POSCO will continue to give careful thought
to what we are up against as a global business.

With resolve to face the shifts head-on,
we will boldly move forward to build a sustainable future.

First, our efforts to address climate change are guided by a practical and concrete decarbonization strategy.

The transition to a decarbonized industrial future is one of the defining mandates of our time. Moving beyond declaration, the mission to decarbonize has now entered the implementation stage. Major steelmakers around the world are pursuing realistic and practical multi-option strategies to achieve decarbonization, and POSCO is no exception. In April, we broke ground on the 300Ktpa demonstration plant to validate HyREX―our proprietary hydrogen-based ironmaking technology, developed through years of in-house R&D. Additionally, the construction of our large-scale 2.5 Mtpa capacity electric arc furnace was completed in June. At the same time, we are committed to advancing bridge technologies that can reduce carbon emissions from existing facilities during the transition period. This report provides detailed information on technologies such as molten scrap charging, Oxygen Top & Bottom Blown Converter, hydrogen-enriched gas injection, increased utilization of Hot Briquetted Iron, and Carbon Capture, Utilization and Storage. Through ceaseless efforts, we are committed to building a flexible and effective system to respond to evolving customer demand for carbon-reduced steel. POSCO will also resiliently address the need for decarbonized steelmaking infrastructure, i.e., clean hydrogen and carbon-free electricity.

Second, POSCO is cultivating a culture of safety that focuses on its fundamental value and action-driven practice.

Safety stands as the highest priority and central value in POSCO’s pursuit of sustainable management. We are committed to making POSCO safe and free of serious accidents, with a fundamental focus on respect for human life and an embedded, self-directed safety culture that drives action to safeguard against incidents. Prevention of serious accidents is the cornerstone of our safety management. To this end, we are working closely with external experts to reassess our safety processes, identify safety deficiencies, and drive focused improvements from the ground up. In 2025, the Facility Reinforcement Task Force Team was launched to fundamentally eliminate equipment-related risks that could lead to accidents. Additionally, fast-track processes were utilized to address urgent issues with speed. This year, we also established the Serious Accident Prevention Task Force to enhance activities to prevent the recurrence of similar accidents. To ensure the safety of our partner company workers entering our worksites, we revamped the Group Safety Academy in 2025 to expand cooperation and safety education. Furthermore, a mobile application developed that allow workers to exercise the right to stop work on-site. These efforts enable us to align the safety expectations and standards with our partner companies in real time and immediately respond to potential risks. In addition, we are actively implementing safety solutions that utilize smart technologies, e.g., automation and unmanned operations. The report introduces innovative cases, such as the Smart Wire Ball, autonomous facility inspection robots, and forklift safety braking systems.

Third, we will conduct human rights impact assessments and supply chain ESG due diligence systematically and thoroughly.

Companies must responsibly manage human rights and environmental risks through due diligence―this societal expectation is increasingly being written into law, as seen from the Modern Slavery Act in the UK and the EU Corporate Sustainability Due Diligence Directive. Against this backdrop, we have actively participated in the group-wide initiative to establish a Human Rights Management Declaration, due diligence methodologies, and grievance mechanisms. Additionally, in 2025, POSCO conducted human rights impact assessments on domestic worksites. This year, we plan to expand these assessments progressively to our overseas operations. To promotes meaningful enhancement of ESG management capabilities, POSCO advanced its ESG due diligence system for suppliers of raw materials, materials, and equipment and provides customized follow-up programs. Furthermore, we continue to strengthen supply chain transparency and ESG responsiveness across the business group through the annual Group Supply Chain Management Council and publication of the Responsible Minerals Report.