POSCO FUTURE M

- Responding to advanced market demands by updating the carbon neutrality roadmap and disclosing Life Cycle Assessment (LCA) results

- Reporting the results of the double materiality assessment that identifies vital ESG issues to the board of directors

- President Yoo Byeong-og: "We will strengthen ESG responsible management centered on the board of directors"

POSCO Future M has published its Sustainability Report, transparently disclosing its ESG management strategies and achievements to stakeholders.

Celebrating the 10th anniversary of its Sustainability Report this year, POSCO Future M has highlighted major sustainability activities and achievements for 2023 in this report, identifying greenhouse gas reduction management, sustainable supply chain management, and the spread of a safety and health culture as crucial issues. These issues will be integrated into future sustainability management strategies and KPIs and reflected in management activities.

In the environmental (E) sector, the company disclosed its updated carbon neutrality roadmap and measures to preserve biodiversity.

To achieve carbon neutrality, POSCO Future M has established a dedicated organization, formulated a mid-to-long-term roadmap, and updated goals and action plans by considering Korea and international laws and regulations related to climate change, market and technology development trends, customer requirements, industry implementation status, and the company's business strategy linkage. The company also disclosed its responses to the demands and regulations of advanced environmental markets. In line with the EU's battery-related legislation, POSCO Future M transparently disclosed its Life Cycle Assessment (LCA) results, proactively addressing requirements for reducing product environmental impact.

Additionally, the company revealed various environmental impact reduction activities, such as establishing biodiversity policies, deforestation prevention policies, sulfur oxide reduction facilities, kiln fuel conversion, and automatic water quality measurement devices at final discharge outlets. In 2022, POSCO Future M became the first Korean battery material company to join the Taskforce on Nature-related Financial Disclosures (TNFD), reinforcing its commitment to biodiversity conservation.

In the social responsibility (S) sector, POSCO Future M has prioritized safety and health management by setting the life and safety of all stakeholders, including employees, as its core value. The company supports establishing safety management systems for suppliers in collaboration with external professional evaluation agencies, resulting in a 52% reduction in the Lost Time Injury Frequency Rate (LTIFR) for suppliers in 2023 compared to 2021.

* Lost Time Injury Frequency Rate (LTIFR): Number of injuries per 1 million hours worked

Regarding governance (G), POSCO Future M has elevated ESG responsible management by reporting the double materiality assessment results, which analyze environmental/social and financial impacts to identify key ESG issues, to the board of directors. Since 2023, the company has also established and disclosed an ESG policy book on its website. It was updated in May this year to enhance stakeholder awareness of various ESG activities and their impacts, including environment, ethics, human rights, and supply chain management.

President Yoo Byeong-og stated, "We have actively pursued carbon neutrality activities that reflect market demands and the management environment, transparently disclosing the achievements in this report," and emphasized, "We will further strengthen ESG responsible management centered on the board of directors and top management."