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POSCO FUTURE M will become a sustainable company that shoulders
responsibilities for the society and the people.
responsibilities for the society and the people.
Responsible Minerals
Outline
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 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.
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Responsible Minerals CoverageTin, tantalum, tungsten (3T) + gold (G) + cobalt (in the process of expanding our target minerals such as nickel, manganese, lithium and graphite)
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Target Areas285 regions in 28 countries designated as dangerous areas subject to monitoring
[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.
Responsible
Minerals
Department
Minerals
Department
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, Sustainable Bureau, 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.
Standard
Operating
Procedures for
Responsible
Minerals
Operating
Procedures for
Responsible
Minerals
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]
Responsible
Mineral
Sourcing
Policy
Mineral
Sourcing
Policy
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.
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.
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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.
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
Sourcing
Contract
and Conditions
for Raw Material
Sourcing
Contract
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.
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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.
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
| 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)
| Category | Office in charge |
|---|---|
| Responsible Minerals General Department |
Procurement contract Office |
| kimdo@poscofuturem.com | |
| Tel. | +82-02-3457-4493 |
Responsible Minerals Report
| 1 | 2024 Responsible Minerals Report | Download | 2024.05.07 |
| 2 | 2023 Responsible Minerals Report | Download | 2023.05.10 |