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Strategy and Policy

With ESG and sustainability as our core competitive edge,
we are making a leap to become a better company for a better world.
ESG Strategy
POSCO FUTURE M has established and implemented a quality management policy to provide our customers with the best products and services. We emphasize the importance of quality management in product manufacturing and sales, with a focus on customer satisfaction, and aim to improve quality and secure safety throughout the process. We are making efforts to establish a company-wide quality management system and enhance customer trust by strengthening individual quality management systems, continuously pursuing quality improvement activities, and cooperating and communicating with customers.
CEO Message
In 2003, POSCO FUTURE M declared our pledge for Business Ethics. Since then, we have embraced ethical business practices by making multiple revisions to our Code of Ethics.
Recently, we’ve made another improvement to the Code of Ethics to affirm ethical principles as our highest value in corporate governance, and to induce our employees to conduct responsibly and to lead by example. Integrity, fairness, and trust that stands on these two values have been the greatest asset that made POSCO FUTURE M what it is today. They will remain the backbone of the company as we embark on our journey to shape the future.

Despite dire circumstances in and out of the country, we are expanding our business areas overseas. We have set a vision to become a global leader in the field of chemical and energy materials. The highest level of ethical standard is required for a global leader.

POSCO FUTURE M will place the highest priority on ethics in our management practices and become a top-tier company in the world. To that end, I will focus my attention on Business Ethics and spend ample resources as needed.

Keeping in mind the management philosophy of POSCO FUTURE M to choose ethical values over profit when these two values collide, we will put ethics at the forefront of our decision making process and conduct. We will strictly adhere to the zero tolerance policy which prohibits four major areas of unethical behaviors: bribery, embezzlement, manipulation of information fabrication of information and sexual misconduct violation of sexual ethics.

Fellow employees!, We must firmly establish an ethical corporate culture to be a partner of choice for key customers, a company that shareholders prefer to invest in, and a workplace our employees feel happy to work at. In this way, we can build a company that grows together with all stakeholders. Let’s make every effort to establish a clean management system founded on ethics.
Kim JunHyung
Min Kyungzoon
Code of Ethics
This code of ethics establishes the ethical values and behavioral standards that must be preserved and developed by all POSCO Group employees by inheriting the foundational spirit of patriotism in steelmaking based on sacrifice and service while reflecting the new spirit of the times

It is our unchanging value to establish a corporate image that can be trusted by all stakeholders with the highly prioritized value criteria of integrity, fairness, and honesty. As a result, POSCO enacted the code of ethics in 2003 that must be adhered to by all employees, and explicitly included UN Human Rights that proclaims support and respect for human life and dignity in 2014. At this time, we has amended the code of ethics with tighter ethical standards according to the intent of management innovation that places the highest value on ethics in management

This code of ethics consists of the preamble, followed by the Principles of Ethics that reflect compliance and responsibilities of employees regarding the code of ethics, and the Practice Guidelines that set the standard for ethical decision-making.

All employees of POSCO Group must strictly comply with the Principles of Ethics and uphold the Practice Guidelines set forth by this code of ethics in all aspects of business
Principles of Ehthics
Obligation to follow the Code of Ethics / Roles and responsibilities of employees / Penalties for the breach of the Code of Ethics
Duty of Compliance with the Code of Ethics
  • 1. We must comply with related rules and regulations in all areas of the world where POSCO is conducting business operations
  • 2. We must retain our dignity as POSCO employees and make efforts to maintain the company's reputation
  • 3. We must preserve integrity, fairness, and trust throughout all jobs and business relations
  • 4. We must not become engaged in activities in which there are conflicts of interests between the company and individuals
  • 5. We must not irrationally discriminate against other employees or stakeholders based on race, nationality, gender, age, educational background, religion, region, disability, marital status, and sexual orientation, and must respect the dignity and diversity of each individual
  • 6. We must make efforts to create a safe workplace and protect the environment.
  • 7. We must be devoted to establishing an ethical culture by taking responsibility and upholding ethical conduct.

Roles and Responsibilities of Employees
1. Understanding and Complying with the Code of Ethics
- We must fully understand and faithfully comply with all aspects of the code of ethics
- Regarding situations in which there are conflicts concerning the code of ethics, decisions must be made after consulting with the department head or Righteous Management Office
- We must take responsibility for unethical conduct

2. Reporting and Consulting Unethical Conduct
- If we find out that our own or others' behavior conflicts with the code of ethics, we must immediately report to and consult with the department head or the Righteous Management Office
- We must be aware of various methods to report or consult on cases in which there are conflicts over the code of ethics

3. Roles and responsibilities of leaders
The leader must perform a key role in ensuring the competitiveness of the company by preventing and eradicating unethical conduct through ethical compliance.
리더의 역할과 책임1
(1) Decision making The leader has the obligation to make decisions with ethics being the top priority whenever the company's benefits conflict with ethics
(2) Operational accountability The leader possesses unlimited liability in unethical conduct, and must take supervisory responsibility in cases of unethical conduct by his or her subordinates.
(3) Job performance The leader strictly abides by the law and company regulations, and does not pursue private interests, is devoted to creating corporate values, and does not deal with corrupt stakeholders.
(4) Elimination of favors and solicitations The leader aims to eliminate all forms of favors and solicitations, and to eliminate business influence in relation to outsiders.
(5) Respect for humans The leader strives to eliminate conduct that negatively impacts respect for fellow humans, such as sexual harassment and verbal abuse in the organization.
(6) Preventing Conflicts of Interest The leader prevents conflicts of interest with any private interested party who is working for a trading partner and make an effort to eradicate unfair business practices of providing business favors for my private interests
(7) Practical activities The leader makes his or her utmost effort to play a role in raising the level of ethical practice to the highest level in the world by fulfilling the above roles and responsibilities.

The leader must prevent unethical conduct among members of the team and take the following measures in case of such conduct
리더의 역할과 책임2
(1) Training and counseling on ethics
- The leader must provide training and counseling on ethics for relevant staff.
- The leader must have relevant staff understand the importance of compliance with the code of conduct and practice of ethical conduct.
(2) Precautions for unethical conduct
- In cases where unethical conduct occurs habitually, the leader must isolate the cause, improve the process, and fundamentally take preventive measures.
- The leader must report to or consult with the Righteous Management Office immediately after receiving a report that a member has violated the code of ethics.

Penalty for Violation of the Code of Ethics
Employees violating the code of ethics may receive certain penalties, including dismissal according to related regulations. In particular, the zero tolerance policy is applied to unethical conduct such as accepting bribes, embezzlement, fabrication of information, and violation of sexual ethics

Conduct Subject to Penalty
- If one has violated the code of ethics or demanded others to do so
- If one has not immediately reported a violation of the code of ethics that he or she is aware of or is skeptical about
- If one does not cooperate with the investigation of the Righteous Management Office regarding matters that may have violated the code of ethics
- If one takes retaliatory action against other employees who reported an issue regarding ethical management
Ethical Practice Standards
  • 1. Purpose
  • 2. Scope of application
  • 3. Definition of terms
  • 4. Responsibility and authority
  • 5. Business procedures
  • 6. [Supplementary rules] Management and operation of the Code of Ethics
  • 7. Records and management

1. Purpose
Practice Guidelines lay down the scope of acceptable conduct and practice standards in relations to business execution of employees for efficient application of the Code of Ethics.

2. Scope of application
The Company practices the Code of Ethics according to these standards.

3. Definition of terms
These standards define the terms as follows.

3.1 Stakeholders
Individuals such as executives and employees who may benefit directly and indirectly by the duties they perform; customers, clients, partners, public officers in Korea and abroad, and other related organizations.

3.2 General standards
A universally reasonable standards that other employees and the general public can understand based on sound sense of judgement. A degree of something that the beneficiary can handle fairly without feeling pressured.

4. Responsibility and authority
4.1 Responsibilities of executives and heads of department
1) An executive or a head of a department must provide training or consultation constantly so that their team members can fully understand these standards.
2) An executive or a head of a department must take appropriate precautions to prevent their team members from violating these standards.

