POSCO International Obtains RSPO, Eco-Friendly International Certification for Indonesian Palm Business

"Expanding Business Through Eco-Friendly and Socially Responsible Management Based on Community Coexistence"

POSCO International recently obtained the RSPO (Roundtable on Sustainable Palm Oil) certification, an eco-friendly international certification related to palm oil business, for its palm plantation subsidiary PT.BIA (photo) located in Papua Province, East Indonesia.

Photo by POSCO International

[Asia Economy Reporter Ki-min Lee] Posco International announced on the 5th that it has recently obtained the RSPO (Roundtable on Sustainable Palm Oil) certification, an eco-friendly international certification related to palm oil business, at PT.BIA, a palm plantation corporation located in Papua Province, East Indonesia.

The RSPO certification is an eco-friendly international certification that strictly adheres to principles and standards such as environmental protection, management transparency, sustainability, responsible farm management, and community obligations throughout all stages of the palm industry including production, distribution, and processing.

The RSPO, the issuing organization of the certification, is a non-profit organization composed of international NGOs such as the World Wide Fund for Nature (WWF) and various stakeholders in the palm oil industry, with the purpose of promoting a sustainable palm industry that protects the environment while producing palm oil to secure a stable supply.

Since joining as an RSPO member in 2018, Posco International has been carrying out sustainable environmental and social protection activities. In March last year, it declared the NDPE (No Deforestation, No Peat, No Exploitation) policy for its palm business, the first among domestic companies, focusing more on eco-friendly management.

As a result of long-term sustainable management efforts, Posco International, having obtained the certification, will implement the environmentally conservation plan finally approved by RSPO for the next 25 years. The plan will be divided into a ‘conservation program’ including forest and ecosystem preservation and support for local community self-reliance, and a ‘management program’ including water quality management and flood prevention through planting.

With the RSPO certification recognizing the sustainability of its business, Posco International has established a stable foundation for business expansion along with diversifying palm oil sales channels to various markets including developed countries.

Through its palm plantation business, Posco International produced 95,000 tons of palm oil in the first half of the year, a 23% increase compared to the previous year, achieving an operating profit of approximately 43.4 billion KRW.

Gong Byung-seon, head of Posco International’s PT.BIA corporation, said, "The RSPO certification means that Posco International’s palm plantation business has been internationally recognized," adding, "We will operate an ethical and transparent sustainability program that meets international standards to maintain the RSPO certification, coexist with local communities, and strive to expand and grow the business based on this."