated 'A' for ESG management

An employee of POSCO Future M, center, assembles a model electric vehicle with children at a school in the southeastern city of Pohang, Aug. 16. Courtesy of POSCO Future M

POSCO Future M has achieved an environmental, social and corporate governance (ESG) rating of “A,” an upgrade of one level from a year earlier, from Korea’s most influential ESG ratings agency, the company said Monday.

The Korea Institute of Corporate Governance Sustainability (KCGS) upgraded the firm’s ESG rating this year, speaking highly of its efforts to fulfil carbon neutrality and build green supply chains here and abroad. The institute releases its ratings for listed firms here each year.

The battery components manufacturer was recognized for giving more concrete shape to its vision to achieve carbon neutrality by 2050. Toward that end, the company widened usage of renewable energy and introduced more energy-efficient equipment this year.

Specifically, the company received A ratings for its environment and corporate governance policies. It was also graded A+ in the area of social fulfillment, up by two levels from the previous year.

The company offered a range of consulting activities to enhance its overall ESG capabilities to its major suppliers. It also expanded its supply chain focusing on companies that have received green certification.

Last year, the POSCO subsidiary also received an international information security standard, ISO 27001, and built tighter security management systems to protect core technologies, it said. In September, the company also secured ISO 37301, which includes detailed requirements for compliance management systems, a first among local battery materials producers.

The company has pledged to strengthen its ESG efforts across the globe and display its efforts to build more systemic structures for ESG management.

POSCO Future M plans to clinch more large-scale supply contracts with global battery makers and carmakers.

“We will keep enhancing practical and objective ESG capabilities, and expand establishment of joint ventures abroad, so as to attract more attention from our global clients,” a company official said.