5. Business procedures
5.1 Ethical Practice and Compliance
As a global company, the Company establishes an ethical corporate culture by complying with the laws and ethics through management activities that strictly follow the basis and the principle.

1) Money and valuables
(1) Money and valuables refer to money (cash, gift cards, vouchers) and goods that can bring economic benefit.
(2) You must not provide or accept money or valuables to/from stakeholders for any reason. However, exceptions are made in the following cases.
- Gifts for promotional purposes that cost 50,000 won or less. However, agricultural and fishery products and processed products (including flowers) that cost up to 100,000 won are allowed.
- Gifts displaying a stakeholder's company logo that do not exceed 50,000 won, and gifts given to all attendees in general at events organized by stakeholders are allowed.
(Stakeholders: Individuals such as executives and employees who may benefit directly and indirectly by the duties you perform; customers, clients, partners, public officers in Korea and abroad, and other related organizations.)
- You must not request or receive gifts from overseas offices when traveling abroad for business purposes.
(3) If you have received money or valuables without being aware of this, you must return them, and if it is difficult to do so, you must report the matter to the Right Path Management Group.

2) Entertainment
(1) Entertainment means various activities for the purpose of business meetings and exchanges such as meals, drinking, golf rounds, enjoying a performance, and amusement.
(2) You must not provide or accept entertainment to/from stakeholders that exceeds 100,000 won per person. In case you must do so, you need to seek approval from the department head in advance. If the expense exceeds 100,000 won per person due to inevitable circumstances, it must be reported to the Right Path Management Group.
For those subject to the Anti-graft Act, such as public officers, journalists, and school personnel, you may provide meals that don’t exceed 30,000 won per person only for legitimate purposes that are recognized as they are for the smooth progress of a given task, social reasons or the formality. You are prohibited from offering entertainment in bars that offer hostess or host services.

3) Hospitality
(1) Hospitality means offering or accepting services including transportation, accommodation, tourism, and event support.
(2) You must not provide or receive hospitality services including transportation and accommodation that exceed general standards. However, hospitality services generally provided to all participants in events are excluded.
(3) If the expense exceeds the permitted amount due to inevitable circumstances, it must be reported to the Right Path Management Group.

4) Congratulations and condolences allowance
(1) You must not notify stakeholders of your own or your colleague’s congratulatory and condolatory events; notifying them of these events through a third party is also considered as being a notification from you..
(2) You must use a company forum to provide any notification of congratulatory or condolatory events; you must not inform them of these events by using your company mail or sending an invitation card (wedding invitations and obituaries). When providing information about congratulatory or condolatory events, the scope of relatives are limited to your immediate family: your parents and parents-in-law, grand parents and grand parents-in-law, and your children..
(3) A general standard of 50,000 won is recommended for expenditure for congratulations or condolences. No more than 100,000 won can be provided to stakeholders as a congratulations or condolences allowance, which includes the price of standing sprays and flowers..
(4) You must never receive congratulations or condolences allowance from stakeholders outside the company under any circumstance. If you have inevitably received a congratulations or condolences allowance from stakeholders outside the company, you must return the money or deposit the money to the Right Path Management Group..
(5) When requested by the Right Path Management Group, executives and employees must submit relevant materials such as a record of returned allowances received from stakeholders..
(6) You must not accept congratulations or condolence flowers from stakeholders. If you have accepted them due to unavoidable circumstances, you must not display them..
(7) Executives and employees must not hold extravagant weddings in luxury hotels, etc.

5) Solicitation/Recommendation
(1) Do not make solicitation or recommendation related to the following through an acquaintance within the company or an outsider. If you receive such solicitation or recommendation, you must register the case on the Company’s Clean POSCO FUTURE M System.
• Any requests for preferential treatment for the purchase of equipment and materials, and for diverse contracts.
• Any requests for preferential treatment for personal matters including employment, promotions, rewards and penalties, and transfers.
• Any requests for preferential treatment for excessive preferential treatment that goes beyond normal practices.
• Any requests to neglect management and supervision tasks, such as inspections and examinations.
(2) You must not make any illicit solicitation directly or through a third-party regarding tasks subject to the Anti-graft Act.

6) Pecuniary transactions
(1) You must not be involved in pecuniary transactions with stakeholders, such as lending money, offering loan guarantees, and leasing real estate.
(2) If you engage in pecuniary transactions with a stakeholder due to unavoidable reasons, you must report the case to the Right Path Management Group.

7) Event contributions
(1) You must not accept event contributions or donations from stakeholders in events sponsored by the Company, such as department events or club activities.
(2) If you use a vehicle / venue / service provided from a stakeholder for your convenience, you are deemed as having accepted donations or contributions.
(3) If you get these donations or contributions in inevitable circumstances, you must report it to the Right Path Management Group.

8) Unfair use of company budget
(1) You must not use the Company budget, such as budget allocated to meetings and project implementation, for personal purposes.
(2) For business expenses, you must use a corporate card; the card must be used only to serve the purpose, pursuant to relevant laws.

9) Protection of information and properties
(1) You must strictly safeguard confidential information or other important information.
(2) If you find out important information, you must inform a person in charge of it.
(3) You must not manipulate information or disseminate false information.
(4) You must not use Company’s equipment or facility for purposes that are not directly related to work.

10) Fair Trade
(1) You must comply with international standards, laws and regulations related to fair trade in order to not engage in unfair trade practices, including collusion related to production, price, bidding and market sharing, etc; you must compete in the market in a fair manner.
(2) You must not take advantage of a superior position to demand any form of rewards or other unreasonable gains from customers or companies you are trading with.
(3) You must respect the rights and properties of others, including intellectual properties, and not violate them to win in a trade or gain profit from it.
(4) Corporate information including that of competitors must be acquired and used by fair means.

11) Prevention of conflicts of interest
(1) Conflict of interest refers to situations when executives and employees of a company you are trading with have personal interests with you, which puts a negative impact on the performance of duties by POSCO executives and employees.
(2) You must completely exclude inappropriate requests from executives and employees of companies you are trading with, if they have private interests with you. The same applies to retired POSCO executives and employees.
(3) Do not make unofficial contact with executives and employees of companies you are trading with, if they have private interests with you. In case you have contacted them unintentionally, report it to the senior officer in your department or the Ethics Officer at the Right Path Management Office.
(4) Do not attend meetings of retired POSCO executives and employees that are not approved by the Company.
(5) Do not join a group for retired POSCO executives and employees before you retire. If you are already a member, report to a senior officer in your department and leave the group.
(6) If you have private interests with executives and employees of companies you are trading with, consult your senior or the Ethics Officer, and follow the actions to be taken, such as job reassignment.
(7) Do not engage in unfair trade, including signing of an unfair trade contract, purchasing products at a higher price, favoring certain companies in biddings, and leaking of trade information in advance by giving preference to a specific individual or a company for reasons of private interest.
(8) Prevent conflicts of interest with POSCO and the POSCO Group even after retirement.

5.2 Work-life balance
The Company seeks the development of both individuals and the Company through work-life balance. The Company creates a happy workplace by establishing a corporate culture of respect towards one another.

1) Pursuit of work-life balance
(1) We promote improved quality of life by offering welfare benefits that help stabilize the living conditions of employees.
(2) We support employees by helping them to achieve their goals and assist them to work flexibly in terms of time, place, and means.

2) Provision of opportunities for education and growth
(1) We create a work environment and systems that promote creative thinking.
(2) We support employees with training programs to improve their capabilities and foster self-development.

3) Fair assessment and compensation
(1) The Company conducts fair assessment based on the capabilities and performance of each employee and reflect them systematically to ensure the provision of appropriate compensation.
2) Executives and employees lift barriers between organizational bodies and encourage a climate of cooperation.

5.3 Creating customer value and securing trust
Recognizing that customer trust and success is our future, we respect customer opinions at all times, understand customers, and create value that promotes their development.

1) The realization of customer satisfaction
(1) We listen carefully to the voice of the customers and conduct our duties in a customer-centric fashion.
(2) We readily accept legitimate customer requests and reasonable suggestions.

