Posco

InfluenceMap Score
D
Performance Band
54%
Organisation Score
31%
Relationship Score
Modifications to InfluenceMap Scoring
Sector:
Materials
Head​quarters:
Pohang, South Korea

Climate Lobbying Overview: POSCO appears to be engaging with climate regulation in South Korea with mixed engagement. POSCO offers top-line support for climate action and South Korea’s 2050 net zero target, but appears to take a more mixed stance on specific policy areas related to the Korean Emissions Trading System (K-ETS) and the introduction of a carbon tax in South Korea.

Top-line Messaging on Climate Policy: POSCO stated its support for the Paris Agreement in its 2020 Climate Action Report, and acknowledged the role of the steel industry in delivering on the goals of the treaty. In this report, POSCO also communicated broad support for global action to shift to a low-carbon economy, although it did not specify a preferred timeline for emissions reductions in line with IPCC guidance. However, in its 2020 Annual Report, POSCO appeared to support the goal of limiting temperature rise to within 1.5℃. In its Climate Action Report 2020, POSCO also appears to accept that government regulation in the form of ‘policy support’ will be needed for an effective shift to low-carbon steelmaking. In December 2020, POSCO released a statement supporting the South Korean government’s revised 2050 net zero target and Green New Deal.

Engagement with Climate-Related Regulations: POSCO’s climate policy engagement appears to mostly focus on carbon tax and emissions trading. In its 2020 CDP response, POSCO stated that it opposes the introduction of a carbon tax in South Korea, citing the double regulatory burden of a tax on carbon in addition to the emissions trading scheme. In this response, POSCO also calls for further free allocations and subsidies for its sector, citing the importance of recognizing ‘the vulnerability of the trade-exposed sector to international competition such as steel’. POSCO does not appear to disclose its position on, or engagement with, climate-related policy on its corporate website.

Positioning on Energy Transition: Evidence from POSCO’s 2020 Climate Action Report suggests that the company supports the increased role of green hydrogen in the energy mix, and expressed hope that the South Korean government’s Green New Deal policies would foster the growth of a green hydrogen ecosystem. However, POSCO’s stance on other aspects of the energy transition appears to be more mixed. In December 2020 POSCO CEO Choi Jeong-woo announced that the company would expand its investment in LNG as part of its support of a ‘low carbon society’, without clear conditions related to CCS or mitigating methane emissions.

Industry Association Governance: POSCO discloses a list of its memberships to industry associations in its 2020 Corporate Citizenship Report. In its CDP 2020 response, POSCO also disclosed membership to three industry associations - the Korea Iron and Steel Association, the World Steel Association, and the Korea Enterprises Association. However, all disclosures lack detail on the groups’ climate policy positions and alignment with POSCO’s own positions. These disclosures does not include the company’s membership of several influential organizations globally. The President of POSCO, Kim Hak-dong, is a Vice Chair on the Korea Business Council for Sustainable Development. However, POSCO is also a member of the American Petroleum Institute which negatively lobbies on climate policy in the US, and a member of the Korea Gas Union, which has taken negative climate stances in South Korea.

QUERIES
DATA SOURCES
Main Web Site Social Media CDP Responses Legislative Consultations Media Reports CEO Messaging Financial Disclosures
Communication of Climate Science
2 NS NS NS NS NS NS
Alignment with IPCC on Climate Action
0 2 NA NS 0 NS 1
Supporting the Need for Regulations
1 NS NS NS NS NS 0
Support of UN Climate Process
1 NS NS NS NS NS NS
Transparency on Legislation
-2 NA -1 NA NA NA NS
Carbon Tax
0 NS -2 NS -1 NS NS
Emissions Trading
0 NS -1 NS -1 -1 0
Energy and Resource Efficiency
NS NS NS NS NS NS 1
Renewable Energy
0 NS NS 1 1 NS NS
Energy Transition & Zero Carbon Technologies
1 NS NS NS 1 0 NS
GHG Emission Regulation
0 NS NS NS NS NS NS
Disclosure on Relationships
-1 NS -1 NA NA NA NS
Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
28%
 
28%
 
59%
 
59%
 
23%
 
23%
 
42%
 
42%
 
26%
 
26%
 
36%
 
36%

How to Read our Relationship Score Map

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.