POSCO Chemical Supports ESG Management for Small and Medium Partner Companies
Business Agreement with Credit Rating Agency eCredible to Support ESG for Partner Companies
[Asia Economy Reporter Hwang Yoon-joo] POSCO Chemical is supporting the enhancement of ESG (Environmental, Social, and Governance) capabilities of small and medium-sized partner companies.
On the 5th, POSCO Chemical signed a "Business Agreement to Support ESG Management for Partner Companies" with the corporate credit rating agency eCredible.
POSCO Chemical will systematically support partner companies in strengthening their ESG competitiveness through capability assessments, management consulting, and capacity-building programs. This aims to practically assist small and medium-sized enterprises struggling to adopt ESG management due to budget and manpower shortages, and to enhance business competitiveness by strengthening ESG capabilities across the entire supply chain.
First, POSCO Chemical will apply the evaluation model developed by eCredible to systematically diagnose the ESG capabilities of its partners. ESG capability assessments in the areas of environment, society, and governance will be conducted for major partner companies, and related risks will also be verified when registering new suppliers.
The evaluation consists of a total of 50 items: 15 in the environmental category including greenhouse gas emissions and use of eco-friendly materials; 25 in the social category including safety investments and ethical management; and 10 in the governance category including related-party transactions and social reputation. POSCO Chemical will fully cover the costs incurred for the evaluation.
Based on the evaluation results, POSCO Chemical plans to assist partner companies in raising their ESG management levels by having relevant departments and experts in legal affairs, environment, safety, finance, and labor help establish capacity-building plans and provide consulting and management advice.
Additionally, POSCO Chemical has been implementing the "Corporate Citizen Participating Company Purchase Preference System" since 2020 to encourage ESG management among partner companies. This system awards evaluation points during supplier selection and provides a 5% incentive on bid price calculation for social enterprises, job-leading companies, family-friendly certified companies, and green-certified companies.
Recognizing these efforts to strengthen ESG across the entire supply chain, POSCO Chemical received the "Excellent" grade for five consecutive years in the "2020 Win-Win Growth Index Evaluation" announced by the Win-Win Growth Committee on September 15.
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Kim Joo-hyun, Head of the Planning Support Division, stated, "We will jointly practice ESG management with partner companies to enhance the competitiveness of the entire supply chain. Based on POSCO Group’s corporate citizenship management philosophy of growing together, we plan to actively promote various win-win growth activities that practically support small and medium-sized partner companies."
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