2) The creation of customer values
(1) We meet customer needs by providing the best products through continuous technological development.
(2) Our employees understand the market trend in Korea and abroad and develop a service mindset that respects the customer’s culture and customs.

3) Securing customer trust
(1) We certainly consider customer safety and health, and don’t provide products or services that threaten them.
(2) We protect each customer’s information and comply with the laws and regulations regarding information protection.
(3) We provide accurate information to customers in a timely manner.

5.4 Duty of good faith to investors
We maximize investor value by making profit on the basis of transparent decision making and efficient management activities.

1) Pursuit of increased shareholder values
(1) We make profit on the basis of transparent decision making and efficient management activities and enhance both corporate value and shareholder value.

2) Fair provision of investor information
(1) We do not provide information that may affect the investment decisions of shareholders to only some shareholders, or offer select information.
(2) We do not directly trade stocks and securities using inside information acquired at work, or solicit trade to others.

3) Calculation and provision of transparent financial information
(1) Financial information must be calculated using an appropriate process or control based on precise trade facts.
(2) Financial reports must be made according to generally recognized accounting standards.
(3) A sufficient amount of correct management information must be provided to help investors to make investment decisions based on free will and responsibility.

5.5 Building mutually beneficial relations with business partners
We must establish a fair business order based on mutual trust and build a corporate ecosystem where we coexist and develop with our stakeholders.

1) Building mutual trust
(1) We must ensure that we do business fairly on an equivalent relationship with partners on the basis of mutual respect.
(2) We protect information acquired from doing business with our partners according to the related laws, regulations, and provisions in contracts.
(3) We support our business partners to observe fair trade laws and regulations.

2) Co-prosperity with our business partners
(1) We share accomplishments with our business partners and seek mutual prosperity.
(2) We support our business partners to provide high-quality products and services though smooth communication and cooperation with them.
(3) We offer equal opportunities and ensure reasonable business requirements for our business partners to develop relationships into companionships.

3) Supporting the continued development of business partners
(1) We offer technical and financial support to our business partners to help them build a stable supply chain.
(2) We expand the scope of our growth partners for the comprehensive prosperity of the entire business ecosystem.

5.6 Contribution to the country and the society
We fulfil our responsibility and duty as a corporate citizen to contribute to national and social development.

1) The role and attitude of a corporate citizen
(1) We strive to achieve mutual development with local communities and respect their respecting local laws, regulations, culture and customs.
(2) We strive to communicate with stakeholders by involving them in our management activities that are related with the local society.
(3) We strive to support our business partners to participate in the activities aimed at the development of the local society.

2) Commitment to the country and the society
(1) The Company fulfils its duty in the local community by creating and maintaining jobs and by faithfully paying taxes.
(2) The Company participates in charities including volunteer activities and disaster relief, and engage in pro bono activities in different areas, such as culture, art, sports, and academia.
(3) The Company assists local residents to improve their quality of life.

5.7 Preservation of the environment and the ecosystem
We build a sustainable management system, strengthen our capabilities to respond to risks and implement sustainable management through open communication.

1) Building a sustainable management system
(1) We operate a sustainable management system efficiently to evaluate the impact and risk of our activities, manage and analyze our sustainable management performance systemically, in order to, ultimately, reach our sustainability goals.
(2) We share accomplishments and issues with various stakeholders and engage in sustainability activities together.
(3) We form a consensus with partners regarding environment protection as a social obligation, and support them to comply with environment laws and regulations.
(4) We assist our business partners to safeguard public health and safety when producing products or services. At the same time, we help them minimize any negative impact on local environments and natural resources.

2) Compliance with environment laws and improvement in environmental impact
(1) We abide by environment laws and try to improve the impact on the environment in all processes, including development, production, and use of products.
(2) We minimize emissions of harmful substances by introducing environmentally friendly process and applying the optimum technology that prevents environmental pollution.

3) Response to climate change
(1) We strive to reduce greenhouse gas emissions by using fewer fossil fuels or raw fossil materials and improving energy efficiency.
(2) We strengthen our competitiveness by developing innovative low-carbon technology.

4) Protection of the environment and the ecosystem
(1) Through the efficient use of natural resources and by-products, we work to restore the natural ecosystem and preserve biodiversity.

5.8 Protection and respect for human rights
We uphold human rights, endorse international human rights standards, and establish human dignity of all stakeholders through enhancement of the quality of life.

1) Respect for international human rights standards
(1) We respect and support the internationally accepted human rights standards, such as the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, the UN Global Compact, and the OECD Guidelines for Multinational Enterprises.
(2) We have established clear human rights policies and systems and strive not to violate human rights in the course of our management activities.
(3) We support our business partners to observe human rights laws as required by international human rights standards. We help them protect the human rights of their employees and treat them fairly.
(4) We respect the International Labour Organization (ILO) conventions and conventions ratified by the Republic of Korea, especially the convention on the prohibition of child labor and forced labor, and the convention on the abolition of forced labor.

2)Obligation to perform due diligence to respect human rights
(1) We may conduct due diligence as needed for management activities that violate human rights or cause complaints.
(2) We seek reasonable solutions if, as a result of due diligence, the Company is considered to have violated human rights during the course of management activities.
(3) We communicate with stakeholders regarding the result of human rights-related activities.

3) Protecting executives and employees
(1) Company executives and employees do not engage in verbal, physical, or visual behavior that is offensive to others, including sexual harassment, which infringes on human rights of an individual.
(2) We respect privacy of our individual employees. We do not slander others nor leak personal data.
(3) We prevent people from working involuntarily due to mental or physical coercion.
(4) We observe the labor law of each country we operate in and international standards for employment standards and the minimum age of employment for minors.
(5) We strictly follow safety rules and take appropriate measures for all risks identified.

4) Respect and equality
(1) We do not discriminate or harass people on the basis of race, nationality, gender, age, academic background, religion, region, disabilities, marriage status, gender identity or any other reasons.
(2) We provide equal employment opportunities to people who meet job qualifications.
(3) We maintain the work environment by respecting various cultural differences.

5) Guarantee of legal and humane employment requirements
(1) We take prompt action on human rights issues raised by our employees through our complaints support system.
(2) We guarantee employment requirements, including appropriate working hours so our employees can live a life of dignity and a life that is worthy of a human being.

6) Efforts to respect human rights in the community
(1) In case a human rights violation in the community is committed in the course of the Company’s management activities, we gather opinions and take measures to resolve the human rights issues.

6. [Supplementary rules] Management and operation of the Code of Ethics
6.1 Compliance with the Code of Ethics
1) We must abide by the Code of Ethics as a standard for our behavior and judgement of values.
2) Right Path Management Group is responsible for general management of the Code of Ethics, while management departments of respective areas take responsibility of detailed operation of the Code of Ethics. (Management departments for different areas: Departments responsible for risk management, reporting, and evaluation in eight different areas when practicing the Code of Ethics.)
3) We can set a separate set of standards for efficient operation of the Code of Ethics.

6.2 Responsibilities of executives and heads of department
1) An executive or a head of a department must provide training or consultation constantly so that their team members can fully understand these standards.
2) An executive or a head of a department must take appropriate precautions to prevent their team members from violating these standards.

6.3 Obligation to report and confidentiality
1) If you find out about a violation of the Code of Ethics, you must report the case to the Right Path Management Group in the fastest and the most convenient way possible.
2) Upon receiving a report that an employee in your team or department has violated the Code of Ethics, you must immediately report the case to the Right Path Management Group.
3) Right Path Management Group may verify the facts as needed about the reported case, and all employees involved must cooperate readily with the verification.
4) Executives and employees must not put the person who reported the case or an informant at a disadvantage or disclose his/her identity.
5) In case there is a risk that the reporter or an informant may become subject to adverse personnel actions, personnel measures may be taken, such as position change at his/her desire.
6) In the case that an executive or an employee finds out about the report, he/she must keep it confidential. He/she may become subject to disciplinary action when revealing it.
7) Standards for reporting of unethical behavior, such as receiving bribes from stakeholders, and rewards for reporting such behavior, will be set separately.
8) Ensure confidentiality, anonymity and protection of informants, except to the extent prohibited by law. There must be a communication process in place for employees to raise concerns without fear of retaliation.

