POSCO FUTURE M

- ESG rating has improved annually since 2022, culminating in an A+ (Outstanding)

- Expands use of renewable energy and introduces high-efficiency facilities in line with 2050 carbon neutrality roadmap

- Strengthens supply chain safety management and enhances board-level ESG accountability

POSCO Future M has secured an A+ (Outstanding) rating in the 2024 ESG assessment conducted by the Korea Institute of Corporate Governance and Sustainability (KCGS), marking an improvement from the previous year.

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KCGS, a leading ESG evaluation agency in Korea, assesses the sustainability performance of publicly listed companies each year, evaluating their environmental, social, and governance (ESG) practices before assigning an overall rating.

In 2023, POSCO Future M improved its rating to A, and this year, the company achieved a further upgrade, securing an integrated A+ rating.

By category, the company received an A+ rating in the environmental (E) category, up one notch from the previous year. The social (S) and governance (G) categories maintained their ratings at A+ and A, respectively.

To enhance its environmental management, POSCO Future M is expanding the use of renewable energy and adopting high-efficiency facilities as part of its 2050 carbon neutrality roadmap. In April of this year, the company also obtained an 'ISO 14067' carbon footprint verification from the Korea Foundation for Quality, certifying that international standards measure the carbon emissions of its cathode and anode products.

On the social front, POSCO Future M is working to establish a sustainable raw material supply chain based on its Responsible Minerals Policy, which preemptively addresses issues such as human rights violations, environmental destruction, and funding to conflict groups. The company prioritizes the safety and well-being of its employees and stakeholders and reinforces its health and safety management system. Notably, by supporting the development of a safety management system for its suppliers, the Lost Time Injury Frequency Rate (LTIFR) among suppliers decreased by 52% in 2022 compared to 2021.

* LTIFR: Number of accidents per 1 million hours worked

To improve governance, POSCO Future M has established a sound internal control system by ensuring the independent operation of its audit functions. Additionally, the company reports and seeks approval for key ESG management issues from its highest decision-making body, the Board of Directors, further advancing its commitment to responsible management.

Looking ahead, POSCO Future M plans to strengthen its compliance-based management activities and actively promote the internalization of an ESG mindset among employees, thereby enhancing its sustainability.