POSCO Holdings Selected as an Outstanding Company in Global ESG Evaluation

ISS Quality Score ESG All Areas Rated 1st Grade
Sustainalytics Industry Top Rated Award

Posco Center, Gangnam-gu, Seoul [Image source=Yonhap News]

POSCO Holdings has been selected as an outstanding company in ESG (Environmental, Social, and Governance) management performance by global ESG rating agencies such as ISS and Sustainalytics.

In February, POSCO Holdings received a Grade 1 rating across all ESG areas in the Quality Score evaluation by ISS (Institutional Shareholder Services), the world's largest proxy advisory firm. ISS's Quality Score evaluates the ESG policies, governance, and disclosure details of all companies worldwide every month and awards a Grade 1 badge in each ESG category to the top 10% of companies.

In the ESG risk assessment by Sustainalytics, an ESG bond review agency, POSCO Holdings' risk score significantly improved from 37.5 points (High Risk) at the end of 2022 to 24.4 points (Medium Risk) at the end of 2023, earning the '2024 Industry Top Rated' badge. This badge is awarded only to companies ranked within the top 5% globally by industry.

On the environmental (E) front, proactive efforts such as the introduction of electric furnaces and investment in HyREX for transitioning to a low-carbon production system were highlighted. On the social (S) side, activities such as the operation of the Group Safety Council, Group Human Respect Council since 2022, and the establishment of the Group Supply Chain Management Council attracted attention.

In particular, since the launch of the holding company in March 2022, POSCO Group has established and operated the 'ESG Session' within the board of directors, the 'Group ESG Council' as the group’s top management meeting body, and the 'Group ESG Working Council' focused on working-level staff. The group-level ESG governance (G) was significantly strengthened by reviewing and improving the group’s ESG management performance and issues quarterly at the holding company’s board meetings, earning recognition for these achievements.

Meanwhile, in last year’s evaluation by the Korea ESG Standards Institute, POSCO Holdings received an A+ rating, and all listed companies within POSCO Group, including POSCO International, POSCO Future M, POSCO DX, POSCO Steelion, and POSCO M-Tech, received an 'A' rating, confirming the group’s ESG management capabilities domestically. POSCO Holdings plans to further strengthen the ESG governance system centered on the holding company and actively communicate with stakeholders by holding ESG investment briefings targeting global ESG rating agencies and investors to create ESG premium value.

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