6.4 Rewards and penalties
1) The Company can provide reward or appropriate compensation to executives and employees who have contributed in achieving the goal of the Code of Ethics according to relevant regulations.
2) The Company strictly reprimands executives and employees who have violated the Code of Ethics according to relevant regulations.
3) The Company may restrict access or trade by executives and employees who have retired by violating the Code of Ethics.

6.5 Interpretation
1) If a family member, a relative or a personal acquaintance of an executive or employee has violated the Code of Ethics using his/her name, this is also considered to be an action taken by the executive or the employee.
2) For things that have not been specified in the Code of Ethics or things that cause dispute over its interpretation, consult the Right Path Management Group and follow their interpretation of the case.

6.6 Revisions
1) Right Path Management Group, when necessary, may revise the Code of Ethics. For cases that a senior auditor deems important, the revision must be made after getting an approval from the CEO.

7. Records and management
Records and management
Form number Records and attachments Retention period Department that stores the standards
Report on the implementation of the obligation to report the Ethical Practice Standards Permanent Right Path Management Group

POSCO FUTURE M is engaged in various human rights protection activities to establish a global culture of respecting human rights. The International Labor Organization’s(ILO) conventions and global guidelines serve as our standard for respecting human rights. Primarily, we strive to raise employees’ awareness to respect human rights in all work processes by complying with the Convention on the Prohibition and Elimination of Child Labor and Forced Labor.

In addition, POSCO FUTURE M prohibits discrimination based on personal conditions that are not necessary for the performance of the job when recruiting and provides all employees with equal opportunities in promotions, compensation, and training opportunities without discrimination because of reasons other than individual competence and objective performance.
POSCO FUTURE M operates the Fair Trade Compliance Program to create a transparent and fair trade culture, using it as an internal control standard. This program provides clear guidelines and standards for employees’ actions when performing their duties. It creates an environment where employees can comply with fair trade laws and regulations and prevent financial and non-financial risks.
CEO Message
on Compliance
The government is significantly expanding the monitoring of unfair practices by conglomerates, under the goal of creating a fair economic ecosystem.
Accordingly, the Fair Trade Commission is enhancing its monitoring capacity on extortion of private interests by owner families of conglomerates including favoring subsidiary firms in a contract bidding process, unfair actions on subcontractors and authorized dealers, and wrongful behaviors in internal dealings. FTC is also strongly encouraging companies to follow fair trade laws. Thus, we are making continuous efforts to create a culture of fair and transparent trade. Starting with the introduction of the Compliance Program (CP) in 2006, we have established a fair competition system, under which we introduced guidelines to prevent conflict of interest, adopted a OB registration system and pre audit of private contracts. More recently, we are taking the initiative to build a healthy industrial ecosystem that stresses fair trade, by preparing the basis for shared growth with our partners and suppliers according to our management philosophy of corporate citizenship. Moreover, in order to mitigate risks of violation of laws, we have transferred the fair trade tasks from the Right Path Management Office to the Legal Office. This has brought fair trade education, counseling, complaints and litigation tasks to a single office, and has helped us to comply with fair trade rules more systemically. The reshuffle is anticipated to prevent possible violations in advance and help operate our fair trade compliance programs more effectively.

