Scored evidence collected on an entity's engagement with land-use and circular economy policy will now be fully weighted into the final calculations for each entity's metrics. This follows a two year process where InfluenceMap has evolved its methodology to collect evidence on corporate and industry engagement with these key areas of climate-related policy.
We have strengthened the algorithm for discounting the impact older evidence on an organization's top-line metrics. Evidence from within the last two years is weighted the strongest and then gradually weighted out of the scoring calculations as it gets older. All evidence that is 5 years or older is completely removed from the scoring calculations. Users will still be able to view older evidence items that are archived the scoring matrix below, but these will not be impacting the organization's current scores.
In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.
Climate Policy Engagement Overview: POSCO Holdings and its subsidiaries appear to be actively engaging with climate regulations with a mixture of positive and negative positions in South Korea, and with negative positions in the EU. POSCO states top-line support for carbon neutrality and the need for climate regulations, yet appears to take a more negative stance on specific policies including the Korean Emissions Trading Scheme (K-ETS) and the EU Carbon Border Adjustment Mechanism (EU CBAM). On the energy transition, POSCO takes mixed positions, supporting renewable energy, but also advocating for a role for fossil gas.
Top-line Messaging on Climate Policy: POSCO expresses top-line support for carbon neutrality and the need for climate regulations, although in some instances it is unclear whether this support is in line with IPCC-recommended reduction pathways. In its 2023 FSS report, the company supprted South Korea's 2050 Carbon Neutrality target in line with the IPCC’s 1.5°C target. However, on its YouTube channel in May 2024, POSCO appeared to support carbon neutrality, but was unclear whether it supported near term-action to achieve this. In addition, in its 2023 CDP Climate Change response, POSCO supported increased government-led investment and financial incentives to respond to climate change, but it was uncelar if the company supports the need for other forms of regulation.
Engagement with Climate-Related Regulations: POSCO has generally negative engagement with climate policy, partiuclarly on the EU Carbon Border Adjustment Mechanism (EU CBAM). In July 2023 comments on the EU Draft Implementing Regulation for CBAM submitted to European Commission, POSCO did not support the provisions for steel imports to report indirect emissions. In a March 2024 POSCO Newsroom article, POSCO appeared to not support the EU CBAM for the steel sector, calling for support from Korean government to repond against EU CBAM becoming a system that discriminates against imported steel products.
In its March 2022 Issue Report, POSCO Research Institute (POSRI) appeared to have negative position on Korean Emissions Trading Scheme (K-ETS), but InfluenceMap found no evidence of engagement by POSCO with the K-ETS in 2023-2024.
Positioning on Energy Transition: POSCO takes mixed positions on the energy transition, supporting renewable energy policies as part of steel decarbonization efforts, but also advocating for a role for fossil gas. In an article in the Monthly Iron and Steel Paper published by the Korea Iron and Steel Association (KOSA) in March 2024, POSRI supported the need for policies to develop renewable energy and green hydrogen to decarbonize the steel industry. However, in an October 2023 Electimes article, POSCO International supported a continued role for fossil gas in the energy mix, but without clearly specifying timelines in line with IPCC guidance.
POSCO also takes mixed positions on the decarbonization of the steel industry, generally advocating for government support but whilst promoting the development of low-carbon technologies to support a continued use of blast furnaces. In its 2023 CDP Climate Change response, POSCO emphasized the need for increased policy support to decarbonize the steel industry. Also, in a July 2023 POSCO Newsroom article, POSCO supported the need for policies to increase technologies such as hydrogen reduction steelmaking to decarbonize steel production. However, in its 2023 Sustainability report published in June 2024, POSCO appeared not to support a full transition from the traditional blast furnace method, instead supporting the development of bridge technology to reduce carbon emissions in blast furnaces. In May 2023, POSRI published an Issue Report calling for policy support to develop and commercialize CCUS technology for use in blast furnaces, but did not clarify its position on the need for a long-term transition to electrification and low-emission fuels in steelmaking.
Industry Association Governance: POSCO has disclosed a list of its industry association memberships in its 2023 Sustainability report, but has not published a review of its industry associations' climate policy positions and engagement activities. The Chairman of POSCO, Chang In-hwa, is the Chairman of the KOSA, which has engaged negatively with climate policies in South Korea and the EU, including the 2030 GHG emissions reduction target (NDC), the Korean Emissions Trading Scheme (K-ETS), and the EU Carbon Border Adjustment Mechanism (EU CBAM).
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically.
This summary was last updated in Q3 2024.