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POSCO Chemical publishes Responsible Minerals Report, the first in the Korean battery materials industry
2021.11.17
- POSCO Chemical reveals its accomplishment from building a sustainable supply chain and bolstering its material competitiveness in advance
POSCO Chemical became the first battery materials company in Korea to publish a Responsible Minerals Report and revealed the results from reinforcing the company’s control on its supply chain.
On November 16, 2021, POSCO Chemical issued a Responsible Minerals Report that lays out the company’s supply chain policies, process, and the purchase status of responsible minerals from the environmental, social, and governance (ESG) perspective. In the report, POSCO Chemical said that it has established a sustainable supply chain on par with global standards and has enhanced the overall competitiveness in resources. This makes POSCO Chemical the very first battery materials manufacturer in the country to publish a Responsible Minerals Report.
POSCO Chemical produces 100% of its cathodes and anodes, materials that are used in batteries, using responsible minerals. As to conflict minerals that pose a risk in the mining process, such as cobalt and tungsten, POSCO Chemical is supplied solely with materials from mines and resource companies that are officially certified by the Responsible Minerals Initiative (RMI), a global organization that supports responsible mineral sourcing, to ensure that there are no issues regarding any violation of human rights, pollution, or financing armed groups.
POSCO Chemical also expanded the scope of minerals subject to the control to include lithium, nickel, manganese, and graphite. This is to secure soundness of its supply chain in advance for essential battery materials that have shown a substantial increase in demand in recent years.
The company has set up a consultative group for responsible minerals for effective implementation of its responsible minerals policies and to evaluate and manage possible risk factors. It is also preparing various purchase policies and programs to that end.
A new supplier to POSCO Chemical must receive an audit from a third party organization according to the Responsible Minerals Assurance Program (RMAP), a flagship program of RMI. If the supplier provides resources from any of the 211 risk areas from among the 25 countries as designated by POSCO Chemical, it must set up a control policy to prevent ethical problems and submit it to POSCO Chemical. When a risk arises, it must submit a report on how it will address the situation.
For improved transparency of the supply chain, POSCO Chemical is in the process of introducing a system that uses blockchain technology, which prevents data forgery and records important data throughout the process, starting from the mining of resources until the product reaches the end users. Once the system is established, POSCO Chemical will be able to effectively control risks across the supply chain from the mining stage right through to the manufacturing stage of finished cars.
Yoon Young-joo, Director of Energy Materials Strategy at POSCO Chemical, said, “Building a stable and sustainable supply chain determines corporate competitiveness at times like this with rising demand for battery materials. We will leap ahead to become a world leader of secondary battery materials by creating a transparent supply chain with careful consideration for the protection of the environment and human rights.”
To read the Responsible Minerals Report, visit POSCO Chemical website and click the ESG menu.
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