POSCO, First Steel Company Worldwide to Join 'VBA'... Leading Global ESG as a 'Corporate Citizen'
Steel Company Becomes World's First VBA Member
Directly Participates in Developing ESG Global Standards
[Asia Economy Reporter Hwang Yoon-joo] POSCO has become the first steel company to join the global corporate alliance 'VBA (Value Balancing Alliance).' VBA is an alliance established in 2019 to develop global ESG (Environmental, Social, and Governance) standards.
VBA aims to develop global standards that measure ESG performance in monetary value and reflect it in accounting. VBA is recognized as a leading organization in the development of ESG standards, having secured and carried out the 'Green Accounting Project' promoted by the European Union (EU) to establish standards for measuring and disclosing the environmental impact of corporate activities. Twenty-four global companies, including BASF of Germany, the chair company, BMW, BOSCH, and SK, are active members of VBA.
Since declaring its corporate citizenship management philosophy in 2018, POSCO has been measuring and managing corporate citizenship practice outcomes in monetary value since 2019. Last year, POSCO developed a solution to measure the mutual impact between the environment and corporate activities from four perspectives: cost, revenue, carbon emissions, and carbon reduction performance. It also established a system to analyze and manage carbon emissions by production process and the carbon reduction performance of eco-friendly steel products.
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Through joining VBA, POSCO plans not only to directly participate in the development of global ESG standards but also to refine its corporate citizenship value measurement system based on VBA’s measurement framework and methodology, aiming to develop it into a global standard model for the steel industry in the future. Additionally, POSCO intends to actively utilize the VBA network to closely monitor global trends related to ESG standard establishment and proactively respond to initiatives such as the International Sustainability Standards Board (ISSB)’s formulation of global ESG disclosure standards.
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