POSCO E&C Develops Korea's First Construction Industry-Specific ESG Evaluation Model

[Asia Economy Reporter Moon Jiwon] POSCO Engineering & Construction has developed the first ESG (Environmental, Social, and Governance) evaluation model specialized for the construction industry in Korea.

POSCO Engineering & Construction announced on the 12th that, together with the corporate credit rating agency eCredible, it has developed a construction industry-specific ESG evaluation model consisting of 50 evaluation items since February, tailored to the unique characteristics of construction companies.

The company initiated the development of this evaluation model to support the ESG management capabilities of POSCO Engineering & Construction’s partners and to establish voluntary and proactive ESG management.

The evaluation items are composed of 10 environmental items such as eco-friendly material procurement, greenhouse gas emissions, and violations of environmental regulations; 30 social items including occurrence of major accidents, safety systems, and compliance with labor conditions; and 10 governance items such as governance structure, default on debt, and accounting transparency.

POSCO Engineering & Construction plans to conduct pilot evaluations targeting excellent partners by the end of August and expand the evaluation to approximately 700 construction-related partners by next year based on their feedback.

Additionally, the company intends to fully cover the costs of ESG management capability evaluations, actively practicing the management philosophy of corporate citizenship that grows together, and providing an opportunity for partners to naturally implement ESG management without financial burden.

Recently, POSCO Engineering & Construction introduced the ESG evaluation model through a non-face-to-face meeting with 48 excellent partners.

A POSCO Engineering & Construction official stated, "The construction-specialized partner ESG evaluation model is not simply to evaluate partners but focuses on strengthening the ESG management capabilities and safety management capabilities of partners as members of corporate citizenship," adding, "We will do our best to ensure that ESG management is established throughout the construction industry."