In addition to the enterprise measures, we are performing self-checks using a check list to help employees make compliance a daily practice. In parallel, we are running a Voluntary Compliance Council for constant sharing of information and discussions. Going forward, POSCO FUTURE M will remain committed to maintaining our reputation as a well-respected and trusted company by establishing a culture of fair competition.
Kim JunHyung
Min Kyungzoon
1. Vision and Strategy
POSCO FUTURE M has established a fair trade operation system of prevention, detection, and response by reflecting CP's eight operational elements to respond to the risk of violating laws and regulations.
2. Operating organization
3. Seven Key Factors of Fair Trade
  • 01
    Management's commitment to voluntary compliance
    · Demonstration of interest and willingness by the CEO and all employees to practice voluntary compliance
    · Official announcement, both internal and external, of strong determination of the Voluntary Compliance Manager
  • 02
    Designation of the Voluntary Compliance Manager
    · Appointment of a Voluntary Compliance Manager with practical responsibility and authority for running the CP
  • 03
    Formulation & distribution of the voluntary compliance manual
    · Preparation of a business-specific manual as an enterprise guidelines for voluntary compliance with fair competition rules
    · Upload and distribution of an e-Manual on internal network accessible by employees anytime
  • 04
    Offers an education program
    · Provide level-specific training considering the different positions and departments
    · Special sessions provided to departments that are highly likely to violate laws
    · Increase effectiveness by inviting guest trainers
  • 05
    Internal supervision system
    · Form a system that prevents and handles unfair acts
    · Periodic reporting of supervision activities to the CEO and the board of directors
  • 06
    HR system and incentives for voluntary compliance
    · Disciplinary measures taken on employees according to the weight of violations
    · Awards provided to departments and individuals with high levels of voluntary compliance
  • 07
    Document management system
    · Systematic document management by designating a person in charge of managing CP documents
4. Status of Development
  • Jul 2001
    The Fair Trade Commission and Korea Chamber of Commerce and Industry enacts the Fair Trade Voluntary Compliance Code.
  • Sept 2006
    The Voluntary Fair Trade Compliance Program is introduced. The CEO announces the willingness to embrace voluntary compliance.
  • Oct 2006
    Appointment of the Voluntary Compliance Manager in the board of directors (Senior auditor Lee Sang-gu).
  • Nov 2006
    The Voluntary Compliance Council (11 members) is established. Operation standards for Voluntary Fair Trade Compliance Program are set.
  • Apr 2007
    Reappointment of the Voluntary Compliance Manager (Senior auditor Kim Soon-gu). The Fair Trade Compliance Manual is distributed (first edition).
  • Apr 2008
    A voluntary compliance pledge is adopted to create a culture of voluntary compliance of fair trade rules (taken annually).
  • Jun 2009
    A revised version of the Fair Trade Compliance Manual is distributed (second edition).
  • Jul 2009
    The operation guidelines for Voluntary Fair Trade Compliance Program are revised.
  • Mar 2010
    Appointment of the Voluntary Compliance Manager in the board of directors (Senior auditor Kang Dae-hee).
  • Oct 2010
    Launching ceremony for the Shared Growth Support Group.
  • Mar 2011
    An Ethical Process forum is newly added to the integrated mailing system of the POSCO Family (also applied on mobile pages).
  • Mar 2012
    Reorganization of the Voluntary Compliance Council (16 members).
  • May 2012
    Operation guidelines for Voluntary Fair Trade Compliance Program are revised. (guided inspections/consultation)
  • Sept 2012
    The revised Voluntary Fair Trade Compliance Manual is distributed (third edition).
  • Dec 2012
    Acquired Grade A in CP ratings.
  • Jan 2013
    Designated by the Fair Trade Commission as a company with outstanding performance in implementing the Shared Growth Agreement.
  • Mar 2013
    Appointment of the Voluntary Compliance Manager in the board of directors (Senior auditor Lee Jong-deok).
  • Jan 2014
    Reported CP performance for 2013 and CP plans for 2014 to the board of directors.
  • Jul 2014
    Distributed a revised version of the Voluntary Fair Trade Compliance Manual (fourth edition).
  • Jan 2015
    Reported CP performance for 2014 and CP plans for 2015 to the board of directors.
  • Jan 2016
    Reported CP performance for 2015 and CP plans for 2016 to the board of directors.
  • Mar 2016
    Appointment of the Voluntary Compliance Manager in the board of directors (Senior auditor Kim Dong-won).
  • Jan 2017
    Reported CP performance for 2016 and CP plans for 2017 to the board of directors.
  • Mar 2017
    Appointment of the Voluntary Compliance Manager in the board of directors (Senior auditor Hwang Seok-yeon).
  • Apr 2017
    Employees pledge to voluntarily comply with the fair trade laws.
  • Jun 2017
    Earned an Excellent rating in the Fair Trade Shared Growth Index.
  • Jan 2018
    Reported CP performance for 2017 and CP plans for 2018 to the board of directors.
  • Mar 2018
    Employees pledge to voluntarily comply with the fair trade laws.
  • Jun 2018
    Earned an Excellent rating in the Fair Trade Shared Growth Index.
  • Oct 2018
    Distributed a revised version of the Voluntary Fair Trade Compliance Manual (fifth edition).
  • Jan 2019
    Reported CP performance for 2018 and CP plans for 2019 to the board of directors.
  • Jun 2019
    Earned an Excellent rating in the Fair Trade Shared Growth Index.
  • Jan 2020
    Employees pledge to voluntarily comply with the fair trade laws.
  • Feb 2020
    Transferred fair trade tasks (Right Path Management Office → Legal Office).
  • Feb 2020
    Appointment of the Voluntary Compliance Manager to the board of directors (Director of the Legal Office Won Hyung-il).
  • Apr 2020
    Reported CP performance for 2019 and CP plans for 2020 to the board of directors.
  • May 2020
    Operation guidelines for Voluntary Fair Trade Compliance Program are revised (increased number of reports to the BOD).
  • Jul 2020
    Renovation of the fair trade section of our website (a show of determination to promote voluntary compliance).
  • Sept 2020
    Acquired an Excellent rating in the Fair Trade Shared Growth Index for four years in a row.
  • Oct 2020
    Voluntary Compliance Council is held (participated by members and action leaders).
  • Jan 2021
    Employees pledge to voluntarily comply with the fair trade laws and the FCPA.
  • Jan 2021
    Reported CP performance for 2020 and CP plans for 2021 to the board of directors which were made public voluntarily.
  • Jan 2021
    Appointment of new Voluntary Compliance Council members and action leaders.
  • Feb 2021
    Held a self-compliance meeting (participated by action leaders).
  • Mar 2021
    Operation guidelines for Voluntary Fair Trade Compliance Program are revised (penalty standards are devised).
Consult Us or
Report on
Should you have any questions or concerns about fair trade, report the case to us and we will promptly reply to your email or the contact information you provide.
  • - You may report or consult with us in respect to our CP operation policy and the ethical policy on the condition of anonymity or by using an alias.
  • - Your report will only be disclosed to the person in charge and yourself. We are obliged to protect informants who have discovered acts of violations by ensuring confidentiality of the information provided and the identity of the informant, as well as liability relief.
  • - Anyone who violates our fair trade policy or individuals responsible for violations may be subject to penalties pursuant to our CP Disciplinary rules and the Code of Ethics.
Climate change is accelerating, bringing us close to irreversible change. The world is calling for companies to take heed, while governments are reinforcing environmental regulations.
POSCO FUTURE M has presented a mid-to-long-term roadmap to create environmental values and is implementing phased activities aimed at preserving the natural environment while spurring economic growth in local communities.
POSCO FUTURE M has established policies and strategies for Environmental management to minimize environmental impacts due to its business activities. To adapt to the rapidly-changing business environment and the demands of stakeholders, we are updating our policies and plans
환경경영 방침
As a global materials company with a sense of responsibility for environmental changes on the earth, POSCO FUTURE M practices environmentally-friendly management across its business operations and decision making processes. Under our Environmental Management vision of becoming a low-carbon green company leading the global market, we have established four strategies and proactively reviewed the environmental issues we face.
환경경영 전략
POSCO FUTURE M has established a company-wide operations organization for systematic green management. The company manages targets and implements action plans for its strategies. Each individual business unit responds to environmental risks, operates emissions prevention equipment and chemical materials, provides environmental training, and performs audits.
환경경영 조직
Beginning with the first certification (ISO 14001) in 2011, POSCO FUTURE M gained the ISO14001 for our cathodes plant and the second anodes plant in 2020, thus acquiring certification for all locations. In the next several years, we plan to advance our management system and supplementing relevant areas to meet our stakeholders' expectations for sustainable governance.
To achieve net-zero in 2050, POSCO FUTURE M selects and manages significant reduction items by comprehensively reviewing possibilities, reduction potential, costs, and impacts. It is expanding low-carbon businesses such as renewable energy and developing technologies to reduce carbon emissions associated with R&D projects.
POSCO FUTURE M has established a roadmap that embodies step-by-step goals and action plans to realize the vision of carbon neutrality by 2050. To achieve 2050 carbon neutrality, we have set phased goal of 26% in 2025, 46% in 2030, 72% in 2040, and 100% in 2050. Moreover, the Energy Material business sector will proactively achieve carbon neutrality by 2035 and we will continue to actively participate in solving the global issue of climate change by replacement of fuels, improvement of production processes, replacement of facilities, adopting new technologies, expanding the use of renewable energy, etc.
2050 탄소중립 로드맵
and Safety
With the highest priority on the safety and health and its employees, POSCO FUTURE M has established a safety and health policy and has been implementing it continuously.
Health and
With its safety management system, POSCO FUTURE M is striving to create a safe working environment and ensure that all employees have a sense of responsibility and awareness of safety and health through safety leadership and education. We carry out thorough risk management activities to prevent safety accidents, and aim to maintain a safe production environment by regularly conducting safety inspections and monitoring activities. We operate medical examinations and health promotion programs for the health management of our employees. We have established our safety and health management system with a focus on the health and safety of employees.
안전관리 전략
We have adopted the latest technology in our workplace aimed at preventing accidents and making a safe workplace to improve our safety management. At the enterprise level, we have devised response strategy and established a management system to spread a culture of safety. In addition, we are offering safety training for our employees and partners to spread safety culture

Risk Prevention Activities The number of risk factors at our production locations is dwindling with our increased focus on on-site inspections, which are intended to achieve zero accidents. We perform safety audit in advance to avoid any potential risks or accidents when expanding our facilities as our business grow. Comprehensive health and safety audits are also conducted to check the compliance status and prevent safety risks.
안전관리 전략
and Safety
Status of certification for the Health and Safety Management System Health and safety affects the entire business. Today, implementing an occupational health and safety (OHS) management system has become a minimum legal requirement in many countries.
Moreover, more and more companies are increasingly asked to provide report on their health and safety performance.
For a more systematic management of corporate health and safety, POSCO FUTURE M have converted OHSAS 18001 we had previously earned to the international standard, ISO 45001 in 2020.
POSCO FUTURE M is committed to establishing a responsible chain of mineral supply as our solution for solving social problems such as human rights violations that occur when mining minerals, environmental destruction, direct or indirect support to non state armed groups, money laundering, bribery and fraudulent misrepresentation of the origin of minerals. Thus, we have laid down a five-step process based on the OECD Due Diligence Guidance.

Responsible minerals are those that are mined such that does not fund armed conflicts, respects human rights and the environment, and fulfills social responsibilities. The international community attaches great importance to corporate responsibility for responsible minerals given the seriousness of conflict zones across the African continent (e.g. armed groups seizing distribution networks, child labor, human rights violations), the home of major responsible minerals. Accordingly, POSCO FUTURE M complies with the OECD Due Diligence Guidance for Responsible Supply Chain of Minerals and the RMI Responsible Minerals Assurance Process.
  • Responsible Minerals Coverage
    Tin, tantalum, tungsten (3T) + gold (G) + cobalt (in the process of expanding our target minerals such as nickel, manganese, lithium and graphite)
  • Target Areas
    285 regions in 28 countries designated as dangerous areas subject to monitoring
아프리카(DR콩고, 브르키나파소 등 17국내 141개 지역), 아프가니스탄 등 3국내 77개지역, 아시아(파키스탄등 4개국내 22개지역), 남아메리카(콜롬비아등 2개국내 31개지역)

[CAHRAs: Conflict Affected and High Risk Areas]

POSCO FUTURE M has selected 285 areas in 28 countries as target areas to watch closely as social and ethical risks are observed frequently, including conflict, child labor, and human rights violations.
Areas subject to monitoring, which were limited to countries around DR Congo in Africa until 2019, has been expanded to other regions in 2020. We have also divided the country into smaller areas for increased focus. These segments are updated biannually through periodic surveys. In the case of a supplier that provides responsible minerals to POSCO FUTURE M having a refinery or a mine linked to these regions, we designate them as a high-risk supplier and respond accordingly following our risk response mechanism.
POSCO FUTURE M's Corporate Planning Support Division and Procurement contract Office of the Energy Materials Division is responsible for supervising responsible minerals. In 2021, the office has launched a Consultative Group for Responsible Minerals together with the Production Technology Group, Ethics Management Secretariat, Corporate Citizenship Secretariat, PR Group, and the Legal Office. Responsible minerals risks are jointly managed with other departments with varying specialties by holding open discussions on the matter.
Procedures for

POSCO FUTURE M complies with the five-step framework in the OECD Due Diligence Guidance.

