POSCO INTERNATIONAL becoming the 1st Korean business to make NDPE commitments...taking a proactive step towards improving sustainability accountability in management2020.03.01
POSCO INTERNATIONAL becoming
the 1st Korean business to make NDPE commitments
...taking a proactive step towards
improving sustainability accountability in management
- Fully describing its NDPE policy in the areas of environment, human rights, and communication on the corporate website
- Proactively declaring the global-level NDPE policy to live up to its 'Global Corporate Citizenship' philosophy
- Continuously working to promote win-win partnership with local communities since the early days of its palm oil business in Indonesia
On March 1st, 2020, POSCO INTERNATIONAL (CEO: Joo Si-Bo) became the 1st Korean business to unveil a palm oil sustainability policy also commonly known as No Deforestation, No Peat, No Exploitation (NDPE), building on its proactive commitment to 'strengthening sustainability and social responsibility' as a corporate citizen. The company established a subsidiary in Papua in eastern Indonesia back in 2011 and its annual palm oil production reached approximately 80,000 tons as of last year.
Such NDPE commitments have already been adopted by global large-size palm oil distributors as a highly stringent environmental and social management initiative, and palm oil producers are following suit in recent years. As a Globally Integrated Corporation, POSCO INTERNATIONAL acted promptly in publicizing its NDPE policy as a way to keep pace with this global trend, closely communicate with local communities, and conduct business in a sustainable manner, creating a virtuous cycle of economic and social values reinforcing one another.
POSCO INTERNATIONAL's NDPE policy consists of 1)Environmental Conservation and Management, 2)Protection of, and Respect for, Human Rights, and 3)Stakeholder Engagement & Communication, and applies to the suppliers of fresh fruit bunches (FFBs), crude palm oil (CPO), and refined palm oil as well as its own palm oil business operations.
In the aspect of environmental conservation and management, this newly-published NDPE policy is taking a step further from other similar environmental policies: it promises to develop and implement a forest conservation program on a scale that corresponds to the size of developed plantations while prohibiting any new plantation development of High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas, and peatlands (which contain the deposit of organic materials that are the precursor of coal).
Furthermore, the company aims to continue with its endeavors to reduce GHG emissions and other pollutants.
Turning to the protection of and respect for human rights, the policy stipulates that POSCO INTERNATIONAL will protect the rights of local communities and workers as its top priority in accordance with applicable international standards, place a strong focus on protecting the rights of indigenous groups, and reinforce win-win programs to assist local communities in promoting their economic independence and creating decent jobs.
As a move to ensure stakeholder communication, the policy declares that POSCO INTERNATIONAL will engage independent verification organizations as well as direct stakeholders in the decision making process to further enhance transparency. The company plans to reinforce existing grievance-handling mechanisms and stakeholder communication channels, and fully participate in resolving issues and conflicts raised by local communities.
POSCO INTERNATIONAL's NDPE policy- its full version and 2020 Implementation Plan - will be made readily available on its corporate website, and annual progress reports will be published as a way to communicate with stakeholders in Korea and abroad.
This palm oil sustainability policy is yet another prime example that demonstrates POSCO INTERNATONAL's sustained dedication to pursuing shared growth with local communities. Since the very beginning of its Indonesian palm oil business in 2011, the company has constantly worked to elevate the quality of life for local people in a range of areas while fulfilling its social responsibility as a respected 'Global Corporate Citizen.'
POSCO INTERNATIONAL's Indonesian subsidiary PT.BIA created jobs for nearly 3,500 residents in Papua where people barely stand a chance of finding employment while establishing and operating kindergartens and elementary schools to provide learning opportunities to local children who face significant challenges in receiving proper education, which will surely lay the ground to improve their literacy and help them become a responsible member of society.
Furthermore, three medical clinics opened within the establishment to provide free-of-charge health care to more than 25,000 locals annually. Since 2017, the company has worked together with Korean health care professionals in the fields of family medicine, gynecology, pediatrics, and orthopedics in a bid to offer bi-annual free health care services to nearly 2,000 people in this region to cater to their specific medical needs.
These multi-faceted endeavors have earned POSCO INTERNATIONAL the Grand Prize in the '2019 ESG Top Performer' evaluation made by the Korea Corporate Governance Service (KCGS), and the company was featured as a best practice in the report titled 'ESG and Corporate Long-term Growth' published by KCGS on February 20th, 2020.
"POSCO INTERNATIONAL stays ahead of the competition in announcing the NDPE policy to become a committed partner in resolving global environmental and social issues and to make its Indonesian palm oil business a globally-renowned best practice in promoting win-win business partnership", an official at POSCO INTERNATIONAL said, further adding, "As a Global Corporate Citizen, we will faithfully fulfill our social responsibility and obligation in those countries where we operate and do our utmost in creating a sustainable ecosystem."