Posco Future M joins top ESG performers in Asia Pacific

Posco Future M employees celebrate planting a forest near its Gwangyang plant at Gyejoksan, South Jeolla Province, in November. (Posco Future M)

Posco Future M, a South Korean producer of battery materials, has newly joined the 2023 Dow Jones Sustainability Indices Asia Pacific Index in recognition of its commitment to sustainability and responsible business practices, the company said Tuesday.

The DJSI, published annually by S&P Global, serves as a benchmark for investors globally, evaluating companies based on their economic, environmental, social and governance performance.

The inclusion in the Asia Pacific Index positions Posco Future M among the top 20 percent of ESG-managed companies out of the 600 largest corporations in Asia and the Pacific region. This accolade follows the company's consecutive inclusion in DJSI Korea, recognizing the top 30 percent of Korea's 200 largest companies.

Posco Future M aims to reach carbon neutrality by 2050. The company has expanded its greenhouse gas management indicators to encompass not only direct and indirect emissions -- Scope 1 and -- but also other indirect emissions related to all corporate activities, including suppliers and logistics systems.

Furthermore, Posco Future M has emphasized transparent communication with stakeholders, such as publishing its Corporate Citizenship Report and ESG Policy Book. These documents detail the company's ESG efforts and achievements.

In its supply chain management, the company prioritizes the use of responsibly sourced minerals, ensuring that its primary products -- anode and cathode materials -- are free from human rights violations.

The company's ESG management was also acknowledged in the 2023 ESG Assessment by the Korea Institute of Corporate Governance and Sustainability, where it received an upgraded overall grade of A, reflecting a year-over-year improvement.

Looking ahead, Posco Future M aims to further enhance its ESG capabilities, aligning with the growing trend of collaboration with global battery and vehicle manufacturers, to meet the evolving expectations of various stakeholders in the sustainability domain.

By Moon Joon-hyun(mjh@heraldcorp.com)