2007Spring MIS Group10SM → Presentation Group 10 Group Spring MIS Term-project 2 Challenges of POSCO To the Sustainability Management J.M Park J.Y Heo K.W Kim K.E Kim

2007Spring MIS Group10SM Contents 1. POSCO’s Milestone - Introduction & Brief History 2. Sustainability Management? - Introduction & Brief History 2. Sustainability Management? 3. Case study of POSCO - Activities (Social/Eco-Friendly) - Activities (Social/Eco-Friendly) - Result - Result 4. Conclusion Roadmap

2007Spring MIS Group10SM Milestone Brief History of POSCO The 4th largest steel producer in the world The world 1st commercialized FINEX process ▶▷ Apr Pohang Iron And Steel Co., Ltd Established ▶▷ Jun Construction of Pohang Works Phase 1 Complete ▶▷ Mar Construction of Gwangyang Works Phase 1 Begins ▶▷ Oct Privatization Complete Symbol of Korean Development

2007Spring MIS Group10SM Milestone Operating Performance (1/2) Bedrock of Korea's industrial development especially for the strong Korean automobile(4 th ) and shipbuilding industry(1 st rank in world)

2007Spring MIS Group10SM Milestone Operating Performance (2/2) 6 TH RANK 2 TH RANK *KOSPI *KOSPI Represents Korean Stock Exchange Market with Samsung electronics

2007Spring MIS Group10SM Concept of SM Sustainability Management? Balancing economic, environmental and social aspects! Sustainability Management Economic Performance Social Performance Environment Performance Environmental process Environmental products Eco-efficiency Total sales Operating efficiency Capital accessibility Shareholder’s value Ethics, values and principles Responsibility, transparency Workplace/human rights Community impact

2007Spring MIS Group10SM Case of POSCO Social Contribution POSCO educational foundation POSCO TJ Park foundation Establishment of POSTECH Mecenat activities Education and Culture Support for long-desired projects of communities support for local sports and cultural events Sisterhood ties Cooperation with Communities Employee Participation Partnering with citizens’ groups Increasing participation of subsidiaries, affiliates and partners Volunteer Services

2007Spring MIS Group10SM Case of POSCO POSEPI (POSCO Environment Performance Index) Operational Performance (60) Management Performance (30) Environmental Performance (10) POSEPI (100 at the base year) ++=

2007Spring MIS Group10SM Case of POSCO Sustainability Report Publishing Environment Report First in Korea First English Edition Make Homepage Applying GRI Guideline Sustainability Report Only Environment Triple Bottomlines

2007Spring MIS Group10SM Case of POSCO FINEX Uses cheap and abundant ore fines( 분철광 ) Eliminates sintering and coke-making operation reduces 92% sulfur oxide and 96% nitrogen oxide

2007Spring MIS Group10SM Case of POSCO 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 6 th of the 150 Best companies in Asia

2007Spring MIS Group10SM Conclusion

2007Spring MIS Group10SM Any Questions? Thank You! Finally, We beat the MIS!