Dear stakeholders,

In March 2022, POSCO embarked on a new journey by transitioning to a holding company governance scheme and to march forward towards ‘sustainable centennial company - POSCO.’
Globally, industries are driving transformation prompted by the shift to low-carbon circular economies, demands for stakeholder capitalism, redefined global supply chains and digitalization. Confronted with these demands as a steelmaker, it has become imperative to seek enhanced flexibility and agility in the ways we do and manage our business.
As a material, steel has been integral to the development of human civilization and will continue to serve a crucial role in building safe and sustainable societies. In the post-pandemic era, it has become more important for the steel industry to operate sustainably and with social accountability. The environmental, social and governance (ESG) practices that we engage in today will define our future competitiveness.

Named the most competitive steelmaker for 13 consecutive years by the World Steel Dynamics (WSD), POSCO has demonstrated differentiated competence for over 5 decades, supported by remarkable productivity and premium value-add product offerings.
However, we intend to strive for more. Aligned with the Corporate Citizenship management philosophy, POSCO will continue to innovate and transform in search of more advanced ESG initiatives to build a better future together with our stakeholders. By consistently supporting and monitoring ESG activities, we will generate a “business model where social responsibility and financial performance reinforce each other.” To make good on these goals, Corporate Citizen POSCO makes new commitments.

First, we will achieve net zero by 2050 and help build a low carbon, circular economy.

In doing so, technological expertise and know-how earned from the past half-century will serve as valuable asset to propel forward our transition to low-carbon ironmaking processes. In the short-to-mid term, we will install electric furnaces and increase renewable energy use. On the long term, HyREX, a proprietary hydrogen-based ironmaking technology, will revolutionize the way POSCO steel is produced. Our climate efforts also include driving decarbonization across the global steel industry. The Hydrogen Iron & Steelmaking Forum (HyIS), the world’s first global conference on hydrogen-based ironmaking, will promote technological exchanges and collaboration between diverse players in the value chain.

Second, POSCO operations will put safety above all else.
Our new and improved standard processes include risk identification activities and preventive actions, which were the first and foremost consideration in budget allocation. To ensure worksite safety, smart factory technologies have been integrated, and artificial intelligence (AI) solutions and smart wearable devices have been provided to help safeguard our staff from potential harm.

Lastly, POSCO spurs innovation in its organizational culture by focusing on key qualities: Soft, Skillful, and Smart. These traits are translated into a “flexible organizational culture (Soft)” that enables creativity and collaboration, a “skill-based organizational culture (Skillful)” operated based on the high professional competence of our members, and “smart acceleration (Smart)” not only in the steelmaking process but also in all business operations such as individual employees' work, safety, and customer connection.
It is this new corporate culture that will transform our place of work into gratifying work spaces and lay the groundworks to build a centennial company. As a member of POSCO Group, we will strive to generate greater corporate value by realizing our audacious goal and vision to become a “Global Business Leader for the Sustainable Future of Humanity.”

We look forward to your continued support and interest in POSCO's innovation and change for years to come.