[Management Framework for the Responsible Minerals]

[Main Management Areas]

  • Policy / Leadership
  • Supplier Identification / Participation
  • Process / Organization
  • Risk identification / Mitigation
  • Stakeholder capability
  • Transparent disclosure

[Management Roadmap for Responsible Minerals]

초기단게(Early stage) - 2020 상반기, 도입단계(Introduction stage) - 2020 하반기, 적극적 참여 단계(Active Participation stage) - 2021, 글로벌 최고수준(Global top stage) - 2022
As a global company, POSCO FUTURE M takes into account the future of mankind and the environment, while staying committed to fulfill its responsibilities. We are establishing a responsible chain of mineral supply as our solution of solving social problems such as human rights violations that occur when mining minerals, direct or indirect support to non state armed groups, money laundering, environmental destruction, bribery and fraudulent misrepresentation of the origin of minerals.

Thus, POSCO FUTURE M is implementing the following process.
  • 1. We developed the Responsible Mineral Sourcing Policy and a work process based on the OECD Due Diligence Guidance, and are focusing on the ethical procurement of responsible minerals and strengthening the management of supply chains. To do this, we are raising the awareness of our employees and our stakeholders and offer training on responsible minerals. When sourcing responsible minerals, we follow a five-step process. (Establish a robust system → Collect/assess supply chain information → Identify/mitigate risks → Due diligence → Transparent communication)
  • 2. We are using the Conflict Minerals Reporting Template (CMRT) and Cobalt Reporting Template (CRT) forms to collect supplier information provided by the RMI Association. Using our Supplier Questionnaire Survey to trace the supply chain for tin, tungsten, tantalum, gold, lithium, manganese, and cobalt (including mines and refineries), we identify and mitigate risks that may occur in the supply process.
  • 3.When we sign a supply contract or registering new suppliers, we encourage suppliers to go through due diligence by third-party organizations under the Responsible Minerals Assessment Program (RMAP) for smelters in the supply chain.

    Also, in order to expand our Responsible Mineral Sourcing Policy to every level of supply chain even in upstream sectors including smelters and mines, we have strengthened the Supplier Code of Conduct.
    ⒜ Suppliers must establish a Responsible Mineral Sourcing Policy and report to POSCO FUTURE M on the improvements to ensure that raw materials delivered to POSCO FUTURE M do not include minerals from uncertified smelters or artisanal and small-scale mining (ASM) in conflict-affected and high-risk areas (CAHRAs) designated by POSCO FUTURE M (285 regions in 28 countries) where ethical issues arise.
    ⒝ Suppliers must identify and collect the mining information, origin, location and whether ethical risk occurs in the supply chain. Suppliers must agree to comply with our Responsible Mineral Sourcing Policy and conduct activities accordingly when signing a contract with POSCO FUTURE M.
    ⒞ Suppliers must prepare and submit a report on the use of conflict minerals and responsible minerals at POSCO FUTURE M's request in a timely manner. They must participate in disseminating our responsible minerals policy to the upstream suppliers so that all of our supply chains can take the lead in resolving social issues.
If POSCO FUTURE M does not receive sufficient information from the supplier to verify compliance with the Responsible Mineral Sourcing Policy, or if risks are found in the supplier’s supply chain and it does not take appropriate action, we will encourage the supplier to improve its capability by means of training or due diligence; POSCO FUTURE M may stop business with the supplier that intentionally provides false information or does not make efforts to correct the situation.

By conducting these activities, POSCO FUTURE M will actively participate in international efforts to source minerals responsibly, thereby fulfilling the social responsibility to protect human rights and the environment in conflict zones.
General Terms
and Conditions
for Raw Material
Article 29 Compliance with conflict mineral and responsible mineral regulations

POSCO FUTURE M intends to coexist harmoniously with suppliers and manage risks related to responsible minerals by including compliance provisions for conflict minerals and responsible minerals when signing a sourcing contract with suppliers.

  • 1. At the time of supplying the goods, the seller confirms that the goods do not contain “conflict minerals” [ i.e. Columbite-tantalite, cassiterite, wolframite, gold and 3TG (tantalum, tin, tungsten, gold), which are derivatives of the mineral ore, produced in the Democratic Republic of Congo and neighboring countries. The US Secretary of State may designate additional minerals as conflict minerals] specified in the Dodd-Frank Wall Street Reform and Consumer Protection Act of the US, and that they use “responsible minerals” (minerals mined such that does not provide funding for conflicts, respects human rights and the environment, and fulfills social responsibility), and provide a confirmation document [know your suppler (KYS), document confirming the use of clean materials] to the buyer.
  • 2. The seller must immediately notify the buyer of the following, if any, for the goods supplied according to paragraph 1.
    1) When the seller recognizes that conflict minerals are included.
    2) When they find any reason to suspect that conflict minerals may have been included.
    3) When they become aware that there is an issue related to responsible minerals.
    4) When they find any reason to suspect that responsible minerals may have been included.
  • 3. Provided the seller violates the requirements set forth in this Article, the buyer may rescind or terminate the contract as stipulated in Article 19, and may place restrictions against the seller according to Article 20. In any case of the seller having affirmed false or inaccurate facts or submitted a false or inaccurate confirmation or certificate of origin under paragraph 1 of this Article, the seller bears the obligation to indemnify the buyer for all loss suffered.
Usage Status for Conflict Minerals and Responsible Minerals
POSCO FUTURE M currently uses tungsten oxide from 3TG, and is sourcing RMAP-conformant smelter products only based on CMRT Ver. 6.22.
We will continue to purchase RMAP-conformant smelter products in the future, and in case an uncertified smelter is identified in our supply chain, we will provide necessary support to help the company obtain certification. For a list of smelters engaged in business with us, refer to the following table.

Usage Status for Conflict Minerals and Responsible Minerals
Usage Status for Conflict Minerals and Responsible Minerals
No. Minerals RMI smelter ID Name of the smelter Country RMAP Status
1 Tungsten CID002321 Jiangxi Gan Bei Tungsten Co., Ltd. China Conformant
2 Tungsten CID002082 Xiamen Tungsten Co., Ltd. China Conformant
3 Cobalt CID003291 Guangdon jiana Engery Technology Co., Ltd. China Conformant
4 Cobalt CID003255 Quzhou Huayou Cobalt New Merial Co., Ltd. China Conformant
5 Cobalt CID003411 Hunan CNGR New Energy Science & Technology Co., Ltd. China Conformant
6 Cobalt CID003338 SungEel Hitech Co.,Ltd. Korea Conformant

Grievance mechanism

- Starting in 2020, POSCO FUTURE M has been running a Grievance mechanism for stakeholders in the responsible minerals sector. You can file a complaint or send us your feedback using the contact information provided below.

