POSCO Chemical published a Corporate Citizenship Report 2021 on July 5 and announced the company’s roadmap to carbon neutrality in the battery materials business by 2035.

 

Carbon neutrality is a state of net-zero carbon dioxide emissions, the main cause of global warming, by implementing diverse activities to that end. Many governments and leading companies around the world aim to achieve carbon neutrality by 2050.

 

POSCO Chemical plans to become carbon neutral in the battery materials business by 2035. The move is aimed at securing a competitive edge in ESG by responding to calls from major car manufacturers and battery customers for the production of environment-friendly materials and to take on an active role in addressing climate change issues as a leading supplier of high performance battery materials.

 

Specifically, POSCO Chemical joined RE100 and intends to switch all electric energy used in cathode and anode production to 100% renewable electricity by 2035. The company will also significantly improve energy efficiency by reducing emissions through the introduction of carbon capture, usage, and storage (CCUS) technology in all business areas including not just battery materials, but also lime chemicals and refractories, converting to low-carbon raw materials and fuels, and improving the work process.

 

Considering that a considerable amount of CO2 is emitted during the process due to chemical reactions of raw materials when manufacturing quicklime in other business areas besides battery materials, POSCO Chemical plans to achieve net-zero emissions in phases until 2050.

 

The 2021 report puts the spotlight on climate change governance, management strategies, risk management, measurement criteria, and target setting by applying international recommendations for information disclosure, including recommendations by the Task Force on Climate-Related Financial Disclosures (TCFD).

 

POSCO Chemical is already introducing more solar power facilities in cathode and anode plants in Korea and abroad and plans to embrace renewable energy like hydroelectric power at Ultium CAM, a joint cathode venture with GM to be launched in North America. So far, POSCO Chemical has made a variety of efforts to deliver eco-friendly materials, earning CFP labeling certification on battery materials for the first time in Korea to transparently manage carbon emissions, and acquiring resource circulation certification for graphite recycling.

 

In addition, POSCO Chemical revealed different accomplishments regarding ESG, such as the formation of a sustainable supply chain, enhanced governance, and safety management.

 

For improved soundness of the supply chain, POSCO Chemical is using 100% responsible minerals, verified to be free of human rights violations and pollution, as raw materials for cathodes and anodes. The company has augmented transparency in the supply chain, by establishing a tracking system for responsible minerals from the mining of raw materials to the production of finished cars, and by forming an internal consultative body for responsible mineral management.

 

Moreover, POSCO Chemical is striving to promote mutual prosperity with its business partners by offering management consulting to help suppliers strengthen their ESG capabilities and providing incentives to companies joining the corporate citizenship initiative.

 

The company is also actively advancing the corporate governance by bolstering BOD-oriented management, increasing the number of internal and external directors from six to nine starting this year. An audit committee has also been put in place under the BOD to enhance financial soundness and to independently supervise business activities. The Outside Director Recommendation Committee was also established to increase transparency in the governance structure.

 

POSCO Chemical also advanced a safety management system. The Chief Safety and Environment Officer (CSEO) was appointed as an internal director for the first time and an internal Safe Environment Innovation Committee is held once a month through which participants share the plans and results of safety management activities to implement practical measures for safety management.

 

POSCO Chemical CEO Min Kyung-zoon said in the CEO message that, “POSCO Chemical took a step forward as a global materials producer by converting the business portfolio into environment-friendly materials ahead of the competition. We will secure competitiveness in ESG management by making bold investments in green business and R&D so we can take the lead in the battery materials industry and respond to the calls of our stakeholders and customers.”

 

Min Kyung-zoon also said, “We will pioneer the battery materials industry by making our ESG performance a competitive advantage.”