Climate Policy Engagement Analysis
Climate Policy Engagement Overview: POSCO Holdings and its subsidiaries appear to be strategically engaging with climate regulations, with a mixture of positive and negative positions in South Korea. POSCO states top-line support for carbon neutrality and the need for climate regulations, yet appears to take a more negative stance on specific policies, including the Korea Emissions Trading Scheme (K-ETS). On the energy transition, POSCO takes mixed positions, supporting renewable energy and nuclear, but also advocating for a role for fossil gas.
Top-line Messaging on Climate Policy: POSCO expresses top-line support for carbon neutrality and the need for climate regulations, although in some instances it is unclear whether this support is in line with IPCC-recommended reduction pathways. In its 2025 FSS report, the company supported South Korea's 2050 Carbon Neutrality target in line with the IPCC’s 1.5°C target. In a June 2025 YNA news article, POSCO Holdings Chairman Chang In-hwa supported emissions reductions, but was unclear whether he supported emissions reductions in line with IPCC recommendations. In addition, according to December 2024 National Assembly Policy Data, Yoon-Gih Ahn, Director of POSCO Research Institute (POSRI), suggested the need to rationalize regulations and policies but without further details, so it was unclear if the company supports the need for climate change regulation. According to the same National Assembly Policy Data, Director Yoon-Gih Ahn appeared to not support UN Climate Treaty and its proposed timeframe.
Engagement with Climate-Related Regulations: POSCO is actively engaged with the Korea Emissions Trading Scheme (K-ETS), and occasionally engaged with the EU Carbon Border Adjustment Mechanism (EU CBAM) and South Korea’s Nationally Determined Contributions (NDC) greenhouse gas (GHG) emissions reduction target. In a June 2025 POSCO Newsroom article, POSRI did not support reform of the K-ETS, appearing to oppose a reduced number of free allowances for the steel industry. According to an August 2024 Steel & Metal News article, POSRI appeared to suggest banking of surplus allowances, contrary to the ambition to increase the carbon price and effectiveness of the K-ETS.
In a July 2025 POSCO Newsroom article, POSRI appeared to support a weaker 2035 target for South Korea’s NDC, appearing to emphasize the need for a “rational and feasible” NDC to accommodate long-term industrial decarbonization. In a March 2024 POSCO Newsroom article, POSCO appeared to not support the EU CBAM for the steel sector, calling for support from the Korean government to respond against EU CBAM becoming a system that “discriminates against imported steel products.”
Positioning on Energy Transition: POSCO takes mixed positions on the energy transition, supporting carbon-free energy including nuclear and renewable energy, but also advocating for fossil gas. According to July 2025 National Assembly Policy Data, POSCO Holdings supported an expanded role for ‘clean’ hydrogen and carbon-free power, particularly nuclear power and hydrogen produced from nuclear power, but it was unclear whether it supported a full transition in line with IPCC recommendations. In an article in the March 2024 Monthly Iron and Steel Paper published by the Korea Iron and Steel Association (KOSA), POSRI supported the need for policies to develop renewable energy and green hydrogen to decarbonize the steel industry. However, in a December 2024 POSCO Newsroom article, POSRI advocated for switching from coal to fossil gas, without placing clear conditions on the need for CCS or methane emission abatement.
POSCO also takes mixed positions on the decarbonization of the steel industry, generally advocating for government support but whilst appearing to support some continued use of blast furnaces. In a June 2025 POSCO Newsroom article, POSRI supported policies to increase development of breakthrough technologies to decarbonize the steel industry, such as a Special Act to Foster the Steel Industry. In a July 2025 POSCO Newsroom article, POSRI supported the need for policies to increase technologies such as hydrogen reduction steelmaking for steel decarbonization. Also, according to July 2025 National Assembly Policy Data, POSCO Holdings broadly supported an increase in green and zero-emissions hydrogen for direct reduced iron (DRI) steelmaking to decarbonize the steel industry. However, in its 2023 Sustainability report published in June 2024, POSCO appeared not to support a full transition away from blast furnaces, stating that they “must be maintained for many years” and thereby supporting the development of bridge technology to reduce carbon emissions from facilities.
Industry Association Governance: POSCO has disclosed a list of its industry association memberships in its 2024 Sustainability report published in June 2025, but it excluded its membership to Korea International Trade Association (KITA), Korea New and Renewable Energy Association (KNREA), and Korea Photovoltaic Industry Association (KOPIA). POSCO does not appear to have disclosed an account of its industry associations' positions and engagement activities. The Chairman of POSCO, Chang In-hwa, is the Chairman of the Korea Iron and Steel Association (KOSA), which has engaged negatively with climate policies, including South Korea’s NDC, the K-ETS, and the EU CBAM. POSCO has not published a review of its industry association memberships and climate policy engagement.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically.
This summary was last updated in Q3 2025.