- How to file a complaint :
1. Send us an email, call us or pay a visit to our office.
2. The information submitted will be sent to the Responsible Minerals General Department, and the person in charge will check the inquiries and take necessary measures.(There is no separate form)

Complaints Support
Category Office in charge
Minerals General
Procurement contract Office
Email 222886@poscofuturem.com
Tel. +82-02-3457-4483

Quality Certifications
1 2022 POSCO FUTURE M Responsible Minerals Activity Report Download 2023.05.10
2 2021 POSCO CHEMICAL Responsible Minerals Activity Report Download 2022.08.05
3 ISO 45001 Certificate of Approval Download 2021.07.19
POSCO FUTURE M plans, establishes, and operates 17 mutual growth programs in three areas: fair trade, innovative growth, and cultural diffusion. Our strategy for win-win cooperation with suppliers includes ESG education, on-site diagnosis, and financial/welfare/technical support, and our various competency and ESG support programs contribute to building long-term partnerships with our suppliers.
브랜드명칭: 기업시민 동반성장, 목표: 협력기업 경쟁력 향상 및 사회적 가치 창출로 지역사회 상생, 활동방향: open&fair 공정한 거래기회 부여, 공정거래 관행 정립, innovation 안전환경을 고려하는 혁신 성장 지원, Community 상생협력 활동으로 지역 문제해결 동참
Shared growth programs : Open & Fair
With the e-Catalog system, a supplier can promote their product without having to pay a visit to POSCO FUTURE M departments. A department interested in buying a product can conveniently source and supply a new product.

Jump to the e-Catalog page
2-1) Technical data deposit system
A system that protects the technology of partner companies by depositing important technical data into the external foundation, Large and Small Business Cooperation Foundation. Large conglomerates that are supplied with products can ensure stable supply and maintenance service even when the supplier closes business due to bankruptcy.

  • ·Process
    A task
    is performed
    A task
    is complete
    of fees
    is deposited

2-2) Technical data request process
To protect the trade secrets of SMEs, the process has been systemized such that all request for technical data must be made in designated format that contains legal information.

  • ·Technical data request process
    Using our e-Procurement system, a request for technical data is issued. After filling out the form, POSCO FUTURE M and the other party signs and seals the form.
3-1) Improved payment between tier 1 and tier 2 suppliers (payment for mutual benefit)
A system that guarantees cash payment on the settlement day, or early payment at a low interest rate for tier 1 and tier 2 suppliers.

3-2) Payment in full cash for SMEs
The full payment made in cash within 10 business days after the delivery of products, or twice a week for improved liquidity of SMEs.

3-3) Advanced payment or interim payment for purchase of high-priced facility or equipment for future investment
When we purchase a high-priced facility or equipment for future investment that takes a long time to produce, we provide advanced or interim payments for high liquidity of SMEs.

A program designed to avoid competing on price and the deterioration of the competitiveness of our partners. It also serves the purpose of improving POSCO FUTURE M’s quality management.

  • ·Abolished bidding based on price competition, introduced a bidding system that limits the minimum price.
  • ·Biddings based on competition for the best market price is applied for construction deals.
  • ·Most essential facilities purchased based on the total cost of ownership (TCO).
    Suppliers are selected by looking at the purchase price of an asset plus the quality difference, including product lifecycle and efficiency.
  • ·A bidding system based on price that exceeds the standard price.
    In case the minimum bid price is in the +5% range compared to the standard price as a result of the bid, the bid is sold without adjusting the base price.
Standards for the four practices of fair trade have been established to prevent unfair practices and strengthen competitiveness of the parties when a contract is signed between POSCO FUTURE M and an SME.

  • ·Four practices of fair trade
    • - Practices for a desirable contract between a large and a small company
    • - Practices for designation and operation of a partner company
    • - Practices for the operation of an internal deliberation committee on subcontracting
    • - Practices for the desirable issuance and preservation of documents
Shared growth programs : Innovation
Improved the benefit sharing to BS+ by launching a mutual cooperation body and revamping the system.

  • ·Adopted more supplier-friendly measures by revising the type of tasks performed, lowering the threshold and providing more rewards for outstanding performance.
    • - Began participating in Win-Win Nuri, a web portal by the Large and Small Business Cooperation Foundation.
    • - Sending out promotional materials on PR channels, such as social media pages.
    • - In case a partner fails, a minimum of 50% of allocated fund is compensated, and 30% of the intermediate payment is added.
    • - Private contract signed for additional orders on top of the original contract (up to 5 years).
    • - One-time cash compensation for localization tasks.
SMEs can use patents by POSCO FUTURE M by concluding a non-exclusive license agreement. Educational meetings may be held as needed.

  • ·Non-exclusive license grants
    • - Outline : SMEs can use intellectual properties of POSCO FUTURE M free of charge.
    • - Coverage : Patents that can generate profit when sold to other companies excluding patents for important products or production process.
      for demands
      of patent
      license contract
      is signed
  • ·Customized patents
    • - Patent application (registration) training, research on technical patent information, consultation on job creation, and support for cost on joint patent application co-developed with POSCO FUTURE M.
Mutual growth activities where departments within POSCO FUTURE M help partner companies to grow using their capacity, infrastructure and know-how.

  • ·Coverage
    • - Suppliers (including tier 2 suppliers)
  • ·Areas of support
    ESG Human resources, safety, environment, corporate citizenship, corporate ethics
    Legal Tax/accounting, legal knowledge, labor planning
    Technology and products Technology development, production cost management, patent management, product quality management
    Others Investment feasibility analysis, sales strategy, logistics management
A fund created to provide low-interest loans to SMEs that have difficulty in financing. Offers win-win cooperation funds and an interest-free loan program for outstanding partners.

  • ·Low interest loan fund
    • - Lower interest rates compared to other loan by 1-1.5% (up to 300 million won)
  • ·Interest-free loan program for outstanding partner companies
    • - Up to 200 million won
10-1)Training of young refractory lining professionals
Educational programs to train young aspiring refractory lining experts at our vocational centers with professional instructors, and training for people interested in working in the refractory industry.

  • ·Training employees from companies supplying furnace materials and their subcontractors into refractory lining experts
  • ·Educating refractory lining technicians for mutual growth
    • - How we support trainees after completing the course : Connecting graduates to our suppliers related to refractory lining and refractories. Incentives when screening applicants for a position in a open recruitment for POSCO FUTURE M (graduates pass the document screening).

10-2) POSCO SME Consortium* hosted by POSCO
A program designed to strengthen job capacity of our employees and train vital experts leveraging POSCO’s education facilities, manpower and system. The system is run according to the National Human Resources Development System of the Ministry of Employment and Labor.

  • ·Target trainees
    • - Suppliers of the POSCO Group and employees from their subcontractors (tier 2 to tier 4 suppliers)
  • ·Areas of training
    • - Personality, leadership, work, product quality, safety at work (Offered in classrooms and via an e-learning program)
  • ·View and apply for a program Learn more
We spur growth in our productivity by revamping the governance, manufacturing and production process of SMEs through our QSS innovation initiative. We also provide consultations for building smart factories, including evaluation on the level of smart technologies and identification of new tasks.

  • ·1st stage in the industrial innovation campaign
    • - Eleven conglomerates including POSCO and Samsung are taking part led by the Ministry of Trade.
  • ·2nd stage in the industrial innovation campaign
    • - Campaign led by the private sector, including KCCI and Large and Small Business Cooperation Foundation.

Main Areas of Support Under POSCO’s QSS Innovation Initiative
Consulting Weekly on-site guide by a QSS consultant
Building the basis of innovation
Overhaul of work locations
Process optimization
Education Level-specific training in classroom and learning trips to develop innovative minds. Other support to spur self development.
Educational tours for the management to benchmark good practices
Management-level workshops
Management-level workshops
Working-level employee training for competency development I
Working-level employee training for competency development II
Working-level employee training for competency development III
Shared growth programs : Community
POSCO FUTURE M is expanding information sharing and communication activities with partner companies through diverse communication programs. We are also encouraging a culture of mutual development in our tier 1 and tier 2 suppliers.

  • ·Periodic exchange aimed at mutual development (e.g. information sharing meetings, publication of newsletters)
  • ·Encouragement of mutually beneficial activities for suppliers through the POSCO FUTURE M Supplier Council
We designate suppliers that earn the best rating in the annual SRM evaluation or who have made significant contributions to POSCO FUTURE M as our certified partners, instilling pride and offering incentives.

