POSCO International Declares 'NDPE' for Palm Business Environmental and Social Policy... First Domestic Company

Emphasis on Environmental Conservation and Management, Human Rights Protection and Respect, and Stakeholder Communication

A view of the palm plantation operated by POSCO International in East Papua Province, Indonesia (Photo by POSCO International)

[Asia Economy Reporter Kim Ji-hee] On the 1st, POSCO International became the first domestic company to declare an environmental and social policy (NDPE policy) for its palm business. POSCO International, which established a corporation in Papua, East Indonesia in 2011, produces approximately 80,000 tons of palm oil annually as of last year.

The newly declared 'NDPE (No Deforestation, No Peat, No Exploitation) policy' is a stringent environmental and social policy adopted by major international palm oil distribution companies. As a global integrated business company, POSCO International proactively declared this policy to align with international trends and develop its business sustainably, thereby creating virtuous economic and social value cycles.

The NDPE policy consists of ▲environmental conservation and management ▲human rights protection and respect ▲stakeholder communication. It applies not only to POSCO International’s palm oil business but also to suppliers of palm fruit, palm oil, and refined oil.

In particular, POSCO International’s NDPE policy has advanced beyond existing policies in terms of environmental conservation and management. It is characterized by the development and implementation of a program to protect forests equivalent to the area of developed plantations. It prohibits development in high conservation value areas, high carbon stock and peatland areas (organic matter deposits in the pre-coal stage), and continues efforts to reduce greenhouse gas and pollutant emissions. For human rights protection, it prioritizes the protection of community and worker rights in accordance with international standards and plans to strengthen win-win programs for the economic independence and job creation of local communities.

A view of the palm plantation operated by POSCO International in East Papua Province, Indonesia (Photo by POSCO International)

POSCO International has published the full text of the NDPE policy declaration and the 2020 implementation plan on its website and plans to publish related result reports annually.

This NDPE policy is part of POSCO International’s ongoing efforts to coexist with local communities. Since the beginning of its business in 2011, POSCO International has worked to improve residents’ lives in various fields.

With the establishment of the Indonesian corporation, it created employment effects for about 3,500 people in the Papua region, where job opportunities are scarce, and provides educational opportunities to children of local residents who were previously excluded from education benefits through the establishment of kindergartens and elementary schools. Additionally, it has established three medical clinics within its business sites, supporting approximately 25,000 local residents annually to receive free medical benefits. Especially since 2017, it has conducted customized free medical treatments twice a year for about 2,000 local residents annually, together with domestic medical specialists, covering family medicine, obstetrics and gynecology, pediatrics, orthopedics, and more.

A POSCO International official stated, "We proactively announced this environmental and social policy to actively participate in solving global environmental and social issues and to establish the palm oil business in Indonesia as a global top-level business coexistence model. We will continue to fulfill our social responsibilities and duties as a global corporate citizen in the countries we enter and strive to create a sustainable ecosystem."

This content was produced with the assistance of AI translation services.