2007Spring MIS

Group10SMSM

→ → PresentationPresentation Group 10Group 10

2007Spring

MISTerm-project 2

Challenges of POSCOChallenges of POSCOTo theTo the

Sustainability ManagementSustainability Management

20021063 J.M Park20021063 J.M Park 20021214 J.Y Heo20021214 J.Y Heo20031141 K.W Kim20031141 K.W Kim 20031300 K.E Kim20031300 K.E Kim

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Contents

1. POSCO’s Milestone1. POSCO’s Milestone

- Introduction & Brief History- Introduction & Brief History

2. Sustainability Management?2. Sustainability Management?

3. Case study of POSCO3. Case study of POSCO

- Activities (Social/Eco-Friendly)- Activities (Social/Eco-Friendly)

- Result- Result

4. Conclusion4. Conclusion

Road

map

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Brief History of POSCO

The 4th largest steel producer in the worldThe 4th largest steel producer in the world

The world 1stThe world 1st commercialized commercialized FINEXFINEX process process

▶▷▶▷ Apr. 1968Apr. 1968Pohang Iron And Steel Co., Ltd Pohang Iron And Steel Co., Ltd EstablishedEstablished

▶▷▶▷ Jun. 1973Jun. 1973Construction of Pohang Works Construction of Pohang Works Phase 1 CompletePhase 1 Complete

▶▷▶▷ Mar. 1985Mar. 1985Construction of Gwangyang Construction of Gwangyang Works Phase 1 BeginsWorks Phase 1 Begins

▶▷▶▷ Oct. 2000Oct. 2000Privatization CompletePrivatization Complete

Symbol of Korean DevelopmentSymbol of Korean Development

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Operating Performance (1/2)

Bedrock of Korea's industrial development Bedrock of Korea's industrial development especially for the strong Korean especially for the strong Korean automobile(4automobile(4thth)) and shipbuilding industry(1and shipbuilding industry(1st st rank in world)rank in world)

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Operating Performance (2/2)

66THTH RANK RANK 22THTH RANK RANK 22THTH RANK RANK

*KOSPI Closing @2006*KOSPI Closing @2006

Represents Korean Stock Exchange Market with Represents Korean Stock Exchange Market with Samsung electronicsSamsung electronics

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Sustainability Management?

Balancing economic,Balancing economic, environmental and social environmental and social

aspects!aspects!

SustainabilitSustainabilityy

ManagementManagementEconomic Economic

PerformancePerformance

Social Social PerformancePerformance

EnvironmentEnvironmentPerformancePerformance

Environmental process

Environmental products

Eco-efficiency

Total salesOperating efficiency

Capital accessibility

Shareholder’s value

Ethics, values and principles

Responsibility, transparency

Workplace/human rights

Community impact

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Social Contribution

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POSEPI (POSCO Environment Performance Index)

OperationalOperationalPerformancePerformance

(60)(60)

ManagementManagementPerformancePerformance

(30)(30)

EnvironmentalEnvironmentalPerformancePerformance

(10)(10)

POSEPIPOSEPI(100 at the base year)(100 at the base year) ++ ++==

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Sustainability Report

1994

1997

2001

2003

2005

Publishing Environment Report

First in Korea

First English Edition

Make Homepage

Applying GRI Guideline

Sustainability Report

Only Environment

Triple Bottomlines

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FINEX

• Uses cheap and abundant ore fines(분철광 )

• Eliminates sintering and coke-making operation

• reduces92% sulfur oxide and 96% nitrogen oxide

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Result of efforts

• awarded Grand Prize as The Most Respected(in Korea) Company in 2005

• registered in DJSI(Dow Jones sustainability index) (only 2 companies in Korea)

• ranked as one of Asia’s 50 Best Sustainable Company

• ranked 6th of the 150 Best companies in Asia

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Conclusion

2007Spring MIS

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Any Any Questions?Questions?

Th

an

k Y

ou

!

Finally,Finally,We beat the MIS!We beat the MIS!