  • ·Incentives provided to PHPs
    • - PHP certification plaques.
    • - Cancellation of deposits (contract implementation, defects, advance and interim payments).
    • - Extension of contract period, and priority given when an existing contract is terminated.
    • - Selected as a priority supplier in case of emergencies or contingencies.
    • - Priority given to BS tasks proposed by employees. Support for shared growth activities.
    • - More convenient vehicle access.
POSCO FUTURE M has set up a system that helps to resolve unfair trade practices, such as delayed payment, unfair reduction of payment and interference with company management. The system is expected to help stabilize the management of SMEs and put in place fair trade practices.

  • ·Fair Trade Consulting Center Go
  • ·Unethical Behavior Report Center Go
  • ·Whistleblower Center Go
  • ·Open Sourcing Consulting Center Go
A campaign to invigorate local economy and enhance awareness of safety and environment, participated by suppliers and partner companies.

  • ·Main activities
    Corporate Citizen Friends activities
    • - Good advance payment activity to revive traditional markets.
    • - Participation in the Corporate Citizen Friends Week 2020.
    • - Participation in the Corporate Citizen Friends Forest Planting Project.
Employing talents from small partner companies of the POSCO Group. Support for young people to find jobs.

  • ·Job search program for mutual benefit of both large and small companies.
  • ·Internship program for small partner companies provided to graduates of the vocational program tailored to real-world jobs.
  • ·Training program for refractory lining experts for the mutual development of large and small companies.
To companies falling into 11 categories in four fields (social enterprises, companies hiring disabled persons, social cooperatives, self supporting companies, family-friendliness-certified companies, women's enterprises, companies with green certification or safety and health management systems, etc.), we provide preferential treatment such as incentives during bidding, relaxation of supplier registration requirements, and additional points in evaluations.
Supplier Code
of Conduct
POSCO FUTURE M's suppliers must comply with the Supplier Code of Conduct in standard contracts. The Supplier Code of Conduct stipulates the essential matters that suppliers providing products and services must comply with and requires all suppliers to protect stakeholders and employees by complying with all laws and regulations on the environment, human rights, social contributions, ethics and fair trade, safety and health, and quality management.
Purchase of
Green Products
ESG purchase methods have been implemented according to the Corporate Citizenship management philosophy. The basic principle is to procure from suppliers with green operation processes. POSCO FUTURE M is leading sustainable purchases in the market.
POSCO FUTURE M has established and implemented a quality management policy to provide our customers with the best products and services. We emphasize the importance of quality management in product manufacturing and sales, with a focus on customer satisfaction, and aim to improve quality and secure safety throughout the process. We are making efforts to establish a company-wide quality management system and enhance customer trust by strengthening individual quality management systems, continuously pursuing quality improvement activities, and cooperating and communicating with customers.
품질로서 고객가치 창조에 기여하는 회사(하나를 개선하더라도 Be Concrete & Robust) - 기술의 정합성 검증, 보유 기술의 표준화·가시화를 통해 기술 역량을 강화한다, 선행적 PDCA(Plan-Do-Check-Action) 프로세스 및 품질보증 시스템을 강화해 확고한 기본 품질을 확보한다, 전사 공장별 운영목표 설정과 통합관리를 통해 품질 경쟁력을 향상한다.
ISO 9001(QMS) 운영원칙 - 조직상황(고객요구사항, 이해관계자의 니즈와 기대), 리더쉽(지원운영,성과평가,개선,기획), 제품 및 서비스, 고객만족

포스코퓨처엠 운영체계 - 핵심품질지표 발굴 및 운영(Plan), 데이터 측정 및 분석(Do), 문제점 발굴 및 개선(Check), 표준화(Act)
QMS Operation status at POSCO FUTURE M

포스코퓨처엠의 QMS 운영 현황 - 2011(ISO 9001:2008 품질경영시스템 도입), 2016(IATF16949: 양극재,음극재 도입), 2018(ISO 9001:2015 품질경영시스템 전환),

POSCO FUTURE M has introduced and complied with ISO9001 and IATF16949, the international standard quality management systems. Our refractories, furnace materials, quicklime, and chemical plants are certified with ISO9001. Our anode materials plant and cathode materials plants are accredited with IATF16949, the international standard for quality management systems in the automotive industry.
ESG Management
POSCO Charter of Corporate Citizenship
ESG Policy (Entire Version)
Environmental Policy
Biodiversity Policy
No Deforestation Policy
Occupational Safety and Health Policy
Human Rights Management Policy
Diversity, Equity, and Inclusion Policy
POSCO Group Supplier Code of Conduct
Green Procurement Policy
Responsible Minerals Activity Report
Stakeholder Engagement Policy
Corporate Governance Charter
Board Independence and Diversity Policy
Tax Management Policy
Information Security and Privacy Policy
Anti-Corruption Compliance Guidelines
Code of Ethics
ESG 정책 및 인증서
Name of Certification Original Approval Date Certification Period Location (Product) Certification
Occupational Health and Safety Management System ISO 45001 '12.10.17 '21.10.17~'24.10.16 Pohang Head quater 1. ISO45001(KOR) KOR 1. ISO45001(ENG) ENG
'12.07.02 '21.07.02~'24.07.01 Pohang Plant
'12.10.17 '21.10.17~'24.10.16 Gwangyang Plant
'19.05.15 '22.05.15~'25.05.14 Gumi Plant for the cathode material
'20.07.02 '20.07.02~'23.07.07 Gwangyang Plant for the cathode material
'15.06.08 '21.10.17~'24.10.16 Sejong Plant for the anode material
Envionmental Management System ISO 14001 '11.12.13 '20.12.13~'23.12.12 Pohang Plant #2 1. ISO14001(KOR) KOR 2. ISO14001(ENG) ENG
Pohang Plant #1
Gwangyang Plant
Pohang Plant #3
Sejong Plant for the cathode material #1
Gwangyang Plant for the anode material
Sejong Plant for the cathode material #2
Gumi Plant for the anode material
Envrionmental Product Declaration '21.09.15 '21.11.30~'24.11.29 Anodes(Natural graphite) 3. EPD_Anode(Natural graphite) (KOR) KOR 3. EPD_Anode(Natural graphite) (ENG) ENG
’22.09.30 '22.09.30~'25.09.29 Cathode Material(PN6) 3. EPD_Cathode PN6(KOR) KOR 3. EPD_Cathode PN6(ENG) ENG
’22.09.30 '22.09.30~'25.09.29 Cathode Material(PN8) 3. EPD_Cathode PN8(KOR) KOR 3. EPD_Cathode PN8(ENG) ENG
Quality Management System ISO 9001 '11.12.17 '20.12.17~'23.12.16 Pohang Plant #1 4. ISO9001(KOR) KOR 4. ISO9001(ENG) ENG
Gwangyang Plant
Pohang Plant #2
Pohang Plant #3
ISO 16949 '15.12.02 '21.09.05~'24.09.04 Gumi Plant for the anode material 5. IATF16949_Gumi Cathode Material Plant (KOR) KOR
'20.11.25 '20.11.25~'23.11.24 Gwangyang Plant for the anode material 5. IATF16949_Gwangyang Cathode Material Plant (KOR) KOR
'20.08.19 '20.08.19~’23.08.18 Sejong Plant for the cathode material #1 5. IATF16949_Anode Material Plant (KOR) KOR 5. IATF16949_Anode Material Plant (ENG) ENG
Sejong Plant for the cathode material #2
Information Security Management System ISO 27001 ‘22.11.20 ‘22.11.20~’25.10.31 POSCO FUTURE M 6. ISO27001(ENG) ENG
Family Friendly Best Family Friendly Management '16.12.01 '21.12.01~'24.11.30 POSCO FUTURE M 7. 가족친화인증(KOR) KOR
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  • CEO : Kim Jun-Hyung
  • Business Registration No. : 506-81-01452
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