POSCO Future M Publishes Second 'Responsible Minerals Report' Highlighting Ethical Supply Chain Management

Utilization of 'Responsible Minerals' Free from Human Rights Violations and Environmental Damage Concerns

POSCO Future M published its second Responsible Minerals Report on the 10th. The Responsible Minerals Report is a report that identifies whether there are human rights or labor issues in the mineral mining process and discloses the results of checking the raw material supply chain management process to the public.

POSCO Future M stated in this report that it uses minerals free from concerns such as funding of conflict groups, human rights violations, and environmental destruction, and continuously builds a supply chain system from an ESG management perspective. POSCO Future M previously published this report in November 2021 as the first domestic battery material company to do so.

Disputes Related to Mineral Mining and High-Risk Areas
[Image Source=POSCO Future M]

Since joining the Responsible Minerals Initiative (RMI) in 2020, the first in the steel industry, POSCO Group has formed a group-level task force (TF) to organically manage responsible minerals. RMI is a global consortium that conducts origin tracing investigations and continuous monitoring of producers for raw materials such as the four major conflict minerals (gold, tin, tantalum, tungsten) and cobalt.

For cobalt and tungsten, which are cathode raw materials and classified as conflict minerals, POSCO Future M sources raw materials only from mines and suppliers verified by RMI. The number of RMI-verified suppliers expanded from five in 2021 to six in 2022. For minerals such as lithium, nickel, manganese, and graphite, which do not yet have an RMI certification system, POSCO Future M has established and operates an internal evaluation process equivalent to RMI standards.

POSCO Future M designated 211 risk sites (as of 2021) in 25 countries where issues such as human rights violations, direct or indirect funding of conflict groups, money laundering, and bribery related to responsible minerals frequently occur. It established management policies to prevent suppliers from using raw materials from small-scale artisanal mines in these areas. From 2022, the risk areas were expanded to 28 countries and 285 sites, and the evaluation process was strengthened.

Cathode material raw materials and batteries. (From left) Lithium, cylindrical battery, nickel, cathode material, cobalt
[Photo by POSCO Future M]

POSCO Future M has also established its own 'Responsible Minerals Council.' This council efficiently implements responsible mineral policies and assesses and manages potential risks. To build consensus on responsible mineral policies, POSCO Future M provides training for employees and suppliers. This training, which was conducted once a year in 2021, was expanded to once every six months starting in 2022.

Gu Ja-hyun, Head of Purchasing Contracts at POSCO Future M, said, “The Responsible Minerals Report systematically organizes POSCO Future M’s mineral purchasing policies and supply chain management status. Based on mineral purchasing policies that consider the environment and human rights, we will build a sustainable supply chain and leap forward as a leading company driving the global battery material industry.”

The newly published Responsible Minerals Report can be found in the ESG menu on the POSCO Future M website.

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